Note 15. Employee Benefit Plans

Employees’ Stock Ownership Plan

The First Busey Corporation Employees’ Stock Ownership Plan (‘ESOP’) is available to all full-time employees who meet certain age and length of service requirements. The ESOP trust fund is able to purchase common shares of the Company using the proceeds of bank borrowings which are generally secured by the common shares. As of December 31, 2012, the ESOP trust had no outstanding bank borrowings or debt. Allocations of contributions and forfeitures are based on the eligible compensation of each participant. Dividends on allocated shares of common stock are distributed directly to the participants. All shares held by the ESOP, which were acquired prior to the issuance of FASB ASC Topic 718-40, “Employee Stock Ownership Plans” (ASC 718-40), are included in the computation of average common shares and common share equivalents. This accounting treatment is grandfathered under ASC 718-40 for shares purchased prior to December 31, 1992.

As the ESOP made payments of principal on borrowings an appropriate percentage of stock was allocated to eligible employees’ accounts in accordance with applicable regulations under the Internal Revenue Code. Compensation expense for shares released was equal to the fair market value of the shares when released. During 2012, 2011 and 2010, $0.1 million of compensation expense was recognized each year for the ESOP, releasing 20,000 shares to participant accounts in each year. Compensation expense related to the ESOP is included in the chart below under “Employee Benefits.” Compensation expense related to the ESOP, including related interest expense was $0.1 million for each of the years ended December 31, 2012, 2011 and 2010.

All shares held in the ESOP which were acquired prior to December 31, 1992 were allocated as of December 31, 2006. The number of shares and associated fair values were 594,504 worth $2.8 million and 642,128 worth $3.2 million at December 31, 2012 and 2011, respectively.

Shares held in the ESOP which were acquired after December 31, 1992 and their fair values were as follows:

	2012			2011
		Fair			Fair
	Shares	Value		Shares	Value
	(dollars in thousands)
Allocated shares	212,146	$	986	210,876	$	1,054
Unallocated shares	—	—		20,000	100

Total	212,146	$	986	230,876	$	1,154

Profit Sharing Plan

All full-time employees who meet certain age and service requirements are eligible to participate in the Company’s profit-sharing plan. The contributions, if any, are determined solely by the boards of directors of the Company and its subsidiaries, and in no case may the annual contributions be greater than the amounts deductible for federal income tax purposes for that year.

The rights of the participants vest ratably over a five-year period, except for the 401(k) match portion, which vests immediately. Expenses related to the employee benefit plans are included in the statements of income as follows:

	Years Ended December 31,
	2012		2011		2010
	(dollars in thousands)

Employee benefits	$	3,024	$	2,985	$	2,859
Interest on employee stock ownership plan debt	5		11		18

Total employer contributions	$	3,029	$	2,996	$	2,877

The Company sponsors deferred compensation plans for executive officers for deferral of compensation. The deferred compensation expense reported was $0.2 million, $0.2 million and $0.3 million for the years ended December 31, 2012, 2011 and 2010, respectively. The deferred compensation liability was $4.5 million at December 31, 2012 and $4.3 million at December 31, 2011 and 2010.