0001558370-22-007435 | 10-Q | XBRL Viewer

Three Months Ended March 31,

Interest income (expense) on swap transactions

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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2022	May 05, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Entity File Number	0-15950
Entity Registrant Name	FIRST BUSEY CORPORATION
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	37-1078406
Entity Address, Address Line One	100 W. University Ave.
Entity Address, City or Town	Champaign
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	61820
City Area Code	217
Local Phone Number	365-4544
Title of 12(b) Security	Common Stock, $.001 par value
Trading Symbol	BUSE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		55,276,920
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000314489
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Cash and cash equivalents:
Cash and due from banks	$ 119,891	$ 102,983
Interest-bearing deposits	359,337	733,112
Total cash and cash equivalents	479,228	836,095
Debt securities available for sale	2,946,055	3,981,251
Debt securities held to maturity	976,081
Equity securities	19,520	13,571
Loans held for sale (2022 at LOCOM, 2021 at fair value)	6,765	23,875
Portfolio loans (net of ACL of $88,213 at March 31, 2022, and $87,887 at December 31, 2021)	7,184,660	7,101,111
Premises and equipment, net	133,658	136,147
Right of use assets	9,014	10,533
Goodwill	317,873	317,873
Other intangible assets, net	55,040	58,051
Cash surrender value of bank owned life insurance	177,703	176,940
Other assets	261,912	204,242
Total assets	12,567,509	12,859,689
Deposits:
Noninterest-bearing	3,568,651	3,670,267
Interest-bearing	7,023,185	7,098,310
Total deposits	10,591,836	10,768,577
Securities sold under agreements to repurchase	255,668	270,139
Short-term borrowings	17,683	17,678
Long-term debt	42,881	46,056
Senior notes, net of unamortized issuance costs	39,978	39,944
Subordinated notes, net of unamortized issuance costs	182,910	182,773
Junior subordinated debt owed to unconsolidated trusts	71,678	71,635
Lease liabilities	9,067	10,591
Other liabilities	137,783	133,184
Total liabilities	11,349,484	11,540,577
Outstanding commitments and contingent liabilities (see Notes 9 and 15)
Stockholders' Equity
Common stock, ($.001 par value; 100,000,000 shares authorized)	58	58
Additional paid-in capital	1,318,701	1,316,984
Retained earnings	107,890	92,463
AOCI	(137,605)	(23,758)
Total stockholders' equity before treasury stock	1,289,044	1,385,747
Treasury stock at cost	(71,019)	(66,635)
Total stockholders' equity	1,218,025	1,319,112
Total liabilities and stockholders' equity	$ 12,567,509	$ 12,859,689
Shares
Common shares issued	58,116,970	58,116,970
Less treasury shares	(2,838,185)	(2,682,060)
Common shares outstanding	55,278,785	55,434,910

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
CONSOLIDATED BALANCE SHEETS
Portfolio Loans, allowance for loan losses (in dollars)	$ 88,213	$ 87,887
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	3 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Interest income
Interest and fees on loans	$ 60,882	$ 62,565
Interest and dividends on investment securities:
Taxable interest income	14,094	8,611
Non-taxable interest income	838	1,005
Other interest income	277	150
Total interest income	76,091	72,331
Interest expense
Deposits	2,124	3,732
Federal funds purchased and securities sold under agreements to repurchase	59	57
Short-term borrowings	89	19
Long-term debt	226	29
Senior notes	400	400
Subordinated notes	2,483	2,476
Junior subordinated debt owed to unconsolidated trusts	654	725
Total interest expense	6,035	7,438
Net interest income	70,056	64,893
Provision for credit losses	(253)	(6,796)
Net interest income after provision for credit losses	70,309	71,689
Noninterest income
Income on bank owned life insurance	884	964
Realized net gains (losses) on securities	106	25
Unrealized net gains (losses) recognized on equity securities	(720)	1,616
Other income	4,764	932
Total noninterest income	35,772	31,445
Noninterest expense
Salaries, wages, and employee benefits	39,354	30,384
Data processing	4,978	4,280
Net occupancy expense of premises	5,067	4,563
Furniture and equipment expenses	2,030	2,026
Professional fees	1,507	1,945
Amortization of intangible assets	3,011	2,401
Interchange expense	1,545	1,484
Other expense	12,884	7,416
Total noninterest expense	70,376	54,499
Income before income taxes	35,705	48,635
Income taxes	7,266	10,819
Net income	$ 28,439	$ 37,816
Basic earnings per common share (in dollars per share)	$ 0.51	$ 0.69
Diluted earnings per common share (in dollars per share)	0.51	0.69
Dividends declared per share of common stock (in dollars per share)	$ 0.23	$ 0.23
Wealth management fees
Noninterest income
Non-interest income	$ 15,779	$ 12,584
Fees for customer services
Noninterest income
Non-interest income	8,907	8,037
Remittance processing
Noninterest income
Non-interest income	5,077	4,621
Mortgage revenue
Noninterest income
Mortgage revenue	$ 975	$ 2,666

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income	$ 28,439	$ 37,816
Unrealized gains (losses) on debt securities available for sale:
Net unrealized holding gains (losses) on debt securities available for sale, net of taxes of $29,726 and $11,993, respectively	(74,556)	(30,079)
Unrealized gains (losses) on debt securities transferred to held to maturity from available for sale, net of taxes of $13,812 and $-, respectively	(34,644)
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, net of taxes of $30 and $7, respectively	(76)	(18)
Amortization of unrealized losses on securities transferred to held to maturity, net of taxes of ($252) and $-, respectively	631
Net change in unrealized gains (losses) on debt securities available for sale	(108,645)	(30,097)
Unrealized gains (losses) on cash flow hedges:
Net unrealized holding gains (losses) on cash flow hedges, net of taxes of $1,931 and ($164), respectively	(4,845)	410
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, net of taxes of $143 and ($79), respectively	(357)	199
Net change in unrealized gains (losses) on cash flow hedges	(5,202)	609
Net change in AOCI	(113,847)	(29,488)
Total comprehensive income (loss)	$ (85,408)	$ 8,328

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net unrealized holding gains (losses) on debt securities available for sale, taxes	$ 29,726	$ 11,993
Net unrealized (gains) losses on debt securities transferred from held to maturity to available for sale, taxes	13,812
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, taxes	30	$ 7
Amortiztion of frozen held maturity OCI mark, net of taxes	(252)
Net unrealized holding gains (losses) on cash flow hedges, taxes	1,931
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, taxes	$ 143

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	AOCI	Treasury Stock	Total
Beginning balance at Dec. 31, 2020	$ 56	$ 1,253,360	$ 20,830	$ 33,309	$ (37,486)	$ 1,270,069
Beginning Balance (in shares) at Dec. 31, 2020	54,404,379
Increase (decrease) in shareholders' equity
Net income			37,816			37,816
OCI, net of tax				(29,488)		(29,488)
Repurchase of stock					(1,510)	(1,510)
Repurchase of stock (in shares)	(59,000)
Cash dividends common stock			(12,513)			(12,513)
Stock dividend equivalents RSUs		236	(236)
Stock-based compensation		1,448				1,448
Ending balance at Mar. 31, 2021	$ 56	1,255,044	45,897	3,821	(38,996)	1,265,822
Ending Balance (in shares) at Mar. 31, 2021	54,345,379
Beginning balance at Dec. 31, 2021	$ 58	1,316,984	92,463	(23,758)	(66,635)	1,319,112
Beginning Balance (in shares) at Dec. 31, 2021	55,434,910
Increase (decrease) in shareholders' equity
Net income			28,439			28,439
OCI, net of tax				(113,847)		(113,847)
Repurchase of stock					(5,220)	(5,220)
Repurchase of stock (in shares)	(188,614)
Issuance of treasury stock for ESPP		(106)			647	541
Issuance of treasury stock for ESPP (in shares)	25,140
Net issuance of treasury stock for RSU/DSU vesting and related tax		(359)			189	(170)
Net issuance of treasury stock for RSU/DSU vesting and related tax (in shares)	7,349
Cash dividends common stock			(12,739)			(12,739)
Stock dividend equivalents RSUs		273	(273)
Stock-based compensation		1,909				1,909
Ending balance at Mar. 31, 2022	$ 58	$ 1,318,701	$ 107,890	$ (137,605)	$ (71,019)	$ 1,218,025
Ending Balance (in shares) at Mar. 31, 2022	55,278,785

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Cash dividends, common stock (in dollars per share)	$ 0.23	$ 0.23
Stock dividends, restricted stock units (in dollars per share)	$ 0.23	$ 0.23

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash Flows Provided by (Used in) Operating Activities
Net income	$ 28,439	$ 37,816
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for credit losses	(253)	(6,796)
Amortization of intangible assets	3,011	2,401
Amortization of mortgage servicing rights	980	1,616
Amortization of NMTC	1,341	1,829
Depreciation and amortization of premises and equipment	2,756	2,808
Net amortization (accretion) on portfolio loans	(36)	(3,375)
Net amortization (accretion) of premium (discount) on investment securities	5,930	4,554
Net amortization (accretion) of premium (discount) on time deposits	(124)	(246)
Net amortization (accretion) of premium (discount) on FHLB advances and other borrowings	212	214
Impairment of OREO and other repossessed assets	611
Impairment of mortgage servicing rights	(9)	(508)
Unrealized (gains) losses recognized on equity securities	720	(1,616)
(Gain) loss on sales of debt securities, net	(106)	(25)
(Gain) loss on sales of loans, net	(1,089)	(3,369)
(Gain) loss on sales of OREO		(1)
(Gain) loss on sales of premises and equipment	(838)	(134)
(Gain) loss on life insurance proceeds	1
(Increase) decrease in cash surrender value of bank owned life insurance	(885)	(964)
Provision for deferred income taxes	(157)	2,448
Stock-based compensation	1,909	1,448
Mortgage loans originated for sale	(33,506)	(91,479)
Proceeds from sales of mortgage loans	51,350	98,307
Net change in operating assets and liabilities:
(Increase) decrease in other assets	(16,429)	(1,569)
Increase (decrease) in other liabilities	(1,323)	750
Net cash provided by (used in) operating activities	42,505	44,109
Cash Flows Provided by (Used in) Investing Activities
Purchases of equity securities	(5,948)	(998)
Purchases of debt securities available for sale	(274,964)	(789,884)
Proceeds from sales of equity securities		998
Proceeds from paydowns and maturities of debt securities held to maturity	9,585
Proceeds from paydowns and maturities of debt securities available for sale	166,709	207,490
Net (increase) decrease in loans	(83,392)	37,929
Cash paid for premiums on bank-owned life insurance	(96)	(97)
Proceeds from life insurance	217
Purchases of premises and equipment	(734)	(1,911)
Proceeds from disposition of premises and equipment	1,305	1,759
Proceeds from sales of OREO	331	294
Net cash provided by (used in) investing activities	(186,987)	(544,420)
Cash Flows Provided by (Used in) Financing Activities
Net increase (decrease) in deposits	(176,617)	196,244
Net change in federal funds purchased and securities sold under agreements to repurchase	(14,471)	34,518
Repayment of FHLB advances	(168)	(163)
Repayment of other borrowings	(3,000)
Cash dividends paid	(12,739)	(12,513)
Purchase of treasury stock	(5,220)	(1,510)
Cash paid for withholding taxes on stock-based payments	(170)
Net cash provided by (used in) financing activities	(212,385)	216,576
Net increase (decrease) in cash and cash equivalents	(356,867)	(283,735)
Cash and cash equivalents, beginning of period	836,095	688,537
Cash and cash equivalents, ending of period	479,228	404,802
Cash payments for:
Interest	3,647	$ 5,168
Non-cash investing and financing activities:
OREO acquired in settlement of loans	132
Transfer of debt securities available for sale to held to maturity	$ 985,199

Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Significant Accounting Policies

Significant Accounting Policies

Note 1: Significant Accounting Policies

Nature of Operations

First Busey Corporation, a Nevada corporation organized in 1980, is a $12.6 billion financial holding company headquartered in Champaign, Illinois. Our common stock is traded on The Nasdaq Global Select Market under the symbol “BUSE.”

The Company operates and reports its business in three segments: Banking, FirsTech, and Wealth Management.

Banking

The Banking operating segment provides a full range of banking services to individual and corporate customers through the Company’s wholly-owned bank subsidiary, Busey Bank, with 58 banking centers in Illinois; the St. Louis, Missouri metropolitan area; southwest Florida; and Indianapolis, Indiana.

FirsTech

The FirsTech operating segment provides comprehensive and innovative payment technology solutions that include, but are not limited to, text-based mobile bill pay; electronic payment concentration delivered to Automated Clearing House networks, money management, and credit card networks; walk-in payment processing for customers at retail pay agents; customer service payments made over a telephone; direct debit services; and lockbox remittance processing for customers to make payments by mail. FirsTech also provides additional tools to help clients with billing, reconciliation, bill reminders, and treasury services.

Wealth Management

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.

Basis of Financial Statement Presentation

These unaudited consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements included in our 2021 Annual Report. These interim unaudited consolidated financial statements serve to update our 2021 Annual Report and may not include all information and notes necessary to constitute a complete set of financial statements.

We prepared these unaudited consolidated financial statements in conformity with GAAP. We have eliminated intercompany accounts and transactions. We have also reclassified certain prior year amounts to conform to the current period presentation. These reclassifications did not have a material impact on our consolidated financial condition or results of operations.

In our opinion, the unaudited consolidated financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period.

Use of Estimates

In preparing the accompanying unaudited 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 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.

Change in Accounting Principle

Effective January 1, 2022, the Company elected to account for all newly originated loans held for sale at LOCOM. Prior to this change, the Company accounted for loans held for sale at fair value. In the first quarter of 2022, this change did not have a material impact on our results of operations.

Impact of Recently Adopted Accounting Standards

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 did not have a material impact on First Busey’s 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 Topic 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 was effective for First Busey beginning January 1, 2022, and was applied on a prospective basis. Adoption of this standard did not have a material impact on the Company’s financial position or results of operations.

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 was effective for First Busey beginning January 1, 2022, and was applied on a prospective basis. Adoption of this standard did not have a material impact on the Company’s financial position or results of operations.

Recently Issued Accounting Standards

ASU 2022-02 “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” eliminates the TDR accounting model for creditors that have already adopted CECL. In lieu of the TDR accounting model, loan refinancing and restructuring guidance in ASC Subtopic 310-20 “Investments—Debt Securities” will apply to all loan modifications, including those made for borrowers experiencing financial difficulty. This standard also enhances disclosure requirements related to certain loan modifications. Additionally, this standard introduces new requirements to disclose gross write-off information in the vintage disclosures of financing receivables by credit quality indicator and class of financing receivable by year of origination. This standard applies prospectively. For the transition method related to the recognition and measurement of TDRs, there is an option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. This standard is effective for First Busey beginning January 1, 2023. Early adoption is permitted. First Busey has not yet selected an adoption date and is currently evaluating the potential effect on the Company’s financial position and results of operations.

ASU 2022-01 “Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method” replaces the current last-of-layer hedge accounting method with an expanded portfolio layer method that permits multiple hedged layers of a single closed portfolio. The scope of the portfolio layer method is also expanded to include non-prepayable financial assets. This update also provides additional guidance on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method, and specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. Amendments related to hedge basis adjustments which are included in this standard apply on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings on the initial application date. Amendments related to disclosure which are included in this standard may be applied on a prospective basis from the initial application date, or on a retrospective basis to each prior period presented after the date of adoption of the amendments in ASU 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” This standard is effective for First Busey beginning January 1, 2023, and may be early adopted. First Busey has not yet selected an adoption date and is currently evaluating the potential effect on the Company’s financial position and 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 ASC Topic 606 “Revenue from Contracts with Customers” for contract assets and contract liabilities acquired in a business combination. This update is effective for First Busey 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. First Busey has not yet selected an adoption date and is currently evaluating the potential effect on the Company’s financial position and results of operations.

COVID-19

Throughout the COVID-19 pandemic, First Busey operated as an essential community resource, providing approximately $1.1 billion in payroll assistance for small businesses and select nonprofits through low-interest, 100% government-guaranteed loans as part of the PPP. First Busey had $32.5 million in PPP loans outstanding, with an amortized cost of $31.8 million, as of March 31, 2022. In comparison, First Busey had $76.9 million in PPP loans outstanding, with an amortized cost of $75.0 million, as of December 31, 2021.

Subsequent Events

The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the unaudited consolidated financial statements included in this Quarterly Report were issued. There were no significant subsequent events for the quarter ended March 31, 2022, through the filing date of these unaudited consolidated financial statements.

Acquisitions

3 Months Ended

Mar. 31, 2022

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 shares 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 stock 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. There were no fair value adjustments recorded during the first quarter of 2022, and 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.

During the three months ended March 31, 2022, First Busey incurred $0.8 million in pre-tax acquisition expenses related to the acquisition of CAC, comprised primarily of compensation expense and data processing expense.

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

3 Months Ended

Mar. 31, 2022

Debt Securities

Debt Securities

Note 3: Debt Securities

During the three months ended March 31, 2022, a portion of the securities available for sale were transferred to securities held to maturity. The tables below provide the amortized cost, unrealized gains and losses, and fair values of debt securities summarized by major category (dollars in thousands):


	As of March 31, 2022
	Amortized		Unrealized				Fair
	Cost		Gross Gains		Gross Losses		Value
Debt securities available for sale
U.S. Treasury securities	$	160,990	$	16	$	(3,498)	$	157,508
Obligations of U.S. government corporations and agencies		34,069		243		(11)		34,301
Obligations of states and political subdivisions		308,514		1,378		(10,300)		299,592
Asset-backed securities		491,269		12		(2,677)		488,604
Commercial mortgage-backed securities		111,535		30		(4,063)		107,502
Residential mortgage-backed securities		1,678,891		629		(104,144)		1,575,376
Corporate debt securities		297,447		361		(14,636)		283,172
Total debt securities available for sale	$	3,082,715	$	2,669	$	(139,329)	$	2,946,055

Debt securities held to maturity
Commercial mortgage-backed securities	$	503,285	$	—	$	(15,521)	$	487,764
Residential mortgage-backed securities		472,796		—		(17,714)		455,082
Total debt securities held to maturity	$	976,081	$	—	$	(33,235)	$	942,846


	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

Maturities of debt securities

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 March 31, 2022
	Amortized		Fair
	Cost		Value
Debt securities available for sale
Due in one year or less	$	174,918	$	174,182
Due after one year through five years		456,926		441,159
Due after five years through ten years		313,336		303,050
Due after ten years		2,137,535		2,027,664
Debt securities available for sale	$	3,082,715	$	2,946,055

Debt securities held to maturity
Due in one year or less	$	—	$	—
Due after one year through five years		48,405		47,185
Due after five years through ten years		66,693		64,572
Due after ten years		860,983		831,089
Debt securities held to maturity	$	976,081	$	942,846

Gains and losses on debt securities

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


	Three Months Ended March 31,
	2022		2021
Realized gains and losses on debt securities
Gross security gains	$	113	$	25
Gross security (losses)		(7)		—
Realized net gains (losses) on debt securities	$	106	$	25

Debt securities with carrying amounts of $717.6 million on March 31, 2022, and $708.9 million on December 31, 2021, were pledged as collateral for public deposits, securities sold under agreements to repurchase, and for other purposes as required.

