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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2016	Feb. 28, 2017	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	FIRST BUSEY CORP /NV/
Entity Central Index Key	0000314489
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 746.4
Entity Common Stock, Shares Outstanding		38,231,654
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks (interest-bearing 2016 $75,006; 2015 $250,404)	$ 166,097	$ 319,280
Federal funds sold	609
Cash and cash equivalents	166,706	319,280
Securities available for sale, at fair value	759,811	834,838
Securities held to maturity, at amortized cost	47,820	49,832
Loans held for sale	256,319	9,351
Portfolio loans (net of allowance for loan losses 2016 $47,795; 2015 $47,487)	3,831,105	2,580,252
Premises and equipment, net	77,861	63,088
Goodwill	102,814	25,510
Other intangible assets, net	18,462	7,432
Cash surrender value of bank owned life insurance	79,720	43,103
Deferred tax assets, net	20,224	21,638
Other assets	64,328	44,652
Total assets	5,425,170	3,998,976
Deposits:
Noninterest-bearing	1,134,133	881,685
Interest-bearing	3,240,165	2,407,421
Total deposits	4,374,298	3,289,106
Securities sold under agreements to repurchase	189,157	172,972
Short-term borrowings	75,000
Long-term debt	80,000	80,000
Junior subordinated debt owed to unconsolidated trusts	70,868	55,000
Other liabilities	41,533	28,712
Total liabilities	4,830,856	3,625,790
Commitments and contingencies (See "Note 19. Outstanding Commitments and Contingent Liabilities")
Stockholders' Equity
Common stock, $.001 par value, authorized 66,666,667 shares; shares issued 2016 38,869,519; 2015 29,427,738	39	29
Surplus	781,716	591,053
Retained (deficit) earnings	(163,689)	(190,265)
Accumulated other comprehensive income	36	2,340
Total stockholders' equity before treasury stock	618,102	403,157
Common stock shares held in treasury at cost - 2016 633,232; 2015 732,887	(23,788)	(29,971)
Total stockholders' equity	594,314	373,186
Total liabilities and stockholders' equity	$ 5,425,170	$ 3,998,976

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED BALANCE SHEETS
Cash and due from banks, interest-bearing (in dollars)	$ 75,006	$ 250,404
Portfolio Loans, allowance for loan losses (in dollars)	$ 47,795	$ 47,487
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	66,666,667	66,666,667
Common stock, shares issued	38,869,519	29,427,738
Common stock shares held in treasury	633,232	732,887

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Interest income:
Interest and fees on loans held for sale and portfolio loans	$ 147,816	$ 100,395	$ 92,395
Interest and dividends on investment securities:
Taxable interest income	13,987	14,330	12,427
Non-taxable interest income	3,086	3,297	3,253
Total interest income	164,889	118,022	108,075
Interest expense:
Deposits	7,065	4,756	5,123
Federal funds purchased and securities sold under agreements to repurchase	393	182	186
Short-term borrowings	641	6
Long-term debt	220	46	7
Junior subordinated debt owed to unconsolidated trusts	1,910	1,217	1,183
Total interest expense	10,229	6,207	6,499
Net interest income	154,660	111,815	101,576
Provision for loan losses	5,550	1,600	2,000
Net interest income after provision for loan losses	149,110	110,215	99,576
Non-interest income:
Trust fees	20,302	20,363	19,559
Commissions and brokers' fees, net	2,839	3,096	2,716
Remittance processing	11,255	11,120	9,421
Service charges on deposit accounts	15,789	12,600	12,038
Other service charges and fees	7,464	6,483	6,238
Mortgage revenue	11,952	7,165	6,139
Security gains, net	1,232	380	776
Other income	4,336	3,585	2,054
Total non-interest income	75,169	64,792	58,941
Non-interest expense:
Salaries, wages and employee benefits	78,397	63,516	61,341
Net occupancy expense of premises	11,633	8,704	8,462
Furniture and equipment expenses	6,591	4,958	4,725
Data processing	20,645	12,940	10,879
Amortization of intangible assets	4,438	3,192	2,884
Regulatory expense	2,859	2,357	2,079
Other expense	23,299	19,638	17,839
Total non-interest expense	147,862	115,305	108,209
Income before income taxes	76,417	59,702	50,308
Income taxes	26,723	20,696	17,534
Net income	49,694	39,006	32,774
Preferred stock dividends		700	727
Net income available to common stockholders	$ 49,694	$ 38,306	$ 32,047
Basic earnings per common share (in dollars per share)	$ 1.42	$ 1.32	$ 1.11
Diluted earnings per common share (in dollars per share)	$ 1.40	$ 1.32	$ 1.10

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 49,694	$ 39,006	$ 32,774
Unrealized net (losses) gains on securities:
Unrealized net holding (losses) gains arising during period	(2,611)	(5,418)	2,902
Reclassification adjustment for (gains) included in net income	(1,232)	(380)	(776)
Other comprehensive (loss) income, before tax	(3,843)	(5,798)	2,126
Income tax (benefit) expense related to items of other comprehensive income	(1,539)	(2,321)	765
Other comprehensive (loss) income, net of tax	(2,304)	(3,477)	1,361
Comprehensive income	$ 47,390	$ 35,529	$ 34,135

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Preferred Stock	Common Stock	Surplus	Retained Earnings (Deficit)	Accumulated Other Comprehensive Income	Treasury Stock	Total
Balance at Dec. 31, 2013	$ 72,664	$ 29	$ 593,203	$ (225,722)	$ 4,456	$ (29,266)	$ 415,364
Increase (decrease) in shareholders' equity
Net income				32,774			32,774
Other comprehensive income (loss)					1,361		1,361
Issuance of 14,749, 15,292, 12,612 shares of treasury stock for employee stock purchase plan for the years 2016, 2015 and 2014, respectively			(481)			692	211
Net issuance of 43,396, 59,983, 6,206 shares of treasury stock for restricted stock unit vesting and related tax benefit for the years 2016, 2015 and 2014, respectively			(375)			341	(34)
Cash dividends on common stock at $0.68, $0.62 and $0.57 per share for the years December 2016, 2015 and 2014, respectively				(16,497)			(16,497)
Stock dividend equivalents restricted stock units at $0.68, $0.62 and $0.57 per share for the years 2016, 2015 and 2014, respectively			212	(212)
Stock-based employee compensation			1,187				1,187
Preferred stock dividends				(727)			(727)
Balance at Dec. 31, 2014	72,664	29	593,746	(210,384)	5,817	(28,233)	433,639
Increase (decrease) in shareholders' equity
Net income				39,006			39,006
Other comprehensive income (loss)					(3,477)		(3,477)
Issuance of 14,749, 15,292, 12,612 shares of treasury stock for employee stock purchase plan for the years 2016, 2015 and 2014, respectively			(590)			881	291
Net issuance of 43,396, 59,983, 6,206 shares of treasury stock for restricted stock unit vesting and related tax benefit for the years 2016, 2015 and 2014, respectively			(3,784)			3,643	(141)
Issuance of 612 shares of treasury stock						34	34
Cash dividends on common stock at $0.68, $0.62 and $0.57 per share for the years December 2016, 2015 and 2014, respectively				(17,919)			(17,919)
Stock dividend equivalents restricted stock units at $0.68, $0.62 and $0.57 per share for the years 2016, 2015 and 2014, respectively			268	(268)
Stock-based employee compensation			1,418				1,418
Preferred stock dividends				(700)			(700)
Purchase of 333,333 shares of treasury stock						(6,296)	(6,296)
Cash paid in lieu of fractional shares in reverse stock split			(5)				(5)
Redemption of SBLF	$ (72,664)						(72,664)
Balance at Dec. 31, 2015		29	591,053	(190,265)	2,340	(29,971)	373,186
Increase (decrease) in shareholders' equity
Net income				49,694			49,694
Other comprehensive income (loss)					(2,304)		(2,304)
Issuance of 14,749, 15,292, 12,612 shares of treasury stock for employee stock purchase plan for the years 2016, 2015 and 2014, respectively			(616)			929	313
Net issuance of 43,396, 59,983, 6,206 shares of treasury stock for restricted stock unit vesting and related tax benefit for the years 2016, 2015 and 2014, respectively			(3,477)			2,668	(809)
Net issuance of 41,771 shares of stock options exercised, net of shares redeemed			(2,587)			2,591	4
Stock issued for acquisition of Pulaski, net of stock issuance costs		10	195,188				195,198
Cash dividends on common stock at $0.68, $0.62 and $0.57 per share for the years December 2016, 2015 and 2014, respectively				(22,748)			(22,748)
Stock dividend equivalents restricted stock units at $0.68, $0.62 and $0.57 per share for the years 2016, 2015 and 2014, respectively			352	(352)
Stock dividend accrued on restricted stock awards assumed with the Pulaski acquisition at $0.34 per share				(18)			(18)
Stock-based employee compensation			1,803				1,803
Return of 261 equity trust shares						(5)	(5)
Balance at Dec. 31, 2016		$ 39	$ 781,716	$ (163,689)	$ 36	$ (23,788)	$ 594,314

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Issuance of shares of treasury stock for employee stock purchase plan	14,749	15,292	12,612
Issuance of shares of treasury stock for restricted stock unit vesting and related tax benefit	43,396	59,983	6,206
Stock Issued During Period, Shares, Treasury Stock Reissued	41,771	612
Cash dividends, common stock (in dollars per share)	$ 0.68	$ 0.62	$ 0.57
Stock dividends, restricted stock units (in dollars per share)	$ 0.68	$ 0.62	$ 0.57
Purchase of treasury stock		333,333
Return of equity trust shares	261
Pulaski
Stock dividends, accrued restricted stock awards (in dollars per share)	$ 0.34

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flows from Operating Activities
Net income	$ 49,694	$ 39,006	$ 32,774
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based and non-cash compensation	1,803	1,418	1,187
Depreciation	7,295	5,697	5,572
Amortization of intangible assets	4,438	3,192	2,884
Premises and equipment impairment	756	670
Provision for loan losses	5,550	1,600	2,000
Provision for deferred income taxes	2,953	2,985	12,715
Amortization of security premiums and discounts, net	6,877	8,360	7,305
Accretion of premiums and discounts on time deposits and trust preferred securities, net	(669)
Accretion of premiums and discounts on loans, net	(7,429)	(1,476)
Net security gains	(1,232)	(380)	(776)
Gain on sales of mortgage loans, net of origination costs	(28,299)	(5,843)	(4,723)
Mortgage loans originated for sale	(1,822,027)	(267,737)	(222,976)
Proceeds from sales of mortgage loans	1,767,220	276,377	231,139
Increase in cash surrender value of bank owned life insurance	(1,522)	(1,454)	(796)
Net losses (gains) on disposition of premises and equipment	251	355	(19)
Increase in deferred compensation	142	201	363
Change in assets and liabilities:
(Increase) decrease in other assets	(407)	(137)	2,112
Decrease in other liabilities	(6,288)	(1,329)	(650)
Net cash (used in) provided by operating activities	(20,894)	61,505	68,111
Cash Flows from Investing Activities
Purchase of securities classified available for sale	(180,447)	(235,291)	(182,123)
Purchase of securities classified held to maturity	(2,103)	(16,287)	(1,026)
Proceeds from sales of securities classified available for sale	52,587	25,068	74,113
Proceeds from maturities of securities classified available for sale	241,304	200,780	185,329
Proceeds from sales of securities classified held to maturity	399
Proceeds from maturities of securities classified held to maturity	3,811	480	10
Net increase in loans	(1,294)	(118,398)	(126,604)
Purchases of premises and equipment	(8,991)	(4,114)	(3,778)
Proceeds from disposition of premises and equipment	2,485	312	78
Proceeds from sale of OREO properties	4,498	1,090	2,739
Proceeds from the redemption of FHLB stock	35,397
Purchase of FHLB stock	(23,478)
Net cash received in acquisitions	25,575	12,114
Net cash provided by (used in) investing activities	149,743	(134,246)	(51,262)
Cash Flows from Financing Activities
Net decrease in certificates of deposit	(173,385)	(86,574)	(86,300)
Net increase in demand deposits, money market and savings accounts	31,322	232,931	118,010
Net (decrease) increase in federal funds purchased and securities sold under agreements to repurchase	(6,655)	(25,921)	26,545
Proceeds from short-term borrowings, net	(104,000)
Repayment of FHLB long term advances	(4,906)
Proceeds from long-term debt		30,000	50,000
Value of shares surrendered upon vesting of restricted stock units to satisfy tax obligations	(809)	(269)	(45)
Redemption of SBLF preferred stock		(72,664)
Cash dividends paid	(22,748)	(18,619)	(17,224)
Cash payment for fractional shares related to reverse stock split		(5)
Proceeds from stock options exercised	4
Common stock issuance costs	(246)
Purchase of treasury stock		(6,296)
Net cash (used in) provided by financing activities	(281,423)	52,583	90,986
Net (decrease) increase in cash and cash equivalents	(152,574)	(20,158)	107,835
Cash and cash equivalents, beginning of period	319,280	339,438	231,603
Cash and cash equivalents, ending of period	166,706	319,280	339,438
Cash Payments for:
Interest	9,674	6,282	6,665
Income taxes	20,186	17,170	6,395
Non-cash investing and financing activities:
Other real estate acquired in settlement of loans	$ 2,775	$ 1,251	$ 660

Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Significant Accounting Policies

Significant Accounting Policies

Note 1. Significant Accounting Policies

Description of business

First Busey Corporation is a Nevada corporation and a financial holding company. The Company’s subsidiaries provide retail and commercial banking services, remittance processing, and offer a full range of financial products and services, including depository, lending, security brokerage services, investment management and fiduciary services, to individual, corporate, institutional and governmental customers through its locations in Illinois, Missouri, southwest Florida and Indianapolis, Indiana. The Company and its subsidiaries are subject to competition from other financial institutions and non-financial institutions providing financial products and services. The Company and its subsidiaries are also subject to the regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies.

All share and per share information has been restated for all prior periods presented in this Annual Report on Form 10-K to give retroactive effect to the Reverse Stock Split.

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

Basis of consolidation

The Consolidated Financial Statements include the accounts of the Company and its subsidiaries: Busey Bank and its wholly-owned subsidiaries FirsTech, Inc. and Pulaski Service Corporation; and Busey Wealth Management, Inc. and its wholly-owned subsidiaries Busey Trust Company and Busey Capital Management, Inc. The Company and its subsidiaries maintain various LLCs that hold specific assets for risk mitigation purposes and are consolidated into these financial statements. All significant intercompany balances and transactions have been eliminated in consolidation.

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

The Consolidated Financial Statements of the Company have been prepared in conformity with GAAP and conform to predominant practice within the banking industry.

Use of estimates

In preparing the accompanying Consolidated Financial Statements in conformity with GAAP, the Company’s management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. 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 investment securities, fair value of assets acquired and liabilities assumed in business combinations and the determination of the allowance for loan losses.

Comprehensive income

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

Trust assets

Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit at the Company’s bank subsidiary, are not assets of the Company and, accordingly, are not included in the accompanying Consolidated Financial Statements. Busey Trust Company had assets under care of $5.4 billion and $5.1 billion at December 31, 2016 and 2015, respectively.

Cash flows

For purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents includes cash on hand, amounts due from banks and federal funds sold. Cash flows from federal funds purchased and sold, short-term borrowings, and securities sold under agreements to repurchase are reported net, since their original maturities are less than three months. Cash flows from loans and deposits are also reported net.

Securities

Securities classified as held to maturity are those debt securities that the Company intends to hold to maturity. Securities held to maturity are carried at cost, adjusted for amortization of premiums and accretion of discounts.

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

Declines in the fair value of debt securities below their amortized cost are evaluated to determine whether they are temporary or OTTI. If the Company (a) has the intent to sell a debt security or (b) more likely than not will be required to sell the debt security before its anticipated recovery, then the Company recognizes the entire unrealized loss in earnings as an OTTI loss. If neither of these conditions are met, the Company evaluates whether a credit loss exists. The impairment is separated into (x) the amount of the total impairment related to the credit loss and (y) the amount of total impairment related to all other factors. The amount of the total OTTI related to the credit loss is recognized in earnings and the amount related to all other factors is recognized in other comprehensive income.

The Company also evaluates whether the decline in fair value of an equity security is temporary or OTTI. In determining whether an unrealized loss on an equity security is temporary or OTTI, management considers various factors, including the magnitude and duration of the impairment, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to hold the equity security to forecasted recovery.

Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Loans held for sale

Loans held for sale consist of loans that management does not intend to hold until maturity. These loans consist of mortgage loans conforming to established guidelines and held for sale to investors and the secondary mortgage market. Loans held for sale are reflected at their fair values, as the Company has elected to apply the fair value method of accounting, with changes in fair value recognized in earnings, consistent with the provisions in ASC Topic 820, Fair Value Measurement. The Company accounted for loans held for sale that were originated prior to January 1, 2016 under the lower of cost or fair value option, with any corresponding adjustments recorded as a valuation adjustment, if necessary. Fair value adjustments are recorded as an adjustment to mortgage revenues. The fair value of the loans held for sale are measured using observable quoted market or contract prices or market price equivalents, which are consistent with those used by other market participants. Consistent with the fair value principles of ASC Topic 820, any direct loan origination fees and costs related to loans accounted for at fair value are recognized when the loans are sold.

Loan servicing

Servicing assets are recognized as separate assets when rights are acquired or retained through the sale of mortgage loans. Mortgage servicing rights are initially recorded at fair value. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. Capitalized servicing rights are reported in other assets and are amortized into other income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets.

Mortgage servicing rights are periodically evaluated for impairment based on the fair value of those rights as compared to book value. Fair values are estimated using discounted cash flows based on current expected future prepayment rates. For purposes of measuring impairment, the rights must be stratified by one or more predominant risk characteristics of the underlying loans. The Company stratifies its capitalized mortgage servicing rights based on the type of the underlying loans. The amount of impairment recognized is the amount, if any, by which the amortized cost of the rights for each stratum exceeds its fair value. If the Company later determines that all or a portion of the impairment no longer exists for a particular group of loans, a reduction of the allowance may be recorded as an increase to income. The Company had no impairment recorded at December 31, 2016 and 2015.

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

Portfolio loans

Loan receivables that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at the principal balance outstanding, net of purchase premiums and discounts, charge-offs, the allowance for loan losses, and any deferred origination fees or costs on loans.

Retail loan origination fees, net of certain direct loan origination costs, are deferred and the net amount is amortized as an adjustment of the related loan’s yield. The Company is generally amortizing these amounts over the contractual life. However, for long-term, fixed-rate residential mortgages, the Company has anticipated prepayments and assumes an estimated economic life of five years or less. Material commercial loan origination fees are amortized over the life of the loan which is usually a term of three years or less. Commitment fees and costs are generally based upon a percentage of a customer’s maximum line of credit or fees related to standby letters of credit and are recognized as collected.

Interest income is accrued daily on the outstanding balances. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. Past due status is based on the contractual terms of the loan.

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

Purchased credit-impaired loans

In conjunction with business combinations, the Company purchases loans, some of which have shown evidence of credit deterioration since origination. These purchased credit-impaired (“PCI”) loans are recorded at fair value at acquisition date, factoring in credit losses expected to be incurred over the life of the loan. Accordingly, the seller’s allowance for loan losses is not carried over or recorded as of the acquisition date.

PCI loans are reviewed individually or aggregated into pools of loans based on common risk characteristics. The Company estimates the amount and timing of expected cash flows and the excess of the cash flows expected to be collected over the recorded investment, if material, is considered to be the accretable yield and is recognized as interest income over the life. The excess of the contractual cash flows over the cash flows expected to be collected is considered to be the nonaccretable difference.

