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FIRST BUSEY CORP /NV/

BUSEP
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Business Summary

First Busey Corporation (BUSE) is an $18.10 billion financial holding company, organized in Nevada in 1980 and headquartered in Leawood, Kansas . The company operates in the banking industry, providing banking services, asset management, brokerage, and fiduciary services through Busey Bank, and payment technology solutions through FirsTech . Busey's common stock is traded on The Nasdaq Global Select Market under the symbol "BUSE" and its Series B preferred stock under "BUSEP" . Busey Bank competes actively with national and state banks, savings and loan associations, and credit unions for deposits and loans, and also with asset management and trust companies, security broker/dealers, personal loan companies, insurance companies, finance companies, leasing companies, mortgage companies, payment technology solution companies, financial technology companies, digital asset providers, and certain governmental agencies . As of June 30, 2025, Busey Bank ranked fourth in total deposits among 349 financial institutions headquartered in Illinois .

Busey's core business model revolves around generating revenue primarily from interest and fees on loans and investments, wealth management fees, service fees, and payment technology solutions revenue . Its principal expenses include interest paid on deposits and borrowings, and general operating expenses . The company emphasizes relationship banking, which includes an active deposit banking relationship in addition to lending . Busey's strategy focuses on maintaining a strong core deposit franchise, which represented 93.7% of total deposits as of December 31, 2025 .

Busey operates three reportable segments: Banking, Wealth Management, and FirsTech . The Banking segment, through Busey Bank, offers diversified financial products and services for consumers and businesses, including commercial, commercial real estate (CRE), real estate construction, and agricultural loans, as well as commercial depository services like cash management. Retail banking services include residential real estate, home equity lines of credit, consumer loans, demand and savings deposits, money transfers, safe deposit services, and individual retirement accounts . The Wealth Management segment provides asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations . As of December 31, 2025, this segment had $15.66 billion of assets under care . FirsTech, a wholly-owned subsidiary of Busey Bank, delivers technology-enabled payment processing solutions to business clients across the United States, facilitating consumer payments through various electronic and in-person methods . Its offerings include mobile text-based bill payment, interactive voice response systems, electronic payment concentration and routing, walk-in payment processing, customer service payment processing, direct debit services, merchant services referral solutions, and lockbox remittance processing . FirsTech serves clients in regulated sectors such as financial services, utilities, insurance, and telecommunications .

For the fiscal year ended December 31, 2025, Busey reported total interest income of $893.860 million and total interest expense of $324.251 million , resulting in net interest income of $569.609 million . The provision for credit losses was $52.743 million . Total noninterest income was $149.975 million , and total noninterest expense was $480.201 million . Income before income taxes was $186.640 million , with income taxes of $51.378 million , leading to a net income of $135.262 million . After preferred dividends of $9.876 million , net income available to common stockholders was $125.386 million . Diluted earnings per common share were $1.47 . As of December 31, 2025, total assets were $18.104.736 billion , total deposits were $14.905.958 billion , and total stockholders' equity was $2.468.982 billion . The allowance for credit losses (ACL) was $174.023 million .

Comparing 2025 to 2024, net interest income increased by $248.281 million , or 76.6% . Total noninterest income increased by $10.293 million , or 7.4% . Total noninterest expense increased by $178.707 million , or 59.3% . Net income increased from $113.691 million in 2024 to $135.262 million in 2025. The effective income tax rate increased from 25.8% in 2024 to 27.5% in 2025. Total assets grew by 50.3% to $18.104.736 billion , and total deposits increased by 49.3% to $14.905.958 billion . Portfolio loans, net of ACL, increased by 75.9% to $13.393.776 billion . The ACL increased by 108.7% to $174.023 million . Non-performing loans increased by 130.2% to $53.486 million .

