0001558370-22-001928 | 10-K | XBRL Viewer

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Cash and cash equivalents:
Cash and Due from Banks	$ 102,983	$ 118,824
Interest-bearing deposits	733,112	569,713
Total cash and cash equivalents	836,095	688,537
Debt securities available for sale	3,981,251	2,261,187
Equity securities	13,571	5,530
Loans held for sale, at fair value	23,875	42,813
Portfolio loans (net of ACL of $87,887 at December 31, 2021; $101,048 at December 31, 2020)	7,101,111	6,713,129
Premises and equipment, net	136,147	135,191
Right of use assets	10,533	7,714
Goodwill	317,873	311,536
Other intangible assets, net	58,051	51,985
Cash surrender value of bank owned life insurance	176,940	176,405
Other assets	204,242	150,020
Total assets	12,859,689	10,544,047
Deposits:
Noninterest-bearing	3,670,267	2,552,039
Interest-bearing	7,098,310	6,125,810
Total deposits	10,768,577	8,677,849
Securities sold under agreements to repurchase	270,139	175,614
Short-term borrowings	17,678	4,658
Long-term debt	46,056	4,757
Senior notes, net of unamortized issuance costs	39,944	39,809
Subordinated notes, net of unamortized issuance costs	182,773	182,226
Junior subordinated debt owed to unconsolidated trusts	71,635	71,468
Lease liabilities	10,591	7,757
Other liabilities	133,184	109,840
Total liabilities	11,540,577	9,273,978
Outstanding commitments and contingent liabilities (see Notes 16 and 22)
Stockholders' Equity
Common stock, ($.001 par value; 100,000,000 shares authorized)	58	56
Additional paid-in capital	1,316,984	1,253,360
Retained earnings	92,463	20,830
AOCI	(23,758)	33,309
Total stockholders' equity before treasury stock	1,385,747	1,307,555
Treasury stock at cost	(66,635)	(37,486)
Total stockholders' equity	1,319,112	1,270,069
Total liabilities and stockholders' equity	$ 12,859,689	$ 10,544,047
Shares
Common shares issued	58,116,970	55,910,733
Less treasury shares	(2,682,060)	(1,506,354)
Common shares outstanding	55,434,910	54,404,379

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED BALANCE SHEETS
Portfolio Loans, allowance for loan losses (in dollars)	$ 87,887	$ 101,048
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Interest income
Interest and fees on loans	$ 252,097	$ 284,959	$ 304,193
Interest and dividends on investment securities:
Taxable interest income	41,787	35,364	41,090
Non-taxable interest income	3,765	4,552	4,631
Other interest income	1,151	1,723	6,320
Total interest income	298,800	326,598	356,234
Interest expense
Deposits	12,583	30,691	55,077
Federal funds purchased and securities sold under agreements to repurchase	227	660	2,348
Short-term borrowings	279	234	1,041
Long-term debt	657	525	2,608
Senior notes	1,598	1,598	1,599
Subordinated notes	9,918	6,995	2,924
Junior subordinated debt owed to unconsolidated trusts	2,840	2,960	3,414
Total interest expense	28,102	43,663	69,011
Net interest income	270,698	282,935	287,223
Provision for credit losses	(15,101)	38,797	10,406
Net interest income after provision for credit losses	285,799	244,138	276,817
Noninterest income
Income on bank owned life insurance	5,166	5,380	5,795
Net gains (losses) on sales of securities	29	1,724	741
Unrealized gains (losses) recognized on equity securities	3,041	(393)	(759)
Other income	10,292	8,356	8,048
Total noninterest income	132,804	118,265	116,415
Noninterest expense
Salaries, wages, and employee benefits	145,312	126,719	140,473
Data processing	21,862	16,426	21,511
Net occupancy expense of premises	18,346	17,607	18,176
Furniture and equipment expenses	8,301	9,550	9,506
Professional fees	7,549	8,396	11,104
Amortization of intangible assets	11,274	10,008	9,547
Interchange expense	5,792	4,810	4,141
Other expense	43,344	40,681	44,336
Total noninterest expense	261,780	234,197	258,794
Income before income taxes	156,823	128,206	134,438
Income taxes	33,374	27,862	31,485
Net income	$ 123,449	$ 100,344	$ 102,953
Basic earnings per common share (in dollars per share)	$ 2.23	$ 1.84	$ 1.88
Diluted earnings per common share (in dollars per share)	2.20	1.83	1.87
Dividends declared per share of common stock (in dollars per share)	$ 0.92	$ 0.88	$ 0.84
Wealth management fees
Noninterest income
Non-interest income	$ 53,086	$ 42,928	$ 38,561
Fees for customer services
Noninterest income
Non-interest income	35,604	31,604	36,683
Payment technology solutions
Noninterest income
Non-interest income	18,347	15,628	15,643
Mortgage revenue
Noninterest income
Mortgage revenue	$ 7,239	$ 13,038	$ 11,703

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 123,449	$ 100,344	$ 102,953
Unrealized gains (losses) on debt securities available for sale:
Net unrealized holding gains (losses) on debt securities available for sale, net of taxes of $23,367, ($8,615), and ($7,525), respectively	(58,610)	21,561	18,905
Net unrealized (gains) losses on debt securities transferred from held to maturity to available for sale, net of taxes of $-, $-, and ($1,433), respectively			3,590
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, net of taxes of ($17), $496, and $210, respectively	44	(1,228)	(523)
Net change in unrealized gains (losses) on debt securities available for sale	(58,566)	20,333	21,972
Unrealized gains (losses) on cash flow hedges:
Net unrealized holding gains (losses) on cash flow hedges, net of taxes of ($294), $1,007, and $81, respectively	736	(2,526)	(202)
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, net of taxes of ($304), ($216), and ($1), respectively	763	542	2
Net change in unrealized gains (losses) on cash flow hedges	1,499	(1,984)	(200)
Net change in AOCI	(57,067)	18,349	21,772
Total comprehensive income	$ 66,382	$ 118,693	$ 124,725

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net unrealized holding gains (losses) on debt securities available for sale, taxes	$ 23,367	$ (8,615)	$ (7,525)
Net unrealized (gains) losses on debt securities transferred from held to maturity to available for sale, taxes			(1,433)
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, taxes	(17)	496	210
Net unrealized holding gains (losses) on cash flow hedges, taxes	(294)	1,007	81
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, taxes	$ (304)	$ (216)	$ (1)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings (Accumulated Deficit)	AOCI	Treasury Stock	Cumulative Effect, Period of Adoption, Adjustment	Total
Beginning balance at Dec. 31, 2018	$ 49	$ 1,080,084		$ (72,167)	$ (6,812)	$ (6,190)		$ 994,964
Beginning Balance (in shares) at Dec. 31, 2018	48,874,836
Increase (decrease) in shareholders' equity
Net income				102,953				102,953
OCI, net of tax					21,772			21,772
Stock issued in acquisition, net of stock issuance costs	$ 7	166,274						166,281
Stock issued in acquisition, net of stock issuance costs (in shares)	6,725,152
Repurchase of stock						(24,292)		(24,292)
Repurchase of stock (in shares)	(943,396)
Issuance of treasury stock for ESPP		137				487		624
Issuance of treasury stock for ESPP (in shares)	25,698
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax		(2,600)				382		(2,218)
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax (in shares)	92,996
Issuance of treasury stock for stock options exercised, net of shares redeemed and related tax		(104)				1,628		1,524
Issuance of treasury stock for stock options exercised, net of shares redeemed and related tax (in shares)	13,486
Cash dividends common stock				(45,171)				(45,171)
Stock dividend equivalents RSUs		428		(428)
Stock-based compensation		3,997						3,997
Ending balance at Dec. 31, 2019	$ 56	1,248,216	$ (15,922)	(14,813)	14,960	(27,985)	$ (15,922)	1,220,434
Ending Balance (in shares) at Dec. 31, 2019	54,788,772
Increase (decrease) in shareholders' equity
Net income				100,344				100,344
OCI, net of tax					18,349			18,349
Repurchase of stock						(12,272)		(12,272)
Repurchase of stock (in shares)	(531,114)
Issuance of treasury stock for ESPP		(59)				606		547
Issuance of treasury stock for ESPP (in shares)	32,063
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax		(2,648)				2,013		(635)
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax (in shares)	106,589
Issuance of treasury stock for stock options exercised, net of shares redeemed and related tax		(51)				152		101
Issuance of treasury stock for stock options exercised, net of shares redeemed and related tax (in shares)	8,069
Cash dividends common stock				(48,012)				(48,012)
Stock dividend equivalents RSUs		767		(767)
Stock-based compensation		7,135						7,135
Ending balance at Dec. 31, 2020	$ 56	1,253,360		20,830	33,309	(37,486)		1,270,069
Ending Balance (in shares) at Dec. 31, 2020	54,404,379
Increase (decrease) in shareholders' equity
Net income				123,449				123,449
OCI, net of tax					(57,067)			(57,067)
Stock issued in acquisition, net of stock issuance costs	$ 2	58,953						58,955
Stock issued in acquisition, net of stock issuance costs (in shares)	2,206,237
Repurchase of stock						(33,043)		(33,043)
Repurchase of stock (in shares)	(1,323,000)
Issuance of treasury stock for ESPP		(136)				782		646
Issuance of treasury stock for ESPP (in shares)	30,390
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax		(4,109)				3,112		(997)
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax (in shares)	116,904
Cash dividends common stock				(50,764)				(50,764)
Stock dividend equivalents RSUs		1,052		(1,052)
Stock-based compensation		7,864						7,864
Ending balance at Dec. 31, 2021	$ 58	$ 1,316,984		$ 92,463	$ (23,758)	$ (66,635)		$ 1,319,112
Ending Balance (in shares) at Dec. 31, 2021	55,434,910

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Cash dividends, common stock (in dollars per share)	$ 0.92	$ 0.88	$ 0.84
Stock dividends, restricted stock units (in dollars per share)	$ 0.92	$ 0.88	$ 0.84

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash Flows Provided by (Used in) Operating Activities
Net income	$ 123,449	$ 100,344	$ 102,953
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for credit losses	(15,101)	38,797	10,406
Amortization of intangible assets	11,274	10,008	9,547
Amortization of mortgage servicing rights	5,292	5,667	2,710
Depreciation and amortization of premises and equipment	11,610	12,273	11,879
Net amortization (accretion) on portfolio loans	(11,545)	(15,372)	(3,383)
Net amortization (accretion) of premium (discount) on investment securities	24,251	9,716	6,106
Net amortization (accretion) of premium (discount) on time deposits	(1,142)	(933)	(1,648)
Net amortization (accretion) of premium (discount) on FHLB advances and other borrowings	826	586	309
Impairment of OREO	1	68	62
Impairment of fixed assets held for sale	3,227	6,901	2,026
Impairment of mortgage servicing rights	(639)	648
Amortization of NMTC	5,563	2,311	1,200
Impairment of leases			348
Change in fair value of equity securities, net	(3,041)	393	759
(Gain) loss on sales of equity securities, net			(8)
(Gain) loss on sales of debt securities, net	(29)	(1,724)	(733)
(Gain) loss on sales of loans, net	(9,323)	(26,999)	(16,819)
(Gain) loss on sales of OREO	174	(133)	(102)
(Gain) loss on sales of premises and equipment	(1,023)	286	113
(Gain) loss on life insurance proceeds	(1,257)	(1,270)	(1,604)
(Increase) decrease in cash surrender value of bank owned life insurance	(3,909)	(4,110)	(4,191)
Provision for deferred income taxes	4,665	(5,309)	96
Stock-based compensation	7,864	7,135	3,997
Increase (decrease) in deferred compensation			(6,781)
Mortgage loans originated for sale	(274,356)	(881,398)	(667,515)
Proceeds from sales of mortgage loans	306,074	920,050	641,778
Net change in operating assets and liabilities:
(Increase) decrease in other assets	7,203	(8,210)	4,197
Increase (decrease) in other liabilities	(28,096)	(6,551)	(7,380)
Net cash provided by (used in) operating activities	162,012	163,174	88,322
Cash Flows Provided by (Used in) Investing Activities
Purchases of equity securities	(11,017)	(13,123)	(550)
Purchases of debt securities available for sale	(2,298,055)	(1,282,199)	(408,941)
Purchases of FHLB stock			(3,700)
Proceeds from sales of equity securities	7,254	13,152	1,474
Proceeds from sales of debt securities available for sale	290,955		227,371
Proceeds from paydowns and maturities of debt securities held to maturity			14,422
Proceeds from paydowns and maturities of debt securities available for sale	868,083	665,744	541,753
Proceeds from the redemption of FHLB stock			5,369
Net cash received in (paid for) acquisitions (see Note 2)	228,279		(61,481)
Net (increase) decrease in loans	76,826	(113,744)	(251,855)
Cash paid for premiums on bank-owned life insurance	(124)	(120)	(6)
Proceeds from life insurance	4,755	2,696	3,915
Purchases of premises and equipment	(5,042)	(4,198)	(13,238)
Proceeds from disposition of premises and equipment	7,306	814	424
Capitalized expenditures on OREO			(2)
Proceeds from sales of OREO	1,590	1,439	2,481
Net cash provided by (used in) investing activities	(829,190)	(729,539)	57,436
Cash Flows Provided by (Used in) Financing Activities
Net increase (decrease) in deposits	767,474	776,386	215,519
Net change in federal funds purchased and securities sold under agreements to repurchase	77,874	(29,877)	(30,904)
Proceeds from FHLB advances	5,000	4,000
Repayment of FHLB advances	(4,658)	(32,711)	(24,667)
Proceeds from other borrowings	72,500	142,634	60,000
Repayment of other borrowings	(18,500)	(74,000)	(6,000)
Cash dividends paid	(50,764)	(48,012)	(45,171)
Purchase of treasury stock	(33,043)	(12,272)	(24,292)
Cash paid for withholding taxes on stock-based payments	(997)	(635)	(863)
Proceeds from stock options exercised		101	169
Common stock issuance costs	(150)		(234)
Net cash provided by (used in) financing activities	814,736	725,614	143,557
Net increase (decrease) in cash and cash equivalents	147,558	159,249	289,315
Cash and cash equivalents, beginning of period	688,537	529,288	239,973
Cash and cash equivalents, ending of period	836,095	688,537	529,288
Cash payments for:
Interest	25,374	53,601	70,577
Income taxes	12,542	22,195	24,725
Non-cash investing and financing activities:
OREO acquired in settlement of loans	1,610	$ 2,867	4,872
Transfer of loans held for sale to portfolio loans	$ (4,808)
Transfer of debt securities held to maturity to available for sale			$ 593,548

Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Significant Accounting Policies

Significant Accounting Policies

Note 1. Significant Accounting Policies

Nature of operations

First Busey Corporation is a financial holding company organized under the laws of Nevada. The Company’s subsidiaries provide retail and commercial banking services and payment technology solutions, and offer a full range of financial products and services including depository, lending, security brokerage, investment management, and fiduciary services, to individual, corporate, institutional, and governmental customers through their locations in Illinois, Missouri, southwest Florida and Indianapolis, Indiana. The Company and its subsidiaries are subject to the regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies.

The significant accounting and reporting policies for the Company and its subsidiaries follow:

Principles of consolidation

The Consolidated Financial Statements include the accounts of the Company and its subsidiaries, which include First Busey Risk Management, Deed of Trust Services Corporation, and Busey Bank, including Busey Bank’s wholly-owned subsidiaries FirsTech, Pulaski Service Corporation, and Busey Capital Management, Inc. Operating results generated from acquired businesses are included with the Company’s results of operations starting from each date of acquisition. The Company and its subsidiaries maintain various LLCs that hold specific assets for risk mitigation purposes and are consolidated into these Consolidated Financial Statements. Intercompany balances and transactions have been eliminated in consolidation.

Because the Company is not the primary beneficiary, the Consolidated Financial Statements exclude the following wholly-owned variable interest entities: First Busey Statutory Trust II, First Busey Statutory Trust III, First Busey Statutory Trust IV, Pulaski Financial Statutory Trust I, and Pulaski Financial Statutory Trust II.

Use of estimates

In preparing the accompanying Consolidated Financial Statements in conformity with GAAP, the Company’s management is required to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the disclosures provided. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near-term relate to the fair value of debt securities available for sale, fair value of assets acquired and liabilities assumed in business combinations, goodwill, income taxes, and the determination of the ACL.

Comprehensive income (loss)

Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale debt securities and unrealized gains and losses on cash flow hedges, are reported as a separate component within the equity section of the balance sheet, such items, along with net income, are components of comprehensive income (loss).

Trust assets

Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit at Busey Bank, are not assets of the Company and, accordingly, are not included in the accompanying Consolidated Financial Statements. The Company had assets under care of $12.7 billion and $10.2 billion at December 31, 2021, and 2020, respectively.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, cash items in process of collection, amounts due from other banks, interest-bearing deposits held with other financial institutions, and federal funds sold. The carrying amount of these instruments is considered a reasonable estimate of fair value.

The Company maintains its cash in deposit accounts, the balance of which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Management believes the Company is not exposed to any significant credit risk on cash and cash equivalents.

Securities

Debt securities classified as available for sale are those debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on factors including significant movements in interest rates, changes in the maturity mix of the Company's assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Debt securities available for sale are carried at fair value, with unrealized gains and losses reported in other comprehensive income (loss), net of taxes.

Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. The amortization period for certain callable debt securities held at a premium are amortized to the earliest call date, while discounts on debt securities are amortized to maturity. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Debt securities available for sale are not within the scope of CECL, however, the accounting for credit losses on these securities is affected by ASC 326-30. A debt security available for sale is impaired if the fair value of the security declines below its amortized cost basis. To determine the appropriate accounting, the Company must first determine if it intends to sell the security or if it is more likely than not that it will be required to sell the security before the fair value increases to at least the amortized cost basis. If either of those selling events is expected, the Company will write down the amortized cost basis of the security to its fair value. This is achieved by writing off any previously recorded allowance, if applicable, and recognizing any incremental impairment through earnings. If the Company neither intends to sell the security, nor believes it more likely than not will be required to sell the security, before the fair value recovers to the amortized cost basis, the Company must determine whether any of the decline in fair value has resulted from a credit loss, or if it is entirely the result of noncredit factors.

The Company considers the following factors in assessing whether the decline is due to a credit loss:

●

Extent to which the fair value is less than the amortized cost basis

●

Adverse conditions specifically related to the security, an industry, or a geographic area (for example, changes in the financial condition of the issuer of the security, or in the case of an asset-backed debt security, in the financial condition of the underlying loan obligors)

●

Payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future

●

Failure of the issuer of the security to make scheduled interest or principal payments

●

Any changes to the rating of the security by a rating agency

Impairment related to a credit loss must be measured using the discounted cash flow method. Credit loss recognition is limited to the fair value of the security. Impairment is recognized by establishing an ACL through provision for credit losses. Impairment related to noncredit factors is recognized in AOCI, net of applicable taxes. The Company did not recognize any impairment in 2021, 2020, or 2019.

Accrued interest receivable for debt securities available for sale totaled $11.4 million at December 31, 2021, and is excluded from the estimate of credit losses. Accrued interest receivable is reported in other assets on the Consolidated Balance Sheets.

Debt securities classified as held to maturity were those debt securities that the Company had the intent and ability to hold to maturity and were carried at amortized cost. The Company no longer carries debt securities classified as held to maturity.

Equity securities are carried at fair value with changes in fair value recognized in earnings.

Loans held for sale

Loans held for sale include mortgage loans which the Company intends to sell to investors and/or the secondary mortgage market. Loans held for sale are recorded at fair value, as the Company has elected to apply the fair value method of accounting, with changes in fair value recognized in earnings. Fair value adjustments are recorded as an adjustment to mortgage revenues. The fair value of loans held for sale is measured using observable quoted market prices, contract prices, or market price equivalents, consistent with those used by other market participants. Direct loan origination fees and costs related to loans accounted for at fair value are recognized when earned.

Loan servicing

Servicing assets are recognized when servicing rights are acquired or retained through the sale of mortgage and government-guaranteed commercial loans. The unpaid principal balances of loans serviced by the Company for the benefit of others totaled $1.8 billion and are not included in the accompanying Consolidated Balance Sheets. Servicing rights are initially recorded at fair value which is determined using a valuation model that calculates the present value of estimated future net servicing income. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. The amortization of mortgage servicing rights is included in mortgage revenue. The amortization of government-guaranteed commercial loans is included in other income.

Servicing rights are periodically evaluated for impairment based on the fair value of those rights as compared to book value. Fair values are estimated using discounted cash flows based on expected prepayment rates and other inputs. For purposes of measuring impairment, servicing rights are stratified by one or more predominant characteristics of the underlying loans. A valuation allowance is recognized in the amount by which the amortized cost of the rights for each stratum exceeds its fair value, if any. If the Company later determines that all or a portion of the impairment no longer exists for a particular group of loans, a reversal of the allowance may be recorded in current period earnings. The Company had an insignificant amount of impairment recorded at December 31, 2021, and had $0.6 million impairment recorded at December 31, 2020.

Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned.

Portfolio loans

Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, are reported at the principal balance outstanding, net of purchase premiums and discounts, or net deferred origination fees or costs, charge-offs, and the ACL.

Loan origination fees, net of certain direct loan origination costs, are deferred and the net amount is amortized as an adjustment of the related loan’s yield. The Company amortizes the net amount over the contractual life of the related loan.

Interest income is accrued daily on outstanding loan balances. 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 provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. Past due status is based on the contractual terms of the loan.

Interest accrued but not collected for loans that are placed on non-accrual status or charged-off is reversed against interest income. The interest on non-accrual loans is accounted for on the cost-recovery method, until returned to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

At December 31, 2021, the Company had $76.9 million in PPP loans outstanding, with an amortized cost of $75.0 million. In comparison, at December 31, 2020, the Company had $451.5 million in PPP loans outstanding, with an amortized cost of $446.4 million. The Company received fees totaling $20.1 million and $25.4 million, and incurred incremental direct origination costs of $4.2 million and $5.1 million, for the years ended December 31, 2021, and 2020, respectively, both of which have been deferred and are being amortized over the contractual life of these loans, subject to prepayment. The Company recognized $14.0 million and $15.2 million in net interest income for fees, net of deferred cost, during the years ended December 31, 2021, and 2020, respectively. As of December 31, 2021, $1.9 million in fees, net of deferred costs, remained to be recognized. PPP loans contain a forgiveness feature for funds spent on covered expenses, including both principal and accrued interest. Any remaining balance after loan forgiveness maintains a 100% government guarantee for the remaining term of the loan. The Company has implemented an online portal designed to streamline the PPP loan forgiveness process by providing a tool that borrowers can use to apply for forgiveness. As these loans are forgiven, the recognition of these fees and direct origination costs will be accelerated. As of December 31, 2021, the Company had received approximately $999.0 million in borrower loan forgiveness from the SBA and had submitted forgiveness applications to the SBA on behalf of borrowers for another $7.1 million.

Troubled debt restructurings

The Company’s loan portfolio includes certain loans that have been modified in a TDR, where concessions have been granted to borrowers who have experienced financial difficulties. The Company will restructure a loan for its customer after evaluating whether the borrower is able to meet the terms of the loan over the long term, though unable to meet the terms of the loan in the near term due to individual circumstances.

The Company considers the customer’s past performance, previous and current credit history, the individual circumstances surrounding the customer’s current difficulties, and the customer’s plan to meet the terms of the loan in the future prior to restructuring the terms of the loan. Generally, restructurings consist of short-term interest rate relief, short-term principal payment relief, short-term principal and interest payment relief, or forbearance (debt forgiveness). A restructured loan that exceeds 90 days past due or is placed on non-accrual status, is classified as non-performing.

All TDRs are individually evaluated for purposes of assessing the adequacy of the ACL and for financial reporting purposes. TDRs are evaluated using present value of the expected future cash flows discounted at the loan’s original effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. If the Company determines that the fair value of the TDR is less than the recorded investment in the loan, impairment is recognized through a charge to the ACL in the period of the modification and in periods subsequent to the modification.

Modified loans with payment deferrals that fall under the CARES Act or revised Interagency Statement that suspended requirements under GAAP related to TDR classifications are not included in the Company’s TDR totals.

Assets purchased with credit deterioration

On January 1, 2020, First Busey adopted ASC 326 using the prospective transition approach for financial assets PCD that were previously classified as PCI and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. In accordance with ASC 326, the amortized cost basis of PCD assets were adjusted to reflect an ACL for any remaining credit discount. Subsequent changes in expected cash flows will be adjusted through the ACL. The noncredit discount will be accreted into interest income at the effective interest rate as of January 1, 2020.

Subsequent to the adoption of ASC 326, acquired loans are separated into two categories based on the credit risk characteristics of the underlying borrowers as either PCD, for loans which have experienced more than insignificant credit deterioration since origination, or all other loans. At the date of acquisition, an ACL on PCD loans is determined and netted against the amortized cost basis of the individual loans. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. The ACL on PCD loans is recorded in the acquisition accounting and no provision for credit losses is recognized at the acquisition date. Subsequent changes to the ACL are recorded through provision expense. For all other loans, an ACL is established immediately after the acquisition through a charge to the provision for credit losses.

Allowance for credit losses

The ACL is a significant estimate in the Company’s Consolidated Financial Statements, affecting both earnings and capital. The ACL is a valuation account that is deducted from the portfolio loans’ amortized cost bases to present the net amount expected to be collected on the portfolio loans. Portfolio loans are charged off against the ACL when management believes the uncollectibility of a loan balance is confirmed. Recoveries will be recognized up to the aggregate amount of previously charged-off balances. The ACL is established through provision for credit loss expense charged to income.

A loan’s amortized cost basis is comprised of the unpaid principal balance of the loan, accrued interest receivable, purchase premiums or discounts, and net deferred origination fees or costs. The Company has estimated its allowance on the amortized cost basis, exclusive of government guaranteed loans and accrued interest receivable. The Company writes-off uncollectible accrued interest receivable in a timely manner and has elected to not measure an allowance for accrued interest receivable. The Company presents the aggregate amount of accrued interest receivable for all financial instruments in other assets on the Consolidated Balance Sheets and the balance of accrued interest receivable is disclosed in “Note 18. Fair Value Measurements.”

Our methodology influences, and is influenced by, the Company’s overall credit risk management processes. The ACL is managed in accordance with GAAP to provide an adequate reserve for expected credit losses that is reflective of management’s best estimate of what is expected to be collected. The ACL is measured on a collective pool basis when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis.

The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the amortized cost basis. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions such as changes in unemployment rates, property values, and other relevant factors. The calculation also contemplates that the Company may not be able to make or obtain such forecasts for the entire life of the financial assets and requires a reversion to historical credit loss information. The Company uses four quarters as its reasonable and supportable forecast period. Due to rapidly changing forecasts around the impact of COVID-19, the Company does not believe it has the current ability to incorporate reasonable and supportable forecasts into its CECL models extending beyond four quarters.

Ongoing impacts of the CECL methodology will be dependent upon changes in economic conditions and forecasts, originated and acquired loan portfolio composition, credit performance trends, portfolio duration, and other factors.

Premises and equipment, net

Land is carried at cost less accumulated depreciation of depreciable land improvements. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. The estimated useful lives for premises and equipment are:


Asset Description	Estimated Useful Life
Buildings and improvements	3 — 40	years
Furniture and equipment	3 — 10	years

Leases

A determination is made at inception if an arrangement contains a lease. For arrangements containing leases, the Company recognizes leases on the Consolidated Balance Sheets as right of use assets and corresponding lease liabilities. Lease-related assets, or right of use assets, are recognized on the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs, and lease incentives received. Lease-related liabilities are recognized at the present value of the remaining contractual fixed lease payments, discounted using our incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred.

ASC 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. If not readily determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the Company used a borrowing rate that corresponded to the remaining lease term.

The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If, at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of its right of use assets and lease liabilities.

Long-lived assets

Long-lived assets, including premises and equipment, right of use assets, and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss is recognized when estimated undiscounted future cash flows from operations of the asset are less than the carrying value of the asset. Cash flows used for this analysis are those directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of the asset. An impairment loss would be measured by the amount by which the carrying value of the asset exceeds its fair value.

Other real estate owned and other repossessed assets

OREO and other repossessed assets represent properties and other assets acquired through foreclosure or other proceedings in settlement of loans. OREO and other repossessed assets are recorded at the fair value of the property or asset, less estimated costs of disposal, which establishes a new cost basis. Any adjustment to fair value at the time of transfer to OREO or other repossessed assets is charged to the ACL. OREO property and other repossessed assets are evaluated regularly to ensure the recorded amount is supported by its current fair value, and valuation allowances to reduce the carrying amount to fair value less estimated costs to dispose are recorded, as necessary. OREO and other repossessed assets are included in other assets on the Consolidated Balance Sheets. Revenue, expense, gains, and losses from the operations of foreclosed assets are included in earnings.

Goodwill and other intangibles

Goodwill represents the excess of the consideration transferred in a business combination over the fair value of the net assets acquired. Goodwill is not amortized but is subject to at least annual impairment assessments. The Company has established December 31 as the annual impairment assessment date. As part of this analysis, each reporting unit's carrying value is compared to its fair value.

The Company estimates the fair value of its reporting units as of the measurement date utilizing valuation methodologies including comparable company analysis and precedent transaction analysis. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. There was no impairment as of December 31, 2021, or 2020. See “Note 7. Goodwill and Other Intangible Assets” for further discussion.

Other intangible assets consist of core deposit and acquired customer relationship intangible assets arising from acquisitions and are amortized over their estimated useful lives.

Cash surrender value of bank owned life insurance

The Company has purchased, or acquired through acquisitions, life insurance policies on certain executives and senior officers. Life insurance is recorded at its cash surrender value, which estimates its fair value.

The Company maintains a liability for post-employment benefits promised to an employee based on an arrangement between the Company and an employee. In an endorsement split-dollar life insurance arrangement, the employer owns and controls the policy, and the employer and employee split the life insurance policy’s cash surrender value and/or death benefits. If the employer agrees to maintain a life insurance policy during the employee’s retirement, the present value of the cost of maintaining the insurance policy would be accrued over the employee’s active service period. Similarly, if the employer agrees to provide the employee with a death benefit, the present value of the death benefit would be accrued over the employee’s active service period. The Company has an accrued liability of $5.5 million as of December 31, 2021, included in other liabilities, for these arrangements, compared with $5.6 million as of December 31, 2020.

Other asset investments

The Company has invested in certain tax-advantaged projects promoting affordable housing, new markets, and historic rehabilitation. These investments are designed to generate returns primarily though the realization of federal and state income tax credits and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. In addition, the Company has private equities, which are primarily small business investment companies in the financial technology, agricultural, environmental, and affordable housing preservation markets. These investments are considered to be variable interest entities, and are accounted for under the equity method or deferral method, as appropriate. The Company is not required to consolidate variable interest entities in which it has concluded it does not have a controlling financial interest, and is not the primary beneficiary.

The following table summarizes the impact of the Company’s other asset investments on our Consolidated Balance Sheets for the periods indicated (dollars in thousands):


		As of December 31,
	Location	2021		2020
Other asset investments
Funded investments	Other assets	$	37,417		20,368
Unfunded investments	Other assets		52,765		16,776
Other asset investments		$	90,182		37,144

Unfunded investment obligations	Other liabilities	$	(52,765)	$	(16,776)

Further, the Company owns Visa Class B shares, recorded at a nominal carrying value. These shares are subject to certain transfer restrictions currently and will be convertible into Visa Class A shares upon final resolution of certain litigation matters involving Visa.

Transfers of financial assets

Transfers of financial assets are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (i) the assets have been isolated from the Company, (ii) the transferee obtains the right to pledge or exchange the assets it receives, and no condition both constrains the transferee from taking advantage of its right to pledge or exchange and provides more than a trivial benefit to the transferor, and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets.

Income taxes

The Company is subject to income taxes in U.S. federal and various state jurisdictions. The Company and its subsidiaries file consolidated federal and state income tax returns with each subsidiary computing its taxes on a separate entity basis. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state, or local tax examinations by tax authorities for the years before 2017.

Under GAAP, a valuation allowance is required to be recognized if it is more likely than not that the deferred tax assets will not be realized. The determination of the recoverability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions.

Management believes that it is more likely than not that the deferred tax assets included in the accompanying Consolidated Financial Statements will be fully realized. The Company determined that no valuation allowance was required as of December 31, 2021, or 2020.

Positions taken in tax returns may be subject to challenge upon examination by the taxing authorities. Uncertain tax positions are initially recognized in the Consolidated Financial Statements when it is more likely than not the position will not be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in operating expenses. The Company had no accruals for payments of interest and penalties at December 31, 2021, or 2020.

At December 31, 2021, the Company was not under examination by any tax authority.

Treasury Stock

Treasury stock acquired is recorded at cost. Treasury stock issued is valued based on the “first-in, first-out” method. Gains and losses on issuance are recorded as increases or decreases to additional paid-in capital.

Stock-based employee compensation

The 2020 Equity Plan was approved by stockholders at the 2020 Annual Meeting of Stockholders. A description of the 2020 Equity Plan can be found in the Company’s Proxy Statement for the 2020 Annual Meeting of Stockholders filed on April 9, 2020. The 2020 Equity Plan replaces the 2010 Equity Incentive Plan and the First Community 2016 Equity Incentive Plan, which, from time to time, the Company used to grant equity awards to legacy employees of First Community. Under the terms of the 2020 Equity Plan, the Company has granted RSU, DSU and PSU awards.

The Company’s equity incentive plans are designed to encourage ownership of its common stock by its employees and directors, to provide additional incentive for them to promote the success of the Company’s business, and to attract and retain talented personnel. All of the Company’s employees and directors and those of its subsidiaries are eligible to receive awards under the plans.

The Company grants RSU awards to members of management periodically throughout the year. Each RSU is equivalent to one share of the Company’s common stock. These units have requisite service periods ranging from one to five years, subject to accelerated vesting upon eligible retirement from the Company. Recipients earn quarterly dividend equivalents on their respective units which entitle the recipients to additional units. Therefore, dividends earned each quarter compound based upon the updated unit balances.

The Company grants DSU awards, which are RSU awards with a deferred settlement date, to its directors and advisory directors. Each DSU is equivalent to one share of the Company’s common stock. DSUs vest over a one-year period following the grant date. These units generally are subject to the same terms as RSUs under the Company’s 2020 Equity Plan, except that, following vesting, settlement occurs within 30 days following the earlier of separation from the board or a change in control of the Company. After vesting and prior to delivery, these units will continue to earn dividend equivalents.

