v3.26.1
PORTFOLIO LOANS
 6 Months Ended
Jun. 30, 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)June 30,
2026		December 31,
2025
Commercial loans
C&I and other commercial$3,959,997 $4,229,208 
CRE5,452,781 5,550,018 
Real estate construction1,027,069 1,039,289 
Total commercial loans10,439,847 10,818,515 
Retail loans
Retail real estate2,116,360 2,154,616 
Retail other638,947 594,668 
Total retail loans2,755,307 2,749,284 
 
Total portfolio loans13,195,154 13,567,799 
ACL(164,204)(174,023)
Portfolio loans, net$13,030,950 $13,393,776 
Net deferred loan origination costs included in the balances above were $5.0 million as of June 30, 2026, compared to $7.0 million as of December 31, 2025. Net accretable purchase accounting adjustments included in the balances above reduced loans by $76.5 million as of June 30, 2026, and $86.6 million as of December 31, 2025. Deposit account overdrafts reported as loans totaled $5.2 million as of June 30, 2026, and $7.1 million as of December 31, 2025.
Busey purchased $8.7 million of retail other loans and sold $8.7 million of C&I and other commercial loans during the three and six months ended June 30, 2026. Other than loans acquired in business combinations, Busey did not execute any significant loan purchases or sales during the three and six months ended June 30, 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)June 30,
2026		December 31,
2025
Pledged loans
FHLB$7,053,467 $5,051,512 
Federal Reserve Bank2,151,503 1,854,423 
Total pledged loans$9,204,970 $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 Six Months Ended June 30, 2026
Risk Grade RatingsTerm Loans Amortized Cost Basis by Origination YearRevolving
Loans		Total
(dollars in thousands)20262025202420232022Prior
C&I and other commercial
Pass$258,641 $565,733 $395,757 $186,551 $170,815 $226,405 $1,427,969 $3,231,871 
Watch21,648 51,029 66,016 63,276 29,713 43,370 124,533 399,585 
Special Mention4,259 15,270 13,260 22,469 10,335 4,305 95,288 165,186 
Substandard12,887 1,369 5,724 44,927 19,902 9,942 21,066 115,817 
Substandard non-accrual4 3,987 2,636 23,902 3,756 4,387 8,866 47,538 
Total C&I and other commercial297,439 637,388 483,393 341,125 234,521 288,409 1,677,722 3,959,997 
Gross charge-offs$180 $383 $4,712 $2,953 $6,180 $1,614 $171 $16,193 
 
CRE
Pass717,048 827,048 427,846 567,379 914,659 1,067,555 52,951 4,574,486 
Watch200,466 115,563 51,925 45,275 100,888 136,589 4,277 654,983 
Special Mention33,529 41,231 6,758 28,252 12,362 49,497 770 172,399 
Substandard16,579 1,137 4,200 3,242 4,294 8,542 354 38,348 
Substandard non-accrual68 448 681 6,140 495 4,733 — 12,565 
Total CRE967,690 985,427 491,410 650,288 1,032,698 1,266,916 58,352 5,452,781 
Gross charge-offs— — — 228 — — — 228 
 
Real estate construction
Pass219,026 347,213 206,098 70,502 26,710 6,015 80,274 955,838 
Watch14,837 948 929 1,883 22,561 149 6,815 48,122 
Special Mention348 15,366 — — — 6,295 300 22,309 
Substandard— — — — — 745 55 800 
Total real estate construction234,211 363,527 207,027 72,385 49,271 13,204 87,444 1,027,069 
Gross charge-offs— — 101 — — — — 101 
 
Retail real estate
Pass101,400 129,691 117,825 240,681 419,645 801,946 254,763 2,065,951 
Watch24,936 484 491 332 9,262 479 546 36,530 
Special Mention3,231 45 66 — 818 1,676 200 6,036 
Substandard— — — 4,082 129 1,085 — 5,296 
Substandard non-accrual— 510 175 127 488 578 669 2,547 
Total retail real estate129,567 130,730 118,557 245,222 430,342 805,764 256,178 2,116,360 
Gross charge-offs119 — 151 — 39 44 81 434 
 
