0000314489-23-000056 | 10-Q | XBRL Viewer

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CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Cash and cash equivalents:
Cash and due from banks	$ 126,577	$ 117,513
Interest-bearing deposits	148,992	109,651
Total cash and cash equivalents	275,569	227,164
Debt securities available for sale	2,383,550	2,461,393
Debt securities held to maturity	907,559	918,312
Equity securities	10,915	11,535
Loans held for sale	2,714	1,253
Portfolio loans (net of ACL of $91,727 at March 31, 2023, and $91,608 at December 31, 2022)	7,692,081	7,634,094
Premises and equipment, net	126,515	126,524
Right of use assets	12,291	12,829
Goodwill	317,873	317,873
Other intangible assets, net	43,694	46,423
Cash surrender value of bank owned life insurance	180,187	180,485
Other assets	391,607	398,792
Total assets	12,344,555	12,336,677
Deposits:
Noninterest-bearing	3,173,783	3,393,666
Interest-bearing	6,627,386	6,677,614
Total deposits	9,801,169	10,071,280
Securities sold under agreements to repurchase	210,977	229,806
Short-term borrowings	615,881	351,054
Long-term debt	27,000	30,000
Subordinated notes, net of unamortized issuance costs	222,245	222,038
Junior subordinated debt owed to unconsolidated trusts	71,855	71,810
Lease liabilities	12,515	12,995
Other liabilities	184,355	201,717
Total liabilities	11,145,997	11,190,700
Outstanding commitments and contingent liabilities (see Notes 4 and 9)
Stockholders’ equity
Common stock, ($.001 par value; 100,000,000 shares authorized)	58	58
Additional paid-in capital	1,322,407	1,320,980
Retained earnings	191,924	168,769
AOCI	(245,784)	(273,278)
Total stockholders’ equity before treasury stock	1,268,605	1,216,529
Treasury stock at cost	(70,047)	(70,552)
Total stockholders’ equity	1,198,558	1,145,977
Total liabilities and stockholders’ equity	$ 12,344,555	$ 12,336,677
Shares
Common shares issued (in shares)	58,116,970	58,116,970
Less: Treasury shares (in shares)	(2,822,515)	(2,837,846)
Common shares outstanding (in shares)	55,294,455	55,279,124

Borrowings (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

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, 2023			December 31, 2022
Securities sold under agreements to repurchase	$	210,977		$	229,806
Weighted average rate for securities sold under agreements to repurchase	2.44		%	1.91		%

Schedule of short-term borrowings

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


	As of
	March 31, 2023		December 31, 2022
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	$	603,881	$	339,054

Term Loan, current portion due within 12 months	12,000		12,000
Total short-term debt	$	615,881	$	351,054

Summary of long-term debt

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


	As of
	March 31, 2023		December 31, 2022
Long-term debt

Term Loan	$	27,000	$	30,000

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, 2023		December 31, 2022
Unamortized debt issuance costs
Subordinated notes issued in 2020	$	1,101	$	1,220
Subordinated notes issued in 2022	1,654		1,742
Total unamortized debt issuance costs	$	2,755	$	2,962

- 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

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+ Details

Operating Segments and Related Information (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Summary of information relating to operating segments

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, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Operating segment
Banking	$	294,773	$	294,773	$	12,206,562	$	12,199,960
FirsTech	8,992		8,992		47,750		48,715
Wealth Management	14,108		14,108		87,878		84,082
Other	—		—		2,365		3,920
Consolidated total	$	317,873	$	317,873	$	12,344,555	$	12,336,677


	Three Months Ended March 31,
		2023		2022
Net interest income
Banking		$	89,890	$	73,832
FirsTech		13		18

Other		(4,046)		(3,794)
Total net interest income		$	85,857	$	70,056

Noninterest income
Banking		$	12,421	$	15,286
FirsTech		5,674		5,419
Wealth Management		14,926		15,776
Other		(1,173)		(709)
Total noninterest income		$	31,848	$	35,772

Noninterest expense
Banking		$	54,651	$	55,567
FirsTech		5,739		4,683
Wealth Management		8,534		8,265
Other		1,479		1,861
Total noninterest expense		$	70,403	$	70,376

Income before income taxes
Banking		$	46,707	$	33,804
FirsTech		(52)		754
Wealth Management		6,392		7,511
Other		(6,698)		(6,364)
Total income before income taxes		$	46,349	$	35,705

Net income
Banking		$	36,835	$	26,451
FirsTech		(38)		550
Wealth Management		4,858		5,840
Other		(4,869)		(4,402)
Total net income		$	36,786	$	28,439

Debt Securities - Debt securities in an unrealized loss position (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value
Less than 12 months	$ 237,884	$ 1,070,674
12 months or more	2,102,068	1,368,859
Total	2,339,952	2,439,533
Unrealized Losses
Less than 12 months	(8,637)	(81,841)
Unrealized Losses	(271,946)	(229,363)
Total	(280,583)	(311,204)
Fair Value
Less than 12 months		58,065
12 months or more	780,653	727,230
Total	780,653	785,295
Unrealized Losses
Less than 12 months		(8,009)
12 months or more	(126,906)	(125,008)
Total	(126,906)	(133,017)
U.S. Treasury securities
Fair Value
Less than 12 months	964	74
12 months or more	83,668	113,987
Total	84,632	114,061
Unrealized Losses
Less than 12 months	(32)	0
Unrealized Losses	(2,518)	(3,744)
Total	(2,550)	(3,744)
Obligations of U.S. government corporations and agencies
Fair Value
Less than 12 months	11,262	19,603
12 months or more	196	0
Total	11,458	19,603
Unrealized Losses
Less than 12 months	(223)	(321)
Unrealized Losses	(8)	0
Total	(231)	(321)
Obligations of states and political subdivisions
Fair Value
Less than 12 months	80,541	166,147
12 months or more	133,343	75,217
Total	213,884	241,364
Unrealized Losses
Less than 12 months	(755)	(10,059)
Unrealized Losses	(20,035)	(16,016)
Total	(20,790)	(26,075)
Asset-backed securities
Fair Value
Less than 12 months	16,954	390,164
12 months or more	452,193	79,711
Total	469,147	469,875
Unrealized Losses
Less than 12 months	(346)	(15,648)
Unrealized Losses	(18,741)	(4,035)
Total	(19,087)	(19,683)
Commercial mortgage-backed securities
Fair Value
Less than 12 months	7,634	89,428
12 months or more	101,193	18,966
Total	108,827	108,394
Unrealized Losses
Less than 12 months	(290)	(12,623)
Unrealized Losses	(14,603)	(3,406)
Total	(14,893)	(16,029)
Fair Value
Less than 12 months		58,065
12 months or more	406,940	353,017
Total	406,940	411,082
Unrealized Losses
Less than 12 months		(8,009)
12 months or more	(63,198)	(55,729)
Total	(63,198)	(63,738)
Residential mortgage-backed securities
Fair Value
Less than 12 months	103,167	366,221
12 months or more	1,122,195	876,668
Total	1,225,362	1,242,889
Unrealized Losses
Less than 12 months	(5,778)	(38,111)
Unrealized Losses	(194,821)	(182,606)
Total	(200,599)	(220,717)
Fair Value
Less than 12 months		0
12 months or more	373,713	374,213
Total	373,713	374,213
Unrealized Losses
Less than 12 months		0
12 months or more	(63,708)	(69,279)
Total	(63,708)	(69,279)
Corporate debt securities
Fair Value
Less than 12 months	17,362	39,037
12 months or more	209,280	204,310
Total	226,642	243,347
Unrealized Losses
Less than 12 months	(1,213)	(5,079)
Unrealized Losses	(21,220)	(19,556)
Total	$ (22,433)	$ (24,635)

Debt Securities - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Asset Pledged as Collateral
Financial Instruments Owned and Pledged as Collateral [Line Items]
Debt securities, carrying amount	$ 764.9	$ 746.7

Stock-Based Compensation - Schedule of Stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	$ 1,669	$ 1,909
RSU Awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	1,020	1,176
PSU Awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	360	412
DSU Awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	196	226
2021 ESPP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	$ 93	$ 95

Earnings Per Common Share - Schedule of computation of earnings per common share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net income per share calculations for basic and diluted methods
Net income	$ 36,786	$ 28,439
Weighted Average Shares Outstanding
Weighted average number of common shares outstanding, basic (in shares)	55,397,989	55,427,696
Weighted average number of common shares outstanding, diluted (in shares)	56,179,606	56,194,946
Basic earnings per common share (in dollars per share)	$ 0.66	$ 0.51
Diluted earnings per common share (in dollars per share)	$ 0.65	$ 0.51
Options
Weighted Average Shares Outstanding
Dilutive effect of common stock equivalents (in shares)	0	4,568
Warrants
Weighted Average Shares Outstanding
Dilutive effect of common stock equivalents (in shares)	1,296	1,855
RSU Awards
Weighted Average Shares Outstanding
Dilutive effect of common stock equivalents (in shares)	651,777	703,574
PSU Awards
Weighted Average Shares Outstanding
Dilutive effect of common stock equivalents (in shares)	90,645	16,378
DSU Awards
Weighted Average Shares Outstanding
Dilutive effect of common stock equivalents (in shares)	24,345	29,373
ESPP
Weighted Average Shares Outstanding
Dilutive effect of common stock equivalents (in shares)	13,554	11,502

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2023	May 04, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
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		55,300,614
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000314489
Amendment Flag	false

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest income
Interest and fees on loans	$ 89,775	$ 60,882
Interest and dividends on investment securities:
Taxable interest income	19,599	14,094
Non-taxable interest income	743	838
Other interest income	988	277
Total interest income	111,105	76,091
Interest expense
Deposits	14,740	2,124
Federal funds purchased and securities sold under agreements to repurchase	1,222	59
Short-term borrowings	4,822	89
Long-term debt	454	226
Senior notes	0	400
Subordinated notes	3,097	2,483
Junior subordinated debt owed to unconsolidated trusts	913	654
Total interest expense	25,248	6,035
Net interest income	85,857	70,056
Provision for credit losses	953	(253)
Net interest income after provision for credit losses	84,904	70,309
Noninterest income
Mortgage revenue	288	975
Income on bank owned life insurance	1,652	884
Realized net gains (losses) on securities	4	106
Unrealized net gains (losses) recognized on equity securities	(620)	(720)
Other income	3,593	4,764
Total noninterest income	31,848	35,772
Noninterest expense
Salaries, wages, and employee benefits	40,331	39,354
Data processing	5,640	4,978
Net occupancy expense of premises	4,762	5,067
Furniture and equipment expenses	1,746	2,030
Professional fees	2,058	1,507
Amortization of intangible assets	2,729	3,011
Interchange expense	1,853	1,545
Other expense	11,284	12,884
Total noninterest expense	70,403	70,376
Income before income taxes	46,349	35,705
Income taxes	9,563	7,266
Net income	$ 36,786	$ 28,439
Basic earnings per common share (in dollars per share)	$ 0.66	$ 0.51
Diluted earnings per common share (in dollars per share)	0.65	0.51
Dividends declared per share of common stock (in dollars per share)	$ 0.24	$ 0.23
Wealth management fees
Noninterest income
Noninterest income	$ 14,797	$ 15,779
Fees for customer services
Noninterest income
Noninterest income	6,819	8,907
Payment technology solutions
Noninterest income
Noninterest income	$ 5,315	$ 5,077

Stock-Based Compensation - Schedule of Unamortized stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total unamortized stock-based compensation	$ 21,466	$ 13,024
Weighted average period over which expense is to be recognized	2 years 9 months 18 days	2 years 6 months
RSU Awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total unamortized stock-based compensation	$ 12,005	$ 8,570
PSU Awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total unamortized stock-based compensation	8,632	4,279
DSU Awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total unamortized stock-based compensation	$ 829	$ 175

Portfolio Loans - Schedule of payment status of modified loans (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Current
Loans identified as impaired
Amortized cost of modified loans	$ 38,342
30-89 Days
Loans identified as impaired
Amortized cost of modified loans	0
90+ Days
Loans identified as impaired
Amortized cost of modified loans	0
Commercial \| Current
Loans identified as impaired
Amortized cost of modified loans	25,644
Commercial \| 30-89 Days
Loans identified as impaired
Amortized cost of modified loans	0
Commercial \| 90+ Days
Loans identified as impaired
Amortized cost of modified loans	0
Commercial real estate \| Current
Loans identified as impaired
Amortized cost of modified loans	12,698
Commercial real estate \| 30-89 Days
Loans identified as impaired
Amortized cost of modified loans	0
Commercial real estate \| 90+ Days
Loans identified as impaired
Amortized cost of modified loans	$ 0

Fair Value Measurements - Schedule of assets and liabilities measured at fair value on a non-recurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually, net of related allowance	$ 12,930	$ 15,647
Loans evaluated individually, net of related allowance \| Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually, net of related allowance	5,806	5,345
Loans evaluated individually, net of related allowance \| Level 1 Inputs \| Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually, net of related allowance	0	0
Loans evaluated individually, net of related allowance \| Level 2 Inputs \| Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually, net of related allowance	0	0
Loans evaluated individually, net of related allowance \| Level 3 Inputs \| Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually, net of related allowance	5,806	5,345
OREO and other repossessed assets with subsequent impairment \| Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO and other repossessed assets with subsequent impairment	639
OREO and other repossessed assets with subsequent impairment \| Level 1 Inputs \| Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO and other repossessed assets with subsequent impairment	0
OREO and other repossessed assets with subsequent impairment \| Level 2 Inputs \| Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO and other repossessed assets with subsequent impairment	0
OREO and other repossessed assets with subsequent impairment \| Level 3 Inputs \| Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO and other repossessed assets with subsequent impairment	639
Bank property held for sale with impairment \| Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Bank property held for sale with impairment	7,923	7,923
Bank property held for sale with impairment \| Level 1 Inputs \| Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Bank property held for sale with impairment	0	0
Bank property held for sale with impairment \| Level 2 Inputs \| Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Bank property held for sale with impairment	0	0
Bank property held for sale with impairment \| Level 3 Inputs \| Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Bank property held for sale with impairment	$ 7,923	$ 7,923

Borrowings - Schedule of unamortized debt issuance cost (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total unamortized debt issuance costs	$ 2,755	$ 2,962
Subordinated notes issued in 2020 \| Subordinated Debt
Debt Instrument [Line Items]
Total unamortized debt issuance costs	1,101	1,220
Subordinated notes issued in 2022 \| Subordinated Debt
Debt Instrument [Line Items]
Total unamortized debt issuance costs	$ 1,654	$ 1,742

Regulatory Capital (Tables)

3 Months Ended

Mar. 31, 2023

Banking and Thrift, Other Disclosure [Abstract]

Schedule of applicable holding company and bank regulatory capital requirements

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


	As of March 31, 2023
	Actual				Minimum Capital Requirement				Minimum To Be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Common equity Tier 1 capital to risk weighted assets
First Busey	$	1,103,960	12.18	%	$	407,938	4.50	%	$	589,243	6.50	%
Busey Bank	$	1,325,556	14.66	%	$	406,788	4.50	%	$	587,582	6.50	%

Tier 1 capital to risk weighted assets
First Busey	$	1,177,960	12.99	%	$	543,917	6.00	%	$	725,222	8.00	%
Busey Bank	$	1,325,556	14.66	%	$	542,383	6.00	%	$	723,178	8.00	%

Total capital to risk weighted assets
First Busey	$	1,486,577	16.40	%	$	725,222	8.00	%	$	906,528	10.00	%
Busey Bank	$	1,409,173	15.59	%	$	723,178	8.00	%	$	903,972	10.00	%

Leverage ratio of Tier 1 capital to average assets
First Busey	$	1,177,960	9.71	%	$	485,472	4.00	%	N/A		N/A
Busey Bank	$	1,325,556	10.95	%	$	484,256	4.00	%	$	605,320	5.00	%


	As of December 31, 2022
	Actual				Minimum Capital Requirement				Minimum To Be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Common equity Tier 1 capital to risk weighted assets
First Busey	$	1,081,686	11.96	%	$	406,980	4.50	%	$	587,861	6.50	%
Busey Bank	$	1,306,716	14.49	%	$	405,736	4.50	%	$	586,063	6.50	%

Tier 1 capital to risk weighted assets
First Busey	$	1,155,686	12.78	%	$	542,640	6.00	%	$	723,521	8.00	%
Busey Bank	$	1,306,716	14.49	%	$	540,981	6.00	%	$	721,308	8.00	%

Total capital to risk weighted assets
First Busey	$	1,457,994	16.12	%	$	723,521	8.00	%	$	904,401	10.00	%
Busey Bank	$	1,384,024	15.35	%	$	721,308	8.00	%	$	901,635	10.00	%

Leverage ratio of Tier 1 capital to average assets
First Busey	$	1,081,686	9.45	%	$	489,124	4.00	%	N/A		N/A
Busey Bank	$	1,306,716	10.72	%	$	487,541	4.00	%	$	609,426	5.00	%

Portfolio Loans - Schedule of loan modifications made to borrowers experiencing financial difficulty (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Payment Deferral1
Loans identified as impaired
Interest Rate Reduction	$ 489
% of Total Class of Financing Receivable	0.00%
Payment Deferral1 \| Commercial
Loans identified as impaired
Interest Rate Reduction	$ 489
% of Total Class of Financing Receivable	0.00%
Payment Deferral1 \| Commercial real estate
Loans identified as impaired
Interest Rate Reduction	$ 0
% of Total Class of Financing Receivable	0.00%
Term Extension3
Loans identified as impaired
Interest Rate Reduction	$ 37,853
% of Total Class of Financing Receivable	0.50%
Term Extension3 \| Commercial
Loans identified as impaired
Interest Rate Reduction	$ 25,155
% of Total Class of Financing Receivable	1.30%
Term Extension3 \| Commercial real estate
Loans identified as impaired
Interest Rate Reduction	$ 12,698
% of Total Class of Financing Receivable	0.40%

Debt Securities - Schedule of Amortized Cost, Unrealized Gains and Losses, and Fair Values of Securities Classified as AFS and HTM (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt securities available for sale
Amortized Cost	$ 2,663,921	$ 2,772,453
Gross unrealized gains	212	144
Gross unrealized losses	(280,583)	(311,204)
Fair Value	2,383,550	2,461,393
Debt securities held to maturity
Amortized Cost	907,559	918,312
Gross unrealized gains	0	0
Gross unrealized losses	(126,906)	(133,017)
Fair Value	780,653	785,295
U.S. Treasury securities
Debt securities available for sale
Amortized Cost	87,182	117,805
Gross unrealized gains	0	0
Gross unrealized losses	(2,550)	(3,744)
Fair Value	84,632	114,061
Obligations of U.S. government corporations and agencies
Debt securities available for sale
Amortized Cost	11,855	20,097
Gross unrealized gains	3	3
Gross unrealized losses	(231)	(321)
Fair Value	11,627	19,779
Obligations of states and political subdivisions
Debt securities available for sale
Amortized Cost	274,858	283,481
Gross unrealized gains	193	106
Gross unrealized losses	(20,790)	(26,075)
Fair Value	254,261	257,512
Asset-backed securities
Debt securities available for sale
Amortized Cost	488,234	489,558
Gross unrealized gains	0	0
Gross unrealized losses	(19,087)	(19,683)
Fair Value	469,147	469,875
Commercial mortgage-backed securities
Debt securities available for sale
Amortized Cost	123,720	124,423
Gross unrealized gains	0	0
Gross unrealized losses	(14,893)	(16,029)
Fair Value	108,827	108,394
Debt securities held to maturity
Amortized Cost	470,138	474,820
Gross unrealized gains	0	0
Gross unrealized losses	(63,198)	(63,738)
Fair Value	406,940	411,082
Residential mortgage-backed securities
Debt securities available for sale
Amortized Cost	1,426,529	1,463,971
Gross unrealized gains	4	2
Gross unrealized losses	(200,599)	(220,717)
Fair Value	1,225,934	1,243,256
Debt securities held to maturity
Amortized Cost	437,421	443,492
Gross unrealized gains	0	0
Gross unrealized losses	(63,708)	(69,279)
Fair Value	373,713	374,213
Corporate debt securities
Debt securities available for sale
Amortized Cost	251,543	273,118
Gross unrealized gains	12	33
Gross unrealized losses	(22,433)	(24,635)
Fair Value	$ 229,122	$ 248,516

Borrowings - Summary of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Term Loan
Debt Instrument [Line Items]
Long-term debt	$ 27,000	$ 30,000

Derivative Financial Instruments - Schedule of financial instruments owned and pledged as collateral (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Interest Rate Swap
Derivative [Line Items]
Cash pledged to secure obligations	$ 37,827	$ 38,609
Interest Rate Contract
Derivative [Line Items]
Cash pledged to secure obligations	$ 22,650	$ 29,830

Regulatory Capital

3 Months Ended

Mar. 31, 2023

Banking and Thrift, Other Disclosure [Abstract]

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, 2023, and December 31, 2022, 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, 2023, that would change this designation.

Current Expected Credit Loss Model

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, arising 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.