Over the life, expected cash flows continue to be estimated and any increases in expected cash flows over those expected at purchase date in excess of fair value that are significant and probable are adjusted through the accretable yield on a prospective basis. Any subsequent decreases in expected cash flows over those expected at purchase date that are probable are recognized by recording an allowance for loan losses.

Allowance for loan losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance for loan losses when management believes the uncollectibility of the loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

In addition, regulatory agencies, as an integral part of their examination process, periodically review the allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations.

The allowance consists of specific and general components. The specific component considers loans that are classified as impaired. For such loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying amount of that loan. The general component covers non-classified loans and classified loans not considered impaired, and is based on historical loss experience adjusted for qualitative factors. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss experience.

Premises and equipment, net

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

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

Long-lived assets

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

Other real estate owned

OREO represents properties acquired through foreclosure or other proceedings in settlement of loans. OREO is held for sale and is recorded at the date of foreclosure at the fair value of the properties less estimated costs of disposal, which establishes a new cost basis. Any adjustment to fair value at the time of transfer to OREO is charged to the allowance for loan losses. Property is evaluated regularly to ensure the recorded amount is supported by its current fair value, and valuation allowances to reduce the carrying amount to fair value less estimated costs to dispose are recorded as necessary. Revenue, expense, gains and losses from the operations of foreclosed assets are included in operations.

Goodwill

Goodwill represents the excess of the cost of a business acquired over the fair value of the new assets acquired. Goodwill is not amortized, but is subject to at least annual impairment assessments. The Company has established December 31 as the annual impairment assessment date. Accounting standards allow for goodwill to be tested for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. As part of this analysis, the reporting unit’s carrying value is compared to its fair value.

The Company estimates the fair value of its reporting units as of the measurement date utilizing valuation methodologies including the comparable transactions approach and the control premium approach. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. There was no impairment determined at December 31, 2016 and 2015. It is possible the Company will evaluate its goodwill for impairment on a more frequent basis than annually. Future evaluations may result in impairment. See “Note 10. Goodwill and Other Intangible Assets” for further discussion.

Cash surrender value of bank-owned life insurance

The Company has purchased life insurance policies on certain executives and senior officers. Life insurance is recorded at its cash surrender value.

ASC Topic 715, “Compensation—Retirement Benefits” requires an employer to recognize a liability for post-employment benefits promised to an employee based on an arrangement between an employer and an employee. In an endorsement split-dollar arrangement, the employer owns and controls the policy, and the employer and employee split the life insurance policy’s cash surrender value and/or death benefits. If the employer agrees to maintain a life insurance policy during the employee’s retirement, the present value of the cost of maintaining the insurance policy would be accrued over the employee’s active service period. Similarly, if the employer agrees to provide the employee with a death benefit, the present value of the death benefit would be accrued over the employee’s active service period. The Company has an accrued liability, included in other liabilities, for this arrangement.

Transfers of financial assets

Transfers of financial assets are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the assets it received, and no condition both constrains the transferee from taking advantage of its right to pledge or exchange and provides more than a modest benefit to the transferor, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets.

Income taxes

The Company is subject to income taxes in the U.S. federal and various state jurisdictions. The Company and its subsidiaries file consolidated federal and state income tax returns with each subsidiary computing its taxes on a separate entity basis. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state or local tax examinations by tax authorities for the years before 2012. The provision for income taxes is based on income as reported in the Consolidated Financial Statements.

The Company has maintained significant net deferred tax assets for deductible temporary differences, the largest of which relates to the allowance for loan losses. For income tax return purposes, only actual charge-offs are deductible, not the provision for loan losses. Under GAAP, a valuation allowance is required to be recognized if it is more likely than not that the deferred tax assets will not be realized. The determination of the recoverability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies, and assessments of the current and future economic and business conditions.

The Company evaluated the recoverability of its net deferred tax assets and established a valuation allowance for certain state net operating loss carryforwards and capital loss carryforwards that are not expected to be fully realized. Management believes that it is more likely than not that the deferred tax assets included in the accompanying Consolidated Financial Statements will be fully realized. The Company determined that no valuation allowance was required for any other deferred tax assets as of December 31, 2016, although there is no guarantee that those assets will be recognizable in future periods.

Positions taken in tax returns may be subject to challenge upon examination by the taxing authorities. Uncertain tax positions are initially recognized in the Financial Statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in operating expenses. The Company had no accruals for payments of interest and penalties at December 31, 2016 and 2015.

At December 31, 2016, the Company was not under examination by any tax authority.

Treasury Stock

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

Stock-based employee compensation

During the first quarter of 2010, the Company adopted the First Busey Corporation 2010 Equity Incentive Plan (“2010 Equity Plan”), which was approved at the annual stockholders meeting on May 19, 2010. During the second quarter of 2015, the Company adopted an amendment to revise some technical terms to the 2010 Equity Plan, which was approved at the annual stockholders meeting on May 20, 2015, and can be found as Appendix C of the Company’s Proxy Statement for the 2015 Annual Meeting of Stockholders. The Company will make all future grants under this plan.

The Company’s equity incentive plans are designed to encourage ownership of its common stock by its employees and directors, to provide additional incentive for them to promote the success of the Company’s business, and to attract and retain talented personnel. All of the Company’s employees and directors and those of its subsidiaries are eligible to receive awards under the plans. See “Note 17. Share-based Compensation” for further discussion.

The Company calculates the compensation cost of its non-vested stock awards (restricted stock units) based on the Company’s stock price on the grant date multiplied by the number of units granted. This cost is recorded over a specified requisite service period (i.e. vesting period) ranging from one to five years. As the units cliff vest and are subject only to a service condition, the cost is recorded using straight-line amortization. No compensation cost is recognized for unvested awards that are forfeited.

Segment disclosure

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

Business Combinations

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

On April 30, 2016, First Busey completed its acquisition of Pulaski, a Missouri corporation. On January 8, 2015, First Busey completed its acquisition of Herget Financial, headquartered in Pekin, Illinois. The operating results of both are included with the Company’s results of operations since each date of acquisition. See “Note 2. Acquisitions” in the Notes to the Consolidated Financial Statements for further information relating to these acquisitions.

Acquisition related costs are costs the Company incurs to effect a business combination. Those costs may include legal, accounting, valuation, other professional or consulting fees, system conversions and marketing costs. The Company will account for acquisition related costs as expenses in the periods in which the costs are incurred and the services are received. Costs that the Company expects, but is not obligated to incur in the future, to effect its plan to exit an activity of an acquiree or to terminate the employment of an acquiree’s employees are not liabilities at the acquisition date. Instead, the Company will recognize these costs in its post-combination financial statements in accordance with other applicable accounting guidance.

Derivative Financial Instruments

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 loan investors and foreign currency forward contracts. These instruments have certain interest rate risk characteristics that change in value based upon changes in the capital markets.

Interest Rate Lock Commitments. Commitments to originate loans held for sale (interest rate lock commitments), which primarily consist of commitments to originate fixed-rate residential mortgage loans, are recorded at their fair value in other assets or other liabilities in the Consolidated Financial Statements, with changes in the fair value of the corresponding derivative financial assets or liabilities recorded as either a charge or credit to mortgage revenues during the period in which the changes occurred. Such derivative financial instruments are recorded as an adjustment to the carrying value of the resulting loan once funded.

Forward Sales Commitments. As a general rule, the Company economically hedges loans held for sale and interest rate lock commitments issued to its residential loan customers related to loans that will be held for sale by obtaining corresponding best-efforts forward sales commitments with an investor to sell the loans at an agreed-upon price at the time the interest rate locks are issued to the customers. Forward sales commitments that meet the definition of derivative financial instruments under ASC Topic 815, Derivatives and Hedging, are carried at their fair value in other assets or other liabilities in the Consolidated Financial Statements. The Company does not designate these forward sales commitments for hedge accounting treatment, and accordingly, changes in fair value of the corresponding derivative financial asset or liability are recorded as either a charge or credit to mortgage revenue during the period in which the changes occur.

Foreign Currency Derivatives. The Company enters into derivative financial instruments as part of its foreign currency risk management strategies. These derivative financial instruments consist of foreign currency forward contracts to accommodate the business needs of its customers. They are carried at their fair value in other assets or other liabilities in the Consolidated Financial Statements. The Company does not designate these foreign currency forward contracts for hedge accounting treatment, and accordingly, changes in fair value of the corresponding derivative financial asset or liability are recorded in non-interest income and expense.

Earnings per share

Basic earnings per share are computed by dividing net income available to common stockholders for the period by the weighted average number of common shares outstanding, which include deferred stock units that are vested but not delivered.

Diluted earnings per common share is computed using the treasury stock method and reflects the potential dilution that could occur if the Company’s outstanding stock options were exercised and restricted stock units were vested. Stock options and restricted stock units for which the exercise or the grant price exceeds the average market price over the period have an anti-dilutive effect and are excluded from the calculation. At December 31, 2016, 28,350 outstanding options, 191,278 warrants and 132,017 restricted stock units were anti-dilutive and excluded from the calculation of common stock equivalents. At December 31, 2015, 61,568 outstanding options and 191,278 warrants were anti-dilutive and excluded from the calculation of common stock equivalents.

Earnings per common share, adjusted to reflect the Reverse Stock Split, have been computed as follows:

	For the Years Ended December 31,
	2016		2015		2014
	(dollars in thousands, except per share data)
Net income available to common stockholders	$	49,694	$	38,306	$	32,047
Shares:
Weighted average common shares outstanding	35,081		28,928		28,969
Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method	332		175		128


Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation	35,413		29,103		29,097


Basic earnings per common share	$	1.42	$	1.32	$	1.11


Diluted earnings per common share	$	1.40	$	1.32	$	1.10

Reclassifications

Reclassifications have been made to certain prior year account balances, with no effect on net income or stockholders’ equity, to be consistent with the classifications adopted as of and for the year ended December 31, 2016.

Subsequent events

The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the Consolidated Financial Statements included in this Annual Report on Form 10-K were issued. On February 6, 2017, First Busey announced entering into a Merger Agreement with First Community, pursuant to which First Community will merge into Frist Busey. The Merger is anticipated to be completed in mid-2017, and is subject to the satisfaction of customary closing conditions contained in the Merger Agreement including the approval of the appropriate regulatory authorities and the stockholders of First Community. See “Note 2. Acquisitions” for further information relating to this planned acquisition. Other than the Merger Agreement with First Community, there were no significant subsequent events for the year ended December 31, 2016 through the filing date of these Consolidated Financial Statements.

Impact of new financial accounting standards

Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 outlines a single model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract and will also require additional disclosures. The new authoritative guidance was originally effective for reporting periods after December 15, 2016. In August 2015, ASU 2015-14, “Revenue from Contracts with Customers (Topic 606)” was issued to delay the effective date of ASU 2014-09 by one year. The FASB issued four subsequent ASUs in 2016 which are intended to improve and clarify the implementation guidance related to ASU 2014-09. The Company is continuing to evaluate the effect this guidance will have on components of non-interest income and related disclosures. The Company expects to adopt the standard in the first quarter of 2018 with a cumulative effect adjustment to opening retained earnings, if such adjustment is deemed to be significant.

ASU 2016-01, “Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 is intended to improve the recognition and measurement of financial instruments by, among other things, requiring: equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income; public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is to be required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and requiring an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from the change in the instrument-specific credit risk when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. ASU 2016-01 will be effective on January 1, 2018 and the Company is evaluating the impact this guidance will have on its Consolidated Financial Statements and related disclosures.

ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 intends to increase transparency and comparability among organizations by recognizing all lease transactions (with terms in excess of 12 months) on the balance sheet as a lease liability and a right-of-use asset. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. Upon adoption, the lessee will apply the new standard retrospectively to all periods presented or retrospectively using a cumulative effect adjustment in the year of adoption. The Company is evaluating the impact this guidance will have on its Consolidated Financial Statements and related disclosures.

ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This guidance is effective for reporting periods after December 15, 2016, and interim periods within those fiscal years with early adoption permitted. The Company elected to early adopt this update in the third quarter of the current fiscal year and adoption of this did not have a significant impact to its Consolidated Financial Statements and related disclosures.

ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 implements a comprehensive change in estimating the allowances for loan losses from the current model of losses inherent in the loan portfolio to a current expected credit loss model that generally is expected to result in earlier recognition of allowances for losses. Further, purchase accounting rules have been modified as well as credit losses on held to maturity debt securities. ASU 2016-13 will be effective in the first quarter of 2020. The Company is evaluating the impact this guidance will have on its Consolidated Financial Statements and related disclosures.

ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides clarification regarding how certain cash receipts and cash payment are presented and classified in the Consolidated Statements of Cash Flows. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact to its Consolidated Financial Statements.

ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Asses Other Than Inventory.” ASU 2016-16 is intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory by requiring an entity to recognize the income tax consequences when a transfer occurs, instead of when an asset is sold to an outside party. This guidance is effective for annual reporting periods beginning after December 15, 2017. The new standard will require adoption on a modified retrospective basis through a cumulative-effect adjustment to retained earnings, and early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact to its Consolidated Financial Statements.

ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” ASU 2017-01 clarifies the definition and provides a more robust framework to use in determining when a set of assets and activities constitutes a business. ASU 2017-01 is intended to provide guidance when evaluating whether transactions should be accounted for as acquisitions of assets or businesses. This guidance is effective for annual reporting periods beginning after December 15, 2017 and is not expected to have a significant impact to the Company’s Consolidated Financial Statements.

Acquisitions

12 Months Ended

Dec. 31, 2016

Acquisitions

Acquisitions

Note 2. Acquisitions

First Community Financial Partners, Inc.

On February 6, 2017, the Company entered into a Merger Agreement with First Community, pursuant to which First Community will merge into First Busey, with First Busey as the surviving corporation. It is anticipated that First Community Financial Bank, First Community’s wholly-owned bank subsidiary, will be merged with and into First Busey’s bank subsidiary, Busey Bank, at a date following the completion of the holding company merger. At the time of the bank merger, First Community Financial Bank’s banking offices will become branches of Busey Bank. The Merger is anticipated to be completed in mid-2017, and is subject to the satisfaction of customary closing conditions contained in the Merger Agreement including the approval of the appropriate regulatory authorities and the stockholders of First Community. As of December 31, 2016, First Community had total consolidated assets of $1.3 billion, total loans of $991.6 million and total deposits of $1.1 billion.

Founded in 2004, First Community operates as a state chartered commercial bank with nine branches in Will, DuPage and Grundy counties, which encompass portions of the southwestern suburbs of Chicago. The Merger Agreement between the Company and First Community, and the Investor Presentation with more information regarding our planned acquisition of First Community can be found on Form 8-K, filed on February 6, 2017.

Pulaski Financial Corp.

On April 30, 2016, First Busey completed its acquisition of Pulaski. Pulaski Bank, which was Pulaski’s wholly owned bank subsidiary prior to the acquisition, offers a full line of quality retail and commercial banking products through thirteen full-service branch offices in the St. Louis metropolitan area. Pulaski Bank also offers mortgage loan products through loan production offices in the St. Louis, Kansas City, Chicago, and Omaha-Council Bluffs metropolitan areas and other locations across the Midwest. The operating results of Pulaski are included with the Company’s results of operations since the date of acquisition. First Busey operated Pulaski Bank as a separate subsidiary from May 1, 2016 until November 4, 2016 when it was merged with and into Busey Bank. At that time, Pulaski Bank’s branches became branches of Busey Bank.

Under the terms of the definitive agreement, at the effective time of the acquisition, each share of Pulaski common stock issued and outstanding was converted into 0.79 shares of First Busey common stock and cash in lieu of fractional shares. The market value of the 9.4 million shares of First Busey common stock issued at the effective time of the acquisition was approximately $193.0 million based on First Busey’s closing stock price of $20.44 on April 29, 2016. In addition, all of the options to purchase shares of Pulaski common stock that were outstanding at the acquisition date were converted into options to purchase shares of First Busey common stock, adjusted for the 0.79 exchange ratio.

This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at their estimated fair values on the date of acquisition. Fair values are subject to refinement for up to one year after the closing date of April 30, 2016 as additional information regarding the closing date fair values becomes available; however, the Company does not expect any further adjustments will be necessary. The total consideration paid, which was used to determine the amount of goodwill resulting from the transaction, also included the fair value of outstanding Pulaski stock options that were converted into options to purchase common shares of First Busey. As the total consideration paid for Pulaski exceeded the net assets acquired, goodwill of $77.3 million was recorded as a result of the acquisition. Goodwill recorded in the transaction, which reflects the synergies expected from the acquisition and the enhanced revenue opportunities from the Company’s broader service capabilities in the St. Louis market, is not tax deductible, and was assigned to the Banking operating segment.

First Busey incurred $6.9 million and $10.0 million in pre-tax expenses related to the acquisition of Pulaski for the three and twelve months ended December 31, 2016, respectively, including professional and legal fees of $0.1 million and $1.2 million, respectively, to directly consummate the acquisition, all of which are reported as a component of non-interest expense in the accompanying Consolidated Financial Statements. The remainder of the expenses primarily relate to data processing conversion expenses and restructuring expenses.

The following table presents the assets acquired and liabilities assumed of Pulaski as of April 30, 2016 and their fair value (dollars in thousands):

	As Recorded by Pulaski		Fair Value Adjustments			As Recorded by First Busey
Assets acquired:
Cash and cash equivalents	$	25,580	$	—		$	25,580
Securities	47,895		105		(a)	48,000
Loans held for sale	184,856		—			184,856
Portfolio loans	1,243,913		(14,452		)(b)	1,229,461
Premises and equipment	17,236		(667		)(c)	16,569
OREO	5,022		(2,534		)(d)	2,488
Goodwill	3,939		(3,939		)(e)	—
Other intangible assets	—		15,468		(f)	15,468
Other assets	70,365		(122		)(g)	70,243

Total assets acquired	1,598,806		(6,141		)	1,592,665


Liabilities assumed:
Deposits	1,226,906		1,102		(h)	1,228,008
Other borrowings	205,840		906		(i)	206,746
Trust preferred securities	19,589		(3,805		)(j)	15,784
Other liabilities	24,594		(612		)(k)	23,982

Total liabilities assumed	1,476,929		(2,409		)	1,474,520


Net assets acquired	$	121,877	$	(3,732	)	$	118,145


Consideration paid:
Cash						$	5
Common stock						192,990
Fair value of stock options assumed						2,454

Total consideration paid						195,449


Goodwill						$	77,304

Explanation:


(a)	Fair value adjustments of the securities portfolio as of the acquisition date.
(b)	Fair value adjustments based on the Company’s evaluation of the acquired loan portfolio, write-off of net deferred loan costs and elimination of the allowance for loan losses recorded by Pulaski. $16.9 million is expected to be accreted over the estimated four year remaining life of the respective loans in a manner that approximates the level yield method.
(c)	Fair value adjustments based on the Company’s evaluation of the acquired premises and equipment.
(d)	Fair value adjustment based on the Company’s evaluation of the acquired OREO portfolio.
(e)	Eliminate Pulaski’s existing goodwill.
(f)	Recording of the core deposit intangible asset on the acquired core deposit accounts. Amount to be amortized using a sum of years digits method over a 14 year useful life.
(g)	Fair value adjustment of other assets at the acquisition date.
(h)	Fair value adjustment to time deposits. Amount to be accreted over two years in a manner that approximates the level yield method.
(i)	Fair value adjustment to the FHLB borrowings. Such borrowings were repaid shortly after the acquisition date, so there will be no discount accretion.
(j)	Fair value adjustment to the trust preferred securities at the acquisition date. Amount to be accreted over the weighted average remaining life of 18 years in a manner that approximates the level yield method.
(k)	Fair value adjustment of other liabilities at the acquisition date.