The Company also grants PSU awards to members of management periodically throughout the year. Each PSU is equivalent to one share of the Company’s common stock. The number of units that ultimately vest will be determined based on the achievement of market or other performance goals, subject to accelerated service-based vesting conditions upon eligible retirement from the Company.

The Company has outstanding stock options assumed from acquisitions.

In 2021, the stockholders of First Busey approved the 2021 ESPP, and since the purchase price under the plan is 85% of the fair market value of a share of common stock (a 15% discount to the market price), the plan is considered to be a compensatory plan under current accounting guidance. Therefore, the entire amount of the discount is recognized in salaries, wages, and employee benefits on the Consolidated Statements of Income.

See “Note 14. Stock-based Compensation” for further discussion.

Segment disclosure

Operating segments are components of a business that (i) engage in business activities from which the component may earn revenues and incur expenses; (ii) have operating results that are reviewed regularly by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance; and (iii) for which discrete financial information is available. The Company’s operations are managed along three operating segments consisting of Banking, FirsTech, and Wealth Management. See “Note 21. Operating Segments and Related Information” for further discussion.

Business Combinations

Business combinations are accounted for under ASC Topic 805, Business Combinations, using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their estimated fair values as of that date. To determine the fair values, the Company may utilize third-party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques. Under the acquisition method of accounting, the Company will identify the acquirer and the closing date and apply applicable recognition principles.

Operating results generated from acquired businesses are included with the Company’s results of operations starting from each date of acquisition. Acquisition related costs are costs the Company incurs to effect a business combination. Those costs may include legal, accounting, valuation, other professional or consulting fees, system conversions, and marketing costs. The Company accounts for acquisition related costs as expenses in the periods in which the costs are incurred and the services are received. Costs that the Company expects, but is not obligated to incur in the future, to effect its plan to exit an activity of an acquiree or to terminate the employment of an acquiree’s employees are not liabilities at the acquisition date. Instead, the Company recognizes these costs in its post-combination Consolidated Financial Statements in accordance with other applicable accounting guidance.

Derivative Financial Instruments

The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Additionally, the Company enters into derivative financial instruments, including interest rate lock commitments issued to residential loan customers for loans that will be held for sale, forward sales commitments to sell residential mortgage loans to investors, and interest rate swaps with customers and other third parties.

Interest Rate Swaps Designated as Cash Flow Hedges

The Company entered into derivative instruments designated as cash flow hedges. For a derivative instrument that is designated and qualifies as a cash flow hedge, the change in fair value of the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Changes in fair value of components excluded from the assessment of effectiveness are recognized in current earnings.

Interest Rate Swaps Not Designated as Hedges

The Company may offer derivative contracts to its customers in connection with their risk management needs. The Company manages the risk associated with these contracts by entering into an equal and offsetting derivative with a third-party dealer. These derivatives generally worked together as an economic interest rate hedge, but the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred.

Interest Rate Lock Commitments

Interest rate lock commitments that meet the definition of derivative financial instruments under ASC Topic 815, Derivatives and Hedging, are carried at their fair values in other assets or other liabilities in the Consolidated Financial Statements, with changes in the fair values of the corresponding derivative financial assets or liabilities recorded as either a charge or credit to current earnings during the period in which the changes occurred.

Forward Sales Commitments

The Company economically hedges mortgage loans held for sale and interest rate lock commitments issued to its residential loan customers related to loans that will be held for sale by obtaining corresponding best-efforts forward sales commitments with an investor to sell the loans at an agreed-upon price at the time the interest rate locks are issued to the customers. Forward sales commitments that meet the definition of derivative financial instruments under ASC Topic 815, Derivatives and Hedging, are carried at their fair values in other assets or other liabilities in the Consolidated Financial Statements. While such forward sales commitments generally served as an economic hedge to mortgage loans held for sale and interest rate lock commitments, the Company did not designate them for hedge accounting treatment. Changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred.

Risk Participation Agreements

The Company has entered into a risk participation agreement to manage the credit risk of its derivative position. This agreement transfers counterparty credit risk related to an interest rate swap to another financial institution. In this type of transaction, the Company (purchaser) has a swap agreement with a customer. The Company then enters into a risk participation agreement with a counterparty (seller), under which the counterparty receives a fee to accept a portion of the credit risk. If the customer defaults on the swap contract, the counterparty to the risk participation agreement must reimburse the Company for the counterparty's percentage of the positive fair value of the customer swap as of the default date. If the customer swap has a negative fair value, the counterparty has no reimbursement requirements. If the customer defaults on the swap contract and the counterparty (seller) fulfills its payment obligations under the risk participation agreement, the seller is entitled to a pro rata share of the Company’s claim against the customer under the terms of the swap agreement.

Off-balance-sheet arrangements

The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheets. The Company’s exposure to credit loss is represented by the contractual amount of those commitments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

Commitments to extend credit are agreements to lend to a customer as long as no condition established in the contract has been violated. These commitments are generally at variable interest rates and generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. These commitments may be secured based on management’s credit evaluation of the borrower.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer’s obligation to a third-party. Those guarantees are primarily issued to support public and private borrowing arrangements, including bond financing and similar transactions, and primarily have terms of one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds collateral, which may include accounts receivable, inventory, property and equipment, and income producing properties, supporting those commitments if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third-party, the Company would be required to fund the commitment. If the commitment is funded, the Company would be entitled to seek recovery from the customer.

The Company estimates expected credit losses for off-balance sheet arrangements over the contractual period in which it is exposed to credit risk via a present contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the issuer. To be considered unconditionally cancelable for accounting purposes, the Company must have the ability to, at any time, with or without cause, refuse to extend credit under the commitment. Off-balance-sheet credit exposure segments share the same risk characteristics as portfolio loans. The Company incorporates a probability of funding and utilizes the ACL loss rates to calculate the reserve. The reserve for off-balance-sheet credit exposure is carried on the Consolidated Balance Sheets in other liabilities rather than as a component of the ACL. The reserve for off-balance-sheet credit exposure is adjusted as a provision for off-balance-sheet credit exposure reported as a component of noninterest expense in the accompanying Consolidated Statements of Income. Liabilities recorded as reserves for the Company’s off-balance sheet credit exposure under these commitments was $6.5 million as of December 31, 2021, and was $7.3 million as of December 31, 2020.

Fair value of financial instruments

Fair value of financial instruments is estimated using relevant market information and other assumptions, as more fully disclosed in “Note 18. Fair Value Measurements.” Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

Revenue

ASC 606 outlines a single model for companies to use in accounting for revenue arising from contracts with customers and supersedes most prior revenue recognition guidance, including industry-specific guidance. ASC 606 requires that companies recognize revenue based on the value of transferred goods or services as they occur in the contract and establishes additional disclosures. The Company’s revenue is comprised of net interest income, which is explicitly excluded from the scope of ASC 606, and noninterest income. The Company has evaluated its noninterest income and the nature of its contracts with customers and determined that further disaggregation of revenue beyond what is presented in the accompanying Consolidated Financial Statements is not necessary. The Company satisfies its performance obligations on its contracts with customers as services are rendered so there is limited judgment involved in applying ASC 606 that affects the determination of the timing and amount of revenue from contracts with customers.

Descriptions of the Company’s primary revenue generating activities that are within ASC 606, and are presented in the accompanying Consolidated Statements of Income as components of noninterest income, include wealth management fees, payment technology solutions, and fees for customer services.

Wealth Management Fees

Wealth management fees represent fees due from wealth management customers as consideration for managing the customers' assets. Wealth management and trust services include custody of assets, investment management, fees for trust services, and other fiduciary activities. Also included are fees received from a third-party broker-dealer as part of a revenue sharing agreement for fees earned from customers that the Company refers to the third party. Revenue is recognized when the performance obligation is completed, which is generally monthly.

Payment Technology Solutions

Payment technology solutions revenue represents transaction-based fees for technology-driven payment solutions primarily for walk-in, lockbox, interactive voice recognition, and online bill payments through the Company’s subsidiary, FirsTech. Revenue is recognized when the performance obligation is completed, which is generally monthly.

Fees for Customer Services

Fees for customer services consist of time-based revenue from service fees for account maintenance, item-based revenue from fee-based activity, and transaction-based fee revenue. Revenue is recognized when the performance obligation is completed, which is generally monthly for account maintenance services or when a transaction has been completed. Payments for such performance obligations are generally received at the time the performance obligations are satisfied.

Reclassifications

Reclassifications have been made to certain prior year account balances, with no effect on net income or stockholders’ equity, to be consistent with the classifications adopted as of and for the year ended December 31, 2021.

Subsequent events

The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the Consolidated Financial Statements included in this Annual Report on Form 10-K were issued. There were no significant subsequent events for the year ended December 31, 2021, through the filing date of these Consolidated Financial Statements.

Impact of recently adopted accounting standards

ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815).” ASU 2020-01 clarifies the interaction between ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and the ASU on equity method investments. ASU 2016-01 provides companies with an alternative to measure certain equity securities without a readily determinable fair value at cost, minus impairment, if any, unless an observable transaction for an identical or similar security occurs. ASU 2020-01 clarifies that for purposes of applying the Topic 321 measurement alternative, an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting under Topic 323, immediately before applying or upon discontinuing the equity method. In addition, the new ASU provides direction that a company should not consider whether the underlying securities would be accounted for under the equity method or the fair value option when it is determining the accounting for certain forward contracts and purchased options, upon either settlement or exercise. The amendments in this update become effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements.

ASU 2021-06 “Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants” amends certain disclosure requirements for banks and bank holding companies, as well as savings and loan organizations, by 1) simplifying loan category disclosure requirements, 2) requiring separate disclosure of the amounts of total loans, related allowance for losses, and unearned income, and 3) when a threshold is met, requires disclosure of the aggregate amount of loans to directors, executive officers, or principal holders of equity securities, or to any associate of such persons, including an explanation of changes in the amount of such loans, as well as disclosure of such loans that are past due, nonaccrual, or TDRs. This update was effective upon issuance on August 9, 2021, and applies prospectively. Adoption of this standard did not have a material impact on our results of operations or our consolidated financial statements.

Recently issued accounting standards

ASU 2021-04 “Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options” clarifies how an issuer should account for modifications or exchanges of equity-classified written call options (i.e. a warrant to purchase the issuer’s common stock). This accounting standard requires the issuer to treat a modification of an equity-classified warrant that does not cause the warrant to become liability-classified as an exchange of the original warrant for a new warrant. This guidance applies whether the modification is structured as an amendment to the terms and conditions of the warrant or as termination of the original warrant and issuance of a new warrant. This guidance is effective beginning January 1, 2022, and will be applied on a prospective basis. Adoption of this standard will not have a material impact on our financial position or results of operations.

ASU 2021-05 “Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments” amends the lessor’s classification of certain leases under ASC 842. Under this updated guidance, leases that would otherwise be classified as a sales-type or direct financing lease must be classified by a lessor as an operating lease when the following conditions are met: 1) the contract includes variable lease payments that do not depend on an index or rate and 2) classification as a sales-type or direct financing lease would result in recognition of a selling loss at lease commencement. This guidance is effective beginning January 1, 2022, and will be applied on a prospective basis. Adoption of this standard will not have a material impact on our financial position or results of operations.

ASU 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” requires measurement and recognition in accordance with Topic 606 for contract assets and contract liabilities acquired in a business combination. This update is effective beginning January 1, 2023, and may be adopted early. This standard applies prospectively to all business combinations that occur on or after the date it is adopted and, if applicable, retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application. We have not yet selected an adoption date and we are currently evaluating the effect on our financial position and results of operations.

ASU 2021-10 “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” establishes disclosure requirements for transactions with a government that have been accounted for by analogizing to a grant or contribution accounting model. Disclosures required under this standard include 1) the types of transactions, 2) the accounting for those transactions, and 3) the effect of those transactions on the consolidated financial statements. This update is effective for annual periods beginning January 1, 2022, and applies prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application. Adoption of this standard will not have a material impact on our financial position or results of operations.

Acquisitions

12 Months Ended

Dec. 31, 2021

Acquisitions

Acquisitions

Note 2. Acquisitions

Cummins-American Corp.

Effective May 31, 2021, the Company completed its acquisition of CAC, the holding company for GSB. The partnership has enhanced the Company’s existing deposit, commercial banking, and wealth management presence in the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area. GSB’s results of operations were included in the Company’s results of operations beginning June 1, 2021. First Busey operated GSB as a separate banking subsidiary until August 14, 2021, when it was merged with and into Busey Bank. At that time, all GSB banking centers became branches of Busey Bank.

Under the terms of the definitive agreement, each share of CAC common stock issued and outstanding as of the effective date was converted into the right to receive 444.4783 shares of First Busey common stock and $14,173.96 in cash, which reflects adjustments made to the cash consideration in accordance with the terms of the definitive agreement. The fair value of the common stock of First Busey issued as part of the consideration paid to the holders of CAC common stock was determined on the basis of the closing price of First Busey’s common shares on May 28, 2021, the last trading day immediately preceding the acquisition date of May 31, 2021. As additional consideration provided to CAC’s shareholders in the merger, CAC paid a special dividend to its shareholders in the amount of $60.0 million, or $12,087.58 per share of CAC common stock, on May 28, 2021.

This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged was recorded at estimated fair values on the date of acquisition. Fair values are subject to refinement for up to one year after the closing date as additional information regarding the closing date fair values becomes available. For the year ended December 31, 2021, $0.4 million of fair value adjustments were recorded as more information became available regarding unrecorded liabilities. The Company does not expect any further adjustments will be necessary.

As the total consideration paid for CAC exceeded the estimated fair value of net assets acquired, goodwill of $6.3 million was recorded as a result of the acquisition. The amount of goodwill recognized as a result of this transaction is expected to be fully tax deductible for federal income tax purposes in accordance with the Company’s election pursuant to Section 338(h)(10) of the Internal Revenue Code. Goodwill recorded for this transaction reflects synergies expected from the acquisition and expansion within the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area, and was assigned to the Banking operating segment.

First Busey incurred $13.6 million in pre-tax expenses related to the acquisition of CAC for the year ended December 31, 2021, primarily for compensation expense, data processing expense, and professional fees, which are reported as components of noninterest expense in the accompanying Consolidated Statements of Income.

Estimated fair values of the assets acquired and liabilities assumed, as well as the fair value of consideration transferred, were as follows (dollars in thousands):


	CAC
	May 31, 2021
Assets acquired
Cash and cash equivalents	$	298,637
Securities		702,367
Portfolio loans, net of ACL		430,470
Premises and equipment		17,034
Other intangible assets		17,340
Mortgage servicing rights		629
Other assets		8,176
Total assets acquired		1,474,653

Liabilities assumed
Deposits		1,315,671
Other borrowings		16,651
Other liabilities		19,205
Total liabilities assumed		1,351,527

Net assets acquired	$	123,126

Consideration paid:
Cash	$	70,358
Common stock		59,105
Total consideration paid	$	129,463

Goodwill	$	6,337

The fair value of PCD financial assets was $60.5 million on the date of acquisition. Gross contractual amounts receivable relating to the PCD financial assets was $65.2 million. The Company estimated, on the date of acquisition, that $4.2 million of the contractual cash flows specific to the PCD financial assets will not be collected.

Debt Securities

12 Months Ended

Dec. 31, 2021

Debt Securities

Debt Securities

Note 3. Debt Securities

The table below provides the amortized cost, unrealized gains and losses, and fair values of debt securities, summarized by major category (dollars in thousands):


	As of December 31, 2021
	Amortized		Unrealized				Fair
	Cost		Gross Gains		Gross Losses		Value
Debt securities available for sale
U.S. Treasury securities	$	166,768	$	41	$	(1,047)	$	165,762
Obligations of U.S. government corporations and agencies		37,579		891		—		38,470
Obligations of states and political subdivisions		300,602		7,760		(1,493)		306,869
Asset-backed securities		492,055		295		(164)		492,186
Commercial mortgage-backed securities		625,339		3,425		(13,766)		614,998
Residential mortgage-backed securities		2,095,104		8,889		(34,680)		2,069,313
Corporate debt securities		296,076		1,081		(3,504)		293,653
Total debt securities available for sale	$	4,013,523	$	22,382	$	(54,654)	$	3,981,251


	As of December 31, 2020
	Amortized		Unrealized				Fair
	Cost		Gross Gains		Gross Losses		Value
Debt securities available for sale
U.S. Treasury securities	$	27,481	$	356	$	—	$	27,837
Obligations of U.S. government corporations and agencies		67,406		2,162		(49)		69,519
Obligations of states and political subdivisions		292,940		11,779		(8)		304,711
Commercial mortgage-backed securities		408,716		10,212		(312)		418,616
Residential mortgage-backed securities		1,344,047		24,571		(303)		1,368,315
Corporate debt securities		70,953		1,237		(1)		72,189
Total debt securities available for sale	$	2,211,543	$	50,317	$	(673)	$	2,261,187

Amortized cost and fair value of debt securities, by contractual maturity or pre-refunded date, are shown below. Mortgages underlying mortgage-backed securities and asset-backed securities may be called or prepaid; therefore, actual maturities could differ from the contractual maturities. All mortgage-backed securities were issued by U.S. government corporations and agencies (dollars in thousands):


	As of December 31, 2021
	Amortized		Fair
	Cost		Value
Debt securities available for sale
Due in one year or less	$	129,260	$	129,848
Due after one year through five years		564,284		563,473
Due after five years through ten years		356,782		362,057
Due after ten years		2,963,197		2,925,873
Total debt securities available for sale	$	4,013,523	$	3,981,251

Realized gains and losses related to sales and calls of debt securities available for sale are summarized as follows (dollars in thousands):


	Years Ended December 31,
	2021		2020		2019
Realized gains and losses on sales of debt securities
Gross security gains	$	543	$	1,732	$	1,318
Gross security (losses)		(514)		(8)		(585)
Net gains (losses) on sales of debt securities⁽¹⁾	$	29	$	1,724	$	733

(1)

Net gains (losses) on sales of securities reported on the Consolidated Statements of Income include the sale of equity securities, excluded in this table.

Debt securities with carrying amounts of $708.9 million on December 31, 2021, and $628.0 million on December 31, 2020, were pledged as collateral for public deposits, securities sold under agreements to repurchase, and for other purposes as required.

The following information pertains to debt securities with gross unrealized losses, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (dollars in thousands):


	As of December 31, 2021
	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Debt securities available for sale
U.S. Treasury securities	$	163,653	$	(1,047)	$	—	$	—	$	163,653	$	(1,047)
Obligations of states and political subdivisions		92,680		(1,493)		—		—		92,680		(1,493)
Asset-backed securities		89,983		(164)		—		—		89,983		(164)
Commercial mortgage-backed securities		389,078		(10,186)		85,905		(3,580)		474,983		(13,766)
Residential mortgage-backed securities		1,700,187		(33,453)		20,538		(1,227)		1,720,725		(34,680)
Corporate debt securities		241,153		(3,504)		—		—		241,153		(3,504)
Total temporarily impaired securities	$	2,676,734	$	(49,847)	$	106,443	$	(4,807)	$	2,783,177	$	(54,654)


	As of December 31, 2020
	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Debt securities available for sale
Obligations of U.S. government corporations and agencies	$	—	$	—	$	4,957	$	(49)	$	4,957	$	(49)
Obligations of states and political subdivisions		762		(8)		—		—		762		(8)
Commercial mortgage-backed securities		129,655		(312)		—		—		129,655		(312)
Residential mortgage-backed securities		89,997		(300)		139		(3)		90,136		(303)
Corporate debt securities		1,499		(1)		—		—		1,499		(1)
Total temporarily impaired securities	$	221,913	$	(621)	$	5,096	$	(52)	$	227,009	$	(673)

No ACL was recorded in relation to the Company’s debt securities. The Company’s debt security portfolio consisted of 1,252 securities as of December 31, 2021, compared to 1,114 securities as of December 31, 2020. The number of debt securities in the investment portfolio in an unrealized loss position was 373 representing an unrealized loss of 1.4% of the aggregate fair value of debt securities as of December 31, 2021, compared to 23 securities representing an unrealized loss of 0.03% of the aggregate fair value of debt securities as of December 31, 2020. Unrealized losses were related to changes in market interest rates and market conditions that do not represent credit-related impairments. Furthermore, the Company does not intend to sell such securities and it is more likely than not that the Company will recover the amortized cost prior to being required to sell the debt securities. Full collection of the amounts due according to the contractual terms of the debt securities is expected; therefore, the impairment related to noncredit factors is recognized in AOCI, net of applicable taxes. As of December 31, 2021, the Company did not hold general obligation bonds of any single issuer, the aggregate of which exceeded 10% of the Company’s stockholders’ equity.

Portfolio Loans

12 Months Ended

Dec. 31, 2021

Portfolio Loans

Portfolio loans

Note 4. Portfolio Loans

Distributions of portfolio loans were as follows (dollars in thousands):


	As of December 31,
	2021		2020
Portfolio loans
Commercial	$	1,943,886	$	2,014,576
Commercial real estate		3,119,807		2,892,535
Real estate construction		385,996		461,786
Retail real estate		1,512,976		1,407,852
Retail other		226,333		37,428
Total portfolio loans	$	7,188,998	$	6,814,177

ACL		(87,887)		(101,048)
Portfolio loans, net	$	7,101,111	$	6,713,129

Net deferred loan origination costs included in the balances above were $9.0 million as of December 31, 2021, compared to $2.4 million as of December 31, 2020. Net accretable purchase accounting adjustments included in the balances above reduced loans by $8.8 million as of December 31, 2021, and by $10.9 million as of December 31, 2020. Commercial balances include loans originated under the PPP with an amortized cost of $75.0 million, as of December 31, 2021, compared to $446.4 million in loans originated under PPP included in the December 31, 2020, balance.

The Company purchased retail real estate loans totaling $32.2 million during the year ended December 31, 2021, compared to $43.9 million of retail real estate loan purchases during the year ended December 31, 2020.

Risk Grading

The Company 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 the Company’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 the Company 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 $1.0 million or less are usually processed through an expedited underwriting process. Most commercial loans greater than $1.0 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. GSB’s policies were similar in nature to Busey Bank’s policies and the Company is migrating the legacy GSB portfolio and grading toward the Busey Bank policies.

The following table is a summary of risk grades segregated by category of portfolio loans (dollars in thousands):


	As of December 31, 2021
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual		Total
Portfolio loans
Commercial	$	1,747,756	$	93,582	$	69,427	$	26,117	$	7,004	$	1,943,886
Commercial real estate		2,682,441		343,304		49,695		38,394		5,973		3,119,807
Real estate construction		369,797		13,793		6		2,400		—		385,996
Retail real estate		1,491,845		12,374		1,992		3,867		2,898		1,512,976
Retail other		226,262		—		—		—		71		226,333
Total portfolio loans	$	6,518,101	$	463,053	$	121,120	$	70,778	$	15,946	$	7,188,998


	As of December 31, 2020
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual		Total
Portfolio loans
Commercial	$	1,768,755	$	136,948	$	72,447	$	27,903	$	8,523	$	2,014,576
Commercial real estate		2,393,372		383,277		75,486		34,897		5,503		2,892,535
Real estate construction		434,681		24,481		77		2,546		1		461,786
Retail real estate		1,382,616		10,264		2,471		3,702		8,799		1,407,852
Retail other		37,324		—		—		—		104		37,428
Total portfolio loans	$	6,016,748	$	554,970	$	150,481	$	69,048	$	22,930	$	6,814,177

Risk grades of portfolio loans, further sorted by origination year, are as follows (dollars in thousands):


	As of December 31, 2021
	Term Loans Amortized Cost Basis by Origination Year													Revolving
Risk Grade Ratings	2021		2020		2019		2018		2017			Prior		loans		Total
Commercial
Pass	$	512,729	$	228,811	$	107,877	$	84,873	$	74,351	$	122,418	$	616,697	$	1,747,756
Watch		13,847		5,913		14,274		5,060		1,361		2,866		50,261		93,582
Special Mention		7,062		898		5,961		4,025		6,790		11,845		32,846		69,427
Substandard		3,595		3,362		3,136		1,855		1,125		5,459		7,585		26,117
Substandard non-accrual		4,126		364		142		—		320		52		2,000		7,004
Total commercial		541,359		239,348		131,390		95,813		83,947		142,640		709,389		1,943,886

Commercial real estate
Pass		969,548		637,550		425,850		235,928		200,373		198,002		15,190		2,682,441
Watch		51,560		38,820		123,324		48,088		46,761		32,608		2,143		343,304
Special Mention		9,542		7,060		6,585		10,098		6,357		9,870		183		49,695
Substandard		21,002		3,781		1,218		11,451		521		421		—		38,394
Substandard non-accrual		112		181		359		1,893		3,407		21		—		5,973
Total commercial real estate		1,051,764		687,392		557,336		307,458		257,419		240,922		17,516		3,119,807

Real estate construction
Pass		202,082		123,491		31,927		3,155		738		1,223		7,181		369,797
Watch		7,886		4,159		54		—		1,574		120		—		13,793
Special Mention		—		—		6		—		—		—		—		6
Substandard		—		2,400		—		—		—		—		—		2,400
Substandard non-accrual		—		—		—		—		—		—		—		—
Total real estate construction		209,968		130,050		31,987		3,155		2,312		1,343		7,181		385,996

Retail real estate
Pass		523,541		215,068		96,617		79,158		82,478		281,737		213,246		1,491,845
Watch		4,100		2,460		1,780		1,312		343		150		2,229		12,374
Special Mention		1,965		27		—		—		—		—		—		1,992
Substandard		1,369		232		12		71		165		1,687		331		3,867
Substandard non-accrual		235		63		—		16		227		1,705		652		2,898
Total retail real estate		531,210		217,850		98,409		80,557		83,213		285,279		216,458		1,512,976

Retail other
Pass		59,366		22,305		26,126		16,189		7,180		1,326		93,770		226,262
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Substandard non-accrual		34		10		—		14		13		—		—		71
Total retail other		59,400		22,315		26,126		16,203		7,193		1,326		93,770		226,333

Total portfolio loans	$	2,393,701	$	1,296,955	$	845,248	$	503,186	$	434,084	$	671,510	$	1,044,314	$	7,188,998


	As of December 31, 2020
	Term Loans Amortized Cost Basis by Origination Year													Revolving
Risk Grade Ratings	2020		2019		2018		2017		2016			Prior		loans		Total
Commercial
Pass	$	812,536	$	158,307	$	107,565	$	93,190	$	61,847	$	79,970	$	455,340	$	1,768,755
Watch		16,544		22,247		14,954		13,724		2,577		10,943		55,959		136,948
Special Mention		6,402		2,671		2,069		7,164		6,763		13,733		33,645		72,447
Substandard		7,772		3,791		2,371		1,939		819		1,233		9,978		27,903
Substandard non-accrual		150		3,045		451		2,168		641		68		2,000		8,523
Total commercial		843,404		190,061		127,410		118,185		72,647		105,947		556,922		2,014,576

Commercial real estate
Pass		717,559		503,977		360,573		384,843		180,555		227,068		18,797		2,393,372
Watch		88,297		110,526		90,412		33,734		32,887		27,023		398		383,277
Special Mention		16,490		8,858		10,490		10,505		7,102		21,808		233		75,486
Substandard		17,445		4,166		1,491		7,812		2,111		1,377		495		34,897
Substandard non-accrual		1,091		776		821		882		286		1,647		—		5,503
Total commercial real estate		840,882		628,303		463,787		437,776		222,941		278,923		19,923		2,892,535

Real estate construction
Pass		179,232		171,663		64,025		1,468		761		1,444		16,088		434,681
Watch		18,485		3,657		337		1,838		164						24,481
Special Mention		67		10		—		—		—		—		—		77
Substandard		2,400		—		—		—		146		—		—		2,546
Substandard non-accrual		—		—		—		—		—		1		—		1
Total real estate construction		200,184		175,330		64,362		3,306		1,071		1,445		16,088		461,786

Retail real estate
Pass		319,302		162,711		135,065		136,427		140,600		257,147		231,364		1,382,616
Watch		2,715		2,053		1,396		349		579		233		2,939		10,264
Special Mention		509		—		—		—		1,962		—		—		2,471
Substandard		899		96		56		26		727		1,631		267		3,702
Substandard non-accrual		687		78		646		1,147		233		4,815		1,193		8,799
Total retail real estate		324,112		164,938		137,163		137,949		144,101		263,826		235,763		1,407,852

Retail other
Pass		8,357		9,430		5,600		2,516		691		440		10,290		37,324
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Substandard non-accrual		14		7		5		15		5		57		1		104
Total retail other		8,371		9,437		5,605		2,531		696		497		10,291		37,428

Total portfolio loans	$	2,216,953	$	1,168,069	$	798,327	$	699,747	$	441,456	$	650,638	$	838,987	$	6,814,177

Past Due and Non-accrual Loans

An analysis of the amortized cost basis of portfolio loans that are past due and still accruing, or on a non-accrual status, is as follows (dollars in thousands):


	As of December 31, 2021
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Past due and non-accrual loans
Commercial	$	363	$	10	$	213	$	7,004
Commercial real estate		151		441		—		5,973
Real estate construction		56		—		—		—
Retail real estate		3,312		1,830		693		2,898
Retail other		82		16		—		71
Total past due and non-accrual loans	$	3,964	$	2,297	$	906	$	15,946


	As of December 31, 2020
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Past due and non-accrual loans
Commercial	$	243	$	—	$	—	$	8,523
Commercial real estate		—		—		—		5,503
Real estate construction		237		235		—		1
Retail real estate		6,248		400		1,305		8,799
Retail other		66		149		66		104
Total past due and non-accrual loans	$	6,794	$	784	$	1,371	$	22,930

Gross interest income recorded on 90+ days past due loans, and that would have been recorded on non-accrual loans if they had been accruing interest in accordance with their original terms, was $1.6 million, $1.8 million, and $2.3 million for the years ended December 31, 2021, 2020, and 2019, respectively. Interest collected on those loans and recognized on a cash basis that was included in interest income was $0.4 million for the year ended 2021, and was insignificant for the years ended December 31, 2020, and 2019.

Troubled Debt Restructurings

TDR loan balances are summarized as follows (dollars in thousands):


	As of December 31,
	2021		2020
TDRs
In compliance with modified terms	$	1,801	$	3,814
30 – 89 days past due		—		15
Non-performing TDRs		551		1,249
Total TDRs	$	2,352	$	5,078

Loans that were designated as TDRs during the periods presented are summarized as follows (dollars in thousands):


	Newly Designated TDRs
			Recorded Investment ⁽²⁾
	Number of		Rate		Payment
	Contracts ⁽¹⁾		Modification ⁽³⁾		Modification ⁽³⁾
December 31, 2021
Commercial		1	$	364	$	—

December 31, 2020
Commercial		3	$	130	$	—
Commercial real estate		1		651		—
Retail real estate		4		—		986
Total		8	$	781	$	986

December 31, 2019
Commercial		2	$	342	$	—
Commercial real estate ⁽⁴⁾		1		—		—
Real estate construction		1		185		—
Total		4	$	527	$	—

(1)

Total number of contracts that were newly designated as TDRs during years ended on the dates indicated.

(2)

Recorded investment for newly designated TDR’s that were still outstanding as of the dates indicated.

(3)

TDRs may include multiple concessions; those that include an interest rate concession and payment concession are shown in the rate modification columns.

(4)

One commercial real estate TDR that was entered into during the year ended December 31, 2019, subsequently had payment defaults; it was then transferred to OREO by December 31, 2019.

Loans that were designated as TDRs and had subsequent defaults within 12 months are summarized in the table below (dollars in thousands). A default occurs when a loan is 90 days or more past due or transferred to non-accrual.


	Year Ended December 31,
	2021		2020		2019
Defaults on loans designated as TDRs within the last 12 months
Commercial	$	—	$	—	$	—
Commercial real estate		—		—		3,277

Gross interest income that would have been recorded during the years ended December 31, 2021, 2020, and 2019, if TDRs had performed in accordance with their original terms compared with their modified terms, was insignificant.

Loans Modified Under the CARES Act or Interagency Statement

The CARES Act provided financial institutions the option to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Federal regulatory agencies, in consultation with FASB, also issued an Interagency Statement to encourage financial institutions to work with borrowers affected by COVID-19, and updating guidance which allowed banks to modify loans of customers stressed by COVID-19 without having to classify the loan as a TDR. The Company’s TDR loan totals do not include the following modified loans with payment deferrals that fall under the CARES Act or Interagency Statement that suspended requirements under GAAP related to TDR classification (dollars in thousands):


	As of December 31, 2021				As of December 31, 2020
	Number of		Recorded		Number of		Recorded
	Contracts		Investment		Contracts		Investment
COVID-19 loan modifications
Commercial loans:
Full payment deferral ⁽¹⁾		—	$	—		46	$	37,150
Interest-only deferrals		32		128,730		23		85,270
Blended principal and interest and interest-only deferrals		—		—		29		86,204
Total commercial loans		32		128,730		98		208,624

Retail loans:
Mortgage and personal loan deferrals		2		137		351		47,671
Purchased home equity line of credit pool deferrals		—		—		1		119
Total retail loans		2		137		352		47,790

Total COVID-19 loans modifications		34	$	128,867		450	$	256,414

(1)

Includes SBA loans with additional 90-day full payment deferrals granted by Busey.

Loans Evaluated Individually

The Company evaluates loans with disparate risk characteristics on an individual basis. The following tables provide details of loans evaluated individually, segregated by category. The unpaid principal balance represents the customer outstanding contractual principal balance excluding any partial charge-offs. Recorded investment represents the amortized cost of customer balances net of any partial charge-offs recognized on the loan. Average recorded investment is calculated using the most recent four quarters (dollars in thousands):


	As of and for the Year Ended December 31, 2021
	Unpaid		Recorded Investment								Average
	Principal		With No		With				Related		Recorded
	Balance		Allowance		Allowance		Total		Allowance		Investment
Loans evaluated individually
Commercial	$	10,247	$	498	$	6,490	$	6,988	$	3,564	$	8,791
Commercial real estate		6,456		5,750		—		5,750		—		6,390
Real estate construction		272		272		—		272		—		282
Retail real estate		2,514		2,345		25		2,370		25		4,093
Retail other		—		—		—		—		—		—
Total loans evaluated individually	$	19,489	$	8,865	$	6,515	$	15,380	$	3,589	$	19,556


	As of and for the Year Ended December 31, 2020
	Unpaid		Recorded Investment								Average
	Principal		With No		With				Related		Recorded
	Balance		Allowance		Allowance		Total		Allowance		Investment
Loans evaluated individually
Commercial	$	16,771	$	4,001	$	4,371	$	8,372	$	1,600	$	7,920
Commercial real estate		7,406		6,067		—		6,067		—		9,349
Real estate construction		292		292		—		292		—		581
Retail real estate		5,873		5,490		25		5,515		25		7,439
Retail other		—		—		—		—		—		10
Total loans evaluated individually	$	30,342	$	15,850	$	4,396	$	20,246	$	1,625	$	25,299

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 underlying collateral and there are no other available and reliable sources of repayment. Loans are written down to the lower of cost or fair value of underlying collateral, less estimated costs to sell. The Company had $7.9 million and $14.8 million of collateral dependent loans secured by real estate or business assets as of December 31, 2021, and December 31, 2020, respectively.