Capital Amounts and Ratios

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


	As of March 31, 2023
	Actual				Minimum Capital Requirement				Minimum To Be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Common equity Tier 1 capital to risk weighted assets
First Busey	$	1,103,960	12.18	%	$	407,938	4.50	%	$	589,243	6.50	%
Busey Bank	$	1,325,556	14.66	%	$	406,788	4.50	%	$	587,582	6.50	%

Tier 1 capital to risk weighted assets
First Busey	$	1,177,960	12.99	%	$	543,917	6.00	%	$	725,222	8.00	%
Busey Bank	$	1,325,556	14.66	%	$	542,383	6.00	%	$	723,178	8.00	%

Total capital to risk weighted assets
First Busey	$	1,486,577	16.40	%	$	725,222	8.00	%	$	906,528	10.00	%
Busey Bank	$	1,409,173	15.59	%	$	723,178	8.00	%	$	903,972	10.00	%

Leverage ratio of Tier 1 capital to average assets
First Busey	$	1,177,960	9.71	%	$	485,472	4.00	%	N/A		N/A
Busey Bank	$	1,325,556	10.95	%	$	484,256	4.00	%	$	605,320	5.00	%


	As of December 31, 2022
	Actual				Minimum Capital Requirement				Minimum To Be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Common equity Tier 1 capital to risk weighted assets
First Busey	$	1,081,686	11.96	%	$	406,980	4.50	%	$	587,861	6.50	%
Busey Bank	$	1,306,716	14.49	%	$	405,736	4.50	%	$	586,063	6.50	%

Tier 1 capital to risk weighted assets
First Busey	$	1,155,686	12.78	%	$	542,640	6.00	%	$	723,521	8.00	%
Busey Bank	$	1,306,716	14.49	%	$	540,981	6.00	%	$	721,308	8.00	%

Total capital to risk weighted assets
First Busey	$	1,457,994	16.12	%	$	723,521	8.00	%	$	904,401	10.00	%
Busey Bank	$	1,384,024	15.35	%	$	721,308	8.00	%	$	901,635	10.00	%

Leverage ratio of Tier 1 capital to average assets
First Busey	$	1,081,686	9.45	%	$	489,124	4.00	%	N/A		N/A
Busey Bank	$	1,306,716	10.72	%	$	487,541	4.00	%	$	609,426	5.00	%

Capital Conservation Buffer

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

Deposits - Schedule of maturities of time deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Time deposits by schedule of maturities
Remainder of 2023	$ 474,277
2024	596,731
2025	42,344
2026	17,183
2027	13,746
2028	3,851
Thereafter	539
Time deposits	$ 1,148,671	$ 855,375

Borrowings - Senior and Subordinated Notes (Details) - Subordinated Debt - USD ($) $ in Millions	Jun. 02, 2022	Jun. 01, 2020
5.25% notes maturing June 1, 2030
Debt Instrument [Line Items]
Issuance of debt		$ 125.0
Floating interest rate margin (as a percent)		5.11%
Duration of fixed interest rate		5 years
5.25% notes maturing June 1, 2030 \| Base Rate
Debt Instrument [Line Items]
Interest rate		5.25%
5.000% notes due 2032
Debt Instrument [Line Items]
Issuance of debt	$ 100.0
Fixed to floating interest rate	5.00%
Percentage of principal amount of notes	100.00%
5.000% notes due 2032 \| SOFR
Debt Instrument [Line Items]
Floating interest rate margin (as a percent)	2.52%

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Mar. 31, 2023
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations First Busey Corporation, a Nevada corporation organized in 1980, is a $12.3 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. •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 comprehensive and innovative payment technology solutions including online, mobile, and voice-recognition bill payments; money management and credit card networks; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments. FirsTech also provides additional tools to help clients with billing, reconciliation, bill reminders, and treasury services. •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. For additional information about the Company's operating segments, see “N ote 14 . Operating Segments and Related Information.”
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 2022 Annual Report. These interim unaudited consolidated financial statements serve to update our 2022 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 In March 2022, the FASB issued ASU 2022-02 “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures,” which 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 310-20-35-9 through 35-11 “Receivables—Nonrefundable Fees and Other Costs—Subsequent Measurement—Loan Refinancing or Restructuring” 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 became effective for First Busey beginning January 1, 2023. Adoption of this standard did not have a material impact on our financial position or results of operations. In March 2022, the FASB issued ASU 2022-01 “Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method,” which 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 became effective for First Busey beginning January 1, 2023. Adoption of this standard did not have a material impact on our financial position or results of operations. ASU 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” requires measurement and recognition in accordance with ASC Topic 606 “Revenue from Contracts with Customers” for contract assets and contract liabilities acquired in a business combination. This update became effective for First Busey beginning January 1, 2023. This standard applies prospectively to all business combinations that occur on or after the date it is adopted. Adoption of this standard did not have an impact on our financial position or results of operations. Recently Issued Accounting Standards Not Yet Adopted In March 2023, the FASB issued ASU 2023-02 “Investments—Equity Method and Joint Ventures (Topic 323),” permitting an election to use the proportional amortization method to account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits, regardless of the tax credit program from which the income tax credits are received, provided that certain conditions are met. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense. This standard must be applied on a retrospective or modified retrospective basis, and is applicable for First Busey beginning on January 1, 2024. Early adoption is permitted. First Busey is currently evaluating the potential effect on the Company’s financial position and results of operations. In March 2023, the FASB issued ASU 2023-01 “Leases (Topic 842): Common Control Arrangements,” which requires amortization over the useful life of leasehold improvements (not the lease term) when the lease is between entities under common control, and any value of such leasehold improvements remaining at the end of the lease term is to be accounted for as a transfer between entities under common control. This standard may be adopted either prospectively, or retrospectively, and is effective for First Busey beginning January 1, 2024. Early adoption is permitted. First Busey is currently evaluating the potential effect on the Company’s financial position and results of operations. In June 2022, the FASB issued ASU 2022-03 “Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions,” which clarifies that contractual restrictions on the sale of equity securities are not considered in measuring the fair value of those equity securities, and further that contractual sale restrictions cannot be recognized and measured as a separate unit of account. This standard applies prospectively, and is effective for First Busey beginning January 1, 2024. Early adoption is permitted. First Busey is currently evaluating the potential effect on the Company’s financial position and results of operations.
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, 2023, through the filing date of these unaudited consolidated financial statements.

Derivative Financial Instruments - Interest Rate Swaps Not Designated as Hedges (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Interest Rate Swap
Derivative Asset
Notional Amount	$ 648,260	$ 576,911
Fair Value	32,482	40,055
Derivative Liability
Notional Amount	648,260	576,911
Fair Value	32,482	40,055
Interest rate swaps – pay floating, receive fixed
Derivative Asset
Notional Amount	161,772	48,728
Fair Value	2,256	370
Derivative Liability
Notional Amount	486,488	528,183
Fair Value	30,226	39,685
Interest rate swaps – pay fixed, receive floating
Derivative Asset
Notional Amount	486,488	528,183
Fair Value	30,226	39,685
Derivative Liability
Notional Amount	161,772	48,728
Fair Value	$ 2,256	$ 370

Leases - Schedule of lease costs and other lease information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Lease costs
Operating lease costs	$ 628	$ 617
Variable lease costs	5	128
Short-term lease costs	6	4
Total lease cost	639	749
Cash flows related to leases
Operating lease cash flows – Fixed payments	570	631
Operating lease cash flows – Liability reduction	479	585
Right of use assets obtained during the period in exchange for operating lease liabilities	$ 4	$ 55

Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

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, 2023			December 31, 2022
Lease balances
Right of use assets	$	12,291		$	12,829
Lease liabilities	12,515			12,995

Supplemental information
Year through which lease terms extend	2037			2037
Weighted average remaining lease term, in years	8.82 years			8.90 years
Weighted average discount rate	3.49		%	3.45		%

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


	Three Months Ended March 31,
		2023		2022
Lease costs
Operating lease costs		$	628	$	617
Variable lease costs		5		128
Short-term lease costs		6		4
Total lease cost1		$	639	$	749

Cash flows related to leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments		$	570	$	631
Operating lease cash flows – Liability reduction		479		585
Right of use assets obtained during the period in exchange for operating lease liabilities		4		55

___________________________________________

1.Lease costs are included in net occupancy and equipment expense in the 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, 2023
Rent commitments
Remainder of 2023	$	1,650
2024	1,933
2025	1,716
2026	1,441
2027	1,276
2028	1,255
Thereafter	5,477
Total undiscounted cash flows	14,748
Less: Amounts representing interest	2,233
Present value of net future minimum lease payments	$	12,515

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):


	Three Months Ended March 31,
		2023		2022
Rental income		$	191	$	230

Debt Securities - Gains and losses on debt securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Realized gains and losses on debt securities
Gross gains on debt securities	$ 10	$ 113
Gross (losses) on debt securities	(6)	(7)
Realized net gains (losses) on debt securities	$ 4	$ 106

Portfolio Loans - Schedule of activity on the allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Activity in the allowance for loan losses
ACL beginning balance	$ 91,608	$ 87,887
Provision for credit losses	953	(253)
Charged-off	(1,181)	(125)
Recoveries	347	704
ACL ending balance	91,727	88,213
Commercial
Activity in the allowance for loan losses
ACL beginning balance	23,860	23,855
Provision for credit losses	695	251
Charged-off	(400)	0
Recoveries	121	67
ACL ending balance	24,276	24,173
Commercial real estate
Activity in the allowance for loan losses
ACL beginning balance	38,299	38,249
Provision for credit losses	(3,359)	(1,218)
Charged-off	(539)	0
Recoveries	20	308
ACL ending balance	34,421	37,339
Real estate construction
Activity in the allowance for loan losses
ACL beginning balance	6,457	5,102
Provision for credit losses	(1,329)	510
Charged-off	0	0
Recoveries	31	93
ACL ending balance	5,159	5,705
Retail real estate
Activity in the allowance for loan losses
ACL beginning balance	18,193	17,589
Provision for credit losses	5,948	(170)
Charged-off	(5)	(16)
Recoveries	119	152
ACL ending balance	24,255	17,555
Retail other
Activity in the allowance for loan losses
ACL beginning balance	4,799	3,092
Provision for credit losses	(1,002)	374
Charged-off	(237)	(109)
Recoveries	56	84
ACL ending balance	$ 3,616	$ 3,441

Outstanding Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

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, 2023		December 31, 2022
Financial instruments whose contract amounts represent credit risk
Commitments to extend credit	$	2,066,438	$	1,991,769
Standby letters of credit	37,472		33,008
Total commitments	$	2,103,910	$	2,024,777

Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

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, 2023, follows:


	Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life
Options outstanding at December 31, 2022	26,106	$	23.53	3.88

Forfeited	(3,300)	23.53

Options outstanding at March 31, 2023	22,806	23.53		3.63

Options exercisable at March 31, 2023	22,806	23.53		3.63

2020 Equity Plan

Under the terms of the 2020 Equity Plan, the Company has granted RSU, PSU, and DSU awards. Upon vesting and delivery, shares are expected (though not required) to be issued from treasury. There were 200,774 shares available for issuance under the 2020 Equity Plan as of March 31, 2023.

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 year 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.

On March 22, 2023, under the terms of the 2020 Equity Plan, the Company granted 224,316 RSUs to members of management. The grant date fair value of the award totaled $4.6 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.

A summary of changes in the Company’s RSU awards for the three months ended March 31, 2023, is as follows:


	RSU Awards
	Shares	Weighted- Average Grant Date Fair Value
Nonvested at December 31, 2022	1,096,931	$	23.61
Granted	224,316	20.44
Dividend equivalents earned	11,509	22.85
Vested	(4,308)	25.79
Forfeited	(6,863)	20.88
Nonvested at March 31, 2023	1,321,585	23.07

PSU Awards

The Company grants PSUs, which are restricted stock units that are subject to certain performance criteria, 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.

On March 22, 2023, the Company granted a target of 104,643 PSUs with a maximum award of 167,429 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 stockholder return performance goal. The estimated grant date fair value of the award is $2.1 million and will be recognized in compensation expense over the performance period ending December 31, 2025. The Company expects to finalize the grant date fair value of these awards in the second quarter of 2023.

On March 22, 2023, the Company granted a target of 104,643 PSUs with a maximum award of 167,429 units. The actual number of units issued at the vesting date could range from 0% to 160% of the initial grant, depending on attaining an adjusted return on average tangible common equity performance goal. The grant date fair value of the award is $2.1 million and will be recognized in compensation expense over the performance period ending December 31, 2025. The actual amount of compensation expense recognized may vary, subject to achievement of the performance goal.

Further, on March 22, 2023, the Company granted a target of 15,045 PSUs with a maximum award of 30,090 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 $0.3 million and will be recognized in compensation expense over the performance period ending December 31, 2025, subject to achievement of the performance goal.

A summary of changes in the Company’s PSU awards for the three months ended March 31, 2023, is as follows:


	PSU Awards
	Shares1	Weighted- Average Grant Date Fair Value
Nonvested at December 31, 2022	285,351	$	25.40
Granted	224,331	20.44
Dividend equivalents earned	92	22.85
Vested	(92)	22.85
Forfeited	(36,345)	25.24

Nonvested at March 31, 2023	473,337	23.06

___________________________________________

1.Shares for PSU awards represent target shares at grant date.

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.

On March 22, 2023, the Company granted 41,548 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.

A summary of changes in the Company’s DSU awards for the three months ended March 31, 2023, is as follows:


	DSU Awards
	Shares	Weighted- Average Grant Date Fair Value
Nonvested at December 31, 2022	31,085	$	25.75
Granted	41,548	20.44
Dividend equivalents earned	1,507	22.86
Vested	(32,592)	25.61

Nonvested at March 31, 2023	41,548	20.44

Vested and outstanding at March 31, 2023	145,026	23.66

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 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 2021 ESPP initially reserved for issuance and purchase an aggregate of 600,000 shares of the Company’s common stock. The first offering under the 2021 ESPP began on July 1, 2021. There were 481,865 shares available for issuance under the 2021 ESPP as of March 31, 2023.

Stock-based Compensation Expense

The Company did not record any stock option compensation expense for the three months ended March 31, 2023, or 2022. As of March 31, 2023, the Company did not have any unrecognized stock option 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,
		2023		2022
Stock-based compensation expense

RSU awards		$	1,020	$	1,176
PSU awards1		360		412
DSU awards		196		226
2021 ESPP		93		95
Total stock-based compensation expense		$	1,669	$	1,909

___________________________________________

1.Expense for market-based PSU awards represents amounts based on target shares at grant date. Expense for performance-based PSU awards represents amounts based on target shares at grant date, adjusted for performance expectations as of the date indicated.

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


	As of
	March 31, 2023		December 31, 2022
Unamortized stock-based compensation
RSU awards	$	12,005	$	8,570
PSU awards1	8,632		4,279
DSU awards	829		175
Total unamortized stock-based compensation	$	21,466	$	13,024

Weighted average period over which expense is to be recognized	2.8 years		2.5 years

___________________________________________

1.Unamortized expense for market-based PSU awards represents amounts based on target shares at grant date. Unamortized expense for performance-based PSU awards represents amounts based on target shares at grant date, adjusted for performance expectations as of the date indicated.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	AOCI	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2021		55,434,910
Beginning balance, net of tax at Dec. 31, 2021	$ 1,319,112	$ 58	$ 1,316,984	$ 92,463	$ (23,758)	$ (66,635)
Increase (decrease) in shareholders' equity
Net income	28,439			28,439
OCI, net of tax	(113,847)				(113,847)
Repurchase of stock (in shares)		(188,614)
Repurchase of stock	(5,220)					(5,220)
Issuance of treasury stock for ESPP (in shares)		25,140
Issuance of treasury stock for ESPP	541		(106)			647
Net issuance of treasury stock for RSU/DSU vesting and related tax (in shares)		7,349
Net issuance of treasury stock for RSU/PSU/DSU vesting and related tax	(170)		(359)			189
Cash dividends on common stock	(12,739)			(12,739)
Stock dividend equivalents on RSUs	0		273	(273)
Stock-based compensation	1,909		1,909
Ending balance (in shares) at Mar. 31, 2022		55,278,785
Ending balance, net of tax at Mar. 31, 2022	1,218,025	$ 58	1,318,701	107,890	(137,605)	(71,019)
Beginning balance (in shares) at Dec. 31, 2022		55,279,124
Beginning balance, net of tax at Dec. 31, 2022	1,145,977	$ 58	1,320,980	168,769	(273,278)	(70,552)
Increase (decrease) in shareholders' equity
Net income	36,786			36,786
OCI, net of tax	27,494				27,494
Repurchase of stock (in shares)		(25,000)
Repurchase of stock	(534)					(534)
Issuance of treasury stock for ESPP (in shares)		30,360
Issuance of treasury stock for ESPP	525		(257)			782
Net issuance of treasury stock for RSU/DSU vesting and related tax (in shares)		8,977
Net issuance of treasury stock for RSU/PSU/DSU vesting and related tax	(100)		(331)			231
Net issuance of treasury stock for warrants exercised (in shares)		994
Net issuance of treasury stock for warrants exercised	9		(17)			26
Cash dividends on common stock	(13,268)			(13,268)
Stock dividend equivalents on RSUs	0		363	(363)
Stock-based compensation	1,669		1,669
Ending balance (in shares) at Mar. 31, 2023		55,294,455
Ending balance, net of tax at Mar. 31, 2023	$ 1,198,558	$ 58	$ 1,322,407	$ 191,924	$ (245,784)	$ (70,047)

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

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, 2023, follows:


	Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life
Options outstanding at December 31, 2022	26,106	$	23.53	3.88

Forfeited	(3,300)	23.53

Options outstanding at March 31, 2023	22,806	23.53		3.63

Options exercisable at March 31, 2023	22,806	23.53		3.63

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

A summary of changes in the Company’s RSU awards for the three months ended March 31, 2023, is as follows:


	RSU Awards
	Shares	Weighted- Average Grant Date Fair Value
Nonvested at December 31, 2022	1,096,931	$	23.61
Granted	224,316	20.44
Dividend equivalents earned	11,509	22.85
Vested	(4,308)	25.79
Forfeited	(6,863)	20.88
Nonvested at March 31, 2023	1,321,585	23.07

A summary of changes in the Company’s PSU awards for the three months ended March 31, 2023, is as follows:


	PSU Awards
	Shares1	Weighted- Average Grant Date Fair Value
Nonvested at December 31, 2022	285,351	$	25.40
Granted	224,331	20.44
Dividend equivalents earned	92	22.85
Vested	(92)	22.85
Forfeited	(36,345)	25.24

Nonvested at March 31, 2023	473,337	23.06

___________________________________________

1.Shares for PSU awards represent target shares at grant date.

A summary of changes in the Company’s DSU awards for the three months ended March 31, 2023, is as follows:


	DSU Awards
	Shares	Weighted- Average Grant Date Fair Value
Nonvested at December 31, 2022	31,085	$	25.75
Granted	41,548	20.44
Dividend equivalents earned	1,507	22.86
Vested	(32,592)	25.61

Nonvested at March 31, 2023	41,548	20.44

Vested and outstanding at March 31, 2023	145,026	23.66

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,
		2023		2022
Stock-based compensation expense

RSU awards		$	1,020	$	1,176
PSU awards1		360		412
DSU awards		196		226
2021 ESPP		93		95
Total stock-based compensation expense		$	1,669	$	1,909

___________________________________________

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, 2023		December 31, 2022
Unamortized stock-based compensation
RSU awards	$	12,005	$	8,570
PSU awards1	8,632		4,279
DSU awards	829		175
Total unamortized stock-based compensation	$	21,466	$	13,024

Weighted average period over which expense is to be recognized	2.8 years		2.5 years

___________________________________________

Borrowings - Schedule of distribution of securities sold under agreements to repurchase and short-term borrowings and weighted average interest rates (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
Securities sold under agreements to repurchase	$ 210,977	$ 229,806
Weighted average rate for securities sold under agreements to repurchase	2.44%	1.91%

Leases - Schedule of future undiscounted lease payments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Rent commitments
Remainder of 2023	$ 1,650
2024	1,933
2025	1,716
2026	1,441
2027	1,276
2028	1,255
Thereafter	5,477
Total undiscounted cash flows	14,748
Less: Amounts representing interest	2,233
Present value of net future minimum lease payments	$ 12,515	$ 12,995

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

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

The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2023, and December 31, 2022, 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, 2023
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	84,632	$	—	$	84,632
Obligations of U.S. government corporations and agencies	—		11,627		—		11,627
Obligations of states and political subdivisions	—		254,261		—		254,261
Asset-backed securities	—		469,147		—		469,147
Commercial mortgage-backed securities	—		108,827		—		108,827
Residential mortgage-backed securities	—		1,225,934		—		1,225,934
Corporate debt securities	—		229,122		—		229,122
Equity securities	—		10,915		—		10,915
Derivative assets	—		34,600		24		34,624
Derivative liabilities	—		58,547		—		58,547


	As of December 31, 2022
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	114,061	$	—	$	114,061
Obligations of U.S. government corporations and agencies	—		19,779		—		19,779
Obligations of states and political subdivisions	—		257,512		—		257,512
Asset-backed securities	—		469,875		—		469,875
Commercial mortgage-backed securities	—		108,394		—		108,394
Residential mortgage-backed securities	—		1,243,256		—		1,243,256
Corporate debt securities	—		248,516		—		248,516
Equity securities	—		11,535		—		11,535
Derivative assets	—		42,607		5		42,612
Derivative liabilities	—		72,462		—		72,462

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

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, 2023
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	5,806	$	5,806
OREO and other repossessed assets with subsequent impairment	—		—		639		639
Bank property held for sale with impairment	—		—		7,923		7,923


	As of December 31, 2022
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	5,345	$	5,345

Bank property held for sale with impairment	—		—		7,923		7,923

Schedule of quantitative information about Level 3 fair value measurements

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):

As of March 31, 2023

Fair Value

Valuation
Techniques

Unobservable
Input

Range
(Weighted Average)

Loans evaluated individually, net of related allowance

5,806

Appraisal of collateral

Appraisal adjustments

-20.8% to -100.0%

(-35.5)%

OREO and other repossessed assets with subsequent impairment

639

Appraisal of collateral

Appraisal adjustments

-13.6%

(-13.6)%

Bank property held for sale with impairment

7,923

Appraisal of collateral or real estate listing price

Appraisal adjustments

-0.7% to -70.1%

(-35.1)%

As of December 31, 2022

Fair Value

Valuation

Techniques

Unobservable

Input

Range

(Weighted Average)

Loans evaluated individually, net of related allowance

5,345

Appraisal of collateral

Appraisal adjustments

-22.7% to -100.0%

(-45.7)%

Bank property held for sale with impairment

7,923

Appraisal of collateral or real estate listing price

Appraisal adjustments

-0.7% to -70.1%

(-35.1)%

Schedule of estimated fair values of financial instruments

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, 2023				As of December 31, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Level 1 inputs:
Cash and cash equivalents	$	275,569	$	275,569	$	227,164	$	227,164
Level 2 inputs:
Debt securities held to maturity	907,559		780,653		918,312		785,295
Loans held for sale	2,714		2,756		1,253		1,276
Accrued interest receivable	42,854		42,854		43,372		43,372
Level 3 inputs:
Portfolio loans, net	7,692,081		7,431,580		7,634,094		7,320,422
Mortgage servicing rights	5,158		17,748		5,861		18,284
Other servicing rights	1,813		2,242		1,914		2,331

Financial liabilities
Level 2 inputs:
Time deposits	$	1,148,671	$	1,122,686	$	855,375	$	830,596
Securities sold under agreements to repurchase	210,977		210,977		229,806		229,806
Short-term borrowings	615,881		615,899		351,054		351,085
Long-term debt	27,000		27,025		30,000		30,052
Junior subordinated debt owed to unconsolidated trusts	71,855		56,640		71,810		59,111
Accrued interest payable	9,265		9,265		3,978		3,978
Level 3 inputs:

Subordinated notes, net of unamortized issuance costs	222,245		199,375		222,038		208,562