Debt securities in an unrealized loss position

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 March 31, 2022
	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	$	155,422	$	(3,498)	$	—	$	—	$	155,422	$	(3,498)
Obligations of U.S. government corporations and agencies		390		(11)		—		—		390		(11)
Obligations of states and political subdivisions		158,528		(9,277)		9,847		(1,023)		168,375		(10,300)
Asset-backed securities		470,964		(2,677)		—		—		470,964		(2,677)
Commercial mortgage-backed securities		87,087		(3,558)		7,203		(505)		94,290		(4,063)
Residential mortgage-backed securities		1,054,313		(65,980)		393,830		(38,164)		1,448,143		(104,144)
Corporate debt securities		216,592		(11,652)		39,598		(2,984)		256,190		(14,636)
Debt securities available for sale with gross unrealized losses	$	2,143,296	$	(96,653)	$	450,478	$	(42,676)	$	2,593,774	$	(139,329)

Debt securities held to maturity
Commercial mortgage-backed securities	$	281,462	$	(9,329)	$	206,302	$	(6,192)	$	487,764	$	(15,521)
Residential mortgage-backed securities		412,450		(15,940)		42,632		(1,774)		455,082		(17,714)
Debt securities held to maturity with gross unrealized losses	$	693,912	$	(25,269)	$	248,934	$	(7,966)	$	942,846	$	(33,235)


	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)
Debt securities available for sale with gross unrealized losses	$	2,676,734	$	(49,847)	$	106,443	$	(4,807)	$	2,783,177	$	(54,654)

Additional information about debt securities in an unrealized loss position is presented in the tables below (dollars in thousands):


	As of March 31, 2022
	Available for Sale			Held to Maturity			Total
Debt securities with gross unrealized losses, fair value	$	2,593,774		$	942,846		$	3,536,620
Gross unrealized losses on debt securities	$	139,329		$	33,235		$	172,564
Ratio of gross unrealized losses to debt securities with gross unrealized losses		5.4	%		3.5	%		4.9	%

Count of debt securities		1,185			55			1,240
Count of debt securities in an unrealized loss position		645			55			700


	As of December 31, 2021
	Available for Sale			Held to Maturity		Total
Debt securities with gross unrealized losses, fair value	$	2,783,177		$	—	$	2,783,177
Gross unrealized losses on debt securities	$	54,654		$	—	$	54,654
Ratio of gross unrealized losses to debt securities with gross unrealized losses		2.0	%		—		2.0	%

Count of debt securities		1,252			—		1,252
Count of debt securities in an unrealized loss position		373			—		373

Unrealized losses were related to changes in market interest rates and market conditions that do not represent credit-related impairments. The Company does not intend to sell securities that are in an unrealized loss position, 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, no ACL was recorded in relation to the Company’s debt securities, and the impairment related to noncredit factors is recognized in AOCI, net of applicable taxes. As of March 31, 2022, 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

3 Months Ended

Mar. 31, 2022

Portfolio Loans

Portfolio loans

Note 4: Portfolio Loans

Loan Categories

The Company’s lending can be summarized into five primary categories: commercial loans, commercial real estate loans, real estate construction loans, retail real estate loans, and retail other loans. Distributions of loan portfolio by loan category were as follows (dollars in thousands):


	As of
	March 31,		December 31,
	2022		2021
Portfolio loans
Commercial	$	1,906,595	$	1,943,886
Commercial real estate		3,134,794		3,119,807
Real estate construction		445,428		385,996
Retail real estate		1,544,365		1,512,976
Retail other		241,691		226,333
Total portfolio loans		7,272,873		7,188,998
ACL		(88,213)		(87,887)
Portfolio loans, net	$	7,184,660	$	7,101,111

Net deferred loan origination costs included in the balances above were $10.6 million as of March 31, 2022, compared to $9.0 million as of December 31, 2021. Net accretable purchase accounting adjustments included in the balances above reduced loans by $7.7 million as of March 31, 2022, and $8.8 million as of December 31, 2021. Commercial balances include loans originated under the PPP with an amortized cost of $31.8 million as of March 31, 2022, and $75.0 million as of December 31, 2021.

There were no retail real estate loans purchased during the three months ended March 31, 2022 or 2021.

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.

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


	As of March 31, 2022
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual		Total
Portfolio loans
Commercial	$	1,725,369	$	73,471	$	74,967	$	26,028	$	6,760	$	1,906,595
Commercial real estate		2,769,016		262,411		53,195		47,567		2,605		3,134,794
Real estate construction		428,467		14,557		4		2,400		—		445,428
Retail real estate		1,523,791		11,352		2,062		4,071		3,089		1,544,365
Retail other		241,657		—		—		—		34		241,691
Total portfolio loans	$	6,688,300	$	361,791	$	130,228	$	80,066	$	12,488	$	7,272,873


	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

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


	As of March 31, 2022
	Term Loans Amortized Cost Basis by Origination Year													Revolving
Risk Grade Ratings	2022		2021		2020		2019		2018			Prior		Loans		Total
Commercial
Pass	$	220,582	$	386,332	$	187,571	$	82,617	$	80,606	$	187,281	$	580,380	$	1,725,369
Watch		1,641		13,751		4,536		9,391		1,412		3,315		39,425		73,471
Special Mention		2,668		4,799		191		6,125		3,753		17,998		39,433		74,967
Substandard		1,736		1,586		3,222		3,248		1,561		6,550		8,125		26,028
Substandard non-accrual		—		3,946		345		141		—		328		2,000		6,760
Total commercial		226,627		410,414		195,865		101,522		87,332		215,472		669,363		1,906,595

Commercial real estate
Pass		287,524		961,636		608,378		349,992		216,247		330,243		14,996		2,769,016
Watch		22,162		33,489		23,614		110,412		22,540		48,163		2,031		262,411
Special Mention		5,765		5,971		12,850		2,321		7,375		18,814		99		53,195
Substandard		1,232		20,611		3,034		1,028		10,429		11,233		—		47,567
Substandard non-accrual		—		111		172		359		1,946		17		—		2,605
Total commercial real estate		316,683		1,021,818		648,048		464,112		258,537		408,470		17,126		3,134,794

Real estate construction
Pass		65,127		184,303		127,358		31,709		2,575		2,004		15,391		428,467
Watch		3,816		5,640		3,518		52		—		1,531		—		14,557
Special Mention		—		—		—		4		—		—		—		4
Substandard		—		—		2,400		—		—		—		—		2,400
Total real estate construction		68,943		189,943		133,276		31,765		2,575		3,535		15,391		445,428

Retail real estate
Pass		114,026		490,691		205,598		99,087		74,589		332,410		207,390		1,523,791
Watch		1,629		1,208		1,830		1,628		1,269		172		3,616		11,352
Special Mention		145		1,892		25		—		—		—		—		2,062
Substandard		—		1,095		224		93		70		2,261		328		4,071
Substandard non-accrual		—		242		118		—		236		1,935		558		3,089
Total retail real estate		115,800		495,128		207,795		100,808		76,164		336,778		211,892		1,544,365

Retail other
Pass		36,922		54,381		19,799		22,563		12,982		5,594		89,416		241,657
Substandard non-accrual		—		34		—		—		—		—		—		34
Total retail other		36,922		54,415		19,799		22,563		12,982		5,594		89,416		241,691

Total portfolio loans	$	764,975	$	2,171,718	$	1,204,783	$	720,770	$	437,590	$	969,849	$	1,003,188	$	7,272,873


	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
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
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

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 March 31, 2022
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Past due and non-accrual loans
Commercial	$	358	$	93	$	—	$	6,760
Commercial real estate		—		—		—		2,605
Real estate construction		—		48		—		—
Retail real estate		2,732		555		173		3,089
Retail other		123		7		24		34
Total past due and non-accrual loans	$	3,213	$	703	$	197	$	12,488


	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

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 $0.2 million for the three months ended March 31, 2022. 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 $0.5 million for the three months ended March 31, 2021. The amount of interest collected on those loans and recognized on a cash basis that was included in interest income was $0.4 million for the three months ended March 31, 2022, and was insignificant for the three months ended March 31, 2021.

Troubled Debt Restructurings

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


	As of
	March 31,		December 31,
	2022		2021
TDRs
In compliance with modified terms	$	1,771	$	1,801
Non-performing TDRs		529		551
Total TDRs	$	2,300	$	2,352

No loans were newly designated as TDRs during the three months ended March 31, 2022. Loans that were newly designated as TDRs during the three months ended March 31, 2021, are summarized as follows (dollars in thousands):


	Three Months Ended March 31, 2021
			Recorded Investment
	Number of		Rate
	Contracts		Modification
Newly designated TDRs
Commercial		1	$	483

There were no TDRs entered into during the 12 months ended March 31, 2022, or 2021, that had subsequent defaults during the three months ended March 31, 2022, or 2021. A default occurs when a loan is 90 days or more past due or transferred to non-accrual.

Gross interest income that would have been recorded in the three months ended March 31, 2022 and 2021, if TDRs had performed in accordance with their original terms compared with their modified terms, was insignificant.

As of March 31, 2022, the Company had $0.5 million of residential real estate in the process of foreclosure. The Company follows Federal Housing Finance Agency guidelines on single-family foreclosures and real estate owned evictions on portfolio loans.

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 to update 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, which suspended GAAP requirements related to TDR classification (dollars in thousands):


	As of March 31, 2022				As of December 31, 2021
	Number of		Recorded		Number of		Recorded
	Contracts		Investment		Contracts		Investment
COVID-19 loan modifications
Commercial loans:
Interest-only deferrals		15	$	37,374		32	$	128,730
Retail loans:
Mortgage and personal loan deferrals		—		—		2		137
Total COVID-19 loans modifications		15	$	37,374		34	$	128,867

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 customer outstanding contractual principal balances 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 Three Months Ended March 31, 2022
	Unpaid		Recorded Investment								Average
	Principal		With No		With				Related		Recorded
	Balance		Allowance		Allowance		Total		Allowance		Investment
Loans evaluated individually
Commercial	$	10,040	$	490	$	6,291	$	6,781	$	3,345	$	8,473
Commercial real estate		3,093		2,386		—		2,386		—		5,654
Real estate construction		266		266		—		266		—		277
Retail real estate		2,480		2,311		25		2,336		25		3,458
Total loans evaluated individually	$	15,879	$	5,453	$	6,316	$	11,769	$	3,370	$	17,862


	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
Total loans evaluated individually	$	19,489	$	8,865	$	6,515	$	15,380	$	3,589	$	19,556

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 $4.8 million and $7.9 million of collateral dependent loans secured by real estate or business assets as of March 31, 2022, and December 31, 2021, 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 March 31, 2022, the Company expects continued economic uncertainty in the markets in which it operates, and around levels of delinquencies, over the next 12 months. 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):


	Three Months Ended March 31, 2022
			Commercial		Real Estate		Retail
	Commercial		Real Estate		Construction		Real Estate		Retail Other		Total
ACL beginning balance	$	23,855	$	38,249	$	5,102	$	17,589	$	3,092	$	87,887
Provision for credit losses		251		(1,218)		510		(170)		374		(253)
Charged-off		—		—		—		(16)		(109)		(125)
Recoveries		67		308		93		152		84		704
ACL ending balance	$	24,173	$	37,339	$	5,705	$	17,555	$	3,441	$	88,213


	Three Months Ended March 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
Provision for credit losses		(665)		(2,695)		(1,250)		(2,276)		90		(6,796)
Charged-off		(262)		(303)		(209)		(3)		(187)		(964)
Recoveries		86		74		145		265		85		655
ACL ending balance	$	23,025	$	43,306	$	6,879	$	19,978	$	755	$	93,943

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


	As of March 31, 2022
	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	$	1,899,814	$	6,781	$	1,906,595	$	20,828	$	3,345	$	24,173
Commercial real estate		3,132,408		2,386		3,134,794		37,339		—		37,339
Real estate construction		445,162		266		445,428		5,705		—		5,705
Retail real estate		1,542,029		2,336		1,544,365		17,530		25		17,555
Retail other		241,691		—		241,691		3,441		—		3,441
Portfolio loans and related ACL	$	7,261,104	$	11,769	$	7,272,873	$	84,843	$	3,370	$	88,213


	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
Portfolio loans and related ACL	$	7,173,618	$	15,380	$	7,188,998	$	84,298	$	3,589	$	87,887

Deposits

3 Months Ended

Mar. 31, 2022

Deposits

Deposits

Note 5: Deposits

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


	As of
	March 31,		December 31,
	2022		2021
Deposits
Demand deposits, noninterest-bearing	$	3,568,651	$	3,670,267
Interest-bearing transaction deposits		2,647,305		2,720,417
Saving deposits and money market deposits		3,485,050		3,442,244
Time deposits		890,830		935,649
Total deposits	$	10,591,836	$	10,768,577

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


	As of
	March 31,		December 31,
	2022		2021
Brokered savings deposits and money market deposits	$	2,002	$	2,248
Brokered time deposits		268		266
Aggregate amount of time deposits with a minimum denomination of $100,000		437,048		454,649
Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000		139,245		137,449

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


	As of
	March 31, 2022
Time deposits by schedule of maturities
April 1, 2022 – March 31, 2023	$	640,465
April 1, 2023 – March 31, 2024		169,339
April 1, 2024 – March 31, 2025		49,456
April 1, 2025 – March 31, 2026		16,970
April 1, 2026 – March 31, 2027		13,920
Thereafter		680
Time deposits	$	890,830

Borrowings

3 Months Ended

Mar. 31, 2022

Borrowings

Borrowings

Note 6: 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
	March 31,			December 31,
	2022			2021
Securities sold under agreements to repurchase	$	255,668		$	270,139
Weighted average rate for securities sold under agreements to repurchase		0.15	%		0.08	%

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 had an annual interest rate of 1.75% plus the one-month LIBOR rate. On April 30, 2022, the agreement was amended, effecting an extension of the termination date for the revolving line of credit to April 30, 2023, and providing for the transition from a LIBOR-indexed interest rate to a SOFR-indexed interest rate. Under the terms of the amendment, the loans now have an annual interest rate of 1.80% plus the one-month forward-looking term rate based on SOFR.

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 in the second quarter of 2021, and for general corporate purposes. As of March 31, 2022, there was no balance outstanding on the revolving credit facility and a total of $51.0 million outstanding on the term loan, of which $12.0 million was short-term and $39.0 million was long-term. The revolving credit facility incurs a non-usage fee based on any undrawn amounts. Quarterly payments on the term loan reduce the outstanding principal balance by $3.0 million each quarter.

Short-term Borrowings

First Busey’s short-term borrowings include loans maturing within one year of the loan origination date, as well as the current portion of long-term debt that is due within 12 months. Short-term borrowings are summarized as follows (dollars in thousands):


	As of
	March 31,		December 31,
	2022		2021
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	$	5,683	$	5,678
Term Loan, current portion due within 12 months		12,000		12,000
Total short-term debt	$	17,683	$	17,678

Federal funds purchased are short-term borrowings that generally mature between one and 90 days. The Company had no federal funds purchased as of March 31, 2022 or December 31, 2021.

Long-term Debt

First Busey’s long-term debt consists of loans maturing more than one year from the loan origination date, excluding the current portion that is due within 12 months. Long-term debt is summarized as follows (dollars in thousands):


	As of
	March 31,		December 31,
	2022		2021
Long-term debt
Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock	$	3,881	$	4,056
Term Loan		39,000		42,000
Total long-term debt	$	42,881	$	46,056

As of March 31, 2022, and December 31, 2021, 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 three-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
	March 31,		December 31,
	2022		2021
Unamortized debt issuance costs
Senior notes issued in 2017	$	22	$	56
Subordinated notes issued in 2017		254		549
Subordinated notes issued in 2020		1,566		1,678
Total unamortized debt issuance costs	$	1,842	$	2,283

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Regulatory Capital

3 Months Ended

Mar. 31, 2022

Regulatory Capital

Regulatory Capital

Note 7: Regulatory Capital

The Company and its subsidiary 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 March 31, 2022, and December 31, 2021, all capital ratios of the Company and its subsidiary bank exceeded well capitalized levels under the applicable regulatory capital adequacy guidelines. Management believes that no events or changes have occurred subsequent to March 31, 2022, 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 was 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, has been 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 began to 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.

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


	As of March 31, 2022
									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	$	1,011,861	11.89	%	$	382,962	4.50	%	$	553,167	6.50	%
Busey Bank	$	1,247,370	14.70	%	$	381,747	4.50	%	$	551,413	6.50	%

Tier 1 Capital to Risk Weighted Assets
Consolidated	$	1,085,861	12.76	%	$	510,615	6.00	%	$	680,821	8.00	%
Busey Bank	$	1,247,370	14.70	%	$	508,996	6.00	%	$	678,662	8.00	%

Total Capital to Risk Weighted Assets
Consolidated	$	1,344,541	15.80	%	$	680,821	8.00	%	$	851,026	10.00	%
Busey Bank	$	1,321,050	15.57	%	$	678,662	8.00	%	$	848,327	10.00	%

Leverage Ratio of Tier 1 Capital to Average Assets
Consolidated	$	1,085,861	8.78	%	$	494,948	4.00	%		N/A	N/A
Busey Bank	$	1,247,370	10.11	%	$	493,615	4.00	%	$	617,019	5.00	%


	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	%

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 Capital 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%.

- 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

Stock-based Compensation

3 Months Ended

Mar. 31, 2022

Stock-based Compensation

Stock-based Compensation

Note 8: 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 for the three months ended March 31, 2022, follows:


					Weighted-
			Weighted-		Average
			Average		Remaining
			Exercise		Contractual
	Shares		Price		Life
Outstanding at January 1, 2022		31,386	$	23.53		4.88
Exercised		—		—
Forfeited		—		—
Expired		(220)		23.53
Outstanding at March 31, 2022		31,166	$	23.53		4.63

Exercisable at March 31, 2022		31,166	$	23.53		4.63

2020 Equity Plan

Under the terms of the 2020 Equity Plan, the Company has granted RSU, PSU, and DSU awards. Upon vesting/delivery, shares are expected (though not required) to be issued from treasury.

RSU 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.

PSU Awards

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 the market or other performance goals, subject to accelerated service-based vesting conditions upon eligible retirement from the Company.

DSU Awards

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.