The loans acquired in this transaction were recorded at fair value with no carryover of any existing allowance for loan losses. Loans that were not deemed to be credit-impaired at the acquisition date were accounted for under FASB ASC 310-20, Receivables-Nonrefundable Fees and Other Costs and were subsequently considered as part of the Company’s determination of the adequacy of the allowance for loan losses. PCI loans, which are loans with evidence of credit quality deterioration at the date of acquisition, were accounted for under FASB ASC 310-30, Receivables — Loans and Debt

Securities Acquired with Deteriorated Credit Quality. As of the acquisition date, the aggregate principal outstanding and aggregate fair value of the acquired performing loans, including loans held for sale, both rounded to $1.4 billion. The difference between the aggregate principal balance outstanding and aggregate fair value of $16.6 million is expected to be accreted over the estimated four year remaining life of the respective loans in a manner that approximates the level yield method. As of the acquisition date, the aggregate principal balance outstanding of PCI loans totaled $21.2 million and the aggregate fair value of PCI loans totaled $9.7 million, which became such loans’ new carrying value. During the third quarter of 2016, PCI loans with a carrying value of $6.2 million were sold to outside parties. Further, in the fourth quarter of 2016, a commercial PCI loan with a carrying value of $1.6 million was collected. For PCI loans, the difference between contractually required payments at the acquisition date and the cash flow expected to be collected is referred to as the non-accretable difference. Further, the excess of cash flows expected at acquisition over the fair value is referred to as the accretable yield. The accretable yield, as of the acquisition date, of $0.3 million on PCI loans was expected to be recognized over the estimated four year remaining life of the respective loans in a manner that approximates the level yield method; however, the majority was accelerated in 2016 as a result of the third quarter loan sale and fourth quarter collection.

Since the acquisition date of April 30, 2016 and until November 4, 2016 when Pulaski Bank was merged into Busey Bank, Pulaski Bank earned total revenues of $40.2 million and net income of $10.5 million, which are included in the Company’s Consolidated Statement of Income for the year ended December 31, 2016. The following table provides the unaudited pro forma information for the results of operation for the twelve months ended December 31, 2016 and 2015, as if the acquisition had occurred on January 1, 2015. The pro forma results combine the historical results of Pulaski with the Company’s Consolidated Statements of Income, adjusted for the impact of the application of the acquisition method of accounting including loan discount accretion, intangible assets amortization, and deposit and trust preferred securities premium accretion, net of taxes. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2015. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions. Only the acquisition related expenses that have been incurred as of December 31, 2016 are included in net income in the table below. Acquisition related expenses that were recognized and are included in the pro forma net income for the twelve months ended December, 2016 totaled $15.0 million, on a pre-tax basis. Such expenses consisted primarily of professional fees to transact the acquisition, data processing conversion expenses and compensation to certain officers and employees required under employment or restructuring agreements.

	Pro Forma
	Twelve Months Ended December 31,
	2016		2015
	(dollars in thousands)
Total revenues (net interest income plus non-interest income)	$	245,861	$	247,694
Net income	46,276		57,092
Diluted earnings per common share	1.20		1.46

Herget Financial Corp.

On January 8, 2015, First Busey acquired Herget Financial, headquartered in Pekin, Illinois and its wholly owned bank subsidiary, Herget Bank. First Busey operated Herget Bank as a separate banking subsidiary from January 9, 2015 until March 13, 2015, when it was merged with and into Busey Bank. At that time, Herget Bank’s branches in Pekin, Illinois became branches of Busey Bank. The operating results of Herget Financial are included in the Company’s results of operations since the date of acquisition. This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the date of acquisition.

Expenses related to the acquisition of Herget Financial during the twelve months ended December 31, 2016 were insignificant. During the twelve months ended December 31, 2015, pre-tax expenses related to the acquisition of Herget Financial totaled $1.0 million. The 2015 expenses were comprised primarily of system conversion, restructuring, legal, consulting, regulatory and marketing costs, all of which are reported as a component of non-interest expense in the accompanying Consolidated Financial Statements.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1524-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 4
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4926-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=73530397&loc=SL65897772-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Cash and Cash Equivalents	12 Months Ended
Cash and Cash Equivalents	Dec. 31, 2016
Cash and Cash Equivalents
Cash and Cash Equivalents	Note 3. Cash and Cash Equivalents The Bank is required to maintain certain cash reserve balances with the Federal Reserve Bank of Chicago, which may be offset by cash on hand. The required reserve balances as of December 31, 2016 and 2015 were approximately $22.5 million and $14.6 million, respectively. The Company maintains its cash in deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Management believes the Company is not exposed to any significant credit risk on cash and cash equivalents.

- Definition

The entire disclosure for cash and cash equivalent footnotes, which may include the types of deposits and money market instruments, applicable carrying amounts, restricted amounts and compensating balance arrangements. Cash and equivalents include: (1) currency on hand (2) demand deposits with banks or financial institutions (3) other kinds of accounts that have the general characteristics of demand deposits (4) short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments maturing within three months from the date of acquisition qualify.

+ References + Details

Securities

12 Months Ended

Dec. 31, 2016

Securities

Securities

Note 4. Securities

The amortized cost, unrealized gains and losses and fair values of securities are summarized as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(dollars in thousands)
December 31, 2016:
Available for sale
U.S. Treasury securities	$	74,784	$	185	$	(25	)	$	74,944
Obligations of U.S. government corporations and agencies	79,577		46		(496		)	79,127
Obligations of states and political subdivisions	154,438		1,093		(593		)	154,938
Residential mortgage-backed securities	303,641		1,390		(2,782		)	302,249
Corporate debt securities	142,836		630		(123		)	143,343

Total debt securities	755,276		3,344		(4,019		)	754,601
Mutual funds and other equity securities	4,475		735		—			5,210

Total	$	759,751	$	4,079	$	(4,019	)	$	759,811


Held to maturity
Obligations of states and political subdivisions	$	44,333	$	122	$	(160	)	$	44,295
Commercial mortgage-backed securities	3,487		23		(122		)	3,388

Total	$	47,820	$	145	$	(282	)	$	47,683


			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value

	(dollars in thousands)
December 31, 2015:
Available for sale
U.S. Treasury securities	$	65,003	$	189	$	(1	)	$	65,191
Obligations of U.S. government corporations and agencies	132,547		211		(153		)	132,605
Obligations of states and political subdivisions	176,764		2,154		(306		)	178,612
Residential mortgage-backed securities	304,978		2,922		(351		)	307,549
Corporate debt securities	150,001		307		(1,503		)	148,805


Total debt securities	829,293		5,783		(2,314		)	832,762
Mutual funds and other equity securities	1,642		434		—			2,076


Total	$	830,935	$	6,217	$	(2,314	)	$	834,838



Held to maturity
Obligations of states and political subdivisions	$	48,835	$	449	$	(34	)	$	49,250
Commercial mortgage-backed securities	997		24		—			1,021


Total	$	49,832	$	473	$	(34	)	$	50,271

The amortized cost and fair value of debt securities as of December 31, 2016, by contractual maturity or pre-refunded date, are shown below. Mutual funds and other equity securities do not have stated maturity dates and therefore are not included in the following maturity summary. Mortgages underlying mortgage-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 agencies and corporations.

	Available for sale				Held to maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(dollars in thousands)				(dollars in thousands)
Due in one year or less	$	119,423	$	119,612	$	1,705	$	1,705
Due after one year through five years	305,314		305,626		19,750		19,721
Due after five years through ten years	66,702		67,756		23,247		23,124
Due after ten years	263,837		261,607		3,118		3,133

Total	$	755,276	$	754,601	$	47,820	$	47,683

Realized gains and losses related to sales of securities available for sale are summarized as follows:

	For the Years Ended December 31,
	2016			2015			2014
	(dollars in thousands)
Gross security gains	$	1,383		$	401		$	807
Gross security (losses)	(151		)	(21		)	(31		)


Net security gains	$	1,232		$	380		$	776

The tax provision for these net realized gains and losses was $0.4 million for the year ended December 31, 2016, $0.1 million for the year ended December 31, 2015, and $0.3 million for the year ended December 31, 2014.

During the second quarter of 2016, the Company sold one held to maturity security, which was an obligation of state and political subdivisions, with a fair value of $0.4 million due to significant credit deterioration. The sale resulted in an insignificant loss during the second quarter.

Investment securities with carrying amounts of $547.2 million and $627.4 million on December 31, 2016 and 2015, respectively, were pledged as collateral for public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law.

Information pertaining to securities with gross unrealized losses at December 31, 2016 and 2015 aggregated by investment category and length of time that individual securities have been in a continuous loss position follows:

	Continuous unrealized losses existing for less than 12 months, gross					Continuous unrealized losses existing for greater than 12 months, gross					Total, gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(dollars in thousands)
December 31, 2016:
Available for sale
U.S. Treasury securities	$	9,997	$	(25	)	$	—	$			$	9,997	$	(25	)
Obligations of U.S. government corporations and agencies	46,209		(496		)	—					46,209		(496		)
Obligations of states and political subdivisions	64,832		(585		)	1,154		(8		)	65,986		(593		)
Residential mortgage-backed Securities	168,898		(2,782		)	—		—			168,898		(2,782		)
Corporate debt securities	32,749		(123		)	—		—			32,749		(123		)

Total temporarily impaired
Securities	$	322,685	$	(4,011	)	$	1,154	$	(8	)	$	323,839	$	(4,019	)


Held to maturity
Obligations of states and political subdivisions	$	24,558	$	(160	)	$		$			$	24,558	$	(160	)
Commercial mortgage-backed securities	2,385		(122		)	—		—			2,385		(122		)

Total temporarily impaired
Securities	$	26,943	$	(282	)	$	—	$	—		$	26,943	$	(282	)

	Continuous unrealized losses existing for less than 12 months, gross					Continuous unrealized losses existing for greater than 12 months, gross					Total, gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(dollars in thousands)
December 31, 2015:
Available for sale
U.S. Treasury securities	$	364	$	(1	)	$	—	$			$	364	$	(1	)
Obligations of U.S. government corporations and agencies	52,154		(153		)	—					52,154		(153		)
Obligations of states and political subdivisions	40,026		(159		)	11,419		(147		)	51,445		(306		)
Residential mortgage-backed Securities	93,608		(351		)	—		—			93,608		(351		)
Corporate debt securities	99,148		(1,503		)	—		—			99,148		(1,503		)

Total temporarily impaired
Securities	$	285,300	$	(2,167	)	$	11,419	$	(147	)	$	296,719	$	(2,314	)


Held to maturity
Obligations of states and political subdivisions(1)	$	8,451	$	(34	)	$	91	$	—		$	8,542	$	(34	)

Total temporarily impaired
Securities	$	8,451	$	(34	)	$	91	$	—		$	8,542	$	(34	)

(1)

Unrealized losses existing for greater than 12 months, gross, was less than one thousand dollars.

Securities are periodically evaluated for OTTI. The total number of securities in the investment portfolio in an unrealized loss position as of December 31, 2016 was 283, and represented a loss of 1.21% of the aggregate carrying value. As of December 31, 2016, the Company does not intend to sell such securities and it is more likely than not that the Company will recover the amortized cost prior to being required to sell the securities. Full collection of the amounts due according to the contractual terms of the securities is expected; therefore, the Company does not consider these investments to be OTTI at December 31, 2016.

The Company had available for sale obligations of state and political subdivisions with a fair value of $154.9 million and $178.6 million as of December 31, 2016 and 2015, respectively. In addition, the Company had held to maturity obligations of state and political subdivisions with a fair value of $44.3 million and $49.3 million at December 31, 2016 and 2015, respectively.

As of December 31, 2016, the fair value of the Company’s obligations of state and political subdivisions portfolio was comprised of $163.6 million of general obligation bonds and $35.6 million of revenue bonds issued by 260 issuers, primarily consisting of states, counties, cities, towns, villages and school districts. The Company held investments in general obligation bonds in 29 states (including the District of Columbia), including seven states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in 16 states, including two states where the aggregate fair value exceeded $5.0 million.

As of December 31, 2015, the fair value of the Company’s obligations of state and political subdivisions portfolio was comprised of $193.4 million of general obligation bonds and $34.3 million of revenue bonds issued by 278 issuers, primarily consisting of states, counties, cities, towns, villages and school districts. The Company held investments in general obligation bonds in 29 states (including the District of Columbia), including seven states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in 17 states, including two states where the aggregate fair value exceeded $5.0 million.

The amortized cost and fair values of the Company’s portfolio of general obligation bonds are summarized in the following tables by the issuers’ state:

December 31, 2016:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
	(dollars in thousands)
Illinois	70	$	59,120	$	59,182	$	845
Wisconsin	31	21,390		21,479		693
Michigan	38	23,233		23,472		618
Pennsylvania	10	10,242		10,235		1,023
Texas	16	10,731		10,702		669
Ohio	10	11,009		11,005		1,100
Iowa	3	5,332		5,345		1,782
Other	43	22,028		22,192		516

Total general obligations bonds	221	$	163,085	$	163,612	$	740

December 31, 2015:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
	(dollars in thousands)
Illinois	77	$	64,455	$	65,557	$	851
Wisconsin	36	30,889		31,079		863
Michigan	39	27,923		28,339		727
Pennsylvania	10	12,601		12,650		1,265
Texas	18	12,117		12,165		676
Ohio	10	10,723		10,705		1,071
Iowa	3	5,550		5,571		1,857
Other	48	26,938		27,375		570

Total general obligations bonds	241	$	191,196	$	193,441	$	803

The general obligation bonds are diversified across many issuers, with $3.4 million being the largest exposure to a single issuer at December 31, 2016 and 2015. Accordingly, as of December 31, 2016 and 2015, the Company did not hold general obligation bonds of any single issuer, the aggregate book or market value of which exceeded 10% of the Company’s stockholders’ equity. Of the general obligation bonds in the Company’s portfolio, 98.4% had been rated by at least one nationally recognized statistical rating organization and 1.6% were unrated, based on the fair value as of December 31, 2016. Of the general obligation bonds in the Company’s portfolio, 97.6% had been rated by at least one nationally recognized statistical rating organization and 2.4% were unrated, based on the fair value as of December 31, 2015.

The amortized cost and fair values of the Company’s portfolio of revenue bonds are summarized in the following tables by the issuers’ state:

December 31, 2016:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
	(dollars in thousands)
Indiana	10	$	11,207	$	11,244	$	1,124
Illinois	7	7,321		7,275		1,039
Other	22	17,158		17,102		777

Total revenue bonds	39	$	35,686	$	35,621	$	913

December 31, 2015:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
	(dollars in thousands)
Indiana	9	$	10,187	$	10,173	$	1,130
Illinois	7	8,450		8,478		1,211
Other	21	15,766		15,770		751

Total revenue bonds	37	$	34,403	$	34,421	$	930

The revenue bonds are diversified across many issuers and revenue sources with $3.5 million and $3.0 million being the largest exposure to a single issuer at each of December 31, 2016 and 2015, respectively. Accordingly, as of December 31, 2016 and 2015, the Company did not hold revenue bonds of any single issuer, the aggregate book or market value of which exceeded 10% of the Company’s stockholders’ equity. Of the revenue bonds in the Company’s portfolio, 97.1% had been rated by at least one nationally recognized statistical rating organization and 2.9% were unrated, based on the fair value as of December 31, 2016. All of the revenue bonds in the Company’s portfolio had been rated by at least one nationally recognized statistical rating organization as of December 31, 2015. Some of the primary types of revenue bonds held in the Company’s portfolio include: primary education or government building lease rentals secured by ad valorem taxes, utility systems secured by utility system net revenues, housing authorities secured by mortgage loans or principal receipts on mortgage loans, secondary education secured by student fees/tuitions, and pooled issuances (i.e. bond bank) consisting of multiple underlying municipal obligors.

Substantially all of the Company’s obligations of state and political subdivision securities are owned by its subsidiary bank, which has adopted First Busey’s investment policy requiring that state and political subdivision securities purchased be investment grade. Such investment policy also limits the amount of rated state and political subdivision securities to an aggregate 100% of the subsidiary bank’s Total Capital (as defined by federal regulations) at the time of purchase and an aggregate 15% of Total Capital for unrated state and political subdivision securities issued by municipalities having taxing authority or located in counties/micropolitan statistical areas/metropolitan statistical areas in which an office is located. The investment policy states fixed income investments that are not Office of the Comptroller of the Currency Type 1 securities (U.S. Treasuries, agencies, municipal government general obligation and, for well-capitalized institutions, most municipal revenue bonds) should be analyzed prior to acquisition to determine that (1) the security has low risk of default by the obligor, and (2) the full and timely repayment of principal and interest is expected over the expected life of the investment.

All securities in First Busey’s obligations of state and political subdivision securities portfolio are subject to ongoing review. Factors that may be considered as part of ongoing monitoring of state and political subdivision securities include credit rating changes by nationally recognized statistical rating organizations, market valuations, third-party municipal credit analysis, which may include indicative information regarding the issuer’s capacity to pay, market and economic data and such other factors as are available and relevant to the security or the issuer such as its budgetary position and sources, strength and stability of taxes and/or other revenue.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

Loans held for sale

12 Months Ended

Dec. 31, 2016

Loans held for sale

Loans held for sale

Note 5. Loans held for sale

Loans held for sale totaled $256.3 million at December 31, 2016 compared to $9.4 million at December 31, 2015. Effective January 1, 2016, the Company elected to account for all loans held for sale at fair value. Prior to this change, the Company accounted for loans held for sale at the lower of cost or fair value. Further, beginning on January 1, 2016, the Company prospectively adopted an alternative conforming approach to the accounting for loan fees and costs for mortgage loans held for sale, which reclassifies origination costs, including related compensation expense from salaries, wages and employee benefits, to mortgage revenue. The amount of loans held for sale significantly increased from December 31, 2015, as the acquisition of Pulaski significantly expanded the Company’s mortgage operations. Loans held for sale generate net interest income until loans are delivered to investors, at which point mortgage revenue will be recognized.

The following is a summary of mortgage revenue (dollars in thousands):

	December 31, 2016
Premiums received on sales of mortgage loans, including fair value adjustments	$	43,119
Less direct origination costs	(32,793		)
Less provisions to liability for loans sold	(175		)
Mortgage servicing revenues	1,801

Mortgage revenue	$	11,952

For 2015 and 2014, mortgage revenue was $7.2 million and $6.1 million, respectively, as a result of premiums received on sales of mortgage loans and mortgage servicing revenues.

Mortgage Loan Servicing

12 Months Ended

Dec. 31, 2016

Mortgage Loan Servicing

Mortgage Loan Servicing

Note 6. Mortgage Loan Servicing

The unpaid principal balances of loans serviced by the Company for the benefit of others are not included in the accompanying Consolidated Balance Sheets. These unpaid principal balances were $1.43 billion and $1.46 billion as of December 31, 2016 and 2015, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and collection and foreclosure processing. Mortgage servicing revenues, a component of mortgage revenue, is recorded on the accrual basis and includes servicing fees from investors and certain charges collected from borrowers, such as late payment fees, and is net of amortization of capitalized mortgage servicing rights.

