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PORTFOLIO LOANS
 3 Months Ended
Mar. 31, 2026
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)March 31,
2026		December 31,
2025
Commercial loans
C&I and other commercial$4,124,737 $4,229,208 
CRE5,566,044 5,550,018 
Real estate construction1,052,505 1,039,289 
Total commercial loans10,743,286 10,818,515 
Retail loans
Retail real estate2,119,621 2,154,616 
Retail other596,983 594,668 
Total retail loans2,716,604 2,749,284 
Total portfolio loans13,459,890 13,567,799 
ACL(169,054)(174,023)
Portfolio loans, net$13,290,836 $13,393,776 
Net deferred loan origination costs included in the balances above were $5.7 million as of March 31, 2026, compared to $7.0 million as of December 31, 2025. Net accretable purchase accounting adjustments included in the balances above reduced loans by $81.0 million as of March 31, 2026, and $86.6 million as of December 31, 2025. Deposit account overdrafts reported as loans totaled $6.1 million as of March 31, 2026, and $7.1 million as of December 31, 2025.
Busey did not execute any significant loan purchases or sales during the three months ended March 31, 2026. Other than loans assumed through acquisition activities, Busey did not execute any significant loan purchases or sales during the three months ended March 31, 2025.
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)March 31,
2026		December 31,
2025
Pledged loans
FHLB$7,199,169 $5,051,512 
Federal Reserve Bank1,923,484 1,854,423 
Total pledged loans$9,122,653 $6,905,935 
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.
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 Three Months Ended March 31, 2026
Risk Grade RatingsTerm Loans Amortized Cost Basis by Origination YearRevolving
Loans		Total
(dollars in thousands)20262025202420232022Prior
C&I and other commercial
Pass$176,684 $703,182 $444,948 $281,266 $190,104 $247,451 $1,356,182 $3,399,817 
Watch5,980 37,677 79,414 54,522 30,451 48,220 164,690 420,954 
Special Mention6,657 18,453 12,256 19,335 21,324 6,427 61,112 145,564 
Substandard14,231 4,942 4,800 45,663 20,228 9,753 27,108 126,725 
Substandard non-accrual3 4,384 3,318 1,183 4,362 5,442 12,985 31,677 
Total C&I and other commercial203,555 768,638 544,736 401,969 266,469 317,293 1,622,077 4,124,737 
Gross charge-offs$50 $104 $— $257 $6,180 $743 $171 $7,505 
CRE
Pass374,592 970,541 445,815 660,590 934,154 1,183,257 45,082 4,614,031 
Watch100,410 131,248 55,151 126,753 139,092 193,822 2,794 749,270 
Special Mention19,919 54,289 5,388 27,987 16,485 44,198 731 168,997 
Substandard1,234 2,122 421 3,243 3,860 12,184 215 23,279 
Substandard non-accrual— 519 253 5,366 483 3,846 — 10,467 
Total CRE496,155 1,158,719 507,028 823,939 1,094,074 1,437,307 48,822 5,566,044 
Gross charge-offs— — — — — — — — 
Real estate construction
Pass102,064 373,586 251,234 69,954 69,315 7,516 74,606 948,275 
Watch13,896 2,153 — 1,978 42,561 160 6,198 66,946 
Special Mention— 18,945 — — — 6,434 — 25,379 
Substandard— 10,876 — — — 756 — 11,632 
Substandard non-accrual— — 273 — — — — 273 
Total real estate construction115,960 405,560 251,507 71,932 111,876 14,866 80,804 1,052,505 
Gross charge-offs— — — — — — — — 
Retail real estate
Pass45,952 138,678 120,634 252,430 436,101 836,870 246,306 2,076,971 
Watch86 2,590 530 24,972 1,464 512 545 30,699 
Special Mention— 47 72 — 1,432 1,661 207 3,419 
Substandard— — — 4,108 135 1,100 — 5,343 
Substandard non-accrual— 357 308 127 579 1,058 760 3,189 
Total retail real estate46,038 141,672 121,544 281,637 439,711 841,201 247,818 2,119,621 
Gross charge-offs70 — — — — — 81 151 
Retail other
Pass750 4,850 1,889 29,179 26,892 5,245 527,985 596,790 
Substandard non-accrual— — — 76 116 — 1 193 
Total retail other750 4,850 1,889 29,255 27,008 5,245 527,986 596,983 
Gross charge-offs172 — — 10 — — 2 184 
Total portfolio loans$862,458 $2,479,439 $1,426,704 $1,608,732 $1,939,138 $2,615,912 $2,527,507 $13,459,890 
Total gross charge-offs$292 $104 $— $267 $6,180 $743 $254 $7,840 
As of and For The Year Ended December 31, 2025
Risk Grade RatingsTerm Loans Amortized Cost Basis by Origination YearRevolving
Loans		Total
(dollars in thousands)20252024202320222021Prior
C&I and other commercial
Pass$833,539 $486,278 $342,560 $207,053 $178,429 $122,904 $1,396,826 $3,567,589 
Watch21,750 79,853 56,387 38,786 48,624 16,778 112,935 375,113 
Special Mention21,712 11,609 56,578 26,343 5,339 800 54,433 176,814 
Substandard8,336 605 20,444 14,603 9,868 3,655 17,883 75,394 
Substandard non-accrual1,489 3,899 600 10,265 948 4,560 12,537 34,298 
Total C&I and other commercial886,826 582,244 476,569 297,050 243,208 148,697 1,594,614 4,229,208 
Gross charge-offs$4,667 $3,332 $4,347 $1,450 $13,591 $11,456 $5,716 $44,559 
 