Award Grants and Activity

A summary of changes in the Company’s RSU, PSU, and DSU awards for the three months ended March 31, 2022, is as follows:


	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 January 1, 2022		1,147,927	$	23.97		113,915	$	22.86		34,135	$	24.59
Granted		156,483		25.79		195,240		25.79		32,658		25.79
Dividend equivalents earned		9,671		27.30		—		—		1,107		27.30
Vested		(13,594)		29.73		—		—		(32,801)		24.63
Forfeited		(10,298)		24.05		(585)		23.48		—		—
Nonvested at March 31, 2022		1,290,189	$	24.16		308,570	$	24.71		35,099	$	25.75

Vested and outstanding at March 31, 2022										130,098	$	22.68

(1)

Shares for PSU awards represent target shares at grant date.

On March 23, 2022, under the terms of the 2020 Equity Plan, the Company granted 156,483 RSUs to members of management. The grant date fair value of the award totaled $4.0 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.

On March 23, 2022, the Company granted a target of 78,233 market-based PSUs with a maximum award of 125,173 units. The actual number of units issued at the vesting date could range from 0% to 160% of the initial grant, depending on attaining a market-based total shareholder return performance goal. The grant date fair value of the award is estimated to be $2.0 million and will be recognized in compensation expense over the performance period ending December 31, 2024. The Company expects to finalize the grant date fair value of these awards in the second quarter of 2022.

On March 23, 2022, the Company granted a target of 78,233 performance-based PSUs with a maximum award of 125,173 units. The actual number of units issued at the vesting date could range from 0% to 160% of the initial grant, depending on attaining a core return on average tangible common equity performance goal. The grant date fair value of the award is $2.0 million and will be recognized in compensation expense over the performance period ending December 31, 2024, subject to achievement of the performance goal.

Further, on March 23, 2022, the Company granted a target of 38,774 PSUs with a maximum award of 77,548 units. The actual number of units issued at the vesting date could range from 0% to 200% of the initial grant, depending on attaining a performance goal based upon the compounded annual revenue growth rate of the FirsTech operating segment. The grant date fair value of the award is $1.0 million and will be recognized in compensation expense over the performance period ending December 31, 2024, subject to achievement of the performance goal.

On March 23, 2022, the Company granted 32,658 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.

2021 Employee Stock Purchase Plan

The First Busey Corporation 2021 ESPP was approved at the Company’s 2021 Annual Meeting of Stockholders and details can be found within First Busey’s Definitive Proxy Statement filed with the SEC on April 8, 2021. The plan initially reserved for issuance and purchase an aggregate of 600,000 shares of the Company’s common stock. 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. The first offering under this plan began on July 1, 2021.

Stock-based Compensation Expense

The Company did not record any stock option compensation expense for the three months ended March 31, 2022, or 2021. As of March 31, 2022, the Company did not have any unrecognized stock option expense.

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


	Three Months Ended March 31,
	2022		2021
Stock-based compensation expense
RSU awards	$	1,176	$	1,230
PSU awards		412		60
DSU awards		226		158
2021 ESPP		95		—
Total stock-based compensation expense	$	1,909	$	1,448

Unamortized compensation expense related to nonvested RSU, PSU, and DSU awards is summarized in the table below (dollars in thousands):


	As of
	March 31,			December 31,
	2022			2021
Unamortized stock-based compensation
RSU awards	$	12,838		$	10,204
PSU awards		5,544			1,547
DSU awards		825			209
Total unamortized stock-based compensation	$	19,207		$	11,960

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

Shares Available for Issuance Under Stock-based Compensation Plans

Shares remaining available for issuance pursuant to authorized stock-based compensation plans as of March 31, 2022, were as follows:


	Shares Remaining
	Available for Issuance
	Pursuant to the Plan
2020 Equity Plan		643,569
2021 Employee Stock Purchase Plan		544,470

Outstanding Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2022

Outstanding Commitments and Contingent Liabilities

Outstanding Commitments and Contingent Liabilities

Note 9: 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 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
	March 31,		December 31,
	2022		2021
Financial instruments whose contract amounts represent credit risk
Commitments to extend credit	$	1,969,861	$	1,983,655
Standby letters of credit		29,294		32,552
Total commitments	$	1,999,155	$	2,016,207

Derivative Financial Instruments

3 Months Ended

Mar. 31, 2022

Derivative Financial Instruments

Derivative Financial Instruments

Note 10: 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. See “Note 11: Fair Value Measurements” for further discussion of the fair value measurement of such derivatives.

The Company was holding collateral of $10.9 million to secure its obligation under derivative contracts as of March 31, 2022. The Company pledged $26.5 million and $27.3 million in cash to secure its obligation under derivative contracts as of March 31, 2022, and December 31, 2021, respectively.

Derivative Instruments 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 OCI 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 Designated as Cash Flow Hedges

Interest rate swaps with notional amounts totaling $350.0 million as of March 31, 2022, and $50.0 million as of December 31, 2021, were designated as cash flow hedges. The Company entered into one $50.0 million interest rate swap to hedge the risks 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 (Debt Swap). In addition, the Company entered into one $300.0 million interest rate swap to reduce our balance sheet asset sensitive profile and to lock in earnings in the event future interest rate hikes do not materialize (Loan Swap). These hedges were determined to be highly effective during the period, and the Company expects its hedges to remain highly effective during the remaining terms of the swaps. Changes in fair value were recorded net of tax in OCI.

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


		As of
		March 31,			December 31,
	Location	2022			2021
Debt Swap
Notional amount		$	50,000		$	50,000
Weighted average fixed pay rates			1.79	%		1.79	%
Weighted average variable 3-month LIBOR receive rates			0.83	%		0.20	%
Weighted average maturity, in years			2.46	yrs		2.71	yrs

Loan Swap
Notional amount		$	300,000		$	—
Weighted average fixed receive rates			4.81	%		—	%
Weighted average variable Prime pay rates			3.40	%		—	%
Weighted average maturity, in years			6.85	yrs		—	yrs

Gross aggregate fair value of the swaps
Gross aggregate fair value of swap assets	Other assets	$	835		$	—
Gross aggregate fair value of swap liabilities	Other liabilities	$	8,772		$	958

Balances carried in AOCI
Unrealized gains (losses) on cash flow hedges, net of tax	AOCI	$	(5,887)		$	(685)

The Company expects $0.4 million of unrealized gains to be reclassified from OCI to interest income and $0.1 million of unrealized losses to be reclassed from OCI to interest expense during the next three months. Amounts actually recognized could differ from these expectations due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to March 31, 2022.

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

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


	Three Months Ended March 31,
	2022		2021
Unrealized gains (losses) on cash flow hedges
Gain (loss) recognized in OCI, net of tax	$	(4,845)	$	410
(Gain) loss reclassified from OCI to interest expense, net of tax		(357)		199
Net change in unrealized gains (losses) on cash flow hedges	$	(5,202)	$	609

Derivative Instruments Not Designated as Hedges

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 equal and offsetting derivative agreements with a third-party dealer. These contracts support variable rate, commercial loan relationships totaling $492.6 million and $491.4 million as of March 31, 2022, and December 31, 2021, 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 recorded in the unaudited Consolidated Balance Sheets are summarized as follows (dollars in thousands):


	As of March 31, 2022
	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	$	119,622	$	3,467	$	372,968	$	13,080
Interest rate swaps – pay fixed, receive floating		372,968		13,080		119,622		3,467
Total derivatives not designated as hedging instruments	$	492,590	$	16,547	$	492,590	$	16,547


	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

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


		Three Months Ended March 31,
	Location	2022		2021
Interest rate swaps
Pay floating, receive fixed	Noninterest expense	$	(3,550)	$	(10,595)
Pay fixed, receive floating	Noninterest expense		3,550		10,595
Net change in fair value of interest rate swaps		$	—	$	—

Risk Participation Agreement

To manage the credit risk exposure related to a customer-facing swap, the Company entered into one risk participation agreement in conjunction with a loan participation with another financial institution. The notional amount of the risk participation agreement was $4.0 million, and the fair value amount was insignificant, as of both March 31, 2022, and 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 unaudited 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 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 unaudited 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 unaudited Consolidated Balance Sheets are summarized as follows (dollars in thousands):


		As of March 31, 2022				As of December 31, 2021
		Notional		Fair		Notional		Fair
	Location	Amount		Value		Amount		Value
Derivatives with positive fair value
Interest rate lock commitments	Other assets	$	3,724	$	38	$	19,384	$	206
Forward sales commitments	Other assets		8,947		148		1,884		10
Mortgage banking derivatives recorded in other assets		$	12,671	$	186	$	21,268	$	216

Derivatives with negative fair value
Interest rate lock commitments	Other liabilities	$	2,866	$	23	$	499	$	6
Forward sales commitments	Other liabilities		4,429		42		41,002		439
Mortgage banking derivatives recorded in other liabilities		$	7,295	$	65	$	41,501	$	445

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


		Three Months Ended March 31,
	Location	2022		2021
Net gains (losses)
Interest rate lock commitments	Mortgage revenue	$	15	$	472
Forward sales commitments	Mortgage revenue		106		(820)
Net gains (losses)		$	121	$	(348)

Fair Value Measurements

3 Months Ended

Mar. 31, 2022

Fair Value Measurements

Fair Value Measurements

Note 11: 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.

Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis

Debt Securities Available for Sale

Debt securities classified as available for sale are reported at fair value utilizing Level 2 measurements. 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 measurements. 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 that were reported at fair value utilized Level 2 measurements at December 31, 2021. The fair values of the mortgage loans held for sale were measured using observable quoted market or contract prices or market price equivalents and were classified as Level 2.

Derivative Assets and Derivative Liabilities

Derivative assets and derivative liabilities are reported at fair value utilizing Level 2 or Level 3 measurements. As applicable, fair values of derivative assets and liabilities are determined based on prices that are obtained from a third-party which uses observable market inputs and are classified as Level 2. Due to the significance of unobservable inputs, derivative assets related to our risk participation agreement are classified as Level 3.

The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2022, and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):


	As of March 31, 2022
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	157,508	$	—	$	157,508
Obligations of U.S. government corporations and agencies		—		34,301		—		34,301
Obligations of states and political subdivisions		—		299,592		—		299,592
Asset-backed securities		—		488,604		—		488,604
Commercial mortgage-backed securities		—		107,502		—		107,502
Residential mortgage-backed securities		—		1,575,376		—		1,575,376
Corporate debt securities		—		283,172		—		283,172
Equity securities		5,948		13,572		—		19,520
Derivative assets		—		17,568		5		17,573
Derivative liabilities		—		25,384		—		25,384


	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

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Loans Evaluated Individually

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).

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. Fair values were based upon discounted appraisals or real estate listing prices. 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 March 31, 2022
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	2,946	$	2,946
OREO with subsequent impairment		—		—		2,228		2,228
Bank property held for sale with impairment		—		—		9,551		9,551


	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

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
March 31, 2022:	Estimate		Techniques	Input	(Weighted Average)
Loans evaluated individually, net of related allowance	$	2,946	Appraisal of collateral	Appraisal adjustments	-50.0	%	to	-100.0	%	(-53.4)	%
OREO with subsequent impairment		2,228	Appraisal of collateral	Appraisal adjustments	-16.0	%	to	-100.0	%	(-24.4)	%
Bank property held for sale with impairment		9,551	Appraisal of collateral or real estate listing price	Appraisal adjustments	-0.7	%	to	-70.1	%	(-38.2)	%

December 31, 2021:
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)	%

Financial Assets and Financial Liabilities That Are Not Carried at Fair Value

Estimated fair values of financial instruments that are not carried at fair value in the Company’s unaudited 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 March 31, 2022				As of December 31, 2021
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets
Level 1 inputs:
Cash and cash equivalents	$	479,228	$	479,228	$	836,095	$	836,095
Level 2 inputs:
Debt securities held to maturity		976,081		942,846		—		—
Loans held for sale ⁽¹⁾		6,765		6,769		—		—
Accrued interest receivable		31,947		31,947		31,064		31,064
Level 3 inputs:
Portfolio loans, net		7,184,660		7,195,985		7,101,111		7,161,466
Mortgage servicing rights		8,085		15,499		8,608		12,133
Other servicing rights		1,712		2,093		1,830		2,268

Financial liabilities
Level 2 inputs:
Time deposits	$	890,830	$	882,358	$	935,649	$	935,778
Securities sold under agreements to repurchase		255,668		255,668		270,139		270,139
Short-term borrowings		17,683		17,745		17,678		17,673
Long-term debt		42,881		43,007		46,056		46,164
Junior subordinated debt owed to unconsolidated trusts		71,678		62,840		71,635		63,586
Accrued interest payable		5,116		5,116		2,728		2,728
Level 3 inputs:
Senior notes, net of unamortized issuance costs		39,978		40,000		39,944		40,400
Subordinated notes, net of unamortized issuance costs		182,910		188,437		182,773		195,600

(1)

Effective January 1, 2022, recorded at LOCOM.

- 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

3 Months Ended

Mar. 31, 2022

Earnings Per Common Share

Earnings Per Common Share

Note 12: 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 DSUs 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):


	Three Months Ended March 31,
	2022		2021
Net income	$	28,439	$	37,816
Shares:
Weighted average common shares outstanding		55,427,696		54,471,860
Dilutive effect of outstanding options, warrants, and stock units as determined by the application of the treasury stock method		755,748		563,946
Dilutive effect of ESPP shares		11,502		—
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation		56,194,946		55,035,806

Basic earnings per common share	$	0.51	$	0.69

Diluted earnings per common share	$	0.51	$	0.69

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:


	Three Months Ended March 31,
	2022		2021
Anti-dilutive common stock equivalents
RSU and DSU awards		—		243,396
PSU awards		241,452		114,883
Total anti-dilutive common stock equivalents		241,452		358,279

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2022

Accumulated Other Comprehensive Income (Loss).

Accumulated Other Comprehensive Income (Loss).

Note 13: Accumulated Other Comprehensive Income (Loss)

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


	Three Months Ended March 31,
	2022						2021
		Before Tax		Tax Effect		Net of Tax		Before Tax		Tax Effect		Net of Tax
Unrealized gains (losses) on debt securities available for sale
Balance at beginning of period	$	(32,272)	$	9,199	$	(23,073)	$	49,644	$	(14,151)	$	35,493
Unrealized holding gains (losses) on debt securities available for sale, net		(104,282)		29,726		(74,556)		(42,072)		11,993		(30,079)
Unrealized losses on debt securities transferred from held to maturity to available for sale		(48,456)		13,812		(34,644)		—		—		—
Amounts reclassified from AOCI, net		(106)		30		(76)		(25)		7		(18)
Amortization of unrealized losses on securities transferred to held to maturity		883		(252)		631		—		—		—
Balance at end of period	$	(184,233)	$	52,515	$	(131,718)	$	7,547	$	(2,151)	$	5,396

Unrealized gains (losses) on cash flow hedges
Balance at beginning of period	$	(958)	$	273	$	(685)	$	(3,055)	$	871	$	(2,184)
Unrealized holding gains (losses) on cash flow hedges, net		(6,776)		1,931		(4,845)		574		(164)		410
Amounts reclassified from AOCI, net		(500)		143		(357)		278		(79)		199
Balance at end of period	$	(8,234)	$	2,347	$	(5,887)	$	(2,203)	$	628	$	(1,575)

Total AOCI	$	(192,467)	$	54,862	$	(137,605)	$	5,344	$	(1,523)	$	3,821

Operating Segments and Related Information

3 Months Ended

Mar. 31, 2022

Operating Segments and Related Information

Operating Segments and Related Information

Note 14: Operating Segments and Related Information

The Company has three reportable operating segments: Banking, FirsTech, and Wealth Management. The Company’s three 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, mobile, and voice-recognition 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” in the Company’s 2021 Annual Report. 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				As of
	March 31,		December 31,		March 31,		December 31,
	2022		2021		2022		2021
Operating segment
Banking	$	294,773	$	294,773	$	12,450,999	$	12,746,833
FirsTech		8,992		8,992		46,900		47,481
Wealth Management		14,108		14,108		71,364		65,587
Other		—		—		(1,754)		(212)
Consolidated total	$	317,873	$	317,873	$	12,567,509	$	12,859,689


	Three Months Ended March 31,
	2022		2021
Net interest income
Banking	$	73,832	$	68,455
FirsTech		18		20
Other		(3,794)		(3,582)
Total net interest income	$	70,056	$	64,893

Noninterest income
Banking	$	15,286	$	12,884
FirsTech		5,419		4,861
Wealth Management		15,776		12,587
Other		(709)		1,113
Total noninterest income	$	35,772	$	31,445

Noninterest expense
Banking	$	55,567	$	42,091
FirsTech		4,683		4,290
Wealth Management		8,265		6,565
Other		1,861		1,553
Total noninterest expense	$	70,376	$	54,499

Income before income taxes
Banking	$	33,804	$	46,044
FirsTech		754		591
Wealth Management		7,511		6,022
Other		(6,364)		(4,022)
Total income before income taxes	$	35,705	$	48,635

Net income
Banking	$	26,451	$	35,528
FirsTech		550		429
Wealth Management		5,840		4,682
Other		(4,402)		(2,823)
Total net income	$	28,439	$	37,816

- 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
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-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Leases

3 Months Ended

Mar. 31, 2022

Leases

Leases

Note 15: 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 unaudited Consolidated Balance Sheets for the periods presented (dollars in thousands):


	As of
	March 31,			December 31,
	2022			2021
Lease balances
Right of use assets	$	9,014		$	10,533
Lease liabilities		9,067			10,591

Supplemental information
Year through which lease terms extend		2031			2031
Weighted average remaining lease term (in years)		6.27			6.47
Weighted average discount rate		2.04	%		2.16	%

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


	Three Months Ended March 31,
	2022		2021
Lease costs
Operating lease costs	$	617	$	564
Variable lease costs		128		174
Short-term lease costs		4		18
Total lease cost⁽¹⁾	$	749	$	756

Cash flows related to leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments	$	631	$	546
Operating lease cash flows – Liability reduction		585		495
Right of use assets obtained during the period in exchange for operating lease liabilities		55		148

(1)

Lease costs are included in net occupancy and equipment expense in the unaudited Consolidated Statements of Income.