The balance of capitalized servicing rights included in other assets in the accompanying Consolidated Balance Sheets at December 31, 2016 and 2015, was $3.1 million and $3.5 million, respectively. The fair values of these servicing rights were $7.8 million and $5.9 million, respectively, at December 31, 2016 and 2015. The following summarizes mortgage servicing rights capitalized and amortized (dollars in thousands):

	For the Years Ended December 31,
	2016		2015		2014

Mortgage servicing rights capitalized	$	1,488	$	1,361	$	983

Mortgage servicing rights amortized	$	1,921	$	2,146	$	2,228

Portfolio loans

12 Months Ended

Dec. 31, 2016

Portfolio loans

Portfolio loans

Note 7. Portfolio loans

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

	December 31, 2016		December 31, 2015
Commercial	$	959,888	$	656,576
Commercial real estate	1,654,164		1,208,429
Real estate construction	182,078		96,568
Retail real estate	1,069,060		651,191
Retail other	13,710		14,975

Portfolio loans	$	3,878,900	$	2,627,739

Less allowance for loan losses	47,795		47,487

Net portfolio loans	$	3,831,105	$	2,580,252

Net portfolio loans increased $1.25 billion as of December 31, 2016 as compared to December 31, 2015 primarily as a result of the Pulaski acquisition. Net deferred loan origination costs included in the tables above were $2.5 million as of December 31, 2016 and $0.9 million as of December 31, 2015. Net accretable purchase accounting adjustments included in the table above reduced loans by $12.7 million as of December 31, 2016 and $2.2 million as of December 31, 2015.

The Company believes that making sound loans is a necessary and desirable means of employing funds available for investment. Recognizing the Company’s obligations to its stockholders, depositors, and to the communities it serves, authorized personnel are expected to seek to develop and make sound, profitable loans that resources permit and that opportunity affords. The Company maintains lending policies and procedures designed to focus lending efforts on the types, locations and duration of loans most appropriate for its business model and markets. While not specifically limited, the Company attempts to focus its lending on short to intermediate-term (0-7 years) loans in geographic areas within 125 miles of its lending offices. Loans might be originated outside of these areas, but such loans are generally residential mortgage loans originated for sale in the secondary market and reported in loans held for sale balances or to existing customers of the Bank. The Company attempts to utilize government-assisted lending programs, such as the Small Business Administration and United States Department of Agriculture lending programs, when prudent. Generally, loans are collateralized by assets, primarily real estate, of the borrowers and guaranteed by individuals. The loans are expected to be repaid primarily from cash flows of the borrowers, or from proceeds from the sale of selected assets of the borrowers.

Management reviews and approves the Company’s lending policies and procedures on a routine basis. The policies for legacy Pulaski loans are similar in nature to Busey Bank’s policies and the Company is migrating Pulaski’s portfolio towards the Busey Bank policies. Management routinely (at least quarterly) reviews the Company’s allowance for loan losses in conjunction with reports related to loan production, loan quality, concentrations of credit, loan delinquencies and non-performing and potential problem loans. The Company’s underwriting standards are designed to encourage relationship banking rather than transactional banking. Relationship banking implies a primary banking relationship with the borrower that includes, at a minimum, an active deposit banking relationship in addition to the lending relationship. The integrity and character of the borrower are significant factors in the Company’s loan underwriting decisions. As a part of underwriting, tangible positive or negative evidence of the borrower’s integrity and character are sought out. Additional significant underwriting factors beyond location, duration, a sound and profitable cash flow basis and the borrower’s character include the quality of the borrower’s financial history, the liquidity of the underlying collateral and the reliability of the valuation of the underlying collateral.

At no time is a borrower’s total borrowing relationship permitted to exceed the Company’s regulatory lending limit and the Company generally limits such relationships to amounts substantially less than the regulatory limit. Loans to related parties, including executive officers and directors of the Company and its subsidiaries, are reviewed for compliance with regulatory guidelines by the Company’s board of directors at least annually.

The Company maintains an independent loan review department that reviews the loans for compliance with the Company’s loan policy on a periodic basis. In addition, the loan review department reviews the risk assessments made by the Company’s credit department, lenders and loan committees. Results of these reviews are presented to management and the audit committee at least quarterly.

The Company’s lending can be summarized into five primary areas: commercial loans, commercial real estate loans, real estate construction loans, retail real estate loans, and retail other loans. The significant majority of the Company’s portfolio lending activity occurs in its Illinois and Missouri markets, with the remainder in the Indiana and Florida markets.

Commercial Loans

Commercial loans typically comprise working capital loans or business expansion loans, including loans for asset purchases and other business loans. Commercial loans will generally be guaranteed in full or a significant amount by the primary owners of the business. Commercial loans are made based primarily on the historical and projected cash flow of the underlying borrower and secondarily on the underlying assets pledged as collateral by the borrower. The cash flows of the underlying borrower, however, may not perform consistently with historical or projected information. Further, the collateral securing loans may fluctuate in value due to individual economic or other factors. The Company has established minimum standards and underwriting guidelines for all commercial loan types.

Commercial Real Estate Loans

The Company is primarily located in markets with significant academic presence. The academic presence in addition to the commercial environment provides for the majority of the Company’s commercial lending opportunities to be commercial real estate related, including multi-unit housing. As the majority of the Company’s loan portfolio is within the commercial real estate class, the Company’s goal is to maintain a high quality, geographically diverse portfolio of commercial real estate loans. Commercial real estate loans are subject to underwriting standards and guidelines similar to commercial loans. Commercial real estate loans will generally be guaranteed in full or a significant amount by the primary owners of the business. The repayment of these loans is primarily dependent on the cash flows of the underlying property. However, the commercial real estate loan generally must be supported by an adequate underlying collateral value. The performance and the value of the underlying property may be adversely affected by economic factors or geographical and/or industry specific factors. These loans are subject to other industry guidelines that are closely monitored by the Company.

Real Estate Construction Loans

Real estate construction loans are typically commercial in nature. The loan proceeds are monitored by the Company and advanced for the improvement of real estate in which the Company holds a mortgage. Real estate construction loans will generally be guaranteed in full or a significant amount by the developer or primary owners of the business. These loans are subject to underwriting standards and guidelines similar to commercial loans. The loan generally must be supported by an adequate “as completed” value of the underlying project. In addition to the underlying project, the financial history of the developer and business owners weighs significantly in determining approval. The repayment of these loans is typically through permanent financing following completion of the construction. Real estate construction loans are inherently more risky than loans on completed properties as the unimproved nature and the financial risks of construction significantly enhance the risks of commercial real estate loans. These loans are closely monitored and subject to other industry guidelines.

Retail Real Estate Loans

Retail real estate loans are comprised of direct consumer loans that include residential real estate, residential real estate construction loans, home equity lines of credit and home equity loans. In 2016, the Company sold substantially all if its fixed rate retail real estate loans to secondary market purchasers and intends to do the same in 2017. As retail real estate loan underwriting is subject to specific regulations, the Company typically underwrites its retail real estate loans to conform to widely accepted standards. Several factors are considered in underwriting including the value of the underlying real estate and the debt to income and credit history of the borrower.

Retail Other Loans

Retail other loans consist of installment loans to individuals, including automotive loans. These loans are centrally underwritten utilizing the borrower’s financial history, including the Fair Isaac Corporation (FICO) credit scoring and information as to the underlying collateral. Repayment is expected from the cash flow of the borrower.

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 strong credits, ranging from investment or near investment grade, to loans made to borrowers who exhibit credit fundamentals that exceed industry standards and loan policy guidelines and loans that exhibit acceptable credit fundamentals.

Watch- This category includes loans on management’s “Watch List” and is intended to be utilized on a temporary basis for a pass grade borrower where a significant risk-modifying action is anticipated in the near future.

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.

Doubtful- This category includes “Doubtful” 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. Most commercial lending relationships that are $1.0 million or less are processed through an expedited underwriting process. If the credit receives a pass grade, it is aggregated into a homogenous pool of either: $0.35 million or less, or $0.35 million to $1.0 million. These pools are monitored on a regular basis and reviewed annually. 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 reviewed on a quarterly basis. Interim reviews may take place if circumstances of the borrower warrant a more timely review.

Portfolio loans in the highest grades, represented by the pass and watch categories, totaled $3.72 billion at December 31, 2016, compared to $2.46 billion at December 31, 2015. Portfolio loans in the lowest grades, represented by the special mention, substandard and doubtful, totaled $165.5 million at December 31, 2016, compared to $166.8 million at December 31, 2015.

The following table is a summary of risk grades segregated by category of portfolio loans (excluding accretable purchase accounting adjustments and non-posted and clearings):

	December 31, 2016
	Pass		Watch		Special Mention		Substandard		Doubtful
	(dollars in thousands)
Commercial	$	826,163	$	70,260	$	26,951	$	26,941	$	11,685
Commercial real estate	1,507,513		69,145		40,775		35,385		5,154
Real estate construction	134,574		39,936		8,033		994		47
Retail real estate	1,050,671		6,586		2,793		2,158		4,484
Retail other	13,691		27		2		—		53

Total	$	3,532,612	$	185,954	$	78,554	$	65,478	$	21,423

	December 31, 2015
	Pass		Watch		Special Mention		Substandard		Doubtful
	(dollars in thousands)
Commercial	$	553,294	$	57,703	$	27,142	$	10,966	$	7,617
Commercial real estate	1,068,568		58,238		51,418		29,781		1,496
Real estate construction	65,284		15,053		14,755		1,157		366
Retail real estate	607,398		21,637		13,974		4,204		3,139
Retail other	14,172		64		644		—		130

Total	$	2,308,716	$	152,695	$	107,933	$	46,108	$	12,748

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

When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of the principal due. Loans may be returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

An analysis of portfolio loans that are past due and still accruing or on a non-accrual status is as follows:

	December 31, 2016
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
	(dollars in thousands)
Commercial	$	165	$	363	$	37	$	11,685
Commercial real estate	478		256		—		5,154
Real estate construction	—		—		—		47
Retail real estate	2,394		364		94		4,484
Retail other	55		15		—		53

Total	$	3,092	$	998	$	131	$	21,423

	December 31, 2015
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
	(dollars in thousands)
Commercial	$	598	$	162	$	15	$	7,617
Commercial real estate	1,037		27		—		1,496
Real estate construction	—		—		—		366
Retail real estate	1,278		160		—		3,139
Retail other	19		1		—		130

Total	$	2,932	$	350	$	15	$	12,748

A loan is classified as impaired when, based on current information and events, it is probable the Company will be unable to collect scheduled principal and interest payments when due according to the terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans graded substandard or doubtful and loans classified as a troubled debt restructuring (“TDR”) are assessed for impairment by the Company.

Impairment is measured on a loan-by-loan basis for commercial and construction loans based on the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. PCI loans are considered impaired. Large groups of smaller balance homogenous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment unless such loans are the subject of a restructuring agreement.

The gross interest income that would have been recorded in the years ended December 31, 2016, 2015 and 2014 if impaired loans had been current in accordance with their original terms was approximately $0.9 million, $0.4 million, and $0.8 million, respectively. The amount of interest collected on impaired loans and recognized on a cash basis that was included in interest income was insignificant in 2016, $1.0 million in 2015 and insignificant in 2014.

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

The Company considers the customer’s past performance, previous and current credit history, the individual circumstances surrounding the customer’s current difficulties and the customer’s plan to meet the terms of the loan in the future prior to restructuring the terms of the loan. Generally, all five primary areas of lending are restructured through short-term interest rate relief, short-term principal payment relief, short-term principal and interest payment relief or forbearance (debt forgiveness). Once a restructured loan exceeds 90 days past due or is placed on non-accrual status, it is classified as non-performing. A summary of restructured loans as of December 31, 2016 and 2015 is as follows:

	December 31, 2016		December 31, 2015
	(dollars in thousands)
Restructured loans:
In compliance with modified terms	$	10,593	$	8,770
30 – 89 days past due	59		60
Included in non-performing loans	1,285		643

Total	$	11,937	$	9,473

All TDRs are considered to be impaired for purposes of assessing the adequacy of the allowance for loan losses and for financial reporting purposes. When the Company modifies a loan in a TDR, it evaluates any possible impairment similar to other impaired loans based on present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. If the Company determines that the fair value of the TDR is less than the recorded investment in the loan, impairment is recognized through an allowance estimate in the period of the modification and in periods subsequent to the modification.

Performing loans classified as a TDR during the three months ended December 31, 2016 included one commercial real estate modification for short-term principal payment relief, with a recorded investment of $3.0 million. Performing loans classified as TDRs during the twelve months ended December 31, 2016 included four commercial real estate modifications for short-term principal payment relief, with an aggregate recorded investment of $3.3 million and three retail real estate modifications for short-term principal payment relief, with an aggregate recorded investment of $0.4 million.

Performing loans classified as TDRs during the three months ended December 31, 2015 included one retail real estate modification for short-term principal payment relief, with a recorded investment of $0.2 million, one retail real estate modification for short-term interest rate relief, with a recorded investment of $0.1 million and one retail other modification for short-term interest rate relief, with a recorded investment of $0.1 million. Performing loans classified as TDRs during the twelve months ended December 31, 2015 included one commercial modification for short-term principal payment relief, with a recorded investment of $0.2 million, one retail real estate modification for short-term interest rate relief, with a recorded investment of $0.1 million, four retail real estate modifications for short-term principal payment relief, with a recorded investment of $0.4 million, and one retail other modification for short-term interest rate relief, with a recorded investment of $0.1 million.

The gross interest income that would have been recorded in the three and twelve months ended December 31, 2016 and 2015 if performing TDRs had been in accordance with their original terms instead of modified terms was insignificant.

There were no TDRs that were entered into during the last twelve months that were subsequently classified as non-performing and had payment defaults (a default occurs when a loan is 90 days or more past due or transferred to non-accrual) during the three months ended December 31, 2016. TDRs that were entered into during the last twelve months that were subsequently classified as non-performing and had payment defaults during the twelve months ended December 31, 2016 consisted of one retail real estate modification totaling $0.1 million and one insignificant retail other modification.

There were no TDRs that were entered into during the prior twelve months that subsequently were classified as non-performing and had payment defaults during the three months ended December 31, 2015. TDRs that were entered into during the prior twelve months that subsequently were classified as non-performing and had payment defaults during the twelve months ended December 31, 2015 consisted of one commercial modification totaling $0.3 million.

The following tables provide details of impaired loans, segregated by category. The unpaid contractual principal balance represents the recorded balance prior to any partial charge-offs. The recorded investment represents customer balances net of any partial charge-offs recognized on the loan. The average recorded investment is calculated using the most recent four quarters.

	December 31, 2016
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(dollars in thousands)
Commercial	$	16,955	$	8,060	$	3,835	$	11,895	$	1,535	$	10,127
Commercial real estate	12,922		9,036		3,118		12,154		1,778		8,939
Real estate construction	518		483		11		494		11		793
Retail real estate	13,112		11,733		385		12,118		140		13,102
Retail other	139		53		3		56		3		171

Total	$	43,646	$	29,365	$	7,352	$	36,717	$	3,467	$	33,132

	December 31, 2015
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(dollars in thousands)
Commercial	$	14,302	$	3,362	$	8,238	$	11,600	$	3,304	$	4,482
Commercial real estate	5,865		4,018		1,363		5,381		459		8,700
Real estate construction	1,569		830		29		859		29		833
Retail real estate	12,378		11,108		452		11,560		152		12,070
Retail other	272		233		5		238		5		261

Total	$	34,386	$	19,551	$	10,087	$	29,638	$	3,949	$	26,346

Management’s opinion as to the ultimate collectability of loans is subject to 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.

Allowance for Loan Losses

The allowance for loan losses represents an estimate of the amount of probable losses believed to be inherent in the Company’s loan portfolio at the balance sheet date. The allowance for loan losses is calculated geographically, by class of loans. The allowance calculation involves a high degree of estimation that management attempts to mitigate through the use of objective historical data where available. Loan losses are charged against the allowance for loan losses when management believes the uncollectibility of the loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Overall, the Company believes the allowance methodology is consistent with prior periods and the balance was adequate to cover the estimated losses in the Company’s loan portfolio at December 31, 2016 and 2015.

The general portion of the Company’s allowance contains two components: (i) a component for historical loss ratios, and (ii) a component for adversely graded loans. The historical loss ratio component is an annualized loss rate calculated using a sum-of-years digits weighted 20-quarter historical average.

The Company’s component for adversely graded loans attempts to quantify the additional risk of loss inherent in the special mention and substandard portfolios. The substandard portfolio has an additional allocation of 3.00% placed on such loans, which is an estimate of the additional loss inherent in these loan grades based upon a review of overall historical charge-offs. As of December 31, 2016, the Company believed this reserve remained adequate. Special mention loans have an additional allocation of 1.00% placed on such loans, which is an estimate of the additional loss inherent in these loan grades. As of December 31, 2016, the Company believed this reserve remained adequate.

The specific portion of the Company’s allowance relates to loans that are impaired, which includes non-performing loans, TDRs and other loans determined to be impaired. Impaired loans are excluded from the determination of the general allowance for non-impaired loans and are allocated specific reserves as discussed above.

Impaired loans are reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Collateral values are estimated using a combination of observable inputs, including recent appraisals discounted for collateral specific changes and current market conditions, and unobservable inputs based on customized discounting criteria.

The general reserve quantitative allocation that is based upon historical charge off rates is adjusted for qualitative factors based on current general economic conditions and other qualitative risk factors both internal and external to the Company. In general, such valuation allowances are determined by evaluating, among other things: (i) Management & Staff; (ii) Loan Underwriting, Policy and Procedures; (iii) Internal/External Audit & Loan Review; (iv) Valuation of Underlying Collateral; (v) Macro and Local Economic Factors; (vi) Impact of Competition, Legal & Regulatory Issues; (vii) Nature and Volume of Loan Portfolio; (viii) Concentrations of Credit; (ix) Net Charge-Off Trends; and (x) Non-Accrual, Past Due and Classified Trends. Management evaluates the probable impact from the degree of risk that each one of these components has on the quality of the loan portfolio on a quarterly basis.

Based on each component’s risk factor, a qualitative adjustment to the reserve may be applied to the appropriate loan categories. During the fourth quarter of 2016, the Company did not make adjustments to any qualitative factors. The Company will continue to monitor its qualitative factors on a quarterly basis.

The Company holds acquired loans from business combinations with uncollected principal balances. These loans are carried net of a fair value adjustment for credit risk and interest rates and are only included in the allowance calculation to the extent that the reserve requirement exceeds the fair value adjustment. However, as the acquired loans renew, it is generally necessary to establish an allowance, which represents an amount that, in management’s opinion, will be adequate to absorb probable credit losses in such loans. The balance of all acquired loans which did not require a related allowance for loan losses as of December 31, 2016 totaled approximately $1.0 billion.

Changes in the allowance for loan losses were as follows:

	Years Ended December 31,
	2016			2015			2014
	(dollars in thousands)

Balance, beginning of year	$	47,487		$	47,453		$	47,567
Provision for loan losses	5,550			1,600			2,000
Loan balances charged-off	(9,656		)	(4,694		)	(7,371		)
Recoveries applicable to loan balances previously charged-off	4,414			3,128			5,257


Balance, end of year	$	47,795		$	47,487		$	47,453

The following table details activity in the allowance for loan losses. Allocation of a portion of the allowance to one category does not preclude its availability to absorb losses in other categories.