During the reported period, Busey completed its acquisition of CrossFirst Bankshares, Inc. on March 1, 2025 , which was subsequently merged into Busey Bank on June 20, 2025 . This acquisition contributed to the expansion of Busey's presence across 10 states and added 17 banking centers . The company also opened its second Denver service center on August 18, 2025 . In 2025, Busey revised its presentation for all periods to reclassify the provision for unfunded commitments within the provision for credit losses, affecting measures and ratios derived from total noninterest expense . The company also revised its calculation of adjusted net income to include adjustments for net securities gains and losses, realized net gains and losses on the sale of mortgage servicing rights, and non-recurring deferred tax adjustments .

Business Outlook

Management's specific revenue, margin, or EPS guidance for the upcoming period is not explicitly provided in the filing. However, the company's forward-looking statements indicate expectations for future financial performance, financial condition, credit quality, and management's long-term performance goals .

A major growth vector for Busey is its strategy of acquisitions and strategic combinations, which are viewed as opportunities to expand market presence, diversify revenue streams, and enhance operational scale . The recent acquisition of CrossFirst Bankshares, Inc. on March 1, 2025, is a key example, creating a premier commercial bank spanning 10 states . This transaction is expected to yield annual pre-tax expense synergies of $25.0 million , with 100% realization of identified synergies in 2026 . The goodwill recorded from the CrossFirst acquisition reflects expected synergies and greater revenue opportunities from Busey's broader service capabilities in attractive new markets .

Another growth area is the introduction of new products and services, which Busey strives to offer to customers with a competitive product set and relevant services . The company's verticals, including Life Equity Lending, Sponsor Finance, Energy Lending, and SBA Lending, transcend geographical boundaries and represent specialized areas of focus . The addition of M&M's Life Equity Loan® products through the 2024 acquisition of Merchants and Manufacturers Bank Corporation expanded Busey's existing suite of services .

Operationally, Busey aims to achieve stabilization in net interest income in lower rate environments through off-balance sheet hedging, balance sheet strategies, and embedding rate protection in asset originations . The company's conservative banking strategy is reflected in its strong capital base, with a goal to consistently maintain capital ratios well in excess of "well capitalized" thresholds . Annual pre-tax expense synergy estimates from the CrossFirst acquisition are on track at $25.0 million , with 100% realization of identified synergies in 2026 . Busey also continues to invest in technology enhancements and manage inflation-driven price increases in data processing expenses . The company added 17 banking centers in 2025, largely due to the CrossFirst acquisition, and opened a second Denver service center on August 18, 2025 .

Regarding capital allocation, Busey's board of directors and management are committed to continuing to pay regular cash dividends on its common stock, though no guarantee can be given for future dividends as they depend on regulatory restrictions, future earnings, capital requirements, and financial condition . The Stock Repurchase Plan, approved on February 3, 2015, allows Busey to purchase shares of its common stock to provide treasury shares for stock-based compensation and limit outstanding shares . As of December 31, 2025, Busey had 4,856,175 shares that may still be purchased under this plan . In January 2026, Busey's Board of Directors approved the redemption of trust preferred securities issued by First Busey Statutory Trust II, with the goal of completing the redemption in June 2026, following regulatory approval in February 2026 .

Management explicitly flagged several structural headwinds and execution risks. The banking regulatory environment is a complex mix of increased deferment to local regulatory authorities, adapting to digital innovation (e.g., AI, digital assets), and potential easing of federal regulatory oversight . Key risks for 2026 include the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, managing fintech/crypto risks, and evolving technological, geopolitical, and economic pressures . The rapid evolution of digital assets and emerging regulatory frameworks introduces new competitive, compliance, and operational risks, even if Busey does not currently offer digital asset products . Geopolitical conflicts across the globe, including conflicts in the Middle East, the Russian invasion of Ukraine, and recent military activity in Venezuela, sustain volatility in energy and trade markets . Domestic labor markets remain tight in key sectors despite slowing job growth . Policy uncertainty, including tariffs, immigration enforcement, and regulatory changes, further complicates planning .