The Company was obligated under noncancelable operating leases for office space and other commitments, as follows (dollars in thousands):


	As of
	March 31, 2022
Rent commitments
Remainder of 2022	$	1,684
2023		1,889
2024		1,429
2025		1,194
2026		945
Thereafter		2,509
Total undiscounted cash flows		9,650
Less: Amounts representing interest		583
Present value of net future minimum lease payments	$	9,067

Busey as the Lessor

Busey occasionally leases parking lots and office space to outside parties. Further, in connection with the acquisition of CAC in the second quarter of 2021, the Company acquired office buildings in Glenview, IL and Northbrook, IL, along with operating leases for space within these buildings that is rented to third parties. Revenues recorded in connection with these leases and reported in other income on our unaudited Consolidated Statements of Income are summarized as follows (dollars in thousands):

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Mar. 31, 2022
Significant Accounting Policies
Nature of operations	Nature of Operations First Busey Corporation, a Nevada corporation organized in 1980, is a $12.6 billion financial holding company headquartered in Champaign, Illinois. Our common stock is traded on The Nasdaq Global Select Market under the symbol “BUSE.” The Company operates and reports its business in three segments: Banking, FirsTech, and Wealth Management. Banking The Banking operating segment provides a full range of banking services to individual and corporate customers through the Company’s wholly-owned bank subsidiary, Busey Bank, with 58 banking centers in Illinois; the St. Louis, Missouri metropolitan area; southwest Florida; and Indianapolis, Indiana. FirsTech The FirsTech operating segment provides comprehensive and innovative payment technology solutions that include, but are not limited to, text-based mobile bill pay; electronic payment concentration delivered to Automated Clearing House networks, money management, and credit card networks; walk-in payment processing for customers at retail pay agents; customer service payments made over a telephone; direct debit services; and lockbox remittance processing for customers to make payments by mail. FirsTech also provides additional tools to help clients with billing, reconciliation, bill reminders, and treasury services. Wealth Management 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.
Basis of Financial Statement Presentation	Basis of Financial Statement Presentation These unaudited consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements included in our 2021 Annual Report. These interim unaudited consolidated financial statements serve to update our 2021 Annual Report and may not include all information and notes necessary to constitute a complete set of financial statements. We prepared these unaudited consolidated financial statements in conformity with GAAP. We have eliminated intercompany accounts and transactions. We have also reclassified certain prior year amounts to conform to the current period presentation. These reclassifications did not have a material impact on our consolidated financial condition or results of operations. In our opinion, the unaudited consolidated financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period.
Use of Estimates	Use of Estimates In preparing the accompanying unaudited 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 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.
Impact of recently adopted accounting standards	Impact of Recently Adopted Accounting Standards 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 did not have a material impact on First Busey’s 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 Topic 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 was effective for First Busey beginning January 1, 2022, and was applied on a prospective basis. Adoption of this standard did not have a material impact on the Company’s financial position or results of operations. 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 was effective for First Busey beginning January 1, 2022, and was applied on a prospective basis. Adoption of this standard did not have a material impact on the Company’s financial position or results of operations. Recently Issued Accounting Standards ASU 2022-02 “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” eliminates the TDR accounting model for creditors that have already adopted CECL. In lieu of the TDR accounting model, loan refinancing and restructuring guidance in ASC Subtopic 310-20 “Investments—Debt Securities” will apply to all loan modifications, including those made for borrowers experiencing financial difficulty. This standard also enhances disclosure requirements related to certain loan modifications. Additionally, this standard introduces new requirements to disclose gross write-off information in the vintage disclosures of financing receivables by credit quality indicator and class of financing receivable by year of origination. This standard applies prospectively. For the transition method related to the recognition and measurement of TDRs, there is an option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. This standard is effective for First Busey beginning January 1, 2023. Early adoption is permitted. First Busey has not yet selected an adoption date and is currently evaluating the potential effect on the Company’s financial position and results of operations. ASU 2022-01 “Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method” replaces the current last-of-layer hedge accounting method with an expanded portfolio layer method that permits multiple hedged layers of a single closed portfolio. The scope of the portfolio layer method is also expanded to include non-prepayable financial assets. This update also provides additional guidance on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method, and specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. Amendments related to hedge basis adjustments which are included in this standard apply on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings on the initial application date. Amendments related to disclosure which are included in this standard may be applied on a prospective basis from the initial application date, or on a retrospective basis to each prior period presented after the date of adoption of the amendments in ASU 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” This standard is effective for First Busey beginning January 1, 2023, and may be early adopted. First Busey has not yet selected an adoption date and is currently evaluating the potential effect on the Company’s financial position and 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 ASC Topic 606 “Revenue from Contracts with Customers” for contract assets and contract liabilities acquired in a business combination. This update is effective for First Busey 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. First Busey has not yet selected an adoption date and is currently evaluating the potential effect on the Company’s financial position and results of operations.
COVID-19	COVID-19 Throughout the COVID-19 pandemic, First Busey operated as an essential community resource, providing approximately $1.1 billion in payroll assistance for small businesses and select nonprofits through low-interest, 100% government-guaranteed loans as part of the PPP. First Busey had $32.5 million in PPP loans outstanding, with an amortized cost of $31.8 million, as of March 31, 2022. In comparison, First Busey had $76.9 million in PPP loans outstanding, with an amortized cost of $75.0 million, as of December 31, 2021.
Subsequent Events	Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the unaudited consolidated financial statements included in this Quarterly Report were issued. There were no significant subsequent events for the quarter ended March 31, 2022, through the filing date of these unaudited consolidated financial statements.

Acquisitions (Tables)

3 Months Ended

Mar. 31, 2022

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)

3 Months Ended

Mar. 31, 2022

Debt Securities

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


	As of March 31, 2022
	Amortized		Unrealized				Fair
	Cost		Gross Gains		Gross Losses		Value
Debt securities available for sale
U.S. Treasury securities	$	160,990	$	16	$	(3,498)	$	157,508
Obligations of U.S. government corporations and agencies		34,069		243		(11)		34,301
Obligations of states and political subdivisions		308,514		1,378		(10,300)		299,592
Asset-backed securities		491,269		12		(2,677)		488,604
Commercial mortgage-backed securities		111,535		30		(4,063)		107,502
Residential mortgage-backed securities		1,678,891		629		(104,144)		1,575,376
Corporate debt securities		297,447		361		(14,636)		283,172
Total debt securities available for sale	$	3,082,715	$	2,669	$	(139,329)	$	2,946,055

Debt securities held to maturity
Commercial mortgage-backed securities	$	503,285	$	—	$	(15,521)	$	487,764
Residential mortgage-backed securities		472,796		—		(17,714)		455,082
Total debt securities held to maturity	$	976,081	$	—	$	(33,235)	$	942,846


	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

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


	As of March 31, 2022
	Amortized		Fair
	Cost		Value
Debt securities available for sale
Due in one year or less	$	174,918	$	174,182
Due after one year through five years		456,926		441,159
Due after five years through ten years		313,336		303,050
Due after ten years		2,137,535		2,027,664
Debt securities available for sale	$	3,082,715	$	2,946,055

Debt securities held to maturity
Due in one year or less	$	—	$	—
Due after one year through five years		48,405		47,185
Due after five years through ten years		66,693		64,572
Due after ten years		860,983		831,089
Debt securities held to maturity	$	976,081	$	942,846

Schedule of realized gains and losses related to sales of securities

Gains and losses on debt securities

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


	Three Months Ended March 31,
	2022		2021
Realized gains and losses on debt securities
Gross security gains	$	113	$	25
Gross security (losses)		(7)		—
Realized net gains (losses) on debt securities	$	106	$	25

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 March 31, 2022
	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	$	155,422	$	(3,498)	$	—	$	—	$	155,422	$	(3,498)
Obligations of U.S. government corporations and agencies		390		(11)		—		—		390		(11)
Obligations of states and political subdivisions		158,528		(9,277)		9,847		(1,023)		168,375		(10,300)
Asset-backed securities		470,964		(2,677)		—		—		470,964		(2,677)
Commercial mortgage-backed securities		87,087		(3,558)		7,203		(505)		94,290		(4,063)
Residential mortgage-backed securities		1,054,313		(65,980)		393,830		(38,164)		1,448,143		(104,144)
Corporate debt securities		216,592		(11,652)		39,598		(2,984)		256,190		(14,636)
Debt securities available for sale with gross unrealized losses	$	2,143,296	$	(96,653)	$	450,478	$	(42,676)	$	2,593,774	$	(139,329)

Debt securities held to maturity
Commercial mortgage-backed securities	$	281,462	$	(9,329)	$	206,302	$	(6,192)	$	487,764	$	(15,521)
Residential mortgage-backed securities		412,450		(15,940)		42,632		(1,774)		455,082		(17,714)
Debt securities held to maturity with gross unrealized losses	$	693,912	$	(25,269)	$	248,934	$	(7,966)	$	942,846	$	(33,235)


	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)
Debt securities available for sale with gross unrealized losses	$	2,676,734	$	(49,847)	$	106,443	$	(4,807)	$	2,783,177	$	(54,654)

Additional information about debt securities in an unrealized loss position is presented in the tables below (dollars in thousands):


	As of March 31, 2022
	Available for Sale			Held to Maturity			Total
Debt securities with gross unrealized losses, fair value	$	2,593,774		$	942,846		$	3,536,620
Gross unrealized losses on debt securities	$	139,329		$	33,235		$	172,564
Ratio of gross unrealized losses to debt securities with gross unrealized losses		5.4	%		3.5	%		4.9	%

Count of debt securities		1,185			55			1,240
Count of debt securities in an unrealized loss position		645			55			700


	As of December 31, 2021
	Available for Sale			Held to Maturity		Total
Debt securities with gross unrealized losses, fair value	$	2,783,177		$	—	$	2,783,177
Gross unrealized losses on debt securities	$	54,654		$	—	$	54,654
Ratio of gross unrealized losses to debt securities with gross unrealized losses		2.0	%		—		2.0	%

Count of debt securities		1,252			—		1,252
Count of debt securities in an unrealized loss position		373			—		373

Portfolio Loans (Tables)

3 Months Ended

Mar. 31, 2022

Portfolio Loans

Distribution of portfolio loans

Loan Categories


	As of
	March 31,		December 31,
	2022		2021
Portfolio loans
Commercial	$	1,906,595	$	1,943,886
Commercial real estate		3,134,794		3,119,807
Real estate construction		445,428		385,996
Retail real estate		1,544,365		1,512,976
Retail other		241,691		226,333
Total portfolio loans		7,272,873		7,188,998
ACL		(88,213)		(87,887)
Portfolio loans, net	$	7,184,660	$	7,101,111

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 March 31, 2022
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual		Total
Portfolio loans
Commercial	$	1,725,369	$	73,471	$	74,967	$	26,028	$	6,760	$	1,906,595
Commercial real estate		2,769,016		262,411		53,195		47,567		2,605		3,134,794
Real estate construction		428,467		14,557		4		2,400		—		445,428
Retail real estate		1,523,791		11,352		2,062		4,071		3,089		1,544,365
Retail other		241,657		—		—		—		34		241,691
Total portfolio loans	$	6,688,300	$	361,791	$	130,228	$	80,066	$	12,488	$	7,272,873


	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

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 March 31, 2022
	Term Loans Amortized Cost Basis by Origination Year													Revolving
Risk Grade Ratings	2022		2021		2020		2019		2018			Prior		Loans		Total
Commercial
Pass	$	220,582	$	386,332	$	187,571	$	82,617	$	80,606	$	187,281	$	580,380	$	1,725,369
Watch		1,641		13,751		4,536		9,391		1,412		3,315		39,425		73,471
Special Mention		2,668		4,799		191		6,125		3,753		17,998		39,433		74,967
Substandard		1,736		1,586		3,222		3,248		1,561		6,550		8,125		26,028
Substandard non-accrual		—		3,946		345		141		—		328		2,000		6,760
Total commercial		226,627		410,414		195,865		101,522		87,332		215,472		669,363		1,906,595

Commercial real estate
Pass		287,524		961,636		608,378		349,992		216,247		330,243		14,996		2,769,016
Watch		22,162		33,489		23,614		110,412		22,540		48,163		2,031		262,411
Special Mention		5,765		5,971		12,850		2,321		7,375		18,814		99		53,195
Substandard		1,232		20,611		3,034		1,028		10,429		11,233		—		47,567
Substandard non-accrual		—		111		172		359		1,946		17		—		2,605
Total commercial real estate		316,683		1,021,818		648,048		464,112		258,537		408,470		17,126		3,134,794

Real estate construction
Pass		65,127		184,303		127,358		31,709		2,575		2,004		15,391		428,467
Watch		3,816		5,640		3,518		52		—		1,531		—		14,557
Special Mention		—		—		—		4		—		—		—		4
Substandard		—		—		2,400		—		—		—		—		2,400
Total real estate construction		68,943		189,943		133,276		31,765		2,575		3,535		15,391		445,428

Retail real estate
Pass		114,026		490,691		205,598		99,087		74,589		332,410		207,390		1,523,791
Watch		1,629		1,208		1,830		1,628		1,269		172		3,616		11,352
Special Mention		145		1,892		25		—		—		—		—		2,062
Substandard		—		1,095		224		93		70		2,261		328		4,071
Substandard non-accrual		—		242		118		—		236		1,935		558		3,089
Total retail real estate		115,800		495,128		207,795		100,808		76,164		336,778		211,892		1,544,365

Retail other
Pass		36,922		54,381		19,799		22,563		12,982		5,594		89,416		241,657
Substandard non-accrual		—		34		—		—		—		—		—		34
Total retail other		36,922		54,415		19,799		22,563		12,982		5,594		89,416		241,691

Total portfolio loans	$	764,975	$	2,171,718	$	1,204,783	$	720,770	$	437,590	$	969,849	$	1,003,188	$	7,272,873


	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
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
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

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 March 31, 2022
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Past due and non-accrual loans
Commercial	$	358	$	93	$	—	$	6,760
Commercial real estate		—		—		—		2,605
Real estate construction		—		48		—		—
Retail real estate		2,732		555		173		3,089
Retail other		123		7		24		34
Total past due and non-accrual loans	$	3,213	$	703	$	197	$	12,488


	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

Summary of TDR loans

Troubled Debt Restructurings

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


	As of
	March 31,		December 31,
	2022		2021
TDRs
In compliance with modified terms	$	1,771	$	1,801
Non-performing TDRs		529		551
Total TDRs	$	2,300	$	2,352


	Three Months Ended March 31, 2021
			Recorded Investment
	Number of		Rate
	Contracts		Modification
Newly designated TDRs
Commercial		1	$	483

Schedule of details of impaired loans, segregated by category


	As of and for the Three Months Ended March 31, 2022
	Unpaid		Recorded Investment								Average
	Principal		With No		With				Related		Recorded
	Balance		Allowance		Allowance		Total		Allowance		Investment
Loans evaluated individually
Commercial	$	10,040	$	490	$	6,291	$	6,781	$	3,345	$	8,473
Commercial real estate		3,093		2,386		—		2,386		—		5,654
Real estate construction		266		266		—		266		—		277
Retail real estate		2,480		2,311		25		2,336		25		3,458
Total loans evaluated individually	$	15,879	$	5,453	$	6,316	$	11,769	$	3,370	$	17,862


	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
Total loans evaluated individually	$	19,489	$	8,865	$	6,515	$	15,380	$	3,589	$	19,556

Schedule of activity on the allowance for loan losses


	Three Months Ended March 31, 2022
			Commercial		Real Estate		Retail
	Commercial		Real Estate		Construction		Real Estate		Retail Other		Total
ACL beginning balance	$	23,855	$	38,249	$	5,102	$	17,589	$	3,092	$	87,887
Provision for credit losses		251		(1,218)		510		(170)		374		(253)
Charged-off		—		—		—		(16)		(109)		(125)
Recoveries		67		308		93		152		84		704
ACL ending balance	$	24,173	$	37,339	$	5,705	$	17,555	$	3,441	$	88,213


	Three Months Ended March 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
Provision for credit losses		(665)		(2,695)		(1,250)		(2,276)		90		(6,796)
Charged-off		(262)		(303)		(209)		(3)		(187)		(964)
Recoveries		86		74		145		265		85		655
ACL ending balance	$	23,025	$	43,306	$	6,879	$	19,978	$	755	$	93,943

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 March 31, 2022
	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	$	1,899,814	$	6,781	$	1,906,595	$	20,828	$	3,345	$	24,173
Commercial real estate		3,132,408		2,386		3,134,794		37,339		—		37,339
Real estate construction		445,162		266		445,428		5,705		—		5,705
Retail real estate		1,542,029		2,336		1,544,365		17,530		25		17,555
Retail other		241,691		—		241,691		3,441		—		3,441
Portfolio loans and related ACL	$	7,261,104	$	11,769	$	7,272,873	$	84,843	$	3,370	$	88,213


	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
Portfolio loans and related ACL	$	7,173,618	$	15,380	$	7,188,998	$	84,298	$	3,589	$	87,887

Deposits (Tables)

3 Months Ended

Mar. 31, 2022

Deposits

Schedule of composition of deposits

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


	As of
	March 31,		December 31,
	2022		2021
Deposits
Demand deposits, noninterest-bearing	$	3,568,651	$	3,670,267
Interest-bearing transaction deposits		2,647,305		2,720,417
Saving deposits and money market deposits		3,485,050		3,442,244
Time deposits		890,830		935,649
Total deposits	$	10,591,836	$	10,768,577

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


	As of
	March 31,		December 31,
	2022		2021
Brokered savings deposits and money market deposits	$	2,002	$	2,248
Brokered time deposits		268		266
Aggregate amount of time deposits with a minimum denomination of $100,000		437,048		454,649
Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000		139,245		137,449

Schedule of maturities of time deposits

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


	As of
	March 31, 2022
Time deposits by schedule of maturities
April 1, 2022 – March 31, 2023	$	640,465
April 1, 2023 – March 31, 2024		169,339
April 1, 2024 – March 31, 2025		49,456
April 1, 2025 – March 31, 2026		16,970
April 1, 2026 – March 31, 2027		13,920
Thereafter		680
Time deposits	$	890,830

Borrowings (Tables)

3 Months Ended

Mar. 31, 2022

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
	March 31,			December 31,
	2022			2021
Securities sold under agreements to repurchase	$	255,668		$	270,139
Weighted average rate for securities sold under agreements to repurchase		0.15	%		0.08	%

Summary of long-term debt

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


	As of
	March 31,		December 31,
	2022		2021
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	$	5,683	$	5,678
Term Loan, current portion due within 12 months		12,000		12,000
Total short-term debt	$	17,683	$	17,678

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


	As of
	March 31,		December 31,
	2022		2021
Long-term debt
Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock	$	3,881	$	4,056
Term Loan		39,000		42,000
Total long-term debt	$	42,881	$	46,056

Schedule of unamortized debt issuance cost

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


	As of
	March 31,		December 31,
	2022		2021
Unamortized debt issuance costs
Senior notes issued in 2017	$	22	$	56
Subordinated notes issued in 2017		254		549
Subordinated notes issued in 2020		1,566		1,678
Total unamortized debt issuance costs	$	1,842	$	2,283

- 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
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=124435984&loc=d3e28541-108399

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+ Details

Regulatory Capital (Tables)

3 Months Ended

Mar. 31, 2022

Regulatory Capital

Schedule of applicable holding company and bank regulatory capital requirements

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


	As of March 31, 2022
									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	$	1,011,861	11.89	%	$	382,962	4.50	%	$	553,167	6.50	%
Busey Bank	$	1,247,370	14.70	%	$	381,747	4.50	%	$	551,413	6.50	%

Tier 1 Capital to Risk Weighted Assets
Consolidated	$	1,085,861	12.76	%	$	510,615	6.00	%	$	680,821	8.00	%
Busey Bank	$	1,247,370	14.70	%	$	508,996	6.00	%	$	678,662	8.00	%

Total Capital to Risk Weighted Assets
Consolidated	$	1,344,541	15.80	%	$	680,821	8.00	%	$	851,026	10.00	%
Busey Bank	$	1,321,050	15.57	%	$	678,662	8.00	%	$	848,327	10.00	%

Leverage Ratio of Tier 1 Capital to Average Assets
Consolidated	$	1,085,861	8.78	%	$	494,948	4.00	%		N/A	N/A
Busey Bank	$	1,247,370	10.11	%	$	493,615	4.00	%	$	617,019	5.00	%


	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	%

Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2022

Stock-based Compensation

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

The Company has outstanding stock options assumed from acquisitions. A summary of the status of, and changes in, the Company's stock option awards for the three months ended March 31, 2022, follows:


					Weighted-
			Weighted-		Average
			Average		Remaining
			Exercise		Contractual
	Shares		Price		Life
Outstanding at January 1, 2022		31,386	$	23.53		4.88
Exercised		—		—
Forfeited		—		—
Expired		(220)		23.53
Outstanding at March 31, 2022		31,166	$	23.53		4.63

Exercisable at March 31, 2022		31,166	$	23.53		4.63

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

A summary of changes in the Company’s RSU, PSU, and DSU awards for the three months ended March 31, 2022, is as follows:


	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 January 1, 2022		1,147,927	$	23.97		113,915	$	22.86		34,135	$	24.59
Granted		156,483		25.79		195,240		25.79		32,658		25.79
Dividend equivalents earned		9,671		27.30		—		—		1,107		27.30
Vested		(13,594)		29.73		—		—		(32,801)		24.63
Forfeited		(10,298)		24.05		(585)		23.48		—		—
Nonvested at March 31, 2022		1,290,189	$	24.16		308,570	$	24.71		35,099	$	25.75

Vested and outstanding at March 31, 2022										130,098	$	22.68

(1)

Shares for PSU awards represent target shares at grant date.