CRE
Pass1,077,169 483,950 710,448 1,035,426 740,680 515,631 43,830 4,607,134 
Watch210,673 61,926 119,986 143,072 161,387 69,789 2,572 769,405 
Special Mention49,648 22,642 2,991 13,811 32,109 18,858 908 140,967 
Substandard2,416 679 3,857 4,873 7,316 5,324 215 24,680 
Substandard non-accrual72 — 4,547 — — 3,213 — 7,832 
Total CRE1,339,978 569,197 841,829 1,197,182 941,492 612,815 47,525 5,550,018 
Gross charge-offs1,297 11,057 — — 253 — — 12,607 
 
Real estate construction
Pass395,019 268,117 107,930 89,673 5,356 2,733 74,237 943,065 
Watch18,571 2,112 3,999 22,561 167 — 7,221 54,631 
Special Mention17,961 — — — 6,573 — — 24,534 
Substandard16,020 — — — 766 — — 16,786 
Substandard non-accrual— 273 — — — — — 273 
Total real estate construction447,571 270,502 111,929 112,234 12,862 2,733 81,458 1,039,289 
Gross charge-offs— — — — — — — — 
 
Retail real estate
Pass93,212 127,475 269,877 446,309 407,851 508,504 252,987 2,106,215 
Watch2,686 569 24,601 1,492 267 482 577 30,674 
Special Mention47 78 4,028 1,454 1,686 — 214 7,507 
Substandard— — 108 440 484 631 136 1,799 
Substandard non-accrual154 308 128 523 264 2,841 4,203 8,421 
Total retail real estate96,099 128,430 298,742 450,218 410,552 512,458 258,117 2,154,616 
Gross charge-offs1,164 — — — — 51 36 1,251 
 
Retail other
Pass5,233 2,265 33,349 30,321 4,561 885 517,680 594,294 
Substandard non-accrual— — 76 134 — — 164 374 
Total retail other5,233 2,265 33,425 30,455 4,561 885 517,844 594,668 
Gross charge-offs546 147 270 47 — 74 141 1,225 
 