Allowance for Credit Losses

Management estimates the ACL balance using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience beginning in 2010. As of December 31, 2021, the Company expects the markets in which it operates to experience continued economic uncertainty around the levels of delinquencies over the next four quarters. Management adjusted the historical loss experience for these expectations with an immediate reversion to historical loss rate beyond this forecast period. PPP loans were excluded from the ACL calculation as they are 100% government guaranteed.

The following tables summarize activity in the ACL. Allocation of a portion of the ACL to one category does not preclude its availability to absorb losses in other categories (dollars in thousands):


	As of and for the Year Ended December 31, 2021
			Commercial		Real Estate		Retail
	Commercial		Real Estate		Construction		Real Estate		Retail Other		Total
ACL beginning balance	$	23,866	$	46,230	$	8,193	$	21,992	$	767	$	101,048
Day 1 PCD ⁽¹⁾		3,546		336		—		129		167		4,178
Provision for credit losses		(2,160)		(7,651)		(3,180)		(4,456)		2,346		(15,101)
Charged-off		(2,026)		(925)		(209)		(1,145)		(478)		(4,783)
Recoveries		629		259		298		1,069		290		2,545
ACL ending balance	$	23,855	$	38,249	$	5,102	$	17,589	$	3,092	$	87,887

(1)

The Day 1 PCD is attributable to the CAC acquisition.


	As of and for the Year Ended December 31, 2020
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance, prior to adoption of ASC 326-30	$	18,291	$	21,190	$	3,204	$	10,495	$	568	$	53,748
Adoption of ASC 326-30		715		9,306		2,954		3,292		566		16,833
Provision for credit losses		10,832		17,511		1,452		9,050		(48)		38,797
Charged-off		(6,376)		(1,972)		(18)		(2,057)		(665)		(11,088)
Recoveries		404		195		601		1,212		346		2,758
ACL ending balance	$	23,866	$	46,230	$	8,193	$	21,992	$	767	$	101,048


	As of and for the Year Ended December 31, 2019
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	17,829	$	21,137	$	2,723	$	8,471	$	488	$	50,648
Provision for credit losses		4,893		3,002		(70)		2,102		479		10,406
Charged-off		(6,478)		(3,257)		—		(1,162)		(863)		(11,760)
Recoveries		2,047		308		551		1,084		464		4,454
Ending balance	$	18,291	$	21,190	$	3,204	$	10,495	$	568	$	53,748

The following tables present the ACL and amortized cost of portfolio loans by category (dollars in thousands):


	As of December 31, 2021
	Portfolio Loans						ACL Attributed to Portfolio Loans
	Collectively		Individually				Collectively		Individually
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Impairment		Impairment		Total		Impairment		Impairment		Total
Portfolio loan category
Commercial	$	1,936,898	$	6,988	$	1,943,886	$	20,291	$	3,564	$	23,855
Commercial real estate		3,114,057		5,750		3,119,807		38,249		—		38,249
Real estate construction		385,724		272		385,996		5,102		—		5,102
Retail real estate		1,510,606		2,370		1,512,976		17,564		25		17,589
Retail other		226,333		—		226,333		3,092		—		3,092
Total portfolio loans and related ACL	$	7,173,618	$	15,380	$	7,188,998	$	84,298	$	3,589	$	87,887


	As of December 31, 2020
	Portfolio Loans						ACL Attributed to Portfolio Loans
	Collectively		Individually				Collectively		Individually
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Impairment		Impairment		Total		Impairment		Impairment		Total
Portfolio loan category
Commercial	$	2,006,204	$	8,372	$	2,014,576	$	22,266	$	1,600	$	23,866
Commercial real estate		2,886,468		6,067		2,892,535		46,230		—		46,230
Real estate construction		461,494		292		461,786		8,193		—		8,193
Retail real estate		1,402,337		5,515		1,407,852		21,967		25		21,992
Retail other		37,428		—		37,428		767		—		767
Total portfolio loans and related ACL	$	6,793,931	$	20,246	$	6,814,177	$	99,423	$	1,625	$	101,048

Other Real Estate Owned and Other Repossessed Assets

12 Months Ended

Dec. 31, 2021

Other Real Estate Owned and Other Repossessed Assets

Other Real Estate Owned and Other Repossessed Assets

Note 5. Other Real Estate Owned and Other Repossessed Assets

OREO and other repossessed assets represent properties and other assets acquired through foreclosure or other proceedings in settlement of loans and is included in other assets in the accompanying Consolidated Balance Sheets. The following table summarizes the composition of the Company’s OREO and other repossessed asset balances as of the periods presented (dollars in thousands):


	As of December 31,
	2021		2020
OREO
Commercial	$	2,839	$	4,206
Residential		235		364
Total OREO		3,074		4,570
Other repossessed assets		1,342		1
OREO and other repossessed assets	$	4,416	$	4,571

The following table summarizes activity related to OREO and other repossessed assets (dollars in thousands):


	As of and for the Years Ended December 31,
	2021		2020
Changes in OREO and other repossessed assets
OREO and other repossessed assets beginning balance	$	4,571	$	3,057
Additions, transfers from loans		1,610		2,867
Sales		(1,721)		(1,282)
Cash payments collected		(43)		(3)
Impairment of OREO and other repossessed assets		(1)		(68)
OREO and other repossessed assets ending balance	$	4,416	$	4,571

At December 31, 2021, the Company had $0.2 million of residential real estate in the process of foreclosure. The Company has elected to follow Federal Housing Finance Agency guidelines on single-family foreclosures and real estate owned evictions on portfolio loans, as well as all COVID-19 related state foreclosure and eviction orders.

Premises and Equipment, net

12 Months Ended

Dec. 31, 2021

Premises and Equipment, net

Premises and Equipment, net

Note 6. Premises and Equipment, net

Premises and equipment, net are summarized as follows (dollars in thousands):


	As of December 31,
	2021		2020
Premises and equipment
Land and improvements	$	45,595	$	40,762
Buildings and improvements		132,011		130,610
Furniture and equipment		54,473		53,766
Premises and equipment, gross		232,079		225,138
Accumulated depreciation		95,932		89,947
Premises and equipment, net	$	136,147	$	135,191

Depreciation expense was $11.6 million, $12.3 million, and $11.9 million for the years ended December 31, 2021, 2020, and 2019, respectively.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Note 7. Goodwill and Other Intangible Assets

Other than goodwill, the Company does not have any other intangible assets that are not amortized. The Company’s goodwill is associated with its three operating segments, Banking, FirsTech, and Wealth Management. Goodwill is tested annually for impairment, and as part of this analysis, the reporting unit's carrying value is compared to its estimated fair value. Based on the impairment testing performed at December 31, 2021, there were no indicators of potential impairment based on the estimated fair value of those operating segments. All three operating segments have produced quarterly and annual earnings.

During 2021, in connection with the acquisition of CAC, the company recorded goodwill totaling $6.3 million and other intangible assets totaling $8.8 million in the Banking operating segment, as well as other intangible assets totaling $8.5 million in the Wealth Management segment. During 2020, the Company recorded other intangible assets totaling $0.4 million in the Wealth Management operating segment in connection with an asset acquisition.

The carrying amount of goodwill by operating segment is as follows (dollars in thousands):


	As of December 31,
	2021		2020
Goodwill
Banking	$	294,773	$	288,436
FirsTech		8,992		8,992
Wealth Management		14,108		14,108
Total goodwill	$	317,873	$	311,536

Core deposit and customer relationship intangible assets are amortized over the estimated period benefited. Intangible asset disclosures are as follows (dollars in thousands):


	As of and for the Years Ended December 31,
	2021						2020
			Customer						Customer
	Core deposit		relationship				Core deposit		relationship
	intangible		intangible		Total		intangible		intangible		Total
Intangibles
Intangible assets, gross	$	99,065	$	33,138	$	132,203	$	90,256	$	24,608	$	114,864
Accumulated amortization		55,161		18,991		74,152		46,909		15,970		62,879
Intangible assets, net	$	43,904	$	14,147	$	58,051	$	43,347	$	8,638	$	51,985

Amortization expense	$	8,253	$	3,021	$	11,274	$	7,753	$	2,255	$	10,008

Future expense for the amortization of intangible assets, as estimated, is summarized in the table below for the periods presented (dollars in thousands):


	As of December 31, 2021
			Customer
	Core deposit		relationship
	intangible		intangible		Total
Estimated amortization expense
2022	$	8,315	$	3,313	$	11,628
2023		7,616		2,816		10,432
2024		6,902		2,318		9,220
2025		5,956		1,887		7,843
2026		5,227		1,479		6,706
Thereafter		9,888		2,334		12,222
Total estimated amortization expense	$	43,904	$	14,147	$	58,051

Deposits

12 Months Ended

Dec. 31, 2021

Deposits

Deposits

Note 8. Deposits

The composition of deposits is as follows (dollars in thousands):


	As of December 31,
	2021		2020
Deposits
Demand deposits, noninterest-bearing	$	3,670,267	$	2,552,039
Interest-bearing transaction deposits		2,720,417		2,263,093
Saving deposits and money market deposits		3,442,244		2,743,369
Time deposits		935,649		1,119,348
Total deposits	$	10,768,577	$	8,677,849

Additional information about our deposits is as follows (dollars in thousands):


	As of December 31,
	2021		2020
Brokered savings deposits and money market deposits	$	2,248	$	2,251
Brokered time deposits		266		5,257
Aggregate amount of time deposits with a minimum denomination of $100,000		454,649		568,735
Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000		137,449		192,563

Scheduled maturities of time deposits are as follows (dollars in thousands):


	As of
	December 31, 2021
Time deposits by schedule of maturities
2022	$	643,826
2023		191,995
2024		70,111
2025		16,149
2026		12,834
Thereafter		734
Time deposits	$	935,649

Borrowings

12 Months Ended

Dec. 31, 2021

Borrowings

Borrowings

Note 9. Borrowings

Securities sold under agreements to repurchase

Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature daily. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The underlying securities are held by the Company’s safekeeping agent. The Company may be required to provide additional collateral based on fluctuations in the fair value of the underlying securities. Securities sold under agreements to repurchase were as follows (dollars in thousands):


	As of December 31,
	2021			2020
Securities sold under agreements to repurchase	$	270,139		$	175,614
Weighted average rate for securities sold under agreements to repurchase		0.08	%		0.13	%

Term Loan

On May 28, 2021, the Company entered into a Second Amended and Restated Credit Agreement, pursuant to which the Company has access to (i) a $40.0 million revolving line of credit with a termination date of April 30, 2022, and (ii) a $60.0 million term loan with a maturity date of May 31, 2026. The loans have an annual interest rate of 1.75% plus the 1-month LIBOR rate. Proceeds of the term loan were used to fund a part of the cash portion of the merger consideration related to the acquisition of CAC and for general corporate purposes. The revolving credit facility incurs a non-usage fee based on any undrawn amounts. As of December 31, 2021, there was no balance outstanding on the revolving credit facility and a total of $54.0 million outstanding on the term loan, of which $12.0 million is short-term and $42.0 million is long-term. Quarterly payments on the term loan reduce the outstanding principal balance by $3.0 million each quarter.

Short-term Borrowings

Short-term borrowings are summarized as follows (dollars in thousands):


	As of December 31,
	2021		2020
Short-term borrowings
FHLB advances maturing in less than one year from date of origination, and the current portion of long-term FHLB advances due within 12 months	$	5,678	$	4,658
Term Loan, current portion due within 12 months		12,000		—
Total short-term debt	$	17,678	$	4,658

Federal funds purchased are short-term borrowings that generally mature between one and 90 days. The Company had no federal funds purchased as of December 31, 2021, or 2020.

Long-term Debt

Long-term debt is summarized as follows (dollars in thousands):


	As of December 31,
	2021		2020
Long-term debt
Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock	$	4,056	$	4,757
Term Loan		42,000		—
Total long-term debt	$	46,056	$	4,757

As of December 31, 2021, and 2020, funds borrowed from the FHLB, listed above, consisted of one variable-rate note maturing May 2023, with an interest rate of 3.04%.

Senior and subordinated notes

On May 25, 2017, the Company issued $40.0 million of 3.75% senior notes that mature on May 25, 2022. The senior notes are payable semi-annually on each May 25 and November 25, commencing on November 25, 2017. The senior notes are not subject to optional redemption by the Company. Additionally, on May 25, 2017, the Company issued $60.0 million of fixed-to-floating rate subordinated notes that mature on May 25, 2027. The subordinated notes, which qualify as Tier 2 capital for First Busey, bear interest at an annual rate of 4.75% for the first five years after issuance and thereafter bear interest at a floating rate equal to the 3-month LIBOR plus a spread of 2.919%, as calculated on each applicable determination date. The subordinated notes are payable semi-annually on each May 25 and November 25, commencing on November 25, 2017, during the five-year fixed term and thereafter on February 25, May 25, August 25, and November 25 of each year, commencing on August 25, 2022. The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after May 25, 2022. The senior notes and subordinated notes are unsecured obligations of the Company.

On June 1, 2020, the Company issued $125.0 million of fixed-to-floating rate subordinated notes that mature on June 1, 2030. The subordinated notes, which qualify as Tier 2 capital for First Busey, bear interest at an annual rate of 5.25% for the first five years after issuance and thereafter bear interest at a floating rate equal to a three-month benchmark rate plus a spread of 5.11%, as calculated on each applicable determination date. The subordinated notes are payable semi-annually on each June 1 and December 1, during the five-year fixed-term, and thereafter on March 1, June 1, September 1, and December 1 of each year, commencing on September 1, 2025. The subordinated notes have an optional redemption, in whole or in part, on any interest payment date on or after June 1, 2025. The subordinated notes are unsecured obligations of the Company.

Unamortized debt issuance costs related to senior notes and subordinated notes are presented in the following table (dollars in thousands):


	As of December 31,
	2021		2020
Unamortized debt issuance costs
Senior notes issued in 2017	$	56	$	191
Subordinated notes issued in 2017		549		651
Subordinated notes issued in 2020		1,678		2,123
Total unamortized debt issuance costs	$	2,283	$	2,965

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Junior Subordinated Debt Owed to Unconsolidated Trusts

12 Months Ended

Dec. 31, 2021

Junior Subordinated Debt Owed to Unconsolidated Trusts

Junior Subordinated Debt Owed to Unconsolidated Trusts

Note 10. Junior Subordinated Debt Owed to Unconsolidated Trusts

First Busey maintains statutory trusts for the sole purpose of issuing and servicing trust preferred securities and related trust common securities. Proceeds from such issuances were used by the trusts to purchase junior subordinated notes of the Company, which are the sole assets of each trust. Concurrent with the issuance of the trust preferred securities, the Company issued guarantees for the benefit of the holders of the trust preferred securities. The trust preferred securities are instruments that qualify, and are treated by the Company, as Tier 1 regulatory capital. The Company owns all of the common securities of each trust. The trust preferred securities issued by each trust rank equally with the common securities in right of payment, except that if an event of default under the indenture governing the notes has occurred and is continuing, the preferred securities will rank senior to the common securities in right of payment. In connection with the Pulaski acquisition in 2016, the Company acquired similar statutory trusts previously maintained by Pulaski and the fair value adjustment is being accreted over their weighted average remaining life, with a balance of $3.0 million remaining to be accreted. The Company had $71.6 million and $71.5 million of junior subordinated debt owed to unconsolidated trusts at December 31, 2021, and 2020, respectively, maturing in 2034 through 2036.

The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated notes at par value at the stated maturity date or upon redemption. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated notes. The Company’s obligations under the junior subordinated notes and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each trust’s obligations under the trust preferred securities issued by each trust. The Company has the right to defer payment of interest on the notes, in which case the distributions on the trust preferred securities will also be deferred, for up to five years, but not beyond the stated maturity date.

For regulatory capital purposes, current banking regulations allow for the inclusion in Tier 1 Capital qualifying trust preferred securities issued prior to May 19, 2010, by bank holding companies with less than $15.0 billion of assets, but do not allow for additional Tier 1 Capital to be raised through the future issuance of trust preferred securities. As of December 31, 2021, 100% of the trust preferred securities qualified as Tier 1 Capital; however, once the Company reaches $15.0 billion in assets, its trust preferred securities will no longer quality as Tier 1 Capital.

Regulatory Capital

12 Months Ended

Dec. 31, 2021

Regulatory Capital

Regulatory Capital

Note 11. Regulatory Capital

The Company and Busey Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements. Capital amounts and classification also are subject to qualitative judgments by regulators about components, risk weightings, and other factors.

Banking regulations identify five capital categories for insured depository institutions: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. As of December 31, 2021, and 2020, all capital ratios of the Company and Busey Bank exceeded the well capitalized levels under the applicable regulatory capital adequacy guidelines. Management believes that no events or changes have occurred subsequent to December 31, 2021, that would change this designation.

On March 27, 2020, the FDIC and other federal banking agencies published an Interim Final Rule that provides those banking organizations adopting CECL during 2020 with the option to delay for two years the estimated impact of CECL on regulatory capital and to phase in the aggregate impact of the deferral on regulatory capital over a subsequent three-year period. On August 26, 2020, the CECL final rule was finalized and was substantially similar to the Interim Final Rule. Under this final rule, because the Company has elected to use the deferral option, the regulatory capital impact of our transition adjustments recorded on January 1, 2020, from the adoption of CECL will be deferred for two years, until January 1, 2022. In addition, 25 percent of the ongoing impact of CECL on our ACL, retained earnings, and average total consolidated assets from January 1, 2020, through the end of the two-year deferral period, each as reported for regulatory capital purposes, will be added to the deferred transition amounts (“adjusted transition amounts”) and deferred for the two-year period. At the conclusion of the two-year period, the adjusted transition amounts will be phased-in for regulatory capital purposes at a rate of 25 percent per year, with the phased-in amounts included in regulatory capital at the beginning of each year.

On June 1, 2020, the Company issued $125.0 million of fixed-to-floating rate subordinated notes that mature on June 1, 2030, which qualify as Tier 2 capital for regulatory purposes.

The following tables summarize regulatory capital requirements applicable to the holding company and its subsidiary bank (dollars in thousands):


	As of December 31, 2021
									Minimum
					Minimum				To Be Well
	Actual				Capital Requirement				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Common Equity Tier 1 Capital to Risk Weighted Assets
Consolidated	$	995,874	11.85	%	$	378,334	4.50	%	$	546,482	6.50	%
Busey Bank	$	1,241,303	14.81	%	$	377,096	4.50	%	$	544,695	6.50	%

Tier 1 Capital to Risk Weighted Assets
Consolidated	$	1,069,874	12.73	%	$	504,445	6.00	%	$	672,594	8.00	%
Busey Bank	$	1,241,303	14.81	%	$	502,795	6.00	%	$	670,394	8.00	%

Total Capital to Risk Weighted Assets
Consolidated	$	1,320,187	15.70	%	$	672,594	8.00	%	$	840,742	10.00	%
Busey Bank	$	1,306,616	15.59	%	$	670,394	8.00	%	$	837,992	10.00	%

Leverage Ratio of Tier 1 Capital to Average Assets
Consolidated	$	1,069,874	8.52	%	$	502,336	4.00	%		N/A	N/A
Busey Bank	$	1,241,303	9.91	%	$	501,104	4.00	%	$	626,379	5.00	%


	As of December 31, 2020
									Minimum
					Minimum				To Be Well
	Actual				Capital Requirement				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Common Equity Tier 1 Capital to Risk Weighted Assets
Consolidated	$	909,033	12.43	%	$	329,071	4.50	%	$	475,325	6.50	%
Busey Bank	$	1,053,910	14.44	%	$	328,546	4.50	%	$	474,567	6.50	%

Tier 1 Capital to Risk Weighted Assets
Consolidated	$	983,033	13.44	%	$	438,761	6.00	%	$	585,015	8.00	%
Busey Bank	$	1,053,910	14.44	%	$	438,062	6.00	%	$	584,082	8.00	%

Total Capital to Risk Weighted Assets
Consolidated	$	1,245,997	17.04	%	$	585,015	8.00	%	$	731,269	10.00	%
Busey Bank	$	1,131,875	15.50	%	$	584,082	8.00	%	$	730,103	10.00	%

Leverage Ratio of Tier 1 Capital to Average Assets
Consolidated	$	983,033	9.79	%	$	401,717	4.00	%		N/A	N/A
Busey Bank	$	1,053,910	10.52	%	$	400,581	4.00	%	$	500,727	5.00	%

In July 2013, U.S. federal banking authorities approved the Basel III Rule for strengthening international capital standards. The Basel III Rule introduced a capital conservation buffer, composed entirely of Common Equity Tier 1 Capital, which is added to the minimum risk-weighted asset ratios. The capital conservation buffer is not a minimum capital requirement; however, banking institutions with a ratio of Common Equity Tier 1 Capital to risk-weighted assets below the capital conservation buffer will face constraints on dividends, equity repurchases, and discretionary bonus payments based on the amount of the shortfall. In order to refrain from restrictions on dividends, equity repurchases, and discretionary bonus payments, banking institutions must maintain minimum ratios of (i) Common Equity Tier 1 to risk-weighted assets of at least 7.0%, (ii) Tier 1 capital to risk-weighted assets of at least 8.5%, and (iii) Total capital to risk-weighted assets of at least 10.5%.

The ability of the Company to pay cash dividends to its stockholders and to service its debt is dependent on the receipt of cash dividends from its subsidiaries. Under applicable regulatory requirements, an Illinois state-chartered bank, such as Busey Bank, may not pay dividends in excess of its net profits. Busey Bank paid dividends to the Company of $60.0 million during the year ended December 31, 2021, and $122.0 million during the year ended December 31, 2020.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Taxes

Income Taxes

Note 12. Income Taxes

The components of income taxes consist of (dollars in thousands):


	Years Ended December 31,
	2021		2020		2019
Income tax expense
Current expense:
Federal	$	20,261	$	21,027	$	22,479
State		8,448		12,144		8,910
Deferred expense:
Federal		3,644		(3,657)		(380)
State		1,021		(1,652)		476
Total income tax expense	$	33,374	$	27,862	$	31,485

A reconciliation of federal and state income taxes at statutory rates to the income taxes included in the accompanying Consolidated Statements of Income is as follows:


	Years Ended December 31,
	2021		2020		2019
Percent of pretax income
Income tax at federal statutory rate	21.0	%	21.0	%	21.0	%
Effect of:
Tax-exempt interest, net	(1.1)	%	(1.6)	%	(1.7)	%
Stock incentive	—	%	0.2	%	(0.1)	%
State income taxes, net	4.5	%	6.5	%	5.5	%
Income on bank owned life insurance	(0.7)	%	(0.9)	%	(0.9)	%
Tax credit investments	(3.6)	%	(3.2)	%	(1.3)	%
Other, net	1.2	%	(0.3)	%	0.9	%
Effective income tax rate	21.3	%	21.7	%	23.4	%

Net deferred taxes, reported in other assets or other liabilities in the accompanying Consolidated Balance Sheets, include the following amounts of deferred tax assets and liabilities (dollars in thousands):


	As of December 31,
	2021		2020
Deferred taxes
Deferred tax assets:
ACL	$	25,884	$	30,332
Unrealized loss on cash flow hedge		273		871
Unrealized losses on securities available for sale		9,199		—
Stock-based compensation		4,204		2,975
Deferred compensation		55		66
Purchase accounting adjustments		1,213		4,470
Accrued vacation		398		610
Lease liabilities		2,893		2,142
Employee costs		2,847		1,598
Other		390		431
Total deferred tax assets		47,356		43,495

Deferred tax liabilities:
Unrealized gain on securities available for sale		—		(14,151)
Basis in premises and equipment		(1,347)		(348)
Affordable housing partnerships and other investments		(3,696)		(1,995)
Purchase accounting adjustments		(1,362)		(1,835)
Mortgage servicing assets		(2,853)		(3,418)
Basis in core deposit, customer intangible assets, and asset purchase goodwill		(9,485)		(12,714)
Deferred loan origination costs		(2,454)		(2,654)
Right of use assets		(2,877)		(2,130)
Unrealized gain on equity securities		(1,099)		(276)
Other		(560)		(405)
Total deferred tax liabilities		(25,733)		(39,926)

Net deferred tax asset	$	21,623	$	3,569

At December 31, 2021, the Company had state net operating loss carryforwards for Wisconsin and California, both of which were an insignificant amount and will begin to expire in the year 2041.

Management believes that it is more likely than not that the other deferred tax assets included in the accompanying Consolidated Balance Sheets will be fully realized. The Company has determined that no valuation allowance is required for any deferred tax assets as of December 31, 2021, or 2020.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Employee Benefit Plans

12 Months Ended

Dec. 31, 2021

Employee Benefit Plans

Employee Benefit Plans

Note 13. Employee Benefit Plans

Active Benefit Plans

Profit-Sharing Plan

All associates who meet certain age and service requirements are eligible to participate in the Company's profit-sharing plan. Discretionary profit-sharing contributions and related expenses, if any, are approved solely by the First Busey board of directors, and in no case may annual contributions be greater than the amounts deductible for federal income tax purposes for that year.

The rights of participants in the profit-sharing plan vest ratably over a five-year period, except for the 401(k) Safe Harbor match component of the profit-sharing plan, which vests immediately.

Terminated Benefit Plans

Employees’ Stock Ownership Plan

Prior to 2014, the First Busey ESOP was available to all associates who met certain age and service requirements. Effective March 20, 2014, the ESOP was frozen, all shares were fully vested, and there were no new contributions under the ESOP. On October 31, 2019, First Busey’s board of directors elected to terminate the ESOP. First Busey filed a determination letter with the Internal Revenue Service on February 10, 2020. During 2020, First Busey received a favorable determination ruling from the Internal Revenue Service, and all plan assets were distributed by the end of the year.

Deferred Compensation Plan

The Company previously sponsored deferred compensation plans for executive officers for deferral of compensation. Effective March 28, 2018, the deferred compensation plans were terminated, and account balances were distributed in April 2019. There was no deferred compensation liability balance as of December 31, 2021, or 2020.

Benefit Plan Expenses

Expenses related to our employee benefit plans, reported in salaries, wages, and employee benefits in the accompanying Consolidated Statements of Income, are summarized in the table below (dollars in thousands):


	Years Ended December 31,
	2021		2020		2019
Employee benefit plan expenses
Profit-sharing plan	$	6,531	$	5,982	$	5,777
Deferred compensation plan		—		—		80
Total employee benefit plan expenses	$	6,531	$	5,982	$	5,857

Stock-based Compensation

12 Months Ended

Dec. 31, 2021

Stock-based Compensation

Stock-based Compensation

Note 14. Stock-based Compensation

Stock Options

The Company has outstanding stock options assumed from acquisitions. A summary of the status of, and changes in, the Company's stock option awards follows (dollars in thousands, except weighted-average exercise price):


	As of and for the Year Ended December 31, 2021
					Weighted-
			Weighted-		Average
			Average		Remaining
			Exercise		Contractual		Intrinsic
	Shares		Price		Life		Value
Outstanding at beginning of year		39,085	$	23.53		5.88	$	—
Exercised		—		—
Forfeited		—		—
Expired		(7,699)		23.53
Outstanding at end of year		31,386	$	23.53		4.88	$	113

Exercisable at end of year		31,386	$	23.53		4.88	$	113

2020 Equity Plan

Under the terms of the 2020 Equity Plan, the Company has granted RSU, PSU, and DSU awards. The Company grants RSUs to members of management periodically throughout the year. Each RSU is equivalent to one share of the Company’s common stock. These units have requisite service periods ranging from one to five years, subject to accelerated vesting upon eligible retirement from the Company. Recipients earn quarterly dividend equivalents on their respective units which entitle the recipients to additional units. Therefore, dividends earned each quarter compound based upon the updated unit balances.

The Company grants DSUs, which are restricted stock units with a deferred settlement date, to its directors and advisory directors. Each DSU is equivalent to one share of the Company’s common stock. DSUs vest over a one-year period following the grant date. These units generally are subject to the same terms as RSUs under the 2020 Equity Plan, except that, following vesting, settlement occurs within 30 days following the earlier of separation from the board or a change in control of the Company. After vesting and prior to delivery, these units will continue to earn dividend equivalents.

Upon exercise or vesting/delivery, shares are expected (though not required) to be issued from treasury.

Restricted Stock Unit, Performance-Based Restricted Stock Unit, and Deferred Stock Unit Awards

Changes in the Company’s RSU, PSU, and DSU awards are summarized as follows:


	As of and for the Year Ended December 31, 2021
	RSU Awards				PSU Awards				DSU Awards
			Weighted-				Weighted-				Weighted-
			Average				Average				Average
			Grant Date				Grant Date				Grant Date
	Shares		Fair Value		Shares⁽¹⁾		Fair Value		Shares		Fair Value
Nonvested at beginning of period		1,017,038	$	23.87		15,724	$	16.25		34,263	$	17.18
Granted		260,231		24.26		99,159		23.91		35,664		24.59
Dividend equivalents earned		43,783		23.65		—		—		4,891		23.72
Vested		(143,242)		23.50		—		—		(40,683)		18.24
Forfeited		(29,883)		24.88		(968)		23.48		—		—
Nonvested at end of period		1,147,927	$	23.97		113,915	$	22.86		34,135	$	24.59

Vested and outstanding at end of period										97,297	$	22.02

(1)

Shares for PSU awards represent target shares at grant date.

On March 24, 2021, under the terms of the 2020 Equity Plan, the Company granted 212,426 RSUs to members of management. The grant date fair value of the award totaled $5.2 million and will be recognized as compensation expense over the requisite service period ranging from one year to five years. The terms of these awards included an accelerated vesting provision upon eligible retirement from the Company, after a one-year minimum requisite service period. Subsequent to the requisite service period, the awards will become 100% vested. Further, the Company granted 33,288 DSUs to directors and advisory directors. The grant date fair value of the award totaled $0.8 million and will be recognized as compensation expense over the requisite service period of one year. Subsequent to the requisite service period, the awards will become 100% vested.

During the first quarter of 2021, the Company also granted a target of 70,815 market-based PSUs with a maximum award of 113,304 units. The actual number of units issued at the vesting date could range from 0% to 160% of the initial grant, depending on attaining the market-based total shareholder return performance goal. The grant date fair value of the award was $1.7 million and will be recognized in compensation expense over the performance period ending December 31, 2023.

Further, during the first quarter of 2021, the Company granted a target of 28,344 PSUs with a maximum award of 39,682 units. The actual number of units issued at the vesting date could range from 0% to 140% of the initial grant, depending on attaining a performance goal based upon FirsTech’s compounded annual revenue growth rate. The grant date fair value of the award is $0.7 million and will be recognized in compensation expense over the performance period ending August 31, 2023, subject to achievement of the performance goal.

On May 19, 2021, under the terms of the 2020 Equity Plan, the Company granted 2,376 DSUs to directors. The grant date fair value of the award totaled $0.1 million and will be recognized as compensation expense over the requisite service period of one year. Subsequent to the requisite service period, the awards will become 100% vested.

On September 22, 2021, under the terms of the 2020 Equity Plan, the Company granted 47,805 RSUs to members of management. The grant date fair value of the award totaled $1.1 million and will be recognized as compensation expense over the requisite service period ranging from three year to five years. Subsequent to the requisite service period, the awards will become 100% vested.

A description of RSU, PSU and DSU awards granted in 2020 and 2019 under the terms of the 2020 Equity Plan, 2010 Equity Plan, or the First Community 2016 Equity Incentive Plan can be found in the Company’s Annual Reports for the years ended December 31, 2020, and 2019.

The Company issued 116,904 treasury shares in conjunction with the vesting of RSUs and settlement of DSUs in 2021. The difference between the number of shares issued and the number of vested units is due to shares issued under a net share settlement option.

2021 Employee Stock Purchase Plan

The 2021 ESPP was approved at the Company’s 2021 Annual Meeting of Stockholders, replacing the 2011 ESPP which terminated at the end of 2020. The purpose of the 2021 ESPP is to provide a means through which our employees may acquire a proprietary interest in the Company by purchasing shares of our common stock at a 15% discount through voluntary payroll deductions, to assist us in retaining the services of our employees and securing and retaining the services of new employees, and to provide incentives for our employees to exert maximum efforts toward our success. Under the terms of the 2021 ESPP, all participating employees will have equal rights and privileges. Substantially all of our employees are eligible to participate in the 2021 ESPP. Further details can be found within First Busey’s Definitive Proxy Statement filed with the SEC on April 8, 2021.

The first offering under the 2021 ESPP began on July 1, 2021. There were 569,610 shares available for issuance under the 2021 ESPP as of December 31, 2021.

Stock-based Compensation Expense

The Company recognized compensation expense related to non-vested RSU, PSU, and DSU awards, as well as the 2021 ESPP, as presented in the table below (dollars in thousands):


	Years Ended December 31,
	2021		2020		2019
Stock-based compensation expense
Stock options ⁽¹⁾	$	—	$	—	$	146
RSU awards		5,809		6,493		3,249
PSU awards		979		77		—
DSU awards		962		565		602
2021 ESPP		114		—		—
Total stock-based compensation expense	$	7,864	$	7,135	$	3,997

(1)

Stock option compensation expense recorded in 2019 was attributable to converted options related to the 2017 acquisition of First Community.

Unamortized stock-based compensation expense is presented in the table below (dollars in thousands):


	As of December 31,
	2021			2020
Unamortized stock-based compensation
RSU awards	$	10,204		$	10,411
PSU awards		1,547			179
DSU awards		209			294
Total unamortized stock-based compensation	$	11,960		$	10,884

Weighted average period over which expense is to be recognized		2.9	yrs		3.0	yrs

Transactions with Related Parties

12 Months Ended

Dec. 31, 2021

Transactions with Related Parties

Transactions with Related Parties

Note 15. Transactions with Related Parties

The Company has had, and may be expected to have in the future, banking transactions in the ordinary course of business with related parties which include directors, executive officers, chief credit officers, their immediate families, and affiliated companies in which they have 10% or more beneficial ownership, on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others.