Regulatory Capital - Capital Amounts and Ratios (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Common Equity Tier 1 Capital to Risk Weighted Assets, Amount
Actual	$ 1,103,960	$ 1,081,686
Minimum Capital Requirement	407,938	406,980
Minimum To Be Well Capitalized	$ 589,243	$ 587,861
Common Equity Tier 1 Capital to Risk Weighted Assets, Ratio
Actual	12.18%	11.96%
Minimum Capital Requirement	4.50%	4.50%
Minimum To Be Well Capitalized	6.50%	6.50%
Tier 1 Capital to Risk Weighted Assets, Amount
Actual	$ 1,177,960	$ 1,155,686
Minimum Capital Requirement	543,917	542,640
Minimum To Be Well Capitalized	$ 725,222	$ 723,521
Tier 1 Capital to Risk Weighted Assets, Ratio
Actual	12.99%	12.78%
Minimum Capital Requirement	6.00%	6.00%
Minimum To Be Well Capitalized	8.00%	8.00%
Total Capital to Risk Weighted Assets, Amount
Actual	$ 1,486,577	$ 1,457,994
Minimum Capital Requirement	725,222	723,521
Minimum To Be Well Capitalized	$ 906,528	$ 904,401
Total Capital to Risk Weighted Assets, Ratio
Actual	16.40%	16.12%
Minimum Capital Requirement	8.00%	8.00%
Minimum To Be Well Capitalized	10.00%	10.00%
Leverage Ratio of Tier 1 Capital to Average Assets, Amount
Actual	$ 1,177,960	$ 1,081,686
Minimum Capital Requirement	$ 485,472	$ 489,124
Leverage Ratio of Tier 1 Capital to Average Assets, Ratio
Actual	9.71%	9.45%
Minimum Capital Requirement	4.00%	4.00%
Busey Bank
Common Equity Tier 1 Capital to Risk Weighted Assets, Amount
Actual	$ 1,325,556	$ 1,306,716
Minimum Capital Requirement	406,788	405,736
Minimum To Be Well Capitalized	$ 587,582	$ 586,063
Common Equity Tier 1 Capital to Risk Weighted Assets, Ratio
Actual	14.66%	14.49%
Minimum Capital Requirement	4.50%	4.50%
Minimum To Be Well Capitalized	6.50%	6.50%
Tier 1 Capital to Risk Weighted Assets, Amount
Actual	$ 1,325,556	$ 1,306,716
Minimum Capital Requirement	542,383	540,981
Minimum To Be Well Capitalized	$ 723,178	$ 721,308
Tier 1 Capital to Risk Weighted Assets, Ratio
Actual	14.66%	14.49%
Minimum Capital Requirement	6.00%	6.00%
Minimum To Be Well Capitalized	8.00%	8.00%
Total Capital to Risk Weighted Assets, Amount
Actual	$ 1,409,173	$ 1,384,024
Minimum Capital Requirement	723,178	721,308
Minimum To Be Well Capitalized	$ 903,972	$ 901,635
Total Capital to Risk Weighted Assets, Ratio
Actual	15.59%	15.35%
Minimum Capital Requirement	8.00%	8.00%
Minimum To Be Well Capitalized	10.00%	10.00%
Leverage Ratio of Tier 1 Capital to Average Assets, Amount
Actual	$ 1,325,556	$ 1,306,716
Minimum Capital Requirement	484,256	487,541
Minimum To Be Well Capitalized	$ 605,320	$ 609,426
Leverage Ratio of Tier 1 Capital to Average Assets, Ratio
Actual	10.95%	10.72%
Minimum Capital Requirement	4.00%	4.00%
Minimum To Be Well Capitalized	5.00%	5.00%

Stock-Based Compensation - Summary of changes in the Company's stock option awards (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Shares
Outstanding at beginning of year (in shares)	26,106
Forfeited (in shares)	(3,300)
Outstanding at end of year (in shares)	22,806	26,106
Exercisable at end of year (in shares)	22,806
Weighted- Average Exercise Price
Outstanding at beginning of year (in dollars per share)	$ 23.53
Forfeited (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
Weighted- Average Remaining Contractual Life
Weighted-average remaining contractual life, options outstanding	3 years 7 months 17 days	3 years 10 months 17 days
Weighted-average remaining contractual life, exercisable at end of year	3 years 7 months 17 days

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2023

Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Alternative [Abstract]

Accumulated other comprehensive income (loss)

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


	Three Months Ended March 31,
	2023						2022
	Before Tax		Tax Effect		Net of Tax		Before Tax		Tax Effect		Net of Tax
Unrealized/Unrecognized gains (losses) on debt securities
Balance at beginning of period	$	(352,878)	$	100,585	$	(252,293)	$	(32,272)	$	9,199	$	(23,073)
Unrealized holding gains (losses) on debt securities available for sale, net	30,693		(8,749)		21,944		(104,282)		29,726		(74,556)
Unrecognized losses on debt securities transferred to held to maturity from available for sale	—		—		—		(48,456)		13,812		(34,644)
Amounts reclassified from AOCI, net	(4)		1		(3)		(106)		30		(76)
Amortization of unrecognized losses on securities transferred to held to maturity	1,693		(483)		1,210		883		(252)		631
Balance at end of period	(320,496)		91,354		(229,142)		(184,233)		52,515		(131,718)

Unrealized gains (losses) on cash flow hedges
Balance at beginning of period	(29,350)		8,365		(20,985)		(958)		273		(685)
Unrealized holding gains (losses) on cash flow hedges, net	4,264		(1,214)		3,050		(6,776)		1,931		(4,845)
Amounts reclassified from AOCI, net	1,809		(516)		1,293		(500)		143		(357)
Balance at end of period	(23,277)		6,635		(16,642)		(8,234)		2,347		(5,887)

Total AOCI	$	(343,773)	$	97,989	$	(245,784)	$	(192,467)	$	54,862	$	(137,605)

Significant Accounting Policies	3 Months Ended
Significant Accounting Policies	Mar. 31, 2023
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies Nature of Operations First Busey Corporation, a Nevada corporation organized in 1980, is a $12.3 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. •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 comprehensive and innovative payment technology solutions including online, mobile, and voice-recognition bill payments; money management and credit card networks; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments. FirsTech also provides additional tools to help clients with billing, reconciliation, bill reminders, and treasury services. •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. For additional information about the Company's operating segments, see “N ote 14 . Operating Segments and Related Information.” 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 2022 Annual Report. These interim unaudited consolidated financial statements serve to update our 2022 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. Impact of Recently Adopted Accounting Standards In March 2022, the FASB issued ASU 2022-02 “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures,” which 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 310-20-35-9 through 35-11 “Receivables—Nonrefundable Fees and Other Costs—Subsequent Measurement—Loan Refinancing or Restructuring” 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 became effective for First Busey beginning January 1, 2023. Adoption of this standard did not have a material impact on our financial position or results of operations. In March 2022, the FASB issued ASU 2022-01 “Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method,” which 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 became effective for First Busey beginning January 1, 2023. Adoption of this standard did not have a material impact on our financial position or results of operations. ASU 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” requires measurement and recognition in accordance with ASC Topic 606 “Revenue from Contracts with Customers” for contract assets and contract liabilities acquired in a business combination. This update became effective for First Busey beginning January 1, 2023. This standard applies prospectively to all business combinations that occur on or after the date it is adopted. Adoption of this standard did not have an impact on our financial position or results of operations. Recently Issued Accounting Standards Not Yet Adopted In March 2023, the FASB issued ASU 2023-02 “Investments—Equity Method and Joint Ventures (Topic 323),” permitting an election to use the proportional amortization method to account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits, regardless of the tax credit program from which the income tax credits are received, provided that certain conditions are met. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense. This standard must be applied on a retrospective or modified retrospective basis, and is applicable for First Busey beginning on January 1, 2024. Early adoption is permitted. First Busey is currently evaluating the potential effect on the Company’s financial position and results of operations. In March 2023, the FASB issued ASU 2023-01 “Leases (Topic 842): Common Control Arrangements,” which requires amortization over the useful life of leasehold improvements (not the lease term) when the lease is between entities under common control, and any value of such leasehold improvements remaining at the end of the lease term is to be accounted for as a transfer between entities under common control. This standard may be adopted either prospectively, or retrospectively, and is effective for First Busey beginning January 1, 2024. Early adoption is permitted. First Busey is currently evaluating the potential effect on the Company’s financial position and results of operations. In June 2022, the FASB issued ASU 2022-03 “Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions,” which clarifies that contractual restrictions on the sale of equity securities are not considered in measuring the fair value of those equity securities, and further that contractual sale restrictions cannot be recognized and measured as a separate unit of account. This standard applies prospectively, and is effective for First Busey beginning January 1, 2024. Early adoption is permitted. First Busey is currently evaluating the potential effect on the Company’s financial position and results of operations. 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, 2023, through the filing date of these unaudited consolidated financial statements.

Derivative Financial Instruments - Net Gains (Losses) Relating to Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Mortgage revenue	Mortgage revenue
Interest rate lock commitments \| Designated as Hedging Instrument
Derivative [Line Items]
Net change in fair value of interest rate swaps	$ 37	$ 15
Forward sales commitments \| Designated as Hedging Instrument
Derivative [Line Items]
Net change in fair value of interest rate swaps	(54)	106
Net gains (losses) \| Designated as Hedging Instrument
Derivative [Line Items]
Net change in fair value of interest rate swaps	$ (17)	$ 121

Portfolio Loans - Risk grades of portfolio loans, further sorted by origination year (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	$ 550,874	$ 2,288,440
2023, charge-off	0
2022 / 2021	2,086,300	1,926,481
2022, charge-off	36
2021 / 2020	1,850,463	962,405
2021, charge-off	502
2020 / 2019	925,814	558,294
2020, charge-off	1
2019 / 2018	522,951	323,245
2019, charge-off	0
Prior	858,147	644,140
Prior, charge-off	642
Revolving Loans	989,259	1,022,697
Revolving Loans, charge-off	0
Total	7,783,808	7,725,702
Total, gross write-offs	1,181
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total	6,995,343	6,964,678
Watch
Financing Receivable, Credit Quality Indicator [Line Items]
Total	599,341	563,897
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total	86,525	91,405
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total	87,885	90,655
Substandard Non-accrual
Financing Receivable, Credit Quality Indicator [Line Items]
Total	14,714	15,067
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	231,922	544,993
2023, charge-off	0
2022 / 2021	373,443	320,898
2022, charge-off	0
2021 / 2020	291,932	142,171
2021, charge-off	400
2020 / 2019	135,332	67,027
2020, charge-off	0
2019 / 2018	59,135	55,404
2019, charge-off	0
Prior	176,737	159,475
Prior, charge-off	0
Revolving Loans	668,657	684,186
Revolving Loans, charge-off	0
Total	1,937,158	1,974,154
Total, gross write-offs	400
Commercial \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	193,301	479,893
2022 / 2021	326,112	266,122
2021 / 2020	237,528	136,445
2020 / 2019	130,503	52,046
2019 / 2018	45,737	50,764
Prior	152,200	135,000
Revolving Loans	539,275	548,225
Total	1,624,656	1,668,495
Commercial \| Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	19,141	54,195
2022 / 2021	44,289	49,382
2021 / 2020	47,474	3,288
2020 / 2019	2,758	7,201
2019 / 2018	6,384	1,258
Prior	5,162	2,160
Revolving Loans	83,405	84,274
Total	208,613	201,758
Commercial \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	0	1,958
2022 / 2021	1,682	937
2021 / 2020	2,811	1,642
2020 / 2019	1,340	974
2019 / 2018	652	1,000
Prior	17,343	17,024
Revolving Loans	18,999	23,005
Total	42,827	46,540
Commercial \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	19,386	8,926
2022 / 2021	1,360	1,165
2021 / 2020	1,143	570
2020 / 2019	526	6,671
2019 / 2018	6,229	2,382
Prior	2,030	5,191
Revolving Loans	24,978	26,282
Total	55,652	51,187
Commercial \| Substandard Non-accrual
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	94	21
2022 / 2021	0	3,292
2021 / 2020	2,976	226
2020 / 2019	205	135
2019 / 2018	133	0
Prior	2	100
Revolving Loans	2,000	2,400
Total	5,410	6,174
Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	181,363	978,317
2023, charge-off	0
2022 / 2021	962,101	898,122
2022, charge-off	0
2021 / 2020	894,617	558,607
2021, charge-off	0
2020 / 2019	533,230	397,516
2020, charge-off	0
2019 / 2018	374,837	201,813
2019, charge-off	0
Prior	360,789	209,715
Prior, charge-off	539
Revolving Loans	17,599	17,783
Revolving Loans, charge-off	0
Total	3,324,536	3,261,873
Total, gross write-offs	539
Commercial real estate \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	139,599	883,688
2022 / 2021	882,834	819,133
2021 / 2020	810,278	478,452
2020 / 2019	457,122	297,525
2019 / 2018	279,737	161,409
Prior	306,763	198,419
Revolving Loans	12,637	13,083
Total	2,888,970	2,851,709
Commercial real estate \| Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	29,344	77,346
2022 / 2021	65,687	56,113
2021 / 2020	75,032	64,282
2020 / 2019	57,391	96,664
2019 / 2018	89,469	21,592
Prior	40,302	5,758
Revolving Loans	4,962	4,700
Total	362,187	326,455
Commercial real estate \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	816	11,943
2022 / 2021	7,001	5,389
2021 / 2020	4,365	12,386
2020 / 2019	15,293	1,420
2019 / 2018	3,743	6,917
Prior	11,977	5,471
Revolving Loans	0	0
Total	43,195	43,526
Commercial real estate \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	11,604	5,340
2022 / 2021	5,975	13,528
2021 / 2020	1,095	3,454
2020 / 2019	3,394	1,907
2019 / 2018	1,888	10,248
Prior	667	62
Revolving Loans	0	0
Total	24,623	34,539
Commercial real estate \| Substandard Non-accrual
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	0	0
2022 / 2021	604	3,959
2021 / 2020	3,847	33
2020 / 2019	30	0
2019 / 2018	0	1,647
Prior	1,080	5
Revolving Loans	0	0
Total	5,561	5,644
Real estate construction
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	38,463	230,042
2023, charge-off	0
2022 / 2021	229,378	203,743
2022, charge-off	0
2021 / 2020	188,599	71,184
2021, charge-off	0
2020 / 2019	72,844	1,539
2020, charge-off	0
2019 / 2018	1,493	1,901
2019, charge-off	0
Prior	3,510	3,149
Prior, charge-off	0
Revolving Loans	19,722	18,911
Revolving Loans, charge-off	0
Total	554,009	530,469
Total, gross write-offs	0
Real estate construction \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	38,451	219,112
2022 / 2021	219,520	191,724
2021 / 2020	179,369	68,015
2020 / 2019	69,767	1,490
2019 / 2018	1,447	1,901
Prior	3,510	1,751
Revolving Loans	19,722	18,911
Total	531,786	502,904
Real estate construction \| Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	12	8,530
2022 / 2021	4,454	12,019
2021 / 2020	9,230	3,169
2020 / 2019	3,077	48
2019 / 2018	46	0
Prior	0	1,398
Revolving Loans	0	0
Total	16,819	25,164
Real estate construction \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022		0
2022 / 2021		0
2021 / 2020		0
2020 / 2019		1
2019 / 2018		0
Prior		0
Revolving Loans		0
Total	0	1
Real estate construction \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	0	2,400
2022 / 2021	5,404	0
2021 / 2020	0	0
2020 / 2019	0	0
2019 / 2018	0	0
Prior	0	0
Revolving Loans	0	0
Total	5,404	2,400
Real estate construction \| Substandard Non-accrual
Financing Receivable, Credit Quality Indicator [Line Items]
Total	0	0
Retail real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	63,491	400,507
2023, charge-off	0
2022 / 2021	397,515	460,072
2022, charge-off	0
2021 / 2020	443,066	177,299
2021, charge-off	0
2020 / 2019	173,130	79,126
2020, charge-off	0
2019 / 2018	76,905	58,481
2019, charge-off	0
Prior	312,833	270,808
Prior, charge-off	5
Revolving Loans	200,597	210,789
Revolving Loans, charge-off	0
Total	1,667,537	1,657,082
Total, gross write-offs	5
Retail real estate \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	62,890	396,547
2022 / 2021	394,383	456,158
2021 / 2020	439,515	175,148
2020 / 2019	171,450	77,569
2019 / 2018	75,296	56,887
Prior	307,826	267,387
Revolving Loans	198,047	209,903
Total	1,649,407	1,639,599
Retail real estate \| Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	546	2,928
2022 / 2021	2,989	2,991
2021 / 2020	2,952	1,846
2020 / 2019	1,332	1,444
2019 / 2018	1,423	1,063
Prior	974	27
Revolving Loans	1,506	221
Total	11,722	10,520
Retail real estate \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	55	945
2022 / 2021	58	0
2021 / 2020	0	0
2020 / 2019	0	0
2019 / 2018	0	0
Prior	390	393
Revolving Loans	0	0
Total	503	1,338
Retail real estate \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	0	77
2022 / 2021	75	732
2021 / 2020	361	198
2020 / 2019	189	81
2019 / 2018	82	141
Prior	1,256	1,293
Revolving Loans	243	7
Total	2,206	2,529
Retail real estate \| Substandard Non-accrual
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	0	10
2022 / 2021	10	191
2021 / 2020	238	107
2020 / 2019	159	32
2019 / 2018	104	390
Prior	2,387	1,708
Revolving Loans	801	658
Total	3,699	3,096
Retail other
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	35,635	134,581
2023, charge-off	0
2022 / 2021	123,863	43,646
2022, charge-off	36
2021 / 2020	32,249	13,144
2021, charge-off	102
2020 / 2019	11,278	13,086
2020, charge-off	1
2019 / 2018	10,581	5,646
2019, charge-off	0
Prior	4,278	993
Prior, charge-off	98
Revolving Loans	82,684	91,028
Revolving Loans, charge-off	0
Total	300,568	302,124
Total, gross write-offs	237
Retail other \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	35,635	134,567
2022 / 2021	123,857	43,512
2021 / 2020	32,214	13,141
2020 / 2019	11,275	13,086
2019 / 2018	10,581	5,646
Prior	4,278	991
Revolving Loans	82,684	91,028
Total	300,524	301,971
Retail other \| Watch
Financing Receivable, Credit Quality Indicator [Line Items]
Total	0	0
Retail other \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total	0	0
Retail other \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total	0	0
Retail other \| Substandard Non-accrual
Financing Receivable, Credit Quality Indicator [Line Items]
2023 / 2022	0	14
2022 / 2021	6	134
2021 / 2020	35	3
2020 / 2019	3	0
2019 / 2018	0	0
Prior	0	2
Revolving Loans	0	0
Total	$ 44	$ 153

Portfolio Loans - Schedule of details of impaired loans, segregated by category (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Troubled Debt Restructuring [Line Items]
Unpaid Principal Balance	$ 18,431	$ 20,608
Recorded investment with no allowance	3,930	5,801
Recorded investment with allowance	9,000	9,846
Total recorded investment	12,930	15,647
Related Allowance	3,194	4,501
Average Recorded Investment	14,061	14,551
Total commercial loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Unpaid Principal Balance	17,182	17,875
Recorded investment with no allowance	2,850	3,237
Recorded investment with allowance	8,975	9,821
Total recorded investment	11,825	13,058
Related Allowance	3,169	4,476
Average Recorded Investment	12,003	12,240
Commercial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Unpaid Principal Balance	8,761	9,589
Recorded investment with no allowance	564	656
Recorded investment with allowance	5,181	5,918
Total recorded investment	5,745	6,574
Related Allowance	1,825	2,476
Average Recorded Investment	6,512	6,761
Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Unpaid Principal Balance	8,421	8,039
Recorded investment with no allowance	2,286	2,334
Recorded investment with allowance	3,794	3,903
Total recorded investment	6,080	6,237
Related Allowance	1,344	2,000
Average Recorded Investment	5,285	5,219
Real estate construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Unpaid Principal Balance	0	247
Recorded investment with no allowance	0	247
Recorded investment with allowance	0	0
Total recorded investment	0	247
Related Allowance	0	0
Average Recorded Investment	206	260
Total retail loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Unpaid Principal Balance	1,249	2,733
Recorded investment with no allowance	1,080	2,564
Recorded investment with allowance	25	25
Total recorded investment	1,105	2,589
Related Allowance	25	25
Average Recorded Investment	2,058	2,311
Retail real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Unpaid Principal Balance	1,249	2,733
Recorded investment with no allowance	1,080	2,564
Recorded investment with allowance	25	25
Total recorded investment	1,105	2,589
Related Allowance	25	25
Average Recorded Investment	$ 2,058	$ 2,311

Portfolio Loans - Narrative (Details) $ in Thousands	3 Months Ended		12 Months Ended
Portfolio Loans - Narrative (Details) $ in Thousands	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($) contract	Dec. 31, 2022 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net deferred loan origination (fees) costs	$ 13,700		$ 14,000
Net accretable purchase accounting adjustments	(5,500)		(5,900)
Gross interest income that would have been recorded if impaired loans had been current	400	$ 200
Amount of interest collected and recognized on a cash basis		$ 400
TDRs subsequently classified as non-performing and had payment defaults \| contract		0
Collateral dependent loans secured by real estate or business assets	13,300		14,000
Loans in the process of foreclosure	1,100
Performing Financial Instruments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructuring			3,000
Nonperforming Financial Instruments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructuring			500
Retail real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans purchased	0	$ 0
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans designated as TDRs \| contract		0
Maximum \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Limit where loans are processed through an expedited underwriting process	1,000
Watch \| Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Limit above which loans are annually reviewed	1,000
Special Mention \| Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Limit above which loans are annually reviewed	350
PPP Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost of the loans outstanding	$ 800		$ 800

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 36,786	$ 28,439
Unrealized/Unrecognized gains (losses) on debt securities:
Net unrealized holding gains (losses) on debt securities available for sale, net of taxes of $(8,749), and $29,726, respectively	21,944	(74,556)
Net unrealized gains (losses) on debt securities transferred to held to maturity from available for sale, net of taxes of $0, and $13,812, respectively	0	(34,644)
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, net of taxes of $1, and $30, respectively	(3)	(76)
Amortization of unrecognized losses on securities transferred to held to maturity, net of taxes of $(483), and $(252), respectively	1,210	631
Net change in unrealized/unrecognized gains (losses) on debt securities	23,151	(108,645)
Unrealized gains (losses) on cash flow hedges:
Net unrealized holding gains (losses) on cash flow hedges, net of taxes of $(1,214), and $1,931, respectively	3,050	(4,845)
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, net of taxes of $(516), and $143, respectively	1,293	(357)
Net change in unrealized gains (losses) on cash flow hedges	4,343	(5,202)
Net change in AOCI	27,494	(113,847)
Total comprehensive income (loss)	$ 64,280	$ (85,408)

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2023

Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Alternative [Abstract]

Accumulated Other Comprehensive Income (Loss).