Schedule of Stock-based compensation expense

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


	Three Months Ended March 31,
	2022		2021
Stock-based compensation expense
RSU awards	$	1,176	$	1,230
PSU awards		412		60
DSU awards		226		158
2021 ESPP		95		—
Total stock-based compensation expense	$	1,909	$	1,448

Schedule of Unamortized stock-based compensation expense

Unamortized compensation expense related to nonvested RSU, PSU, and DSU awards is summarized in the table below (dollars in thousands):


	As of
	March 31,			December 31,
	2022			2021
Unamortized stock-based compensation
RSU awards	$	12,838		$	10,204
PSU awards		5,544			1,547
DSU awards		825			209
Total unamortized stock-based compensation	$	19,207		$	11,960

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

Schedule of shares remaining available for issuance pursuant to authorized plans

Shares remaining available for issuance pursuant to authorized stock-based compensation plans as of March 31, 2022, were as follows:


	Shares Remaining
	Available for Issuance
	Pursuant to the Plan
2020 Equity Plan		643,569
2021 Employee Stock Purchase Plan		544,470

Outstanding Commitments and Contingent Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Outstanding Commitments and Contingent Liabilities

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


	As of
	March 31,		December 31,
	2022		2021
Financial instruments whose contract amounts represent credit risk
Commitments to extend credit	$	1,969,861	$	1,983,655
Standby letters of credit		29,294		32,552
Total commitments	$	1,999,155	$	2,016,207

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

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
		March 31,			December 31,
	Location	2022			2021
Debt Swap
Notional amount		$	50,000		$	50,000
Weighted average fixed pay rates			1.79	%		1.79	%
Weighted average variable 3-month LIBOR receive rates			0.83	%		0.20	%
Weighted average maturity, in years			2.46	yrs		2.71	yrs

Loan Swap
Notional amount		$	300,000		$	—
Weighted average fixed receive rates			4.81	%		—	%
Weighted average variable Prime pay rates			3.40	%		—	%
Weighted average maturity, in years			6.85	yrs		—	yrs

Gross aggregate fair value of the swaps
Gross aggregate fair value of swap assets	Other assets	$	835		$	—
Gross aggregate fair value of swap liabilities	Other liabilities	$	8,772		$	958

Balances carried in AOCI
Unrealized gains (losses) on cash flow hedges, net of tax	AOCI	$	(5,887)		$	(685)

Schedule of interest income (expense) recorded on swap transactions

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

Interest rate contract

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


	Three Months Ended March 31,
	2022		2021
Unrealized gains (losses) on cash flow hedges
Gain (loss) recognized in OCI, net of tax	$	(4,845)	$	410
(Gain) loss reclassified from OCI to interest expense, net of tax		(357)		199
Net change in unrealized gains (losses) on cash flow hedges	$	(5,202)	$	609

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 unaudited Consolidated Balance Sheets are summarized as follows (dollars in thousands):


		As of March 31, 2022				As of December 31, 2021
		Notional		Fair		Notional		Fair
	Location	Amount		Value		Amount		Value
Derivatives with positive fair value
Interest rate lock commitments	Other assets	$	3,724	$	38	$	19,384	$	206
Forward sales commitments	Other assets		8,947		148		1,884		10
Mortgage banking derivatives recorded in other assets		$	12,671	$	186	$	21,268	$	216

Derivatives with negative fair value
Interest rate lock commitments	Other liabilities	$	2,866	$	23	$	499	$	6
Forward sales commitments	Other liabilities		4,429		42		41,002		439
Mortgage banking derivatives recorded in other liabilities		$	7,295	$	65	$	41,501	$	445

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):


		Three Months Ended March 31,
	Location	2022		2021
Net gains (losses)
Interest rate lock commitments	Mortgage revenue	$	15	$	472
Forward sales commitments	Mortgage revenue		106		(820)
Net gains (losses)		$	121	$	(348)

Interest rate swap

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


	As of March 31, 2022
	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	$	119,622	$	3,467	$	372,968	$	13,080
Interest rate swaps – pay fixed, receive floating		372,968		13,080		119,622		3,467
Total derivatives not designated as hedging instruments	$	492,590	$	16,547	$	492,590	$	16,547


	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

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


		Three Months Ended March 31,
	Location	2022		2021
Interest rate swaps
Pay floating, receive fixed	Noninterest expense	$	(3,550)	$	(10,595)
Pay fixed, receive floating	Noninterest expense		3,550		10,595
Net change in fair value of interest rate swaps		$	—	$	—

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Measurements

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


	As of March 31, 2022
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	157,508	$	—	$	157,508
Obligations of U.S. government corporations and agencies		—		34,301		—		34,301
Obligations of states and political subdivisions		—		299,592		—		299,592
Asset-backed securities		—		488,604		—		488,604
Commercial mortgage-backed securities		—		107,502		—		107,502
Residential mortgage-backed securities		—		1,575,376		—		1,575,376
Corporate debt securities		—		283,172		—		283,172
Equity securities		5,948		13,572		—		19,520
Derivative assets		—		17,568		5		17,573
Derivative liabilities		—		25,384		—		25,384


	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

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


	As of March 31, 2022
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	2,946	$	2,946
OREO with subsequent impairment		—		—		2,228		2,228
Bank property held for sale with impairment		—		—		9,551		9,551


	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

Schedule of quantitative information about Level 3 fair value measurements


	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range
March 31, 2022:	Estimate		Techniques	Input	(Weighted Average)
Loans evaluated individually, net of related allowance	$	2,946	Appraisal of collateral	Appraisal adjustments	-50.0	%	to	-100.0	%	(-53.4)	%
OREO with subsequent impairment		2,228	Appraisal of collateral	Appraisal adjustments	-16.0	%	to	-100.0	%	(-24.4)	%
Bank property held for sale with impairment		9,551	Appraisal of collateral or real estate listing price	Appraisal adjustments	-0.7	%	to	-70.1	%	(-38.2)	%

December 31, 2021:
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)	%

Schedule of estimated fair values of financial instruments

Financial Assets and Financial Liabilities That Are Not Carried at Fair Value


	As of March 31, 2022				As of December 31, 2021
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets
Level 1 inputs:
Cash and cash equivalents	$	479,228	$	479,228	$	836,095	$	836,095
Level 2 inputs:
Debt securities held to maturity		976,081		942,846		—		—
Loans held for sale ⁽¹⁾		6,765		6,769		—		—
Accrued interest receivable		31,947		31,947		31,064		31,064
Level 3 inputs:
Portfolio loans, net		7,184,660		7,195,985		7,101,111		7,161,466
Mortgage servicing rights		8,085		15,499		8,608		12,133
Other servicing rights		1,712		2,093		1,830		2,268

Financial liabilities
Level 2 inputs:
Time deposits	$	890,830	$	882,358	$	935,649	$	935,778
Securities sold under agreements to repurchase		255,668		255,668		270,139		270,139
Short-term borrowings		17,683		17,745		17,678		17,673
Long-term debt		42,881		43,007		46,056		46,164
Junior subordinated debt owed to unconsolidated trusts		71,678		62,840		71,635		63,586
Accrued interest payable		5,116		5,116		2,728		2,728
Level 3 inputs:
Senior notes, net of unamortized issuance costs		39,978		40,000		39,944		40,400
Subordinated notes, net of unamortized issuance costs		182,910		188,437		182,773		195,600

Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2022

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):


	Three Months Ended March 31,
	2022		2021
Net income	$	28,439	$	37,816
Shares:
Weighted average common shares outstanding		55,427,696		54,471,860
Dilutive effect of outstanding options, warrants, and stock units as determined by the application of the treasury stock method		755,748		563,946
Dilutive effect of ESPP shares		11,502		—
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation		56,194,946		55,035,806

Basic earnings per common share	$	0.51	$	0.69

Diluted earnings per common share	$	0.51	$	0.69

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


	Three Months Ended March 31,
	2022		2021
Anti-dilutive common stock equivalents
RSU and DSU awards		—		243,396
PSU awards		241,452		114,883
Total anti-dilutive common stock equivalents		241,452		358,279

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2022

Accumulated Other Comprehensive Income (Loss).

Accumulated Other Comprehensive Income (Loss)

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


	Three Months Ended March 31,
	2022						2021
		Before Tax		Tax Effect		Net of Tax		Before Tax		Tax Effect		Net of Tax
Unrealized gains (losses) on debt securities available for sale
Balance at beginning of period	$	(32,272)	$	9,199	$	(23,073)	$	49,644	$	(14,151)	$	35,493
Unrealized holding gains (losses) on debt securities available for sale, net		(104,282)		29,726		(74,556)		(42,072)		11,993		(30,079)
Unrealized losses on debt securities transferred from held to maturity to available for sale		(48,456)		13,812		(34,644)		—		—		—
Amounts reclassified from AOCI, net		(106)		30		(76)		(25)		7		(18)
Amortization of unrealized losses on securities transferred to held to maturity		883		(252)		631		—		—		—
Balance at end of period	$	(184,233)	$	52,515	$	(131,718)	$	7,547	$	(2,151)	$	5,396

Unrealized gains (losses) on cash flow hedges
Balance at beginning of period	$	(958)	$	273	$	(685)	$	(3,055)	$	871	$	(2,184)
Unrealized holding gains (losses) on cash flow hedges, net		(6,776)		1,931		(4,845)		574		(164)		410
Amounts reclassified from AOCI, net		(500)		143		(357)		278		(79)		199
Balance at end of period	$	(8,234)	$	2,347	$	(5,887)	$	(2,203)	$	628	$	(1,575)

Total AOCI	$	(192,467)	$	54,862	$	(137,605)	$	5,344	$	(1,523)	$	3,821

Operating Segments and Related Information (Tables)

3 Months Ended

Mar. 31, 2022

Operating Segments and Related Information

Summary of information relating to operating segments


	Goodwill				Total Assets
	As of				As of
	March 31,		December 31,		March 31,		December 31,
	2022		2021		2022		2021
Operating segment
Banking	$	294,773	$	294,773	$	12,450,999	$	12,746,833
FirsTech		8,992		8,992		46,900		47,481
Wealth Management		14,108		14,108		71,364		65,587
Other		—		—		(1,754)		(212)
Consolidated total	$	317,873	$	317,873	$	12,567,509	$	12,859,689


	Three Months Ended March 31,
	2022		2021
Net interest income
Banking	$	73,832	$	68,455
FirsTech		18		20
Other		(3,794)		(3,582)
Total net interest income	$	70,056	$	64,893

Noninterest income
Banking	$	15,286	$	12,884
FirsTech		5,419		4,861
Wealth Management		15,776		12,587
Other		(709)		1,113
Total noninterest income	$	35,772	$	31,445

Noninterest expense
Banking	$	55,567	$	42,091
FirsTech		4,683		4,290
Wealth Management		8,265		6,565
Other		1,861		1,553
Total noninterest expense	$	70,376	$	54,499

Income before income taxes
Banking	$	33,804	$	46,044
FirsTech		754		591
Wealth Management		7,511		6,022
Other		(6,364)		(4,022)
Total income before income taxes	$	35,705	$	48,635

Net income
Banking	$	26,451	$	35,528
FirsTech		550		429
Wealth Management		5,840		4,682
Other		(4,402)		(2,823)
Total net income	$	28,439	$	37,816

Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases

Summary of lease-related balances

The following table summarizes lease-related information and balances the Company reported in its unaudited Consolidated Balance Sheets for the periods presented (dollars in thousands):


	As of
	March 31,			December 31,
	2022			2021
Lease balances
Right of use assets	$	9,014		$	10,533
Lease liabilities		9,067			10,591

Supplemental information
Year through which lease terms extend		2031			2031
Weighted average remaining lease term (in years)		6.27			6.47
Weighted average discount rate		2.04	%		2.16	%

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):


	Three Months Ended March 31,
	2022		2021
Lease costs
Operating lease costs	$	617	$	564
Variable lease costs		128		174
Short-term lease costs		4		18
Total lease cost⁽¹⁾	$	749	$	756

Cash flows related to leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments	$	631	$	546
Operating lease cash flows – Liability reduction		585		495
Right of use assets obtained during the period in exchange for operating lease liabilities		55		148

(1)

Lease costs are included in net occupancy and equipment expense in the unaudited Consolidated Statements of Income.

Schedule of future undiscounted lease payments

The Company was obligated under noncancelable operating leases for office space and other commitments, as follows (dollars in thousands):


	As of
	March 31, 2022
Rent commitments
Remainder of 2022	$	1,684
2023		1,889
2024		1,429
2025		1,194
2026		945
Thereafter		2,509
Total undiscounted cash flows		9,650
Less: Amounts representing interest		583
Present value of net future minimum lease payments	$	9,067

Summary of revenue recorded in connection with leases

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

Significant Accounting Policies (Details) $ in Thousands	3 Months Ended
Significant Accounting Policies (Details) $ in Thousands	Mar. 31, 2022 USD ($) segment Center	Dec. 31, 2021 USD ($)
Nature of Operations
Total Assets	$ 12,567,509	$ 12,859,689
Number of Operating Segments \| segment	3
Number of Banking Centers Consolidated \| Center	58
COVID-19
Covid 19, Payroll Assistance	$ 1,100,000
PPP Loans
COVID-19
PPP loans outstanding	32,500,000	76,900
PPP loans outstanding, amortized cost	$ 31,800	$ 75,000