The following is an analysis of the changes in loans to related parties, as a group (dollars in thousands):


	As of and for the Year Ended
	December 31, 2021
Loans to related parties
Balance at beginning of year	$	41,921
Change in relationship		(2,033)
New loans/advances		31,761
Repayments		(29,092)
Balance at end of year	$	42,557

Loans to related parties did not include amounts that were past due, nonaccrual, or TDRs.

Additionally, total unused commitments to directors and executive officers were $8.6 million at December 31, 2021.

Outstanding Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2021

Outstanding Commitments and Contingent Liabilities

Outstanding Commitments and Contingent Liabilities

Note 16. Outstanding Commitments and Contingent Liabilities

Legal Matters

The Company is a party to legal actions which arise in the normal course of its business activities. In the opinion of management, the ultimate resolution of these matters is not expected to have a material effect on the Company’s financial position or the results of operations.

Credit Commitments and Contingencies

A summary of the contractual amount of the Company’s exposure to off-balance-sheet risk relating to the Company’s commitments to extend credit and standby letters of credit follows (dollars in thousands):


	As of December 31,
	2021		2020
Financial instruments whose contract amounts represent credit risk
Commitments to extend credit	$	1,983,655	$	1,754,370
Standby letters of credit		32,552		38,937
Total commitments	$	2,016,207	$	1,793,307

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2021

Derivative Financial Instruments

Derivative Financial Instruments

Note 17. Derivative Financial Instruments

Derivative Instruments Designated as Hedges

Interest Rate Swaps Designated as Cash Flow Hedges

Interest rate swaps with notional amounts totaling $50.0 million as of December 31, 2021, and $70.0 million as of December 31, 2020, were designated as cash flow hedges to hedge the risk of variability in cash flows (future interest payments) attributable to changes in the contractually specified 3-month LIBOR benchmark interest rate on the Company’s junior subordinated debt owed to unconsolidated trusts and were determined to be highly effective during the period. A $20.0 million swap matured on September 17, 2021, and the Company has one remaining swap. The gross aggregate fair value of the swaps of $1.0 million as of December 31, 2021, and $3.1 million as of December 31, 2020, is recorded in other liabilities in the Consolidated Balance Sheets, with changes in fair value recorded net of tax in other comprehensive income (loss). The Company expects its hedge to remain highly effective during the remaining term of the swap.

A summary of the interest-rate swaps designated as cash flow hedges is presented below (dollars in thousands):


	As of December 31,
	2021			2020
Notional amount	$	50,000		$	70,000
Weighted average fixed pay rates		1.79	%		1.80	%
Weighted average variable 3-month LIBOR receive rates		0.20	%		0.22	%
Weighted average maturity, in years		2.71	yrs		2.85	yrs
Unrealized gains (losses), net of tax	$	(685)		$	(2,184)

The Company expects $0.2 million of the unrealized gain (loss) to be reclassified from OCI to interest expense during the next three months. This reclassified amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to December 31, 2021.

Interest income (expense) recorded on swap transactions was as follows for the periods presented (dollars in thousands):


	Years Ended December 31,
	2021		2020		2019
Interest income (expense) on swap transactions	$	(1,067)	$	(758)	$	60

The following table reflects the net gains (losses) recorded in AOCI and the Consolidated Statements of Comprehensive Income relating to cash flow derivative instruments for the periods presented (dollars in thousands):


	Years Ended December 31,
	2021		2020		2019
Unrealized gains (losses) on cash flow hedges
Gain (loss) recognized in OCI, net of tax	$	736	$	(2,526)	$	(202)
(Gain) loss reclassified from OCI to interest expense, net of tax		763		542		2
Net change in unrealized gains (losses) on cash flow hedges	$	1,499	$	(1,984)	$	(200)

The Company pledged $1.0 million and $3.2 million in cash to secure its obligation under these contracts at December 31, 2021, and 2020, respectively.

Derivative Instruments Not Designated as Hedges

Interest Rate Swaps

The Company may offer derivative contracts to its customers in connection with their risk management needs. The Company manages the risk associated with these contracts by entering into equal and offsetting derivative agreements with a third-party dealer. These contracts support variable rate, commercial loan relationships totaling $491.4 million and $395.0 million, at December 31, 2021, and 2020, respectively. These derivatives generally worked together as an economic interest rate hedge, but the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred.

Amounts and fair values of derivative assets and liabilities related to customer interest rate swaps, included in other assets and other liabilities in the Consolidated Balance Sheets, are summarized as follows (dollars in thousands):


	As of December 31, 2021
	Derivative Asset				Derivative Liability
	Notional		Fair		Notional		Fair
	Amount		Value		Amount		Value
Derivatives not designated as hedging instruments
Interest rate swaps – pay floating, receive fixed	$	404,572	$	17,839	$	86,784	$	2,259
Interest rate swaps – pay fixed, receive floating		86,784		2,259		404,572		17,839
Total derivatives not designated as hedging instruments	$	491,356	$	20,098	$	491,356	$	20,098


	As of December 31, 2020
	Derivative Asset				Derivative Liability
	Notional		Fair		Notional		Fair
	Amount		Value		Amount		Value
Derivatives not designated as hedging instruments
Interest rate swaps – pay floating, receive fixed	$	394,954	$	32,685	$	—	$	—
Interest rate swaps – pay fixed, receive floating		—		—		394,954		32,685
Total derivatives not designated as hedging instruments	$	394,954	$	32,685	$	394,954	$	32,685

Changes in fair value of these derivative assets and liabilities are recorded in noninterest expense in the Consolidated Statements of Income and summarized as follows (dollars in thousands):


		Years Ended December 31,
	Location	2021		2020		2019
Interest rate swaps
Pay floating, receive fixed	Noninterest expense	$	(12,587)	$	20,331	$	10,915
Pay fixed, receive floating	Noninterest expense		12,587		(20,331)		(10,915)
Net change in fair value of interest rate swaps		$	—	$	—	$	—

The Company pledged $26.3 million and $36.0 million in cash to secure its obligation under these contracts at December 31, 2021, and 2020, respectively.

Risk Participation Agreement

In addition, the Company has entered into one risk participation agreement in conjunction with a loan participation with another financial institution to manage the credit risk exposure related to a customer-facing swap. The notional amount of the risk participation agreement was $4.0 million, and it had an insignificant fair value as of December 31, 2021. This risk participation agreement matures in 2028.

Mortgage Banking Derivatives

Interest Rate Lock Commitments

Interest rate lock commitments that meet the definition of derivative financial instruments under ASC Topic 815, Derivatives and Hedging, are carried at their fair values in other assets or other liabilities in the Consolidated Balance Sheets, with changes in the fair values of the corresponding derivative financial assets or liabilities recorded as either a charge or credit to current earnings during the period in which the changes occurred.

Forward Sales Commitments

The Company economically hedges mortgage loans held for sale and interest rate lock commitments issued to its residential loan customers related to loans that will be held for sale by obtaining corresponding best-efforts forward sales commitments with an investor to sell the loans at an agreed-upon price at the time the interest rate locks are issued to the customers. Forward sales commitments that meet the definition of derivative financial instruments under ASC Topic 815, Derivatives and Hedging, are carried at their fair values in other assets or other liabilities in the Consolidated Balance Sheets. While such forward sales commitments generally served as an economic hedge to mortgage loans held for sale and interest rate lock commitments, the Company did not designate them for hedge accounting treatment. Changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred.

Amounts and fair values of mortgage banking derivatives included in the Consolidated Balance Sheets are summarized as follows (dollars in thousands):


		As of December 31, 2021				As of December 31, 2020
		Notional		Fair		Notional		Fair
	Location	Amount		Value		Amount		Value
Derivatives with positive fair value
Interest rate lock commitments	Other assets	$	19,384	$	206	$	45,004	$	1,201
Forward sales commitments	Other assets		1,884		10		978		32
Mortgage banking derivatives recorded in other assets		$	21,268	$	216	$	45,982	$	1,233

Derivatives with negative fair value
Interest rate lock commitments	Other liabilities	$	499	$	6	$	118	$	1
Forward sales commitments	Other liabilities		41,002		439		84,964		2,662
Mortgage banking derivatives recorded in other liabilities		$	41,501	$	445	$	85,082	$	2,663

Net gains (losses) relating to these derivative instruments are summarized as follows for the periods presented (dollars in thousands):


		Years Ended December 31,
	Location	2021		2020		2019
Net gains (losses)
Interest rate lock commitments	Mortgage revenue	$	1,702	$	9,667	$	3,988
Forward sales commitments	Mortgage revenue		(4,045)		(18,329)		(6,751)
Net gains (losses)		$	(2,343)	$	(8,662)	$	(2,763)

The impact of the net gains or losses on derivative financial instruments related to interest rate lock commitments issued to residential loan customers for loans that will be held for sale and forward sales commitments to sell residential mortgage loans to loan investors are almost entirely offset by a corresponding change in the fair value of loans held for sale.

Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value Measurements

Fair Value Measurements

Note 18. Fair Value Measurements

The fair value of an asset or liability is the price that would be received by selling that asset or paid in transferring that liability (exit price) in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. ASC Topic 820, Fair Value Measurement, establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

●

Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

●

Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.

●

Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to those Company assets and liabilities that are carried at fair value.

In general, fair value is based upon quoted market prices, when available. If such quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable data. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect, among other things, counterparty credit quality and the company's creditworthiness as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. While management believes the Company's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

Debt Securities Available for Sale

Debt securities classified as available for sale are reported at fair value utilizing Level 2 inputs. The Company obtains fair value measurements from an independent pricing service. The independent pricing service utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid, and other market information. Because many fixed income securities do not trade on a daily basis, the independent pricing service applies available information, focusing on observable market data such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing, to prepare evaluations.

The independent pricing service uses model processes, such as the Option Adjusted Spread model, to assess interest rate impact and develop prepayment scenarios. Models and processes take into account market conventions. For each asset class, a team of evaluators gathers information from market sources and integrates relevant credit information, perceived market movements, and sector news into the evaluated pricing applications and models.

Market inputs that the independent pricing service normally seeks for evaluations of securities, listed in approximate order of priority, include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The independent pricing service also monitors market indicators, industry, and economic events. For certain security types, additional inputs may be used or some of the market inputs may not be applicable. Evaluators may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs listed are available for use in the evaluation process for each security evaluation on a given day. Because the data utilized was observable, the securities have been classified as Level 2.

Equity Securities

Equity securities are reported at fair value utilizing Level 1 or Level 2 inputs. As applicable for mutual funds, unadjusted quoted prices in active markets for identical assets are utilized to determine fair value at the measurement date and are classified as Level 1. For stock, quoted prices for identical or similar assets in markets that are not active are utilized and classified as Level 2.

Loans Held for Sale

Loans held for sale are reported at fair value utilizing Level 2 inputs. The fair value of the mortgage loans held for sale are measured using observable quoted market or contract prices or market price equivalents and are classified as Level 2.

Derivative Assets and Derivative Liabilities

Derivative assets and derivative liabilities are reported at estimated fair value utilizing Level 2 inputs and are included in other assets or other liabilities on the Consolidated Balance Sheets. Derivative balances consist of interest rate swaps and a risk participation agreement where there is no significant deterioration in the counterparties (loan customers) credit risk since origination of the interest rate swap or risk participation agreement, as well as mortgage banking derivatives, including interest rate lock commitments and forward sales commitments.

The Company values its derivative assets and liabilities using market prices provided by third parties which use primarily observable market inputs. For purposes of potential valuation adjustments to our derivative positions, the Company evaluates the credit risk of its counterparties as well as its own credit risk. Accordingly, the Company has considered factors such as the likelihood of default, expected loss given default, net exposures, and remaining contractual life, among other things, in determining if any estimated fair value adjustments related to credit risk are required. The Company reviews counterparty exposure quarterly, and when necessary, appropriate adjustments are made to reflect the exposure. No credit changes in counterparty credit were identified.

The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2021, and 2020, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):


	As of December 31, 2021
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	165,762	$	—	$	165,762
Obligations of U.S. government corporations and agencies		—		38,470		—		38,470
Obligations of states and political subdivisions		—		306,869		—		306,869
Asset-backed securities		—		492,186		—		492,186
Commercial mortgage-backed securities		—		614,998		—		614,998
Residential mortgage-backed securities		—		2,069,313		—		2,069,313
Corporate debt securities		—		293,653		—		293,653
Equity securities		—		13,571		—		13,571
Loans held for sale		—		23,875		—		23,875
Derivative assets		—		20,314		—		20,314
Derivative liabilities		—		21,501		—		21,501


	As of December 31, 2020
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	27,837	$	—	$	27,837
Obligations of U.S. government corporations and agencies		—		69,519		—		69,519
Obligations of states and political subdivisions		—		304,711		—		304,711
Commercial mortgage-backed securities		—		418,616		—		418,616
Residential mortgage-backed securities		—		1,368,315		—		1,368,315
Corporate debt securities		—		72,189		—		72,189
Equity securities		—		5,530		—		5,530
Loans held for sale		—		42,813		—		42,813
Derivative assets		—		33,918		—		33,918
Derivative liabilities		—		38,403		—		38,403

Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Loans Evaluated Individually

The Company does not record portfolio loans at fair value on a recurring basis. However, periodically, a loan is evaluated individually and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. If the collateral value is not sufficient, a specific reserve is recorded. Collateral values are estimated using a combination of observable inputs, including recent appraisals, and unobservable inputs based on customized discounting criteria. Due to the significance of unobservable inputs, fair values of individually evaluated collateral dependent loans have been classified as Level 3.

OREO

Non-financial assets measured at fair value include OREO (upon initial recognition or subsequent impairment). OREO properties are measured using a combination of observable inputs, including recent appraisals, and unobservable inputs. Due to the significance of unobservable inputs, all OREO fair values have been classified as Level 3.

Bank Property Held for Sale

Bank property held for sale represents certain banking center office buildings which the Company has closed and consolidated with other existing banking centers. Bank property held for sale is measured at the lower of amortized cost or fair value less estimated costs to sell, and is included in premises and equipment, net on the Consolidated Balance Sheets. Fair values were based upon discounted appraisals or real estate listing price. Due to the significance of unobservable inputs, fair values of all bank property held for sale have been classified as Level 3.

The following tables summarize assets and liabilities measured at fair value on a non-recurring basis for the periods presented, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):


	As of December 31, 2021
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	2,926	$	2,926
OREO with subsequent impairment		—		—		51		51
Bank property held for sale with impairment		—		—		10,103		10,103


	As of December 31, 2020
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	2,771	$	2,771
OREO with subsequent impairment		—		—		106		106
Bank property held for sale with impairment		—		—		10,676		10,676

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands):


	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range
December 31, 2021:	Estimate		Techniques	Input	(Weighted Average)
Loans evaluated individually, net of related allowance	$	2,926	Appraisal of collateral	Appraisal adjustments	-50.0	%	to	-100.0	%	(-55.1)	%
OREO with subsequent impairment		51	Appraisal of collateral	Appraisal adjustments	-33.0	%	to	-100.0	%	(-67.9)	%
Bank property held for sale with impairment		10,103	Appraisal of collateral or real estate listing price	Appraisal adjustments	-0.7	%	to	-70.1	%	(-41.3)	%

December 31, 2020:
Loans evaluated individually, net of related allowance	$	2,771	Appraisal of collateral	Appraisal adjustments	-30.0	%	to	-100.0	%	(-37.0)	%
OREO with subsequent impairment		106	Appraisal of collateral	Appraisal adjustments	-25.0	%	to	-100.0	%	(-54.5)	%
Bank property held for sale with impairment		10,676	Appraisal of collateral or real estate listing price	Appraisal adjustments	-6.2	%	to	-64.9	%	(-42.8)	%

Estimated fair values of financial instruments that are reported at amortized cost in the Company’s Consolidated Balance Sheets, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, were as follows (dollars in thousands):


	As of December 31, 2021				As of December 31, 2020
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets
Level 1 inputs:
Cash and cash equivalents	$	836,095	$	836,095	$	688,537	$	688,537
Level 2 inputs:
Accrued interest receivable		31,064		31,064		33,240		33,240
Level 3 inputs:
Portfolio loans, net		7,101,111		7,161,466		6,713,129		6,755,425
Mortgage servicing rights		8,608		12,133		10,912		11,107
Other servicing rights		1,830		2,268		1,434		1,966

Financial liabilities
Level 2 inputs:
Time deposits	$	935,649	$	935,778	$	1,119,348	$	1,132,107
Securities sold under agreements to repurchase		270,139		270,139		175,614		175,614
Short-term borrowings		17,678		17,673		4,658		4,661
Long-term debt		46,056		46,164		4,757		5,014
Junior subordinated debt owed to unconsolidated trusts		71,635		63,586		71,468		59,943
Accrued interest payable		2,728		2,728		3,401		3,401
Level 3 inputs:
Senior notes, net of unamortized issuance costs		39,944		40,400		39,809		40,104
Subordinated notes, net of unamortized issuance costs		182,773		195,600		182,226		187,697

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Earnings Per Common Share

12 Months Ended

Dec. 31, 2021

Earnings Per Common Share

Earnings Per Common Share

Note 19. Earnings Per Common Share

Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding, which include deferred stock units that are vested but not delivered. Diluted earnings per common share is computed using the treasury stock method and reflects the potential dilution that could occur if the Company’s outstanding stock options and warrants were exercised, stock units were vested, and ESPP shares were issued.

Earnings per common share have been computed as follows (dollars in thousands, except per share amounts):


	Years Ended December 31,
	2021		2020		2019
Net income	$	123,449	$	100,344	$	102,953
Shares:
Weighted average common shares outstanding		55,369,476		54,567,429		54,851,652
Dilutive effect of outstanding options, warrants, and stock units as determined by the application of the treasury stock method		635,221		259,510		280,842
Dilutive effect of ESPP shares		4,108		—		—
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation		56,008,805		54,826,939		55,132,494

Basic earnings per common share	$	2.23	$	1.84	$	1.88

Diluted earnings per common share	$	2.20	$	1.83	$	1.87

Shares that were excluded from the computation of diluted earnings per common share because their effect would have been anti-dilutive are summarized in the table below for the periods presented:


	Years Ended December 31,
	2021		2020		2019
Anti-dilutive common stock equivalents
Options		—		39,085		—
RSU and DSU awards		72,800		159,408		201,029
PSU awards		93,026		7,862		—
Total anti-dilutive common stock equivalents		165,826		206,355		201,029

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2021

Accumulated Other Comprehensive Income (Loss).

Accumulated Other Comprehensive Income (Loss).

Note 20. Accumulated Other Comprehensive Income (Loss)

The following table represents changes in AOCI by component, net of tax, for the periods below (dollars in thousands):


	Year Ended December 31, 2021
		Before Tax		Tax Effect		Net of Tax
Unrealized gains (losses) on debt securities available for sale
Balance at beginning of period	$	49,644	$	(14,151)	$	35,493
Unrealized holding gains (losses) on debt securities available for sale, net		(81,977)		23,367		(58,610)
Amounts reclassified from AOCI, net		61		(17)		44
Balance at end of period		(32,272)		9,199		(23,073)

Unrealized gains (losses) on cash flow hedges
Balance at beginning of period		(3,055)		871		(2,184)
Unrealized holding gains (losses) on cash flow hedges, net		1,030		(294)		736
Amounts reclassified from AOCI, net		1,067		(304)		763
Balance at end of period		(958)		273		(685)

Total AOCI	$	(33,230)	$	9,472	$	(23,758)


	Year Ended December 31, 2020
		Before Tax		Tax Effect		Net of Tax
Unrealized gains (losses) on debt securities available for sale
Balance at beginning of period	$	21,192	$	(6,032)	$	15,160
Unrealized holding gains (losses) on debt securities available for sale, net		30,176		(8,615)		21,561
Amounts reclassified from AOCI, net		(1,724)		496		(1,228)
Balance at end of period		49,644		(14,151)		35,493

Unrealized gains (losses) on cash flow hedges
Balance at beginning of period		(280)		80		(200)
Unrealized holding gains (losses) on cash flow hedges, net		(3,533)		1,007		(2,526)
Amounts reclassified from AOCI, net		758		(216)		542
Balance at end of period		(3,055)		871		(2,184)

Total AOCI	$	46,589	$	(13,280)	$	33,309


	Year Ended December 31, 2019
		Before Tax		Tax Effect		Net of Tax
Unrealized gains (losses) on debt securities available for sale
Balance at beginning of period	$	(9,528)	$	2,716	$	(6,812)
Unrealized holding gains (losses) on debt securities available for sale, net		26,430		(7,525)		18,905
Unrealized losses on debt securities transferred from held to maturity to available for sale		5,023		(1,433)		3,590
Amounts reclassified from AOCI, net		(733)		210		(523)
Balance at end of period		21,192		(6,032)		15,160

Unrealized gains (losses) on cash flow hedges
Balance at beginning of period		—		—		—
Unrealized holding gains (losses) on cash flow hedges, net		(283)		81		(202)
Amounts reclassified from AOCI, net		3		(1)		2
Balance at end of period		(280)		80		(200)

Total AOCI	$	20,912	$	(5,952)	$	14,960

Operating Segments and Related Information

12 Months Ended

Dec. 31, 2021

Operating Segments and Related Information

Operating Segments and Related Information

Note 21. Operating Segments and Related Information

The Company has three reportable operating segments: Banking, FirsTech, and Wealth Management. The Company’s operating segments are strategic business units that are separately managed as they offer different products and services and have different marketing strategies. The Banking operating segment provides a full range of banking services to individual and corporate customers through its banking center network in Illinois; the St. Louis, Missouri metropolitan area; southwest Florida; and Indianapolis, Indiana. The FirsTech operating segment provides solutions for online bill payments, lockbox, and walk-in payments. The Wealth Management operating segment provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations.

The segment financial information provided below has been derived from information used by management to monitor and manage the financial performance of the Company. The accounting policies of the three segments are the same as those described in the summary of significant accounting policies in “Note 1. Significant Accounting Policies.” The Company accounts for intersegment revenue and transfers at current market value.

Following is a summary of selected financial information for the Company’s operating segments. The “other” category included in the tables below consists of the Parent Company, First Busey Risk Management, and the elimination of intercompany transactions (dollars in thousands):


	Goodwill				Total Assets
	As of December 31,				As of December 31,
	2021		2020		2021		2020
Operating segment
Banking	$	294,773	$	288,436	$	12,746,833	$	10,462,673
FirsTech		8,992		8,992		47,481		46,553
Wealth Management		14,108		14,108		65,587		46,504
Other		—		—		(212)		(11,683)
Consolidated total	$	317,873	$	311,536	$	12,859,689	$	10,544,047


	Years Ended December 31,

	2021		2020		2019
Net interest income
Banking	$	285,678	$	294,728	$	296,754
FirsTech		79		79		76
Wealth Management		—		—		—
Other		(15,059)		(11,872)		(9,607)
Total net interest income	$	270,698	$	282,935	$	287,223

Noninterest income
Banking	$	59,393	$	61,043	$	63,613
FirsTech		19,629		16,548		16,450
Wealth Management		53,082		43,429		39,075
Other		700		(2,755)		(2,723)
Total noninterest income	$	132,804	$	118,265	$	116,415

Noninterest expense
Banking	$	205,905	$	185,445	$	211,559
FirsTech		17,574		13,279		10,990
Wealth Management		29,198		26,086		24,534
Other		9,103		9,387		11,711
Total noninterest expense	$	261,780	$	234,197	$	258,794

Income before income taxes
Banking	$	154,267	$	131,529	$	138,401
FirsTech		2,134		3,348		5,536
Wealth Management		23,884		17,343		14,541
Other		(23,462)		(24,014)		(24,040)
Total income before income taxes	$	156,823	$	128,206	$	134,438

Net income
Banking	$	117,844	$	101,226	$	106,409
FirsTech		1,527		2,372		4,060
Wealth Management		18,570		13,181		11,135
Other		(14,492)		(16,435)		(18,651)
Total net income	$	123,449	$	100,344	$	102,953

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Leases

12 Months Ended

Dec. 31, 2021

Leases

Leases

Note 22. Leases

Busey as the Lessee

The Company has operating leases consisting primarily of equipment leases and real estate leases for banking centers, ATM locations, and office space. The following table summarizes lease related information and balances the Company reported in its Consolidated Balance Sheets for the periods presented (dollars in thousands):


	As of December 31,
	2021			2020
Lease balances
Right of use assets	$	10,533		$	7,714
Lease liabilities		10,591			7,757

Supplemental information
Year through which lease terms extend		2031			2032
Weighted average remaining lease term (in years)		6.47			5.93
Weighted average discount rate		2.16	%		2.82	%

The following table represents lease costs and cash flows related to leases for the periods presented (dollars in thousands):


	Years Ended December 31,
	2021		2020		2019
Lease costs
Operating lease costs	$	2,464	$	2,524	$	2,364
Variable lease costs		540		416		432
Short-term lease costs		49		35		84
Total lease cost⁽¹⁾	$	3,053	$	2,975	$	2,880

Cash flows related to leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments	$	2,417	$	2,526	$	2,296
Operating lease cash flows – Liability reduction		2,217		2,289		2,010
Right of use assets obtained during the period in exchange for operating lease liabilities⁽²⁾		5,818		743		923

(1)

Rent expense is included in net occupancy and equipment expense in the Consolidated Statements of Income.

(2)

The year ended December 31, 2021, includes $0.4 million related to a lease obtained in the acquisition of CAC.

At December 31, 2021, the Company was obligated under noncancelable operating leases for office space and other commitments.

Future undiscounted lease payments with initial terms of one year or more, are as follows (dollars in thousands):


	As of
	December 31, 2021
Rent commitments
2022	$	2,271
2023		2,098
2024		1,650
2025		1,413
2026		1,164
Thereafter		2,766
Total undiscounted cash flows		11,362
Less: Amounts representing interest		771
Present value of net future minimum lease payments	$	10,591

Busey as the Lessor

Busey occasionally leases parking lots and office space to outside parties. Further, in connection with the acquisition of CAC, the Company acquired two office buildings in Glenview, IL and one office building in Northbrook, IL, along with operating leases for space within these buildings that is rented to outside parties. Revenues recorded in connection with these leases and reported in other income on our Consolidated Statements of Income are summarized as follows (dollars in thousands):


	Years Ended December 31,
	2021		2020		2019
Rental income	$	566	$	228	$	263

Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2021

Parent Company Only Financial Information

Parent Company Only Financial Information

Note 23. Parent Company Only Financial Information

Condensed financial data for First Busey Corporation is presented below.

CONDENSED BALANCE SHEETS

(dollars in thousands)


	As of December 31,
	2021		2020
Assets
Cash and cash equivalents	$	78,217	$	129,183
Equity securities		13,571		5,530
Investments in subsidiaries:
Bank		1,565,226		1,417,130
Non-bank		2,812		2,746
Premises and equipment, net		30		51
Other assets		22,444		21,664
Total assets	$	1,682,300	$	1,576,304

Liabilities and Stockholders' Equity
Liabilities:
Short-term borrowings	$	12,000	$	—
Long-term debt		42,000		—
Senior notes, net of unamortized issuance costs		39,944		39,809
Subordinated notes, net of unamortized issuance costs		182,773		182,226
Junior subordinated debentures owed to unconsolidated trusts		71,635		71,468
Other liabilities		14,836		12,732
Total liabilities		363,188		306,235

Total stockholders' equity		1,319,112		1,270,069
Total liabilities and stockholders' equity	$	1,682,300	$	1,576,304

CONDENSED STATEMENTS OF INCOME

(dollars in thousands)


	Years Ended December 31,
	2021		2020		2019
Operating income:
Dividends from subsidiaries:
Bank	$	60,000	$	122,000	$	70,000
Non-bank		1,745		—		—
Interest income		79		154		441
Unrealized gains (losses) recognized on equity securities		3,041		(393)		(759)
Other income		12,109		10,083		10,224
Total operating income		76,974		131,844		79,906

Expense:
Salaries, wages, and employee benefits		17,914		16,205		15,288
Interest expense		15,163		12,056		10,054
Operating expense		7,429		7,685		8,960
Total expense		40,506		35,946		34,302

Income (loss) before income tax benefit and equity in undistributed (in excess of) net income of subsidiaries		36,468		95,898		45,604
Income tax benefit		8,974		7,727		5,389
Income (loss) before equity in undistributed (in excess of) net income of subsidiaries		45,442		103,625		50,993

Equity in undistributed (in excess of) net income of subsidiaries:
Bank		77,941		(5,221)		51,604
Non-bank		66		1,940		356
Net income	$	123,449	$	100,344	$	102,953

CONDENSED STATEMENTS OF CASH FLOWS

(dollars in thousands)


	Years Ended December 31,
	2021		2020		2019
Cash Flows Provided by (Used in) Operating Activities
Net income	$	123,449	$	100,344	$	102,953
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		882		648		420
Distributions more (less) than net income of subsidiaries		(78,007)		3,281		(51,961)
Unrealized (gains) losses recognized on equity securities		(3,041)		393		759
Stock-based compensation		7,864		7,135		3,997
Changes in assets and liabilities:
(Increase) decrease in other assets		(1,186)		405		(4,279)
Increase (decrease) in other liabilities		(3,302)		(5,772)		(1,280)
Net cash provided by (used in) operating activities		46,659		106,434		50,609

Cash Flows Provided by (Used in) Investing Activities
Purchases of equity securities		(5,000)		—		(520)
Net cash paid for acquisitions		(61,656)		—		(90,722)
Purchases of premises and equipment		(15)		(19)		(31)
Net cash provided by (used in) investing activities		(66,671)		(19)		(91,273)

Cash Flows Provided by (Used in) Financing Activities
Cash paid for withholding taxes on stock-based payments		(997)		(635)		(863)
Cash dividends paid		(50,764)		(48,012)		(45,171)
Repayments of borrowings		(18,500)		(74,000)		(6,000)
Proceeds from issuance of debt		72,500		142,634		60,000
Proceeds from stock options exercised		—		101		169
Purchase of treasury stock		(33,043)		(12,272)		(24,292)
Common stock issuance costs		(150)		—		(234)
Net cash provided (used in) by financing activities		(30,954)		7,816		(16,391)

Net increase (decrease) in cash and cash equivalents		(50,966)		114,231		(57,055)
Cash and cash equivalents, beginning of period		129,183		14,952		72,007

Cash and cash equivalents, ending of period	$	78,217	$	129,183	$	14,952

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Significant Accounting Policies

Nature of operations

The significant accounting and reporting policies for the Company and its subsidiaries follow:

Principles of consolidation

Use of Estimates

Use of estimates

Comprehensive income (loss)

Trust assets

Cash and cash equivalents

Securities

The Company considers the following factors in assessing whether the decline is due to a credit loss:

●

Extent to which the fair value is less than the amortized cost basis

●

Payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future

●

Failure of the issuer of the security to make scheduled interest or principal payments

●

Any changes to the rating of the security by a rating agency

Equity securities are carried at fair value with changes in fair value recognized in earnings.

Loans held for sale

Loan servicing

Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned.

Portfolio loans

Troubled debt restructurings

Assets purchased with credit deterioration

Allowance for credit losses

Premises and equipment, net


Asset Description	Estimated Useful Life
Buildings and improvements	3 — 40	years
Furniture and equipment	3 — 10	years

Leases

Long-lived assets

Other real estate owned and other repossessed assets

Goodwill and other intangibles

Other intangible assets consist of core deposit and acquired customer relationship intangible assets arising from acquisitions and are amortized over their estimated useful lives.

Cash surrender value of bank-owned life insurance

Cash surrender value of bank owned life insurance

Other asset investments

The following table summarizes the impact of the Company’s other asset investments on our Consolidated Balance Sheets for the periods indicated (dollars in thousands):


		As of December 31,
	Location	2021		2020
Other asset investments
Funded investments	Other assets	$	37,417		20,368
Unfunded investments	Other assets		52,765		16,776
Other asset investments		$	90,182		37,144

Unfunded investment obligations	Other liabilities	$	(52,765)	$	(16,776)

Transfers of financial assets

Income taxes

At December 31, 2021, the Company was not under examination by any tax authority.

Treasury Stock

Stock-based employee compensation

The Company has outstanding stock options assumed from acquisitions.

See “Note 14. Stock-based Compensation” for further discussion.