Accumulated Other Comprehensive Income (Loss)

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


	Three Months Ended March 31,
	2023						2022
	Before Tax		Tax Effect		Net of Tax		Before Tax		Tax Effect		Net of Tax
Unrealized/Unrecognized gains (losses) on debt securities
Balance at beginning of period	$	(352,878)	$	100,585	$	(252,293)	$	(32,272)	$	9,199	$	(23,073)
Unrealized holding gains (losses) on debt securities available for sale, net	30,693		(8,749)		21,944		(104,282)		29,726		(74,556)
Unrecognized losses on debt securities transferred to held to maturity from available for sale	—		—		—		(48,456)		13,812		(34,644)
Amounts reclassified from AOCI, net	(4)		1		(3)		(106)		30		(76)
Amortization of unrecognized losses on securities transferred to held to maturity	1,693		(483)		1,210		883		(252)		631
Balance at end of period	(320,496)		91,354		(229,142)		(184,233)		52,515		(131,718)

Unrealized gains (losses) on cash flow hedges
Balance at beginning of period	(29,350)		8,365		(20,985)		(958)		273		(685)
Unrealized holding gains (losses) on cash flow hedges, net	4,264		(1,214)		3,050		(6,776)		1,931		(4,845)
Amounts reclassified from AOCI, net	1,809		(516)		1,293		(500)		143		(357)
Balance at end of period	(23,277)		6,635		(16,642)		(8,234)		2,347		(5,887)

Total AOCI	$	(343,773)	$	97,989	$	(245,784)	$	(192,467)	$	54,862	$	(137,605)

Deposits

3 Months Ended

Mar. 31, 2023

Deposits [Abstract]

Deposits

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


	As of
	March 31, 2023		December 31, 2022
Deposits
Noninterest-bearing demand deposits	$	3,173,783	$	3,393,666
Interest-bearing transaction deposits	2,648,116		2,857,818
Saving deposits and money market deposits	2,830,599		2,964,421
Time deposits	1,148,671		855,375
Total deposits	$	9,801,169	$	10,071,280

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


	As of
	March 31, 2023		December 31, 2022
Brokered savings deposits and money market deposits	$	6,005	$	1,303
Brokered time deposits	278		275
Aggregate amount of time deposits with a minimum denomination of $100,000	630,529		416,445
Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000	200,898		120,377

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


	As of March 31, 2023
Time deposits by schedule of maturities
Remainder of 2023	$	474,277
2024	596,731
2025	42,344
2026	17,183
2027	13,746
2028	3,851
Thereafter	539
Time deposits	$	1,148,671

Debt Securities (Tables)

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of amortized cost, unrealized gains and losses and fair values of securities classified available for sale and 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, 2023
	Amortized Cost		Unrealized				Fair Value
			Gross Gains		Gross Losses
Debt securities available for sale
U.S. Treasury securities	$	87,182	$	—	$	(2,550)	$	84,632
Obligations of U.S. government corporations and agencies	11,855		3		(231)		11,627
Obligations of states and political subdivisions	274,858		193		(20,790)		254,261
Asset-backed securities	488,234		—		(19,087)		469,147
Commercial mortgage-backed securities	123,720		—		(14,893)		108,827
Residential mortgage-backed securities	1,426,529		4		(200,599)		1,225,934
Corporate debt securities	251,543		12		(22,433)		229,122
Total debt securities available for sale	$	2,663,921	$	212	$	(280,583)	$	2,383,550



	Amortized Cost		Unrecognized				Fair Value
			Gross Gains		Gross Losses
Debt securities held to maturity
Commercial mortgage-backed securities	$	470,138	$	—	$	(63,198)	$	406,940
Residential mortgage-backed securities	437,421		—		(63,708)		373,713
Total debt securities held to maturity	$	907,559	$	—	$	(126,906)	$	780,653


	As of December 31, 2022
	Amortized Cost		Unrealized				Fair Value
			Gross Gains		Gross Losses
Debt securities available for sale
U.S. Treasury securities	$	117,805	$	—	$	(3,744)	$	114,061
Obligations of U.S. government corporations and agencies	20,097		3		(321)		19,779
Obligations of states and political subdivisions	283,481		106		(26,075)		257,512
Asset-backed securities	489,558		—		(19,683)		469,875
Commercial mortgage-backed securities	124,423		—		(16,029)		108,394
Residential mortgage-backed securities	1,463,971		2		(220,717)		1,243,256
Corporate debt securities	273,118		33		(24,635)		248,516
Total debt securities available for sale	$	2,772,453	$	144	$	(311,204)	$	2,461,393



	Amortized Cost		Unrecognized				Fair Value
			Gross Gains		Gross Losses
Debt securities held to maturity
Commercial mortgage-backed securities	$	474,820	$	—	$	(63,738)	$	411,082
Residential mortgage-backed securities	443,492		—		(69,279)		374,213
Total debt securities held to maturity	$	918,312	$	—	$	(133,017)	$	785,295

Maturities of debt securities

All mortgage-backed securities were issued by U.S. government corporations and agencies (dollars in thousands):


	As of March 31, 2023
	Amortized Cost		Fair Value
Debt securities available for sale
Due in one year or less	$	105,794	$	103,746
Due after one year through five years	363,407		340,503
Due after five years through ten years	369,029		337,071
Due after ten years	1,825,691		1,602,230
Debt securities available for sale	$	2,663,921	$	2,383,550




Debt securities held to maturity

Due after one year through five years	$	43,594	$	41,147
Due after five years through ten years	63,632		57,859
Due after ten years	800,333		681,647
Debt securities held to maturity	$	907,559	$	780,653

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,
		2023		2022
Realized gains and losses on debt securities
Gross gains on debt securities		$	10	$	113
Gross (losses) on debt securities		(6)		(7)
Realized net gains (losses) on debt securities		$	4	$	106

Debt securities in an unrealized loss position

The following information pertains to debt securities with gross unrealized or unrecognized 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, 2023
	Less than 12 months				12 months or more				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Debt securities available for sale
U.S. Treasury securities	$	964	$	(32)	$	83,668	$	(2,518)	$	84,632	$	(2,550)
Obligations of U.S. government corporations and agencies	11,262		(223)		196		(8)		11,458		(231)
Obligations of states and political subdivisions	80,541		(755)		133,343		(20,035)		213,884		(20,790)
Asset-backed securities	16,954		(346)		452,193		(18,741)		469,147		(19,087)
Commercial mortgage-backed securities	7,634		(290)		101,193		(14,603)		108,827		(14,893)
Residential mortgage-backed securities	103,167		(5,778)		1,122,195		(194,821)		1,225,362		(200,599)
Corporate debt securities	17,362		(1,213)		209,280		(21,220)		226,642		(22,433)
Debt securities available for sale with gross unrealized losses	$	237,884	$	(8,637)	$	2,102,068	$	(271,946)	$	2,339,952	$	(280,583)



	12 months or more			Total
		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
Debt securities held to maturity
Commercial mortgage-backed securities		$	406,940	$	(63,198)	$	406,940	$	(63,198)
Residential mortgage-backed securities		373,713		(63,708)		373,713		(63,708)
Debt securities held to maturity with gross unrecognized losses		$	780,653	$	(126,906)	$	780,653	$	(126,906)


	As of December 31, 2022
	Less than 12 months				12 months or more				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Debt securities available for sale
U.S. Treasury securities1	$	74	$	—	$	113,987	$	(3,744)	$	114,061	$	(3,744)
Obligations of U.S. government corporations and agencies	19,603		(321)		—		—		19,603		(321)
Obligations of states and political subdivisions	166,147		(10,059)		75,217		(16,016)		241,364		(26,075)
Asset-backed securities	390,164		(15,648)		79,711		(4,035)		469,875		(19,683)
Commercial mortgage-backed securities	89,428		(12,623)		18,966		(3,406)		108,394		(16,029)
Residential mortgage-backed securities	366,221		(38,111)		876,668		(182,606)		1,242,889		(220,717)
Corporate debt securities	39,037		(5,079)		204,310		(19,556)		243,347		(24,635)
Debt securities available for sale with gross unrealized losses	$	1,070,674	$	(81,841)	$	1,368,859	$	(229,363)	$	2,439,533	$	(311,204)



	Less than 12 months				12 months or more				Total
	Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
Debt securities held to maturity
Commercial mortgage-backed securities	$	58,065	$	(8,009)	$	353,017	$	(55,729)	$	411,082	$	(63,738)
Residential mortgage-backed securities	—		—		374,213		(69,279)		374,213		(69,279)
Debt securities held to maturity with gross unrecognized losses	$	58,065	$	(8,009)	$	727,230	$	(125,008)	$	785,295	$	(133,017)

___________________________________________

1.Unrealized losses for U.S. Treasury securities that have been in a continuous unrealized loss position for less than 12 months were insignificant, rounding to zero thousand.

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


	As of March 31, 2023
	Available for Sale			Held to Maturity			Total
Debt securities with gross unrealized or unrecognized losses, fair value	$	2,339,952		$	780,653		$	3,120,605
Gross unrealized or unrecognized losses on debt securities	280,583			126,906			407,489
Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses	12.0		%	16.3		%	13.1		%

Count of debt securities	1,058			55			1,113
Count of debt securities in an unrealized or unrecognized loss position	947			55			1,002


	As of December 31, 2022
	Available for Sale			Held to Maturity			Total
Debt securities with gross unrealized or unrecognized losses, fair value	$	2,439,533		$	785,295		$	3,224,828
Gross unrealized or unrecognized losses on debt securities	311,204			133,017			444,221
Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses	12.8		%	16.9		%	13.8		%

Count of debt securities	1,091			55			1,146
Count of debt securities in an unrealized or unrecognized loss position	1,032			55			1,087

Derivative Financial Instruments - Mortgage Banking Derivatives (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Derivatives with positive fair value
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Derivatives with negative fair value
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Interest rate lock commitments
Derivatives with positive fair value
Notional Amount	$ 2,955	$ 1,517
Fair value recorded in other assets	53	16
Derivatives with negative fair value
Notional Amount	36	83
Fair value recorded in other liabilities	0	1
Forward sales commitments
Derivatives with positive fair value
Notional Amount	697	83
Fair value recorded in other assets	3	1
Derivatives with negative fair value
Notional Amount	4,983	2,757
Fair value recorded in other liabilities	95	39
Mortgage banking derivatives recorded in other assets \| Designated as Hedging Instrument
Derivatives with positive fair value
Notional Amount	3,652	1,600
Fair value recorded in other assets	56	17
Derivatives with negative fair value
Notional Amount	5,019	2,840
Fair value recorded in other liabilities	$ 95	$ 40

Derivative Financial Instruments - Risk Participation Agreement (Details) - Risk Participation Agreement $ in Thousands	Mar. 31, 2023 USD ($) agreement	Dec. 31, 2022 USD ($) agreement
Derivative [Line Items]
Number of risk participation agreements \| agreement	3	2
Notional amount	$ 34,320	$ 18,899
Fair value	$ 24	$ 5

Derivative Financial Instruments - Summary of the interest-rate swaps designated as cash flow hedges (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Interest Rate Swap
Balances carried in AOCI
Unrealized gains (losses) on cash flow hedges, net of tax	$ 0	$ 0
Cash Flow Hedging \| Interest Rate Swap
Balances carried in AOCI
Unrealized gains (losses) on cash flow hedges, net of tax	(16,642)		$ (20,985)
Cash Flow Hedging \| Interest Rate Swap \| Other assets
Gross aggregate fair value of the swaps
Gross aggregate fair value of swap assets	2,062		2,535
Cash Flow Hedging \| Interest Rate Swap \| Other liabilities
Gross aggregate fair value of the swaps
Gross aggregate fair value of swap liabilities	25,970		32,367
Cash Flow Hedging \| Debt Swap
Derivative [Line Items]
Notional amount	$ 50,000		$ 50,000
Weighted average fixed pay/receive rates	1.79%		1.79%
Weighted average variable interest rates	4.87%		4.77%
Weighted average maturity, in years	1 year 5 months 15 days		1 year 8 months 15 days
Cash Flow Hedging \| Loan Swap
Derivative [Line Items]
Notional amount	$ 300,000		$ 300,000
Weighted average fixed pay/receive rates	4.81%		4.81%
Weighted average variable interest rates	7.85%		7.32%
Weighted average maturity, in years	5 years 10 months 6 days		6 years 1 month 6 days

Portfolio Loans - Schedule of financial instruments owned and pledged as collateral (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial Instruments Owned and Pledged as Collateral [Line Items]
Portfolio loans, net	$ 7,692,081	$ 7,634,094
Asset Pledged as Collateral
Financial Instruments Owned and Pledged as Collateral [Line Items]
Portfolio loans, net	5,891,323	5,900,166
FHLB
Financial Instruments Owned and Pledged as Collateral [Line Items]
Portfolio loans, net	5,065,913	5,095,448
Federal Reserve Bank
Financial Instruments Owned and Pledged as Collateral [Line Items]
Portfolio loans, net	$ 825,410	$ 804,718

Operating Segments and Related Information - Summary of information relating to operating segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Goodwill	$ 317,873		$ 317,873
Total Assets	12,344,555		12,336,677
Net interest income	85,857	$ 70,056
Noninterest income	31,848	35,772
Noninterest expense	70,403	70,376
Income before income taxes	46,349	35,705
Net income	36,786	28,439
Operating segment \| Banking
Segment Reporting Information [Line Items]
Goodwill	294,773		294,773
Total Assets	12,206,562		12,199,960
Net interest income	89,890	73,832
Noninterest income	12,421	15,286
Noninterest expense	54,651	55,567
Income before income taxes	46,707	33,804
Net income	36,835	26,451
Operating segment \| FirsTech
Segment Reporting Information [Line Items]
Goodwill	8,992		8,992
Total Assets	47,750		48,715
Net interest income	13	18
Noninterest income	5,674	5,419
Noninterest expense	5,739	4,683
Income before income taxes	(52)	754
Net income	(38)	550
Operating segment \| Wealth Management
Segment Reporting Information [Line Items]
Goodwill	14,108		14,108
Total Assets	87,878		84,082
Noninterest income	14,926	15,776
Noninterest expense	8,534	8,265
Income before income taxes	6,392	7,511
Net income	4,858	5,840
Intersegment Eliminations
Segment Reporting Information [Line Items]
Goodwill	0		0
Total Assets	2,365		$ 3,920
Net interest income	(4,046)	(3,794)
Noninterest income	(1,173)	(709)
Noninterest expense	1,479	1,861
Income before income taxes	(6,698)	(6,364)
Net income	$ (4,869)	$ (4,402)

Earnings Per Common Share - Schedule of average shares excluded from computation of diluted earnings per common share (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive common stock equivalents	288,265	241,452
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive common stock equivalents	22,806	0
PSU Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive common stock equivalents	265,459	241,452

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent
Net unrealized holding gains (losses) on debt securities available for sale, tax expense (benefit)	$ 8,749	$ (29,726)
Unrealized gains (losses) on debt securities transferred to held to maturity from available for sale, tax expense (benefit)	0	(13,812)
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, tax expense (benefit)	1	30
Amortization of unrealized losses on securities transferred to held to maturity, tax expense (benefit)	(483)	(252)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
Net unrealized holding gains (losses) on cash flow hedges, tax expense (benefit)	1,214	(1,931)
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, tax expense (benefit)	$ (516)	$ 143

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividends, common stock (in dollars per share)	$ 0.24	$ 0.23

Borrowings

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

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, 2023			December 31, 2022
Securities sold under agreements to repurchase	$	210,977		$	229,806
Weighted average rate for securities sold under agreements to repurchase	2.44		%	1.91		%

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. On April 30, 2023, the agreement was further amended to extend the term for the revolving line of credit to April 30, 2024.

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, 2023, there was no balance outstanding on the revolving credit facility and a total of $39.0 million outstanding on the term loan, of which $12.0 million was short-term and $27.0 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, 2023		December 31, 2022
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	$	603,881	$	339,054

Term Loan, current portion due within 12 months	12,000		12,000
Total short-term debt	$	615,881	$	351,054

Funds borrowed from the FHLB, listed above, consisted of four notes with a weighted average interest rate of 4.81% and a weighted average maturity period of four days as of March 31, 2023, and four notes with a weighted average interest rate of 4.28% and a weighted average maturity period of five days as of December 31, 2022.

Federal funds purchased are short-term borrowings that generally mature between one day and 90 days. During the first quarter of 2023, the Company purchased federal funds to test operational availability to access funds if needed. The Company had no federal funds purchased as of March 31, 2023, or December 31, 2022.

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, 2023		December 31, 2022
Long-term debt

Term Loan	$	27,000	$	30,000

Senior and Subordinated Notes

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.

On June 2, 2022, the Company issued $100.0 million aggregate principal amount of 5.000% fixed-to-floating rate subordinated notes maturing June 15, 2032, which qualify as Tier 2 Capital for regulatory purposes. The price to the public for the subordinated notes was 100% of the principal amount of the subordinated notes. Interest on the subordinated notes will accrue at a rate equal to (i) 5.000% per annum from the original issue date to, but excluding, June 15, 2027, payable semiannually in arrears, and (ii) a floating rate per annum equal to a benchmark rate, which is expected to be the Three-Month Term SOFR (as defined in the subordinated notes), plus a spread of 252 basis points from and including, June 15, 2027, payable quarterly in arrears. The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after June 15, 2027.

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


	As of
	March 31, 2023		December 31, 2022
Unamortized debt issuance costs
Subordinated notes issued in 2020	$	1,101	$	1,220
Subordinated notes issued in 2022	1,654		1,742
Total unamortized debt issuance costs	$	2,755	$	2,962

- 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 https://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 https://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)
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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 https://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 https://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))
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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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-Section 50
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-Subparagraph (g)
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Stock-Based Compensation - Summary of changes in the Company's RSU, PSU, and DSU awards (Details) - $ / shares		3 Months Ended
	Mar. 22, 2023	Mar. 31, 2023
RSU Awards
Shares
Non-vested at beginning of period (in shares)		1,096,931
Granted (in shares)		224,316
Dividend equivalents earned (in shares)		11,509
Vested (in shares)		(4,308)
Forfeited (in shares)		(6,863)
Non-vested at end of period (in shares)		1,321,585
Weighted- Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 23.61
Granted (in dollars per share)		20.44
Dividend equivalents earned (in dollars per share)		22.85
Vested (in dollars per share)		25.79
Forfeited (in dollars per share)		20.88
Non-vested at end of period (in dollars per share)		$ 23.07
PSU Awards
Shares
Non-vested at beginning of period (in shares)		285,351
Granted (in shares)	15,045	224,331
Dividend equivalents earned (in shares)		92
Vested (in shares)		(92)
Forfeited (in shares)		(36,345)
Non-vested at end of period (in shares)		473,337
Weighted- Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 25.40
Granted (in dollars per share)		20.44
Dividend equivalents earned (in dollars per share)		22.85
Vested (in dollars per share)		22.85
Forfeited (in dollars per share)		25.24
Non-vested at end of period (in dollars per share)		$ 23.06
DSU Awards
Shares
Non-vested at beginning of period (in shares)		31,085
Granted (in shares)		41,548
Dividend equivalents earned (in shares)		1,507
Vested (in shares)		(32,592)
Non-vested at end of period (in shares)		41,548
Vested and outstanding at end of period (in shares)		145,026
Weighted- Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 25.75
Granted (in dollars per share)		20.44
Dividend equivalents earned (in dollars per share)		22.86
Vested (in dollars per share)		25.61
Non-vested at end of period (in dollars per share)		20.44
Vested and outstanding at end of period (in dollars per share)		$ 23.66

Borrowings - Schedule of short-term borrowings (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) note	Dec. 31, 2022 USD ($) note
Short-Term Debt [Line Items]
Total short-term debt	$ 615,881,000	$ 351,054,000
Weighted average rate for securities sold under agreements to repurchase	2.44%	1.91%
Weighted average maturity period for securities sold under agreements to repurchase	4 days	5 days
Federal funds purchased	$ 0	$ 0
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
Short-Term Debt [Line Items]
Total short-term debt	603,881,000	339,054,000
Term Loan, current portion due within 12 months
Short-Term Debt [Line Items]
Total short-term debt	$ 12,000,000	$ 12,000,000
Federal Home Loan Bank Certificates and Obligations (FHLB)
Short-Term Debt [Line Items]
Number of notes \| note	4	4
Weighted average rate for securities sold under agreements to repurchase	4.81%	4.28%
Minimum
Short-Term Debt [Line Items]
Short-term borrowings, mature period	1 day
Maximum
Short-Term Debt [Line Items]
Short-term borrowings, mature period	90 days

Derivative Financial Instruments

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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.

To secure its obligations under derivative contracts, the Company pledged cash and held collateral as follows (dollars in thousands):


	As of
	March 31, 2023		December 31, 2022
Cash pledged to secure obligations under derivative contracts	$	37,827	$	38,609
Collateral held to secure obligations under derivative contracts	22,650		29,830

Derivative Instruments Designated as 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 both March 31, 2023, and December 31, 2022, 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 for 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 receive fixed pay floating interest rate swap to reduce the Company’s asset sensitivity (Loan Swap). Duration was added to our loan portfolio by fixing a portion of floating prime based loans. Interest rates had risen above their historical lows allowing the Company to lock in a portion of its loan portfolio to reduce asset sensitivity while creating a more stable margin in a volatile rate market. 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
	Location	March 31, 2023			December 31, 2022
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		4.87		%	4.77		%
Weighted average maturity, in years		1.46 years			1.71 years

Loan Swap
Notional amount		$	300,000		$	300,000
Weighted average fixed receive rates		4.81		%	4.81		%
Weighted average variable Prime pay rates		7.85		%	7.32		%
Weighted average maturity, in years		5.85 years			6.10 years

Gross aggregate fair value of the swaps
Gross aggregate fair value of swap assets	Other assets	$	2,062		$	2,535
Gross aggregate fair value of swap liabilities	Other liabilities	25,970			32,367

Balances carried in AOCI
Unrealized gains (losses) on cash flow hedges, net of tax	AOCI	$	(16,642)		$	(20,985)

The Company expects to reclassify unrealized gains and losses from OCI to interest income and interest expense as shown in the following table, during the next 12 months (dollars in thousands). 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, 2023.