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 2: http://www.xbrl.org/2003/role/exampleRef
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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 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Acquisitions - Cummins-American Corp. (Details) $ / shares in Units, $ in Thousands			3 Months Ended
	May 31, 2021 USD ($) $ / shares	May 28, 2021 USD ($) $ / shares	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Consideration paid
Goodwill			$ 317,873	$ 317,873
CAC
Merger agreement
Share consideration conversion ratio	444.4783
Per share cash consideration entitled (in dollars per share) \| $ / shares	$ 14,173.96
Additional consideration paid in the form of a special dividend payment to CAC shareholders \| $ / shares		$ 12,087.58
Special cash dividend		$ 60,000
Pre-tax acquisition expenses			800
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		$ 6,300
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) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Debt securities available for sale
Amortized Cost	$ 3,082,715		$ 4,013,523
Gross Unrealized Gains	2,669		22,382
Gross Unrealized Losses	(139,329)		(54,654)
Fair Value	2,946,055		3,981,251
Debt securities held to maturity
Amortized Cost	976,081
Gross Unrealized Losses	(33,235)
Fair Value	942,846
Debt securities available for sale, Amortized Cost
Due in one year or less	174,918
Due after one year through five years	456,926
Due after five years through ten years	313,336
Due after ten years	2,137,535
Amortized Cost	3,082,715		4,013,523
Debt securities available for sale, Fair Value
Due in one year or less	174,182
Due after one year through five years	441,159
Due after five years through ten years	303,050
Due after ten years	2,027,664
Fair Value	2,946,055		3,981,251
Debt securities held to maturity, Amortized Cost
Due after one year through five years	48,405
Due after five years through ten years	66,693
Due after ten years	860,983
Amortised cost	976,081
Debt securities held to maturity, Fair Value
Due after one year through five years	47,185
Due after five years through ten years	64,572
Due after ten years	831,089
Fair value	942,846
Realized gains and losses on debt securities
Gross security gains	113	$ 25
Gross security (losses)	(7)
Realized net gains (losses) on debt securities	106	$ 25
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	2,143,296		2,676,734
Continuous unrealized losses existing for greater than 12 months, gross	450,478		106,443
Total, gross	2,593,774		2,783,177
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(96,653)		(49,847)
Continuous unrealized losses existing greater than 12 months, gross	(42,676)		(4,807)
Total, gross	(139,329)		(54,654)
Debt securities held to maturity, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	693,912
Continuous unrealized losses existing for greater than 12 months, gross	248,934
Total, gross	942,846
Debt securities held to maturity, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(25,269)
Continuous unrealized losses existing for greater than 12 months, gross	(7,966)
Total, gross	(33,235)
U.S. Treasury securities
Debt securities available for sale
Amortized Cost	160,990		166,768
Gross Unrealized Gains	16		41
Gross Unrealized Losses	(3,498)		(1,047)
Fair Value	157,508		165,762
Debt securities available for sale, Amortized Cost
Amortized Cost	160,990		166,768
Debt securities available for sale, Fair Value
Fair Value	157,508		165,762
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	155,422		163,653
Total, gross	155,422		163,653
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(3,498)		(1,047)
Total, gross	(3,498)		(1,047)
Obligations of U.S. government corporations and agencies
Debt securities available for sale
Amortized Cost	34,069		37,579
Gross Unrealized Gains	243		891
Gross Unrealized Losses	(11)
Fair Value	34,301		38,470
Debt securities available for sale, Amortized Cost
Amortized Cost	34,069		37,579
Debt securities available for sale, Fair Value
Fair Value	34,301		38,470
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	390
Total, gross	390
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(11)
Total, gross	(11)
Obligations of states and political subdivisions
Debt securities available for sale
Amortized Cost	308,514		300,602
Gross Unrealized Gains	1,378		7,760
Gross Unrealized Losses	(10,300)		(1,493)
Fair Value	299,592		306,869
Debt securities available for sale, Amortized Cost
Amortized Cost	308,514		300,602
Debt securities available for sale, Fair Value
Fair Value	299,592		306,869
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	158,528		92,680
Continuous unrealized losses existing for greater than 12 months, gross	9,847
Total, gross	168,375		92,680
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(9,277)		(1,493)
Continuous unrealized losses existing greater than 12 months, gross	(1,023)
Total, gross	(10,300)		(1,493)
Commercial mortgage-backed securities
Debt securities available for sale
Amortized Cost	111,535		625,339
Gross Unrealized Gains	30		3,425
Gross Unrealized Losses	(4,063)		(13,766)
Fair Value	107,502		614,998
Debt securities held to maturity
Amortized Cost	503,285
Gross Unrealized Losses	(15,521)
Fair Value	487,764
Debt securities available for sale, Amortized Cost
Amortized Cost	111,535		625,339
Debt securities available for sale, Fair Value
Fair Value	107,502		614,998
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	87,087		389,078
Continuous unrealized losses existing for greater than 12 months, gross	7,203		85,905
Total, gross	94,290		474,983
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(3,558)		(10,186)
Continuous unrealized losses existing greater than 12 months, gross	(505)		(3,580)
Total, gross	(4,063)		(13,766)
Debt securities held to maturity, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	281,462
Continuous unrealized losses existing for greater than 12 months, gross	206,302
Total, gross	487,764
Debt securities held to maturity, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(9,329)
Continuous unrealized losses existing for greater than 12 months, gross	(6,192)
Total, gross	(15,521)
Residential mortgage-backed securities
Debt securities available for sale
Amortized Cost	1,678,891		2,095,104
Gross Unrealized Gains	629		8,889
Gross Unrealized Losses	(104,144)		(34,680)
Fair Value	1,575,376		2,069,313
Debt securities held to maturity
Amortized Cost	472,796
Gross Unrealized Losses	(17,714)
Fair Value	455,082
Debt securities available for sale, Amortized Cost
Amortized Cost	1,678,891		2,095,104
Debt securities available for sale, Fair Value
Fair Value	1,575,376		2,069,313
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	1,054,313		1,700,187
Continuous unrealized losses existing for greater than 12 months, gross	393,830		20,538
Total, gross	1,448,143		1,720,725
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(65,980)		(33,453)
Continuous unrealized losses existing greater than 12 months, gross	(38,164)		(1,227)
Total, gross	(104,144)		(34,680)
Debt securities held to maturity, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	412,450
Continuous unrealized losses existing for greater than 12 months, gross	42,632
Total, gross	455,082
Debt securities held to maturity, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(15,940)
Continuous unrealized losses existing for greater than 12 months, gross	(1,774)
Total, gross	(17,714)
Asset-backed securities
Debt securities available for sale
Amortized Cost	491,269		492,055
Gross Unrealized Gains	12		295
Gross Unrealized Losses	(2,677)		(164)
Fair Value	488,604		492,186
Debt securities available for sale, Amortized Cost
Amortized Cost	491,269		492,055
Debt securities available for sale, Fair Value
Fair Value	488,604		492,186
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	470,964		89,983
Total, gross	470,964		89,983
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(2,677)		(164)
Total, gross	(2,677)		(164)
Corporate debt securities
Debt securities available for sale
Amortized Cost	297,447		296,076
Gross Unrealized Gains	361		1,081
Gross Unrealized Losses	(14,636)		(3,504)
Fair Value	283,172		293,653
Debt securities available for sale, Amortized Cost
Amortized Cost	297,447		296,076
Debt securities available for sale, Fair Value
Fair Value	283,172		293,653
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	216,592		241,153
Continuous unrealized losses existing for greater than 12 months, gross	39,598
Total, gross	256,190		241,153
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(11,652)		(3,504)
Continuous unrealized losses existing greater than 12 months, gross	(2,984)
Total, gross	$ (14,636)		$ (3,504)

Debt Securities - Additional Information (Details) $ in Thousands	Mar. 31, 2022 USD ($) security	Dec. 31, 2021 USD ($) security
Available for Sale
Debt securities with gross unrealized losses, fair value \| $	$ 2,593,774	$ 2,783,177
Gross unrealized losses on debt securities \| $	$ 139,329	$ 54,654
Ratio of gross unrealized losses to debt securities with gross unrealized losses	5.40%	2.00%
Count of debt securities \| security	1,185	1,252
Count of debt securities in an unrealized loss position \| security	645	373
Held to Maturity
Debt securities with gross unrealized losses, fair value \| $	$ 942,846
Gross unrealized losses on debt securities \| $	$ 33,235
Ratio of gross unrealized losses to debt securities with gross unrealized losses	3.50%
Count of debt securities \| security	55
Count of debt securities in an unrealized loss position \| security	55
Total
Debt securities with gross unrealized losses, fair value \| $	$ 3,536,620	$ 2,783,177
Gross unrealized losses on debt securities \| $	$ 172,564	$ 54,654
Ratio of gross unrealized losses to debt securities with gross unrealized losses	4.90%	2.00%
Count of debt securities \| security	1,240	1,252
Count of debt securities in an unrealized loss position \| security	700	373

Debt Securities - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Debt Securities
Debt securities pledged as collateral for public deposits, securities sold under agreements to repurchase, and for other purposes	$ 717.6	$ 708.9

Portfolio Loans- Distribution of portfolio loans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Distributions of portfolio loans
Portfolio loans	$ 7,272,873	$ 7,188,998
ACL	(88,213)	(87,887)	$ (93,943)	$ (101,048)
Portfolio loans, net	7,184,660	7,101,111
Commercial Loans
Distributions of portfolio loans
Portfolio loans	1,906,595	1,943,886
ACL	(24,173)	(23,855)	(23,025)	(23,866)
Commercial Real Estate Loans
Distributions of portfolio loans
Portfolio loans	3,134,794	3,119,807
ACL	(37,339)	(38,249)	(43,306)	(46,230)
Real Estate Construction
Distributions of portfolio loans
Portfolio loans	445,428	385,996
ACL	(5,705)	(5,102)	(6,879)	(8,193)
Retail real estate
Distributions of portfolio loans
Portfolio loans	1,544,365	1,512,976
ACL	(17,555)	(17,589)	(19,978)	(21,992)
Retail other
Distributions of portfolio loans
Portfolio loans	241,691	226,333
ACL	$ (3,441)	$ (3,092)	$ (755)	$ (767)

Portfolio Loans - Narrative (Details) $ in Thousands	3 Months Ended				9 Months Ended	12 Months Ended
Portfolio Loans - Narrative (Details) $ in Thousands	Mar. 31, 2022 USD ($) loan	Sep. 30, 2021 USD ($)	Mar. 31, 2021 USD ($) loan	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Distributions of portfolio loans
Net deferred loan origination (fees) costs						$ 9,000
Net deferred loan origination costs	$ 10,600
Net accretable purchase accounting adjustments	7,700					8,800
Gross interest income that would have been recorded if impaired loans had been current	$ 200		$ 500
Amount of interest collected and recognized on a cash basis		$ 400			$ 400
TDRs subsequently classified as non-performing and had payment defaults \| loan	0		0
Loans in the process of foreclosure	$ 500
Retail real estate
Distributions of portfolio loans
Loans purchased		$ 0		$ 0
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	$ 31,800					$ 75,000

Portfolio Loans - Summary of risk grades segregated by category (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loans
Portfolio loans	$ 7,272,873	$ 7,188,998
Pass
Loans
Portfolio loans	6,688,300	6,518,101
Watch
Loans
Portfolio loans	361,791	463,053
Special Mention
Loans
Portfolio loans	130,228	121,120
Substandard
Loans
Portfolio loans	80,066	70,778
Substandard Non-accrual
Loans
Portfolio loans	12,488	15,946
Commercial
Loans
Portfolio loans	1,906,595	1,943,886
Commercial \| Pass
Loans
Portfolio loans	1,725,369	1,747,756
Commercial \| Watch
Loans
Portfolio loans	73,471	93,582
Commercial \| Special Mention
Loans
Portfolio loans	74,967	69,427
Commercial \| Substandard
Loans
Portfolio loans	26,028	26,117
Commercial \| Substandard Non-accrual
Loans
Portfolio loans	6,760	7,004
Commercial real estate
Loans
Portfolio loans	3,134,794	3,119,807
Commercial real estate \| Pass
Loans
Portfolio loans	2,769,016	2,682,441
Commercial real estate \| Watch
Loans
Portfolio loans	262,411	343,304
Commercial real estate \| Special Mention
Loans
Portfolio loans	53,195	49,695
Commercial real estate \| Substandard
Loans
Portfolio loans	47,567	38,394
Commercial real estate \| Substandard Non-accrual
Loans
Portfolio loans	2,605	5,973
Real estate construction
Loans
Portfolio loans	445,428	385,996
Real estate construction \| Pass
Loans
Portfolio loans	428,467	369,797
Real estate construction \| Watch
Loans
Portfolio loans	14,557	13,793
Real estate construction \| Special Mention
Loans
Portfolio loans	4	6
Real estate construction \| Substandard
Loans
Portfolio loans	2,400	2,400
Retail real estate
Loans
Portfolio loans	1,544,365	1,512,976
Retail real estate \| Pass
Loans
Portfolio loans	1,523,791	1,491,845
Retail real estate \| Watch
Loans
Portfolio loans	11,352	12,374
Retail real estate \| Special Mention
Loans
Portfolio loans	2,062	1,992
Retail real estate \| Substandard
Loans
Portfolio loans	4,071	3,867
Retail real estate \| Substandard Non-accrual
Loans
Portfolio loans	3,089	2,898
Retail other
Loans
Portfolio loans	241,691	226,333
Retail other \| Pass
Loans
Portfolio loans	241,657	226,262
Retail other \| Substandard Non-accrual
Loans
Portfolio loans	34	71
Commercial Loans
Loans
Portfolio loans	1,906,595	1,943,886
Commercial Real Estate Loans
Loans
Portfolio loans	3,134,794	3,119,807
Real Estate Construction
Loans
Portfolio loans	445,428	385,996
Retail real estate
Loans
Portfolio loans	1,544,365	1,512,976
Retail other
Loans
Portfolio loans	$ 241,691	$ 226,333

Portfolio Loans - Risk grades of portfolio loans by origination year (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loans
2022 / 2021	$ 764,975	$ 2,393,701
2021 / 2020	2,171,718	1,296,955
2020 / 2019	1,204,783	845,248
2019/ 2018	720,770	503,186
2018 / 2017	437,590	434,084
Prior	969,849	671,510
Revolving loans	1,003,188	1,044,314
Total	7,272,873	7,188,998
Pass
Loans
Total	6,688,300	6,518,101
Watch
Loans
Total	361,791	463,053
Special Mention
Loans
Total	130,228	121,120
Substandard
Loans
Total	80,066	70,778
Substandard Non-accrual
Loans
Total	12,488	15,946
Commercial
Loans
2022 / 2021	226,627	541,359
2021 / 2020	410,414	239,348
2020 / 2019	195,865	131,390
2019/ 2018	101,522	95,813
2018 / 2017	87,332	83,947
Prior	215,472	142,640
Revolving loans	669,363	709,389
Total	1,906,595	1,943,886
Commercial \| Pass
Loans
2022 / 2021	220,582	512,729
2021 / 2020	386,332	228,811
2020 / 2019	187,571	107,877
2019/ 2018	82,617	84,873
2018 / 2017	80,606	74,351
Prior	187,281	122,418
Revolving loans	580,380	616,697
Total	1,725,369	1,747,756
Commercial \| Watch
Loans
2022 / 2021	1,641	13,847
2021 / 2020	13,751	5,913
2020 / 2019	4,536	14,274
2019/ 2018	9,391	5,060
2018 / 2017	1,412	1,361
Prior	3,315	2,866
Revolving loans	39,425	50,261
Total	73,471	93,582
Commercial \| Special Mention
Loans
2022 / 2021	2,668	7,062
2021 / 2020	4,799	898
2020 / 2019	191	5,961
2019/ 2018	6,125	4,025
2018 / 2017	3,753	6,790
Prior	17,998	11,845
Revolving loans	39,433	32,846
Total	74,967	69,427
Commercial \| Substandard
Loans
2022 / 2021	1,736	3,595
2021 / 2020	1,586	3,362
2020 / 2019	3,222	3,136
2019/ 2018	3,248	1,855
2018 / 2017	1,561	1,125
Prior	6,550	5,459
Revolving loans	8,125	7,585
Total	26,028	26,117
Commercial \| Substandard Non-accrual
Loans
2022 / 2021		4,126
2021 / 2020	3,946	364
2020 / 2019	345	142
2019/ 2018	141
2018 / 2017		320
Prior	328	52
Revolving loans	2,000	2,000
Total	6,760	7,004
Commercial real estate
Loans
2022 / 2021	316,683	1,051,764
2021 / 2020	1,021,818	687,392
2020 / 2019	648,048	557,336
2019/ 2018	464,112	307,458
2018 / 2017	258,537	257,419
Prior	408,470	240,922
Revolving loans	17,126	17,516
Total	3,134,794	3,119,807
Commercial real estate \| Pass
Loans
2022 / 2021	287,524	969,548
2021 / 2020	961,636	637,550
2020 / 2019	608,378	425,850
2019/ 2018	349,992	235,928
2018 / 2017	216,247	200,373
Prior	330,243	198,002
Revolving loans	14,996	15,190
Total	2,769,016	2,682,441
Commercial real estate \| Watch
Loans
2022 / 2021	22,162	51,560
2021 / 2020	33,489	38,820
2020 / 2019	23,614	123,324
2019/ 2018	110,412	48,088
2018 / 2017	22,540	46,761
Prior	48,163	32,608
Revolving loans	2,031	2,143
Total	262,411	343,304
Commercial real estate \| Special Mention
Loans
2022 / 2021	5,765	9,542
2021 / 2020	5,971	7,060
2020 / 2019	12,850	6,585
2019/ 2018	2,321	10,098
2018 / 2017	7,375	6,357
Prior	18,814	9,870
Revolving loans	99	183
Total	53,195	49,695
Commercial real estate \| Substandard
Loans
2022 / 2021	1,232	21,002
2021 / 2020	20,611	3,781
2020 / 2019	3,034	1,218
2019/ 2018	1,028	11,451
2018 / 2017	10,429	521
Prior	11,233	421
Total	47,567	38,394
Commercial real estate \| Substandard Non-accrual
Loans
2022 / 2021		112
2021 / 2020	111	181
2020 / 2019	172	359
2019/ 2018	359	1,893
2018 / 2017	1,946	3,407
Prior	17	21
Total	2,605	5,973
Real estate construction
Loans
2022 / 2021	68,943	209,968
2021 / 2020	189,943	130,050
2020 / 2019	133,276	31,987
2019/ 2018	31,765	3,155
2018 / 2017	2,575	2,312
Prior	3,535	1,343
Revolving loans	15,391	7,181
Total	445,428	385,996
Real estate construction \| Pass
Loans
2022 / 2021	65,127	202,082
2021 / 2020	184,303	123,491
2020 / 2019	127,358	31,927
2019/ 2018	31,709	3,155
2018 / 2017	2,575	738
Prior	2,004	1,223
Revolving loans	15,391	7,181
Total	428,467	369,797
Real estate construction \| Watch
Loans
2022 / 2021	3,816	7,886
2021 / 2020	5,640	4,159
2020 / 2019	3,518	54
2019/ 2018	52
2018 / 2017		1,574
Prior	1,531	120
Total	14,557	13,793
Real estate construction \| Special Mention
Loans
2020 / 2019		6
2019/ 2018	4
Total	4	6
Real estate construction \| Substandard
Loans
2021 / 2020		2,400
2020 / 2019	2,400
Total	2,400	2,400
Retail real estate
Loans
2022 / 2021	115,800	531,210
2021 / 2020	495,128	217,850
2020 / 2019	207,795	98,409
2019/ 2018	100,808	80,557
2018 / 2017	76,164	83,213
Prior	336,778	285,279
Revolving loans	211,892	216,458
Total	1,544,365	1,512,976
Retail real estate \| Pass
Loans
2022 / 2021	114,026	523,541
2021 / 2020	490,691	215,068
2020 / 2019	205,598	96,617
2019/ 2018	99,087	79,158
2018 / 2017	74,589	82,478
Prior	332,410	281,737
Revolving loans	207,390	213,246
Total	1,523,791	1,491,845
Retail real estate \| Watch
Loans
2022 / 2021	1,629	4,100
2021 / 2020	1,208	2,460
2020 / 2019	1,830	1,780
2019/ 2018	1,628	1,312
2018 / 2017	1,269	343
Prior	172	150
Revolving loans	3,616	2,229
Total	11,352	12,374
Retail real estate \| Special Mention
Loans
2022 / 2021	145	1,965
2021 / 2020	1,892	27
2020 / 2019	25
Total	2,062	1,992
Retail real estate \| Substandard
Loans
2022 / 2021		1,369
2021 / 2020	1,095	232
2020 / 2019	224	12
2019/ 2018	93	71
2018 / 2017	70	165
Prior	2,261	1,687
Revolving loans	328	331
Total	4,071	3,867
Retail real estate \| Substandard Non-accrual
Loans
2022 / 2021		235
2021 / 2020	242	63
2020 / 2019	118
2019/ 2018		16
2018 / 2017	236	227
Prior	1,935	1,705
Revolving loans	558	652
Total	3,089	2,898
Retail other
Loans
2022 / 2021	36,922	59,400
2021 / 2020	54,415	22,315
2020 / 2019	19,799	26,126
2019/ 2018	22,563	16,203
2018 / 2017	12,982	7,193
Prior	5,594	1,326
Revolving loans	89,416	93,770
Total	241,691	226,333
Retail other \| Pass
Loans
2022 / 2021	36,922	59,366
2021 / 2020	54,381	22,305
2020 / 2019	19,799	26,126
2019/ 2018	22,563	16,189
2018 / 2017	12,982	7,180
Prior	5,594	1,326
Revolving loans	89,416	93,770
Total	241,657	226,262
Retail other \| Substandard Non-accrual
Loans
2022 / 2021		34
2021 / 2020	34	10
2019/ 2018		14
2018 / 2017		13
Total	34	71
Commercial Loans
Loans
Total	1,906,595	1,943,886
Commercial Real Estate Loans
Loans
Total	3,134,794	3,119,807
Real Estate Construction
Loans
Total	445,428	385,996
Retail real estate
Loans
Total	1,544,365	1,512,976
Retail other
Loans
Total	$ 241,691	$ 226,333