Segment disclosure

Business Combinations

Derivative Financial Instruments

Interest Rate Swaps Designated as Cash Flow Hedges

Interest Rate Swaps Not Designated as Hedges

Interest Rate Lock Commitments

Forward Sales Commitments

Risk Participation Agreements

Off-balance sheet arrangements

Off-balance-sheet arrangements

Fair value of financial instruments

Revenue

Wealth Management Fees

Payment Technology Solutions

Fees for Customer Services

Reclassifications

Subsequent Events

Subsequent events

Impact of recently adopted accounting standards

Recently issued accounting standards

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Significant Accounting Policies

Schedule of estimated useful lives for premises and equipment


Asset Description	Estimated Useful Life
Buildings and improvements	3 — 40	years
Furniture and equipment	3 — 10	years

Impact of the Company's other asset investments

The following table summarizes the impact of the Company’s other asset investments on our Consolidated Balance Sheets for the periods indicated (dollars in thousands):


		As of December 31,
	Location	2021		2020
Other asset investments
Funded investments	Other assets	$	37,417		20,368
Unfunded investments	Other assets		52,765		16,776
Other asset investments		$	90,182		37,144

Unfunded investment obligations	Other liabilities	$	(52,765)	$	(16,776)

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2021

CAC

Schedule of fair value estimates of assets acquired and liabilities assumed

Estimated fair values of the assets acquired and liabilities assumed, as well as the fair value of consideration transferred, were as follows (dollars in thousands):


	CAC
	May 31, 2021
Assets acquired
Cash and cash equivalents	$	298,637
Securities		702,367
Portfolio loans, net of ACL		430,470
Premises and equipment		17,034
Other intangible assets		17,340
Mortgage servicing rights		629
Other assets		8,176
Total assets acquired		1,474,653

Liabilities assumed
Deposits		1,315,671
Other borrowings		16,651
Other liabilities		19,205
Total liabilities assumed		1,351,527

Net assets acquired	$	123,126

Consideration paid:
Cash	$	70,358
Common stock		59,105
Total consideration paid	$	129,463

Goodwill	$	6,337

Debt Securities (Tables)

12 Months Ended

Dec. 31, 2021

Debt Securities

Schedule of amortized cost, unrealized gains and losses and fair values of securities classified available for sale and held to maturity

The table below provides the amortized cost, unrealized gains and losses, and fair values of debt securities, summarized by major category (dollars in thousands):


	As of December 31, 2021
	Amortized		Unrealized				Fair
	Cost		Gross Gains		Gross Losses		Value
Debt securities available for sale
U.S. Treasury securities	$	166,768	$	41	$	(1,047)	$	165,762
Obligations of U.S. government corporations and agencies		37,579		891		—		38,470
Obligations of states and political subdivisions		300,602		7,760		(1,493)		306,869
Asset-backed securities		492,055		295		(164)		492,186
Commercial mortgage-backed securities		625,339		3,425		(13,766)		614,998
Residential mortgage-backed securities		2,095,104		8,889		(34,680)		2,069,313
Corporate debt securities		296,076		1,081		(3,504)		293,653
Total debt securities available for sale	$	4,013,523	$	22,382	$	(54,654)	$	3,981,251


	As of December 31, 2020
	Amortized		Unrealized				Fair
	Cost		Gross Gains		Gross Losses		Value
Debt securities available for sale
U.S. Treasury securities	$	27,481	$	356	$	—	$	27,837
Obligations of U.S. government corporations and agencies		67,406		2,162		(49)		69,519
Obligations of states and political subdivisions		292,940		11,779		(8)		304,711
Commercial mortgage-backed securities		408,716		10,212		(312)		418,616
Residential mortgage-backed securities		1,344,047		24,571		(303)		1,368,315
Corporate debt securities		70,953		1,237		(1)		72,189
Total debt securities available for sale	$	2,211,543	$	50,317	$	(673)	$	2,261,187

Schedule of amortized cost and fair value of debt securities available for sale and held to maturity by contractual maturity


	As of December 31, 2021
	Amortized		Fair
	Cost		Value
Debt securities available for sale
Due in one year or less	$	129,260	$	129,848
Due after one year through five years		564,284		563,473
Due after five years through ten years		356,782		362,057
Due after ten years		2,963,197		2,925,873
Total debt securities available for sale	$	4,013,523	$	3,981,251

Schedule of realized gains and losses related to sales of securities

Realized gains and losses related to sales and calls of debt securities available for sale are summarized as follows (dollars in thousands):


	Years Ended December 31,
	2021		2020		2019
Realized gains and losses on sales of debt securities
Gross security gains	$	543	$	1,732	$	1,318
Gross security (losses)		(514)		(8)		(585)
Net gains (losses) on sales of debt securities⁽¹⁾	$	29	$	1,724	$	733

(1)

Net gains (losses) on sales of securities reported on the Consolidated Statements of Income include the sale of equity securities, excluded in this table.

Schedule of securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position


	As of December 31, 2021
	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Debt securities available for sale
U.S. Treasury securities	$	163,653	$	(1,047)	$	—	$	—	$	163,653	$	(1,047)
Obligations of states and political subdivisions		92,680		(1,493)		—		—		92,680		(1,493)
Asset-backed securities		89,983		(164)		—		—		89,983		(164)
Commercial mortgage-backed securities		389,078		(10,186)		85,905		(3,580)		474,983		(13,766)
Residential mortgage-backed securities		1,700,187		(33,453)		20,538		(1,227)		1,720,725		(34,680)
Corporate debt securities		241,153		(3,504)		—		—		241,153		(3,504)
Total temporarily impaired securities	$	2,676,734	$	(49,847)	$	106,443	$	(4,807)	$	2,783,177	$	(54,654)


	As of December 31, 2020
	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Debt securities available for sale
Obligations of U.S. government corporations and agencies	$	—	$	—	$	4,957	$	(49)	$	4,957	$	(49)
Obligations of states and political subdivisions		762		(8)		—		—		762		(8)
Commercial mortgage-backed securities		129,655		(312)		—		—		129,655		(312)
Residential mortgage-backed securities		89,997		(300)		139		(3)		90,136		(303)
Corporate debt securities		1,499		(1)		—		—		1,499		(1)
Total temporarily impaired securities	$	221,913	$	(621)	$	5,096	$	(52)	$	227,009	$	(673)

Portfolio Loans (Tables)

12 Months Ended

Dec. 31, 2021

Portfolio Loans

Distribution of portfolio loans

Distributions of portfolio loans were as follows (dollars in thousands):


	As of December 31,
	2021		2020
Portfolio loans
Commercial	$	1,943,886	$	2,014,576
Commercial real estate		3,119,807		2,892,535
Real estate construction		385,996		461,786
Retail real estate		1,512,976		1,407,852
Retail other		226,333		37,428
Total portfolio loans	$	7,188,998	$	6,814,177

ACL		(87,887)		(101,048)
Portfolio loans, net	$	7,101,111	$	6,713,129

Summary of risk grades segregated by category of portfolio loans (excluding accretable purchase accounting adjustments and clearings)

The following table is a summary of risk grades segregated by category of portfolio loans (dollars in thousands):


	As of December 31, 2021
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual		Total
Portfolio loans
Commercial	$	1,747,756	$	93,582	$	69,427	$	26,117	$	7,004	$	1,943,886
Commercial real estate		2,682,441		343,304		49,695		38,394		5,973		3,119,807
Real estate construction		369,797		13,793		6		2,400		—		385,996
Retail real estate		1,491,845		12,374		1,992		3,867		2,898		1,512,976
Retail other		226,262		—		—		—		71		226,333
Total portfolio loans	$	6,518,101	$	463,053	$	121,120	$	70,778	$	15,946	$	7,188,998


	As of December 31, 2020
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual		Total
Portfolio loans
Commercial	$	1,768,755	$	136,948	$	72,447	$	27,903	$	8,523	$	2,014,576
Commercial real estate		2,393,372		383,277		75,486		34,897		5,503		2,892,535
Real estate construction		434,681		24,481		77		2,546		1		461,786
Retail real estate		1,382,616		10,264		2,471		3,702		8,799		1,407,852
Retail other		37,324		—		—		—		104		37,428
Total portfolio loans	$	6,016,748	$	554,970	$	150,481	$	69,048	$	22,930	$	6,814,177

Risk grades of portfolio loans, further sorted by origination

Risk grades of portfolio loans, further sorted by origination year, are as follows (dollars in thousands):


	As of December 31, 2021
	Term Loans Amortized Cost Basis by Origination Year													Revolving
Risk Grade Ratings	2021		2020		2019		2018		2017			Prior		loans		Total
Commercial
Pass	$	512,729	$	228,811	$	107,877	$	84,873	$	74,351	$	122,418	$	616,697	$	1,747,756
Watch		13,847		5,913		14,274		5,060		1,361		2,866		50,261		93,582
Special Mention		7,062		898		5,961		4,025		6,790		11,845		32,846		69,427
Substandard		3,595		3,362		3,136		1,855		1,125		5,459		7,585		26,117
Substandard non-accrual		4,126		364		142		—		320		52		2,000		7,004
Total commercial		541,359		239,348		131,390		95,813		83,947		142,640		709,389		1,943,886

Commercial real estate
Pass		969,548		637,550		425,850		235,928		200,373		198,002		15,190		2,682,441
Watch		51,560		38,820		123,324		48,088		46,761		32,608		2,143		343,304
Special Mention		9,542		7,060		6,585		10,098		6,357		9,870		183		49,695
Substandard		21,002		3,781		1,218		11,451		521		421		—		38,394
Substandard non-accrual		112		181		359		1,893		3,407		21		—		5,973
Total commercial real estate		1,051,764		687,392		557,336		307,458		257,419		240,922		17,516		3,119,807

Real estate construction
Pass		202,082		123,491		31,927		3,155		738		1,223		7,181		369,797
Watch		7,886		4,159		54		—		1,574		120		—		13,793
Special Mention		—		—		6		—		—		—		—		6
Substandard		—		2,400		—		—		—		—		—		2,400
Substandard non-accrual		—		—		—		—		—		—		—		—
Total real estate construction		209,968		130,050		31,987		3,155		2,312		1,343		7,181		385,996

Retail real estate
Pass		523,541		215,068		96,617		79,158		82,478		281,737		213,246		1,491,845
Watch		4,100		2,460		1,780		1,312		343		150		2,229		12,374
Special Mention		1,965		27		—		—		—		—		—		1,992
Substandard		1,369		232		12		71		165		1,687		331		3,867
Substandard non-accrual		235		63		—		16		227		1,705		652		2,898
Total retail real estate		531,210		217,850		98,409		80,557		83,213		285,279		216,458		1,512,976

Retail other
Pass		59,366		22,305		26,126		16,189		7,180		1,326		93,770		226,262
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Substandard non-accrual		34		10		—		14		13		—		—		71
Total retail other		59,400		22,315		26,126		16,203		7,193		1,326		93,770		226,333

Total portfolio loans	$	2,393,701	$	1,296,955	$	845,248	$	503,186	$	434,084	$	671,510	$	1,044,314	$	7,188,998


	As of December 31, 2020
	Term Loans Amortized Cost Basis by Origination Year													Revolving
Risk Grade Ratings	2020		2019		2018		2017		2016			Prior		loans		Total
Commercial
Pass	$	812,536	$	158,307	$	107,565	$	93,190	$	61,847	$	79,970	$	455,340	$	1,768,755
Watch		16,544		22,247		14,954		13,724		2,577		10,943		55,959		136,948
Special Mention		6,402		2,671		2,069		7,164		6,763		13,733		33,645		72,447
Substandard		7,772		3,791		2,371		1,939		819		1,233		9,978		27,903
Substandard non-accrual		150		3,045		451		2,168		641		68		2,000		8,523
Total commercial		843,404		190,061		127,410		118,185		72,647		105,947		556,922		2,014,576

Commercial real estate
Pass		717,559		503,977		360,573		384,843		180,555		227,068		18,797		2,393,372
Watch		88,297		110,526		90,412		33,734		32,887		27,023		398		383,277
Special Mention		16,490		8,858		10,490		10,505		7,102		21,808		233		75,486
Substandard		17,445		4,166		1,491		7,812		2,111		1,377		495		34,897
Substandard non-accrual		1,091		776		821		882		286		1,647		—		5,503
Total commercial real estate		840,882		628,303		463,787		437,776		222,941		278,923		19,923		2,892,535

Real estate construction
Pass		179,232		171,663		64,025		1,468		761		1,444		16,088		434,681
Watch		18,485		3,657		337		1,838		164						24,481
Special Mention		67		10		—		—		—		—		—		77
Substandard		2,400		—		—		—		146		—		—		2,546
Substandard non-accrual		—		—		—		—		—		1		—		1
Total real estate construction		200,184		175,330		64,362		3,306		1,071		1,445		16,088		461,786

Retail real estate
Pass		319,302		162,711		135,065		136,427		140,600		257,147		231,364		1,382,616
Watch		2,715		2,053		1,396		349		579		233		2,939		10,264
Special Mention		509		—		—		—		1,962		—		—		2,471
Substandard		899		96		56		26		727		1,631		267		3,702
Substandard non-accrual		687		78		646		1,147		233		4,815		1,193		8,799
Total retail real estate		324,112		164,938		137,163		137,949		144,101		263,826		235,763		1,407,852

Retail other
Pass		8,357		9,430		5,600		2,516		691		440		10,290		37,324
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Substandard non-accrual		14		7		5		15		5		57		1		104
Total retail other		8,371		9,437		5,605		2,531		696		497		10,291		37,428

Total portfolio loans	$	2,216,953	$	1,168,069	$	798,327	$	699,747	$	441,456	$	650,638	$	838,987	$	6,814,177

Summary of portfolio loans that are past due and still accruing or on a non-accrual status

An analysis of the amortized cost basis of portfolio loans that are past due and still accruing, or on a non-accrual status, is as follows (dollars in thousands):


	As of December 31, 2021
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Past due and non-accrual loans
Commercial	$	363	$	10	$	213	$	7,004
Commercial real estate		151		441		—		5,973
Real estate construction		56		—		—		—
Retail real estate		3,312		1,830		693		2,898
Retail other		82		16		—		71
Total past due and non-accrual loans	$	3,964	$	2,297	$	906	$	15,946


	As of December 31, 2020
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Past due and non-accrual loans
Commercial	$	243	$	—	$	—	$	8,523
Commercial real estate		—		—		—		5,503
Real estate construction		237		235		—		1
Retail real estate		6,248		400		1,305		8,799
Retail other		66		149		66		104
Total past due and non-accrual loans	$	6,794	$	784	$	1,371	$	22,930

Summary of TDR loans

TDR loan balances are summarized as follows (dollars in thousands):


	As of December 31,
	2021		2020
TDRs
In compliance with modified terms	$	1,801	$	3,814
30 – 89 days past due		—		15
Non-performing TDRs		551		1,249
Total TDRs	$	2,352	$	5,078

Loans that were designated as TDRs during the periods presented are summarized as follows (dollars in thousands):


	Newly Designated TDRs
			Recorded Investment ⁽²⁾
	Number of		Rate		Payment
	Contracts ⁽¹⁾		Modification ⁽³⁾		Modification ⁽³⁾
December 31, 2021
Commercial		1	$	364	$	—

December 31, 2020
Commercial		3	$	130	$	—
Commercial real estate		1		651		—
Retail real estate		4		—		986
Total		8	$	781	$	986

December 31, 2019
Commercial		2	$	342	$	—
Commercial real estate ⁽⁴⁾		1		—		—
Real estate construction		1		185		—
Total		4	$	527	$	—

(1)

Total number of contracts that were newly designated as TDRs during years ended on the dates indicated.

(2)

Recorded investment for newly designated TDR’s that were still outstanding as of the dates indicated.

(3)

TDRs may include multiple concessions; those that include an interest rate concession and payment concession are shown in the rate modification columns.

(4)

One commercial real estate TDR that was entered into during the year ended December 31, 2019, subsequently had payment defaults; it was then transferred to OREO by December 31, 2019.

Schedule of defaults occurring during the period designated as TDRs


	Year Ended December 31,
	2021		2020		2019
Defaults on loans designated as TDRs within the last 12 months
Commercial	$	—	$	—	$	—
Commercial real estate		—		—		3,277

Schedule of suspended requirements under GAAP related to TDR classification

The Company’s TDR loan totals do not include the following modified loans with payment deferrals that fall under the CARES Act or Interagency Statement that suspended requirements under GAAP related to TDR classification (dollars in thousands):


	As of December 31, 2021				As of December 31, 2020
	Number of		Recorded		Number of		Recorded
	Contracts		Investment		Contracts		Investment
COVID-19 loan modifications
Commercial loans:
Full payment deferral ⁽¹⁾		—	$	—		46	$	37,150
Interest-only deferrals		32		128,730		23		85,270
Blended principal and interest and interest-only deferrals		—		—		29		86,204
Total commercial loans		32		128,730		98		208,624

Retail loans:
Mortgage and personal loan deferrals		2		137		351		47,671
Purchased home equity line of credit pool deferrals		—		—		1		119
Total retail loans		2		137		352		47,790

Total COVID-19 loans modifications		34	$	128,867		450	$	256,414

(1)

Includes SBA loans with additional 90-day full payment deferrals granted by Busey.

Schedule of details of impaired loans, segregated by category


	As of and for the Year Ended December 31, 2021
	Unpaid		Recorded Investment								Average
	Principal		With No		With				Related		Recorded
	Balance		Allowance		Allowance		Total		Allowance		Investment
Loans evaluated individually
Commercial	$	10,247	$	498	$	6,490	$	6,988	$	3,564	$	8,791
Commercial real estate		6,456		5,750		—		5,750		—		6,390
Real estate construction		272		272		—		272		—		282
Retail real estate		2,514		2,345		25		2,370		25		4,093
Retail other		—		—		—		—		—		—
Total loans evaluated individually	$	19,489	$	8,865	$	6,515	$	15,380	$	3,589	$	19,556


	As of and for the Year Ended December 31, 2020
	Unpaid		Recorded Investment								Average
	Principal		With No		With				Related		Recorded
	Balance		Allowance		Allowance		Total		Allowance		Investment
Loans evaluated individually
Commercial	$	16,771	$	4,001	$	4,371	$	8,372	$	1,600	$	7,920
Commercial real estate		7,406		6,067		—		6,067		—		9,349
Real estate construction		292		292		—		292		—		581
Retail real estate		5,873		5,490		25		5,515		25		7,439
Retail other		—		—		—		—		—		10
Total loans evaluated individually	$	30,342	$	15,850	$	4,396	$	20,246	$	1,625	$	25,299

Schedule of activity on the allowance for loan losses


	As of and for the Year Ended December 31, 2021
			Commercial		Real Estate		Retail
	Commercial		Real Estate		Construction		Real Estate		Retail Other		Total
ACL beginning balance	$	23,866	$	46,230	$	8,193	$	21,992	$	767	$	101,048
Day 1 PCD ⁽¹⁾		3,546		336		—		129		167		4,178
Provision for credit losses		(2,160)		(7,651)		(3,180)		(4,456)		2,346		(15,101)
Charged-off		(2,026)		(925)		(209)		(1,145)		(478)		(4,783)
Recoveries		629		259		298		1,069		290		2,545
ACL ending balance	$	23,855	$	38,249	$	5,102	$	17,589	$	3,092	$	87,887

(1)

The Day 1 PCD is attributable to the CAC acquisition.


	As of and for the Year Ended December 31, 2020
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance, prior to adoption of ASC 326-30	$	18,291	$	21,190	$	3,204	$	10,495	$	568	$	53,748
Adoption of ASC 326-30		715		9,306		2,954		3,292		566		16,833
Provision for credit losses		10,832		17,511		1,452		9,050		(48)		38,797
Charged-off		(6,376)		(1,972)		(18)		(2,057)		(665)		(11,088)
Recoveries		404		195		601		1,212		346		2,758
ACL ending balance	$	23,866	$	46,230	$	8,193	$	21,992	$	767	$	101,048


	As of and for the Year Ended December 31, 2019
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	17,829	$	21,137	$	2,723	$	8,471	$	488	$	50,648
Provision for credit losses		4,893		3,002		(70)		2,102		479		10,406
Charged-off		(6,478)		(3,257)		—		(1,162)		(863)		(11,760)
Recoveries		2,047		308		551		1,084		464		4,454
Ending balance	$	18,291	$	21,190	$	3,204	$	10,495	$	568	$	53,748

Schedule of allowance for loan losses and recorded investments in portfolio loans, by category

The following tables present the ACL and amortized cost of portfolio loans by category (dollars in thousands):


	As of December 31, 2021
	Portfolio Loans						ACL Attributed to Portfolio Loans
	Collectively		Individually				Collectively		Individually
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Impairment		Impairment		Total		Impairment		Impairment		Total
Portfolio loan category
Commercial	$	1,936,898	$	6,988	$	1,943,886	$	20,291	$	3,564	$	23,855
Commercial real estate		3,114,057		5,750		3,119,807		38,249		—		38,249
Real estate construction		385,724		272		385,996		5,102		—		5,102
Retail real estate		1,510,606		2,370		1,512,976		17,564		25		17,589
Retail other		226,333		—		226,333		3,092		—		3,092
Total portfolio loans and related ACL	$	7,173,618	$	15,380	$	7,188,998	$	84,298	$	3,589	$	87,887


	As of December 31, 2020
	Portfolio Loans						ACL Attributed to Portfolio Loans
	Collectively		Individually				Collectively		Individually
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Impairment		Impairment		Total		Impairment		Impairment		Total
Portfolio loan category
Commercial	$	2,006,204	$	8,372	$	2,014,576	$	22,266	$	1,600	$	23,866
Commercial real estate		2,886,468		6,067		2,892,535		46,230		—		46,230
Real estate construction		461,494		292		461,786		8,193		—		8,193
Retail real estate		1,402,337		5,515		1,407,852		21,967		25		21,992
Retail other		37,428		—		37,428		767		—		767
Total portfolio loans and related ACL	$	6,793,931	$	20,246	$	6,814,177	$	99,423	$	1,625	$	101,048

Other Real Estate Owned and Other Repossessed Assets (Tables)

12 Months Ended

Dec. 31, 2021

Other Real Estate Owned and Other Repossessed Assets

Summary of OREO and other repossessed assets Balances


	As of December 31,
	2021		2020
OREO
Commercial	$	2,839	$	4,206
Residential		235		364
Total OREO		3,074		4,570
Other repossessed assets		1,342		1
OREO and other repossessed assets	$	4,416	$	4,571

Summary of activity related to OREO and other repossessed assets

The following table summarizes activity related to OREO and other repossessed assets (dollars in thousands):


	As of and for the Years Ended December 31,
	2021		2020
Changes in OREO and other repossessed assets
OREO and other repossessed assets beginning balance	$	4,571	$	3,057
Additions, transfers from loans		1,610		2,867
Sales		(1,721)		(1,282)
Cash payments collected		(43)		(3)
Impairment of OREO and other repossessed assets		(1)		(68)
OREO and other repossessed assets ending balance	$	4,416	$	4,571

Premises and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2021

Premises and Equipment, net

Summary of premises and equipment, net

Premises and equipment, net are summarized as follows (dollars in thousands):


	As of December 31,
	2021		2020
Premises and equipment
Land and improvements	$	45,595	$	40,762
Buildings and improvements		132,011		130,610
Furniture and equipment		54,473		53,766
Premises and equipment, gross		232,079		225,138
Accumulated depreciation		95,932		89,947
Premises and equipment, net	$	136,147	$	135,191

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Other Intangible Assets

Schedule of carrying amount of goodwill by operating segment

The carrying amount of goodwill by operating segment is as follows (dollars in thousands):


	As of December 31,
	2021		2020
Goodwill
Banking	$	294,773	$	288,436
FirsTech		8,992		8,992
Wealth Management		14,108		14,108
Total goodwill	$	317,873	$	311,536

Schedule of other intangible asset disclosures

Core deposit and customer relationship intangible assets are amortized over the estimated period benefited. Intangible asset disclosures are as follows (dollars in thousands):


	As of and for the Years Ended December 31,
	2021						2020
			Customer						Customer
	Core deposit		relationship				Core deposit		relationship
	intangible		intangible		Total		intangible		intangible		Total
Intangibles
Intangible assets, gross	$	99,065	$	33,138	$	132,203	$	90,256	$	24,608	$	114,864
Accumulated amortization		55,161		18,991		74,152		46,909		15,970		62,879
Intangible assets, net	$	43,904	$	14,147	$	58,051	$	43,347	$	8,638	$	51,985

Amortization expense	$	8,253	$	3,021	$	11,274	$	7,753	$	2,255	$	10,008

Schedule of carrying amount of amortized intangible assets

Future expense for the amortization of intangible assets, as estimated, is summarized in the table below for the periods presented (dollars in thousands):


	As of December 31, 2021
			Customer
	Core deposit		relationship
	intangible		intangible		Total
Estimated amortization expense
2022	$	8,315	$	3,313	$	11,628
2023		7,616		2,816		10,432
2024		6,902		2,318		9,220
2025		5,956		1,887		7,843
2026		5,227		1,479		6,706
Thereafter		9,888		2,334		12,222
Total estimated amortization expense	$	43,904	$	14,147	$	58,051

Deposits (Tables)

12 Months Ended

Dec. 31, 2021

Deposits

Schedule of composition of deposits

The composition of deposits is as follows (dollars in thousands):


	As of December 31,
	2021		2020
Deposits
Demand deposits, noninterest-bearing	$	3,670,267	$	2,552,039
Interest-bearing transaction deposits		2,720,417		2,263,093
Saving deposits and money market deposits		3,442,244		2,743,369
Time deposits		935,649		1,119,348
Total deposits	$	10,768,577	$	8,677,849


	As of December 31,
	2021		2020
Brokered savings deposits and money market deposits	$	2,248	$	2,251
Brokered time deposits		266		5,257
Aggregate amount of time deposits with a minimum denomination of $100,000		454,649		568,735
Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000		137,449		192,563

Schedule of maturities of time deposits

Scheduled maturities of time deposits are as follows (dollars in thousands):


	As of
	December 31, 2021
Time deposits by schedule of maturities
2022	$	643,826
2023		191,995
2024		70,111
2025		16,149
2026		12,834
Thereafter		734
Time deposits	$	935,649

Borrowings (Tables)

12 Months Ended

Dec. 31, 2021

Borrowings

Schedule of distribution of securities sold under agreements to repurchase and short-term borrowings and weighted average interest rates

Securities sold under agreements to repurchase were as follows (dollars in thousands):


	As of December 31,
	2021			2020
Securities sold under agreements to repurchase	$	270,139		$	175,614
Weighted average rate for securities sold under agreements to repurchase		0.08	%		0.13	%

Summary of long-term debt

Short-term borrowings are summarized as follows (dollars in thousands):


	As of December 31,
	2021		2020
Short-term borrowings
FHLB advances maturing in less than one year from date of origination, and the current portion of long-term FHLB advances due within 12 months	$	5,678	$	4,658
Term Loan, current portion due within 12 months		12,000		—
Total short-term debt	$	17,678	$	4,658

Long-term debt is summarized as follows (dollars in thousands):


	As of December 31,
	2021		2020
Long-term debt
Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock	$	4,056	$	4,757
Term Loan		42,000		—
Total long-term debt	$	46,056	$	4,757

Schedule of unamortized debt issuance cost


	As of December 31,
	2021		2020
Unamortized debt issuance costs
Senior notes issued in 2017	$	56	$	191
Subordinated notes issued in 2017		549		651
Subordinated notes issued in 2020		1,678		2,123
Total unamortized debt issuance costs	$	2,283	$	2,965

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-Topic 210
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-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
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-Paragraph 3
-Subparagraph (SX 210.12-04(a))
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Reference 7: http://www.xbrl.org/2003/role/exampleRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823

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-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21475-112644

+ Details

Regulatory Capital (Tables)

12 Months Ended

Dec. 31, 2021

Regulatory Capital

Schedule of applicable holding company and bank regulatory capital requirements

The following tables summarize regulatory capital requirements applicable to the holding company and its subsidiary bank (dollars in thousands):


	As of December 31, 2021
									Minimum
					Minimum				To Be Well
	Actual				Capital Requirement				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Common Equity Tier 1 Capital to Risk Weighted Assets
Consolidated	$	995,874	11.85	%	$	378,334	4.50	%	$	546,482	6.50	%
Busey Bank	$	1,241,303	14.81	%	$	377,096	4.50	%	$	544,695	6.50	%

Tier 1 Capital to Risk Weighted Assets
Consolidated	$	1,069,874	12.73	%	$	504,445	6.00	%	$	672,594	8.00	%
Busey Bank	$	1,241,303	14.81	%	$	502,795	6.00	%	$	670,394	8.00	%

Total Capital to Risk Weighted Assets
Consolidated	$	1,320,187	15.70	%	$	672,594	8.00	%	$	840,742	10.00	%
Busey Bank	$	1,306,616	15.59	%	$	670,394	8.00	%	$	837,992	10.00	%

Leverage Ratio of Tier 1 Capital to Average Assets
Consolidated	$	1,069,874	8.52	%	$	502,336	4.00	%		N/A	N/A
Busey Bank	$	1,241,303	9.91	%	$	501,104	4.00	%	$	626,379	5.00	%


	As of December 31, 2020
									Minimum
					Minimum				To Be Well
	Actual				Capital Requirement				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Common Equity Tier 1 Capital to Risk Weighted Assets
Consolidated	$	909,033	12.43	%	$	329,071	4.50	%	$	475,325	6.50	%
Busey Bank	$	1,053,910	14.44	%	$	328,546	4.50	%	$	474,567	6.50	%

Tier 1 Capital to Risk Weighted Assets
Consolidated	$	983,033	13.44	%	$	438,761	6.00	%	$	585,015	8.00	%
Busey Bank	$	1,053,910	14.44	%	$	438,062	6.00	%	$	584,082	8.00	%

Total Capital to Risk Weighted Assets
Consolidated	$	1,245,997	17.04	%	$	585,015	8.00	%	$	731,269	10.00	%
Busey Bank	$	1,131,875	15.50	%	$	584,082	8.00	%	$	730,103	10.00	%

Leverage Ratio of Tier 1 Capital to Average Assets
Consolidated	$	983,033	9.79	%	$	401,717	4.00	%		N/A	N/A
Busey Bank	$	1,053,910	10.52	%	$	400,581	4.00	%	$	500,727	5.00	%

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes

Schedule of the components of income taxes

The components of income taxes consist of (dollars in thousands):


	Years Ended December 31,
	2021		2020		2019
Income tax expense
Current expense:
Federal	$	20,261	$	21,027	$	22,479
State		8,448		12,144		8,910
Deferred expense:
Federal		3,644		(3,657)		(380)
State		1,021		(1,652)		476
Total income tax expense	$	33,374	$	27,862	$	31,485

Schedule of the reconciliation of federal and state income taxes at statutory rates to the income taxes included in the statements of income


	Years Ended December 31,
	2021		2020		2019
Percent of pretax income
Income tax at federal statutory rate	21.0	%	21.0	%	21.0	%
Effect of:
Tax-exempt interest, net	(1.1)	%	(1.6)	%	(1.7)	%
Stock incentive	—	%	0.2	%	(0.1)	%
State income taxes, net	4.5	%	6.5	%	5.5	%
Income on bank owned life insurance	(0.7)	%	(0.9)	%	(0.9)	%
Tax credit investments	(3.6)	%	(3.2)	%	(1.3)	%
Other, net	1.2	%	(0.3)	%	0.9	%
Effective income tax rate	21.3	%	21.7	%	23.4	%

Schedule of the deferred tax assets and liabilities


	As of December 31,
	2021		2020
Deferred taxes
Deferred tax assets:
ACL	$	25,884	$	30,332
Unrealized loss on cash flow hedge		273		871
Unrealized losses on securities available for sale		9,199		—
Stock-based compensation		4,204		2,975
Deferred compensation		55		66
Purchase accounting adjustments		1,213		4,470
Accrued vacation		398		610
Lease liabilities		2,893		2,142
Employee costs		2,847		1,598
Other		390		431
Total deferred tax assets		47,356		43,495

Deferred tax liabilities:
Unrealized gain on securities available for sale		—		(14,151)
Basis in premises and equipment		(1,347)		(348)
Affordable housing partnerships and other investments		(3,696)		(1,995)
Purchase accounting adjustments		(1,362)		(1,835)
Mortgage servicing assets		(2,853)		(3,418)
Basis in core deposit, customer intangible assets, and asset purchase goodwill		(9,485)		(12,714)
Deferred loan origination costs		(2,454)		(2,654)
Right of use assets		(2,877)		(2,130)
Unrealized gain on equity securities		(1,099)		(276)
Other		(560)		(405)
Total deferred tax liabilities		(25,733)		(39,926)

Net deferred tax asset	$	21,623	$	3,569

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2021

Employee Benefit Plans

Schedule of expenses related to the employee benefit plans


	Years Ended December 31,
	2021		2020		2019
Employee benefit plan expenses
Profit-sharing plan	$	6,531	$	5,982	$	5,777
Deferred compensation plan		—		—		80
Total employee benefit plan expenses	$	6,531	$	5,982	$	5,857

Stock-based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Stock-based Compensation

Summary of changes in, the Company's stock option awards


	As of and for the Year Ended December 31, 2021
					Weighted-
			Weighted-		Average
			Average		Remaining
			Exercise		Contractual		Intrinsic
	Shares		Price		Life		Value
Outstanding at beginning of year		39,085	$	23.53		5.88	$	—
Exercised		—		—
Forfeited		—		—
Expired		(7,699)		23.53
Outstanding at end of year		31,386	$	23.53		4.88	$	113

Exercisable at end of year		31,386	$	23.53		4.88	$	113

Summary of changes in the Company's RSU, PSU, and DSU awards


	As of and for the Year Ended December 31, 2021
	RSU Awards				PSU Awards				DSU Awards
			Weighted-				Weighted-				Weighted-
			Average				Average				Average
			Grant Date				Grant Date				Grant Date
	Shares		Fair Value		Shares⁽¹⁾		Fair Value		Shares		Fair Value
Nonvested at beginning of period		1,017,038	$	23.87		15,724	$	16.25		34,263	$	17.18
Granted		260,231		24.26		99,159		23.91		35,664		24.59
Dividend equivalents earned		43,783		23.65		—		—		4,891		23.72
Vested		(143,242)		23.50		—		—		(40,683)		18.24
Forfeited		(29,883)		24.88		(968)		23.48		—		—
Nonvested at end of period		1,147,927	$	23.97		113,915	$	22.86		34,135	$	24.59

Vested and outstanding at end of period										97,297	$	22.02

Schedule of Stock-based compensation expense

The Company recognized compensation expense related to non-vested RSU, PSU, and DSU awards, as well as the 2021 ESPP, as presented in the table below (dollars in thousands):


	Years Ended December 31,
	2021		2020		2019
Stock-based compensation expense
Stock options ⁽¹⁾	$	—	$	—	$	146
RSU awards		5,809		6,493		3,249
PSU awards		979		77		—
DSU awards		962		565		602
2021 ESPP		114		—		—
Total stock-based compensation expense	$	7,864	$	7,135	$	3,997

(1)

Stock option compensation expense recorded in 2019 was attributable to converted options related to the 2017 acquisition of First Community.