	As of March 31, 2023
Unrealized gains (losses) in OCI expected to be recognized in income
Unrealized gains expected to be reclassified from OCI to interest income	$	393
Unrealized losses expected to be reclassified from OCI to interest expense	(783)
Net unrealized gains (losses) in OCI expected to be recognized in net interest income	$	(390)

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


	Three Months Ended March 31,
		2023		2022
Interest on swap transactions
Interest income on swap transactions		$	383	$	685
Interest expense on swap transactions		(2,192)		(185)
Net interest income (expense) on swap transactions		$	(1,809)	$	500

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,
		2023		2022
Unrealized gains (losses) on cash flow hedges
Net gain (loss) recognized in OCI, net of tax		$	3,050	$	(4,845)
(Gain) loss reclassified from OCI to interest income, net of tax		(274)		(489)
(Gain) loss reclassified from OCI to interest expense, net of tax		1,567		132
Net change in unrealized gains (losses) on cash flow hedges, net of tax		$	4,343	$	(5,202)

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 $648.3 million and as of March 31, 2023, and $576.9 million as of December 31, 2022. 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, 2023
	Derivative Asset				Derivative Liability
	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives not designated as hedging instruments
Interest rate swaps – pay floating, receive fixed	$	161,772	$	2,256	$	486,488	$	30,226
Interest rate swaps – pay fixed, receive floating	486,488		30,226		161,772		2,256
Total derivatives not designated as hedging instruments	$	648,260	$	32,482	$	648,260	$	32,482


	As of December 31, 2022
	Derivative Asset				Derivative Liability
	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives not designated as hedging instruments
Interest rate swaps – pay floating, receive fixed	$	48,728	$	370	$	528,183	$	39,685
Interest rate swaps – pay fixed, receive floating	528,183		39,685		48,728		370
Total derivatives not designated as hedging instruments	$	576,911	$	40,055	$	576,911	$	40,055

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		2023		2022
Interest rate swaps
Pay floating, receive fixed	Noninterest expense		$	(7,667)	$	(3,550)
Pay fixed, receive floating	Noninterest expense		7,667		3,550
Net change in fair value of interest rate swaps			$	—	$	—

Risk Participation Agreements

To manage the credit risk exposure related to a customer-facing swap, the Company entered into risk participation agreements in conjunction with loan participation arrangements with other financial institutions. The risk participation agreements mature between 2026 and 2029, and are summarized as follows (dollars in thousands):


	As of
	March 31, 2023		December 31, 2022
Risk participation agreements
Number of risk participation agreements	3		2
Notional amount	$	34,320	$	18,899
Fair value	24		5

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 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, 2023				As of December 31, 2022
	Location	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives with positive fair value
Interest rate lock commitments	Other assets	$	2,955	$	53	$	1,517	$	16
Forward sales commitments	Other assets	697		3		83		1
Mortgage banking derivatives recorded in other assets		$	3,652	$	56	$	1,600	$	17

Derivatives with negative fair value
Interest rate lock commitments	Other liabilities	$	36	$	—	$	83	$	1
Forward sales commitments	Other liabilities	4,983		95		2,757		39
Mortgage banking derivatives recorded in other liabilities		$	5,019	$	95	$	2,840	$	40

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		2023		2022
Net gains (losses)
Interest rate lock commitments	Mortgage revenue		$	37	$	15
Forward sales commitments	Mortgage revenue		(54)		106
Net gains (losses)			$	(17)	$	121

Stock-Based Compensation - RSU, PSU, and DSU Narrative (Details) - USD ($) $ in Millions		3 Months Ended	12 Months Ended
	Mar. 22, 2023	Mar. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Period over which cost will be recognized		2 years 9 months 18 days	2 years 6 months
RSU Awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares of common stock per award (in shares)		1
Granted (in shares)		224,316
RSU Awards \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Requisite service periods		1 year
RSU Awards \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Requisite service periods		5 years
DSU Awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares of common stock per award (in shares)		1
Granted (in shares)		41,548
Vesting period		1 year
Settlement period		30 days
PSU Awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares of common stock per award (in shares)		1
Granted (in shares)	15,045	224,331
Grant date fair value of the award	$ 0.3
PSU Awards \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting percentage	0.00%
PSU Awards \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)	30,090
Vesting percentage	200.00%
Market Based Performance Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)	104,643
Grant date fair value of the award	$ 2.1
Market Based Performance Stock Units \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting percentage	0.00%
Market Based Performance Stock Units \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)	167,429
Vesting percentage	160.00%
Performance Based Performance Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)	104,643
Grant date fair value of the award	$ 2.1
Performance Based Performance Stock Units \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting percentage	0.00%
Performance Based Performance Stock Units \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)	167,429
Vesting percentage	160.00%
Members of management, including the Vice-Chairman of the Board \| RSU Awards \| 2020 Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)	224,316
Grant date fair value of the award	$ 4.6
Vesting percentage	100.00%
Members of management, including the Vice-Chairman of the Board \| RSU Awards \| 2020 Equity Incentive Plan \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Period over which cost will be recognized	1 year
Members of management, including the Vice-Chairman of the Board \| RSU Awards \| 2020 Equity Incentive Plan \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Period over which cost will be recognized	5 years
Directors and Advisory Directors \| DSU Awards \| 2020 Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)	41,548
Grant date fair value of the award	$ 0.8
Period over which cost will be recognized	1 year
Vesting percentage	100.00%

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Portfolio loans, allowance for credit losses	$ 91,727	$ 91,608
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	100,000,000	100,000,000

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of financial instruments owned and pledged as collateral

The Company had loans pledged to the FHLB and Federal Reserve for liquidity as set forth in the table below (dollars in thousands):


	As of
	March 31, 2023		December 31, 2022
Pledged loans
FHLB	$	5,065,913	$	5,095,448
Federal Reserve Bank	825,410		804,718
Total pledged loans	$	5,891,323	$	5,900,166

To secure its obligations under derivative contracts, the Company pledged cash and held collateral as follows (dollars in thousands):


	As of
	March 31, 2023		December 31, 2022
Cash pledged to secure obligations under derivative contracts	$	37,827	$	38,609
Collateral held to secure obligations under derivative contracts	22,650		29,830

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
	Location	March 31, 2023			December 31, 2022
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		4.87		%	4.77		%
Weighted average maturity, in years		1.46 years			1.71 years

Loan Swap
Notional amount		$	300,000		$	300,000
Weighted average fixed receive rates		4.81		%	4.81		%
Weighted average variable Prime pay rates		7.85		%	7.32		%
Weighted average maturity, in years		5.85 years			6.10 years

Gross aggregate fair value of the swaps
Gross aggregate fair value of swap assets	Other assets	$	2,062		$	2,535
Gross aggregate fair value of swap liabilities	Other liabilities	25,970			32,367

Balances carried in AOCI
Unrealized gains (losses) on cash flow hedges, net of tax	AOCI	$	(16,642)		$	(20,985)

Reclassification of unrealized gains and losses from OCI


	As of March 31, 2023
Unrealized gains (losses) in OCI expected to be recognized in income
Unrealized gains expected to be reclassified from OCI to interest income	$	393
Unrealized losses expected to be reclassified from OCI to interest expense	(783)
Net unrealized gains (losses) in OCI expected to be recognized in net interest income	$	(390)

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):


	Three Months Ended March 31,
		2023		2022
Interest on swap transactions
Interest income on swap transactions		$	383	$	685
Interest expense on swap transactions		(2,192)		(185)
Net interest income (expense) on swap transactions		$	(1,809)	$	500

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


	Three Months Ended March 31,
		2023		2022
Unrealized gains (losses) on cash flow hedges
Net gain (loss) recognized in OCI, net of tax		$	3,050	$	(4,845)
(Gain) loss reclassified from OCI to interest income, net of tax		(274)		(489)
(Gain) loss reclassified from OCI to interest expense, net of tax		1,567		132
Net change in unrealized gains (losses) on cash flow hedges, net of tax		$	4,343	$	(5,202)


		Three Months Ended March 31,
	Location		2023		2022
Interest rate swaps
Pay floating, receive fixed	Noninterest expense		$	(7,667)	$	(3,550)
Pay fixed, receive floating	Noninterest expense		7,667		3,550
Net change in fair value of interest rate swaps			$	—	$	—

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		2023		2022
Net gains (losses)
Interest rate lock commitments	Mortgage revenue		$	37	$	15
Forward sales commitments	Mortgage revenue		(54)		106
Net gains (losses)			$	(17)	$	121

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


	As of March 31, 2023
	Derivative Asset				Derivative Liability
	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives not designated as hedging instruments
Interest rate swaps – pay floating, receive fixed	$	161,772	$	2,256	$	486,488	$	30,226
Interest rate swaps – pay fixed, receive floating	486,488		30,226		161,772		2,256
Total derivatives not designated as hedging instruments	$	648,260	$	32,482	$	648,260	$	32,482


	As of December 31, 2022
	Derivative Asset				Derivative Liability
	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives not designated as hedging instruments
Interest rate swaps – pay floating, receive fixed	$	48,728	$	370	$	528,183	$	39,685
Interest rate swaps – pay fixed, receive floating	528,183		39,685		48,728		370
Total derivatives not designated as hedging instruments	$	576,911	$	40,055	$	576,911	$	40,055

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, 2023				As of December 31, 2022
	Location	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives with positive fair value
Interest rate lock commitments	Other assets	$	2,955	$	53	$	1,517	$	16
Forward sales commitments	Other assets	697		3		83		1
Mortgage banking derivatives recorded in other assets		$	3,652	$	56	$	1,600	$	17

Derivatives with negative fair value
Interest rate lock commitments	Other liabilities	$	36	$	—	$	83	$	1
Forward sales commitments	Other liabilities	4,983		95		2,757		39
Mortgage banking derivatives recorded in other liabilities		$	5,019	$	95	$	2,840	$	40

Schedule of notional amount and fair value of risk participation agreement

The risk participation agreements mature between 2026 and 2029, and are summarized as follows (dollars in thousands):


	As of
	March 31, 2023		December 31, 2022
Risk participation agreements
Number of risk participation agreements	3		2
Notional amount	$	34,320	$	18,899
Fair value	24		5

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959

+ Details

Debt Securities - Maturity of Debt Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Amortized Cost
Due in one year or less	$ 105,794
Due after one year through five years	363,407
Due after five years through ten years	369,029
Due after ten years	1,825,691
Amortized Cost	2,663,921	$ 2,772,453
Fair Value
Due in one year or less	103,746
Due after one year through five years	340,503
Due after five years through ten years	337,071
Due after ten years	1,602,230
Fair Value	2,383,550	2,461,393
Amortized Cost
Due after one year through five years	43,594
Due after five years through ten years	63,632
Due after ten years	800,333
Amortized Cost	907,559	918,312
Fair Value
Due after one year through five years	41,147
Due after five years through ten years	57,859
Due after ten years	681,647
Fair Value	$ 780,653	$ 785,295

Debt Securities - Additional Information (Details) $ in Thousands	Mar. 31, 2023 USD ($) security	Dec. 31, 2022 USD ($) security
Available for Sale
Debt securities with gross unrealized or unrecognized losses, fair value \| $	$ 2,339,952	$ 2,439,533
Gross unrealized or unrecognized losses on debt securities \| $	$ 280,583	$ 311,204
Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses	12.00%	12.80%
Count of debt securities \| security	1,058	1,091
Count of debt securities in an unrealized or unrecognized loss position \| security	947	1,032
Held to Maturity
Debt securities with gross unrealized or unrecognized losses, fair value \| $	$ 780,653	$ 785,295
Gross unrealized or unrecognized losses on debt securities \| $	$ 126,906	$ 133,017
Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses	16.30%	16.90%
Count of debt securities \| security	55	55
Count of debt securities in an unrealized or unrecognized loss position \| security	55	55
Total
Debt securities with gross unrealized or unrecognized losses, fair value \| $	$ 3,120,605	$ 3,224,828
Gross unrealized or unrecognized losses on debt securities \| $	$ 407,489	$ 444,221
Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses	13.10%	13.80%
Count of debt securities \| security	1,113	1,146
Count of debt securities in an unrealized or unrecognized loss position \| security	1,002	1,087

Derivative Financial Instruments - Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) (Details) - Cash Flow Hedging - Interest Rate Contract - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative [Line Items]
Net gain (loss) recognized in OCI, net of tax	$ 3,050	$ (4,845)
(Gain) loss reclassified from OCI to interest income, net of tax	(274)	(489)
(Gain) loss reclassified from OCI to interest expense, net of tax	1,567	132
Net change in unrealized gains (losses) on cash flow hedges, net of tax	$ 4,343	$ (5,202)

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance, net of tax	$ 1,145,977	$ 1,319,112
Unrealized/Unrecognized gains (losses) on debt securities
Unrealized holding gains (losses) on debt securities available for sale, net of tax	21,944	(74,556)
Unrealized losses on debt securities transferred to held to maturity from available for sale, net of tax	0	(34,644)
Amounts reclassified from AOCI, net of tax	3	76
Amortization of unrealized losses on securities transferred to held to maturity, net of tax	(1,210)	(631)
Unrealized gains (losses) on cash flow hedges
Unrealized holding gains (losses) on cash flow hedges, net of tax	3,050	(4,845)
Amounts reclassified from AOCI, net of tax	(1,293)	357
Ending balance, net of tax	1,198,558	1,218,025
AOCI
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance, net of tax	(273,278)	(23,758)
Unrealized gains (losses) on cash flow hedges
Accumulated other comprehensive income (loss) ending balance period, before tax	(343,773)	(192,467)
Accumulated other comprehensive income (loss) ending balance period, tax effect	97,989	54,862
Ending balance, net of tax	(245,784)	(137,605)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income (loss) beginning balance period, before tax	(352,878)	(32,272)
Accumulated other comprehensive income (loss) beginning balance period, tax effect	100,585	9,199
Beginning balance, net of tax	(252,293)	(23,073)
Unrealized/Unrecognized gains (losses) on debt securities
Unrealized holding gains (losses) on debt securities available for sale, before tax	30,693	(104,282)
Unrealized holding gains (losses) on debt securities available for sale, tax effect	(8,749)	29,726
Unrealized holding gains (losses) on debt securities available for sale, net of tax	21,944	(74,556)
Unrealized losses on debt securities transferred to held to maturity from available for sale, before tax	0	(48,456)
Unrealized losses on debt securities transferred to held to maturity from available for sale, tax effect	0	13,812
Unrealized losses on debt securities transferred to held to maturity from available for sale, net of tax	0	(34,644)
Amounts reclassified from AOCI, before tax	(4)	(106)
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, tax expense (benefit)	1	30
Amounts reclassified from AOCI, net of tax	(3)	(76)
Amortization of unrealized losses on securities transferred to held to maturity, before tax	1,693	883
Amortization of unrealized losses on securities transferred to held to maturity, tax effect	483	252
Amortization of unrealized losses on securities transferred to held to maturity, net of tax	1,210	631
Unrealized gains (losses) on cash flow hedges
Accumulated other comprehensive income (loss) ending balance period, before tax	(320,496)	(184,233)
Accumulated other comprehensive income (loss) ending balance period, tax effect	91,354	52,515
Ending balance, net of tax	(229,142)	(131,718)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income (loss) beginning balance period, before tax	(29,350)	(958)
Accumulated other comprehensive income (loss) beginning balance period, tax effect	8,365	273
Beginning balance, net of tax	(20,985)	(685)
Unrealized gains (losses) on cash flow hedges
Unrealized holding gains (losses) on cash flow hedges, before tax	4,264	(6,776)
Unrealized holding gains (losses) on cash flow hedges, tax effect	(1,214)	1,931
Unrealized holding gains (losses) on cash flow hedges, net of tax	3,050	(4,845)
(Gain) loss reclassified from OCI to interest expense, net of tax	1,809	(500)
Amounts reclassified from AOCI, tax effect	(516)	143
Amounts reclassified from AOCI, net of tax	1,293	(357)
Accumulated other comprehensive income (loss) ending balance period, before tax	(23,277)	(8,234)
Accumulated other comprehensive income (loss) ending balance period, tax effect	6,635	2,347
Ending balance, net of tax	$ (16,642)	$ (5,887)

Leases - Summary of revenue recorded in connection with leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Rental income	$ 191	$ 230

Outstanding Commitments and Contingent Liabilities - Schedule of contractual amount of exposure to off-balance-sheet risk (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Credit Commitments and Contingencies
Total commitments	$ 2,103,910	$ 2,024,777
Commitments to extend credit
Credit Commitments and Contingencies
Total commitments	2,066,438	1,991,769
Standby letters of credit
Credit Commitments and Contingencies
Total commitments	$ 37,472	$ 33,008

Portfolio Loans (Tables)

3 Months Ended

Mar. 31, 2023

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Distribution of portfolio loans

Distributions of the loan portfolio by loan category and class is presented in the following table (dollars in thousands):


	As of
	March 31, 2023		December 31, 2022
Commercial loans
Commercial	$	1,937,158	$	1,974,154
Commercial real estate	3,324,536		3,261,873
Real estate construction	554,009		530,469
Total commercial loans	5,815,703		5,766,496
Retail loans
Retail real estate	1,667,537		1,657,082
Retail other	300,568		302,124
Total retail loans	1,968,105		1,959,206

Total portfolio loans	7,783,808		7,725,702
ACL	(91,727)		(91,608)
Portfolio loans, net	$	7,692,081	$	7,634,094

Schedule of financial instruments owned and pledged as collateral

The Company had loans pledged to the FHLB and Federal Reserve for liquidity as set forth in the table below (dollars in thousands):


	As of
	March 31, 2023		December 31, 2022
Pledged loans
FHLB	$	5,065,913	$	5,095,448
Federal Reserve Bank	825,410		804,718
Total pledged loans	$	5,891,323	$	5,900,166

To secure its obligations under derivative contracts, the Company pledged cash and held collateral as follows (dollars in thousands):


	As of
	March 31, 2023		December 31, 2022
Cash pledged to secure obligations under derivative contracts	$	37,827	$	38,609
Collateral held to secure obligations under derivative contracts	22,650		29,830

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 and class of portfolio loans (dollars in thousands):


	As of March 31, 2023
	Pass			Watch		Special Mention		Substandard		Substandard Non-accrual		Total
Commercial loans
Commercial	$	1,624,656		$	208,613	$	42,827	$	55,652	$	5,410	$	1,937,158
Commercial real estate	2,888,970			362,187		43,195		24,623		5,561		3,324,536
Real estate construction	531,786			16,819		—		5,404		—		554,009
Total commercial loans	5,045,412			587,619		86,022		85,679		10,971		5,815,703
Retail loans
Retail real estate	1,649,407			11,722		503		2,206		3,699		1,667,537
Retail other	300,524			—		—		—		44		300,568
Total retail loans	1,949,931		1,949,931	11,722		503		2,206		3,743		1,968,105
Total portfolio loans	$	6,995,343		$	599,341	$	86,525	$	87,885	$	14,714	$	7,783,808


	As of December 31, 2022
	Pass			Watch		Special Mention		Substandard		Substandard Non-accrual		Total
Commercial loans
Commercial	$	1,668,495		$	201,758	$	46,540	$	51,187	$	6,174	$	1,974,154
Commercial real estate	2,851,709			326,455		43,526		34,539		5,644		3,261,873
Real estate construction	502,904			25,164		1		2,400		—		530,469
Total commercial loans	5,023,108			553,377		90,067		88,126		11,818		5,766,496
Retail loans
Retail real estate	1,639,599			10,520		1,338		2,529		3,096		1,657,082
Retail other	301,971			—		—		—		153		302,124
Total retail loans	1,941,570		1,941,570	10,520		1,338		2,529		3,249		1,959,206
Total portfolio loans	$	6,964,678		$	563,897	$	91,405	$	90,655	$	15,067	$	7,725,702

Risk grades of portfolio loans, further sorted by origination

Risk grades of portfolio loans and net charge-offs are presented in the tables below by loan class, further sorted by origination year (dollars in thousands):


	As of and For The Three Months Ended March 31, 2023
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans		Total
Risk Grade Ratings	2023		2022		2021		2020		2019		Prior
Commercial
Pass	$	193,301	$	326,112	$	237,528	$	130,503	$	45,737	$	152,200	$	539,275	$	1,624,656
Watch	19,141		44,289		47,474		2,758		6,384		5,162		83,405		208,613
Special Mention	—		1,682		2,811		1,340		652		17,343		18,999		42,827
Substandard	19,386		1,360		1,143		526		6,229		2,030		24,978		55,652
Substandard non-accrual	94		—		2,976		205		133		2		2,000		5,410
Total commercial	231,922		373,443		291,932		135,332		59,135		176,737		668,657		1,937,158
Current period charge-offs	—		—		400		—		—		—		—		400

Commercial real estate
Pass	139,599		882,834		810,278		457,122		279,737		306,763		12,637		2,888,970
Watch	29,344		65,687		75,032		57,391		89,469		40,302		4,962		362,187
Special Mention	816		7,001		4,365		15,293		3,743		11,977		—		43,195
Substandard	11,604		5,975		1,095		3,394		1,888		667		—		24,623
Substandard non-accrual	—		604		3,847		30		—		1,080		—		5,561
Total commercial real estate	181,363		962,101		894,617		533,230		374,837		360,789		17,599		3,324,536
Current period charge-offs	—		—		—		—		—		539		—		539

Real estate construction
Pass	38,451		219,520		179,369		69,767		1,447		3,510		19,722		531,786
Watch	12		4,454		9,230		3,077		46		—		—		16,819

Substandard	—		5,404		—		—		—		—		—		5,404

Total real estate construction	38,463		229,378		188,599		72,844		1,493		3,510		19,722		554,009
Current period charge-offs	—		—		—		—		—		—		—		—

Retail real estate
Pass	62,890		394,383		439,515		171,450		75,296		307,826		198,047		1,649,407
Watch	546		2,989		2,952		1,332		1,423		974		1,506		11,722
Special Mention	55		58		—		—		—		390		—		503
Substandard	—		75		361		189		82		1,256		243		2,206
Substandard non-accrual	—		10		238		159		104		2,387		801		3,699
Total retail real estate	63,491		397,515		443,066		173,130		76,905		312,833		200,597		1,667,537
Current period charge-offs	—		—		—		—		—		5		—		5

Retail other
Pass	35,635		123,857		32,214		11,275		10,581		4,278		82,684		300,524



Substandard non-accrual	—		6		35		3		—		—		—		44
Total retail other	35,635		123,863		32,249		11,278		10,581		4,278		82,684		300,568
Current period charge-offs	$	—	$	36	$	102	$	1	$	—	$	98	$	—	$	237

Total portfolio loans	$	550,874	$	2,086,300	$	1,850,463	$	925,814	$	522,951	$	858,147	$	989,259	$	7,783,808
Total current period charge-offs	$	—	$	36	$	502	$	1	$	—	$	642	$	—	$	1,181


	As of and For The Year Ended December 31, 2022
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans		Total
Risk Grade Ratings	2022		2021		2020		2019		2018		Prior
Commercial
Pass	$	479,893	$	266,122	$	136,445	$	52,046	$	50,764	$	135,000	$	548,225	$	1,668,495
Watch	54,195		49,382		3,288		7,201		1,258		2,160		84,274		201,758
Special Mention	1,958		937		1,642		974		1,000		17,024		23,005		46,540
Substandard	8,926		1,165		570		6,671		2,382		5,191		26,282		51,187
Substandard non-accrual	21		3,292		226		135		—		100		2,400		6,174
Total commercial	544,993		320,898		142,171		67,027		55,404		159,475		684,186		1,974,154

Commercial real estate
Pass	883,688		819,133		478,452		297,525		161,409		198,419		13,083		2,851,709
Watch	77,346		56,113		64,282		96,664		21,592		5,758		4,700		326,455
Special Mention	11,943		5,389		12,386		1,420		6,917		5,471		—		43,526
Substandard	5,340		13,528		3,454		1,907		10,248		62		—		34,539
Substandard non-accrual	—		3,959		33		—		1,647		5		—		5,644
Total commercial real estate	978,317		898,122		558,607		397,516		201,813		209,715		17,783		3,261,873

Real estate construction
Pass	219,112		191,724		68,015		1,490		1,901		1,751		18,911		502,904
Watch	8,530		12,019		3,169		48		—		1,398		—		25,164
Special Mention	—		—		—		1		—		—		—		1
Substandard	2,400		—		—		—		—		—		—		2,400

Total real estate construction	230,042		203,743		71,184		1,539		1,901		3,149		18,911		530,469

Retail real estate
Pass	396,547		456,158		175,148		77,569		56,887		267,387		209,903		1,639,599
Watch	2,928		2,991		1,846		1,444		1,063		27		221		10,520
Special Mention	945		—		—		—		—		393		—		1,338
Substandard	77		732		198		81		141		1,293		7		2,529
Substandard non-accrual	10		191		107		32		390		1,708		658		3,096
Total retail real estate	400,507		460,072		177,299		79,126		58,481		270,808		210,789		1,657,082

Retail other
Pass	134,567		43,512		13,141		13,086		5,646		991		91,028		301,971



Substandard non-accrual	14		134		3		—		—		2		—		153
Total retail other	134,581		43,646		13,144		13,086		5,646		993		91,028		302,124

Total portfolio loans	$	2,288,440	$	1,926,481	$	962,405	$	558,294	$	323,245	$	644,140	$	1,022,697	$	7,725,702

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, 2023
	Loans past due, still accruing						Non-accrual Loans
	30-59 Days		60-89 Days		90+Days
Past due and non-accrual loans
Commercial loans:
Commercial	$	78	$	1	$	—	$	5,410
Commercial real estate	444		—		—		5,561

Past due and non-accrual commercial loans	522		1		—		10,971
Retail loans:
Retail real estate	3,120		1,169		472		3,699
Retail other	653		7		28		44
Past due and non-accrual retail loans	3,773		1,176		500		3,743
Total past due and non-accrual loans	$	4,295	$	1,177	$	500	$	14,714


	As of December 31, 2022
	Loans past due, still accruing						Non-accrual Loans
	30-59 Days		60-89 Days		90+Days
Past due and non-accrual loans
Commercial loans:
Commercial	$	2	$	—	$	—	$	6,174
Commercial real estate	124		—		—		5,644

Past due and non-accrual commercial loans	126		—		—		11,818
Retail loans:
Retail real estate	4,709		1,239		673		3,096
Retail other	414		60		—		153
Past due and non-accrual retail loans	5,123		1,299		673		3,249
Total past due and non-accrual loans	$	5,249	$	1,299	$	673	$	15,067

Schedule of loan modifications made to borrowers experiencing financial difficulty

The following table shows the amortized cost basis of loans that were modified during the three months ended March 31, 2023, for borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted (dollars in thousands):


	As of March 31, 2023
	Payment Deferral1		% of Total Class of Financing Receivable2		Term Extension3		% of Total Class of Financing Receivable
Loan class:
Commercial	$	489	—	%	$	25,155	1.3	%
Commercial real estate	—		—	%	12,698		0.4	%



Total of loans modified during the period4	$	489	—	%	$	37,853	0.5	%

___________________________________________

1.Loans with payment deferrals were modified to defer all principal payments until the end of the loan terms, which were shortened. Regular interest payments continue to be required during the deferral period.

