v3.26.1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Financial Instruments Owned and Pledged as Collateral
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 
To secure its obligations under derivative contracts, Busey pledged cash and held collateral as follows:
As of
(dollars in thousands)June 30,
2026		December 31,
2025
Cash pledged to secure obligations under derivative contracts$14,400 $14,400 
Collateral held to secure obligations under derivative contracts7,720 5,050 
Schedule of the Interest-Rate Swaps Designated as Cash Flow Hedges
A summary of the interest-rate swaps designated as cash flow hedges is presented below:
As of
(dollars in thousands)LocationJune 30,
2026		December 31,
2025
Prime Loan Swap
Notional amount$300,000 $300,000 
Weighted average receive rate, fixed4.81 %4.81 %
Weighted average pay rate, variable Prime6.75 %6.81 %
Weighted average maturity
2.60 years
3.10 years
 
SOFR Loan Swaps
Notional amount$500,000 $200,000 
Weighted average receive rate, fixed3.72 %3.78 %
Weighted average pay rate, variable 1-month CME Term SOFR1
3.63 %3.82 %
Weighted average maturity4.53 years3.76 years
 
Gross aggregate fair value of the swaps
Gross aggregate fair value of swap assetsOther assets$43 $3,215 
Gross aggregate fair value of swap liabilitiesOther liabilities19,820 14,589 
 
Balances carried in AOCI
Unrealized gains (losses) on cash flow hedges, net of taxAOCI$(13,972)$(7,616)
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1.As of June 30, 2026, a pay rate was not yet established for a 6-month forward-starting SOFR loan swap with a notional amount of $200 million, which was entered into during the first quarter of 2026. For purposes of the weighted average pay rate calculation, Busey used the rate that would have been applicable for this loan swap as of June 30, 2026, if not for the deferred period.
Schedule of Reclassification of Unrealized Gains and Losses from OCI
During the next 12 months, Busey expects to reclassify unrealized gains and losses from OCI to interest income as shown in the following table. Amounts actually recognized could differ from these expectations due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to June 30, 2026.
(dollars in thousands)As of
June 30, 2026
Unrealized losses expected to be reclassified from OCI to interest income$(444)
Schedule of Interest Income (Expense) Recorded on Swap Transactions
Changes in interest income recorded on these swap transactions is presented in the following table:
Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)2026202520262025
Decrease in interest income on swap transactions$(1,387)$(2,265)$(2,790)$(4,325)
Schedule of Net Gains (Losses) on Derivative Instruments
Net gains and losses relating to cash flow derivative instruments that were recorded in OCI on the Consolidated Statements of Income (Unaudited) are presented in the table below:
Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)2026202520262025
Unrealized gains (losses) on cash flow hedges
Net gains (losses) recognized in OCI, net of tax$(5,664)$2,598 $(8,447)$7,239 
Losses reclassified from OCI to interest income, net of tax1,039 1,693 2,091 3,198 
Net change in unrealized gains (losses) on cash flow hedges, net of tax$(4,625)$4,291 $(6,356)$10,437 
Changes in fair value of these derivative assets and derivative liabilities were as follows:
Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)2026202520262025
Interest rate swaps
Receive-fixed, pay-floating$230 $(1,972)$(2,886)$1,062 
Receive-floating, pay-fixed(230)1,972 2,886 (1,062)
Net change in fair value of interest rate swaps$— $— $— $— 
Changes in fair value of these derivative assets and derivative liabilities were recognized on the Consolidated Statements of Income (Unaudited) as follows:
Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)Location2026202520262025
Risk participation agreements
Gains recognized in earningsOther noninterest expense$9 $5 $18 $7 
Gains (losses) recognized in earningsOther noninterest income— (3)— (14)
Net change in fair value of risk participation agreements$9 $2 $18 $(7)
Gains and/or losses relating to foreign currency exchange derivative instruments are reported in noninterest income on the Consolidated Statements of Income (Unaudited), and are summarized as follows:
Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)Location2026202520262025
Gains on foreign currency exchange contractsOther noninterest income$14 $— $25 $— 
Gains and losses relating to these derivative instruments are reported in noninterest income, and are summarized as follows:
Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)Location2026202520262025
Net gains (losses) on mortgage banking derivatives
Gains (losses) on interest rate lock commitmentsOther noninterest income$58 $239 $102 $481 
Gains (losses) on forward sales commitmentsOther noninterest income27 26 123 (61)
Net gains (losses) on mortgage banking derivatives$85 $265 $225 $420 
Schedule of Fair Values of Derivative Assets and Liabilities Recorded in Consolidated Balance Sheet
Amounts and fair values of derivative assets and derivative liabilities related to customer interest rate swaps recorded on the Consolidated Balance Sheets (Unaudited) are summarized as follows:
As of June 30, 2026As of December 31, 2025
(dollars in thousands)LocationNotional
Amount		Fair
Value		Notional
Amount		Fair
Value
Derivative assets not designated as hedging instruments
Interest rate swaps: receive-fixed, pay-floatingOther assets$375,604 $3,236 $703,286 $11,542 
Interest rate swaps: receive-floating, pay-fixedOther assets953,930 21,432 456,973 15,998 
Derivative assets not designated as hedging instruments$1,329,534 $24,668 $1,160,259 $27,540 
 
Derivative liabilities not designated as hedging instruments
Interest rate swaps: receive-fixed, pay-floatingOther liabilities$953,930 $21,432 $456,973 $15,998 
Interest rate swaps: receive-floating, pay-fixedOther liabilities375,604 3,236 703,286 11,542 
Derivative liabilities not designated as hedging instruments$1,329,534 $24,668 $1,160,259 $27,540 
Amounts and fair values of mortgage banking derivatives included on the Consolidated Balance Sheets (Unaudited) are summarized as follows:
As of June 30, 2026As of December 31, 2025
(dollars in thousands)LocationNotional
Amount		Fair
Value		Notional
Amount		Fair
Value
Mortgage banking derivative assets
Interest rate lock commitmentsOther assets$2,240 $47 $6,159 $145 
Forward sales commitmentsOther assets6,731 85 1,520 2 
Mortgage banking derivative assets$8,971 $132 $7,679 $147 
 
Mortgage banking derivative liabilities
Forward sales commitments
Other liabilities$2,307 $6 $9,278 $26 
Mortgage banking derivative liabilities$2,307 $6 $9,278 $26 
Schedule of Notional Amount and Fair Value of Risk Participation Agreement The risk participation agreements mature between August 2026 and October 2033, and are summarized as follows:
As of June 30, 2026As of December 31, 2025
(dollars in thousands)LocationNotional
Amount		Fair
Value		Notional
Amount		Fair
Value
Risk participation agreements
PurchasedOther assets$74,808 $12 $74,590 $30 
SoldOther liabilities95,783 29 108,743 65 
Schedule of Foreign Currency Forward Contracts Amounts and fair values of foreign currency exchange derivative instruments included on the Consolidated Balance Sheets (Unaudited) are summarized as follows:
As of June 30, 2026As of December 31, 2025
(dollars in thousands)LocationNotional
Amount		Fair
Value		Notional
Amount		Fair
Value
Foreign currency exchange contractOther assets$3,226 $172 $— $—