Schedule of Unamortized stock-based compensation expense

Unamortized stock-based compensation expense is presented in the table below (dollars in thousands):


	As of December 31,
	2021			2020
Unamortized stock-based compensation
RSU awards	$	10,204		$	10,411
PSU awards		1,547			179
DSU awards		209			294
Total unamortized stock-based compensation	$	11,960		$	10,884

Weighted average period over which expense is to be recognized		2.9	yrs		3.0	yrs

Transactions with Related Parties (Tables)

12 Months Ended

Dec. 31, 2021

Transactions with Related Parties

Schedule of the analysis of the changes in loans to related parties

The following is an analysis of the changes in loans to related parties, as a group (dollars in thousands):


	As of and for the Year Ended
	December 31, 2021
Loans to related parties
Balance at beginning of year	$	41,921
Change in relationship		(2,033)
New loans/advances		31,761
Repayments		(29,092)
Balance at end of year	$	42,557

Outstanding Commitments and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Outstanding Commitments and Contingent Liabilities

Schedule of contractual amount of exposure to off-balance-sheet risk


	As of December 31,
	2021		2020
Financial instruments whose contract amounts represent credit risk
Commitments to extend credit	$	1,983,655	$	1,754,370
Standby letters of credit		32,552		38,937
Total commitments	$	2,016,207	$	1,793,307

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Summary 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 (dollars in thousands):


	As of December 31,
	2021			2020
Notional amount	$	50,000		$	70,000
Weighted average fixed pay rates		1.79	%		1.80	%
Weighted average variable 3-month LIBOR receive rates		0.20	%		0.22	%
Weighted average maturity, in years		2.71	yrs		2.85	yrs
Unrealized gains (losses), net of tax	$	(685)		$	(2,184)

Schedule of interest income (expense) recorded on swap transactions

Interest income (expense) recorded on swap transactions was as follows for the periods presented (dollars in thousands):


	Years Ended December 31,
	2021		2020		2019
Interest income (expense) on swap transactions	$	(1,067)	$	(758)	$	60

Interest rate contract

Summary of Net gains (losses) relating to these derivative instruments


	Years Ended December 31,
	2021		2020		2019
Unrealized gains (losses) on cash flow hedges
Gain (loss) recognized in OCI, net of tax	$	736	$	(2,526)	$	(202)
(Gain) loss reclassified from OCI to interest expense, net of tax		763		542		2
Net change in unrealized gains (losses) on cash flow hedges	$	1,499	$	(1,984)	$	(200)

Interest rate lock commitments and forward sales commitments

Summary of fair values of derivative assets and liabilities recorded in consolidated balance sheet

Amounts and fair values of mortgage banking derivatives included in the Consolidated Balance Sheets are summarized as follows (dollars in thousands):


		As of December 31, 2021				As of December 31, 2020
		Notional		Fair		Notional		Fair
	Location	Amount		Value		Amount		Value
Derivatives with positive fair value
Interest rate lock commitments	Other assets	$	19,384	$	206	$	45,004	$	1,201
Forward sales commitments	Other assets		1,884		10		978		32
Mortgage banking derivatives recorded in other assets		$	21,268	$	216	$	45,982	$	1,233

Derivatives with negative fair value
Interest rate lock commitments	Other liabilities	$	499	$	6	$	118	$	1
Forward sales commitments	Other liabilities		41,002		439		84,964		2,662
Mortgage banking derivatives recorded in other liabilities		$	41,501	$	445	$	85,082	$	2,663

Summary of Net gains (losses) relating to these derivative instruments

Net gains (losses) relating to these derivative instruments are summarized as follows for the periods presented (dollars in thousands):


		Years Ended December 31,
	Location	2021		2020		2019
Net gains (losses)
Interest rate lock commitments	Mortgage revenue	$	1,702	$	9,667	$	3,988
Forward sales commitments	Mortgage revenue		(4,045)		(18,329)		(6,751)
Net gains (losses)		$	(2,343)	$	(8,662)	$	(2,763)

Interest rate swap

Summary of fair values of derivative assets and liabilities recorded in consolidated balance sheet


	As of December 31, 2021
	Derivative Asset				Derivative Liability
	Notional		Fair		Notional		Fair
	Amount		Value		Amount		Value
Derivatives not designated as hedging instruments
Interest rate swaps – pay floating, receive fixed	$	404,572	$	17,839	$	86,784	$	2,259
Interest rate swaps – pay fixed, receive floating		86,784		2,259		404,572		17,839
Total derivatives not designated as hedging instruments	$	491,356	$	20,098	$	491,356	$	20,098


	As of December 31, 2020
	Derivative Asset				Derivative Liability
	Notional		Fair		Notional		Fair
	Amount		Value		Amount		Value
Derivatives not designated as hedging instruments
Interest rate swaps – pay floating, receive fixed	$	394,954	$	32,685	$	—	$	—
Interest rate swaps – pay fixed, receive floating		—		—		394,954		32,685
Total derivatives not designated as hedging instruments	$	394,954	$	32,685	$	394,954	$	32,685

Summary of Net gains (losses) relating to these derivative instruments

Changes in fair value of these derivative assets and liabilities are recorded in noninterest expense in the Consolidated Statements of Income and summarized as follows (dollars in thousands):


		Years Ended December 31,
	Location	2021		2020		2019
Interest rate swaps
Pay floating, receive fixed	Noninterest expense	$	(12,587)	$	20,331	$	10,915
Pay fixed, receive floating	Noninterest expense		12,587		(20,331)		(10,915)
Net change in fair value of interest rate swaps		$	—	$	—	$	—

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Measurements

Schedule of financial assets and financial liabilities measured at fair value on a recurring basis


	As of December 31, 2021
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	165,762	$	—	$	165,762
Obligations of U.S. government corporations and agencies		—		38,470		—		38,470
Obligations of states and political subdivisions		—		306,869		—		306,869
Asset-backed securities		—		492,186		—		492,186
Commercial mortgage-backed securities		—		614,998		—		614,998
Residential mortgage-backed securities		—		2,069,313		—		2,069,313
Corporate debt securities		—		293,653		—		293,653
Equity securities		—		13,571		—		13,571
Loans held for sale		—		23,875		—		23,875
Derivative assets		—		20,314		—		20,314
Derivative liabilities		—		21,501		—		21,501


	As of December 31, 2020
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	27,837	$	—	$	27,837
Obligations of U.S. government corporations and agencies		—		69,519		—		69,519
Obligations of states and political subdivisions		—		304,711		—		304,711
Commercial mortgage-backed securities		—		418,616		—		418,616
Residential mortgage-backed securities		—		1,368,315		—		1,368,315
Corporate debt securities		—		72,189		—		72,189
Equity securities		—		5,530		—		5,530
Loans held for sale		—		42,813		—		42,813
Derivative assets		—		33,918		—		33,918
Derivative liabilities		—		38,403		—		38,403

Schedule of assets and liabilities measured at fair value on a non-recurring basis


	As of December 31, 2021
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	2,926	$	2,926
OREO with subsequent impairment		—		—		51		51
Bank property held for sale with impairment		—		—		10,103		10,103


	As of December 31, 2020
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	2,771	$	2,771
OREO with subsequent impairment		—		—		106		106
Bank property held for sale with impairment		—		—		10,676		10,676

Schedule of quantitative information about Level 3 fair value measurements


	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range
December 31, 2021:	Estimate		Techniques	Input	(Weighted Average)
Loans evaluated individually, net of related allowance	$	2,926	Appraisal of collateral	Appraisal adjustments	-50.0	%	to	-100.0	%	(-55.1)	%
OREO with subsequent impairment		51	Appraisal of collateral	Appraisal adjustments	-33.0	%	to	-100.0	%	(-67.9)	%
Bank property held for sale with impairment		10,103	Appraisal of collateral or real estate listing price	Appraisal adjustments	-0.7	%	to	-70.1	%	(-41.3)	%

December 31, 2020:
Loans evaluated individually, net of related allowance	$	2,771	Appraisal of collateral	Appraisal adjustments	-30.0	%	to	-100.0	%	(-37.0)	%
OREO with subsequent impairment		106	Appraisal of collateral	Appraisal adjustments	-25.0	%	to	-100.0	%	(-54.5)	%
Bank property held for sale with impairment		10,676	Appraisal of collateral or real estate listing price	Appraisal adjustments	-6.2	%	to	-64.9	%	(-42.8)	%

Schedule of estimated fair values of financial instruments


	As of December 31, 2021				As of December 31, 2020
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets
Level 1 inputs:
Cash and cash equivalents	$	836,095	$	836,095	$	688,537	$	688,537
Level 2 inputs:
Accrued interest receivable		31,064		31,064		33,240		33,240
Level 3 inputs:
Portfolio loans, net		7,101,111		7,161,466		6,713,129		6,755,425
Mortgage servicing rights		8,608		12,133		10,912		11,107
Other servicing rights		1,830		2,268		1,434		1,966

Financial liabilities
Level 2 inputs:
Time deposits	$	935,649	$	935,778	$	1,119,348	$	1,132,107
Securities sold under agreements to repurchase		270,139		270,139		175,614		175,614
Short-term borrowings		17,678		17,673		4,658		4,661
Long-term debt		46,056		46,164		4,757		5,014
Junior subordinated debt owed to unconsolidated trusts		71,635		63,586		71,468		59,943
Accrued interest payable		2,728		2,728		3,401		3,401
Level 3 inputs:
Senior notes, net of unamortized issuance costs		39,944		40,400		39,809		40,104
Subordinated notes, net of unamortized issuance costs		182,773		195,600		182,226		187,697

Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Common Share

Schedule of computation of earnings per common share

Earnings per common share have been computed as follows (dollars in thousands, except per share amounts):


	Years Ended December 31,
	2021		2020		2019
Net income	$	123,449	$	100,344	$	102,953
Shares:
Weighted average common shares outstanding		55,369,476		54,567,429		54,851,652
Dilutive effect of outstanding options, warrants, and stock units as determined by the application of the treasury stock method		635,221		259,510		280,842
Dilutive effect of ESPP shares		4,108		—		—
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation		56,008,805		54,826,939		55,132,494

Basic earnings per common share	$	2.23	$	1.84	$	1.88

Diluted earnings per common share	$	2.20	$	1.83	$	1.87

Schedule of shares excluded from computation of diluted earnings per common share


	Years Ended December 31,
	2021		2020		2019
Anti-dilutive common stock equivalents
Options		—		39,085		—
RSU and DSU awards		72,800		159,408		201,029
PSU awards		93,026		7,862		—
Total anti-dilutive common stock equivalents		165,826		206,355		201,029

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2021

Accumulated Other Comprehensive Income (Loss).

Accumulated Other Comprehensive Income (Loss)

The following table represents changes in AOCI by component, net of tax, for the periods below (dollars in thousands):


	Year Ended December 31, 2021
		Before Tax		Tax Effect		Net of Tax
Unrealized gains (losses) on debt securities available for sale
Balance at beginning of period	$	49,644	$	(14,151)	$	35,493
Unrealized holding gains (losses) on debt securities available for sale, net		(81,977)		23,367		(58,610)
Amounts reclassified from AOCI, net		61		(17)		44
Balance at end of period		(32,272)		9,199		(23,073)

Unrealized gains (losses) on cash flow hedges
Balance at beginning of period		(3,055)		871		(2,184)
Unrealized holding gains (losses) on cash flow hedges, net		1,030		(294)		736
Amounts reclassified from AOCI, net		1,067		(304)		763
Balance at end of period		(958)		273		(685)

Total AOCI	$	(33,230)	$	9,472	$	(23,758)


	Year Ended December 31, 2020
		Before Tax		Tax Effect		Net of Tax
Unrealized gains (losses) on debt securities available for sale
Balance at beginning of period	$	21,192	$	(6,032)	$	15,160
Unrealized holding gains (losses) on debt securities available for sale, net		30,176		(8,615)		21,561
Amounts reclassified from AOCI, net		(1,724)		496		(1,228)
Balance at end of period		49,644		(14,151)		35,493

Unrealized gains (losses) on cash flow hedges
Balance at beginning of period		(280)		80		(200)
Unrealized holding gains (losses) on cash flow hedges, net		(3,533)		1,007		(2,526)
Amounts reclassified from AOCI, net		758		(216)		542
Balance at end of period		(3,055)		871		(2,184)

Total AOCI	$	46,589	$	(13,280)	$	33,309


	Year Ended December 31, 2019
		Before Tax		Tax Effect		Net of Tax
Unrealized gains (losses) on debt securities available for sale
Balance at beginning of period	$	(9,528)	$	2,716	$	(6,812)
Unrealized holding gains (losses) on debt securities available for sale, net		26,430		(7,525)		18,905
Unrealized losses on debt securities transferred from held to maturity to available for sale		5,023		(1,433)		3,590
Amounts reclassified from AOCI, net		(733)		210		(523)
Balance at end of period		21,192		(6,032)		15,160

Unrealized gains (losses) on cash flow hedges
Balance at beginning of period		—		—		—
Unrealized holding gains (losses) on cash flow hedges, net		(283)		81		(202)
Amounts reclassified from AOCI, net		3		(1)		2
Balance at end of period		(280)		80		(200)

Total AOCI	$	20,912	$	(5,952)	$	14,960

Operating Segments and Related Information (Tables)

12 Months Ended

Dec. 31, 2021

Operating Segments and Related Information

Summary of information relating to operating segments


	Goodwill				Total Assets
	As of December 31,				As of December 31,
	2021		2020		2021		2020
Operating segment
Banking	$	294,773	$	288,436	$	12,746,833	$	10,462,673
FirsTech		8,992		8,992		47,481		46,553
Wealth Management		14,108		14,108		65,587		46,504
Other		—		—		(212)		(11,683)
Consolidated total	$	317,873	$	311,536	$	12,859,689	$	10,544,047


	Years Ended December 31,

	2021		2020		2019
Net interest income
Banking	$	285,678	$	294,728	$	296,754
FirsTech		79		79		76
Wealth Management		—		—		—
Other		(15,059)		(11,872)		(9,607)
Total net interest income	$	270,698	$	282,935	$	287,223

Noninterest income
Banking	$	59,393	$	61,043	$	63,613
FirsTech		19,629		16,548		16,450
Wealth Management		53,082		43,429		39,075
Other		700		(2,755)		(2,723)
Total noninterest income	$	132,804	$	118,265	$	116,415

Noninterest expense
Banking	$	205,905	$	185,445	$	211,559
FirsTech		17,574		13,279		10,990
Wealth Management		29,198		26,086		24,534
Other		9,103		9,387		11,711
Total noninterest expense	$	261,780	$	234,197	$	258,794

Income before income taxes
Banking	$	154,267	$	131,529	$	138,401
FirsTech		2,134		3,348		5,536
Wealth Management		23,884		17,343		14,541
Other		(23,462)		(24,014)		(24,040)
Total income before income taxes	$	156,823	$	128,206	$	134,438

Net income
Banking	$	117,844	$	101,226	$	106,409
FirsTech		1,527		2,372		4,060
Wealth Management		18,570		13,181		11,135
Other		(14,492)		(16,435)		(18,651)
Total net income	$	123,449	$	100,344	$	102,953

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases

Summary of lease-related balances


	As of December 31,
	2021			2020
Lease balances
Right of use assets	$	10,533		$	7,714
Lease liabilities		10,591			7,757

Supplemental information
Year through which lease terms extend		2031			2032
Weighted average remaining lease term (in years)		6.47			5.93
Weighted average discount rate		2.16	%		2.82	%

Schedule of lease costs and other lease information

The following table represents lease costs and cash flows related to leases for the periods presented (dollars in thousands):


	Years Ended December 31,
	2021		2020		2019
Lease costs
Operating lease costs	$	2,464	$	2,524	$	2,364
Variable lease costs		540		416		432
Short-term lease costs		49		35		84
Total lease cost⁽¹⁾	$	3,053	$	2,975	$	2,880

Cash flows related to leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments	$	2,417	$	2,526	$	2,296
Operating lease cash flows – Liability reduction		2,217		2,289		2,010
Right of use assets obtained during the period in exchange for operating lease liabilities⁽²⁾		5,818		743		923

(1)

Rent expense is included in net occupancy and equipment expense in the Consolidated Statements of Income.

(2)

The year ended December 31, 2021, includes $0.4 million related to a lease obtained in the acquisition of CAC.

Schedule of future undiscounted lease payments

Future undiscounted lease payments with initial terms of one year or more, are as follows (dollars in thousands):


	As of
	December 31, 2021
Rent commitments
2022	$	2,271
2023		2,098
2024		1,650
2025		1,413
2026		1,164
Thereafter		2,766
Total undiscounted cash flows		11,362
Less: Amounts representing interest		771
Present value of net future minimum lease payments	$	10,591

Summary of revenue recorded in connection with leases

Revenues recorded in connection with these leases and reported in other income on our Consolidated Statements of Income are summarized as follows (dollars in thousands):


	Years Ended December 31,
	2021		2020		2019
Rental income	$	566	$	228	$	263

Parent Company Only Financial Information (Tables) - Parent

12 Months Ended

Dec. 31, 2021

Parent Company Only Financial Information

Balance Sheets

Condensed financial data for First Busey Corporation is presented below.

CONDENSED BALANCE SHEETS

(dollars in thousands)


	As of December 31,
	2021		2020
Assets
Cash and cash equivalents	$	78,217	$	129,183
Equity securities		13,571		5,530
Investments in subsidiaries:
Bank		1,565,226		1,417,130
Non-bank		2,812		2,746
Premises and equipment, net		30		51
Other assets		22,444		21,664
Total assets	$	1,682,300	$	1,576,304

Liabilities and Stockholders' Equity
Liabilities:
Short-term borrowings	$	12,000	$	—
Long-term debt		42,000		—
Senior notes, net of unamortized issuance costs		39,944		39,809
Subordinated notes, net of unamortized issuance costs		182,773		182,226
Junior subordinated debentures owed to unconsolidated trusts		71,635		71,468
Other liabilities		14,836		12,732
Total liabilities		363,188		306,235

Total stockholders' equity		1,319,112		1,270,069
Total liabilities and stockholders' equity	$	1,682,300	$	1,576,304

Statements of Income


	Years Ended December 31,
	2021		2020		2019
Operating income:
Dividends from subsidiaries:
Bank	$	60,000	$	122,000	$	70,000
Non-bank		1,745		—		—
Interest income		79		154		441
Unrealized gains (losses) recognized on equity securities		3,041		(393)		(759)
Other income		12,109		10,083		10,224
Total operating income		76,974		131,844		79,906

Expense:
Salaries, wages, and employee benefits		17,914		16,205		15,288
Interest expense		15,163		12,056		10,054
Operating expense		7,429		7,685		8,960
Total expense		40,506		35,946		34,302

Income (loss) before income tax benefit and equity in undistributed (in excess of) net income of subsidiaries		36,468		95,898		45,604
Income tax benefit		8,974		7,727		5,389
Income (loss) before equity in undistributed (in excess of) net income of subsidiaries		45,442		103,625		50,993

Equity in undistributed (in excess of) net income of subsidiaries:
Bank		77,941		(5,221)		51,604
Non-bank		66		1,940		356
Net income	$	123,449	$	100,344	$	102,953

Statements of Cash Flows


	Years Ended December 31,
	2021		2020		2019
Cash Flows Provided by (Used in) Operating Activities
Net income	$	123,449	$	100,344	$	102,953
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		882		648		420
Distributions more (less) than net income of subsidiaries		(78,007)		3,281		(51,961)
Unrealized (gains) losses recognized on equity securities		(3,041)		393		759
Stock-based compensation		7,864		7,135		3,997
Changes in assets and liabilities:
(Increase) decrease in other assets		(1,186)		405		(4,279)
Increase (decrease) in other liabilities		(3,302)		(5,772)		(1,280)
Net cash provided by (used in) operating activities		46,659		106,434		50,609

Cash Flows Provided by (Used in) Investing Activities
Purchases of equity securities		(5,000)		—		(520)
Net cash paid for acquisitions		(61,656)		—		(90,722)
Purchases of premises and equipment		(15)		(19)		(31)
Net cash provided by (used in) investing activities		(66,671)		(19)		(91,273)

Cash Flows Provided by (Used in) Financing Activities
Cash paid for withholding taxes on stock-based payments		(997)		(635)		(863)
Cash dividends paid		(50,764)		(48,012)		(45,171)
Repayments of borrowings		(18,500)		(74,000)		(6,000)
Proceeds from issuance of debt		72,500		142,634		60,000
Proceeds from stock options exercised		—		101		169
Purchase of treasury stock		(33,043)		(12,272)		(24,292)
Common stock issuance costs		(150)		—		(234)
Net cash provided (used in) by financing activities		(30,954)		7,816		(16,391)

Net increase (decrease) in cash and cash equivalents		(50,966)		114,231		(57,055)
Cash and cash equivalents, beginning of period		129,183		14,952		72,007

Cash and cash equivalents, ending of period	$	78,217	$	129,183	$	14,952

Significant Accounting Policies (Details) $ in Thousands	12 Months Ended
Significant Accounting Policies (Details) $ in Thousands	Dec. 31, 2021 USD ($) segment shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Trust assets
Assets under care	$ 12,700,000	$ 10,200,000
Securities:
Accrued interest receivable for debt securities available for sale debt	11,400
Loan servicing and portfolio loans
Unpaid principal balances of loans serviced	1,800,000
Impairment charges	600
Goodwill
Goodwill impairment	0	0
Cash surrender value of bank owned life insurance
Accrued liability	5,500	5,600
Income taxes
Valuation allowance	0	0
Accruals for payments of interest and penalties	0	0
Stock-based employee compensation
Compensation expense recognized	$ 7,864	7,135	$ 3,997
Segment disclosure
Number of operating segments \| segment	3
RSU awards
Stock-based employee compensation
Number of shares of common stock per award \| shares	1
Compensation expense recognized	$ 5,809	6,493	3,249
DSU awards
Stock-based employee compensation
Number of shares of common stock per award \| shares	1
Requisite service periods	30 days
Vesting period	1 year
Compensation expense recognized	$ 962	565	$ 602
PSU awards
Stock-based employee compensation
Number of shares of common stock per award \| shares	1
Compensation expense recognized	$ 979	77
ESPP
Stock-based employee compensation
Percentage of fair market value	85.00%
Percentage of discount to market price	15.00%
Minimum \| RSU awards
Stock-based employee compensation
Requisite service periods	1 year
Maximum \| RSU awards
Stock-based employee compensation
Requisite service periods	5 years
Buildings and improvements \| Minimum
Premises and Equipment, net
Estimated Useful Life	3 years
Buildings and improvements \| Maximum
Premises and Equipment, net
Estimated Useful Life	40 years
Furniture and equipment \| Minimum
Premises and Equipment, net
Estimated Useful Life	3 years
Furniture and equipment \| Maximum
Premises and Equipment, net
Estimated Useful Life	10 years
PPP Loans
PPP loans outstanding	$ 76,900	451,500
PPP loans outstanding, amortized cost	75,000	446,400
Loans outstanding, fees received	20,100	25,400
Incurred incremental direct origination costs	4,200	5,100
Net Interest Income for Fees, Net of Deferred Cost	14,000	$ 15,200
Fees, net of deferred costs remaining to be recognized	$ 1,900
Percentage of Remaining Loan Maintains Government Guarantee	100.00%
Borrower loan forgiveness	$ 999,000
Forgiveness application amount	$ 7,100

Significant Accounting Policies - Other Asset Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Other asset investments	$ 90,182	$ 37,144
Other assets \| Funded investments
Schedule of Equity Method Investments [Line Items]
Other asset investments	37,417	20,368
Other liabilities
Schedule of Equity Method Investments [Line Items]
Unfunded investment obligations	(52,765)	(16,776)
Other liabilities \| Unfunded investments
Schedule of Equity Method Investments [Line Items]
Other asset investments	$ 52,765	$ 16,776

Significant Accounting Policies - Off-balance Sheet Arrangements (Details) - Standby letters of credit - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Obligation with Joint and Several Liability Arrangement [Line Items]
Term of debt instrument	1 year
Liabilities for potential obligations	$ 6.5	$ 7.3

Acquisitions - Cummins-American Corp. (Details) $ / shares in Units, $ in Thousands			12 Months Ended
	May 31, 2021 USD ($) $ / shares	May 28, 2021 USD ($) $ / shares	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Consideration paid
Goodwill			$ 317,873	$ 311,536
CAC
Merger agreement
Share consideration conversion ratio	444.4783
Per share cash consideration entitled (in dollars per share) \| $ / shares	$ 14,173.96
Business acquisition share price \| $ / shares		$ 12,087.58
Special cash dividend		$ 60,000
Pre-tax acquisition expenses			13,600
Fair value adjustments were recorded as more information became available regarding unrecorded liabilities			$ 400
Assets acquired:
Cash and cash equivalents	$ 298,637
Securities	702,367
Portfolio loans, net of ACL	430,470
Premises and equipment	17,034
Other intangible assets	17,340
Mortgage servicing rights	629
Other assets	8,176
Total assets acquired	1,474,653
Liabilities assumed:
Deposits	1,315,671
Other borrowings	16,651
Other liabilities	19,205
Total liabilities assumed	1,351,527
Net assets acquired	123,126
Consideration paid
Cash	70,358
Common stock	59,105
Total consideration paid	129,463
Goodwill	6,337
Fair value of PCD financial assets	60,500
Gross contractual amounts receivable relating to the PCD financial assets	65,200
Contractual cash flows specific to the PCD financial assets will not be collected	$ 4,200

Debt Securities - General Disclosures (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) security shares	Dec. 31, 2020 USD ($) security shares	Dec. 31, 2019 USD ($)
Debt securities available for sale
Amortized Cost	$ 4,013,523	$ 2,211,543
Gross Unrealized Gains	22,382	50,317
Gross Unrealized Losses	(54,654)	(673)
Fair Value	3,981,251	2,261,187
Debt securities available for sale, Amortized Cost
Due in one year or less	129,260
Due after one year through five years	564,284
Due after five years through ten years	356,782
Due after ten years	2,963,197
Amortized Cost	4,013,523	2,211,543
Debt securities available for sale, Fair Value
Due in one year or less	129,848
Due after one year through five years	563,473
Due after five years through ten years	362,057
Due after ten years	2,925,873
Fair Value	3,981,251	2,261,187
Realized gains and losses on sales of debt securities
Gross security gains	543	1,732	$ 1,318
Gross security (losses)	(514)	(8)	(585)
Net gains (losses) on sales of debt securities	29	1,724	$ 733
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	2,676,734	221,913
Continuous unrealized losses existing for greater than 12 months, gross	106,443	5,096
Total, gross	2,783,177	227,009
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(49,847)	(621)
Continuous unrealized losses existing greater than 12 months, gross	(4,807)	(52)
Total, gross	$ (54,654)	$ (673)
Debt security portfolio \| shares	1,252	1,114
Number of securities in unrealized loss position \| security	373	23
Securities in unrealized loss position as a percentage of aggregate carrying value of investments	1.40%	0.03%
Collateral
Realized gains and losses on sales of debt securities
Carrying amount of debt securities pledged as collateral for public deposits, securities sold under agreements to repurchase and for other purposes	$ 708,900	$ 628,000
U.S. Treasury securities
Debt securities available for sale
Amortized Cost	166,768	27,481
Gross Unrealized Gains	41	356
Gross Unrealized Losses	(1,047)
Fair Value	165,762	27,837
Debt securities available for sale, Amortized Cost
Amortized Cost	166,768	27,481
Debt securities available for sale, Fair Value
Fair Value	165,762	27,837
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	163,653
Total, gross	163,653
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(1,047)
Total, gross	(1,047)
Obligations of U.S. government corporations and agencies
Debt securities available for sale
Amortized Cost	37,579	67,406
Gross Unrealized Gains	891	2,162
Gross Unrealized Losses		(49)
Fair Value	38,470	69,519
Debt securities available for sale, Amortized Cost
Amortized Cost	37,579	67,406
Debt securities available for sale, Fair Value
Fair Value	38,470	69,519
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for greater than 12 months, gross		4,957
Total, gross		4,957
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing greater than 12 months, gross		(49)
Total, gross		(49)
Obligations of states and political subdivisions
Debt securities available for sale
Amortized Cost	300,602	292,940
Gross Unrealized Gains	7,760	11,779
Gross Unrealized Losses	(1,493)	(8)
Fair Value	306,869	304,711
Debt securities available for sale, Amortized Cost
Amortized Cost	300,602	292,940
Debt securities available for sale, Fair Value
Fair Value	306,869	304,711
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	92,680	762
Total, gross	92,680	762
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(1,493)	(8)
Total, gross	(1,493)	(8)
Commercial mortgage-backed securities
Debt securities available for sale
Amortized Cost	625,339	408,716
Gross Unrealized Gains	3,425	10,212
Gross Unrealized Losses	(13,766)	(312)
Fair Value	614,998	418,616
Debt securities available for sale, Amortized Cost
Amortized Cost	625,339	408,716
Debt securities available for sale, Fair Value
Fair Value	614,998	418,616
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	389,078	129,655
Continuous unrealized losses existing for greater than 12 months, gross	85,905
Total, gross	474,983	129,655
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(10,186)	(312)
Continuous unrealized losses existing greater than 12 months, gross	(3,580)
Total, gross	(13,766)	(312)
Residential mortgage-backed securities
Debt securities available for sale
Amortized Cost	2,095,104	1,344,047
Gross Unrealized Gains	8,889	24,571
Gross Unrealized Losses	(34,680)	(303)
Fair Value	2,069,313	1,368,315
Debt securities available for sale, Amortized Cost
Amortized Cost	2,095,104	1,344,047
Debt securities available for sale, Fair Value
Fair Value	2,069,313	1,368,315
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	1,700,187	89,997
Continuous unrealized losses existing for greater than 12 months, gross	20,538	139
Total, gross	1,720,725	90,136
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(33,453)	(300)
Continuous unrealized losses existing greater than 12 months, gross	(1,227)	(3)
Total, gross	(34,680)	(303)
Asset-backed securities
Debt securities available for sale
Amortized Cost	492,055
Gross Unrealized Gains	295
Gross Unrealized Losses	(164)
Fair Value	492,186
Debt securities available for sale, Amortized Cost
Amortized Cost	492,055
Debt securities available for sale, Fair Value
Fair Value	492,186
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	89,983
Total, gross	89,983
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(164)
Total, gross	(164)
Corporate debt securities
Debt securities available for sale
Amortized Cost	296,076	70,953
Gross Unrealized Gains	1,081	1,237
Gross Unrealized Losses	(3,504)	(1)
Fair Value	293,653	72,189
Debt securities available for sale, Amortized Cost
Amortized Cost	296,076	70,953
Debt securities available for sale, Fair Value
Fair Value	293,653	72,189
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	241,153	1,499
Total, gross	241,153	1,499
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(3,504)	(1)
Total, gross	$ (3,504)	$ (1)

Portfolio Loans- Distribution of portfolio loans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Distributions of portfolio loans
Portfolio loans	$ 7,188,998	$ 6,814,177
ACL	(87,887)	(101,048)	$ (53,748)	$ (50,648)
Portfolio loans, net	7,101,111	6,713,129
Commercial Loans
Distributions of portfolio loans
Portfolio loans	1,943,886	2,014,576
ACL	(23,855)	(23,866)	(18,291)	(17,829)
Commercial Real Estate Loans
Distributions of portfolio loans
Portfolio loans	3,119,807	2,892,535
ACL	(38,249)	(46,230)	(21,190)	(21,137)
Real Estate Construction
Distributions of portfolio loans
Portfolio loans	385,996	461,786
ACL	(5,102)	(8,193)	(3,204)	(2,723)
Retail real estate
Distributions of portfolio loans
Portfolio loans	1,512,976	1,407,852
ACL	(17,589)	(21,992)	(10,495)	(8,471)
Retail other
Distributions of portfolio loans
Portfolio loans	226,333	37,428
ACL	$ (3,092)	$ (767)	$ (568)	$ (488)

Portfolio Loans - Narrative (Details) $ in Thousands	12 Months Ended
Portfolio Loans - Narrative (Details) $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($) contract	Dec. 31, 2019 USD ($) contract
Distributions of portfolio loans
Net deferred loan origination costs	$ 9,000	$ 2,400
Net accretable purchase accounting adjustments	8,800	10,900
Gross interest income that would have been recorded if impaired loans had been current	1,600	$ 1,800	$ 2,300
Amount of interest collected and recognized on a cash basis	400
Number of Contracts \| contract		8	4
Commercial Real Estate Loans
Distributions of portfolio loans
TDRs subsequently classified as non-performing and had payment defaults \| contract			1
Retail real estate
Distributions of portfolio loans
Loans purchased	32,200	$ 43,900
Maximum \| Commercial Real Estate Loans
Distributions of portfolio loans
Limit where loans are processed through an expedited underwriting process	1,000
Watch \| Commercial Loans
Distributions of portfolio loans
Limit above which loans are annually reviewed	1,000
Special Mention \| Commercial Loans
Distributions of portfolio loans
Limit above which loans are annually reviewed	350
PPP Loans
Distributions of portfolio loans
Amortized cost of the loans outstanding	$ 75,000	$ 446,400

Portfolio Loans - Summary of risk grades segregated by category (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Loans
Portfolio loans	$ 7,188,998	$ 6,814,177
Pass
Loans
Portfolio loans	6,518,101	6,016,748
Watch
Loans
Portfolio loans	463,053	554,970
Special Mention
Loans
Portfolio loans	121,120	150,481
Substandard
Loans
Portfolio loans	70,778	69,048
Substandard Non-accrual
Loans
Portfolio loans	15,946	22,930
Commercial
Loans
Portfolio loans	1,943,886	2,014,576
Commercial \| Pass
Loans
Portfolio loans	1,747,756	1,768,755
Commercial \| Watch
Loans
Portfolio loans	93,582	136,948
Commercial \| Special Mention
Loans
Portfolio loans	69,427	72,447
Commercial \| Substandard
Loans
Portfolio loans	26,117	27,903
Commercial \| Substandard Non-accrual
Loans
Portfolio loans	7,004	8,523
Commercial real estate
Loans
Portfolio loans	3,119,807	2,892,535
Commercial real estate \| Pass
Loans
Portfolio loans	2,682,441	2,393,372
Commercial real estate \| Watch
Loans
Portfolio loans	343,304	383,277
Commercial real estate \| Special Mention
Loans
Portfolio loans	49,695	75,486
Commercial real estate \| Substandard
Loans
Portfolio loans	38,394	34,897
Commercial real estate \| Substandard Non-accrual
Loans
Portfolio loans	5,973	5,503
Real estate construction
Loans
Portfolio loans	385,996	461,786
Real estate construction \| Pass
Loans
Portfolio loans	369,797	434,681
Real estate construction \| Watch
Loans
Portfolio loans	13,793	24,481
Real estate construction \| Special Mention
Loans
Portfolio loans	6	77
Real estate construction \| Substandard
Loans
Portfolio loans	2,400	2,546
Real estate construction \| Substandard Non-accrual
Loans
Portfolio loans		1
Retail real estate
Loans
Portfolio loans	1,512,976	1,407,852
Retail real estate \| Pass
Loans
Portfolio loans	1,491,845	1,382,616
Retail real estate \| Watch
Loans
Portfolio loans	12,374	10,264
Retail real estate \| Special Mention
Loans
Portfolio loans	1,992	2,471
Retail real estate \| Substandard
Loans
Portfolio loans	3,867	3,702
Retail real estate \| Substandard Non-accrual
Loans
Portfolio loans	2,898	8,799
Retail other
Loans
Portfolio loans	226,333	37,428
Retail other \| Pass
Loans
Portfolio loans	226,262	37,324
Retail other \| Substandard Non-accrual
Loans
Portfolio loans	71	104
Commercial Loans
Loans
Portfolio loans	1,943,886	2,014,576
Commercial Real Estate Loans
Loans
Portfolio loans	3,119,807	2,892,535
Real Estate Construction
Loans
Portfolio loans	385,996	461,786
Retail real estate
Loans
Portfolio loans	1,512,976	1,407,852
Retail other
Loans
Portfolio loans	$ 226,333	$ 37,428