2.Loans with payment deferrals represent an insignificant portion of of commercial loans and total loans, rounding to zero percent.

3.Modifications to extend loan terms also included, in most cases, interest rate increases during the extension period.

4.All modifications were for loans classified as substandard.

The following table summarizes the financial effects of loan modifications made during the three months ended March 31, 2023, for borrowers experiencing financial difficulty:

Weighted Average Term Extension

Loan class:

Commercial

9.1 months

Commercial real estate

5.8 months

Total financial effect

8.0 months

The following table depicts the payment performance of loans modified on or after January 1, 2023, the date we adopted ASU 2022-02 (dollars in thousands):


	As of March 31, 2023
	Current		30-89 Days		90+ Days
Loan class:
Commercial	$	25,644	$	—	$	—
Commercial real estate	12,698		—		—



Amortized cost of modified loans	$	38,342	$	—	$	—

Schedule of details of impaired loans, segregated by category

Average recorded investment is calculated using the most recent four quarters (dollars in thousands):


	As of March 31, 2023
	Unpaid Principal Balance		Recorded Investment								Average Recorded Investment
			With No Allowance		With Allowance		Total		Related Allowance
Loans evaluated individually
Commercial loans:
Commercial	$	8,761	$	564	$	5,181	$	5,745	$	1,825	$	6,512
Commercial real estate	8,421		2,286		3,794		6,080		1,344		5,285
Real estate construction	—		—		—		—		—		206
Commercial loans evaluated individually	17,182		2,850		8,975		11,825		3,169		12,003
Retail loans:
Retail real estate	1,249		1,080		25		1,105		25		2,058

Retail loans evaluated individually	1,249		1,080		25		1,105		25		2,058
Total loans evaluated individually	$	18,431	$	3,930	$	9,000	$	12,930	$	3,194	$	14,061


	As of December 31, 2022
	Unpaid Principal Balance		Recorded Investment								Average Recorded Investment
			With No Allowance		With Allowance		Total		Related Allowance
Loans evaluated individually
Commercial loans:
Commercial	$	9,589	$	656	$	5,918	$	6,574	$	2,476	$	6,761
Commercial real estate	8,039		2,334		3,903		6,237		2,000		5,219
Real estate construction	247		247		—		247		—		260
Commercial loans evaluated individually	17,875		3,237		9,821		13,058		4,476		12,240
Retail loans:
Retail real estate	2,733		2,564		25		2,589		25		2,311

Retail loans evaluated individually	2,733		2,564		25		2,589		25		2,311
Total loans evaluated individually	$	20,608	$	5,801	$	9,846	$	15,647	$	4,501	$	14,551

Schedule of activity on the allowance for loan losses

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


	Three Months Ended March 31, 2023
	Commercial		Commercial Real Estate		Real Estate Construction		Retail Real Estate		Retail Other		Total
ACL balance, December 31, 2022	$	23,860	$	38,299	$	6,457	$	18,193	$	4,799	$	91,608
Provision for credit losses	695		(3,359)		(1,329)		5,948		(1,002)		953
Charged-off	(400)		(539)		—		(5)		(237)		(1,181)
Recoveries	121		20		31		119		56		347
ACL balance, March 31, 2023	$	24,276	$	34,421	$	5,159	$	24,255	$	3,616	$	91,727


	Three Months Ended March 31, 2022
	Commercial		Commercial Real Estate		Real Estate Construction		Retail Real Estate		Retail Other		Total
ACL balance, December 31, 2021	$	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 balance, March 31, 2022	$	24,173	$	37,339	$	5,705	$	17,555	$	3,441	$	88,213

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 loan category and class (dollars in thousands):


	As of March 31, 2023
	Portfolio Loans						ACL Attributed to Portfolio Loans
	Collectively Evaluated for Impairment		Individually Evaluated for Impairment		Total		Collectively Evaluated for Impairment		Individually Evaluated for Impairment		Total
Portfolio loans and related ACL
Commercial loans:
Commercial	$	1,931,413	$	5,745	$	1,937,158	$	22,451	$	1,825	$	24,276
Commercial real estate	3,318,456		6,080		3,324,536		33,077		1,344		34,421
Real estate construction	554,009		—		554,009		5,159		—		5,159
Commercial loans and related ACL	5,803,878		11,825		5,815,703		60,687		3,169		63,856
Retail loans:
Retail real estate	1,666,432		1,105		1,667,537		24,230		25		24,255
Retail other	300,568		—		300,568		3,616		—		3,616
Retail loans and related ACL	1,967,000		1,105		1,968,105		27,846		25		27,871
Portfolio loans and related ACL	$	7,770,878	$	12,930	$	7,783,808	$	88,533	$	3,194	$	91,727


	As of December 31, 2022
	Portfolio Loans						ACL Attributed to Portfolio Loans
	Collectively Evaluated for Impairment		Individually Evaluated for Impairment		Total		Collectively Evaluated for Impairment		Individually Evaluated for Impairment		Total
Portfolio loans and related ACL
Commercial loans:
Commercial	$	1,967,580	$	6,574	$	1,974,154	$	21,384	$	2,476	$	23,860
Commercial real estate	3,255,636		6,237		3,261,873		36,299		2,000		38,299
Real estate construction	530,222		247		530,469		6,457		—		6,457
Commercial loans and related ACL	5,753,438		13,058		5,766,496		64,140		4,476		68,616
Retail loans:
Retail real estate	1,654,493		2,589		1,657,082		18,168		25		18,193
Retail other	302,124		—		302,124		4,799		—		4,799
Retail loans and related ACL	1,956,617		2,589		1,959,206		22,967		25		22,992
Portfolio loans and related ACL	$	7,710,055	$	15,647	$	7,725,702	$	87,107	$	4,501	$	91,608

Deposits - Schedule of composition of deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Deposits [Abstract]
Noninterest-bearing demand deposits	$ 3,173,783	$ 3,393,666
Interest-bearing transaction deposits	2,648,116	2,857,818
Saving deposits and money market deposits	2,830,599	2,964,421
Time deposits	1,148,671	855,375
Total deposits	9,801,169	10,071,280
Brokered savings deposits and money market deposits	6,005	1,303
Brokered time deposits	278	275
Aggregate amount of time deposits with a minimum denomination of $100,000	630,529	416,445
Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000	$ 200,898	$ 120,377

Derivative Financial Instruments - Interest Rate Swaps Recorded in Noninterest Expense (Details) - Interest Rate Swap - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative [Line Items]
Net change in fair value of interest rate swaps	$ 0	$ 0
Noninterest expense
Derivative [Line Items]
Gain (loss), pay floating, receive fixed	(7,667)	(3,550)
Gain (loss), pay fixed, receive floating	$ 7,667	$ 3,550

Derivative Financial Instruments - Reclassification of unrealized gains and losses from OCI (Details) - Interest Rate Swap - Cash Flow Hedging $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Derivative [Line Items]
Net unrealized gains (losses) in OCI expected to be recognized in net interest income	$ (390)
Interest Income
Derivative [Line Items]
Net unrealized gains (losses) in OCI expected to be recognized in net interest income	393
Interest Expense
Derivative [Line Items]
Net unrealized gains (losses) in OCI expected to be recognized in net interest income	$ (783)

Leases - Summary of lease-related balances (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Right of use assets	$ 12,291	$ 12,829
Lease liabilities	$ 12,515	$ 12,995
Weighted average remaining lease term, in years	8 years 9 months 25 days	8 years 10 months 24 days
Weighted average discount rate	3.49%	3.45%

Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

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

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

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

Equity Securities

Equity securities are reported at fair value utilizing Level 1 or Level 2 inputs. Fair value measurements of mutual funds, when held, are determined using unadjusted quoted prices in active markets for identical assets 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.

Derivative Assets and Derivative Liabilities

The majority of our derivative assets and derivative liabilities are reported at fair value utilizing Level 2 or Level 3 inputs. 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, with the exception of our risk participation agreements, are classified as Level 2. Due to the significance of unobservable inputs, derivative assets related to our risk participation agreements are classified as Level 3.


	As of March 31, 2023
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	84,632	$	—	$	84,632
Obligations of U.S. government corporations and agencies	—		11,627		—		11,627
Obligations of states and political subdivisions	—		254,261		—		254,261
Asset-backed securities	—		469,147		—		469,147
Commercial mortgage-backed securities	—		108,827		—		108,827
Residential mortgage-backed securities	—		1,225,934		—		1,225,934
Corporate debt securities	—		229,122		—		229,122
Equity securities	—		10,915		—		10,915
Derivative assets	—		34,600		24		34,624
Derivative liabilities	—		58,547		—		58,547


	As of December 31, 2022
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	114,061	$	—	$	114,061
Obligations of U.S. government corporations and agencies	—		19,779		—		19,779
Obligations of states and political subdivisions	—		257,512		—		257,512
Asset-backed securities	—		469,875		—		469,875
Commercial mortgage-backed securities	—		108,394		—		108,394
Residential mortgage-backed securities	—		1,243,256		—		1,243,256
Corporate debt securities	—		248,516		—		248,516
Equity securities	—		11,535		—		11,535
Derivative assets	—		42,607		5		42,612
Derivative liabilities	—		72,462		—		72,462

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

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

Loans Evaluated Individually

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

OREO and Other Repossessed Assets

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


	As of March 31, 2023
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	5,806	$	5,806
OREO and other repossessed assets with subsequent impairment	—		—		639		639
Bank property held for sale with impairment	—		—		7,923		7,923


	As of December 31, 2022
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	5,345	$	5,345

Bank property held for sale with impairment	—		—		7,923		7,923

As of March 31, 2023

Fair Value

Valuation
Techniques

Unobservable
Input

Range
(Weighted Average)

Loans evaluated individually, net of related allowance

5,806

Appraisal of collateral

Appraisal adjustments

-20.8% to -100.0%

(-35.5)%

OREO and other repossessed assets with subsequent impairment

639

Appraisal of collateral

Appraisal adjustments

-13.6%

(-13.6)%

Bank property held for sale with impairment

7,923

Appraisal of collateral or real estate listing price

Appraisal adjustments

-0.7% to -70.1%

(-35.1)%

As of December 31, 2022

Fair Value

Valuation

Techniques

Unobservable

Input

Range

(Weighted Average)

Loans evaluated individually, net of related allowance

5,345

Appraisal of collateral

Appraisal adjustments

-22.7% to -100.0%

(-45.7)%

Bank property held for sale with impairment

7,923

Appraisal of collateral or real estate listing price

Appraisal adjustments

-0.7% to -70.1%

(-35.1)%

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


	As of March 31, 2023				As of December 31, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Level 1 inputs:
Cash and cash equivalents	$	275,569	$	275,569	$	227,164	$	227,164
Level 2 inputs:
Debt securities held to maturity	907,559		780,653		918,312		785,295
Loans held for sale	2,714		2,756		1,253		1,276
Accrued interest receivable	42,854		42,854		43,372		43,372
Level 3 inputs:
Portfolio loans, net	7,692,081		7,431,580		7,634,094		7,320,422
Mortgage servicing rights	5,158		17,748		5,861		18,284
Other servicing rights	1,813		2,242		1,914		2,331

Financial liabilities
Level 2 inputs:
Time deposits	$	1,148,671	$	1,122,686	$	855,375	$	830,596
Securities sold under agreements to repurchase	210,977		210,977		229,806		229,806
Short-term borrowings	615,881		615,899		351,054		351,085
Long-term debt	27,000		27,025		30,000		30,052
Junior subordinated debt owed to unconsolidated trusts	71,855		56,640		71,810		59,111
Accrued interest payable	9,265		9,265		3,978		3,978
Level 3 inputs:

Subordinated notes, net of unamortized issuance costs	222,245		199,375		222,038		208,562

- 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

Debt Securities

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Debt Securities

The Company's portfolio of debt securities includes both available for sale and held to maturity securities. 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, 2023
	Amortized Cost		Unrealized				Fair Value
			Gross Gains		Gross Losses
Debt securities available for sale
U.S. Treasury securities	$	87,182	$	—	$	(2,550)	$	84,632
Obligations of U.S. government corporations and agencies	11,855		3		(231)		11,627
Obligations of states and political subdivisions	274,858		193		(20,790)		254,261
Asset-backed securities	488,234		—		(19,087)		469,147
Commercial mortgage-backed securities	123,720		—		(14,893)		108,827
Residential mortgage-backed securities	1,426,529		4		(200,599)		1,225,934
Corporate debt securities	251,543		12		(22,433)		229,122
Total debt securities available for sale	$	2,663,921	$	212	$	(280,583)	$	2,383,550



	Amortized Cost		Unrecognized				Fair Value
			Gross Gains		Gross Losses
Debt securities held to maturity
Commercial mortgage-backed securities	$	470,138	$	—	$	(63,198)	$	406,940
Residential mortgage-backed securities	437,421		—		(63,708)		373,713
Total debt securities held to maturity	$	907,559	$	—	$	(126,906)	$	780,653


	As of December 31, 2022
	Amortized Cost		Unrealized				Fair Value
			Gross Gains		Gross Losses
Debt securities available for sale
U.S. Treasury securities	$	117,805	$	—	$	(3,744)	$	114,061
Obligations of U.S. government corporations and agencies	20,097		3		(321)		19,779
Obligations of states and political subdivisions	283,481		106		(26,075)		257,512
Asset-backed securities	489,558		—		(19,683)		469,875
Commercial mortgage-backed securities	124,423		—		(16,029)		108,394
Residential mortgage-backed securities	1,463,971		2		(220,717)		1,243,256
Corporate debt securities	273,118		33		(24,635)		248,516
Total debt securities available for sale	$	2,772,453	$	144	$	(311,204)	$	2,461,393



	Amortized Cost		Unrecognized				Fair Value
			Gross Gains		Gross Losses
Debt securities held to maturity
Commercial mortgage-backed securities	$	474,820	$	—	$	(63,738)	$	411,082
Residential mortgage-backed securities	443,492		—		(69,279)		374,213
Total debt securities held to maturity	$	918,312	$	—	$	(133,017)	$	785,295

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, 2023
	Amortized Cost		Fair Value
Debt securities available for sale
Due in one year or less	$	105,794	$	103,746
Due after one year through five years	363,407		340,503
Due after five years through ten years	369,029		337,071
Due after ten years	1,825,691		1,602,230
Debt securities available for sale	$	2,663,921	$	2,383,550




Debt securities held to maturity

Due after one year through five years	$	43,594	$	41,147
Due after five years through ten years	63,632		57,859
Due after ten years	800,333		681,647
Debt securities held to maturity	$	907,559	$	780,653

Gains and Losses on Debt Securities Available for Sale

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,
		2023		2022
Realized gains and losses on debt securities
Gross gains on debt securities		$	10	$	113
Gross (losses) on debt securities		(6)		(7)
Realized net gains (losses) on debt securities		$	4	$	106

Debt securities with carrying amounts of $764.9 million on March 31, 2023, and $746.7 million on December 31, 2022, were pledged as collateral for public deposits, securities sold under agreements to repurchase, and for other purposes as required.

Debt Securities in an Unrealized or Unrecognized Loss Position


	As of March 31, 2023
	Less than 12 months				12 months or more				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Debt securities available for sale
U.S. Treasury securities	$	964	$	(32)	$	83,668	$	(2,518)	$	84,632	$	(2,550)
Obligations of U.S. government corporations and agencies	11,262		(223)		196		(8)		11,458		(231)
Obligations of states and political subdivisions	80,541		(755)		133,343		(20,035)		213,884		(20,790)
Asset-backed securities	16,954		(346)		452,193		(18,741)		469,147		(19,087)
Commercial mortgage-backed securities	7,634		(290)		101,193		(14,603)		108,827		(14,893)
Residential mortgage-backed securities	103,167		(5,778)		1,122,195		(194,821)		1,225,362		(200,599)
Corporate debt securities	17,362		(1,213)		209,280		(21,220)		226,642		(22,433)
Debt securities available for sale with gross unrealized losses	$	237,884	$	(8,637)	$	2,102,068	$	(271,946)	$	2,339,952	$	(280,583)



	12 months or more			Total
		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
Debt securities held to maturity
Commercial mortgage-backed securities		$	406,940	$	(63,198)	$	406,940	$	(63,198)
Residential mortgage-backed securities		373,713		(63,708)		373,713		(63,708)
Debt securities held to maturity with gross unrecognized losses		$	780,653	$	(126,906)	$	780,653	$	(126,906)


	As of December 31, 2022
	Less than 12 months				12 months or more				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Debt securities available for sale
U.S. Treasury securities1	$	74	$	—	$	113,987	$	(3,744)	$	114,061	$	(3,744)
Obligations of U.S. government corporations and agencies	19,603		(321)		—		—		19,603		(321)
Obligations of states and political subdivisions	166,147		(10,059)		75,217		(16,016)		241,364		(26,075)
Asset-backed securities	390,164		(15,648)		79,711		(4,035)		469,875		(19,683)
Commercial mortgage-backed securities	89,428		(12,623)		18,966		(3,406)		108,394		(16,029)
Residential mortgage-backed securities	366,221		(38,111)		876,668		(182,606)		1,242,889		(220,717)
Corporate debt securities	39,037		(5,079)		204,310		(19,556)		243,347		(24,635)
Debt securities available for sale with gross unrealized losses	$	1,070,674	$	(81,841)	$	1,368,859	$	(229,363)	$	2,439,533	$	(311,204)



	Less than 12 months				12 months or more				Total
	Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
Debt securities held to maturity
Commercial mortgage-backed securities	$	58,065	$	(8,009)	$	353,017	$	(55,729)	$	411,082	$	(63,738)
Residential mortgage-backed securities	—		—		374,213		(69,279)		374,213		(69,279)
Debt securities held to maturity with gross unrecognized losses	$	58,065	$	(8,009)	$	727,230	$	(125,008)	$	785,295	$	(133,017)

___________________________________________

1.Unrealized losses for U.S. Treasury securities that have been in a continuous unrealized loss position for less than 12 months were insignificant, rounding to zero thousand.

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


	As of March 31, 2023
	Available for Sale			Held to Maturity			Total
Debt securities with gross unrealized or unrecognized losses, fair value	$	2,339,952		$	780,653		$	3,120,605
Gross unrealized or unrecognized losses on debt securities	280,583			126,906			407,489
Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses	12.0		%	16.3		%	13.1		%

Count of debt securities	1,058			55			1,113
Count of debt securities in an unrealized or unrecognized loss position	947			55			1,002


	As of December 31, 2022
	Available for Sale			Held to Maturity			Total
Debt securities with gross unrealized or unrecognized losses, fair value	$	2,439,533		$	785,295		$	3,224,828
Gross unrealized or unrecognized losses on debt securities	311,204			133,017			444,221
Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses	12.8		%	16.9		%	13.8		%

Count of debt securities	1,091			55			1,146
Count of debt securities in an unrealized or unrecognized loss position	1,032			55			1,087

Unrealized and unrecognized 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 or unrecognized 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 debt securities, and the impairment related to noncredit factors is recognized in AOCI, net of applicable taxes. As of March 31, 2023, 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 - Schedule of allowance for loan losses and recorded investments in portfolio loans, by category (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Portfolio Loans
Collectively Evaluated for Impairment	$ 7,770,878	$ 7,710,055
Individually Evaluated for Impairment	12,930	15,647
Total	7,783,808	7,725,702
ACL Attributed to Portfolio Loans
Collectively Evaluated for Impairment	88,533	87,107
Individually Evaluated for Impairment	3,194	4,501
Total	91,727	91,608	$ 88,213	$ 87,887
Total commercial loans
Portfolio Loans
Collectively Evaluated for Impairment	5,803,878	5,753,438
Individually Evaluated for Impairment	11,825	13,058
Total	5,815,703	5,766,496
ACL Attributed to Portfolio Loans
Collectively Evaluated for Impairment	60,687	64,140
Individually Evaluated for Impairment	3,169	4,476
Total	63,856	68,616
Commercial
Portfolio Loans
Collectively Evaluated for Impairment	1,931,413	1,967,580
Individually Evaluated for Impairment	5,745	6,574
Total	1,937,158	1,974,154
ACL Attributed to Portfolio Loans
Collectively Evaluated for Impairment	22,451	21,384
Individually Evaluated for Impairment	1,825	2,476
Total	24,276	23,860	24,173	23,855
Commercial real estate
Portfolio Loans
Collectively Evaluated for Impairment	3,318,456	3,255,636
Individually Evaluated for Impairment	6,080	6,237
Total	3,324,536	3,261,873
ACL Attributed to Portfolio Loans
Collectively Evaluated for Impairment	33,077	36,299
Individually Evaluated for Impairment	1,344	2,000
Total	34,421	38,299	37,339	38,249
Real estate construction
Portfolio Loans
Collectively Evaluated for Impairment	554,009	530,222
Individually Evaluated for Impairment	0	247
Total	554,009	530,469
ACL Attributed to Portfolio Loans
Collectively Evaluated for Impairment	5,159	6,457
Individually Evaluated for Impairment	0	0
Total	5,159	6,457	5,705	5,102
Total retail loans
Portfolio Loans
Collectively Evaluated for Impairment	1,967,000	1,956,617
Individually Evaluated for Impairment	1,105	2,589
Total	1,968,105	1,959,206
ACL Attributed to Portfolio Loans
Collectively Evaluated for Impairment	27,846	22,967
Individually Evaluated for Impairment	25	25
Total	27,871	22,992
Retail real estate
Portfolio Loans
Collectively Evaluated for Impairment	1,666,432	1,654,493
Individually Evaluated for Impairment	1,105	2,589
Total	1,667,537	1,657,082
ACL Attributed to Portfolio Loans
Collectively Evaluated for Impairment	24,230	18,168
Individually Evaluated for Impairment	25	25
Total	24,255	18,193	17,555	17,589
Retail other
Portfolio Loans
Collectively Evaluated for Impairment	300,568	302,124
Individually Evaluated for Impairment	0	0
Total	300,568	302,124
ACL Attributed to Portfolio Loans
Collectively Evaluated for Impairment	3,616	4,799
Individually Evaluated for Impairment	0	0
Total	$ 3,616	$ 4,799	$ 3,441	$ 3,092

Operating Segments and Related Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

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

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.