	Year Ended December 31, 2016
	Commercial			Commercial Real Estate			Real Estate Construction			Retail Real Estate			Retail Other			Total
	(dollars in thousands)
Beginning balance	$	13,115		$	18,604		$	1,763		$	13,714		$	291		$	47,487
Provision for loan losses	5,520			2,366			(310		)	(2,277		)	251			5,550
Charged-off	(6,598		)	(470		)	(24		)	(2,106		)	(458		)	(9,656		)
Recoveries	1,266			123			441			2,317			267			4,414

Ending Balance	$	13,303		$	20,623		$	1,870		$	11,648		$	351		$	47,795

	Year Ended December 31, 2015
	Commercial			Commercial Real Estate			Real Estate Construction			Retail Real Estate			Retail Other			Total
	(dollars in thousands)
Beginning balance	$	10,041		$	20,639		$	2,795		$	13,662		$	316		$	47,453
Provision for loan losses	4,016			(2,064		)	(1,316		)	857			107			1,600
Charged-off	(1,333		)	(1,462		)	—			(1,534		)	(365		)	(4,694		)
Recoveries	391			1,491			284			729			233			3,128

Ending Balance	$	13,115		$	18,604		$	1,763		$	13,714		$	291		$	47,487

	Year Ended December 31, 2014
	Commercial			Commercial Real Estate			Real Estate Construction			Retail Real Estate			Retail Other			Total
	(dollars in thousands)
Beginning balance	$	10,378		$	22,112		$	3,708		$	11,149		$	220		$	47,567
Provision for loan losses	1,243			(2,679		)	(1,799		)	4,921			314			2,000
Charged-off	(1,990		)	(1,173		)	(726		)	(3,052		)	(430		)	(7,371		)
Recoveries	410			2,379			1,612			644			212			5,257

Ending Balance	$	10,041		$	20,639		$	2,795		$	13,662		$	316		$	47,453

The following table presents the allowance for loan losses and recorded investments in portfolio loans by category:

	As of December 31, 2016
	Commercial		Commercial Real Estate		Real Estate Construction		Retail Real Estate		Retail Other		Total
	(dollars in thousands)
Amount allocated to:
Loans individually evaluated for impairment	$	1,535	$	1,778	$	11	$	140	$	3	$	3,467
Loans collectively evaluated for impairment	11,768		18,845		1,859		11,508		348		44,328

Ending Balance	$	13,303	$	20,623	$	1,870	$	11,648	$	351	$	47,795


Loans:
Loans individually evaluated for impairment	$	11,834	$	11,147	$	494	$	11,644	$	56	$	35,175
Loans collectively evaluated for impairment	947,993		1,642,010		181,584		1,056,942		13,654		3,842,183
PCI loans evaluated for Impairment	61		1,007		—		474		—		1,542

Ending Balance	$	959,888	$	1,654,164	$	182,078	$	1,069,060	$	13,710	$	3,878,900

	As of December 31, 2015
	Commercial		Commercial Real Estate		Real Estate Construction		Retail Real Estate		Retail Other		Total
	(dollars in thousands)
Amount allocated to:
Loans individually evaluated for impairment	$	3,304	$	459	$	29	$	152	$	5	$	3,949
Loans collectively evaluated for impairment	9,811		18,145		1,734		13,562		286		43,538

Ending Balance	$	13,115	$	18,604	$	1,763	$	13,714	$	291	$	47,487


Loans:
Loans individually evaluated for impairment	$	11,600	$	5,005	$	527	$	11,560	$	238	$	28,930
Loans collectively evaluated for impairment	644,976		1,203,048		95,709		639,631		14,737		2,598,101
PCI loans evaluated for Impairment	—		376		332		—		—		708

Ending Balance	$	656,576	$	1,208,429	$	96,568	$	651,191	$	14,975	$	2,627,739

OREO

12 Months Ended

Dec. 31, 2016

OREO.

OREO

Note 8. OREO

OREO represents properties acquired through foreclosure or other proceedings in settlement of loans and is included in other assets in the accompanying Consolidated Balance Sheets. OREO is held for sale and is recorded at the date of foreclosure at the fair value of the properties less estimated costs of disposal, which establishes a new cost basis. Any adjustment to fair value at the time of transfer to OREO is charged to the allowance for loan losses. Properties are evaluated regularly to ensure each recorded amount is supported by its current fair value, and valuation allowances to reduce the carrying amount due to subsequent declines in fair value less estimated costs to dispose are recorded as necessary. Revenue, expense, gains and losses from the operations of foreclosed assets are included in operations. At December 31, 2016, the Company held $2.0 million in commercial OREO, $0.5 million in residential OREO and an insignificant amount of other repossessed assets. At December 31, 2015, the Company held $0.5 million in commercial OREO, $0.3 million in residential OREO and an insignificant amount of other repossessed assets. At December 31, 2016 the Company had $1.0 million of residential real estate in the process of foreclosure.

The following table summarizes activity related to OREO:

	Year Ended December 31, 2016			Year Ended December 31, 2015
	(dollars in thousands)
OREO:
Beginning balance	$	783		$	216
Additions, transfers from loans	2,775			1,251
Additions, fair value from Herget Financial acquisition	—			284
Additions, fair value from Pulaski acquisition	2,488			—
Proceeds from sales of OREO	(4,498		)	(1,090		)
Gain on sales of OREO	999			122
Valuation allowance for OREO	(29		)	—

Ending balance	$	2,518		$	783

- Definition

The entire disclosure for real estate owned (as defined). Generally, the largest component of real estate owned by lenders is assets taken in settlement of troubled loans through surrender or foreclosure. Real estate investments, real estate loans that qualify as investments in real estate, and premises that are no longer used in operations may also be included in real estate owned.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 40
-Section 40
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=68051746&loc=d3e18551-111553

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 40
-Section 40
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=68051746&loc=d3e18511-111553

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=65884687&loc=d3e4437-111522

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 35
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=29634951&loc=d3e1424-110224

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section S99
-Paragraph 6
-Subparagraph (SX 210.5-04(c)(Schedule III))
-URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(10)(4))
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 970
-SubTopic 360
-Section S99
-Paragraph 1
-Subparagraph (SX 210.12-28)
-URI http://asc.fasb.org/extlink&oid=6590653&loc=d3e638233-123024

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 35
-Paragraph 43
-URI http://asc.fasb.org/extlink&oid=29634951&loc=d3e1739-110224

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(8))
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

+ Details

Premises and Equipment, net

12 Months Ended

Dec. 31, 2016

Premises and Equipment, net

Premises and Equipment, net

Note 9. Premises and Equipment, net

Premises and equipment, net are summarized as follows:

	December 31,
	2016		2015
	(dollars in thousands)

Land and improvements	$	26,484	$	21,950
Buildings and improvements	73,484		64,270
Furniture and equipment	37,543		34,039

	137,511		120,259
Less accumulated depreciation	59,650		57,171

Total premises and equipment, net	$	77,861	$	63,088

Premises and equipment, net was impacted by the Pulaski acquisition. Depreciation expense was $7.3 million, $5.7 million, and $5.6 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Note 10. Goodwill and Other Intangible Assets

Other than goodwill, the Company does not have any other intangible assets that are not amortized. Accounting standards allow for goodwill to be tested for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. As part of this analysis, the reporting unit’s carrying value is compared to its fair value.

The Company’s goodwill is associated with its three operating segments, Banking, Remittance Processing and Wealth Management. Based on the impairment testing performed at December 31, 2016, there were no indicators of potential impairment based on the estimated fair value of those operating segments. All three operating segments have sustained quarterly and annual profits. However, it is possible we will evaluate our goodwill for impairment on a more frequent basis than annually. The evaluation may result in impairment.

During 2016, the Company recorded goodwill totaling $77.3 million and other intangible assets totaling $15.5 million in connection with the acquisition of Pulaski, both in the Banking segment. During 2015, the Company recorded goodwill totaling $4.8 million in the Banking segment and other intangible assets totaling $3.0 million in the Banking segment and $0.9 million in the Wealth Management segment in connection with the acquisition of Herget Financial. The carrying amount of goodwill by operating segment, at December 31, 2016 and 2015 is as follows:

	Balance at		Balance at
Goodwill:	December 31, 2016		December 31, 2015
	(dollars in thousands)
Banking	$	82,128	$	4,824
Remittance Processing	8,992		8,992
Wealth Management	11,694		11,694

Total goodwill	$	102,814	$	25,510

Core deposit and customer relationship intangible assets are amortized on an accelerated or straight-line basis over the estimated period benefited up to 14 years. Other intangible asset disclosures are as follows:

	Balance at December 31, 2016		2016 Amortization		Balance at December 31, 2015		2015 Amortization
	(dollars in thousands)
Amortized intangible assets:
Core deposit intangible assets	$	17,338	$	3,361	$	5,231	$	2,060
Customer relationship intangible assets	1,124		1,077		2,201		1,132

	$	18,462	$	4,438	$	7,432	$	3,192

	Core deposit intangible		Customer relationship intangible
	(dollars in thousands)
As of December 31, 2016:
Gross carrying amount	$	38,467	$	12,220
Accumulated amortization	21,129		11,096

	$	17,338	$	1,124


Estimated amortization expense on balance at December 31, 2016:
2017	$	3,190	$	663
2018	2,143		115
2019	1,986		98
2020	1,826		82
2021	1,666		66
Thereafter	6,527		100

	$	17,338	$	1,124

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Deposits

12 Months Ended

Dec. 31, 2016

Deposits,

Deposits

Note 11. Deposits

The composition of deposits is as follows:

	December 31, 2016		December 31, 2015
	(dollars in thousands)
Demand deposits, noninterest-bearing	$	1,134,133	$	881,685
Interest-bearing transaction deposits, saving deposits and money market deposits	2,453,965		1,949,370
Time deposits	786,200		458,051

Total	$	4,374,298	$	3,289,106

Deposit growth was impacted in 2016 by the April 30, 2016 Pulaski acquisition. Interest-bearing transaction deposits included $36.9 million and $7.8 million of reciprocal brokered transaction deposits at December 31, 2016 and 2015, respectively. Savings deposits included $22.2 million of reciprocal brokered deposits at December 31, 2016. There were no reciprocal brokered deposits in savings deposits at December 31, 2015.

The aggregate amount of time deposits with a minimum denomination of $100,000 was approximately $350.7 million and $128.1 million at December 31, 2016 and 2015, respectively. The aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000 was approximately $70.7 million and $23.2 million at December 31, 2016 and 2015, respectively. National deposits of $0.1 million and $0.4 million were included in the balance of time deposits as of December 31, 2016 and 2015, respectively. The Company had reciprocal brokered time deposits of $93.4 million and $0.4 million at December 31, 2016 and 2015, respectively, included in the balance of time deposits. Further, the Company had brokered deposits of $5.0 million at December 31, 2016, which are included in the balance of time deposits. There were no brokered deposits at December 31, 2015.

As of December 31, 2016, the scheduled maturities of time deposits are as follows (dollars in thousands):

2017	$	539,341
2018	151,415
2019	59,313
2020	16,459
2021	19,577
Thereafter	95

	$	786,200

Borrowings

12 Months Ended

Dec. 31, 2016

Borrowings

Borrowings

Note 12. Borrowings

Federal funds purchased are short-term borrowings that generally mature between one and ninety days. The Company had no federal funds purchased at December 31, 2016 and 2015; however, during 2016 the Company purchased federal funds to test operational availability to access funds if needed.

Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature either daily or within one year from the transaction date. 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.

Short-term borrowings include FHLB advances which mature in less than one year from date of origination.

On November 18, 2016, the Company entered into Amendment No. 1 to a credit agreement with a national bank to extend a revolving loan facility to the Company in the maximum principal amount of $20.0 million. The loan has an annual interest rate of 2.50% plus the one-month LIBOR rate and has a maturity date of November 19, 2017. The loan also bears a non-usage fee calculated based on the average daily principal balance of the loan outstanding during the prior fiscal quarter. The Company had no outstanding amount on December 31, 2016 and 2015; however, during 2016 the Company drew on the loan.

The following table sets forth the distribution of securities sold under agreements to repurchase and short-term borrowings and weighted average interest rates:

	December 31, 2016			December 31, 2015
	(dollars in thousands)
Securities sold under agreements to repurchase
Balance at end of period	$	189,157		$	172,972
Weighted average interest rate at end of period	0.30		%	0.18		%
Maximum outstanding at any month end in year-to-date period	$	216,293		$	202,376
Average daily balance for the year-to-date period	$	181,474		$	179,662
Weighted average interest rate during period(1)	0.22		%	0.10		%

Short-term borrowings, FHLB advances
Balance at end of period	$	75,000		$	—
Weighted average interest rate at end of period	0.63		%	—		%
Maximum outstanding at any month end in year-to-date period	$	236,700		$	—
Average daily balance for the year-to-date period	$	96,698		$	—
Weighted average interest rate during period(1)	0.53		%	—		%

Short-term borrowings, revolving loan
Balance at end of period	$	—		$	—
Weighted average interest rate at end of period	—		%	—		%
Maximum outstanding at any month end in year-to-date period	$	10,000		$	—
Average daily balance for the year-to-date period	$	2,596		$	—
Weighted average interest rate during period(1) (2)	4.78		%	—		%

(1)

The weighted average interest rate is computed by dividing total interest for the period by the average daily balance outstanding.

(2)

Includes interest and non-usage fee.

Long-term debt is summarized as follows:

	December 31, 2016		December 31, 2015
	(dollars in thousands)

Notes payable, FHLB, ranging in original maturity from nineteen months to ten years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock.	$	80,000	$	80,000

As of December 31, 2016, funds borrowed from the FHLB, listed above, consisted of variable-rate notes maturing through September 2024, with interest rates ranging from 0.35% to 0.54%. The weighted average rate on these long-term advances was 0.41% as of December 31, 2016. As of December 31, 2015, funds borrowed from the FHLB, listed above, consisted of variable-rate notes maturing through September 2024, with interest rates ranging from 0.10% to 0.28%. The weighted average rate on these long-term advances was 0.15% as of December 31, 2015.

Junior Subordinated Debt Owed to Unconsolidated Trusts	12 Months Ended
Junior Subordinated Debt Owed to Unconsolidated Trusts	Dec. 31, 2016
Junior Subordinated Debt Owed to Unconsolidated Trusts
Junior Subordinated Debt Owed to Unconsolidated Trusts	Note 13. Junior Subordinated Debt Owed to Unconsolidated Trusts First Busey maintains statutory trusts for the sole purpose of issuing and servicing trust preferred securities and related trust common securities. The proceeds from such issuances were used by the trusts to purchase junior subordinated notes of the Company, which are the sole assets of each trust. Concurrent with the issuance of the trust preferred securities, the Company issued guarantees for the benefit of the holders of the trust preferred securities. The trust preferred securities are issues that qualify, and are treated by the Company, as Tier 1 regulatory capital. The Company owns all of the common securities of each trust. The trust preferred securities issued by each trust rank equally with the common securities in right of payment, except that if an event of default under the indenture governing the notes has occurred and is continuing, the preferred securities will rank senior to the common securities in right of payment. In connection with the Pulaski acquisition, the Company acquired similar statutory trusts maintained by Pulaski. The Company had $70.9 million and $55.0 million of junior subordinated debt owed to unconsolidated trusts at December 31, 2016 and 2015, respectively. The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated notes at par value at the stated maturity date or upon redemption. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated notes. The Company’s obligations under the junior subordinated notes and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each trust’s obligations under the trust preferred securities issued by each trust. The Company has the right to defer payment of interest on the notes, in which case the distributions on the trust preferred securities will also be deferred, for up to five years, but not beyond the stated maturity date. The Company does not expect to exercise this right. Under current banking regulations, bank holding companies are allowed to include qualifying trust preferred securities in their Tier 1 Capital for regulatory capital purposes, subject to a 25% limitation to all core (Tier 1) capital elements, net of goodwill and other intangible assets less any associated deferred tax liability. As of December 31, 2016, 100% of the trust preferred securities qualified as Tier 1 capital under the final rule adopted in March 2005.

Capital

12 Months Ended

Dec. 31, 2016

Capital

Capital

Note 14. Capital

Redemption of Preferred Stock Under the Small Business Lending Fund

On August 25, 2011, the Company entered into the Purchase Agreement with the Treasury, pursuant to which the Company issued and sold to the Treasury 72,664 shares of its Series C Preferred Stock, having a liquidation preference of $1,000 per share, for aggregate proceeds of $72,664,000. On December 18, 2015, the Company redeemed all of the 72,664 shares of its Series C Preferred Stock that had been issued to the Treasury pursuant to the SBLF program. The shares were redeemed at their liquidation value of $1,000 per share plus accrued and unpaid dividends to, but excluding December 18, 2015. The redemption was approved by the Company’s primary federal regulator and terminates the Company’s participation in the SBLF program. Before redemption, the Series C Preferred Stock qualified as Tier 1 capital for the Company. Non-cumulative dividends were payable quarterly on the Series C Preferred Stock, which began October 1, 2011.

CPP Warrant

In connection with the Company’s participation in the CPP, the Company issued to Treasury a warrant to purchase 382,555 shares of the Company’s common stock. Subsequent to the date of the Company’s participation in the CPP, it raised additional capital through a public offering of common stock and, as a result of that offering, the number of shares of common stock subject to the warrant were reduced by 50% to 191,278. On November 23, 2011 the Treasury completed an auction to sell its warrant in a private transaction. At December 31, 2016, this warrant to purchase 191,278 shares of the Company’s common stock, at an exercise price of $39.21, remained outstanding.

Regulatory Capital

The ability of the Company to pay cash dividends to its stockholders and to service its debt was historically dependent on the receipt of cash dividends from its subsidiaries. Under applicable regulatory requirements, an Illinois state-chartered bank such as Busey Bank may not pay dividends in excess of its net profits. Because Busey Bank has been in a retained earnings deficit position since 2009, it has not been able to pay dividends since that time. With prior approval from its regulators, however, an Illinois state-chartered bank in this situation may be able to reduce its capital stock, by amending its charter to decrease the authorized number of shares, and then make a subsequent distribution to its holding company. Using this approach, and with the approval of its regulators, Busey Bank has distributed funds to the Company, the most recent of which was $30.0 million on October 21, 2016. The Company expects to seek regulatory approval for additional capital distributions in future periods. Pulaski Bank had positive retained earnings and was able to pay a dividend to First Busey prior to the bank merger.

The Company and Busey Bank are subject to regulatory capital requirements administered by federal and/or state agencies that involve the quantitative measure of their assets, liabilities, and certain off-balance-sheet items, as calculated under regulatory accounting practices. Quantitative measures established by regulations to ensure capital adequacy require the Company and the bank to maintain minimum dollar amounts and ratios of such to risk weighted assets (as defined in the regulations and set forth in the table below) of total capital, Tier 1 capital and Common Equity Tier 1 capital, and for the bank, Tier 1 capital to average assets. Failure to meet minimum capital requirements may cause regulatory bodies to initiate certain discretionary and/or mandatory actions that, if undertaken, could have a direct material effect on our financial statements. The Company, as a financial holding company, is required to be “well capitalized” in the capital categories shown in the table below. As of December 31, 2016 and 2015, the Company and Busey Bank met all capital adequacy requirements to which they were subject, including the guidelines to be considered “well capitalized.”

The Dodd-Frank Act established minimum capital levels for bank holding companies on a consolidated basis. The components of Tier 1 capital are restricted to capital instruments that, at the time of signing, were considered to be Tier 1 capital for insured depository institutions. Under this legislation, the Company is able to maintain its trust preferred securities as Tier 1 capital, but it will have to comply with new capital mandates in other respects, and it will not be able to raise Tier 1 capital through the issuance of trust preferred securities in the future.

