FIRST BUSEY CORP /NV/

Loans are considered past due if the required principal or interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory guidelines. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Typically, loans are secured by collateral. When a loan is classified as non-accrual and determined to be collateral dependent, it is appropriately reserved or charged down through the ACL to the fair value of Busey’s interest in the underlying collateral less estimated costs to sell. Busey’s loan portfolio is collateralized primarily by real estate.

The following table sets forth information concerning non-performing loans and performing restructured loans, as of each of the dates indicated:

Largely in connection with the CrossFirst acquisition, Busey’s total assets grew by 61.6% to $19.46 billion as of March 31, 2025, compared to $12.05 billion as of December 31, 2024. Busey’s loan portfolio grew by 80.2% to $13.87 billion as of March 31, 2025, compared to $7.70 billion as of December 31, 2024.

Asset quality remains strong by both Busey’s historical and current industry trends, and Busey’s operating mandate and focus remain on emphasizing credit quality over asset growth.

Non-performing loan balances increased to $54.7 million as of March 31, 2025, compared to $23.2 million as of December 31, 2024. Busey Bank’s non-performing loans were $6.8 million, a decrease of $16.4 million compared to December 31, 2024. CrossFirst Bank’s non-performing loans were $47.9 million as of March 31, 2025. Non-performing loans represented 0.39% of portfolio loans as of March 31, 2025, compared to 0.30% as of December 31, 2024. Busey’s allowance for credit losses provided coverage of 3.57 times non-performing loans at March 31, 2025, compared to 3.59 times at December 31, 2024.

Non-performing assets, which includes non-performing loans, OREO, and other repossessed assets, increased to $59.5 million as of March 31, 2025, compared to $23.3 million as of December 31, 2024. Busey Bank’s non-performing assets were $7.1 million, a decrease of $16.2 million compared to December 31, 2024. CrossFirst Bank’s non-performing assets were $52.4 million as of March 31, 2025. Non-performing assets represented 0.31% of total assets as of March 31, 2025, compared to 0.19% as of December 31, 2024. Busey’s allowance for credit losses provided coverage of 3.28 times non-performing assets at March 31, 2025, compared to 3.58 times at December 31, 2024.

Classified assets, which includes non-performing assets and substandard loans, increased to $190.6 million as of March 31, 2025, compared to $85.3 million as of December 31, 2024. Busey Bank’s classified assets were $81.3 million, a decrease of $4.0 million compared to December 31, 2024. CrossFirst Bank’s classified assets were $109.3 million as of March 31, 2025. Classified assets represented 8.40% of the Bank’s Tier 1 capital and ACL at March 31, 2025, compared to 5.61% at December 31, 2024.

Net charge-offs totaled $31.4 million for the three months ended March 31, 2025, compared to $5.2 million for the comparable period in 2024. Net charge-offs include $29.6 million related to PCD loans acquired from CrossFirst Bank, which were fully reserved at acquisition and did not require recording additional provision expense.

Asset quality metrics remain dependent upon market-specific economic conditions, and specific measures may fluctuate from period to period. If economic conditions were to deteriorate, Busey would expect the credit quality of its loan portfolio to decline and loan defaults to increase.