Banking services offered to individual customers include customary types of demand and savings deposits, money transfers, safe deposit services, individual retirement accounts and other fiduciary services, automated teller machines, and technology-based networks, as well as a variety of loan products including residential real estate, home equity lines of credit, and consumer loans. Banking services offered to corporate customers include commercial, commercial real estate, real estate construction, and agricultural loans, as well as commercial depository services such as cash management.

The FirsTech Operating Segment

The FirsTech operating segment provides comprehensive and innovative payment technology solutions. FirsTech's multi-channel payment platform allows businesses to collect payments from their customers in a variety of ways, to enable fast, frictionless payments. Payment method vehicles include, but are not limited to, text-based mobile bill pay; interactive voice response; 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.

FirsTech's client base represents a diverse set of industries, with a higher concentration in highly regulated industries, such as financial institutions, utility, insurance, and telecommunications industries.

The Wealth Management Operating Segment

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.

Wealth management services tailored to individuals include trust and estate advisory services and financial planning. Business services include business succession planning and employee retirement plan services. Services for foundations include investment strategy consulting and fiduciary services.

Segment Financial Information

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 operating segments are the same as those described in the summary of significant accounting policies in “Note 1. Significant Accounting Policies” in the Company’s 2022 Annual Report. The Company accounts for intersegment revenue and transfers at current market value.


	Goodwill				Total Assets
	As of				As of
	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Operating segment
Banking	$	294,773	$	294,773	$	12,206,562	$	12,199,960
FirsTech	8,992		8,992		47,750		48,715
Wealth Management	14,108		14,108		87,878		84,082
Other	—		—		2,365		3,920
Consolidated total	$	317,873	$	317,873	$	12,344,555	$	12,336,677


	Three Months Ended March 31,
		2023		2022
Net interest income
Banking		$	89,890	$	73,832
FirsTech		13		18

Other		(4,046)		(3,794)
Total net interest income		$	85,857	$	70,056

Noninterest income
Banking		$	12,421	$	15,286
FirsTech		5,674		5,419
Wealth Management		14,926		15,776
Other		(1,173)		(709)
Total noninterest income		$	31,848	$	35,772

Noninterest expense
Banking		$	54,651	$	55,567
FirsTech		5,739		4,683
Wealth Management		8,534		8,265
Other		1,479		1,861
Total noninterest expense		$	70,403	$	70,376

Income before income taxes
Banking		$	46,707	$	33,804
FirsTech		(52)		754
Wealth Management		6,392		7,511
Other		(6,698)		(6,364)
Total income before income taxes		$	46,349	$	35,705

Net income
Banking		$	36,835	$	26,451
FirsTech		(38)		550
Wealth Management		4,858		5,840
Other		(4,869)		(4,402)
Total net income		$	36,786	$	28,439

- 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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

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

+ Details

Outstanding Commitments and Contingent Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

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


	As of
	March 31, 2023		December 31, 2022
Financial instruments whose contract amounts represent credit risk
Commitments to extend credit	$	2,066,438	$	1,991,769
Standby letters of credit	37,472		33,008
Total commitments	$	2,103,910	$	2,024,777

Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

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,
		2023		2022
Net income		$	36,786	$	28,439

Weighted average number of common shares outstanding, basic		55,397,989		55,427,696
Dilutive effect of common stock equivalents:
Options		—		4,568
Warrants		1,296		1,855
RSU awards		651,777		703,574
PSU awards		90,645		16,378
DSU awards		24,345		29,373
ESPP		13,554		11,502
Weighted average number of common shares outstanding, diluted		56,179,606		56,194,946

Basic earnings per common share		$	0.66	$	0.51
Diluted earnings per common share		0.65		0.51

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

Average 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,
		2023	2022
Anti-dilutive common stock equivalents
Options		22,806	—


PSU awards		265,459	241,452

Total anti-dilutive common stock equivalents		288,265	241,452

Fair Value Measurements - Schedule of quantitative information about Level 3 fair value measurements (Details) $ in Thousands	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value
Loans evaluated individually, net of related allowance	$ 12,930	$ 15,647
Fair Value, Nonrecurring \| Loans evaluated individually, net of related allowance
Fair Value
Loans evaluated individually, net of related allowance	5,806	5,345
Fair Value, Nonrecurring \| OREO and other repossessed assets with subsequent impairment
Fair Value
OREO and other repossessed assets with subsequent impairment	639
Fair Value, Nonrecurring \| Bank property held for sale with impairment
Fair Value
Bank property held for sale with impairment	7,923	7,923
Fair Value, Nonrecurring \| Level 3 Inputs \| Loans evaluated individually, net of related allowance
Fair Value
Loans evaluated individually, net of related allowance	5,806	5,345
Fair Value, Nonrecurring \| Level 3 Inputs \| OREO and other repossessed assets with subsequent impairment
Fair Value
OREO and other repossessed assets with subsequent impairment	639
Fair Value, Nonrecurring \| Level 3 Inputs \| Bank property held for sale with impairment
Fair Value
Bank property held for sale with impairment	7,923	7,923
Fair Value, Nonrecurring \| Level 3 Inputs \| Appraisal of collateral \| Loans evaluated individually, net of related allowance
Fair Value
Loans evaluated individually, net of related allowance	5,806	5,345
Fair Value, Nonrecurring \| Level 3 Inputs \| Appraisal of collateral \| OREO and other repossessed assets with subsequent impairment
Fair Value
OREO and other repossessed assets with subsequent impairment	639
Fair Value, Nonrecurring \| Level 3 Inputs \| Appraisal of collateral or real estate listing price \| Bank property held for sale with impairment
Fair Value
Bank property held for sale with impairment	$ 7,923	$ 7,923
Measurement Input, Comparability Adjustment \| Fair Value, Nonrecurring \| Level 3 Inputs \| Appraisal of collateral \| Loans evaluated individually, net of related allowance \| Minimum
Range (Weighted Average)
Loans evaluated individually, net of related allowance	(0.208)	(0.227)
Measurement Input, Comparability Adjustment \| Fair Value, Nonrecurring \| Level 3 Inputs \| Appraisal of collateral \| Loans evaluated individually, net of related allowance \| Maximum
Range (Weighted Average)
Loans evaluated individually, net of related allowance	(1.000)	(1.000)
Measurement Input, Comparability Adjustment \| Fair Value, Nonrecurring \| Level 3 Inputs \| Appraisal of collateral \| Loans evaluated individually, net of related allowance \| Weighted Average
Range (Weighted Average)
Loans evaluated individually, net of related allowance	(0.355)	(0.457)
Measurement Input, Comparability Adjustment \| Fair Value, Nonrecurring \| Level 3 Inputs \| Appraisal of collateral \| OREO and other repossessed assets with subsequent impairment \| Maximum
Range (Weighted Average)
OREO and other repossessed assets with subsequent impairment	(0.136)
Measurement Input, Comparability Adjustment \| Fair Value, Nonrecurring \| Level 3 Inputs \| Appraisal of collateral \| OREO and other repossessed assets with subsequent impairment \| Weighted Average
Range (Weighted Average)
OREO and other repossessed assets with subsequent impairment	(0.136)
Measurement Input, Comparability Adjustment \| Fair Value, Nonrecurring \| Level 3 Inputs \| Appraisal of collateral or real estate listing price \| Bank property held for sale with impairment \| Minimum
Range (Weighted Average)
Bank property held for sale with impairment	(0.007)	(0.007)
Measurement Input, Comparability Adjustment \| Fair Value, Nonrecurring \| Level 3 Inputs \| Appraisal of collateral or real estate listing price \| Bank property held for sale with impairment \| Maximum
Range (Weighted Average)
Bank property held for sale with impairment	(0.701)	(0.701)
Measurement Input, Comparability Adjustment \| Fair Value, Nonrecurring \| Level 3 Inputs \| Appraisal of collateral or real estate listing price \| Bank property held for sale with impairment \| Weighted Average
Range (Weighted Average)
Bank property held for sale with impairment	(0.351)	(0.351)

Portfolio Loans -Summary of portfolio loans that are past due and still accruing or on a non-accrual status (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Commercial loans	$ 7,783,808	$ 7,725,702
90 days past due and still accruing	500	673
Non-accrual Loans	14,714	15,067
30 to 59 days past due and still accruing
Financing Receivable, Past Due [Line Items]
Commercial loans	4,295	5,249
60 to 89 days past due and still accruing
Financing Receivable, Past Due [Line Items]
Commercial loans	1,177	1,299
Past due and non-accrual commercial loans
Financing Receivable, Past Due [Line Items]
Commercial loans	5,815,703	5,766,496
90 days past due and still accruing	0	0
Non-accrual Loans	10,971	11,818
Past due and non-accrual commercial loans \| 30 to 59 days past due and still accruing
Financing Receivable, Past Due [Line Items]
Commercial loans	522	126
Past due and non-accrual commercial loans \| 60 to 89 days past due and still accruing
Financing Receivable, Past Due [Line Items]
Commercial loans	1	0
Commercial
Financing Receivable, Past Due [Line Items]
Commercial loans	1,937,158	1,974,154
90 days past due and still accruing	0	0
Non-accrual Loans	5,410	6,174
Commercial \| 30 to 59 days past due and still accruing
Financing Receivable, Past Due [Line Items]
Commercial loans	78	2
Commercial \| 60 to 89 days past due and still accruing
Financing Receivable, Past Due [Line Items]
Commercial loans	1	0
Commercial real estate
Financing Receivable, Past Due [Line Items]
Commercial loans	3,324,536	3,261,873
90 days past due and still accruing	0	0
Non-accrual Loans	5,561	5,644
Commercial real estate \| 30 to 59 days past due and still accruing
Financing Receivable, Past Due [Line Items]
Commercial loans	444	124
Commercial real estate \| 60 to 89 days past due and still accruing
Financing Receivable, Past Due [Line Items]
Commercial loans	0	0
Past due and non-accrual retail loans
Financing Receivable, Past Due [Line Items]
Commercial loans	1,968,105	1,959,206
90 days past due and still accruing	500	673
Non-accrual Loans	3,743	3,249
Past due and non-accrual retail loans \| 30 to 59 days past due and still accruing
Financing Receivable, Past Due [Line Items]
Commercial loans	3,773	5,123
Past due and non-accrual retail loans \| 60 to 89 days past due and still accruing
Financing Receivable, Past Due [Line Items]
Commercial loans	1,176	1,299
Retail real estate
Financing Receivable, Past Due [Line Items]
Commercial loans	1,667,537	1,657,082
90 days past due and still accruing	472	673
Non-accrual Loans	3,699	3,096
Retail real estate \| 30 to 59 days past due and still accruing
Financing Receivable, Past Due [Line Items]
Commercial loans	3,120	4,709
Retail real estate \| 60 to 89 days past due and still accruing
Financing Receivable, Past Due [Line Items]
Commercial loans	1,169	1,239
Retail other
Financing Receivable, Past Due [Line Items]
Commercial loans	300,568	302,124
90 days past due and still accruing	28	0
Non-accrual Loans	44	153
Retail other \| 30 to 59 days past due and still accruing
Financing Receivable, Past Due [Line Items]
Commercial loans	653	414
Retail other \| 60 to 89 days past due and still accruing
Financing Receivable, Past Due [Line Items]
Commercial loans	$ 7	$ 60

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

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, 2023			December 31, 2022
Lease balances
Right of use assets	$	12,291		$	12,829
Lease liabilities	12,515			12,995

Supplemental information
Year through which lease terms extend	2037			2037
Weighted average remaining lease term, in years	8.82 years			8.90 years
Weighted average discount rate	3.49		%	3.45		%

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,
		2023		2022
Lease costs
Operating lease costs		$	628	$	617
Variable lease costs		5		128
Short-term lease costs		6		4
Total lease cost1		$	639	$	749

Cash flows related to leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments		$	570	$	631
Operating lease cash flows – Liability reduction		479		585
Right of use assets obtained during the period in exchange for operating lease liabilities		4		55

___________________________________________

1.Lease costs are included in net occupancy and equipment expense in the 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, 2023
Rent commitments
Remainder of 2023	$	1,650
2024	1,933
2025	1,716
2026	1,441
2027	1,276
2028	1,255
Thereafter	5,477
Total undiscounted cash flows	14,748
Less: Amounts representing interest	2,233
Present value of net future minimum lease payments	$	12,515

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):


	Three Months Ended March 31,
		2023		2022
Rental income		$	191	$	230

Stock-Based Compensation - 2021 Employee Stock Purchase Plan (Details) - USD ($)		3 Months Ended
	Jul. 01, 2021	Mar. 31, 2023	Mar. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock option compensation expense		$ 1,669,000	$ 1,909,000
Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock option compensation expense		0	$ 0
Unrecognized stock option compensation expense		$ 0
2021 ESPP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Discount through voluntary payroll deductions	15.00%
Remaining shares available for issuance (in shares)	600,000	481,865

Portfolio Loans

3 Months Ended

Mar. 31, 2023

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Portfolio Loans

Loan Categories

The Company’s lending can be summarized in two primary categories: commercial and retail. Lending is further classified into five primary areas of loans: commercial loans, commercial real estate loans, real estate construction loans, retail real estate loans, and retail other loans. Distributions of the loan portfolio by loan category and class is presented in the following table (dollars in thousands):


	As of
	March 31, 2023		December 31, 2022
Commercial loans
Commercial	$	1,937,158	$	1,974,154
Commercial real estate	3,324,536		3,261,873
Real estate construction	554,009		530,469
Total commercial loans	5,815,703		5,766,496
Retail loans
Retail real estate	1,667,537		1,657,082
Retail other	300,568		302,124
Total retail loans	1,968,105		1,959,206

Total portfolio loans	7,783,808		7,725,702
ACL	(91,727)		(91,608)
Portfolio loans, net	$	7,692,081	$	7,634,094

Net deferred loan origination costs included in the balances above were $13.7 million as of March 31, 2023, compared to $14.0 million as of December 31, 2022. Net accretable purchase accounting adjustments included in the balances above reduced loans by $5.5 million as of March 31, 2023, and $5.9 million as of December 31, 2022. Commercial balances include loans originated under the PPP with an amortized cost of $0.8 million as of both March 31, 2023, and December 31, 2022.

The Company did not purchase any retail real estate loans during the three months ended March 31, 2023, or 2022.

Pledged Loans

The Company had loans pledged to the FHLB and Federal Reserve for liquidity as set forth in the table below (dollars in thousands):


	As of
	March 31, 2023		December 31, 2022
Pledged loans
FHLB	$	5,065,913	$	5,095,448
Federal Reserve Bank	825,410		804,718
Total pledged loans	$	5,891,323	$	5,900,166

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 and class of portfolio loans (dollars in thousands):


	As of March 31, 2023
	Pass			Watch		Special Mention		Substandard		Substandard Non-accrual		Total
Commercial loans
Commercial	$	1,624,656		$	208,613	$	42,827	$	55,652	$	5,410	$	1,937,158
Commercial real estate	2,888,970			362,187		43,195		24,623		5,561		3,324,536
Real estate construction	531,786			16,819		—		5,404		—		554,009
Total commercial loans	5,045,412			587,619		86,022		85,679		10,971		5,815,703
Retail loans
Retail real estate	1,649,407			11,722		503		2,206		3,699		1,667,537
Retail other	300,524			—		—		—		44		300,568
Total retail loans	1,949,931		1,949,931	11,722		503		2,206		3,743		1,968,105
Total portfolio loans	$	6,995,343		$	599,341	$	86,525	$	87,885	$	14,714	$	7,783,808


	As of December 31, 2022
	Pass			Watch		Special Mention		Substandard		Substandard Non-accrual		Total
Commercial loans
Commercial	$	1,668,495		$	201,758	$	46,540	$	51,187	$	6,174	$	1,974,154
Commercial real estate	2,851,709			326,455		43,526		34,539		5,644		3,261,873
Real estate construction	502,904			25,164		1		2,400		—		530,469
Total commercial loans	5,023,108			553,377		90,067		88,126		11,818		5,766,496
Retail loans
Retail real estate	1,639,599			10,520		1,338		2,529		3,096		1,657,082
Retail other	301,971			—		—		—		153		302,124
Total retail loans	1,941,570		1,941,570	10,520		1,338		2,529		3,249		1,959,206
Total portfolio loans	$	6,964,678		$	563,897	$	91,405	$	90,655	$	15,067	$	7,725,702

Risk grades of portfolio loans and net charge-offs are presented in the tables below by loan class, further sorted by origination year (dollars in thousands):


	As of and For The Three Months Ended March 31, 2023
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans		Total
Risk Grade Ratings	2023		2022		2021		2020		2019		Prior
Commercial
Pass	$	193,301	$	326,112	$	237,528	$	130,503	$	45,737	$	152,200	$	539,275	$	1,624,656
Watch	19,141		44,289		47,474		2,758		6,384		5,162		83,405		208,613
Special Mention	—		1,682		2,811		1,340		652		17,343		18,999		42,827
Substandard	19,386		1,360		1,143		526		6,229		2,030		24,978		55,652
Substandard non-accrual	94		—		2,976		205		133		2		2,000		5,410
Total commercial	231,922		373,443		291,932		135,332		59,135		176,737		668,657		1,937,158
Current period charge-offs	—		—		400		—		—		—		—		400

Commercial real estate
Pass	139,599		882,834		810,278		457,122		279,737		306,763		12,637		2,888,970
Watch	29,344		65,687		75,032		57,391		89,469		40,302		4,962		362,187
Special Mention	816		7,001		4,365		15,293		3,743		11,977		—		43,195
Substandard	11,604		5,975		1,095		3,394		1,888		667		—		24,623
Substandard non-accrual	—		604		3,847		30		—		1,080		—		5,561
Total commercial real estate	181,363		962,101		894,617		533,230		374,837		360,789		17,599		3,324,536
Current period charge-offs	—		—		—		—		—		539		—		539

Real estate construction
Pass	38,451		219,520		179,369		69,767		1,447		3,510		19,722		531,786
Watch	12		4,454		9,230		3,077		46		—		—		16,819

Substandard	—		5,404		—		—		—		—		—		5,404

Total real estate construction	38,463		229,378		188,599		72,844		1,493		3,510		19,722		554,009
Current period charge-offs	—		—		—		—		—		—		—		—

Retail real estate
Pass	62,890		394,383		439,515		171,450		75,296		307,826		198,047		1,649,407
Watch	546		2,989		2,952		1,332		1,423		974		1,506		11,722
Special Mention	55		58		—		—		—		390		—		503
Substandard	—		75		361		189		82		1,256		243		2,206
Substandard non-accrual	—		10		238		159		104		2,387		801		3,699
Total retail real estate	63,491		397,515		443,066		173,130		76,905		312,833		200,597		1,667,537
Current period charge-offs	—		—		—		—		—		5		—		5

Retail other
Pass	35,635		123,857		32,214		11,275		10,581		4,278		82,684		300,524



Substandard non-accrual	—		6		35		3		—		—		—		44
Total retail other	35,635		123,863		32,249		11,278		10,581		4,278		82,684		300,568
Current period charge-offs	$	—	$	36	$	102	$	1	$	—	$	98	$	—	$	237

Total portfolio loans	$	550,874	$	2,086,300	$	1,850,463	$	925,814	$	522,951	$	858,147	$	989,259	$	7,783,808
Total current period charge-offs	$	—	$	36	$	502	$	1	$	—	$	642	$	—	$	1,181


	As of and For The Year Ended December 31, 2022
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans		Total
Risk Grade Ratings	2022		2021		2020		2019		2018		Prior
Commercial
Pass	$	479,893	$	266,122	$	136,445	$	52,046	$	50,764	$	135,000	$	548,225	$	1,668,495
Watch	54,195		49,382		3,288		7,201		1,258		2,160		84,274		201,758
Special Mention	1,958		937		1,642		974		1,000		17,024		23,005		46,540
Substandard	8,926		1,165		570		6,671		2,382		5,191		26,282		51,187
Substandard non-accrual	21		3,292		226		135		—		100		2,400		6,174
Total commercial	544,993		320,898		142,171		67,027		55,404		159,475		684,186		1,974,154

Commercial real estate
Pass	883,688		819,133		478,452		297,525		161,409		198,419		13,083		2,851,709
Watch	77,346		56,113		64,282		96,664		21,592		5,758		4,700		326,455
Special Mention	11,943		5,389		12,386		1,420		6,917		5,471		—		43,526
Substandard	5,340		13,528		3,454		1,907		10,248		62		—		34,539
Substandard non-accrual	—		3,959		33		—		1,647		5		—		5,644
Total commercial real estate	978,317		898,122		558,607		397,516		201,813		209,715		17,783		3,261,873

Real estate construction
Pass	219,112		191,724		68,015		1,490		1,901		1,751		18,911		502,904
Watch	8,530		12,019		3,169		48		—		1,398		—		25,164
Special Mention	—		—		—		1		—		—		—		1
Substandard	2,400		—		—		—		—		—		—		2,400

Total real estate construction	230,042		203,743		71,184		1,539		1,901		3,149		18,911		530,469

Retail real estate
Pass	396,547		456,158		175,148		77,569		56,887		267,387		209,903		1,639,599
Watch	2,928		2,991		1,846		1,444		1,063		27		221		10,520
Special Mention	945		—		—		—		—		393		—		1,338
Substandard	77		732		198		81		141		1,293		7		2,529
Substandard non-accrual	10		191		107		32		390		1,708		658		3,096
Total retail real estate	400,507		460,072		177,299		79,126		58,481		270,808		210,789		1,657,082

Retail other
Pass	134,567		43,512		13,141		13,086		5,646		991		91,028		301,971



Substandard non-accrual	14		134		3		—		—		2		—		153
Total retail other	134,581		43,646		13,144		13,086		5,646		993		91,028		302,124

Total portfolio loans	$	2,288,440	$	1,926,481	$	962,405	$	558,294	$	323,245	$	644,140	$	1,022,697	$	7,725,702

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, 2023
	Loans past due, still accruing						Non-accrual Loans
	30-59 Days		60-89 Days		90+Days
Past due and non-accrual loans
Commercial loans:
Commercial	$	78	$	1	$	—	$	5,410
Commercial real estate	444		—		—		5,561

Past due and non-accrual commercial loans	522		1		—		10,971
Retail loans:
Retail real estate	3,120		1,169		472		3,699
Retail other	653		7		28		44
Past due and non-accrual retail loans	3,773		1,176		500		3,743
Total past due and non-accrual loans	$	4,295	$	1,177	$	500	$	14,714


	As of December 31, 2022
	Loans past due, still accruing						Non-accrual Loans
	30-59 Days		60-89 Days		90+Days
Past due and non-accrual loans
Commercial loans:
Commercial	$	2	$	—	$	—	$	6,174
Commercial real estate	124		—		—		5,644

Past due and non-accrual commercial loans	126		—		—		11,818
Retail loans:
Retail real estate	4,709		1,239		673		3,096
Retail other	414		60		—		153
Past due and non-accrual retail loans	5,123		1,299		673		3,249
Total past due and non-accrual loans	$	5,249	$	1,299	$	673	$	15,067

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 $0.4 million and $0.2 million for the three months ended March 31, 2023, and 2022, respectively. The amount of interest collected on those loans and recognized on a cash basis that was included in interest income was insignificant for the three months ended March 31, 2023, and was $0.4 million for the three months ended March 31, 2022.