In July 2013, the U.S. federal banking authorities approved the implementation of the Basel III Rule required by the Dodd-Frank Act. The Basel III Rule is applicable to all U.S. banks that are subject to minimum capital requirements, as well as to bank and savings and loan holding companies other than “small bank holding companies” (generally non-public bank holding companies with consolidated assets of less than $1.0 billion). The Basel III Rule not only increased most of the required minimum regulatory capital ratios, but they also introduced a new Common Equity Tier 1 Capital ratio and the concept of a capital conservation buffer. The Basel III Rule also expanded the definition of capital as in effect currently by establishing criteria that instruments must meet to be considered Additional Tier 1 Capital (Tier 1 Capital in addition to Common Equity) and Tier 2 Capital. A number of instruments that generally qualified as Tier 1 Capital under the old guidelines no longer qualify, or their qualifications will change, as the Basel III Rule is being fully implemented.

The Basel III Rule also permitted banking organizations with less than $15.0 billion in assets to retain, through a one-time election, the past treatment for accumulated other comprehensive income, which did not affect regulatory capital. First Busey and Busey Bank made this election in the first quarter of 2015 to avoid variations in the level of their capital depending on fluctuations in the fair value of their securities portfolio. The Basel III Rule maintained the general structure of the prompt corrective action framework, while incorporating increased requirements. The prompt corrective action guidelines were also revised to add the Common Equity Tier 1 Capital ratio. Under the final capital rules that became effective on January 1, 2015, there was a requirement for a Common Equity Tier 1 capital conservation buffer of 2.5% of risk weighted assets which is in addition to the other minimum risk based capital standards in the rule. Failure to maintain the buffer will result in restrictions on the Company’s ability to make capital distributions, including the payment of dividends, and to pay discretionary bonuses to executive officers. The capital buffer requirement is being phased-in over three years beginning in 2016. The table below includes the 0.625% increase for 2016 in the minimum capital requirement ratios. The capital buffer requirement effectively raises the minimum required Common Equity Tier 1 Capital ratio to 7.0%, the Tier 1 Capital ratio to 8.5%, and the Total Capital ratio to 10.5% on a fully phased-in basis on January 1, 2019. As of December 31, 2016, the Company and Busey Bank were in compliance with the current phase of the Basel III Rule and management believes that the Company and Busey Bank would meet all capital adequacy requirements under the Basel III Rule on a fully phased-in basis as if such requirements had been in effect.

					Minimum
	Actual				Capital Requirement with Capital Buffer				Minimum To Be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
As of December, 2016:
Total Capital (to Risk Weighted Assets)
Consolidated	$	605,988	14.04	%	$	372,342	8.625	%	$	431,701	10.00	%
Busey Bank	$	550,813	12.86	%	$	369,363	8.625	%	$	428,247	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	557,862	12.92	%	$	286,002	6.625	%	$	345,361	8.00	%
Busey Bank	$	502,687	11.74	%	$	283,714	6.625	%	$	342,598	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	484,246	11.22	%	$	221,247	5.125	%	$	280,606	6.50	%
Busey Bank	$	502,687	11.74	%	$	219,477	5.125	%	$	278,361	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated	$	557,862	10.45	%	$	213,578	4.00	%	N/A		N/A
Busey Bank	$	502,687	9.45	%	$	212,766	4.00	%	$	265,957	5.00	%

					Minimum				Minimum To Be
	Actual				Capital Requirement				Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
As of December 31, 2015:
Total Capital (to Risk Weighted Assets)
Consolidated	$	431,689	14.55	%	$	237,404	8.00	%	$	296,754	10.00	%
Busey Bank	$	396,428	13.45	%	$	235,741	8.00	%	$	294,676	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	394,240	13.29	%	$	178,053	6.00	%	$	237,404	8.00	%
Busey Bank	$	359,228	12.19	%	$	176,806	6.00	%	$	235,741	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	341,828	11.52	%	$	133,540	4.50	%	$	192,890	6.50	%
Busey Bank	$	359,228	12.19	%	$	132,604	4.50	%	$	191,540	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated	$	394,240	10.13	%	$	155,653	4.00	%	N/A		N/A
Busey Bank	$	359,228	9.32	%	$	154,145	4.00	%	$	192,681	5.00	%

- Definition

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1G
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958577-112826

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1C
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958572-112826

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1E
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958574-112826

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1H
-URI http://asc.fasb.org/extlink&oid=35709795&loc=d3e65071-112826

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958569-112826

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958570-112826

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1F
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958575-112826

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958568-112826

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1D
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958573-112826

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Taxes

Income Taxes

Note 15. Income Taxes

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

	Years Ended December 31,
	2016		2015		2014
Current	$	16,271	$	17,839	$	4,830
Deferred	10,452		2,857		12,704


Total income tax expense	$	26,723	$	20,696	$	17,534

A reconciliation of federal and state income taxes at statutory rates to the income taxes included in the statements of income is as follows:

	Years Ended December 31,
	2016		2015		2014
	% of		% of		% of
	Pretax		Pretax		Pretax
	Income		Income		Loss
Income tax at statutory rate	35.0	%	35.0	%	35.0	%
Effect of:
Tax-exempt interest, net	(2.4	)%	(2.3	)%	(2.6	)%
State income taxes, net	4.3	%	4.2	%	5.7	%
Income on bank owned life insurance	(1.0	)%	(1.2	)%	(1.0	)%
Other, net	(0.9	)%	(1.0	)%	(2.2	)%

	35.0	%	34.7	%	34.9	%

Net deferred taxes at December 31, 2016 and 2015 in the accompanying Consolidated Balance Sheets, include the following amounts of deferred tax assets and liabilities (dollars in thousands):

	2016			2015
Deferred tax assets:
Allowance for loan losses	$	19,988		$	18,939
Stock-based compensation	2,396			1,461
Deferred compensation	2,748			2,189
Affordable housing partnerships and other investments	929			2,454
Purchase accounting adjustments	7,186			1,308
Accrued vacation	729			579
Employee costs	2,044			703
Other	1,097			699

	$	37,117		$	28,332

Deferred tax liabilities:
Investment securities:
Unrealized gains on securities available for sale	$	(24	)	$	(1,563	)
Other, net	(639		)	(641		)
Basis in premises and equipment	(1,468		)	(1,887		)
Affordable housing partnerships and other investments	(2,110		)	(1,560		)
Purchase accounting adjustments	(2,242		)	(645		)
Mortgage servicing assets	(1,228		)	(1,386		)
Basis in core deposit and customer intangible assets	(7,377		)	(2,967		)
Deferred loan origination costs	(2,765		)	(359		)

	$	(17,853	)	$	(11,008	)

Net operating loss carryforward, net of valuation allowance	960			4,314

Net deferred tax assets	$	20,224		$	21,638

At December 31, 2016, the Company had an Illinois net operating loss carryforward of $1.0 million, or approximately $13.0 million pre-tax. At December 31, 2015, the Company had an Illinois net operating loss carryforward of $4.3 million, or approximately $59.0 million pre-tax. This net operating loss carryforward will expire in 2022.

At December 31, 2016, the Company also had a Florida net operating loss carryforward of $0.3 million, which will begin to expire in 2030. Due to the uncertainty as to whether the Company will be able to fully realize the Florida carryforward, the Company has a full valuation allowance of $0.3 million related to this net operating loss carryforward. At December 31, 2015, the Company had a Florida net operating loss carryforward of $0.6 million with a full valuation allowance.

In addition, the Company had capital loss carryforwards of $0.4 million in relation to Pulaski at December 31, 2016, that are projected to expire prior to their utilization. Due to the uncertainty as to whether the Company will be able to fully realize the carryforwards, the Company has a full valuation allowance of $0.4 million related to these capital loss carryforwards. There was no valuation allowance related to capital loss carryforwards at December 31, 2015. Management believes that it is more likely than not that the other deferred tax assets included in the accompanying Consolidated Balance Sheets will be fully realized. The Company has determined that no additional valuation allowance is required for any other deferred tax assets as of December 31, 2016 and 2015, although there is no guarantee that those assets will be recognizable in future periods.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2016

Employee Benefit Plans

Employee Benefit Plans

Note 16. Employee Benefit Plans

Employees’ Stock Ownership Plan

Prior to 2014, the First Busey Corporation Employees’ Stock Ownership Plan (“ESOP”) was available to all full-time employees who met certain age and length of service requirements. Effective in 2014, the ESOP was frozen, all shares were fully vested and there will be no new contributions under the ESOP. Dividends on allocated shares of common stock are distributed directly to the participants. All shares held by the ESOP, which were acquired prior to the issuance of FASB ASC Topic 718-40, “Employee Stock Ownership Plans” (ASC 718-40), are included in the computation of average common shares and common share equivalents. This accounting treatment is grandfathered under ASC 718-40 for shares purchased prior to December 31, 1992.

All shares held in the ESOP which were acquired prior to December 31, 1992 were allocated as of December 31, 2006. The number of shares and associated fair values were 136,840 worth $4.2 million and 144,641 worth $3.0 million at December 31, 2016 and 2015, respectively.

Shares held in the ESOP which were acquired after December 31, 1992 and associated fair values were 48,222 worth $1.5 million and 50,989 worth $1.1 million at December 31, 2016 and 2015, respectively.

Profit Sharing Plan

All full-time employees who meet certain age and service requirements are eligible to participate in the Company’s profit-sharing plan. The contributions, if any, are determined solely by the boards of directors of the Company and its subsidiaries, and in no case may the annual contributions be greater than the amounts deductible for federal income tax purposes for that year.

The rights of the participants vest ratably over a five-year period, except for the 401(k) match portion, which vests immediately. Expenses related to the employee benefit plans are included in the statements of income as follows:

	Years Ended December 31,
	2016		2015		2014
	(dollars in thousands)

Total employee benefits	$	4,289	$	2,584	$	2,636

The Company sponsors deferred compensation plans for executive officers for deferral of compensation. While current participants in the deferred compensation plan are permitted to continue participating in the plan, it is not currently open to new participants. The deferred compensation expense reported was $0.3 million for the years ended December 31, 2016, 2015 and 2014. The deferred compensation liability was $6.8 million at December 31, 2016, $5.5 million at December 31, 2015, and $5.1 million at December 31, 2014. The 2016 deferred compensation liability includes $1.1 million related to the Pulaski acquisition which was distributed in January 2017.

Share-based Compensation

12 Months Ended

Dec. 31, 2016

Share-based Compensation

Share-based Compensation

Note 17. Share-based Compensation

Overview

During the first quarter of 2010, the Company adopted the 2010 Equity Plan, which was approved at the annual stockholders meeting on May 19, 2010. During the second quarter of 2015, the Company adopted an amendment to revise some technical terms to the 2010 Equity Plan, which was approved at the annual stockholders meeting on May 20, 2015.

Subject to permitted adjustments for certain corporate transactions, the maximum number of shares that may be delivered to participants, or their beneficiaries, under the 2010 Equity Plan is 1,333,333 shares of First Busey common stock. To the extent that any shares of stock covered by an award (including non-vested stock awards) under the 2010 Equity Plan, or the prior plans, are not delivered for any reason, including because the award is forfeited, canceled, settled in cash or shares are withheld to satisfy tax withholding requirements, such shares will not be deemed to have been delivered for purposes of determining the maximum number of shares of stock available for delivery and will again become available for usage under the 2010 Equity Plan. If any option granted under the 2010 Equity Plan is exercised by tendering shares of stock, only the number of shares of stock issued net of the shares of stock tendered shall be counted for purposes of these limitations. Any shares covered under the terms of a prior plan award that would otherwise become available for reuse under the terms of the prior plan will become available for issuance under the 2010 Equity Plan.

The 2010 Equity Plan’s effective date was May 19, 2010. The 2010 Equity Plan will continue in effect until terminated by the board of directors; provided that no awards may be granted under the 2010 Equity Plan after the ten-year anniversary of the effective date. Any awards that are outstanding after the tenth anniversary of the effective date will remain subject to the terms of the 2010 Equity Plan.

The following additional limits apply to awards under the 2010 Equity Plan:

the maximum number of shares of stock that may be covered by options that are intended to be “performance-based compensation” which are granted to any one participant during any calendar year is 133,333 shares;

the maximum number of shares of stock that may be covered by stock awards that are intended to be “performance-based compensation” which are granted to any one participant during any calendar year is 66,667 shares; and

the maximum dollar amount of cash incentive awards or cash-settled stock awards intended to be “performance-based compensation” payable to any one participant with respect to any calendar year is $1,000,000.

The Company grants share-based compensation awards to its employees and members of its board of directors as provided for under the Company’s 2010 Equity Incentive Plan. The Company currently grants share-based compensation in the form of restricted stock units (“RSUs”) and deferred stock units (“DSUs”). 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 a requisite service periods ranging from one to five years. The Company annually grants share-based awards in the form of DSUs, which are RSUs with a deferred settlement date, to its board of directors. Each DSU is equivalent to one share of the Company’s common stock. The DSUs vest over a twelve-month period following the grant date or on the date of the next Annual Meeting of Stockholders, whichever is earlier. These units generally are subject to the same terms as RSUs under the Company’s 2010 Equity Incentive 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. Subsequent to vesting and prior to delivery, these units will continue to earn dividend equivalents. The Company also has outstanding stock options granted prior to 2011.

Under the terms of the Company’s 2010 Equity Incentive Plan, the Company is allowed, but not required, to source stock option exercises and grants of RSUs and DSUs from its inventory of treasury stock. As of December 31, 2016, the Company held 633,232 shares in treasury. On February 3, 2015, First Busey announced that its board of directors approved a repurchase plan under which the Company is authorized to repurchase up to an aggregate of 666,667 shares of its common stock. The repurchase plan has no expiration date and replaced the prior repurchase plan that was originally approved in 2008. During 2015, the Company purchased 333,333 shares under this repurchase plan. At December 31, 2016 the Company had 333,334 shares that may yet be purchased under the plan.

Stock Option Plan

In relation to the Pulaski acquisition, the Company assumed stock options that were previously issued under shareholder approved Pulaski incentive plans. At the effective time of the acquisition, each outstanding option to purchase shares of Pulaski common stock was converted automatically into a stock option exercisable for that number of shares of First Busey common stock equal to (i) the number of shares of Pulaski common stock subject to the Pulaski stock option immediately prior to the effective time multiplied by (ii) the exchange ratio (rounded down to the nearest whole share), with an exercise price per share equal to (A) the exercise price per share of Pulaski common stock of the Pulaski stock option immediately prior to the effective time divided by (B) the exchange ratio (rounded up to the nearest whole cent). Each Pulaski stock option assumed and converted continues to be subject to the same terms and conditions, as applicable immediately prior to the effective time. All Pulaski stock options are fully vested.

A summary of the status of the Company’s stock option awards for the years ended December 31, 2016, 2015, and 2014, and the changes during the years ended on those dates is as follows:

	2016				2015				2014
			Weighted-				Weighted-				Weighted-
			Average				Average				Average
			Exercise				Exercise				Exercise
	Shares		Price		Shares		Price		Shares		Price

Outstanding at beginning of year	96,568		$	43.64	170,026		$	48.99	232,109		$	51.66
Converted options from Pulaski	309,700		13.29		—		—		—		—
Granted	—		—		—		—		—		—
Exercised	(145,774	)	15.09		—		—		—		—
Forfeited	(394	)	13.87		(517	)	58.23		(8,267	)	57.75
Expired	(50,718	)	58.23		(72,941	)	55.99		(53,816	)	59.22

Outstanding at end of year	209,382		$	15.13	96,568		$	43.64	170,026		$	48.99


Exercisable at end of year	209,382		$	15.13	96,568		$	43.64	170,026		$	48.99

The following table summarizes information about stock options outstanding at December 31, 2016:

								Options
		Options Outstanding						Exercisable
					Weighted-
			Weighted-		Average
Range of			Average		Remaining
Exercise			Exercise		Contractual	Intrinsic			Intrinsic
Prices		Number	Price		Life	Value		Number	Value

$	6.00-15.00	177,083	$	11.76	1.77			177,083
15.01-20.00		3,949	15.20		1.11			3,949
20.01-22.60		17,500	22.59		2.50			17,500
22.61-58.05		10,850	58.05		0.54			10,850

		209,382	$	15.13	1.76	$	3,572	209,382	$	3,572

The Company did not record any stock option compensation expense during 2016, 2015 or 2014. As of December 31, 2016, the Company has no unrecognized stock option expense.

Restricted Stock Unit Plan

In relation to the Pulaski acquisition, the Company also assumed performance based restricted stock unit awards. At the effective time of the acquisition, the number of Pulaski common shares covered by each award was fixed at the target level under Pulaski’s existing plan and automatically converted into a service-based restricted stock unit award of First Busey common stock that is equal to the number of shares of Pulaski common stock multiplied by the exchange ratio. Following the change in control, each restricted stock award will vest, without regard to any performance metrics, on the earlier to occur of September 30, 2017 or the award holders’ involuntary termination of employment for reasons other than cause or voluntary termination of employment for good reason, as specified in the award agreement.

A summary of the changes in the Company’s RSUs for the years ended December 31, 2016, 2015 and 2014 is as follows:

	2016				2015				2014
			Weighted-				Weighted-				Weighted-
			Average				Average				Average
			Grant Date				Grant Date				Grant Date
	Shares		Fair Value		Shares		Fair Value		Shares		Fair Value

Outstanding at beginning of year	424,930		$	17.10	394,624		$	15.67	306,643		$	14.91
Converted units from Pulaski	53,004		14.25		—		—		—		—
Reclass to DSUs	—		—		—		—		(1,653	)	15.12
Granted	126,669		22.44		108,945		20.07		101,426		17.52
Dividend equivalents earned	14,935		21.09		13,089		19.31		11,722		16.86
Vested	(54,913	)	14.61		(73,777	)	14.48		(8,811	)	14.46
Forfeited	(12,015	)	15.19		(17,951	)	16.21		(14,703	)	14.19

Outstanding at end of year	552,610		$	18.45	424,930		$	17.10	394,624		$	15.67

Dividends related to the converted units from Pulaski are accrued and will be paid in cash upon vesting. All other recipients earn quarterly dividend equivalents on their respective units. These dividend equivalents are not paid out during the vesting period, but instead entitle the recipients to additional units. Therefore, dividends earned each quarter compound based upon the updated unit balances. Upon vesting/delivery, shares are expected (though not required) to be issued from treasury.

The Company issued 43,396, 59,983 and 6,206 treasury shares in conjunction with the vesting of RSUs in 2016, 2015 and 2014, respectively. The difference between the number of shares issued and the number of vested units is due to shares issued under a net share settlement option.

On July 11, 2016, under the terms of the 2010 Equity Incentive Plan, the Company granted 126,669 RSUs to members of management. As the stock price on the grant date of July 11, 2016 was $22.44, total compensation cost to be recognized is $2.8 million. This cost will be recognized over a period of five years. Subsequent to the requisite service period, the awards will vest 100%.

A description of RSUs granted in 2015 and 2014 under the terms of the 2010 Equity Incentive Plan can be found in the Company’s Annual Reports on Form 10-K for the years ended December 31, 2015 and 2014.

