FIRST BUSEY CORP /NV/

Changes in noninterest expense are summarized as follows for the periods presented:

1. The efficiency ratio and adjusted efficiency ratio are non-GAAP financial measures. For a reconciliation of non-GAAP measures to the most directly comparable financial GAAP measures, see“Item 2. Management’s Discussion and Analysis—Non-GAAP Financial Information” included in this Quarterly Report.

Total noninterest expense was $115.2 million for the three months ended March 31, 2025, a 62.7% increase from the comparable period in 2024. Growth in noninterest expense was primarily attributable to non-recurring acquisition expenses related to the CrossFirst acquisition as well as added costs for operating expenses for two banks during one month of the quarter. Pre-tax non-operating acquisition and restructuring expenses contributed $29.2 million to total noninterest expense for the three months ended March 31, 2025, compared to $0.4 million for the comparable period in 2024. Excluding non-operating expenses, noninterest expense was $86.0 million for the three months ended March 31, 2025, a 22.2% increase from the comparable period in 2024.

Annual pre-tax expense synergy estimates resulting from the CrossFirst acquisition remain on track at an estimated $25.0 million when fully realized. Busey anticipates a 50% rate of synergy realization in 2025 and 100% in 2026.

Salaries, wages, and employee benefits were $67.6 million for the three months ended March 31, 2025, a 60.5% increase from the comparable period in 2024. Increases were partially attributable to non-operating expenses, with additional severance, retention, and stock-based compensation. Excluding non-operating expenses, salaries, wages, and employee benefits were $51.7 million for the three months ended March 31, 2025, a 23.2% increase from $42.0 million in the comparable period in 2024. Busey has added 501 full time equivalent associates (“FTEs”) over the past year, mostly as a result of acquisitions, including 437 CrossFirst Bank FTEs added in March 2025 and 46 M&M Bank FTEs added in April 2024.

Data processing expense was $9.6 million for the three months ended March 31, 2025, a 46.2% increase from the comparable period in 2024. Excluding non-operating expenses, data processing expense was $7.3 million for the three months ended March 31, 2025, a 12.8% increase from the comparable period in 2024. Increases were primarily attributable to Company-wide investments in technology enhancements, including increases related to operating two banks for one month during the quarter, as well as inflation-driven price increases.

Combined, net occupancy expense of premises and furniture and equipment expense totaled $7.5 million for the three months ended March 31, 2025, a 15.5% increase from the comparable period in 2024. Primary cost drivers in these expense categories include lease costs, repairs and maintenance, depreciation expense, real estate taxes, and utilities. CrossFirst Bank added 16 banking centers in the first quarter of 2025 and M&M Bank added four banking centers in the second quarter of 2024.

Professional fees were $9.5 million for the three months ended March 31, 2025, a 322.1% increase from the comparable period in 2024. Excluding non-operating expenses, professional fees were $2.2 million for the three months ended March 31, 2025, a 4.8% increase from the comparable period in 2024, primarily as a result of increases in legal costs.

Amortization of intangible assets was $3.1 million for the three months ended March 31, 2025, a 28.0% increase from the comparable period for 2024. The CrossFirst acquisition added an estimated $81.8 million of finite-lived intangible assets, which will be amortized using an accelerated amortization methodology.

Interchange expense was $1.3 million for the three months ended March 31, 2025, a 16.6% decrease from the comparable period in 2024. Fluctuations in interchange expense relate to payment and volume activity at FirsTech.

FDIC insurance expense was $2.2 million for the three months ended March 31, 2025, a 54.8% increase from the comparable period in 2024 due to the CrossFirst acquisition.

Other noninterest expense was $14.4 million for the three months ended March 31, 2025, an 81.6% increase from the comparable period in 2024. Excluding non-operating expenses, other noninterest expense was $10.7 million for the three months ended March 31, 2025, a 35.2% increase from $7.9 million for the comparable period in 2024. Changes in other noninterest expense are attributable to multiple items, including marketing and business development, other real estate owned, and fluctuations in the provision for unfunded commitments outside of the non-operating Day 2 provision recorded in connection with the CrossFirst acquisition.