Portfolio Loans - Risk grades of portfolio loans by origination year (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Loans
2021	$ 2,393,701
2020	1,296,955	$ 2,216,953
2019	845,248	1,168,069
2018	503,186	798,327
2017	434,084	699,747
2016		441,456
Prior	671,510	650,638
Revolving loans	1,044,314	838,987
Total	7,188,998	6,814,177
Pass
Loans
Total	6,518,101	6,016,748
Watch
Loans
Total	463,053	554,970
Special Mention
Loans
Total	121,120	150,481
Substandard
Loans
Total	70,778	69,048
Substandard Non-accrual
Loans
Total	15,946	22,930
Commercial
Loans
2021	541,359
2020	239,348	843,404
2019	131,390	190,061
2018	95,813	127,410
2017	83,947	118,185
2016		72,647
Prior	142,640	105,947
Revolving loans	709,389	556,922
Total	1,943,886	2,014,576
Commercial \| Pass
Loans
2021	512,729
2020	228,811	812,536
2019	107,877	158,307
2018	84,873	107,565
2017	74,351	93,190
2016		61,847
Prior	122,418	79,970
Revolving loans	616,697	455,340
Total	1,747,756	1,768,755
Commercial \| Watch
Loans
2021	13,847
2020	5,913	16,544
2019	14,274	22,247
2018	5,060	14,954
2017	1,361	13,724
2016		2,577
Prior	2,866	10,943
Revolving loans	50,261	55,959
Total	93,582	136,948
Commercial \| Special Mention
Loans
2021	7,062
2020	898	6,402
2019	5,961	2,671
2018	4,025	2,069
2017	6,790	7,164
2016		6,763
Prior	11,845	13,733
Revolving loans	32,846	33,645
Total	69,427	72,447
Commercial \| Substandard
Loans
2021	3,595
2020	3,362	7,772
2019	3,136	3,791
2018	1,855	2,371
2017	1,125	1,939
2016		819
Prior	5,459	1,233
Revolving loans	7,585	9,978
Total	26,117	27,903
Commercial \| Substandard Non-accrual
Loans
2021	4,126
2020	364	150
2019	142	3,045
2018		451
2017	320	2,168
2016		641
Prior	52	68
Revolving loans	2,000	2,000
Total	7,004	8,523
Commercial real estate
Loans
2021	1,051,764
2020	687,392	840,882
2019	557,336	628,303
2018	307,458	463,787
2017	257,419	437,776
2016		222,941
Prior	240,922	278,923
Revolving loans	17,516	19,923
Total	3,119,807	2,892,535
Commercial real estate \| Pass
Loans
2021	969,548
2020	637,550	717,559
2019	425,850	503,977
2018	235,928	360,573
2017	200,373	384,843
2016		180,555
Prior	198,002	227,068
Revolving loans	15,190	18,797
Total	2,682,441	2,393,372
Commercial real estate \| Watch
Loans
2021	51,560
2020	38,820	88,297
2019	123,324	110,526
2018	48,088	90,412
2017	46,761	33,734
2016		32,887
Prior	32,608	27,023
Revolving loans	2,143	398
Total	343,304	383,277
Commercial real estate \| Special Mention
Loans
2021	9,542
2020	7,060	16,490
2019	6,585	8,858
2018	10,098	10,490
2017	6,357	10,505
2016		7,102
Prior	9,870	21,808
Revolving loans	183	233
Total	49,695	75,486
Commercial real estate \| Substandard
Loans
2021	21,002
2020	3,781	17,445
2019	1,218	4,166
2018	11,451	1,491
2017	521	7,812
2016		2,111
Prior	421	1,377
Revolving loans		495
Total	38,394	34,897
Commercial real estate \| Substandard Non-accrual
Loans
2021	112
2020	181	1,091
2019	359	776
2018	1,893	821
2017	3,407	882
2016		286
Prior	21	1,647
Total	5,973	5,503
Real estate construction
Loans
2021	209,968
2020	130,050	200,184
2019	31,987	175,330
2018	3,155	64,362
2017	2,312	3,306
2016		1,071
Prior	1,343	1,445
Revolving loans	7,181	16,088
Total	385,996	461,786
Real estate construction \| Pass
Loans
2021	202,082
2020	123,491	179,232
2019	31,927	171,663
2018	3,155	64,025
2017	738	1,468
2016		761
Prior	1,223	1,444
Revolving loans	7,181	16,088
Total	369,797	434,681
Real estate construction \| Watch
Loans
2021	7,886
2020	4,159	18,485
2019	54	3,657
2018		337
2017	1,574	1,838
2016		164
Prior	120
Total	13,793	24,481
Real estate construction \| Special Mention
Loans
2020		67
2019	6	10
Total	6	77
Real estate construction \| Substandard
Loans
2020	2,400	2,400
2016		146
Total	2,400	2,546
Real estate construction \| Substandard Non-accrual
Loans
Prior		1
Total		1
Retail real estate
Loans
2021	531,210
2020	217,850	324,112
2019	98,409	164,938
2018	80,557	137,163
2017	83,213	137,949
2016		144,101
Prior	285,279	263,826
Revolving loans	216,458	235,763
Total	1,512,976	1,407,852
Retail real estate \| Pass
Loans
2021	523,541
2020	215,068	319,302
2019	96,617	162,711
2018	79,158	135,065
2017	82,478	136,427
2016		140,600
Prior	281,737	257,147
Revolving loans	213,246	231,364
Total	1,491,845	1,382,616
Retail real estate \| Watch
Loans
2021	4,100
2020	2,460	2,715
2019	1,780	2,053
2018	1,312	1,396
2017	343	349
2016		579
Prior	150	233
Revolving loans	2,229	2,939
Total	12,374	10,264
Retail real estate \| Special Mention
Loans
2021	1,965
2020	27	509
2016		1,962
Total	1,992	2,471
Retail real estate \| Substandard
Loans
2021	1,369
2020	232	899
2019	12	96
2018	71	56
2017	165	26
2016		727
Prior	1,687	1,631
Revolving loans	331	267
Total	3,867	3,702
Retail real estate \| Substandard Non-accrual
Loans
2021	235
2020	63	687
2019		78
2018	16	646
2017	227	1,147
2016		233
Prior	1,705	4,815
Revolving loans	652	1,193
Total	2,898	8,799
Retail other
Loans
2021	59,400
2020	22,315	8,371
2019	26,126	9,437
2018	16,203	5,605
2017	7,193	2,531
2016		696
Prior	1,326	497
Revolving loans	93,770	10,291
Total	226,333	37,428
Retail other \| Pass
Loans
2021	59,366
2020	22,305	8,357
2019	26,126	9,430
2018	16,189	5,600
2017	7,180	2,516
2016		691
Prior	1,326	440
Revolving loans	93,770	10,290
Total	226,262	37,324
Retail other \| Substandard Non-accrual
Loans
2021	34
2020	10	14
2019		7
2018	14	5
2017	13	15
2016		5
Prior		57
Revolving loans		1
Total	71	104
Commercial Loans
Loans
Total	1,943,886	2,014,576
Commercial Real Estate Loans
Loans
Total	3,119,807	2,892,535
Real Estate Construction
Loans
Total	385,996	461,786
Retail real estate
Loans
Total	1,512,976	1,407,852
Retail other
Loans
Total	$ 226,333	$ 37,428

Portfolio Loans - Analysis of loans past due and still accruing or non-accrual status (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Loans past due
90+Days	$ 906	$ 1,371
Non-accrual Loans	15,946	22,930
30 to 59 Days
Loans past due
Loans past due, still accruing	3,964	6,794
60 to 89 Days
Loans past due
Loans past due, still accruing	2,297	784
Commercial
Loans past due
90+Days	213
Non-accrual Loans	7,004	8,523
Commercial \| 30 to 59 Days
Loans past due
Loans past due, still accruing	363	243
Commercial \| 60 to 89 Days
Loans past due
Loans past due, still accruing	10
Commercial real estate
Loans past due
Non-accrual Loans	5,973	5,503
Commercial real estate \| 30 to 59 Days
Loans past due
Loans past due, still accruing	151
Commercial real estate \| 60 to 89 Days
Loans past due
Loans past due, still accruing	441
Real estate construction
Loans past due
Non-accrual Loans		1
Real estate construction \| 30 to 59 Days
Loans past due
Loans past due, still accruing	56	237
Real estate construction \| 60 to 89 Days
Loans past due
Loans past due, still accruing		235
Retail real estate
Loans past due
90+Days	693	1,305
Non-accrual Loans	2,898	8,799
Retail real estate \| 30 to 59 Days
Loans past due
Loans past due, still accruing	3,312	6,248
Retail real estate \| 60 to 89 Days
Loans past due
Loans past due, still accruing	1,830	400
Retail other
Loans past due
90+Days		66
Non-accrual Loans	71	104
Retail other \| 30 to 59 Days
Loans past due
Loans past due, still accruing	82	66
Retail other \| 60 to 89 Days
Loans past due
Loans past due, still accruing	$ 16	$ 149

Portfolio Loans - Summary of TDRs (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Restructured loans
Total TDRs	$ 2,352	$ 5,078
In compliance with modified terms
Restructured loans
Total TDRs	1,801	3,814
30-89 days past due
Restructured loans
Total TDRs		15
Included in non-performing loans
Restructured loans
Total TDRs	$ 551	$ 1,249

Portfolio Loans - Summarize TDRs (Details) $ in Thousands	12 Months Ended
Portfolio Loans - Summarize TDRs (Details) $ in Thousands	Dec. 31, 2021 USD ($) contract	Dec. 31, 2020 USD ($) contract	Dec. 31, 2019 USD ($) contract
Financing Receivable, Impaired [Line Items]
Number of Contracts \| contract		8	4
Rate Modification
Financing Receivable, Impaired [Line Items]
Recorded Investment		$ 781	$ 527
Payment Modification
Financing Receivable, Impaired [Line Items]
Recorded Investment		$ 986
Commercial
Financing Receivable, Impaired [Line Items]
Number of Contracts \| contract	1	3	2
Commercial \| Rate Modification
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 364	$ 130	$ 342
Commercial real estate
Financing Receivable, Impaired [Line Items]
Number of Contracts \| contract		1	1
Commercial real estate \| Rate Modification
Financing Receivable, Impaired [Line Items]
Recorded Investment		$ 651
Retail real estate
Financing Receivable, Impaired [Line Items]
Number of Contracts \| contract		4	1
Retail real estate \| Rate Modification
Financing Receivable, Impaired [Line Items]
Recorded Investment			$ 185
Retail real estate \| Payment Modification
Financing Receivable, Impaired [Line Items]
Recorded Investment		$ 986

Portfolio Loans - Defaults on loans designated as TDRs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Commercial real estate
Loans
Defaults on loans designated as TDRs	$ 3,277

Portfolio Loans - Modified loans with payment deferrals (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) contract	Dec. 31, 2020 USD ($) contract	Dec. 31, 2019 contract
Loans identified as impaired
Number of Contracts \| contract		8	4
COVID-19 loan modifications
Loans identified as impaired
Number of Contracts \| $	34	450
Recorded Investment \| $	$ 128,867	$ 256,414
Commercial
Loans identified as impaired
Number of Contracts \| contract	1	3	2
Commercial \| COVID-19 loan modifications
Loans identified as impaired
Number of Contracts \| contract	32	98
Recorded Investment \| $	$ 128,730	$ 208,624
Commercial \| Full payment deferral
Loans identified as impaired
Number of Contracts \| contract		46
Recorded Investment \| $		$ 37,150
Commercial \| Interest-only deferrals
Loans identified as impaired
Number of Contracts \| contract	32	23
Recorded Investment \| $	$ 128,730	$ 85,270
Commercial \| Blended principal and interest and interest-only deferrals
Loans identified as impaired
Number of Contracts \| contract		29
Recorded Investment \| $		$ 86,204
Consumer \| COVID-19 loan modifications
Loans identified as impaired
Number of Contracts \| contract	2	352
Recorded Investment \| $	$ 137	$ 47,790
Consumer \| Mortgage and personal loan deferrals
Loans identified as impaired
Number of Contracts \| contract	2	351
Recorded Investment \| $	$ 137	$ 47,671
Consumer \| Purchased home equity line of credit pool deferrals
Loans identified as impaired
Number of Contracts \| contract		1
Recorded Investment \| $		$ 119

Portfolio Loans - Loans identified as impaired, segregated by category (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Loans identified as impaired
Unpaid Contractual Principal Balance	$ 19,489	$ 30,342
Recorded Investment with No Allowance	8,865	15,850
Recorded Investment with Allowance	6,515	4,396
Total Recorded Investment	15,380	20,246
Related Allowance	3,589	1,625
Average Recorded Investment	19,556	25,299
Collateral dependent loans secured by real estate or business assets	7,900	14,800
Commercial Loans
Loans identified as impaired
Unpaid Contractual Principal Balance	10,247	16,771
Recorded Investment with No Allowance	498	4,001
Recorded Investment with Allowance	6,490	4,371
Total Recorded Investment	6,988	8,372
Related Allowance	3,564	1,600
Average Recorded Investment	8,791	7,920
Commercial Real Estate Loans
Loans identified as impaired
Unpaid Contractual Principal Balance	6,456	7,406
Recorded Investment with No Allowance	5,750	6,067
Total Recorded Investment	5,750	6,067
Average Recorded Investment	6,390	9,349
Real Estate Construction
Loans identified as impaired
Unpaid Contractual Principal Balance	272	292
Recorded Investment with No Allowance	272	292
Total Recorded Investment	272	292
Average Recorded Investment	282	581
Retail real estate
Loans identified as impaired
Unpaid Contractual Principal Balance	2,514	5,873
Recorded Investment with No Allowance	2,345	5,490
Recorded Investment with Allowance	25	25
Total Recorded Investment	2,370	5,515
Related Allowance	25	25
Average Recorded Investment	$ 4,093	7,439
Retail other
Loans identified as impaired
Average Recorded Investment		$ 10

Portfolio Loans - Activity in the allowance for loan losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Activity in the allowance for loan losses
ACL beginning balance	$ 101,048	$ 53,748	$ 50,648
Provision for credit losses	(15,101)	38,797	10,406
Charged-off	(4,783)	(11,088)	(11,760)
Recoveries	2,545	2,758	4,454
ACL ending balance	87,887	101,048	53,748
Allowance for loan losses Ending balance attributed to:
Collectively evaluated for impairment	84,298	99,423
Individually evaluated for impairment	3,589	1,625
Total	87,887	101,048	53,748
Loans:
Collectively evaluated for impairment	7,173,618	6,793,931
Individually evaluated for impairment	15,380	20,246
Total	7,188,998	6,814,177
Day 1 PCD
Activity in the allowance for loan losses
ACL beginning balance	4,178
ACL ending balance		4,178
Allowance for loan losses Ending balance attributed to:
Total		4,178
Commercial Loans
Activity in the allowance for loan losses
ACL beginning balance	23,866	18,291	17,829
Provision for credit losses	(2,160)	10,832	4,893
Charged-off	(2,026)	(6,376)	(6,478)
Recoveries	629	404	2,047
ACL ending balance	23,855	23,866	18,291
Allowance for loan losses Ending balance attributed to:
Collectively evaluated for impairment	20,291	22,266
Individually evaluated for impairment	3,564	1,600
Total	23,855	23,866	18,291
Loans:
Collectively evaluated for impairment	1,936,898	2,006,204
Individually evaluated for impairment	6,988	8,372
Total	1,943,886	2,014,576
Commercial Loans \| Day 1 PCD
Activity in the allowance for loan losses
ACL beginning balance	3,546
ACL ending balance		3,546
Allowance for loan losses Ending balance attributed to:
Total		3,546
Commercial Real Estate Loans
Activity in the allowance for loan losses
ACL beginning balance	46,230	21,190	21,137
Provision for credit losses	(7,651)	17,511	3,002
Charged-off	(925)	(1,972)	(3,257)
Recoveries	259	195	308
ACL ending balance	38,249	46,230	21,190
Allowance for loan losses Ending balance attributed to:
Collectively evaluated for impairment	38,249	46,230
Total	38,249	46,230	21,190
Loans:
Collectively evaluated for impairment	3,114,057	2,886,468
Individually evaluated for impairment	5,750	6,067
Total	3,119,807	2,892,535
Commercial Real Estate Loans \| Day 1 PCD
Activity in the allowance for loan losses
ACL beginning balance	336
ACL ending balance		336
Allowance for loan losses Ending balance attributed to:
Total		336
Real Estate Construction
Activity in the allowance for loan losses
ACL beginning balance	8,193	3,204	2,723
Provision for credit losses	(3,180)	1,452	(70)
Charged-off	(209)	(18)
Recoveries	298	601	551
ACL ending balance	5,102	8,193	3,204
Allowance for loan losses Ending balance attributed to:
Collectively evaluated for impairment	5,102	8,193
Total	5,102	8,193	3,204
Loans:
Collectively evaluated for impairment	385,724	461,494
Individually evaluated for impairment	272	292
Total	385,996	461,786
Retail real estate
Activity in the allowance for loan losses
ACL beginning balance	21,992	10,495	8,471
Provision for credit losses	(4,456)	9,050	2,102
Charged-off	(1,145)	(2,057)	(1,162)
Recoveries	1,069	1,212	1,084
ACL ending balance	17,589	21,992	10,495
Allowance for loan losses Ending balance attributed to:
Collectively evaluated for impairment	17,564	21,967
Individually evaluated for impairment	25	25
Total	17,589	21,992	10,495
Loans:
Collectively evaluated for impairment	1,510,606	1,402,337
Individually evaluated for impairment	2,370	5,515
Total	1,512,976	1,407,852
Retail real estate \| Day 1 PCD
Activity in the allowance for loan losses
ACL beginning balance	129
ACL ending balance		129
Allowance for loan losses Ending balance attributed to:
Total		129
Retail other
Activity in the allowance for loan losses
ACL beginning balance	767	568	488
Provision for credit losses	2,346	(48)	479
Charged-off	(478)	(665)	(863)
Recoveries	290	346	464
ACL ending balance	3,092	767	568
Allowance for loan losses Ending balance attributed to:
Collectively evaluated for impairment	3,092	767
Total	3,092	767	568
Loans:
Collectively evaluated for impairment	226,333	37,428
Total	226,333	37,428
Retail other \| Day 1 PCD
Activity in the allowance for loan losses
ACL beginning balance	$ 167
ACL ending balance		167
Allowance for loan losses Ending balance attributed to:
Total		167
Cumulative Effect, Period of Adoption, Adjustment
Activity in the allowance for loan losses
ACL beginning balance		16,833
ACL ending balance			16,833
Allowance for loan losses Ending balance attributed to:
Total			16,833
Cumulative Effect, Period of Adoption, Adjustment \| Commercial Loans
Activity in the allowance for loan losses
ACL beginning balance		715
ACL ending balance			715
Allowance for loan losses Ending balance attributed to:
Total			715
Cumulative Effect, Period of Adoption, Adjustment \| Commercial Real Estate Loans
Activity in the allowance for loan losses
ACL beginning balance		9,306
ACL ending balance			9,306
Allowance for loan losses Ending balance attributed to:
Total			9,306
Cumulative Effect, Period of Adoption, Adjustment \| Real Estate Construction
Activity in the allowance for loan losses
ACL beginning balance		2,954
ACL ending balance			2,954
Allowance for loan losses Ending balance attributed to:
Total			2,954
Cumulative Effect, Period of Adoption, Adjustment \| Retail real estate
Activity in the allowance for loan losses
ACL beginning balance		3,292
ACL ending balance			3,292
Allowance for loan losses Ending balance attributed to:
Total			3,292
Cumulative Effect, Period of Adoption, Adjustment \| Retail other
Activity in the allowance for loan losses
ACL beginning balance		$ 566
ACL ending balance			566
Allowance for loan losses Ending balance attributed to:
Total			$ 566

Other Real Estate Owned and Other Repossessed Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Foreclosed Real Estate
Other real estate owned (OREO)	$ 3,074	$ 4,570
Other repossessed assets	1,342	1
OREO and other repossessed assets	4,416	4,571
OREO
OREO and other repossessed assets beginning balance	4,571	3,057
Additions, fair value from acquisition	1,610	2,867
Sales of OREO	(1,721)	(1,282)
Cash payments collected	(43)	(3)
Valuation allowance for OREO	(1)	(68)
OREO and other repossessed assets ending balance	4,416	4,571
Commercial Real Estate Loans
Foreclosed Real Estate
Other real estate owned (OREO)	2,839	4,206
Residential real estate
Foreclosed Real Estate
Other real estate owned (OREO)	235	$ 364
Residential real estate in the process of foreclosure	$ 200

Premises and Equipment, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Premises and Equipment
Premises and equipment, gross	$ 232,079	$ 225,138
Accumulated depreciation	95,932	89,947
Premises and equipment, net	136,147	135,191
Depreciation expense	11,610	12,273	$ 11,879
Land and improvements
Premises and Equipment
Premises and equipment, gross	45,595	40,762
Buildings and improvements
Premises and Equipment
Premises and equipment, gross	132,011	130,610
Furniture and equipment
Premises and Equipment
Premises and equipment, gross	$ 54,473	$ 53,766

Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) segment	May 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Goodwill and other intangibles assets
Number of operating segments \| segment	3
Total goodwill	$ 317,873		$ 311,536
CAC
Goodwill and other intangibles assets
Total goodwill		$ 6,337
Other intangible assets		$ 17,340
Banking
Goodwill and other intangibles assets
Total goodwill	294,773		288,436
Banking \| CAC
Goodwill and other intangibles assets
Total goodwill	6,300
Other intangible assets	8,800
FirsTech
Goodwill and other intangibles assets
Total goodwill	8,992		8,992
Wealth Management
Goodwill and other intangibles assets
Total goodwill	14,108		14,108
Other intangible assets			$ 400
Wealth Management \| CAC
Goodwill and other intangibles assets
Other intangible assets	$ 8,500

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill and other intangibles assets
Intangible assets, gross	$ 132,203	$ 114,864
Accumulated amortization	74,152	62,879
Total estimated amortization expense	58,051	51,985
Amortization expense	11,274	10,008	$ 9,547
Estimated amortization expense:
2022	11,628
2023	10,432
2024	9,220
2025	7,843
2026	6,706
Thereafter	12,222
Total estimated amortization expense	58,051	51,985
Core deposit intangible assets
Goodwill and other intangibles assets
Intangible assets, gross	99,065	90,256
Accumulated amortization	55,161	46,909
Total estimated amortization expense	43,904	43,347
Amortization expense	8,253	7,753
Estimated amortization expense:
2022	8,315
2023	7,616
2024	6,902
2025	5,956
2026	5,227
Thereafter	9,888
Total estimated amortization expense	43,904	43,347
Customer relationship intangible assets
Goodwill and other intangibles assets
Intangible assets, gross	33,138	24,608
Accumulated amortization	18,991	15,970
Total estimated amortization expense	14,147	8,638
Amortization expense	3,021	2,255
Estimated amortization expense:
2022	3,313
2023	2,816
2024	2,318
2025	1,887
2026	1,479
Thereafter	2,334
Total estimated amortization expense	$ 14,147	$ 8,638

Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deposits
Demand deposits, noninterest-bearing	$ 3,670,267	$ 2,552,039
Interest-bearing transaction deposits	2,720,417	2,263,093
Saving deposits and money market deposits	3,442,244	2,743,369
Time deposits	935,649	1,119,348
Total deposits	10,768,577	8,677,849
Brokered saving deposits and money market deposits	2,248	2,251
Brokered time deposits	266	5,257
Aggregate amount of time deposits with a minimum denomination of $100,000	454,649	568,735
Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000	137,449	192,563
Deposits
2022	643,826
2023	191,995
2024	70,111
2025	16,149
2026	12,834
Thereafter	734
Total time deposits	$ 935,649	$ 1,119,348

Borrowings - Securities sold under agreements to repurchase (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Borrowings
Securities sold under agreements to repurchase	$ 270,139	$ 175,614
Securities sold under agreements to repurchase, weighted average rate	0.08%	0.13%

Borrowings - Term Loan (Details) - USD ($) $ in Thousands	12 Months Ended
Borrowings - Term Loan (Details) - USD ($) $ in Thousands	Dec. 31, 2021	May 28, 2021	Dec. 31, 2020
Borrowings
Long-term debt	$ 46,056		$ 4,757
Term Loan
Borrowings
Issuance of debt		$ 60,000
Long-term debt	42,000
Quarterly payments on the term loan reduce the outstanding principal balance, amount	3,000
Revolving line of credit
Borrowings
Issuance of debt		$ 40,000
Second Amended and Restated Credit Agreement \| Term Loan
Borrowings
Long-term debt	54,000
Long-term debt, current	12,000
Long term debt, noncurrent	42,000
Second Amended and Restated Credit Agreement \| Revolving line of credit
Borrowings
Balance outstanding	$ 0
Second Amended and Restated Credit Agreement \| One-month LIBOR rate
Borrowings
Interest rate (as a percent)		1.75%

Borrowings - Short-term borrowings (Details) - USD ($)	12 Months Ended
Borrowings - Short-term borrowings (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Short-term borrowings
Short-term borrowings	$ 17,678,000	$ 4,658,000
Federal funds purchased	0	0
FHLB advances
Short-term borrowings
Short-term borrowings	5,678,000	$ 4,658,000
Term Loan, current portion due within 12 months
Short-term borrowings
Short-term borrowings	$ 12,000,000
Minimum
Short-term borrowings
Short-term borrowings, mature period	1 day
Maximum
Short-term borrowings
Short-term borrowings, mature period	90 days

Borrowings - Long-term Debt (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Long-term debt
Long-term debt	$ 46,056	$ 4,757
FHLB advances
Long-term debt
Notes payable original maturity term	5 years	5 years
Interest rate (as a percent)	3.04%
Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock
Long-term debt
Long-term debt	$ 4,056	$ 4,757
Term Loan
Long-term debt
Long-term debt	$ 42,000

Borrowings - Senior notes and Subordinate Notes (Details) - USD ($) $ in Thousands	Jun. 01, 2020	May 25, 2017	Dec. 31, 2021	Dec. 31, 2020
Long-term debt
Unamortized debt issuance cost			$ 2,283	$ 2,965
3.75% notes maturing May 25, 2022 \| Senior notes
Long-term debt
Issuance of debt		$ 40,000
Interest rate (as a percent)		3.75%
Unamortized debt issuance cost			56	191
4.75% notes maturing May 25, 2027 \| Subordinated debt
Long-term debt
Issuance of debt		$ 60,000
Fixed payment term of note		5 years
Duration of fixed interest rate		5 years
Unamortized debt issuance cost			549	651
4.75% notes maturing May 25, 2027 \| First Five Years \| Subordinated debt
Long-term debt
Interest rate (as a percent)		4.75%
4.75% notes maturing May 25, 2027 \| Three-month LIBOR \| Subordinated debt
Long-term debt
Floating interest rate margin (as a percent)		2.919%
5.25% notes maturing June 1, 2030 \| Subordinated debt
Long-term debt
Issuance of debt	$ 125,000
Fixed payment term of note	5 years
Duration of fixed interest rate	5 years
Floating interest rate margin (as a percent)	5.11%
Unamortized debt issuance cost			$ 1,678	$ 2,123
5.25% notes maturing June 1, 2030 \| First Five Years \| Subordinated debt
Long-term debt
Interest rate (as a percent)	5.25%

Junior Subordinated Debt Owed to Unconsolidated Trusts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Junior subordinated debt owed to unconsolidated trusts
Fair value adjustment, remaining balance to be accreted	$ 3,000
Junior subordinated debt owed to unconsolidated trusts	71,635	$ 71,468
Parent
Junior subordinated debt owed to unconsolidated trusts
Junior subordinated debt owed to unconsolidated trusts	$ 71,635	$ 71,468
Trust Preferred Securities
Junior subordinated debt owed to unconsolidated trusts
Trust preferred securities qualified as Tier I capital (as a percent)	100.00%
Maximum of holding companies assets retained	$ 15,000,000
Junior Subordinated Notes \| Trust Preferred Securities
Junior subordinated debt owed to unconsolidated trusts
Maximum period to defer payment of interest on the notes and, therefore, distributions on the trust preferred securities	5 years

Regulatory Capital (Details) - USD ($) $ in Thousands		12 Months Ended
Regulatory Capital (Details) - USD ($) $ in Thousands	Jun. 01, 2020	Dec. 31, 2021	Dec. 31, 2020
Common Equity Tier 1 Capital to Risk Weighted Assets, Amount
Actual, Amount		$ 995,874	$ 909,033
Minimum Capital Requirement, Amount		378,334	329,071
Minimum To Be Well Capitalized, Amount		$ 546,482	$ 475,325
Common Equity Tier 1 Capital to Risk Weighted Assets, Ratio
Actual, Ratio (as a percent)		11.85%	12.43%
Minimum Capital Requirement, Ratio (as a percent)		4.50%	4.50%
Minimum To Be Well Capitalized, Ratio (as a percent)		6.50%	6.50%
Tier 1 Capital to Risk Weighted Assets, Amount
Actual, Amount		$ 1,069,874	$ 983,033
Minimum Capital Requirement, Amount		504,445	438,761
Minimum To Be Well Capitalized, Amount		$ 672,594	$ 585,015
Tier 1 Capital to Risk Weighted Assets, Ratio
Actual, Ratio (as a percent)		12.73	13.44
Minimum Capital Requirement, Ratio (as a percent)		6.00	6.00
Minimum To Be Well Capitalized, Ratio (as a percent)		8.00	8.00
Total Capital to Risk Weighted Assets, Amount
Actual, Amount		$ 1,320,187	$ 1,245,997
Minimum Capital Requirement, Amount		672,594	585,015
Minimum To Be Well Capitalized, Amount		$ 840,742	$ 731,269
Total Capital to Risk Weighted Assets, Ratio
Actual, Ratio (as a percent)		15.70	17.04
Minimum Capital Requirement, Ratio (as a percent)		8.00	8.00
Minimum To Be Well Capitalized, Ratio (as a percent)		10.00	10.00
Leverage Ratio of Tier 1 Capital to Average Assets, Amount
Actual, Amount		$ 1,069,874	$ 983,033
Minimum Capital Requirement, Amount		$ 502,336	$ 401,717
Leverage Ratio of Tier 1 Capital to Average Assets, Ratio
Actual, Ratio (as a percent)		8.52	9.79
Minimum Capital Requirement, Ratio (as a percent)		4.00	4.00
Busey Bank paid dividends to the Company, amount received		$ 60,000	$ 122,000
Busey Bank
Common Equity Tier 1 Capital to Risk Weighted Assets, Amount
Actual, Amount		1,241,303	1,053,910
Minimum Capital Requirement, Amount		377,096	328,546
Minimum To Be Well Capitalized, Amount		$ 544,695	$ 474,567
Common Equity Tier 1 Capital to Risk Weighted Assets, Ratio
Actual, Ratio (as a percent)		14.81%	14.44%
Minimum Capital Requirement, Ratio (as a percent)		4.50%	4.50%
Minimum To Be Well Capitalized, Ratio (as a percent)		6.50%	6.50%
Tier 1 Capital to Risk Weighted Assets, Amount
Actual, Amount		$ 1,241,303	$ 1,053,910
Minimum Capital Requirement, Amount		502,795	438,062
Minimum To Be Well Capitalized, Amount		$ 670,394	$ 584,082
Tier 1 Capital to Risk Weighted Assets, Ratio
Actual, Ratio (as a percent)		14.81	14.44
Minimum Capital Requirement, Ratio (as a percent)		6.00	6.00
Minimum To Be Well Capitalized, Ratio (as a percent)		8.00	8.00
Total Capital to Risk Weighted Assets, Amount
Actual, Amount		$ 1,306,616	$ 1,131,875
Minimum Capital Requirement, Amount		670,394	584,082
Minimum To Be Well Capitalized, Amount		$ 837,992	$ 730,103
Total Capital to Risk Weighted Assets, Ratio
Actual, Ratio (as a percent)		15.59	15.50
Minimum Capital Requirement, Ratio (as a percent)		8.00	8.00
Minimum To Be Well Capitalized, Ratio (as a percent)		10.00	10.00
Leverage Ratio of Tier 1 Capital to Average Assets, Amount
Actual, Amount		$ 1,241,303	$ 1,053,910
Minimum Capital Requirement, Amount		501,104	400,581
Minimum To Be Well Capitalized, Amount		$ 626,379	$ 500,727
Leverage Ratio of Tier 1 Capital to Average Assets, Ratio
Actual, Ratio (as a percent)		9.91	10.52
Minimum Capital Requirement, Ratio (as a percent)		4.00	4.00
Minimum To Be Well Capitalized, Ratio (as a percent)		5.00	5.00
Subordinated debt \| 5.25% fixed-to-floating rate notes due 2030
Regulatory Capital
Proceeds from public offering	$ 125,000

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current expense:
Federal	$ 20,261	$ 21,027	$ 22,479
State	8,448	12,144	8,910
Deferred expense:
Federal	3,644	(3,657)	(380)
State	1,021	(1,652)	476
Total income tax expense	$ 33,374	$ 27,862	$ 31,485
Reconciliation of federal and state income taxes at statutory rates to the income taxes included in the statements of operations
Income tax at statutory rate (as a percent)	21.00%	21.00%	21.00%
Tax-exempt interest, net (as a percent)	(1.10%)	(1.60%)	(1.70%)
Stock incentive (as a percent)		0.20%	(0.10%)
State income taxes, net (as a percent)	4.50%	6.50%	5.50%
Income on bank owned life insurance (as a percent)	(0.70%)	(0.90%)	(0.90%)
Tax credit investments	(3.60%)	(3.20%)	(1.30%)
Other, net (as a percent)	1.20%	(0.30%)	0.90%
Total (as a percent)	21.30%	21.70%	23.40%
Deferred tax assets:
Unrealized losses on debt securities available for sale	$ 9,199
ACL	25,884	$ 30,332
Unrealized loss on cash flow hedge	273	871
Stock-based compensation	4,204	2,975
Deferred compensation	55	66
Purchase accounting adjustments	1,213	4,470
Accrued vacation	398	610
Lease liability	2,893	2,142
Employee costs	2,847	1,598
Other	390	431
Total deferred tax assets	47,356	43,495
Deferred tax liabilities:
Unrealized gains on securities available for sale and cash flow hedges		(14,151)
Basis in premises and equipment	(1,347)	(348)
Affordable housing partnerships and other investments	(3,696)	(1,995)
Purchase accounting adjustments	(1,362)	(1,835)
Mortgage servicing assets	(2,853)	(3,418)
Basis in core deposit, customer intangible assets, and asset purchase goodwill	(9,485)	(12,714)
Deferred loan origination costs	(2,454)	(2,654)
Lease right of use asset	(2,877)	(2,130)
Unrealized gain on equity securities	(1,099)	(276)
Other	(560)	(405)
Total deferred tax liabilities	(25,733)	(39,926)
Net deferred tax (liability) asset	21,623	3,569
Valuation allowance, deferred tax assets	$ 0	$ 0