Risk Factors

Busey faces material risks from economic and financial market conditions, including elevated interest rates and persistent inflation above the Federal Reserve's 2% target, which pressure borrowing costs and consumer confidence . Fiscal imbalances, such as a large federal deficit and rising debt-service obligations, add longer-term uncertainty . Geopolitical conflicts in the Middle East, Russia's invasion of Ukraine, and military activity in Venezuela sustain volatility in energy and trade markets . Regional economic vulnerabilities in the 10 states where Busey operates, particularly in major metropolitan areas, expose the company to economic cycles, real estate market volatility, and localized downturns . Changes in interest rates and yield-curve dynamics may compress net interest margin, affect asset valuations, and create liquidity pressures, as rising rates can increase funding costs faster than earning-asset yields reprice . Regulatory and legal risks include changes in government policies and regulatory frameworks, such as the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, managing fintech/crypto risks, and evolving privacy, data protection, and information security laws . Laws impacting cannabis-related businesses, despite Busey's policy to avoid knowingly providing services to such entities, increase the likelihood of interaction and could create additional legal, regulatory, strategic, and reputational risk . Credit and lending risks are heightened by lending activities, including borrower nonpayment, fluctuations in collateral value, and the effects of economic and market conditions, which could result in insufficient credit loss provisions . Loan concentrations in commercial real estate (CRE), which made up 40.9% of Busey's total loan portfolio as of December 31, 2025 , are sensitive to economic and market fluctuations, particularly non-owner occupied CRE loans . Construction, land acquisition, and development loans involve heightened risks due to reliance on projected property values and successful project completion . Credit exposure to the energy industry, though limited, increases vulnerability to sector-specific volatility . Capital and liquidity risks include the failure to maintain sufficient capital to meet regulatory requirements, which could negatively affect customer confidence, constrain growth, increase funding costs, and restrict dividend payments . Liquidity risks also stem from an inability to access funding sources in adequate amounts or on acceptable terms, potentially impairing liquidity . Operational risks include the inherent limitations of Busey's risk management framework, particularly as new risks emerge or vulnerabilities become apparent, especially following the CrossFirst merger . Technological investments, while driving efficiency, introduce cybersecurity risks, including sophisticated cyber-attacks and vendor risk amplification . Outsourcing dependencies could disrupt operations and increase compliance risks due to reliance on third-party service providers . Fraudulent activities, such as identity theft and phishing, pose a persistent challenge and could erode financial stability and customer trust . The ability to attract and retain key personnel is critical, and competitive labor markets or unexpected departures could disrupt operations . Damage from negative publicity, amplified by social media, could harm Busey's reputation and adversely impact its business . Severe weather, natural disasters, pandemics, acts of war or terrorism, and other external events could significantly impact Busey's operations and the ability of customers and counterparties to conduct business .