Total portfolio loans$2,775,707 $1,552,638 $1,762,494 $2,087,139 $1,612,675 $1,277,588 $2,499,558 $13,567,799 
Total gross charge-offs$7,674 $14,536 $4,617 $1,497 $13,844 $11,581 $5,893 $59,642 
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 March 31, 2026
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$2,828 $412 $518 $31,677 $7,451 
CRE2,195 — — 10,467 3,726 
Real estate construction348 — — 273 158 
Past due and non-accrual commercial loans5,371 412 518 42,417 11,335 
Retail loans
Retail real estate3,093 4,269 — 3,189 349 
Retail other4,290 30 294 193 — 
Past due and non-accrual retail loans7,383 4,299 294 3,382 349 
Total past due and non-accrual loans$12,754 $4,711 $812 $45,799 $11,684 
As of December 31, 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$3,577 $593 $2,128 $34,298 $4,612 
CRE484 2,514 — 7,832 1,588 
Real estate construction— — — 273 158 
Past due and non-accrual commercial loans4,061 3,107 2,128 42,403 6,358 
Retail loans
Retail real estate2,457 4,280 136 8,421 349 
Retail other2,491 79 24 374 — 
Past due and non-accrual retail loans4,948 4,359 160 8,795 349 
Total past due and non-accrual loans$9,009 $7,466 $2,288 $51,198 $6,707 
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 $1.1 million for the three months ended March 31, 2026, and was $0.2 million for the three months ended March 31, 2025. The amount of interest collected on those loans and recognized on a cash basis that was included in interest income was $0.6 million for the three months ended March 31, 2026, and was immaterial for the three months ended March 31, 2025.
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 March 31, 2026
(dollars in thousands)
Payment Deferral
Term Extension
% of Total Class of Financing Receivable
Modified Loans
C&I and other commercial
$2,215 $34,349 0.9 %
Total loans modified during the period1
$2,215 $34,349 0.3 %
___________________________________________
1.Modifications were primarily for loans classified as substandard.
Three Months Ended March 31, 2025
(dollars in thousands)
Payment Deferral
Term Extension
% of Total Class of Financing Receivable
Modified Loans
C&I and other commercial
$10,832 $21,923 0.7 %
CRE
— 4,719 0.1 %
Real estate construction
— 5,208 0.5 %
Total loans modified during the period1
$10,832 $31,850 0.3 %
___________________________________________
1.All modifications were for loans classified as substandard.
The following table provides, as applicable for loan modifications made during the periods indicated for borrowers experiencing financial difficulty, the weighted average interest rate reductions and weighted average term extensions:
Three Months Ended March 31,
20262025
Weighted Average Term ExtensionWeighted Average Term Extension
C&I and other commercial10 months1.9 years
CRE—6 months
Real estate construction—1.3 years
Aggregate effect10 months1.6 years
Payment deferrals for borrowers experiencing financial difficulty can include deferrals of 3 or more payments to the end of the loan, accommodations to restructure the payment terms of the loan, or accommodations to allow for an interest-only period on the loan.
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 March 31, 2026
(dollars in thousands)Current30-89 Days90+ DaysNon-accrual
Modified Loans
C&I and other commercial$42,179 $— $— $4,476 
CRE1,833 — — 273 
Real estate construction10,876 — — — 
Loans modified during the last twelve months$54,888 $— $— $4,749 
Busey had commitments of $15.1 million as of March 31, 2026, and $13.5 million as of December 31, 2025, to lend additional funds to debtors experiencing financial difficulty for whom Busey modified a loan within the past twelve months.
A default occurs when a loan is 90 days or more past due or transferred to non-accrual status. The following table presents loans that defaulted after having been modified during the twelve months before the default.
Three Months Ended March 31, 2026
(dollars in thousands)Term Extension
Loans with Subsequent Defaults
CRE$273 
Modified loans with subsequent defaults$273 
No loans had a default during the three months ended March 31, 2025, after having been modified during the twelve 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. Collateral dependent loans are secured by (1) business assets, for C&I and other commercial loans; (2) real estate, for CRE and retail real estate loans; and (3) vehicles and other personal assets, for retail other loans. Loans are written down to the lower of cost or fair value of the underlying collateral, less estimated costs to sell. Busey had $41.8 million and $47.8 million of collateral dependent loans as of March 31, 2026, and December 31, 2025, respectively.
OREO and Other Repossessed Assets
Busey held $0.1 million of commercial OREO, an immaterial amount of residential OREO, and $3.2 million of other repossessed assets, as of March 31, 2026. Busey’s recorded investment in residential real estate loans that were in the process of foreclosure was $1.2 million as of March 31, 2026. 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: (1) specific allocations/individual reserves; (2) quantitative reserves; and (3) 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 March 31, 2026
(dollars in thousands)C&I and Other CommercialCREReal Estate
Construction		Retail
Real Estate		Retail OtherTotal
ACL balance, December 31, 2025$61,370 $70,328 $11,568 $29,178 $1,579 $174,023 
Provision for loan losses3,556 (234)1,019 (1,944)(4)2,393 
Charged-off(7,505)— — (151)(184)(7,840)
Recoveries383 6 1 57 31 478 
ACL balance, March 31, 2026$57,804 $70,100 $12,588 $27,140 $1,422 $169,054 
Three Months Ended March 31, 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
623 (393)311 (503)(19)19 
Charged-off3
(31,221)(253)— — (361)(31,835)
Recoveries
96 131 10 133 36 406 
ACL balance, March 31, 2025$89,304 $68,478 $8,689 $26,399 $2,340 $195,210 
___________________________________________
1.The Day 1 PCD was attributable to the CrossFirst acquisition (see “Note 2. Business Combinations”), and represents the initial adjustment to the fair value of the PCD loans.
2.The Day 2 provision for loan losses was attributable to the CrossFirst acquisition (see “Note 2. Business Combinations”), and represents the initial provision for non-PCD loans.
3.Charged-off amounts included $29.6 million for PCD loans assumed in the CrossFirst acquisition, which were fully reserved at acquisition and did not require recording additional provision expense.