Portfolio Loans - Analysis of loans past due and still accruing or non-accrual status (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loans past due
90+Days	$ 197	$ 906
Non-accrual Loans	12,488	15,946
30 to 59 Days
Loans past due
Loans past due, still accruing	3,213	3,964
60 to 89 Days
Loans past due
Loans past due, still accruing	703	2,297
Commercial
Loans past due
90+Days		213
Non-accrual Loans	6,760	7,004
Commercial \| 30 to 59 Days
Loans past due
Loans past due, still accruing	358	363
Commercial \| 60 to 89 Days
Loans past due
Loans past due, still accruing	93	10
Commercial real estate
Loans past due
Non-accrual Loans	2,605	5,973
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 \| 30 to 59 Days
Loans past due
Loans past due, still accruing		56
Real estate construction \| 60 to 89 Days
Loans past due
Loans past due, still accruing	48
Retail real estate
Loans past due
90+Days	173	693
Non-accrual Loans	3,089	2,898
Retail real estate \| 30 to 59 Days
Loans past due
Loans past due, still accruing	2,732	3,312
Retail real estate \| 60 to 89 Days
Loans past due
Loans past due, still accruing	555	1,830
Retail other
Loans past due
90+Days	24
Non-accrual Loans	34	71
Retail other \| 30 to 59 Days
Loans past due
Loans past due, still accruing	123	82
Retail other \| 60 to 89 Days
Loans past due
Loans past due, still accruing	$ 7	$ 16

Portfolio Loans - Summary of TDR Loan Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Restructured loans
Total TDRs	$ 2,300	$ 2,352
In compliance with modified terms
Restructured loans
Total TDRs	1,771	1,801
Included in non-performing loans
Restructured loans
Total TDRs	$ 529	$ 551

Portfolio Loans - Summarize TDRs (Details) - Commercial $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) contract
Financing Receivable, Impaired [Line Items]
Number of Contracts \| contract	1
Rate Modification
Financing Receivable, Impaired [Line Items]
Recorded Investment \| $	$ 483

Portfolio Loans - Modified loans with payment deferrals (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022 USD ($) contract	Mar. 31, 2021 contract	Dec. 31, 2021 USD ($) contract
COVID-19 loan modifications
Loans identified as impaired
Number of Contracts	15		34
Recorded Investment \| $	$ 37,374		$ 128,867
Commercial
Loans identified as impaired
Number of Contracts		1
Commercial \| Interest-only deferrals
Loans identified as impaired
Number of Contracts	15		32
Recorded Investment \| $	$ 37,374		$ 128,730
Consumer \| Mortgage and personal loan deferrals
Loans identified as impaired
Number of Contracts			2
Recorded Investment \| $			$ 137

Portfolio Loans - Loans identified as impaired, segregated by category (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Loans identified as impaired
Unpaid Contractual Principal Balance	$ 15,879	$ 19,489
Recorded Investment with No Allowance	5,453	8,865
Recorded Investment with Allowance	6,316	6,515
Total Recorded Investment	11,769	15,380
Related Allowance	3,370	3,589
Average Recorded Investment	17,862	19,556
Collateral dependent loans secured by real estate or business assets	4,800	7,900
Commercial Loans
Loans identified as impaired
Unpaid Contractual Principal Balance	10,040	10,247
Recorded Investment with No Allowance	490	498
Recorded Investment with Allowance	6,291	6,490
Total Recorded Investment	6,781	6,988
Related Allowance	3,345	3,564
Average Recorded Investment	8,473	8,791
Commercial Real Estate Loans
Loans identified as impaired
Unpaid Contractual Principal Balance	3,093	6,456
Recorded Investment with No Allowance	2,386	5,750
Total Recorded Investment	2,386	5,750
Average Recorded Investment	5,654	6,390
Real Estate Construction
Loans identified as impaired
Unpaid Contractual Principal Balance	266	272
Recorded Investment with No Allowance	266	272
Total Recorded Investment	266	272
Average Recorded Investment	277	282
Retail real estate
Loans identified as impaired
Unpaid Contractual Principal Balance	2,480	2,514
Recorded Investment with No Allowance	2,311	2,345
Recorded Investment with Allowance	25	25
Total Recorded Investment	2,336	2,370
Related Allowance	25	25
Average Recorded Investment	$ 3,458	$ 4,093

Portfolio Loans - Activity in the allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Activity in the allowance for loan losses
ACL beginning balance	$ 87,887	$ 101,048
Provision for credit losses	(253)	(6,796)
Charged-off	(125)	(964)
Recoveries	704	655
ACL ending balance	88,213	93,943
Allowance for loan losses Ending balance attributed to:
Collectively evaluated for impairment	84,843		$ 84,298
Individually evaluated for impairment	3,370		3,589
Total	88,213	93,943	87,887
Loans:
Collectively evaluated for impairment	7,261,104		7,173,618
Individually evaluated for impairment	11,769		15,380
Total	7,272,873		7,188,998
Commercial Loans
Activity in the allowance for loan losses
ACL beginning balance	23,855	23,866
Provision for credit losses	251	(665)
Charged-off		(262)
Recoveries	67	86
ACL ending balance	24,173	23,025
Allowance for loan losses Ending balance attributed to:
Collectively evaluated for impairment	20,828		20,291
Individually evaluated for impairment	3,345		3,564
Total	24,173	23,025	23,855
Loans:
Collectively evaluated for impairment	1,899,814		1,936,898
Individually evaluated for impairment	6,781		6,988
Total	1,906,595		1,943,886
Commercial Real Estate Loans
Activity in the allowance for loan losses
ACL beginning balance	38,249	46,230
Provision for credit losses	(1,218)	(2,695)
Charged-off		(303)
Recoveries	308	74
ACL ending balance	37,339	43,306
Allowance for loan losses Ending balance attributed to:
Collectively evaluated for impairment	37,339		38,249
Total	37,339	43,306	38,249
Loans:
Collectively evaluated for impairment	3,132,408		3,114,057
Individually evaluated for impairment	2,386		5,750
Total	3,134,794		3,119,807
Real Estate Construction
Activity in the allowance for loan losses
ACL beginning balance	5,102	8,193
Provision for credit losses	510	(1,250)
Charged-off		(209)
Recoveries	93	145
ACL ending balance	5,705	6,879
Allowance for loan losses Ending balance attributed to:
Collectively evaluated for impairment	5,705		5,102
Total	5,705	6,879	5,102
Loans:
Collectively evaluated for impairment	445,162		385,724
Individually evaluated for impairment	266		272
Total	445,428		385,996
Retail real estate
Activity in the allowance for loan losses
ACL beginning balance	17,589	21,992
Provision for credit losses	(170)	(2,276)
Charged-off	(16)	(3)
Recoveries	152	265
ACL ending balance	17,555	19,978
Allowance for loan losses Ending balance attributed to:
Collectively evaluated for impairment	17,530		17,564
Individually evaluated for impairment	25		25
Total	17,555	19,978	17,589
Loans:
Collectively evaluated for impairment	1,542,029		1,510,606
Individually evaluated for impairment	2,336		2,370
Total	1,544,365		1,512,976
Retail other
Activity in the allowance for loan losses
ACL beginning balance	3,092	767
Provision for credit losses	374	90
Charged-off	(109)	(187)
Recoveries	84	85
ACL ending balance	3,441	755
Allowance for loan losses Ending balance attributed to:
Collectively evaluated for impairment	3,441		3,092
Total	3,441	$ 755	3,092
Loans:
Collectively evaluated for impairment	241,691		226,333
Total	$ 241,691		$ 226,333

Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Deposits
Demand deposits, noninterest-bearing	$ 3,568,651	$ 3,670,267
Interest-bearing transaction deposits	2,647,305	2,720,417
Saving deposits and money market deposits	3,485,050	3,442,244
Time deposits	890,830	935,649
Total deposits	10,591,836	10,768,577
Brokered saving deposits and money market deposits	2,002	2,248
Brokered time deposits	268	266
Aggregate amount of time deposits with a minimum denomination of $100,000	437,048	454,649
Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000	139,245	137,449
Time Deposits, Rolling Year Maturity
April 1, 2022 - March 31, 2023	640,465
April 1, 2023 - March 31, 2024	169,339
April 1, 2024 - March 31, 2025	49,456
April 1, 2025 - March 31, 2026	16,970
April 1, 2026 - March 31, 2027	13,920
Thereafter	680
Time Deposits	$ 890,830	$ 935,649

Borrowings - Securities sold under agreements to repurchase (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Borrowings
Securities sold under agreements to repurchase	$ 255,668	$ 270,139
Securities sold under agreements to repurchase, weighted average rate	0.15%	0.08%

Borrowings - Term Loan (Details) - USD ($)	3 Months Ended
Borrowings - Term Loan (Details) - USD ($)	Mar. 31, 2022	Apr. 30, 2022	Dec. 31, 2021	May 28, 2021
Borrowings
Long-term debt	$ 42,881,000		$ 46,056,000
Term Loan
Borrowings
Issuance of debt				$ 60,000,000.0
Long-term debt	39,000,000		$ 42,000,000
Revolving line of credit
Borrowings
Issuance of debt				$ 40,000,000.0
Quarterly payments on the term loan reduce the outstanding principal balance, amount	3,000,000.0
Second Amended and Restated Credit Agreement \| Term Loan
Borrowings
Long-term debt	51,000,000.0
Long-term debt, current	12,000,000.0
Long term debt, noncurrent	39,000,000.0
Second Amended and Restated Credit Agreement \| Revolving line of credit
Borrowings
Balance outstanding	$ 0
Second Amended and Restated Credit Agreement \| One-month LIBOR rate \| Term Loan
Borrowings
Interest rate (as a percent)				1.75%
Third Amendment To Extend Credit Facility [Member] \| SOFR-indexed interest rate \| Term Loan \| Subsequent event
Borrowings
Interest rate (as a percent)		1.80%

Borrowings - Short-term borrowings (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Short-term borrowings
Short-term borrowings	$ 17,683	$ 17,678
Federal funds purchased	0	0
FHLB advances
Short-term borrowings
Short-term borrowings	5,683	5,678
Term Loan, current portion due within 12 months
Short-term borrowings
Short-term borrowings	$ 12,000	$ 12,000
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	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020	Mar. 31, 2022	Dec. 31, 2021
Long-term debt
Long-term debt			$ 42,881	$ 46,056
FHLB advances
Long-term debt
Notes payable original maturity term	5 years	5 years
Interest rate (as a percent)			3.04%	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			$ 3,881	$ 4,056
Term Loan
Long-term debt
Long-term debt			$ 39,000	$ 42,000

Borrowings - Senior notes and Subordinate Notes (Details) - USD ($) $ in Thousands	Jun. 01, 2020	May 25, 2017	Mar. 31, 2022	Dec. 31, 2021
Long-term debt
Unamortized debt issuance cost			$ 1,842	$ 2,283
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			22	56
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			254	549
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
Duration of fixed interest rate	5 years
Floating interest rate margin (as a percent)	5.11%
Unamortized debt issuance cost			$ 1,566	$ 1,678
5.25% notes maturing June 1, 2030 \| First Five Years \| Subordinated debt
Long-term debt
Interest rate (as a percent)	5.25%

Regulatory Capital (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Common Equity Tier 1 Capital to Risk Weighted Assets, Amount
Actual, Amount	$ 1,011,861	$ 995,874
Minimum Capital Requirement, Amount	382,962	378,334
Minimum To Be Well Capitalized, Amount	$ 553,167	$ 546,482
Common Equity Tier 1 Capital to Risk Weighted Assets, Ratio
Actual, Ratio (as a percent)	11.89%	11.85%
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	$ 1,085,861	$ 1,069,874
Minimum Capital Requirement, Amount	510,615	504,445
Minimum To Be Well Capitalized, Amount	$ 680,821	$ 672,594
Tier 1 Capital to Risk Weighted Assets, Ratio
Actual, Ratio (as a percent)	12.76	12.73
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	$ 1,344,541	$ 1,320,187
Minimum Capital Requirement, Amount	680,821	672,594
Minimum To Be Well Capitalized, Amount	$ 851,026	$ 840,742
Total Capital to Risk Weighted Assets, Ratio
Actual, Ratio (as a percent)	15.80	15.70
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	$ 1,085,861	$ 1,069,874
Minimum Capital Requirement, Amount	$ 494,948	$ 502,336
Leverage Ratio of Tier 1 Capital to Average Assets, Ratio
Actual, Ratio (as a percent)	8.78	8.52
Minimum Capital Requirement, Ratio (as a percent)	4.00	4.00
Busey Bank
Common Equity Tier 1 Capital to Risk Weighted Assets, Amount
Actual, Amount	$ 1,247,370	$ 1,241,303
Minimum Capital Requirement, Amount	381,747	377,096
Minimum To Be Well Capitalized, Amount	$ 551,413	$ 544,695
Common Equity Tier 1 Capital to Risk Weighted Assets, Ratio
Actual, Ratio (as a percent)	14.70%	14.81%
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	$ 1,247,370	$ 1,241,303
Minimum Capital Requirement, Amount	508,996	502,795
Minimum To Be Well Capitalized, Amount	$ 678,662	$ 670,394
Tier 1 Capital to Risk Weighted Assets, Ratio
Actual, Ratio (as a percent)	14.70	14.81
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	$ 1,321,050	$ 1,306,616
Minimum Capital Requirement, Amount	678,662	670,394
Minimum To Be Well Capitalized, Amount	$ 848,327	$ 837,992
Total Capital to Risk Weighted Assets, Ratio
Actual, Ratio (as a percent)	15.57	15.59
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	$ 1,247,370	$ 1,241,303
Minimum Capital Requirement, Amount	493,615	501,104
Minimum To Be Well Capitalized, Amount	$ 617,019	$ 626,379
Leverage Ratio of Tier 1 Capital to Average Assets, Ratio
Actual, Ratio (as a percent)	10.11	9.91
Minimum Capital Requirement, Ratio (as a percent)	4.00	4.00
Minimum To Be Well Capitalized, Ratio (as a percent)	5.00	5.00

Stock-based Compensation (Details)	3 Months Ended
Stock-based Compensation (Details)	Mar. 31, 2022 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
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) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Shares
Outstanding at beginning of year (in shares)	31,386
Expired (in shares)	(220)
Outstanding at end of year (in shares)	31,166	31,386
Exercisable at end of year (in shares)	31,166
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
Weighted-Average Remaining Contractual Life, Exercisable	4 years 7 months 17 days
Weighted-Average Remaining Contractual Life, Outstanding at end of year	4 years 7 months 17 days

Stock-based Compensation - Restricted , Performance and Deferred Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		12 Months Ended
	Mar. 23, 2022	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Additional disclosures
Compensation expense recognized		$ 1,909	$ 1,448
Period over which cost will be recognized		2 years 10 months 24 days		2 years 10 months 24 days
RSU awards
Shares
Non-vested at beginning of period (in shares)		1,147,927
Granted (in shares)		156,483
Dividend equivalents earned (in shares)		9,671
Vested (in shares)		(13,594)
Forfeited (in shares)		(10,298)
Non-vested at end of period (in shares)		1,290,189		1,147,927
Weighted-Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 23.97
Granted (in dollars per share)		25.79
Dividend equivalents earned (in dollars per share)		27.30
Vested (in dollars per share)		29.73
Forfeited (in dollars per share)		24.05
Non-vested at end of period (in dollars per share)		$ 24.16		$ 23.97
Additional disclosures
Compensation expense recognized		$ 1,176	1,230
PSU awards
Shares
Non-vested at beginning of period (in shares)		113,915
Granted (in shares)	38,774	195,240
Forfeited (in shares)		(585)
Non-vested at end of period (in shares)		308,570		113,915
Weighted-Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 22.86
Granted (in dollars per share)		25.79
Forfeited (in dollars per share)		23.48
Non-vested at end of period (in dollars per share)		$ 24.71		$ 22.86
Additional disclosures
Grant date fair value of the award	$ 1,000
Compensation expense recognized		$ 412	60
PSU awards \| Minimum
Additional disclosures
Vesting percentage (as a percent)	0.00%
PSU awards \| Maximum
Shares
Granted (in shares)	77,548
Additional disclosures
Vesting percentage (as a percent)	200.00%
DSU awards
Shares
Non-vested at beginning of period (in shares)		34,135
Granted (in shares)		32,658
Dividend equivalents earned (in shares)		1,107
Vested (in shares)		(32,801)
Non-vested at end of period (in shares)		35,099		34,135
Vested and Outstanding at end of period (in shares)		130,098
Weighted-Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 24.59
Granted (in dollars per share)		25.79
Dividend equivalents earned (in dollars per share)		27.30
Vested (in dollars per share)		24.63
Non-vested at end of period (in dollars per share)		25.75		$ 24.59
Vested and Outstanding at end of period (in dollars per share)		$ 22.68
Additional disclosures
Compensation expense recognized		$ 226	$ 158
Market Based Performance Stock Units
Shares
Granted (in shares)	78,233
Additional disclosures
Grant date fair value of the award	$ 2,000
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)	125,173
Additional disclosures
Vesting percentage (as a percent)	160.00%
Performance Based Performance Stock Units
Shares
Granted (in shares)	78,233
Additional disclosures
Grant date fair value of the award	$ 2,000
Performance Based Performance Stock Units \| Minimum
Additional disclosures
Vesting percentage (as a percent)	0.00%
Performance Based Performance Stock Units \| Maximum
Shares
Granted (in shares)	125,173
Additional disclosures
Vesting percentage (as a percent)	160.00%
2020 Equity Incentive Plan \| RSU awards \| Members of management, including the Vice-Chairman of the Board
Shares
Granted (in shares)	156,483
Additional disclosures
Grant date fair value of the award	$ 4,000
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)	32,658
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%

Stock-based Compensation - 2021 Employee Stock Purchase Plan (Details) - 2021 ESPP - shares	Jul. 01, 2021	Mar. 31, 2022
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	600,000	544,470

Stock-based Compensation - Recognized and Unamortized Expense (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Share-based Compensation
Total stock-based compensation expense	$ 1,909	$ 1,448
Total unamortized stock-based compensation expense	$ 19,207		$ 11,960
Weighted average period over which expense is to be recognized	2 years 10 months 24 days		2 years 10 months 24 days
RSU awards
Share-based Compensation
Total stock-based compensation expense	$ 1,176	1,230
Total unamortized stock-based compensation expense	12,838		$ 10,204
PSU awards
Share-based Compensation
Total stock-based compensation expense	412	60
Total unamortized stock-based compensation expense	5,544		1,547
DSU awards
Share-based Compensation
Total stock-based compensation expense	226	$ 158
Total unamortized stock-based compensation expense	825		$ 209
2021 ESPP
Share-based Compensation
Total stock-based compensation expense	$ 95