Management Priorities

Management's message to shareholders emphasizes Busey's financial strength, built on a long-term conservative operating approach, with the quality of its core deposit franchise highlighted as a critical value driver . The company remains substantially core deposit funded, with robust liquidity, and its credit performance reflects a highly diversified, conservatively underwritten loan portfolio . Management is committed to consistently maintaining capital ratios well in excess of thresholds required to be designated as well capitalized by applicable regulatory guidelines . Specific forward-looking statements include the expectation that annual pre-tax expense synergy estimates resulting from the CrossFirst acquisition remain on track at $25.0 million , with 100% realization of identified synergies in 2026 . The three strategic priorities emphasized for the period ahead appear to be: (1) expanding market presence and diversifying revenue streams through strategic acquisitions, as evidenced by the CrossFirst acquisition ; (2) maintaining a strong core deposit franchise and conservative underwriting standards to ensure credit quality over asset growth ; and (3) investing in technology and digital capabilities to meet evolving customer expectations and manage competitive pressures, while also enhancing risk management processes .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 7, MD&A — Results Of Operations — Three Years Ended December 31, 2025
  2. [2] Item 7, MD&A — Operating Performance Metrics
  3. [3] Item 7, MD&A — Operating Performance Metrics
  4. [4] Item 7, MD&A — Operating Performance Metrics
  5. [5] Item 7, MD&A — Operating Performance Metrics
  6. [6] Item 7, MD&A — Operating Performance Metrics
  7. [7] Item 7, MD&A — Operating Performance Metrics
  8. [8] Item 7, MD&A — Operating Performance Metrics
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  47. [47] Item 1, Business — Organization
  48. [48] Item 1, Business — Organization
  49. [49] Item 1, Business — Organization
  50. [50] Item 1, Business — Organization
  51. [51] Item 1, Business — Banking Center Markets
  52. [52] Item 1, Business — Banking Center Markets
  53. [53] Item 1, Business — Organization
  54. [54] Item 1, Business — Organization
  55. [55] Item 7, MD&A — Busey’s Conservative Banking Strategy
  56. [56] Item 7, MD&A — Busey’s Conservative Banking Strategy
  57. [57] Note 23, Operating Segments and Related Information
  58. [58] Item 1, Business — Organization
  59. [59] Item 1, Business — Organization
  60. [60] Item 1, Business — Organization
  61. [61] Note 1, Significant Accounting Policies
  62. [62] Item 1, Business — Organization
  63. [63] Item 1, Business — Organization
  64. [64] Item 1, Business — Organization
  65. [65] Item 8, Consolidated Statements of Income
  66. [66] Item 8, Consolidated Statements of Income
  67. [67] Item 8, Consolidated Statements of Income
  68. [68] Item 8, Consolidated Statements of Income
  69. [69] Item 8, Consolidated Statements of Income
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  77. [77] Item 8, Consolidated Balance Sheets
  78. [78] Item 8, Consolidated Balance Sheets
  79. [79] Item 8, Consolidated Balance Sheets
  80. [80] Item 8, Consolidated Balance Sheets
  81. [81] Item 7, MD&A — Net Interest Income
  82. [82] Item 7, MD&A — Net Interest Income
  83. [83] Item 7, MD&A — Noninterest Income
  84. [84] Item 7, MD&A — Noninterest Income
  85. [85] Item 7, MD&A — Noninterest Expense
  86. [86] Item 7, MD&A — Noninterest Expense
  87. [87] Item 8, Consolidated Statements of Income
  88. [88] Item 8, Consolidated Statements of Income
  89. [89] Item 7, MD&A — Noninterest Expense
  90. [90] Item 7, MD&A — Noninterest Expense
  91. [91] Item 7, MD&A — Financial Condition
  92. [92] Item 7, MD&A — Financial Condition
  93. [93] Item 7, MD&A — Financial Condition
  94. [94] Item 7, MD&A — Financial Condition
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  98. [98] Item 7, MD&A — Financial Condition