Deferred Stock Unit Plan

A summary of the changes in the Company’s DSUs for the years ended December 31, 2016, 2015 and 2014 is as follows:

	2016				2015				2014
			Weighted-				Weighted-				Weighted-
			Average				Average				Average
			Grant Date				Grant Date				Grant Date
	Shares		Fair Value		Shares		Fair Value		Shares		Fair Value
Non-vested at beginning of year	24,763		$	19.25	18,581		$	17.31	9,685		$	15.15
Reclass from RSUs	—		—		—		—		1,653		15.12
Granted	22,428		22.44		17,899		20.07		16,566		17.52
Dividend equivalents earned	2,576		21.20		1,872		19.40		1,347		16.89
Vested	(14,729	)	20.18		(13,589	)	17.69		(10,670	)	15.30
Forfeited	—		—		—		—		—		—

Non-vested at end of year	35,038		$	21.04	24,763		$	19.25	18,581		$	17.31

Outstanding at end of year	93,459		$	18.54	68,456		$	17.16	48,686		$	16.02

On July 11, 2016, under the terms of the 2010 Equity Incentive Plan, the Company granted 15,830 DSUs to directors. As the stock price on the grant date of July 11, 2016 was $22.44, total compensation cost to be recognized is $0.4 million. The Company also granted 1,250 DSUs to a new director on July 25, 2016. As the stock price on the grant date of July 25, 2016 was $22.39, total compensation cost to be recognized is insignificant. These costs will be recognized over the requisite service period of one year from the date of grant or the next Annual Meeting of Stockholders; whichever is earlier. Further, the Company granted 5,348 DSUs to the Chairman of the Board. As the stock price on the grant date of July 11, 2016 was $22.44, total compensation cost to be recognized is $0.1 million. This cost will be recognized over a period of five years. Subsequent to the requisite service period, the awards will vest 100%.

A description of DSUs granted in 2015 and 2014 under the terms of the 2010 Equity Incentive Plan can be found in the Company’s Annual Reports on Form 10-K for the years ended December 31, 2015 and 2014.

The Company recognized $1.8 million, $1.4 million and $1.2 million of compensation expense related to both non-vested RSUs and DSUs for the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016, there was $5.8 million of total unrecognized compensation cost related to these non-vested stock awards. This cost is expected to be recognized over a period of 3.5 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Transactions with Related Parties

12 Months Ended

Dec. 31, 2016

Transactions with Related Parties

Transactions with Related Parties

Note 18. Transactions with Related Parties

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

The following is an analysis of the changes in loans to related parties during the year ended December 31, 2016 (dollars in thousands):

Balance at beginning of year	$	57,125
Addition due to change in relationship	1,197
New loans/advances	16,206
Repayments	(26,214		)
Other	231

Balance at end of year	$	48,545

Total unused commitments to directors and executive officers were $24.5 million at December 31, 2016.

Outstanding Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2016

Outstanding Commitments and Contingent Liabilities

Outstanding Commitments and Contingent Liabilities

Note 19. 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 financial position or the results of operations of the Company.

Credit Commitments and Contingencies

The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheets.

The Company’s exposure to credit loss is represented by the contractual amount of those commitments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. 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:

	December 31, 2016		December 31, 2015
	(dollars in thousands)
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	875,077	$	618,551
Standby letters of credit	20,145		15,325

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

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer’s obligation to a third-party. Those guarantees are primarily issued to support public and private borrowing arrangements, including bond financing and similar transactions and primarily have terms of one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds collateral, which may include accounts receivable, inventory, property and equipment, and income producing properties, supporting those commitments if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third-party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount shown in the summary above. If the commitment is funded, the Company would be entitled to seek recovery from the customer. As of December 31, 2016 and 2015, no amounts were recorded as liabilities for the Company’s potential obligations under these guarantees.

Other Commitments

From time to time, the Company will sign contracts for construction projects relating to the Company’s facilities.

Lease Commitments

At December 31, 2016, the Company was obligated under noncancelable operating leases for office space and other commitments. Rent expense under operating leases, included in net occupancy and equipment expense, was $2.7 million, $1.5 million, and $1.5 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Rent commitments before considering renewal options that generally are present, were as follows at December 31, 2016 (dollars in thousands):

2017	$	2,711
2018	2,218
2019	1,723
2020	1,313
2021	532
Thereafter	1,566

	$	10,063

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2016

Derivative Financial Instruments

Derivative Financial Instruments

Note 20. Derivative Financial Instruments

The Company originates and purchases 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 loan investors and foreign currency forward contracts. The Pulaski acquisition impacted the Company’s activity of interest rate lock commitments and forward sales commitments, therefore, 2015 amounts are insignificant. See “Note 21. Fair Value Measurements” for further discussion of the fair value measurement of such derivatives.

Interest Rate Lock Commitments. At December 31, 2016, the Company had issued $149.9 million of unexpired interest rate lock commitments to loan customers. Such interest rate lock commitments that meet the definition of derivative financial instruments under ASC Topic 815, Derivatives and Hedging, are carried at their fair values in other assets or other liabilities in the Consolidated Financial Statements, with changes in the fair values of the corresponding derivative financial assets or liabilities recorded as either a charge or credit to current earnings during the period in which the changes occurred.

Forward Sales Commitments. At December 31, 2016, the Company had issued $400.0 million of unexpired forward sales commitments to mortgage loan investors. Typically, the Company economically hedges mortgage loans held for sale and interest rate lock commitments issued to its residential loan customers related to loans that will be held for sale by obtaining corresponding best-efforts forward sales commitments with an investor to sell the loans at an agreed-upon price at the time the interest rate locks are issued to the customers. Forward sales commitments that meet the definition of derivative financial instruments under ASC Topic 815, Derivatives and Hedging, are carried at their fair values in other assets or other liabilities in the Consolidated Financial Statements. While such forward sales commitments generally served as an economic hedge to the mortgage loans held for sale and interest rate lock commitments, 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.

The fair values of these derivative assets and liabilities recorded in the consolidated balance sheets at December 31, 2016 are summarized as follows (dollars in thousands):

	December 31, 2016
Fair value recorded in other assets	$	6,403
Fair value recorded in other liabilities	3,098

The gross gains and losses on these derivative assets and liabilities recorded in non-interest income and expense in the Consolidated Statements of Income for the twelve months ended December 31, 2016 are summarized as follows (dollars in thousands):

	December 31, 2016
Gross gains	$	25,270
Gross losses	(24,783		)

Net gains	$	487

At December 31, 2016, the impact of the net gain on derivative financial instruments related to interest rate lock commitments issued to residential loan customers for loans that will be held for sale and forward sales commitments to sell residential mortgage loans to loan investors was almost entirely offset by a corresponding decrease in the fair value of loans held for sale.

Foreign Currency Derivatives. The Company has originated certain loan agreements that settle in non-U.S. dollar denominations. The gross balance of such loans, translated into U.S. dollars, was $0.7 million at December 31, 2016. The Company enters into foreign currency forward contracts to mitigate the economic effect of fluctuations in foreign currency exchange rates on these non-U.S. dollar denominated loans. Such foreign currency forward contracts that meet the definition of derivative financial instruments under ASC Topic 815, Derivatives and Hedging, are carried at their fair values in other assets or other liabilities in the Consolidated Financial Statements. While such forward contracts generally served as an economic hedge to certain loans, 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. The gross gains and losses on these derivative assets and liabilities recorded in non-interest income and expense in the Consolidated Statements of Income for the twelve months ended December 31, 2016 and 2015 was insignificant.

The notional amount and fair values, denominated in U.S. dollars, of open foreign currency forward contracts were as follows (dollars in thousands):

	December 31, 2016		December 31, 2015
Notional amount	$	742	$	3,466
Fair value recorded in other assets	—		4
Fair value recorded in other liabilities	7		2

Foreign currency forward contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. We believe the risk of incurring losses due to nonperformance by our counterparties is manageable.

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 1
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+ Details

Fair Value Measurements

12 Months Ended

Dec. 31, 2016

Fair Value Measurements

Fair Value Measurements

Note 21. 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 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. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. FASB ASC Topic 820 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.

There were no transfers between levels during the year ended December 31, 2016.

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. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. 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. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates and, therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein.

Securities Available for Sale. Securities classified as available for sale are reported at fair value utilizing level 1 and level 2 measurements. For mutual funds and other equity securities, unadjusted quoted prices in active markets for identical assets are utilized to determine fair value at the measurement date and have been classified as level 1 in the ASC 820 fair value hierarchy. For all other securities, the Company obtains fair value measurements from an independent pricing service. The independent pricing service evaluations are based on market data. 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 as appropriate through processes such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing, to prepare evaluations. In addition, the independent pricing service uses model processes, such as the Option Adjusted Spread model, to assess interest rate impact and develop prepayment scenarios. The 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.

The 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. Information of this nature is a trigger to acquire further market data. 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 in the ASC 820 fair value hierarchy.

Loans held for sale. Beginning on January 1, 2016, the Company elected to adopt the fair value option for all residential mortgage loans held for sale and to account for such loans at their fair values with changes in fair value recognized in earnings, consistent with the provisions in ASC 820. The Company accounted for held for sale loans that were originated prior to January 1, 2016 under the lower of cost or fair value option, with any corresponding adjustments recorded as a valuation adjustment, if necessary. Such fair value adjustments are recorded as a component of mortgage revenue in the accompanying Consolidated Financial Statements. The fair value of the mortgage loans held for sale are measured using observable quoted market or contract prices or market price equivalents and are classified as level 2 in the ASC 820 fair value hierarchy.

Derivative Assets and Derivative Liabilities. Derivative assets and derivative liabilities are reported at fair value utilizing level 2 measurements. Derivative instruments with positive fair values are reported as assets and derivative instruments with negative fair value are reported as liabilities. The fair value of derivative assets and liabilities is determined based on prices that are obtained from a third-party. Values of derivative assets and liabilities are primarily based on observable inputs and are classified as level 2 in the ASC 820 fair value hierarchy.

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2016 and 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
December 31, 2016
Securities available for sale
U.S. Treasury securities	$	—	$	74,944	$	—	$	74,944
Obligations of U.S. government corporations and agencies	—		79,127		—		79,127
Obligations of states and political subdivisions	—		154,938		—		154,938
Residential mortgage-backed securities	—		302,249		—		302,249
Corporate debt securities	—		143,343		—		143,343
Mutual funds and other equity securities	5,210		—		—		5,210
Loans
Loans held for sale	—		256,319		—		256,319
Derivative assets
Derivative financial assets	—		6,403		—		6,403
Derivative liabilities
Foreign currency forward contracts	—		7		—		7
Derivative financial liabilities	—		3,098		—		3,098

	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
December 31, 2015
Securities available for sale
U.S. Treasury securities	$	—	$	65,191	$	—	$	65,191
Obligations of U.S. government corporations and agencies	—		132,605		—		132,605
Obligations of states and political subdivisions	—		178,612		—		178,612
Residential mortgage-backed securities	—		307,549		—		307,549
Corporate debt securities	—		148,805		—		148,805
Mutual funds and other equity securities	2,076		—		—		2,076
Derivative assets
Foreign currency forward contracts	—		4		—		4
Derivative liabilities
Foreign currency forward contracts	—		2		—		2

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).

Impaired Loans. The Company does not record loans at fair value on a recurring basis. However, periodically, a loan is considered impaired and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Impaired loans measured at fair value typically consist of loans on non-accrual status and restructured loans in compliance with modified terms. 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 the unobservable inputs, all impaired loan fair values have been classified as level 3 in the ASC 820 fair value hierarchy.

OREO. Non-financial assets and non-financial liabilities measured at fair value include OREO (upon initial recognition or subsequent impairment). OREO properties are measured using a combination of observable inputs, including recent appraisals, and unobservable inputs based on customized discounting criteria. Due to the significance of the unobservable inputs, all OREO fair values have been classified as level 3 in the ASC 820 fair value hierarchy.

The following table summarizes assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2016 and 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
	(dollars in thousands)
December 31, 2016
Impaired loans	$	—	$	—	$	3,885	$	3,885
OREO(1)	—		—		—		—

December 31, 2015
Impaired loans	$	—	$	—	$	6,138	$	6,138
OREO(1)	—		—		—		—

(1)

OREO fair value was less than one thousand dollars.

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:

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range
	Estimate		Techniques	Input	(Weighted Average)
	(dollars in thousands)
December 31, 2016
Impaired loans	$	3,885	Appraisal of collateral	Appraisal adjustments	-19.2% to -100.0% (-38.4)%
OREO(1)	—		Appraisal of collateral	Appraisal adjustments	-100.0% (-100.0)%

December 31, 2015
Impaired loans	$	6,138	Appraisal of collateral	Appraisal adjustments	-4.3% to -100.0% (-30.9)%
OREO(1)	—		Appraisal of collateral	Appraisal adjustments	-100.0% (-100.0)%

(1)

OREO fair value was less than one thousand dollars.

FASB ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The carrying value for cash and due from banks and federal funds sold approximates fair value and due to the short-term maturity is classified as level 1. The carrying value approximates fair value for accrued interest receivable and is classified as level 2. The methodologies for other financial assets and financial liabilities are discussed below:

Securities held to maturity

Fair value measurements for securities held to maturity are from an independent pricing service. The independent pricing service evaluations are based on market data. Securities held to maturity are classified as level 2.

Net portfolio loans

Our performing portfolio loans consist of variable rate, hybrid rate and fixed rate loans. For variable rate loans that reprice frequently with no significant change in credit risk, fair values are based on carrying amount. The fair value of hybrid rate and fixed rate loans are estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities and are classified as level 3. Fair value of impaired loans is discussed above.

Mortgage servicing rights

The fair value of mortgage servicing rights is estimated by discounting the future cash flows and classified as level 3 in the ASC 820 fair value hierarchy.

Deposits and securities sold under agreements to repurchase

The fair value of demand deposits, savings accounts, interest-bearing transaction accounts, and certain money market deposits is defined as the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using a discounted cash flow calculation that applies interest rates currently offered for deposits of similar remaining maturities. The carrying amounts reported in the balance sheet for securities sold under agreements to repurchase approximate those liabilities’ fair values. Deposits and securities sold under agreements to repurchase are classified as level 2.

Short-term borrowings

The fair value of short-term borrowings, which includes advances from the FHLB, is determined by discounting the future cash flows of existing advances using rates currently available on advances from the FHLB having similar characteristics and is classified as level 2 in the ASC 820 fair value hierarchy.

Long-term debt

Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate fair value of existing debt and are classified as level 2.

Junior subordinated debt owed to unconsolidated trusts

For variable rate instruments, fair values are based on carrying values and are classified as level 2.

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

	December 31, 2016				December 31, 2015
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Level 1 inputs:
Cash and due from banks	$	166,097	$	166,097	$	319,280	$	319,280
Federal funds sold	609		609		—		—
Level 2 inputs:
Securities held to maturity	47,820		47,683		49,832		50,271
Loans held for sale(2)	—		—		9,351		9,492
Accrued interest receivable	15,562		15,562		12,122		12,122
Level 3 inputs:
Net portfolio loans	3,831,105		3,841,760		2,580,252		2,583,458
Mortgage servicing rights	3,074		7,803		3,475		5,896

Financial liabilities:
Level 2 inputs:
Deposits	$	4,374,298	$	4,368,891	$	3,289,106	$	3,286,677
Securities sold under agreements to repurchase	189,157		189,157		172,972		172,972
Short-term borrowings	75,000		75,000		—		—
Long-term debt	80,000		80,000		80,000		80,000
Junior subordinated debt owed to unconsolidated trusts	70,868		70,868		55,000		55,000
Accrued interest payable	987		987		438		438

(2)

Effective January 1, 2016, measured at fair value on a recurring basis.

Other assets and liabilities of the Company that are not defined as financial instruments are not included in the above disclosures, such as property and equipment. Also, nonfinancial instruments typically not recognized in financial statements nevertheless may have value but are not included in the above disclosures. These include, among other items, the estimated earning potential of core deposit accounts, the earnings potential of loan servicing rights, the earnings potential of the trust operations, customer goodwill and similar items.

- 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

Liability for Loans Sold	12 Months Ended
Liability for Loans Sold	Dec. 31, 2016
Liability for Loans Sold.
Liability for Loans Sold	Note 22. Liability for Loans Sold The Company records an estimated liability for probable amounts due to the Company’s loan investors under contractual obligations related to residential mortgage loans originated for sale that were previously sold and became delinquent or defaulted, or were determined to contain certain documentation or other underwriting deficiencies. Under standard representations and warranties and early payment default clauses in the Company’s mortgage sale agreements, the Company could be required to repurchase mortgage loans sold to investors or reimburse the investors for losses incurred on loans (collectively “repurchase”) in the event of borrower default within a defined period after origination (generally 90 days), or in the event of breaches of contractual representations or warranties made at the time of sale that are not remedied within a defined period after the Company receives notice of such breaches (generally 90 days). In addition, the Company may be required to refund the profit received from the sale of a loan to an investor if the borrower pays off the loan within a defined period after origination, which is generally 120 days. The Company establishes a mortgage repurchase liability related to these events that reflects management’s estimate of losses on loans for which the Company could have a repurchase obligation based on a combination of factors. Such factors incorporate the volume of loans sold in current and previous periods, borrower default expectations, historical investor repurchase demand and appeals success rates (where the investor rescinds the demand based on a cure of the defect or acknowledges that the loan satisfies the investor’s applicable representations and warranties), and estimated loss severity. Payments made to investors as reimbursement for losses incurred are charged against the mortgage repurchase liability. Loans repurchased from investors are initially recorded at fair value, which becomes the Company’s new accounting basis. The difference between the loan’s fair value and the payment made to investors as reimbursement for losses incurred is charged to the mortgage repurchase liability. Subsequent to repurchase, such loans are carried as portfolio loans on the Company’s balance sheet. Loans repurchased with deteriorated credit quality at the date of repurchase are accounted for under ASC Topic 310-30. The liability for loans sold of $2.2 million at December 31, 2016 represents the Company’s best estimate of the probable losses that the Company will incur for various early default provisions and contractual representations and warranties associated with the sales of mortgage loans and is included in other liabilities in the accompanying Consolidated Balance Sheets. Because the level of mortgage loan repurchase losses depends upon economic factors, investor demand strategies and other external conditions that may change over the life of the underlying loans, the level of the liability for mortgage loan repurchase losses is difficult to estimate and requires considerable management judgment. In addition, the Company generally does not service the loans that it sells to investors and is generally unable to track the remaining unpaid balances or delinquency status after sale. As a result, there may be a range of possible losses in excess of the estimated liability that cannot be estimated. Management maintains regular contact with the Company’s investors to monitor and address their repurchase demand practices and concerns.

Operating Segments and Related Information

12 Months Ended

Dec. 31, 2016

Operating Segments and Related Information

Operating Segments and Related Information

Note 23. Operating Segments and Related Information

The Company has three reportable operating segments, Banking, Remittance Processing and Wealth Management. The Banking operating segment provides a full range of banking services to individual and corporate customers through its branch network in downstate Illinois, St. Louis, Missouri metropolitan area, southwest Florida and through its branch in Indianapolis, Indiana. The Remittance Processing operating segment provides for online bill payments, lockbox and walk-in payments. The Wealth Management operating segment provides a full range of asset management, investment and fiduciary services to individuals, businesses and foundations, tax preparation, philanthropic advisory services and farm and brokerage services.

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 “other” category consists of the Parent Company and the elimination of intercompany transactions. Effective for the year ended December 31, 2015, the Company realigned its operating segments.