Stock-based Compensation - Shares Remaining Available for Issuance (Details) - shares	Mar. 31, 2022	Jul. 01, 2021
2020 Equity Plan
Share-based Compensation
Shares Remaining Available for Issuance Pursuant to the Plans	643,569
2021 ESPP
Share-based Compensation
Shares Remaining Available for Issuance Pursuant to the Plans	544,470	600,000

Outstanding Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Credit Commitments and Contingencies
Total commitments	$ 1,999,155	$ 2,016,207
Commitments to extend credit
Credit Commitments and Contingencies
Total commitments	1,969,861	1,983,655
Standby letters of credit
Credit Commitments and Contingencies
Total commitments	$ 29,294	$ 32,552

Derivative Financial Instruments - Interest Rate Swaps Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Derivative [Line Items]
Notional amount	$ 4,000		$ 4,000
Balances carried in AOCI [Abstract]
Interest Expense	6,035	$ 7,438
Interest rate swap
Derivative [Line Items]
Notional amount	300,000
Cash Flow Hedging \| Interest rate swap
Derivative [Line Items]
Notional amount	350,000		50,000
Gross aggregate fair value of the swaps
Gross aggregate fair value of swap assets	835
Gross aggregate fair value of swap liabilities	8,772		958
Balances carried in AOCI [Abstract]
Unrealized gains (losses) on cash flow hedges, net of tax	(5,887)		(685)
Unrealized loss to be reclassified from OCI to interest expense during next twelve months	(400)
Interest income (expense) on swap transactions	500	$ (278)
Cash Flow Hedging \| Interest rate swap \| Reclassification out of Accumulated Other Comprehensive Income [Member]
Balances carried in AOCI [Abstract]
Interest Expense	100
Cash Flow Hedging \| Debt Swap
Derivative [Line Items]
Notional amount	$ 50,000		$ 50,000
Weighted average fixed interest rates	1.79%		1.79%
Weighted average variable interest rates	0.83%		0.20%
Weighted average maturity in years	2 years 5 months 15 days		2 years 8 months 15 days
Cash Flow Hedging \| Loan Swap
Derivative [Line Items]
Notional amount	$ 300,000
Weighted average fixed interest rates	4.81%
Weighted average variable interest rates	3.40%
Weighted average maturity in years	6 years 10 months 6 days

Derivative Financial Instruments - Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) (Details) - Interest rate contract - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Derivative [Line Items]
Cash pledged to secure obligations	$ 10,900
Cash Flow Hedging
Derivative [Line Items]
Gain (loss) recognized in OCI, net of tax	(4,845)	$ 410
(Gain) loss reclassified from OCI to interest expense, net of tax	(357)	199
Net change in unrealized gains (losses) on cash flow hedges	$ (5,202)	$ 609

Derivative Financial Instruments - Forward Sales Commitments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Derivative Financial Instruments
Notional amount	$ 4,000		$ 4,000
Interest rate lock commitments \| Other assets
Derivative Financial Instruments
Notional amount	3,724		19,384
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	38		206
Interest rate lock commitments \| Other liabilities
Derivative Financial Instruments
Notional amount	2,866		499
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other liabilities	23		6
Foreign currency forward contracts \| Other assets
Derivative Financial Instruments
Notional amount	8,947		1,884
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	148		10
Foreign currency forward contracts \| Other liabilities
Derivative Financial Instruments
Notional amount	4,429		41,002
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other liabilities	42		439
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)	121	$ (348)
Interest rate lock commitments and forward sales commitments \| Other assets \| Designated as hedging instrument
Derivative Financial Instruments
Notional amount	12,671		21,268
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	186		216
Interest rate lock commitments and forward sales commitments \| Other liabilities \| Designated as hedging instrument
Derivative Financial Instruments
Notional amount	7,295		41,501
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	65
Fair value recorded in other liabilities			$ 445
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	15	472
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 gains	$ 106
Gross (losses)		$ (820)

Derivative Financial Instruments - Risk Participation Agreement (Details) $ in Millions	Mar. 31, 2022 USD ($) agreement	Dec. 31, 2021 USD ($)
Derivative Financial Instruments
Number of risk participant agreement \| agreement	1
Notional amount \| $	$ 4.0	$ 4.0

Derivative Financial Instruments - Interest Rate Swaps Not Designated as Hedges (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
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	$ 26,500		$ 27,300
Interest rate swap \| Not designated as hedging
Derivative Financial Instruments
Variable rate, commercial loans that are supported by the interest rate swap contracts	492,600		491,400
Notional Amount, Derivative Asset	492,590		491,356
Notional Amount, Derivative Liability	492,590		491,356
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	16,547		20,098
Fair value recorded in other liabilities	16,547		20,098
Interest rate swaps - pay floating, receive fixed \| Not designated as hedging
Derivative Financial Instruments
Notional Amount, Derivative Asset	119,622		404,572
Notional Amount, Derivative Liability	372,968		86,784
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	3,467		17,839
Fair value recorded in other liabilities	13,080		2,259
Interest rate swaps - pay fixed, receive floating \| Not designated as hedging
Derivative Financial Instruments
Notional Amount, Derivative Asset	372,968		86,784
Notional Amount, Derivative Liability	119,622		404,572
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	13,080		2,259
Fair value recorded in other liabilities	3,467		$ 17,839
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	(3,550)	$ (10,595)
Gain (loss) pay fixed receive floating	$ 3,550	$ 10,595

Fair Value Measurements - General Disclosures (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	$ 2,946,055	$ 3,981,251
Equity securities	19,520	13,571
Loans held for sale (2022 at LOCOM, 2021 at fair value)	6,765	23,875
U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	157,508	165,762
Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	34,301	38,470
Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	299,592	306,869
Asset-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	488,604	492,186
Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	107,502	614,998
Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	1,575,376	2,069,313
Corporate debt securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	283,172	293,653
Recurring basis
Financial assets and financial liabilities measured at fair value
Equity securities	19,520
Loans held for sale (2022 at LOCOM, 2021 at fair value)		23,875
Recurring basis \| Derivative assets
Financial assets and financial liabilities measured at fair value
Derivative asset	17,573	20,314
Recurring basis \| Derivative liabilities
Financial assets and financial liabilities measured at fair value
Derivative liability	25,384	21,501
Recurring basis \| U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	157,508	165,762
Recurring basis \| Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	34,301	38,470
Recurring basis \| Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	299,592	306,869
Recurring basis \| Asset-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	488,604	492,186
Recurring basis \| Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	107,502	614,998
Recurring basis \| Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	1,575,376	2,069,313
Recurring basis \| Corporate debt securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	283,172	293,653
Recurring basis \| Securities Equity Investments [Member]
Financial assets and financial liabilities measured at fair value
Equity securities		13,571
Recurring basis \| Level 1
Financial assets and financial liabilities measured at fair value
Equity securities	5,948
Recurring basis \| Level 2
Financial assets and financial liabilities measured at fair value
Equity securities	13,572
Loans held for sale (2022 at LOCOM, 2021 at fair value)		23,875
Recurring basis \| Level 2 \| Derivative assets
Financial assets and financial liabilities measured at fair value
Derivative asset	17,568	20,314
Recurring basis \| Level 2 \| Derivative liabilities
Financial assets and financial liabilities measured at fair value
Derivative liability	25,384	21,501
Recurring basis \| Level 2 \| U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	157,508	165,762
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	34,301	38,470
Recurring basis \| Level 2 \| Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	299,592	306,869
Recurring basis \| Level 2 \| Asset-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	488,604	492,186
Recurring basis \| Level 2 \| Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	107,502	614,998
Recurring basis \| Level 2 \| Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	1,575,376	2,069,313
Recurring basis \| Level 2 \| Corporate debt securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	283,172	293,653
Recurring basis \| Level 2 \| Securities Equity Investments [Member]
Financial assets and financial liabilities measured at fair value
Equity securities		$ 13,571
Recurring basis \| Level 3 \| Derivative assets
Financial assets and financial liabilities measured at fair value
Derivative asset	$ 5

Fair Value Measurements - Additional Quantitative Information (Details) $ in Thousands	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually	$ 11,769	$ 15,380
Non-recurring basis
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually	2,946	2,926
OREO	2,228	51
Bank property held for sale	9,551	10,103
Non-recurring basis \| Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually	2,946	2,926
OREO	2,228	51
Bank property held for sale	9,551	10,103
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Loans evaluated individually
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually	2,946	2,926
Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO	2,228	51
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	$ 9,551	$ 10,103
Comparability adjustment \| 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)	(50.0)
Comparability adjustment \| 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)
Comparability adjustment \| 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)	(53.4)	(55.1)
Comparability adjustment \| Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO (percent)	(16.0)	(33.0)
Comparability adjustment \| 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)
Comparability adjustment \| Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO (percent)	(24.4)	(67.9)
Comparability adjustment \| 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)	(0.7)
Comparability adjustment \| 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)	(70.1)
Comparability adjustment \| 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)	(38.2)	(41.3)

Fair Value Measurements - Segregated by Level of Valuation Inputs (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financial assets:
Fair Value	$ 942,846
Debt securities held to maturity	942,846
Portfolio loans, net	7,184,660	$ 7,101,111
Financial liabilities:
Short-term borrowings	17,683	17,678
Junior subordinated debt owed to unconsolidated trusts	71,678	71,635
Level 1 \| Carrying Amount
Financial assets:
Cash and cash equivalents	479,228	836,095
Level 1 \| Fair Value
Financial assets:
Cash and cash equivalents	479,228	836,095
Level 2 \| Carrying Amount
Financial assets:
Fair Value	976,081
Debt securities held to maturity	976,081
Loans held for sale	6,765
Accrued interest receivable	31,947	31,064
Financial liabilities:
Time deposits	890,830	935,649
Securities sold under agreements to repurchase	255,668	270,139
Short-term borrowings	17,683	17,678
Long-term debt	42,881	46,056
Junior subordinated debt owed to unconsolidated trusts	71,678	71,635
Accrued interest payable	5,116	2,728
Level 2 \| Fair Value
Financial assets:
Fair Value	942,846
Debt securities held to maturity	942,846
Loans held for sale	6,769
Accrued interest receivable	31,947	31,064
Financial liabilities:
Time deposits	882,358	935,778
Securities sold under agreements to repurchase	255,668	270,139
Short-term borrowings	17,745	17,673
Long-term debt	43,007	46,164
Junior subordinated debt owed to unconsolidated trusts	62,840	63,586
Accrued interest payable	5,116	2,728
Level 3 \| Carrying Amount
Financial assets:
Portfolio loans, net	7,184,660	7,101,111
Mortgage servicing rights	8,085	8,608
Other servicing rights	1,712	1,830
Level 3 \| Fair Value
Financial assets:
Portfolio loans, net	7,195,985	7,161,466
Mortgage servicing rights	15,499	12,133
Other servicing rights	2,093	2,268
Level 3 \| Senior notes \| Carrying Amount
Financial liabilities:
Long-term debt	39,978	39,944
Level 3 \| Senior notes \| Fair Value
Financial liabilities:
Long-term debt	40,000	40,400
Level 3 \| Subordinated debt \| Carrying Amount
Financial liabilities:
Long-term debt	182,910	182,773
Level 3 \| Subordinated debt \| Fair Value
Financial liabilities:
Long-term debt	$ 188,437	$ 195,600

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net income per share calculations for basic and diluted methods
Net income	$ 28,439	$ 37,816
Shares:
Weighted average common shares outstanding	55,427,696	54,471,860
Dilutive effect of outstanding options, warrants, and restricted stock units as determined by the application of the treasury stock method (in shares)	755,748	563,946
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation	56,194,946	55,035,806
Basic earnings per common share (in dollars per share)	$ 0.51	$ 0.69
Diluted earnings per common share (in dollars per share)	$ 0.51	$ 0.69
Total anti-dilutive common stock equivalents	241,452	358,279
RSU and DSU awards
Shares:
Total anti-dilutive common stock equivalents		243,396
PSU awards
Shares:
Total anti-dilutive common stock equivalents	241,452	114,883
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)	11,502

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Changes in accumulated other comprehensive income (loss) by component, net of tax
Beginning balance	$ 1,319,112	$ 1,270,069
Unrealized gains (losses) on debt securities available for sale:
Unrealized holding gains (losses) on debt securities available for sale, Tax Effect	(29,726)	(11,993)
Unrealized holding gains (losses) on debt securities available for sale, Net of Tax	(74,556)	(30,079)
Unrealized losses on debt securities transferred from held to maturity to available for sale, Tax Effect	13,812
Unrealized losses on debt securities transferred from held to maturity to available for sale, Net of Tax	(34,644)
Amounts reclassified from AOCI, Tax Effect	30	7
Amounts reclassified from AOCI, Net of Tax	(76)	(18)
Amortization of unrealized losses on securities transferred to held to maturity, Tax Effect	252
Amortization of unrealized losses on securities transferred to held to maturity, Net of Tax	(631)
Unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) on cash flow hedges, Tax Effect	(1,931)
Unrealized holding gains (losses) on cash flow hedges, Net of Tax	(4,845)	410
Amounts reclassified from AOCI, Tax Effect	(143)
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, net of taxes of $143 and ($79), respectively	(357)	199
Ending balance	1,218,025	1,265,822
AOCI
Changes in accumulated other comprehensive income (loss) by component, net of tax
Beginning balance	(23,758)	33,309
Unrealized gains (losses) on cash flow hedges:
Accumulated other comprehensive income (loss) ending balance period, Before Tax	(192,467)	5,344
Accumulated other comprehensive income (loss) ending balance period, Tax Effect	54,862	(1,523)
Ending balance	(137,605)	3,821
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	(32,272)	49,644
Accumulated other comprehensive income (loss) beginning balance period, Tax Effect	9,199	(14,151)
Beginning balance	(23,073)	35,493
Unrealized gains (losses) on debt securities available for sale:
Unrealized holding gains (losses) on debt securities available for sale, Before Tax	(104,282)	(42,072)
Unrealized holding gains (losses) on debt securities available for sale, Tax Effect	29,726	11,993
Unrealized holding gains (losses) on debt securities available for sale, Net of Tax	(74,556)	(30,079)
Unrealized losses on debt securities transferred from held to maturity to available for sale, Before Tax	(48,456)
Unrealized losses on debt securities transferred from held to maturity to available for sale, Tax Effect	13,812
Unrealized losses on debt securities transferred from held to maturity to available for sale, Net of Tax	(34,644)
Amounts reclassified from AOCI, Before Tax	(106)	(25)
Amounts reclassified from AOCI, Tax Effect	30	7
Amounts reclassified from AOCI, Net of Tax	(76)	(18)
Amortization of unrealized losses on securities transferred to held to maturity, Before Tax	883
Amortization of unrealized losses on securities transferred to held to maturity, Tax Effect	(252)
Amortization of unrealized losses on securities transferred to held to maturity, Net of Tax	631
Unrealized gains (losses) on cash flow hedges:
Accumulated other comprehensive income (loss) ending balance period, Before Tax	(184,233)	7,547
Accumulated other comprehensive income (loss) ending balance period, Tax Effect	52,515	(2,151)
Ending balance	(131,718)	5,396
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	(958)	(3,055)
Accumulated other comprehensive income (loss) beginning balance period, Tax Effect	273	871
Beginning balance	(685)	(2,184)
Unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) on cash flow hedges, Before Tax	(6,776)	574
Unrealized holding gains (losses) on cash flow hedges, Tax Effect	1,931	(164)
Unrealized holding gains (losses) on cash flow hedges, Net of Tax	(4,845)	410
Amounts reclassified from AOCI, Before Tax	(500)	278
Amounts reclassified from AOCI, Tax Effect	143	(79)
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, net of taxes of $143 and ($79), respectively	(357)	199
Accumulated other comprehensive income (loss) ending balance period, Before Tax	(8,234)	(2,203)
Accumulated other comprehensive income (loss) ending balance period, Tax Effect	2,347	628
Ending balance	$ (5,887)	$ (1,575)

Operating Segments and Related Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) segment	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)
Operating Segments and Related Information
Number of reportable segments \| segment	3
Number of operating segments \| segment	3
Goodwill	$ 317,873		$ 317,873
Total Assets	12,567,509		12,859,689
Net interest income	70,056	$ 64,893
Noninterest income	35,772	31,445
Noninterest expense	70,376	54,499
Income before income taxes	35,705	48,635
Net income	28,439	37,816
Operating segments \| Banking
Operating Segments and Related Information
Goodwill	294,773		294,773
Total Assets	12,450,999		12,746,833
Net interest income	73,832	68,455
Noninterest income	15,286	12,884
Noninterest expense	55,567	42,091
Income before income taxes	33,804	46,044
Net income	26,451	35,528
Operating segments \| FirsTech
Operating Segments and Related Information
Goodwill	8,992		8,992
Total Assets	46,900		47,481
Net interest income	18	20
Noninterest income	5,419	4,861
Noninterest expense	4,683	4,290
Income before income taxes	754	591
Net income	550	429
Operating segments \| Wealth Management
Operating Segments and Related Information
Goodwill	14,108		14,108
Total Assets	71,364		65,587
Noninterest income	15,776	12,587
Noninterest expense	8,265	6,565
Income before income taxes	7,511	6,022
Net income	5,840	4,682
Other
Operating Segments and Related Information
Total Assets	(1,754)		$ (212)
Net interest income	(3,794)	(3,582)
Noninterest income	(709)	1,113
Noninterest expense	1,861	1,553
Income before income taxes	(6,364)	(4,022)
Net income	$ (4,402)	$ (2,823)

Leases - Lease-related balances (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Leases
Right of use assets	$ 9,014	$ 10,533
Lease liabilities	$ 9,067	$ 10,591
Weighted average lease term (in years)	6 years 3 months 7 days	6 years 5 months 19 days
Weighted average discount rate (in percent)	2.04%	2.16%

Leases - Lease Cost and Other Lease Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Lease Costs
Operating lease costs	$ 617	$ 564
Variable lease costs	128	174
Short-term lease costs	4	18
Total lease cost	749	756
Cash paid for amounts included in the measurement of lease liabilities
Operating lease cash flows - Fixed payments	631	546
Operating lease cash flows - Liability reduction	585	495
Right of use assets obtained during the period in exchange for operating lease liabilities	$ 55	$ 148

Leases - Undiscounted Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Projected minimum rental payments under the terms of leases
Remainder of 2022	$ 1,684
2023	1,889
2024	1,429
2025	1,194
2026	945
Thereafter	2,509
Total undiscounted cash flows	9,650
Less: Amounts representing interest	583
Present value of net future minimum lease payments	$ 9,067	$ 10,591

Leases - Busey as the Lessor (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Leases
Lease income	$ 230	$ 44