Employee Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Profit Sharing Plan
Vesting period	5 years
Deferred Compensation Plan
Deferred compensation liability	$ 0	$ 0
Benefit Plan Expenses
Profit sharing plan	6,531	5,982	$ 5,777
Deferred compensation plan			80
Total employee benefit plan expenses	$ 6,531	$ 5,982	$ 5,857

Stock-based Compensation (Details)	12 Months Ended
Stock-based Compensation (Details)	Dec. 31, 2021 shares
RSU awards
Share-based Compensation
Number of shares of common stock per award	1
DSU awards
Share-based Compensation
Number of shares of common stock per award	1
Requisite service periods	30 days
Vesting period	1 year
Settlement period	30 days
PSU awards
Share-based Compensation
Number of shares of common stock per award	1
Minimum \| RSU awards
Share-based Compensation
Requisite service periods	1 year
Maximum \| RSU awards
Share-based Compensation
Requisite service periods	5 years

Stock-based Compensation - Award Status (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Shares
Outstanding at beginning of year (in shares)	39,085
Expired (in shares)	(7,699)
Outstanding at end of year (in shares)	31,386	39,085
Exercisable at end of year (in shares)	31,386
Weighted-Average Exercise Price
Outstanding at beginning of year (in dollars per share)	$ 23.53
Expired (in dollars per share)	23.53
Outstanding at end of year (in dollars per share)	23.53	$ 23.53
Exercisable at end of year (in dollars per share)	$ 23.53
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted-Average Remaining Contractual Life, Outstanding	4 years 10 months 17 days	5 years 10 months 17 days
Weighted-Average Remaining Contractual Life, Exercisable	4 years 10 months 17 days
Intrinsic Value, Outstanding at end of year (in dollars)	$ 113
Intrinsic Value, Exercisable at end of year (in dollars)	$ 113

Stock-based Compensation - Restricted , Performance and Deferred Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended	12 Months Ended
	Sep. 22, 2021	May 19, 2021	Mar. 24, 2021	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Additional disclosures
Compensation expense recognized					$ 7,864	$ 7,135	$ 3,997
Period over which cost will be recognized					2 years 10 months 24 days	3 years
RSU awards
Shares
Non-vested at beginning of period (in shares)				1,017,038	1,017,038
Granted (in shares)					260,231
Dividend equivalents earned (in shares)					43,783
Vested (in shares)					(143,242)
Forfeited (in shares)					(29,883)
Non-vested at end of period (in shares)					1,147,927	1,017,038
Weighted-Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)				$ 23.87	$ 23.87
Granted (in dollars per share)					24.26
Dividend equivalents earned (in dollars per share)					23.65
Vested (in dollars per share)					23.50
Forfeited (in dollars per share)					24.88
Non-vested at end of period (in dollars per share)					$ 23.97	$ 23.87
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax (in shares)					116,904
Additional disclosures
Compensation expense recognized					$ 5,809	$ 6,493	3,249
DSU awards
Shares
Non-vested at beginning of period (in shares)				34,263	34,263
Granted (in shares)					35,664
Dividend equivalents earned (in shares)					4,891
Vested (in shares)					(40,683)
Non-vested at end of period (in shares)					34,135	34,263
Vested and Outstanding at end of period (in shares)					97,297
Weighted-Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)				$ 17.18	$ 17.18
Granted (in dollars per share)					24.59
Dividend equivalents earned (in dollars per share)					23.72
Vested (in dollars per share)					18.24
Non-vested at end of period (in dollars per share)					24.59	$ 17.18
Vested and Outstanding at end of period (in dollars per share)					$ 22.02
Additional disclosures
Compensation expense recognized					$ 962	$ 565	$ 602
PSU awards
Shares
Non-vested at beginning of period (in shares)				15,724	15,724
Granted (in shares)				28,344	99,159
Forfeited (in shares)					(968)
Non-vested at end of period (in shares)					113,915	15,724
Weighted-Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)				$ 16.25	$ 16.25
Granted (in dollars per share)					23.91
Forfeited (in dollars per share)					23.48
Non-vested at end of period (in dollars per share)					$ 22.86	$ 16.25
Additional disclosures
Grant date fair value of the award				$ 700
Compensation expense recognized					$ 979	$ 77
PSU awards \| Minimum
Additional disclosures
Vesting percentage (as a percent)				0.00%
PSU awards \| Maximum
Shares
Granted (in shares)				39,682
Additional disclosures
Vesting percentage (as a percent)				140.00%
Market Based Performance Stock Units
Shares
Granted (in shares)				70,815
Additional disclosures
Grant date fair value of the award				$ 1,700
Market Based Performance Stock Units \| Minimum
Additional disclosures
Vesting percentage (as a percent)				0.00%
Market Based Performance Stock Units \| Maximum
Shares
Granted (in shares)				113,304
Additional disclosures
Vesting percentage (as a percent)				160.00%
2020 Equity Incentive Plan \| Members of management
Shares
Granted (in shares)	47,805
Additional disclosures
Grant date fair value of the award	$ 1,100
Vesting percentage (as a percent)	100.00%
2020 Equity Incentive Plan \| Members of management \| Minimum
Additional disclosures
Period over which cost will be recognized	3 years
2020 Equity Incentive Plan \| Members of management \| Maximum
Additional disclosures
Period over which cost will be recognized	5 years
2020 Equity Incentive Plan \| RSU awards \| Members of management, including the Vice-Chairman of the Board
Shares
Granted (in shares)			212,426
Additional disclosures
Grant date fair value of the award			$ 5,200
Accelerated vesting provision, minimum requisite service period			1 year
Vesting percentage (as a percent)			100.00%
2020 Equity Incentive Plan \| RSU awards \| Members of management, including the Vice-Chairman of the Board \| Minimum
Additional disclosures
Period over which cost will be recognized			1 year
2020 Equity Incentive Plan \| RSU awards \| Members of management, including the Vice-Chairman of the Board \| Maximum
Additional disclosures
Period over which cost will be recognized			5 years
2020 Equity Incentive Plan \| DSU awards \| Directors and Advisory Directors
Shares
Granted (in shares)			33,288
Additional disclosures
Grant date fair value of the award			$ 800
Period over which cost will be recognized			1 year
Vesting percentage (as a percent)			100.00%
2020 Equity Incentive Plan \| DSU awards \| Directors
Shares
Granted (in shares)		2,376
Additional disclosures
Grant date fair value of the award		$ 100
Period over which cost will be recognized		1 year
Vesting percentage (as a percent)		100.00%

Stock-based Compensation - 2021 Employee Stock Purchase Plan (Details) - 2021 ESPP	12 Months Ended
	Dec. 31, 2021 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Discount through voluntary payroll deductions (as percentage)	15.00%
Shares Remaining Available for Issuance Pursuant to the Plans	569,610

Stock-based Compensation - Recognized and Unamortized Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation
Total stock-based compensation expense	$ 7,864	$ 7,135	$ 3,997
Total unamortized stock-based compensation expense	$ 11,960	$ 10,884
Weighted average period over which expense is to be recognized	2 years 10 months 24 days	3 years
Stock options
Share-based Compensation
Total stock-based compensation expense			146
RSU awards
Share-based Compensation
Total stock-based compensation expense	$ 5,809	$ 6,493	3,249
Total unamortized stock-based compensation expense	10,204	10,411
PSU awards
Share-based Compensation
Total stock-based compensation expense	979	77
Total unamortized stock-based compensation expense	1,547	179
DSU awards
Share-based Compensation
Total stock-based compensation expense	962	565	$ 602
Total unamortized stock-based compensation expense	209	$ 294
2021 ESPP
Share-based Compensation
Total stock-based compensation expense	$ 114

Transactions with Related Parties (Details) $ in Thousands	12 Months Ended
Transactions with Related Parties (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Analysis of the changes in loans to related parties
Balance at beginning of year	$ 41,921
Change in relationship	(2,033)
New loans/advances	31,761
Repayments	(29,092)
Balance at end of year	42,557
Directors and executive officers
Analysis of the changes in loans to related parties
Total unused commitments	$ 8,600

Outstanding Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Credit Commitments and Contingencies
Total commitments	$ 2,016,207	$ 1,793,307
Commitments to extend credit
Credit Commitments and Contingencies
Total commitments	1,983,655	1,754,370
Standby letters of credit
Credit Commitments and Contingencies
Total commitments	$ 32,552	$ 38,937

Derivative Financial Instruments - Interest Rate Swaps Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Sep. 17, 2021
Derivative [Line Items]
Notional amount	$ 4,000
Cash Flow Hedging \| Interest rate swap
Derivative [Line Items]
Notional amount	$ 50,000	$ 70,000
Swap matured				$ 20,000
Weighted average fixed pay rates	1.79%	1.80%
Weighted average variable 3 month LIBOR receive rates	0.20%	0.22%
Weighted average maturity in years	2 years 8 months 15 days	2 years 10 months 6 days
Unrealized gains (losses), net of tax	$ (685)	$ (2,184)
Unrealized loss to be reclassified from OCI to interest expense during next twelve months	200
Interest income (expense) on swap transactions	(1,067)	(758)	$ 60
Other liabilities \| Cash Flow Hedging \| Interest rate swap
Derivative [Line Items]
Fair value recorded in other liabilities	$ 1,000	$ 3,100

Derivative Financial Instruments - Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) (Details) - Interest rate contract - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Cash pledged to secure obligations	$ 1,000	$ 3,200
Cash Flow Hedging
Derivative [Line Items]
Gain (loss) recognized in OCI, net of tax	736	(2,526)	$ (202)
(Gain) loss reclassified from OCI to interest expense, net of tax	763	542	2
Net change in unrealized gains (losses) on cash flow hedges	$ 1,499	$ (1,984)	$ (200)

Derivative Financial Instruments - Forward Sales Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative Financial Instruments
Notional amount	$ 4,000
Interest rate lock commitments \| Other assets
Derivative Financial Instruments
Notional amount	19,384	$ 45,004
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	206	1,201
Interest rate lock commitments \| Other liabilities
Derivative Financial Instruments
Notional amount	499	118
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other liabilities	6	1
Foreign currency forward contracts \| Other assets
Derivative Financial Instruments
Notional amount	1,884	978
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	10	32
Foreign currency forward contracts \| Other liabilities
Derivative Financial Instruments
Notional amount	41,002	84,964
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other liabilities	439	2,662
Interest rate lock commitments and forward sales commitments \| Designated as hedging instrument
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Net gains (losses)	(2,343)	(8,662)	$ (2,763)
Interest rate lock commitments and forward sales commitments \| Other assets \| Designated as hedging instrument
Derivative Financial Instruments
Notional amount	21,268	45,982
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	216	1,233
Interest rate lock commitments and forward sales commitments \| Other liabilities \| Designated as hedging instrument
Derivative Financial Instruments
Notional amount	41,501	85,082
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other liabilities	445	2,663
Mortgage revenue. \| Interest rate lock commitments \| Designated as hedging instrument
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Gross gains	1,702	9,667	3,988
Mortgage revenue. \| Foreign currency forward contracts \| Designated as hedging instrument
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Gross (losses)	$ (4,045)	$ (18,329)	$ (6,751)

Derivative Financial Instruments - Risk Participation Agreement (Details) $ in Millions	Dec. 31, 2021 USD ($) agreement
Derivative Financial Instruments
Number of risk participant agreement \| agreement	1
Notional amount \| $	$ 4.0

Derivative Financial Instruments - Interest Rate Swaps Not Designated as Hedges (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Interest rate swap
Gains and losses on these derivative assets and liabilities recorded in non-interest expense in the unaudited Consolidated Statements of Income
Cash pledged to secure obligations	$ 26,300	$ 36,000
Interest rate swap \| Not designated as hedging
Derivative Financial Instruments
Variable rate, commercial loans that are supported by the interest rate swap contracts	491,400	395,000
Notional Amount, Derivative Asset	491,356	394,954
Notional Amount, Derivative Liability	491,356	394,954
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	20,098	32,685
Fair value recorded in other liabilities	20,098	32,685
Interest rate swaps - pay floating, receive fixed \| Not designated as hedging
Derivative Financial Instruments
Notional Amount, Derivative Asset	404,572	394,954
Notional Amount, Derivative Liability	86,784
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	17,839	32,685
Fair value recorded in other liabilities	2,259
Interest rate swaps - pay fixed, receive floating \| Not designated as hedging
Derivative Financial Instruments
Notional Amount, Derivative Asset	86,784
Notional Amount, Derivative Liability	404,572	394,954
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	2,259
Fair value recorded in other liabilities	17,839	32,685
Non-interest expense \| Interest rate swap
Gains and losses on these derivative assets and liabilities recorded in non-interest expense in the unaudited Consolidated Statements of Income
Gain (loss) pay, floating receive fixed	(12,587)	20,331	$ 10,915
Gain (loss) pay fixed receive floating	$ 12,587	$ (20,331)	$ (10,915)

Fair Value Measurements - General Disclosures (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	$ 3,981,251	$ 2,261,187
Equity securities	13,571	5,530
Loans held for sale, at fair value	23,875	42,813
U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	165,762	27,837
Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	38,470	69,519
Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	306,869	304,711
Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	614,998	418,616
Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	2,069,313	1,368,315
Asset-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	492,186
Corporate debt securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	293,653	72,189
Recurring basis
Financial assets and financial liabilities measured at fair value
Equity securities	13,571	5,530
Loans held for sale, at fair value	23,875	42,813
Recurring basis \| Derivative assets
Financial assets and financial liabilities measured at fair value
Derivative asset	20,314	33,918
Recurring basis \| Derivative liabilities
Financial assets and financial liabilities measured at fair value
Derivative liability	21,501	38,403
Recurring basis \| U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	165,762	27,837
Recurring basis \| Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	38,470	69,519
Recurring basis \| Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	306,869	304,711
Recurring basis \| Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	614,998	418,616
Recurring basis \| Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	2,069,313	1,368,315
Recurring basis \| Asset-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	492,186
Recurring basis \| Corporate debt securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	293,653	72,189
Recurring basis \| Level 2
Financial assets and financial liabilities measured at fair value
Equity securities	13,571	5,530
Loans held for sale, at fair value	23,875	42,813
Recurring basis \| Level 2 \| Derivative assets
Financial assets and financial liabilities measured at fair value
Derivative asset	20,314	33,918
Recurring basis \| Level 2 \| Derivative liabilities
Financial assets and financial liabilities measured at fair value
Derivative liability	21,501	38,403
Recurring basis \| Level 2 \| U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	165,762	27,837
Recurring basis \| Level 2 \| Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	38,470	69,519
Recurring basis \| Level 2 \| Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	306,869	304,711
Recurring basis \| Level 2 \| Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	614,998	418,616
Recurring basis \| Level 2 \| Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	2,069,313	1,368,315
Recurring basis \| Level 2 \| Asset-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	492,186
Recurring basis \| Level 2 \| Corporate debt securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	$ 293,653	$ 72,189

Fair Value Measurements - Additional Quantitative Information (Details) $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually	$ 15,380	$ 20,246
OREO	3,074	4,570
Non-recurring basis
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually	2,926	2,771
OREO	51	106
Bank property held for sale	10,103	10,676
Non-recurring basis \| Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually	2,926	2,771
OREO	51	106
Bank property held for sale	10,103	10,676
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Loans evaluated individually
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually	$ 2,926	$ 2,771
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Loans evaluated individually \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually (percent)	(50.0)	(30.0)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Loans evaluated individually \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually (percent)	(100.0)	(100.0)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Loans evaluated individually \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually (percent)	(55.1)	(37.0)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO	$ 51	$ 106
Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO (percent)	(33.0)	(25.0)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO (percent)	(100.0)	(100.0)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO (percent)	(67.9)	(54.5)
Non-recurring basis \| Level 3 \| Appraisal of collateral or real estate listing price \| Bank property held for sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Bank property held for sale	$ 10,103	$ 10,676
Non-recurring basis \| Level 3 \| Appraisal of collateral or real estate listing price \| Bank property held for sale \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Bank property held for sale (percent)	(0.7)	(6.2)
Non-recurring basis \| Level 3 \| Appraisal of collateral or real estate listing price \| Bank property held for sale \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Bank property held for sale (percent)	(70.1)	(64.9)
Non-recurring basis \| Level 3 \| Appraisal of collateral or real estate listing price \| Bank property held for sale \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Bank property held for sale (percent)	(41.3)	(42.8)

Fair Value Measurements - Segregated by Level of Valuation Inputs (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financial assets:
Portfolio loans, net	$ 7,101,111	$ 6,713,129
Mortgage servicing rights	1,800,000
Financial liabilities:
Short-term borrowings	17,678	4,658
Junior subordinated debt owed to unconsolidated trusts	71,635	71,468
Level 1 \| Carrying Amount
Financial assets:
Cash and cash equivalents	836,095	688,537
Level 1 \| Fair Value
Financial assets:
Cash and cash equivalents	836,095	688,537
Level 2 \| Carrying Amount
Financial assets:
Accrued interest receivable	31,064	33,240
Financial liabilities:
Time deposits	935,649	1,119,348
Securities sold under agreements to repurchase	270,139	175,614
Short-term borrowings	17,678	4,658
Long-term debt	46,056	4,757
Junior subordinated debt owed to unconsolidated trusts	71,635	71,468
Accrued interest payable	2,728	3,401
Level 2 \| Fair Value
Financial assets:
Accrued interest receivable	31,064	33,240
Financial liabilities:
Time deposits	935,778	1,132,107
Securities sold under agreements to repurchase	270,139	175,614
Short-term borrowings	17,673	4,661
Long-term debt	46,164	5,014
Junior subordinated debt owed to unconsolidated trusts	63,586	59,943
Accrued interest payable	2,728	3,401
Level 3 \| Carrying Amount
Financial assets:
Portfolio loans, net	7,101,111	6,713,129
Mortgage servicing rights	8,608	10,912
Other servicing rights	1,830	1,434
Level 3 \| Fair Value
Financial assets:
Portfolio loans, net	7,161,466	6,755,425
Mortgage servicing rights	12,133	11,107
Other servicing rights	2,268	1,966
Level 3 \| Senior notes \| Carrying Amount
Financial liabilities:
Long-term debt	39,944	39,809
Level 3 \| Senior notes \| Fair Value
Financial liabilities:
Long-term debt	40,400	40,104
Level 3 \| Subordinated debt \| Carrying Amount
Financial liabilities:
Long-term debt	182,773	182,226
Level 3 \| Subordinated debt \| Fair Value
Financial liabilities:
Long-term debt	$ 195,600	$ 187,697

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net income per share calculations for basic and diluted methods
Net income	$ 123,449	$ 100,344	$ 102,953
Shares:
Weighted average common shares outstanding	55,369,476	54,567,429	54,851,652
Dilutive effect of outstanding options, warrants, and restricted stock units as determined by the application of the treasury stock method (in shares)	635,221	259,510	280,842
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation	56,008,805	54,826,939	55,132,494
Basic earnings per common share (in dollars per share)	$ 2.23	$ 1.84	$ 1.88
Diluted earnings per common share (in dollars per share)	$ 2.20	$ 1.83	$ 1.87
Total anti-dilutive common stock equivalents	165,826	206,355	201,029
Employee Stock Purchase Plan Shares
Shares:
Dilutive effect of outstanding options, warrants, and restricted stock units as determined by the application of the treasury stock method (in shares)	4,108
Stock options
Shares:
Total anti-dilutive common stock equivalents		39,085
RSU and DSU awards
Shares:
Total anti-dilutive common stock equivalents	72,800	159,408	201,029
PSU awards
Shares:
Total anti-dilutive common stock equivalents	93,026	7,862

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Changes in accumulated other comprehensive income (loss) by component, net of tax
Beginning balance	$ 1,270,069	$ 1,220,434	$ 994,964
Unrealized gains (losses) on debt securities available for sale:
Unrealized holding gains (losses) on debt securities available for sale, Tax Effect	(23,367)	8,615	7,525
Unrealized holding gains (losses) on debt securities available for sale, Net of Tax	(58,610)	21,561	18,905
Unrealized gains on debt securities transferred from held to maturity to available for sale, Tax Effect			1,433
Unrealized gains on debt securities transferred from held to maturity to available for sale, Net of Tax			3,590
Amounts reclassified from AOCI, Tax Effect	(17)	496	210
Amounts reclassified from AOCI, Net of Tax	44	(1,228)	(523)
Unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) on cash flow hedges, Tax Effect	294	(1,007)	(81)
Unrealized holding gains (losses) on cash flow hedges, Net of Tax	736	(2,526)	(202)
Amounts reclassified from AOCI, Tax Effect	(304)	(216)	(1)
Amounts reclassified from AOCI, Net of Tax	(763)	(542)	(2)
Ending balance	1,319,112	1,270,069	1,220,434
AOCI
Changes in accumulated other comprehensive income (loss) by component, net of tax
Accumulated other comprehensive income (loss) beginning balance period, Before Tax	46,589	20,912
Accumulated other comprehensive income (loss) beginning balance period, Tax Effect	(13,280)	(5,952)
Beginning balance	33,309	14,960	(6,812)
Unrealized gains (losses) on cash flow hedges:
Accumulated other comprehensive income (loss) ending balance period, Before Tax	(33,230)	46,589	20,912
Accumulated other comprehensive income (loss) ending balance period, Tax Effect	9,472	(13,280)	(5,952)
Ending balance	(23,758)	33,309	14,960
Unrealized gains (losses) on debt securities available for sale
Changes in accumulated other comprehensive income (loss) by component, net of tax
Accumulated other comprehensive income (loss) beginning balance period, Before Tax	49,644	21,192	(9,528)
Accumulated other comprehensive income (loss) beginning balance period, Tax Effect	(14,151)	(6,032)	2,716
Beginning balance	35,493	15,160	(6,812)
Unrealized gains (losses) on debt securities available for sale:
Unrealized holding gains (losses) on debt securities available for sale, Before Tax	(81,977)	30,176	26,430
Unrealized holding gains (losses) on debt securities available for sale, Tax Effect	23,367	(8,615)	(7,525)
Unrealized holding gains (losses) on debt securities available for sale, Net of Tax	(58,610)	21,561	18,905
Unrealized gains on debt securities transferred from held to maturity to available for sale, Before Tax			5,023
Unrealized gains on debt securities transferred from held to maturity to available for sale, Tax Effect			(1,433)
Unrealized gains on debt securities transferred from held to maturity to available for sale, Net of Tax			3,590
Amounts reclassified from AOCI, Before Tax	61	(1,724)	(733)
Amounts reclassified from AOCI, Tax Effect	(17)	496	210
Amounts reclassified from AOCI, Net of Tax	44	(1,228)	(523)
Unrealized gains (losses) on cash flow hedges:
Accumulated other comprehensive income (loss) ending balance period, Before Tax	(32,272)	49,644	21,192
Accumulated other comprehensive income (loss) ending balance period, Tax Effect	9,199	(14,151)	(6,032)
Ending balance	(23,073)	35,493	15,160
Unrealized gains (losses) on cash flow hedges
Changes in accumulated other comprehensive income (loss) by component, net of tax
Accumulated other comprehensive income (loss) beginning balance period, Before Tax	(3,055)	(280)
Accumulated other comprehensive income (loss) beginning balance period, Tax Effect	871	80
Beginning balance	(2,184)	(200)
Unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) on cash flow hedges, Before Tax	1,030	(3,533)	(283)
Unrealized holding gains (losses) on cash flow hedges, Tax Effect	(294)	1,007	81
Unrealized holding gains (losses) on cash flow hedges, Net of Tax	736	(2,526)	(202)
Amounts reclassified from AOCI, Before Tax	1,067	758	3
Amounts reclassified from AOCI, Tax Effect	(304)	(216)	(1)
Amounts reclassified from AOCI, Net of Tax	763	542	2
Accumulated other comprehensive income (loss) ending balance period, Before Tax	(958)	(3,055)	(280)
Accumulated other comprehensive income (loss) ending balance period, Tax Effect	273	871	80
Ending balance	$ (685)	$ (2,184)	$ (200)

Operating Segments and Related Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Operating Segments and Related Information
Number of reportable segments \| segment	3
Number of operating segments \| segment	3
Goodwill	$ 317,873	$ 311,536
Total Assets	12,859,689	10,544,047
Net interest income	270,698	282,935	$ 287,223
Noninterest income	132,804	118,265	116,415
Noninterest expense	261,780	234,197	258,794
Income before income taxes	156,823	128,206	134,438
Net income	123,449	100,344	102,953
Banking
Operating Segments and Related Information
Goodwill	294,773	288,436
FirsTech
Operating Segments and Related Information
Goodwill	8,992	8,992
Wealth Management
Operating Segments and Related Information
Goodwill	14,108	14,108
Operating segments \| Banking
Operating Segments and Related Information
Goodwill	294,773	288,436
Total Assets	12,746,833	10,462,673
Net interest income	285,678	294,728	296,754
Noninterest income	59,393	61,043	63,613
Noninterest expense	205,905	185,445	211,559
Income before income taxes	154,267	131,529	138,401
Net income	117,844	101,226	106,409
Operating segments \| FirsTech
Operating Segments and Related Information
Goodwill	8,992	8,992
Total Assets	47,481	46,553
Net interest income	79	79	76
Noninterest income	19,629	16,548	16,450
Noninterest expense	17,574	13,279	10,990
Income before income taxes	2,134	3,348	5,536
Net income	1,527	2,372	4,060
Operating segments \| Wealth Management
Operating Segments and Related Information
Goodwill	14,108	14,108
Total Assets	65,587	46,504
Noninterest income	53,082	43,429	39,075
Noninterest expense	29,198	26,086	24,534
Income before income taxes	23,884	17,343	14,541
Net income	18,570	13,181	11,135
Other
Operating Segments and Related Information
Total Assets	(212)	(11,683)
Net interest income	(15,059)	(11,872)	(9,607)
Noninterest income	700	(2,755)	(2,723)
Noninterest expense	9,103	9,387	11,711
Income before income taxes	(23,462)	(24,014)	(24,040)
Net income	$ (14,492)	$ (16,435)	$ (18,651)

Leases - Lease-related balances (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Leases
Right of use assets	$ 10,533	$ 7,714
Lease liabilities	$ 10,591	$ 7,757
Weighted average lease term (in years)	6 years 5 months 19 days	5 years 11 months 4 days
Weighted average discount rate (in percent)	2.16%	2.82%

Leases - Lease Cost and Other Lease Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Lease Costs
Operating lease costs	$ 2,464	$ 2,524	$ 2,364
Variable lease costs	540	416	432
Short-term lease costs	49	35	84
Total lease cost	3,053	2,975	2,880
Cash paid for amounts included in the measurement of lease liabilities
Operating lease cash flows - Fixed payments	2,417	2,526	2,296
Operating lease cash flows - Liability reduction	2,217	2,289	2,010
Right of use assets obtained during the period in exchange for operating lease liabilities	5,818	$ 743	$ 923
CAC
Cash paid for amounts included in the measurement of lease liabilities
Right of use assets obtained during the period in exchange for operating lease liabilities	$ 400

Leases - Undiscounted Lease Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Projected minimum rental payments under the terms of leases
2022	$ 2,271
2023	2,098
2024	1,650
2025	1,413
2026	1,164
Thereafter	2,766
Total undiscounted cash flows	11,362
Less: Amounts representing interest	771
Present value of net future minimum lease payments	$ 10,591	$ 7,757

Leases - Busey as the Lessor (Details) $ in Thousands		12 Months Ended
Leases - Busey as the Lessor (Details) $ in Thousands	May 31, 2021 item	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Lessor, Lease, Description [Line Items]
Lease income \| $		$ 566	$ 228	$ 263
Glenview, IL
Lessor, Lease, Description [Line Items]
Number of office buildings	2
Northbrook, IL
Lessor, Lease, Description [Line Items]
Number of office buildings	1

Parent Company Only Financial Information - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 836,095	$ 688,537
Equity securities	13,571	5,530
Investments in subsidiaries:
Premises and equipment, net	136,147	135,191
Other assets	204,242	150,020
Total assets	12,859,689	10,544,047
Liabilities:
Short-term borrowings	17,678	4,658
Long-term debt	46,056	4,757
Senior notes, net of unamortized issuance costs	39,944	39,809
Subordinated notes, net of unamortized issuance costs	182,773	182,226
Junior subordinated debentures owed to unconsolidated trusts	71,635	71,468
Other liabilities	133,184	109,840
Total liabilities	11,540,577	9,273,978
Total stockholders' equity	1,319,112	1,270,069	$ 1,220,434	$ 994,964
Total liabilities and stockholders' equity	12,859,689	10,544,047
Parent
ASSETS
Cash and cash equivalents	78,217	129,183
Equity securities	13,571	5,530
Investments in subsidiaries:
Bank	1,565,226	1,417,130
Non-bank	2,812	2,746
Premises and equipment, net	30	51
Other assets	22,444	21,664
Total assets	1,682,300	1,576,304
Liabilities:
Short-term borrowings	12,000
Long-term debt	42,000
Senior notes, net of unamortized issuance costs	39,944	39,809
Subordinated notes, net of unamortized issuance costs	182,773	182,226
Junior subordinated debentures owed to unconsolidated trusts	71,635	71,468
Other liabilities	14,836	12,732
Total liabilities	363,188	306,235
Total stockholders' equity	1,319,112	1,270,069
Total liabilities and stockholders' equity	$ 1,682,300	$ 1,576,304

Parent Company Only Financial Information - Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Dividends from subsidiaries:
Other income	$ 10,292	$ 8,356	$ 8,048
Expense:
Salaries, wages and employee benefits	145,312	126,719	140,473
Interest expense	28,102	43,663	69,011
Income tax benefit	(33,374)	(27,862)	(31,485)
Equity in undistributed (in excess of) net income of subsidiaries:
Net income	123,449	100,344	102,953
Parent
Dividends from subsidiaries:
Bank	60,000	122,000	70,000
Non-bank	1,745
Interest income	79	154	441
Gain (loss) on equity securities	3,041	(393)	(759)
Other income	12,109	10,083	10,224
Total operating income	76,974	131,844	79,906
Expense:
Salaries, wages and employee benefits	17,914	16,205	15,288
Interest expense	15,163	12,056	10,054
Operating expense	7,429	7,685	8,960
Total expense	40,506	35,946	34,302
Income (loss) before income tax benefit and equity in undistributed (in excess of) net income of subsidiaries	36,468	95,898	45,604
Income tax benefit	8,974	7,727	5,389
Income (loss) before equity in undistributed (in excess of) net income of subsidiaries	45,442	103,625	50,993
Equity in undistributed (in excess of) net income of subsidiaries:
Bank	77,941	(5,221)	51,604
Non-bank	66	1,940	356
Net income	$ 123,449	$ 100,344	$ 102,953

Parent Company Only Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash Flows from Operating Activities
Net income	$ 123,449	$ 100,344	$ 102,953
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	11,610	12,273	11,879
Change in fair value of equity securities, net	(3,041)	393	759
Stock-based compensation	7,864	7,135	3,997
Changes in assets and liabilities:
(Increase) decrease in other assets	7,203	(8,210)	4,197
Increase (decrease) in other liabilities	(28,096)	(6,551)	(7,380)
Net cash provided by (used in) operating activities	162,012	163,174	88,322
Cash Flows from Investing Activities
Purchases of equity securities	(11,017)	(13,123)	(550)
Purchases of premises and equipment	(5,042)	(4,198)	(13,238)
Net cash provided by (used in) investing activities	(829,190)	(729,539)	57,436
Cash Flows from Financing Activities
Cash paid for withholding taxes on stock-based payments	(997)	(635)	(863)
Cash dividends paid	(50,764)	(48,012)	(45,171)
Proceeds from stock options exercised		101	169
Purchase of treasury stock	(33,043)	(12,272)	(24,292)
Common stock issuance costs	(150)		(234)
Net cash provided by (used in) financing activities	814,736	725,614	143,557
Net increase (decrease) in cash and cash equivalents	147,558	159,249	289,315
Cash and cash equivalents, beginning of period	688,537	529,288	239,973
Cash and cash equivalents, ending of period	836,095	688,537	529,288
Parent
Cash Flows from Operating Activities
Net income	123,449	100,344	102,953
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	882	648	420
Distributions more (less) than net income of subsidiaries	(78,007)	3,281	(51,961)
Change in fair value of equity securities, net	(3,041)	393	759
Stock-based compensation	7,864	7,135	3,997
Changes in assets and liabilities:
(Increase) decrease in other assets	(1,186)	405	(4,279)
Increase (decrease) in other liabilities	(3,302)	(5,772)	(1,280)
Net cash provided by (used in) operating activities	46,659	106,434	50,609
Cash Flows from Investing Activities
Purchases of equity securities	(5,000)		(520)
Net cash paid for business acquisition	(61,656)		(90,722)
Purchases of premises and equipment	(15)	(19)	(31)
Net cash provided by (used in) investing activities	(66,671)	(19)	(91,273)
Cash Flows from Financing Activities
Cash paid for withholding taxes on stock-based payments	(997)	(635)	(863)
Cash dividends paid	(50,764)	(48,012)	(45,171)
Repayments of debt	(18,500)	(74,000)	(6,000)
Proceeds from issuance of debt	72,500	142,634	60,000
Proceeds from stock options exercised		101	169
Purchase of treasury stock	(33,043)	(12,272)	(24,292)
Common stock issuance costs	(150)		(234)
Net cash provided by (used in) financing activities	(30,954)	7,816	(16,391)
Net increase (decrease) in cash and cash equivalents	(50,966)	114,231	(57,055)
Cash and cash equivalents, beginning of period	129,183	14,952	72,007
Cash and cash equivalents, ending of period	$ 78,217	$ 129,183	$ 14,952