Retail other
Pass1,652 3,867 1,634 23,377 21,422 2,697 584,182 638,831 
Substandard non-accrual— — — 76 28 12 — 116 
Total retail other1,652 3,867 1,634 23,453 21,450 2,709 584,182 638,947 
Gross charge-offs264 — — 10 — — 77 351 
 
Total portfolio loans$1,630,559 $2,120,939 $1,302,021 $1,332,473 $1,768,282 $2,377,002 $2,663,878 $13,195,154 
Total gross charge-offs$563 $383 $4,964 $3,191 $6,219 $1,658 $329 $17,307 
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 June 30, 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$1,408 $377 $1,592 $47,538 $14,576 
CRE44 652 2,932 12,565 4,990 
Real estate construction135 — — — — 
Past due and non-accrual commercial loans1,587 1,029 4,524 60,103 19,566 
Retail loans
Retail real estate3,242 504 — 2,547 — 
Retail other774 999 144 116 — 
Past due and non-accrual retail loans4,016 1,503 144 2,663 — 
Total past due and non-accrual loans$5,603 $2,532 $4,668 $62,766 $19,566 
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 
Busey collected $0.4 million on non-accrual CRE loans during the three months ended June 30, 2026, which was recognized in interest income on a cash basis. Busey collected $1.0 million on non-accrual loans during the six months ended June 30, 2026, consisting of $0.6 million on C&I and other commercial loans and $0.4 million on CRE loans, which was recognized in interest income on a cash basis. Amounts collected on non-accrual loans and recognized in interest income on a cash basis were immaterial for both the three and six months ended June 30, 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 June 30, 2026
(dollars in thousands)
Term Extension
Combination—Interest Rate Reduction and Payment Deferral
% of Total Class of Financing Receivable
Modified Loans
C&I and other commercial
$10,686 $574 0.3 %
CRE
12,161 3,548 0.3 %
Total loans modified during the period1
$22,847 $4,122 0.2 %
___________________________________________
1.Modifications were primarily for loans classified as substandard, with approximately 7.1% classified as substandard non-accrual.
Three Months Ended June 30, 2025
(dollars in thousands)
Payment Deferral
Term Extension
Combination—Payment Deferral and Term Extension
% of Total Class of Financing Receivable
Modified Loans
C&I and other commercial
$490 $21,913 $4,412 0.6 %
CRE1
— 1,297 — — %
Total loans modified during the period2
$490 $23,210 $4,412 0.2 %
___________________________________________
1.Modified loans represented an insignificant portion of CRE loans, rounding to zero percent.
2.All modifications were for loans classified as substandard.
Six Months Ended June 30, 2026
(dollars in thousands)
Payment Deferral
Term Extension
Combination—Interest Rate Reduction and Payment Deferral
% of Total Class of Financing Receivable
Modified Loans
C&I and other commercial
$1,822 $35,442 $574 1.0 %
CRE
— 12,161 3,548 0.3 %
Total loans modified during the period1
$1,822 $47,603 $4,122 0.4 %
___________________________________________
1.Modifications were primarily for loans classified as substandard, with approximately 8.4% classified as special mention and approximately 7.8% classified as substandard non-accrual.
Six Months Ended June 30, 2025
(dollars in thousands)
Payment Deferral
Term Extension
Combination—Payment Deferral and Term Extension
% of Total Class of Financing Receivable
Modified Loans
C&I and other commercial
$11,639 $26,985 $4,412 1.0 %
CRE1
— 1,848 — — %
Real estate construction
— 5,187 — 0.5 %
Total loans modified during the period2
$11,639 $34,020 $4,412 0.4 %
___________________________________________
1.Modified loans represented an insignificant portion of CRE loans, rounding to zero percent.
2.Modifications were primarily for loans classified as substandard, with approximately 0.9% classified as substandard non-accrual.
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 June 30,Six Months Ended June 30,
2026202520262025
Weighted Average Interest Rate ReductionWeighted Average Term ExtensionWeighted Average Term ExtensionWeighted Average Interest Rate ReductionWeighted Average Term ExtensionWeighted Average Term Extension
C&I and other commercial3.25 %8 months1.7 years3.25 %10 months1.6 years
CRE3.15 %1.2 years7 months3.15 %1.2 years11 months
Real estate construction— %——— %—1.3 years
Aggregate effect3.17 %11 months1.6 years3.17 %11 months1.5 years