  99. [99] Item 7, MD&A — Financial Condition
  100. [100] Item 7, MD&A — Financial Condition
  101. [101] Item 1, Business — Business Combinations
  102. [102] Item 1, Business — Business Combinations
  103. [103] Item 1, Business — Business Combinations
  104. [104] Item 7, MD&A — Noninterest Expense
  105. [105] Item 7, MD&A — Noninterest Expense
  106. [106] Item 7, MD&A — Operating Performance Metrics
  107. [107] Item 7, MD&A — Operating Performance Metrics
  108. [108] Item 1, Business — Forward-Looking Statements
  109. [109] Item 1A, Risk Factors — Competitive and Strategic Risks
  110. [110] Item 1, Business — Business Combinations
  111. [111] Item 7, MD&A — Noninterest Expense
  112. [112] Item 7, MD&A — Noninterest Expense
  113. [113] Note 2, Business Combinations
  114. [114] Item 1A, Risk Factors — Competitive and Strategic Risks
  115. [115] Item 1, Business — Banking Center Markets
  116. [116] Item 1, Business — Business Combinations
  117. [117] Item 7, MD&A — Net Interest Income
  118. [118] Item 7, MD&A — Busey’s Conservative Banking Strategy
  119. [119] Item 7, MD&A — Noninterest Expense
  120. [120] Item 7, MD&A — Noninterest Expense
  121. [121] Item 7, MD&A — Noninterest Expense
  122. [122] Item 7, MD&A — Noninterest Expense
  123. [123] Item 5, Market For Registrant’s Common Equity, Related Stockholder Matters, And Issuer Purchases Of Equity Securities
  124. [124] Item 5, Market For Registrant’s Common Equity, Related Stockholder Matters, And Issuer Purchases Of Equity Securities
  125. [125] Item 5, Market For Registrant’s Common Equity, Related Stockholder Matters, And Issuer Purchases Of Equity Securities
  126. [126] Item 5, Market For Registrant’s Common Equity, Related Stockholder Matters, And Issuer Purchases Of Equity Securities
  127. [127] Note 1, Significant Accounting Policies
  128. [128] Item 1A, Risk Factors — Regulatory and Legal Risks
  129. [129] Item 1A, Risk Factors — Regulatory and Legal Risks
  130. [130] Item 1A, Risk Factors — Competitive and Strategic Risks
  131. [131] Item 1A, Risk Factors — Economic and Market Risks
  132. [132] Item 1A, Risk Factors — Economic and Market Risks
  133. [133] Item 1A, Risk Factors — Economic and Market Risks
  134. [134] Item 1A, Risk Factors — Economic and Market Risks
  135. [135] Item 1A, Risk Factors — Economic and Market Risks
  136. [136] Item 1A, Risk Factors — Economic and Market Risks
  137. [137] Item 1A, Risk Factors — Economic and Market Risks
  138. [138] Item 1A, Risk Factors — Economic and Market Risks
  139. [139] Item 1A, Risk Factors — Regulatory and Legal Risks
  140. [140] Item 1A, Risk Factors — Regulatory and Legal Risks
  141. [141] Item 1A, Risk Factors — Credit and Lending Risks
  142. [142] Item 7, MD&A — Portfolio Loans
  143. [143] Item 7, MD&A — Portfolio Loans
  144. [144] Item 1A, Risk Factors — Credit and Lending Risks
  145. [145] Item 1A, Risk Factors — Credit and Lending Risks
  146. [146] Item 1A, Risk Factors — Credit and Lending Risks
  147. [147] Item 1A, Risk Factors — Capital and Liquidity Risks
  148. [148] Item 1A, Risk Factors — Capital and Liquidity Risks
  149. [149] Item 1A, Risk Factors — Operational Risks
  150. [150] Item 1A, Risk Factors — Operational Risks
  151. [151] Item 1A, Risk Factors — Operational Risks
  152. [152] Item 1A, Risk Factors — Operational Risks
  153. [153] Item 1A, Risk Factors — Operational Risks
  154. [154] Item 1A, Risk Factors — Operational Risks
  155. [155] Item 1A, Risk Factors — Operational Risks
  156. [156] Item 7, MD&A — Busey’s Conservative Banking Strategy
  157. [157] Item 7, MD&A — Busey’s Conservative Banking Strategy
  158. [158] Item 7, MD&A — Busey’s Conservative Banking Strategy
  159. [159] Item 7, MD&A — Noninterest Expense
  160. [160] Item 7, MD&A — Noninterest Expense
  161. [161] Item 1A, Risk Factors — Competitive and Strategic Risks
  162. [162] Item 7, MD&A — Busey’s Conservative Banking Strategy
  163. [163] Item 1A, Risk Factors — Competitive and Strategic Risks

Analysis on 5/20/2026