Loan Modification Disclosures Pursuant to ASU 2022-02


	As of March 31, 2023
	Payment Deferral1		% of Total Class of Financing Receivable2		Term Extension3		% of Total Class of Financing Receivable
Loan class:
Commercial	$	489	—	%	$	25,155	1.3	%
Commercial real estate	—		—	%	12,698		0.4	%



Total of loans modified during the period4	$	489	—	%	$	37,853	0.5	%

___________________________________________

2.Loans with payment deferrals represent an insignificant portion of of commercial loans and total loans, rounding to zero percent.

3.Modifications to extend loan terms also included, in most cases, interest rate increases during the extension period.

4.All modifications were for loans classified as substandard.

The following table summarizes the financial effects of loan modifications made during the three months ended March 31, 2023, for borrowers experiencing financial difficulty:

Weighted Average Term Extension

Loan class:

Commercial

9.1 months

Commercial real estate

5.8 months

Total financial effect

8.0 months

First Busey closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following table depicts the payment performance of loans modified on or after January 1, 2023, the date we adopted ASU 2022-02 (dollars in thousands):


	As of March 31, 2023
	Current		30-89 Days		90+ Days
Loan class:
Commercial	$	25,644	$	—	$	—
Commercial real estate	12,698		—		—



Amortized cost of modified loans	$	38,342	$	—	$	—

TDR Disclosures Prior to the Adoption of ASU 2022-02

At December 31, 2022, performing TDR’s were $3.0 million and non-performing TDR’s were $0.5 million.

No loans were newly designated as TDRs during the three months ended March 31, 2022. There were no TDRs entered into during the 12 months ended March 31, 2022, that had subsequent defaults during the three months ended March 31, 2022. Gross interest income that would have been recorded in the three months ended March 31, 2022, if TDRs had performed in accordance with their original terms compared with their modified terms, was insignificant.

Collateral Dependent Loans

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 $13.3 million and $14.0 million of collateral dependent loans secured by real estate or business assets as of March 31, 2023, and December 31, 2022, respectively.

Foreclosures

As of March 31, 2023, the Company had $1.1 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 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 loan category and class. 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 March 31, 2023
	Unpaid Principal Balance		Recorded Investment								Average Recorded Investment
			With No Allowance		With Allowance		Total		Related Allowance
Loans evaluated individually
Commercial loans:
Commercial	$	8,761	$	564	$	5,181	$	5,745	$	1,825	$	6,512
Commercial real estate	8,421		2,286		3,794		6,080		1,344		5,285
Real estate construction	—		—		—		—		—		206
Commercial loans evaluated individually	17,182		2,850		8,975		11,825		3,169		12,003
Retail loans:
Retail real estate	1,249		1,080		25		1,105		25		2,058

Retail loans evaluated individually	1,249		1,080		25		1,105		25		2,058
Total loans evaluated individually	$	18,431	$	3,930	$	9,000	$	12,930	$	3,194	$	14,061


	As of December 31, 2022
	Unpaid Principal Balance		Recorded Investment								Average Recorded Investment
			With No Allowance		With Allowance		Total		Related Allowance
Loans evaluated individually
Commercial loans:
Commercial	$	9,589	$	656	$	5,918	$	6,574	$	2,476	$	6,761
Commercial real estate	8,039		2,334		3,903		6,237		2,000		5,219
Real estate construction	247		247		—		247		—		260
Commercial loans evaluated individually	17,875		3,237		9,821		13,058		4,476		12,240
Retail loans:
Retail real estate	2,733		2,564		25		2,589		25		2,311

Retail loans evaluated individually	2,733		2,564		25		2,589		25		2,311
Total loans evaluated individually	$	20,608	$	5,801	$	9,846	$	15,647	$	4,501	$	14,551

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. Due to the continued economic uncertainty in the markets in which the Company operates, the Company will continue to utilize a forecast period of 12 months with an immediate reversion to historical loss rates beyond this forecast period in its ACL estimate.


	Three Months Ended March 31, 2023
	Commercial		Commercial Real Estate		Real Estate Construction		Retail Real Estate		Retail Other		Total
ACL balance, December 31, 2022	$	23,860	$	38,299	$	6,457	$	18,193	$	4,799	$	91,608
Provision for credit losses	695		(3,359)		(1,329)		5,948		(1,002)		953
Charged-off	(400)		(539)		—		(5)		(237)		(1,181)
Recoveries	121		20		31		119		56		347
ACL balance, March 31, 2023	$	24,276	$	34,421	$	5,159	$	24,255	$	3,616	$	91,727


	Three Months Ended March 31, 2022
	Commercial		Commercial Real Estate		Real Estate Construction		Retail Real Estate		Retail Other		Total
ACL balance, December 31, 2021	$	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 balance, March 31, 2022	$	24,173	$	37,339	$	5,705	$	17,555	$	3,441	$	88,213

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


	As of March 31, 2023
	Portfolio Loans						ACL Attributed to Portfolio Loans
	Collectively Evaluated for Impairment		Individually Evaluated for Impairment		Total		Collectively Evaluated for Impairment		Individually Evaluated for Impairment		Total
Portfolio loans and related ACL
Commercial loans:
Commercial	$	1,931,413	$	5,745	$	1,937,158	$	22,451	$	1,825	$	24,276
Commercial real estate	3,318,456		6,080		3,324,536		33,077		1,344		34,421
Real estate construction	554,009		—		554,009		5,159		—		5,159
Commercial loans and related ACL	5,803,878		11,825		5,815,703		60,687		3,169		63,856
Retail loans:
Retail real estate	1,666,432		1,105		1,667,537		24,230		25		24,255
Retail other	300,568		—		300,568		3,616		—		3,616
Retail loans and related ACL	1,967,000		1,105		1,968,105		27,846		25		27,871
Portfolio loans and related ACL	$	7,770,878	$	12,930	$	7,783,808	$	88,533	$	3,194	$	91,727


	As of December 31, 2022
	Portfolio Loans						ACL Attributed to Portfolio Loans
	Collectively Evaluated for Impairment		Individually Evaluated for Impairment		Total		Collectively Evaluated for Impairment		Individually Evaluated for Impairment		Total
Portfolio loans and related ACL
Commercial loans:
Commercial	$	1,967,580	$	6,574	$	1,974,154	$	21,384	$	2,476	$	23,860
Commercial real estate	3,255,636		6,237		3,261,873		36,299		2,000		38,299
Real estate construction	530,222		247		530,469		6,457		—		6,457
Commercial loans and related ACL	5,753,438		13,058		5,766,496		64,140		4,476		68,616
Retail loans:
Retail real estate	1,654,493		2,589		1,657,082		18,168		25		18,193
Retail other	302,124		—		302,124		4,799		—		4,799
Retail loans and related ACL	1,956,617		2,589		1,959,206		22,967		25		22,992
Portfolio loans and related ACL	$	7,710,055	$	15,647	$	7,725,702	$	87,107	$	4,501	$	91,608

Significant Accounting Policies (Details) $ in Thousands	3 Months Ended
Significant Accounting Policies (Details) $ in Thousands	Mar. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)
Accounting Policies [Abstract]
Total assets \| $	$ 12,344,555	$ 12,336,677
Number of operating segments	3
Number of reportable segments	3

- 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
-Publisher FASB
-Name Accounting Standards Codification
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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/2009/role/commonPracticeRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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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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-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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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 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

+ Details

Operating Segments and Related Information - Narrative (Details)	3 Months Ended
	Mar. 31, 2023 segment center
Segment Reporting [Abstract]
Number of reportable segments	3
Number of operating segments	3
Number of banking centers consolidated \| center	58

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows provided by (used in) operating activities
Net income	$ 36,786	$ 28,439
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for credit losses	953	(253)
Amortization of intangible assets	2,729	3,011
Amortization of mortgage servicing rights	749	980
Amortization of NMTC	2,221	1,341
Depreciation and amortization of premises and equipment	2,371	2,756
Net amortization (accretion) on portfolio loans	1,803	(36)
Net amortization (accretion) of premium (discount) on investment securities	4,231	5,930
Net amortization (accretion) of premium (discount) on time deposits	(80)	(124)
Net amortization (accretion) of premium (discount) on FHLB advances and other borrowings	252	212
Impairment of OREO and other repossessed assets	113	611
Impairment of mortgage servicing rights	1	(9)
Unrealized (gains) losses recognized on equity securities, net	620	720
(Gain) loss on sales of debt securities, net	(4)	(106)
(Gain) loss on sales of loans, net	(159)	(1,089)
(Gain) loss on sales of premises and equipment	(266)	(838)
(Gain) loss on life insurance proceeds	(707)	1
(Increase) decrease in cash surrender value of bank owned life insurance	(945)	(885)
Provision for deferred income taxes	(1,617)	(157)
Stock-based compensation	1,669	1,909
Mortgage loans originated for sale	(9,524)	(33,506)
Proceeds from sales of mortgage loans	8,219	51,350
(Increase) decrease in other assets	(2,119)	(16,429)
Increase (decrease) in other liabilities	(2,000)	(1,323)
Net cash provided by (used in) operating activities	45,296	42,505
Cash flows provided by (used in) investing activities
Purchases of equity securities	(14)	(5,948)
Purchases of debt securities available for sale	(2,449)	(274,964)
Proceeds from sales of equity securities	14	0
Proceeds from paydowns and maturities of debt securities held to maturity	11,708	9,585
Proceeds from paydowns and maturities of debt securities available for sale	107,492	166,709
Purchases of FHLB and other bank stock	(17,891)	0
Proceeds from the redemption of FHLB and other bank stock	6,086	0
Net (increase) decrease in loans	(60,807)	(83,392)
Cash paid for premiums on bank-owned life insurance	(76)	(96)
Proceeds from life insurance	2,026	217
Purchases of premises and equipment	(2,380)	(734)
Proceeds from disposition of premises and equipment	284	1,305
Proceeds from sales of OREO	42	331
Net cash provided by (used in) investing activities	44,035	(186,987)
Cash flows provided by (used in) financing activities
Net increase (decrease) in deposits	(270,031)	(176,617)
Net change in federal funds purchased and securities sold under agreements to repurchase	(18,829)	(14,471)
Proceeds from FHLB advances	265,000	0
Repayment of FHLB advances	(173)	(168)
Repayment of other borrowings	(3,000)	(3,000)
Cash dividends paid	(13,268)	(12,739)
Purchase of treasury stock	(534)	(5,220)
Cash paid for withholding taxes on stock-based payments	(100)	(170)
Proceeds from stock warrants exercised	9	0
Net cash provided by (used in) financing activities	(40,926)	(212,385)
Net increase (decrease) in cash and cash equivalents	48,405	(356,867)
Cash and cash equivalents, beginning of period	227,164	836,095
Cash and cash equivalents, ending of period	275,569	479,228
Cash payments for:
Interest	19,961	3,647
Non-cash investing and financing activities:
OREO acquired in settlement of loans	64	132
Transfer of debt securities available for sale to held to maturity	$ 0	$ 985,199

Derivative Financial Instruments - Schedule of interest income (expense) recorded on swap transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative [Line Items]
Interest expense on swap transactions	$ (25,248)	$ (6,035)
Interest Rate Swap \| Cash Flow Hedging
Derivative [Line Items]
Interest income on swap transactions	383	685
Interest expense on swap transactions	(2,192)	(185)
Net interest income (expense) on swap transactions	$ (1,809)	$ 500

Deposits (Tables)

3 Months Ended

Mar. 31, 2023

Deposits [Abstract]

Schedule of composition of deposits

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


	As of
	March 31, 2023		December 31, 2022
Deposits
Noninterest-bearing demand deposits	$	3,173,783	$	3,393,666
Interest-bearing transaction deposits	2,648,116		2,857,818
Saving deposits and money market deposits	2,830,599		2,964,421
Time deposits	1,148,671		855,375
Total deposits	$	9,801,169	$	10,071,280

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


	As of
	March 31, 2023		December 31, 2022
Brokered savings deposits and money market deposits	$	6,005	$	1,303
Brokered time deposits	278		275
Aggregate amount of time deposits with a minimum denomination of $100,000	630,529		416,445
Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000	200,898		120,377

Schedule of maturities of time deposits

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


	As of March 31, 2023
Time deposits by schedule of maturities
Remainder of 2023	$	474,277
2024	596,731
2025	42,344
2026	17,183
2027	13,746
2028	3,851
Thereafter	539
Time deposits	$	1,148,671

Portfolio Loans- Distribution of portfolio loans (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	$ 7,783,808	$ 7,725,702
ACL	(91,727)	(91,608)	$ (88,213)	$ (87,887)
Portfolio loans, net	7,692,081	7,634,094
Total commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	5,815,703	5,766,496
ACL	(63,856)	(68,616)
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	1,937,158	1,974,154
ACL	(24,276)	(23,860)	(24,173)	(23,855)
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	3,324,536	3,261,873
ACL	(34,421)	(38,299)	(37,339)	(38,249)
Real estate construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	554,009	530,469
ACL	(5,159)	(6,457)	(5,705)	(5,102)
Total retail loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	1,968,105	1,959,206
ACL	(27,871)	(22,992)
Retail real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	1,667,537	1,657,082
ACL	(24,255)	(18,193)	(17,555)	(17,589)
Retail other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	300,568	302,124
ACL	$ (3,616)	$ (4,799)	$ (3,441)	$ (3,092)

Stock-Based Compensation - 2020 Equity Plan (Details)	Mar. 31, 2023 shares
2020 Equity Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Remaining shares available for issuance (in shares)	200,774

Earnings Per Common Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

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,
		2023		2022
Net income		$	36,786	$	28,439

Weighted average number of common shares outstanding, basic		55,397,989		55,427,696
Dilutive effect of common stock equivalents:
Options		—		4,568
Warrants		1,296		1,855
RSU awards		651,777		703,574
PSU awards		90,645		16,378
DSU awards		24,345		29,373
ESPP		13,554		11,502
Weighted average number of common shares outstanding, diluted		56,179,606		56,194,946

Basic earnings per common share		$	0.66	$	0.51
Diluted earnings per common share		0.65		0.51


	Three Months Ended March 31,
		2023	2022
Anti-dilutive common stock equivalents
Options		22,806	—


PSU awards		265,459	241,452

Total anti-dilutive common stock equivalents		288,265	241,452

Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Interest Rate Swap \| Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	$ 300,000
Interest Rate Swap \| Not Designated as Hedging Instrument
Derivative [Line Items]
Variable rate, commercial loans that are supported by the interest rate swap contracts	648,300	$ 576,900
Interest Rate Swap \| Cash Flow Hedging \| Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	350,000	350,000
Debt Swap \| Cash Flow Hedging
Derivative [Line Items]
Notional amount	50,000	$ 50,000
Debt Swap \| Cash Flow Hedging \| Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	$ 50,000

Borrowings - Term Loan (Details) - USD ($)	3 Months Ended
Borrowings - Term Loan (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022	Apr. 30, 2022	May 28, 2021
Term Loan
Short-Term Debt [Line Items]
Issuance of debt				$ 60,000,000
Long-term debt	$ 27,000,000	$ 30,000,000
Revolving Credit Facility
Short-Term Debt [Line Items]
Issuance of debt				$ 40,000,000
Quarterly payments on the term loan reduce the outstanding principal balance, amount	3,000,000
Second Amended and Restated Credit Agreement \| Term Loan
Short-Term Debt [Line Items]
Long-term debt	39,000,000
Long-term debt, current	12,000,000
Long term debt, noncurrent	27,000,000
Second Amended and Restated Credit Agreement \| Revolving Credit Facility
Short-Term Debt [Line Items]
Balance outstanding	$ 0
Second Amended and Restated Credit Agreement \| One-month LIBOR rate \| Term Loan
Short-Term Debt [Line Items]
Interest rate				1.75%
Third Amendment To Extend Credit Facility \| SOFR-indexed interest rate \| Term Loan
Short-Term Debt [Line Items]
Interest rate			1.80%

Fair Value Measurements - Schedule of estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial assets
Debt securities held to maturity	$ 780,653	$ 785,295
Portfolio loans, net	7,692,081	7,634,094
Financial liabilities
Short-term borrowings	615,881	351,054
Junior subordinated debt owed to unconsolidated trusts	71,855	71,810
Level 1 Inputs \| Carrying Amount
Financial assets
Cash and cash equivalents	275,569	227,164
Level 1 Inputs \| Fair Value
Financial assets
Cash and cash equivalents	275,569	227,164
Level 2 Inputs \| Carrying Amount
Financial assets
Debt securities held to maturity	907,559	918,312
Loans held for sale	2,714	1,253
Accrued interest receivable	42,854	43,372
Financial liabilities
Time deposits	1,148,671	855,375
Securities sold under agreements to repurchase	210,977	229,806
Short-term borrowings	615,881	351,054
Long-term debt	27,000	30,000
Junior subordinated debt owed to unconsolidated trusts	71,855	71,810
Accrued interest payable	9,265	3,978
Level 2 Inputs \| Fair Value
Financial assets
Debt securities held to maturity	780,653	785,295
Loans held for sale	2,756	1,276
Accrued interest receivable	42,854	43,372
Financial liabilities
Time deposits	1,122,686	830,596
Securities sold under agreements to repurchase	210,977	229,806
Short-term borrowings	615,899	351,085
Long-term debt	27,025	30,052
Junior subordinated debt owed to unconsolidated trusts	56,640	59,111
Accrued interest payable	9,265	3,978
Level 3 Inputs \| Carrying Amount
Financial assets
Portfolio loans, net	7,692,081	7,634,094
Mortgage servicing rights	5,158	5,861
Other servicing rights	1,813	1,914
Level 3 Inputs \| Fair Value
Financial assets
Portfolio loans, net	7,431,580	7,320,422
Mortgage servicing rights	17,748	18,284
Other servicing rights	2,242	2,331
Level 3 Inputs \| Subordinated Debt \| Carrying Amount
Financial liabilities
Long-term debt	222,245	222,038
Level 3 Inputs \| Subordinated Debt \| Fair Value
Financial liabilities
Long-term debt	$ 199,375	$ 208,562

Portfolio Loans - Summary of the financial effect of modifications (Details)	3 Months Ended
	Mar. 31, 2023
Loans identified as impaired
Total financial effect	8 months
Commercial
Loans identified as impaired
Total financial effect	9 months 3 days
Commercial real estate
Loans identified as impaired
Total financial effect	5 months 24 days

Fair Value Measurements - Schedule of financial assets and financial liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	$ 2,383,550	$ 2,461,393
Equity securities	10,915	11,535
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	84,632	114,061
Obligations of U.S. government corporations and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	11,627	19,779
Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	254,261	257,512
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	469,147	469,875
Commercial mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	108,827	108,394
Residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,225,934	1,243,256
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	229,122	248,516
Fair Value, Recurring \| Derivative assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	34,624	42,612
Fair Value, Recurring \| Derivative liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	58,547	72,462
Fair Value, Recurring \| U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	84,632	114,061
Fair Value, Recurring \| Obligations of U.S. government corporations and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	11,627	19,779
Fair Value, Recurring \| Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	254,261	257,512
Fair Value, Recurring \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	469,147	469,875
Fair Value, Recurring \| Commercial mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	108,827	108,394
Fair Value, Recurring \| Residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,225,934	1,243,256
Fair Value, Recurring \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	229,122	248,516
Fair Value, Recurring \| Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	10,915	11,535
Fair Value, Recurring \| Level 1 Inputs \| Derivative assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Fair Value, Recurring \| Level 1 Inputs \| Derivative liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Fair Value, Recurring \| Level 1 Inputs \| U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring \| Level 1 Inputs \| Obligations of U.S. government corporations and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring \| Level 1 Inputs \| Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring \| Level 1 Inputs \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring \| Level 1 Inputs \| Commercial mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring \| Level 1 Inputs \| Residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring \| Level 1 Inputs \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring \| Level 1 Inputs \| Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	0	0
Fair Value, Recurring \| Level 2 Inputs \| Derivative assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	34,600	42,607
Fair Value, Recurring \| Level 2 Inputs \| Derivative liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	58,547	72,462
Fair Value, Recurring \| Level 2 Inputs \| U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	84,632	114,061
Fair Value, Recurring \| Level 2 Inputs \| Obligations of U.S. government corporations and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	11,627	19,779
Fair Value, Recurring \| Level 2 Inputs \| Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	254,261	257,512
Fair Value, Recurring \| Level 2 Inputs \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	469,147	469,875
Fair Value, Recurring \| Level 2 Inputs \| Commercial mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	108,827	108,394
Fair Value, Recurring \| Level 2 Inputs \| Residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,225,934	1,243,256
Fair Value, Recurring \| Level 2 Inputs \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	229,122	248,516
Fair Value, Recurring \| Level 2 Inputs \| Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	10,915	11,535
Fair Value, Recurring \| Level 3 Inputs \| Derivative assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	24	5
Fair Value, Recurring \| Level 3 Inputs \| Derivative liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Fair Value, Recurring \| Level 3 Inputs \| U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring \| Level 3 Inputs \| Obligations of U.S. government corporations and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring \| Level 3 Inputs \| Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring \| Level 3 Inputs \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring \| Level 3 Inputs \| Commercial mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring \| Level 3 Inputs \| Residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring \| Level 3 Inputs \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Fair Value, Recurring \| Level 3 Inputs \| Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	$ 0	$ 0