Payment deferrals for borrowers experiencing financial difficulty can include deferrals of three or more payments to the end of the loan, accommodations to restructure the payment terms of the loan, or accommodations to allow for a period of interest-only payments 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 June 30, 2026
(dollars in thousands)Current30-89 Days90+ DaysNon-accrual
Modified Loans
C&I and other commercial$34,978 $— $— $4,200 
CRE16,401 — — 273 
Loans modified during the last twelve months$51,379 $— $— $4,473 
Busey had commitments of $1.3 million as of June 30, 2026, and $13.5 million as of December 31, 2025, to lend additional funds to debtors experiencing financial difficulty for whom Busey modified a loan within the past twelve months.
A default occurs when a loan is 90 days or more past due or transferred to non-accrual status. The following table presents loans that defaulted after having been modified during the twelve months before the default.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(dollars in thousands)Term ExtensionPayment DeferralTerm ExtensionPayment Deferral
Loans with Subsequent Defaults
C&I and other commercial$— $467 $— $467 
CRE— — 273 — 
Modified loans with subsequent defaults$— $467 $273 $467 
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 $57.4 million of collateral dependent loans as of June 30, 2026, and $47.8 million of collateral dependent loans as of December 31, 2025.
OREO and Other Repossessed Assets
Busey held $0.3 million of commercial OREO, an immaterial amount of residential OREO, and $2.6 million of other repossessed assets, as of June 30, 2026. Busey’s recorded investment in residential real estate loans that were in the process of foreclosure was $0.9 million as of June 30, 2026. Busey follows Federal Housing Finance Agency guidelines on single-family foreclosures and real estate owned evictions on portfolio loans.
Allowance for Credit Losses
A description of Busey's accounting policies and methodology related to the ACL, including the three components of the ACL—specific allocations/individual reserves, quantitative reserves, and qualitative reserves— is included under the heading “Allowance for Credit Losses” in “Note 1. Significant Accounting Policies” and “Note 4. Portfolio Loans” in Busey's 2025 Annual Report. There were no significant changes to the methodology during the six months ended June 30, 2026.
Busey's quantitative 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. Due to the continued economic uncertainty in the markets in which Busey operates, in estimating the ACL, Busey uses a forecast period of 12 months with an immediate reversion to historical loss rates beyond this forecast period.
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 June 30, 2026
(dollars in thousands)C&I and Other CommercialCREReal Estate
Construction		Retail
Real Estate		Retail OtherTotal
ACL balance, March 31, 2026$57,804 $70,100 $12,588 $27,140 $1,422 $169,054 
Provision for loan losses6,772 (8,060)2,367 272 181 1,532 
Charged-off(8,688)(228)(101)(283)(167)(9,467)
Recoveries1,531 1,371 1 87 95 3,085 
ACL balance, June 30, 2026$57,419 $63,183 $14,855 $27,216 $1,531 $164,204 
Three Months Ended June 30, 2025
(dollars in thousands)C&I and Other CommercialCREReal Estate
Construction		Retail
Real Estate		Retail OtherTotal
ACL balance, March 31, 2025$89,304 $68,478 $8,689 $26,399 $2,340 $195,210 
Provision for loan losses(18,863)13,370 4,300 2,597 (399)1,005 
Charged-off(2,080)(10,916)— (119)(268)(13,383)
Recoveries217 3 83 165 34 502 
ACL balance, June 30, 2025$68,578 $70,935 $13,072 $29,042 $1,707 $183,334 
Six Months Ended June 30, 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 losses10,328 (8,294)3,386 (1,672)177 3,925 
Charged-off(16,193)(228)(101)(434)(351)(17,307)
Recoveries1,914 1,377 2 144 126 3,563 
ACL balance, June 30, 2026$57,419 $63,183 $14,855 $27,216 $1,531 $164,204 
Six Months Ended June 30, 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
(18,240)12,977 4,611 2,094 (418)1,024 
Charged-off3
(33,301)(11,169)— (119)(629)(45,218)
Recoveries
313 134 93 298 70 908 
ACL balance, June 30, 2025$68,578 $70,935 $13,072 $29,042 $1,707 $183,334 
___________________________________________
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 $31.1 million for PCD loans assumed in the CrossFirst acquisition, which were fully reserved at acquisition and did not require recording additional provision expense.