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

Following is a summary of selected financial information for the Company’s operating segments (dollars in thousands):

	Goodwill				Total Assets
As of December 31,	2016		2015		2016			2015
Banking	$	82,128	$	4,824	$	5,369,669		$	3,944,031
Remittance Processing	8,992		8,992		32,379			30,231
Wealth Management	11,694		11,694		28,351			27,651
Other	—		—		(5,229		)	(2,937		)

Totals	$	102,814	$	25,510	$	5,425,170		$	3,998,976

	Years ended December 31,
	2016			2015			2014
Net interest income:
Banking	$	156,374		$	112,712		$	102,410
Remittance Processing	55			53			52
Wealth Management	266			272			287
Other	(2,035		)	(1,222		)	(1,173		)

Total net interest income	$	154,660		$	111,815		$	101,576


Non-interest income:
Banking	$	41,816		$	30,933		$	29,014
Remittance Processing	11,554			11,332			9,561
Wealth Management	23,563			23,651			22,439
Other	(1,764		)	(1,124		)	(2,073		)

Total non-interest income	$	75,169		$	64,792		$	58,941


Non-interest expense:
Banking	$	117,293		$	86,672		$	82,167
Remittance Processing	8,668			8,526			7,519
Wealth Management	16,484			16,003			14,741
Other	5,417			4,104			3,782

Total non-interest expense	$	147,862		$	115,305		$	108,209


Income before income taxes:
Banking	$	75,347		$	55,374		$	47,257
Remittance Processing	2,941			2,859			2,094
Wealth Management	7,345			7,921			7,986
Other	(9,216		)	(6,452		)	(7,029		)

Total income before income taxes	$	76,417		$	59,702		$	50,308


Net income:
Banking	$	48,691		$	36,026		$	30,744
Remittance Processing	1,758			1,709			1,227
Wealth Management	4,388			4,721			4,701
Other	(5,143		)	(3,450		)	(3,898		)

Total net income	$	49,694		$	39,006		$	32,774

- 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

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-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2016

Parent Company Only Financial Information

Parent Company Only Financial Information

Note 24. Parent Company Only Financial Information

Condensed financial data for First Busey Corporation is presented below.

BALANCE SHEETS

	December 31,
	2016		2015
	(dollars in thousands)

ASSETS
Cash and due from subsidiary banks	$	27,507	$	13,787
Investments in subsidiaries:
Bank	602,197		381,992
Non-bank	25,017		24,867
Premises and equipment, net	301		412
Other assets	17,173		13,919

Total assets	$	672,195	$	434,977


LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Junior subordinated debentures owed to unconsolidated trusts	$	70,868	$	55,000
Other liabilities	7,013		6,791

Total liabilities	77,881		61,791


Total stockholders’ equity	594,314		373,186

Total liabilities and stockholders’ equity	$	672,195	$	434,977

STATEMENTS OF INCOME

	Years Ended December 31,
	2016		2015			2014
	(dollars in thousands)
Operating income:
Dividends from subsidiaries:
Pulaski Bank before bank merger	$	8,700	$	—		$	—
Non-bank	4,000		8,000			2,000
Interest and dividend income	—		—			20
Other income	5,664		5,633			3,475

Total operating income	18,364		13,633			5,495


Expense:
Salaries, wages and employee benefits	8,879		7,658			6,778
Interest expense	2,035		1,223			1,183
Operating expense	3,967		3,203			2,563

Total expense	14,881		12,084			10,524


Income (loss) before income tax benefit and distributions (in excess of) less than net income of subsidiaries	3,483		1,549			(5,029		)

Income tax benefit	4,073		3,001			3,131


Income (loss) before distributions less than (in excess of) net income of subsidiaries	7,556		4,550			(1,898		)

Distributions less than (in excess of) net income of subsidiaries:
Bank	41,980		37,878			31,991
Non-bank	158		(3,422		)	2,681


Net income	$	49,694	$	39,006		$	32,774

STATEMENTS OF CASH FLOWS

	Years Ended December 31,
	2016			2015			2014
	(dollars in thousands)
Cash Flows from Operating Activities
Net income	$	49,694		$	39,006		$	32,774
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	198			114			112
Distributions less than net income of subsidiaries	(42,138		)	(34,456		)	(34,672		)
Stock-based compensation	1,803			1,418			1,187
Changes in assets and liabilities:
Decrease (increase) in other assets	1,057			(4,871		)	951
Decrease in other liabilities	(3,690		)	(361		)	(1,077		)

Net cash provided by (used in) operating activities	6,924			850			(725		)


Cash Flows from Investing Activities
Proceeds from sales of securities classified available for sale	—			14			—
Net cash received (outlay) for business acquisition	602			(33,759		)	—
Purchases of premises and equipment	(3		)	(2		)	(114		)

Net cash provided by (used in) investing activities	599			(33,747		)	(114		)


Cash Flows from Financing Activities
Proceeds from charter amendment with subsidiary bank	30,000			60,000			60,000
Redemption of SBLF preferred stock	—			(72,664		)	—
Value of shares surrendered upon vesting of restricted stock units to cover tax obligations	(809		)	(269		)	(45		)
Cash dividends paid	(22,748		)	(18,619		)	(17,224		)
Common stock issuance costs	(246		)	—			—
Cash payment for fractional shares related to reverse stock split	—			(5		)	—
Purchase of treasury stock	—			(6,296		)	—

Net cash provided by (used in) financing activities	6,197			(37,853		)	42,731


Net increase (decrease) in cash and due from subsidiary banks	13,720			(70,750		)	41,892
Cash and cash equivalents, beginning of period	13,787			84,537			42,645


Cash and cash equivalents, ending of period	$	27,507		$	13,787		$	84,537

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References + Details

Unaudited Interim Financial Data

12 Months Ended

Dec. 31, 2016

Unaudited Interim Financial Data

Unaudited Interim Financial Data

Note 25. Unaudited Interim Financial Data

The following table reflects summarized unaudited quarterly data for the periods described (dollars in thousands, except per share data):

	2016
	December 31		September 30		June 30		March 31

Total interest income	$	47,639	$	47,188	$	40,538	$	29,524
Total interest expense	3,004		3,057		2,586		1,582

Net interest income	44,635		44,131		37,952		27,942
Provision for loan losses	1,500		1,950		1,100		1,000
Total non-interest income	19,001		20,745		18,577		16,846
Total non-interest expense	44,411		39,415		36,348		27,688

Income before income taxes	17,725		23,511		19,081		16,100
Income taxes	6,270		8,089		6,698		5,666

Net income	$	11,455	$	15,422	$	12,383	$	10,434
Preferred stock dividends	—		—		—		—

Net income available to common stockholders	$	11,455	$	15,422	$	12,383	$	10,434


Basic earnings per share	$	0.30	$	0.40	$	0.35	$	0.36
Diluted earnings per share	$	0.30	$	0.40	$	0.35	$	0.36

	2015
	December 31		September 30		June 30		March 31

Total interest income	$	31,119	$	29,730	$	28,910	$	28,263
Total interest expense	1,520		1,535		1,559		1,593

Net interest income	29,599		28,195		27,351		26,670
Provision for loan losses	1,000		100		—		500
Total non-interest income	16,315		15,889		16,623		15,965
Total non-interest expense	28,363		27,950		28,445		30,547

Income before income taxes	16,551		16,034		15,529		11,588
Income taxes	5,868		5,408		5,593		3,827

Net income	$	10,683	$	10,626	$	9,936	$	7,761
Preferred stock dividends	155		182		181		182

Net income available to common stockholders	$	10,528	$	10,444	$	9,755	$	7,579


Basic earnings per share	$	0.37	$	0.36	$	0.34	$	0.26
Diluted earnings per share	$	0.36	$	0.36	$	0.33	$	0.26

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Significant Accounting Policies

Basis of consolidation

The Consolidated Financial Statements of the Company have been prepared in conformity with GAAP and conform to predominant practice within the banking industry.

Purchased credit-impaired loans

Allowance for loan losses

Premises and equipment, net

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

Long-lived assets

Other real estate owned

Goodwill

Cash surrender value of bank-owned life insurance

The Company has purchased life insurance policies on certain executives and senior officers. Life insurance is recorded at its cash surrender value.

Transfers of financial assets

Income taxes

At December 31, 2016, the Company was not under examination by any tax authority.

Treasury Stock

Stock-based employee compensation

Segment disclosure

Business Combinations

Derivative Financial Instruments

Earnings per share

Earnings per common share, adjusted to reflect the Reverse Stock Split, have been computed as follows:

	For the Years Ended December 31,
	2016		2015		2014
	(dollars in thousands, except per share data)
Net income available to common stockholders	$	49,694	$	38,306	$	32,047
Shares:
Weighted average common shares outstanding	35,081		28,928		28,969
Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method	332		175		128


Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation	35,413		29,103		29,097


Basic earnings per common share	$	1.42	$	1.32	$	1.11


Diluted earnings per common share	$	1.40	$	1.32	$	1.10

Reclassifications

Subsequent events

Impact of new financial accounting standards

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Significant Accounting Policies

Schedule of estimated useful lives for premises and equipment

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

Schedule of net income per share calculations for basic and diluted methods

	For the Years Ended December 31,
	2016		2015		2014
	(dollars in thousands, except per share data)
Net income available to common stockholders	$	49,694	$	38,306	$	32,047
Shares:
Weighted average common shares outstanding	35,081		28,928		28,969
Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method	332		175		128


Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation	35,413		29,103		29,097


Basic earnings per common share	$	1.42	$	1.32	$	1.11


Diluted earnings per common share	$	1.40	$	1.32	$	1.10

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2016

Acquisitions

Schedule of assets acquired and liabilities assumed of Pulaski and their initial fair value estimates

The following table presents the assets acquired and liabilities assumed of Pulaski as of April 30, 2016 and their fair value (dollars in thousands):

	As Recorded by Pulaski		Fair Value Adjustments			As Recorded by First Busey
Assets acquired:
Cash and cash equivalents	$	25,580	$	—		$	25,580
Securities	47,895		105		(a)	48,000
Loans held for sale	184,856		—			184,856
Portfolio loans	1,243,913		(14,452		)(b)	1,229,461
Premises and equipment	17,236		(667		)(c)	16,569
OREO	5,022		(2,534		)(d)	2,488
Goodwill	3,939		(3,939		)(e)	—
Other intangible assets	—		15,468		(f)	15,468
Other assets	70,365		(122		)(g)	70,243

Total assets acquired	1,598,806		(6,141		)	1,592,665


Liabilities assumed:
Deposits	1,226,906		1,102		(h)	1,228,008
Other borrowings	205,840		906		(i)	206,746
Trust preferred securities	19,589		(3,805		)(j)	15,784
Other liabilities	24,594		(612		)(k)	23,982

Total liabilities assumed	1,476,929		(2,409		)	1,474,520


Net assets acquired	$	121,877	$	(3,732	)	$	118,145


Consideration paid:
Cash						$	5
Common stock						192,990
Fair value of stock options assumed						2,454

Total consideration paid						195,449


Goodwill						$	77,304

Explanation:

(a)	Fair value adjustments of the securities portfolio as of the acquisition date.
(b)	Fair value adjustments based on the Company’s evaluation of the acquired loan portfolio, write-off of net deferred loan costs and elimination of the allowance for loan losses recorded by Pulaski. $16.9 million is expected to be accreted over the estimated four year remaining life of the respective loans in a manner that approximates the level yield method.
(c)	Fair value adjustments based on the Company’s evaluation of the acquired premises and equipment.
(d)	Fair value adjustment based on the Company’s evaluation of the acquired OREO portfolio.
(e)	Eliminate Pulaski’s existing goodwill.
(f)	Recording of the core deposit intangible asset on the acquired core deposit accounts. Amount to be amortized using a sum of years digits method over a 14 year useful life.
(g)	Fair value adjustment of other assets at the acquisition date.
(h)	Fair value adjustment to time deposits. Amount to be accreted over two years in a manner that approximates the level yield method.
(i)	Fair value adjustment to the FHLB borrowings. Such borrowings were repaid shortly after the acquisition date, so there will be no discount accretion.
(j)	Fair value adjustment to the trust preferred securities at the acquisition date. Amount to be accreted over the weighted average remaining life of 18 years in a manner that approximates the level yield method.
(k)	Fair value adjustment of other liabilities at the acquisition date.

Schedule of unaudited pro forma results of operations for the Pulaski acquisition

	Pro Forma
	Twelve Months Ended December 31,
	2016		2015
	(dollars in thousands)
Total revenues (net interest income plus non-interest income)	$	245,861	$	247,694
Net income	46,276		57,092
Diluted earnings per common share	1.20		1.46

Securities (Tables)

12 Months Ended

Dec. 31, 2016

Securities

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

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(dollars in thousands)
December 31, 2016:
Available for sale
U.S. Treasury securities	$	74,784	$	185	$	(25	)	$	74,944
Obligations of U.S. government corporations and agencies	79,577		46		(496		)	79,127
Obligations of states and political subdivisions	154,438		1,093		(593		)	154,938
Residential mortgage-backed securities	303,641		1,390		(2,782		)	302,249
Corporate debt securities	142,836		630		(123		)	143,343

Total debt securities	755,276		3,344		(4,019		)	754,601
Mutual funds and other equity securities	4,475		735		—			5,210

Total	$	759,751	$	4,079	$	(4,019	)	$	759,811


Held to maturity
Obligations of states and political subdivisions	$	44,333	$	122	$	(160	)	$	44,295
Commercial mortgage-backed securities	3,487		23		(122		)	3,388

Total	$	47,820	$	145	$	(282	)	$	47,683


			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value

	(dollars in thousands)
December 31, 2015:
Available for sale
U.S. Treasury securities	$	65,003	$	189	$	(1	)	$	65,191
Obligations of U.S. government corporations and agencies	132,547		211		(153		)	132,605
Obligations of states and political subdivisions	176,764		2,154		(306		)	178,612
Residential mortgage-backed securities	304,978		2,922		(351		)	307,549
Corporate debt securities	150,001		307		(1,503		)	148,805


Total debt securities	829,293		5,783		(2,314		)	832,762
Mutual funds and other equity securities	1,642		434		—			2,076


Total	$	830,935	$	6,217	$	(2,314	)	$	834,838



Held to maturity
Obligations of states and political subdivisions	$	48,835	$	449	$	(34	)	$	49,250
Commercial mortgage-backed securities	997		24		—			1,021


Total	$	49,832	$	473	$	(34	)	$	50,271

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

	Available for sale				Held to maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(dollars in thousands)				(dollars in thousands)
Due in one year or less	$	119,423	$	119,612	$	1,705	$	1,705
Due after one year through five years	305,314		305,626		19,750		19,721
Due after five years through ten years	66,702		67,756		23,247		23,124
Due after ten years	263,837		261,607		3,118		3,133

Total	$	755,276	$	754,601	$	47,820	$	47,683

Schedule of realized gains and losses related to sales of securities available for sale

	For the Years Ended December 31,
	2016			2015			2014
	(dollars in thousands)
Gross security gains	$	1,383		$	401		$	807
Gross security (losses)	(151		)	(21		)	(31		)


Net security gains	$	1,232		$	380		$	776

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

	Continuous unrealized losses existing for less than 12 months, gross					Continuous unrealized losses existing for greater than 12 months, gross					Total, gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(dollars in thousands)
December 31, 2016:
Available for sale
U.S. Treasury securities	$	9,997	$	(25	)	$	—	$			$	9,997	$	(25	)
Obligations of U.S. government corporations and agencies	46,209		(496		)	—					46,209		(496		)
Obligations of states and political subdivisions	64,832		(585		)	1,154		(8		)	65,986		(593		)
Residential mortgage-backed Securities	168,898		(2,782		)	—		—			168,898		(2,782		)
Corporate debt securities	32,749		(123		)	—		—			32,749		(123		)

Total temporarily impaired
Securities	$	322,685	$	(4,011	)	$	1,154	$	(8	)	$	323,839	$	(4,019	)


Held to maturity
Obligations of states and political subdivisions	$	24,558	$	(160	)	$		$			$	24,558	$	(160	)
Commercial mortgage-backed securities	2,385		(122		)	—		—			2,385		(122		)

Total temporarily impaired
Securities	$	26,943	$	(282	)	$	—	$	—		$	26,943	$	(282	)

	Continuous unrealized losses existing for less than 12 months, gross					Continuous unrealized losses existing for greater than 12 months, gross					Total, gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(dollars in thousands)
December 31, 2015:
Available for sale
U.S. Treasury securities	$	364	$	(1	)	$	—	$			$	364	$	(1	)
Obligations of U.S. government corporations and agencies	52,154		(153		)	—					52,154		(153		)
Obligations of states and political subdivisions	40,026		(159		)	11,419		(147		)	51,445		(306		)
Residential mortgage-backed Securities	93,608		(351		)	—		—			93,608		(351		)
Corporate debt securities	99,148		(1,503		)	—		—			99,148		(1,503		)

Total temporarily impaired
Securities	$	285,300	$	(2,167	)	$	11,419	$	(147	)	$	296,719	$	(2,314	)


Held to maturity
Obligations of states and political subdivisions(1)	$	8,451	$	(34	)	$	91	$	—		$	8,542	$	(34	)

Total temporarily impaired
Securities	$	8,451	$	(34	)	$	91	$	—		$	8,542	$	(34	)

(1)

Unrealized losses existing for greater than 12 months, gross, was less than one thousand dollars.

General obligation bonds

Securities

Summary of amortized cost and fair values of the Company's portfolio of municipal bonds by issuer state

December 31, 2016:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
	(dollars in thousands)
Illinois	70	$	59,120	$	59,182	$	845
Wisconsin	31	21,390		21,479		693
Michigan	38	23,233		23,472		618
Pennsylvania	10	10,242		10,235		1,023
Texas	16	10,731		10,702		669
Ohio	10	11,009		11,005		1,100
Iowa	3	5,332		5,345		1,782
Other	43	22,028		22,192		516

Total general obligations bonds	221	$	163,085	$	163,612	$	740

December 31, 2015:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
	(dollars in thousands)
Illinois	77	$	64,455	$	65,557	$	851
Wisconsin	36	30,889		31,079		863
Michigan	39	27,923		28,339		727
Pennsylvania	10	12,601		12,650		1,265
Texas	18	12,117		12,165		676
Ohio	10	10,723		10,705		1,071
Iowa	3	5,550		5,571		1,857
Other	48	26,938		27,375		570

Total general obligations bonds	241	$	191,196	$	193,441	$	803

Revenue bonds

Securities

Summary of amortized cost and fair values of the Company's portfolio of municipal bonds by issuer state

December 31, 2016:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
	(dollars in thousands)
Indiana	10	$	11,207	$	11,244	$	1,124
Illinois	7	7,321		7,275		1,039
Other	22	17,158		17,102		777

Total revenue bonds	39	$	35,686	$	35,621	$	913

December 31, 2015:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
	(dollars in thousands)
Indiana	9	$	10,187	$	10,173	$	1,130
Illinois	7	8,450		8,478		1,211
Other	21	15,766		15,770		751

Total revenue bonds	37	$	34,403	$	34,421	$	930

Loans held for sale (Tables)

12 Months Ended

Dec. 31, 2016

Loans held for sale

Summary of mortgage revenue

The following is a summary of mortgage revenue (dollars in thousands):

	December 31, 2016
Premiums received on sales of mortgage loans, including fair value adjustments	$	43,119
Less direct origination costs	(32,793		)
Less provisions to liability for loans sold	(175		)
Mortgage servicing revenues	1,801

Mortgage revenue	$	11,952

Mortgage Loan Servicing (Tables)

12 Months Ended

Dec. 31, 2016

Mortgage Loan Servicing

Summary of mortgage servicing rights capitalized and amortized

The following summarizes mortgage servicing rights capitalized and amortized (dollars in thousands):

	For the Years Ended December 31,
	2016		2015		2014

Mortgage servicing rights capitalized	$	1,488	$	1,361	$	983

Mortgage servicing rights amortized	$	1,921	$	2,146	$	2,228

Portfolio loans (Tables)

12 Months Ended

Dec. 31, 2016

Portfolio loans

Schedule of distributions of loans

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

	December 31, 2016		December 31, 2015
Commercial	$	959,888	$	656,576
Commercial real estate	1,654,164		1,208,429
Real estate construction	182,078		96,568
Retail real estate	1,069,060		651,191
Retail other	13,710		14,975

Portfolio loans	$	3,878,900	$	2,627,739

Less allowance for loan losses	47,795		47,487

Net portfolio loans	$	3,831,105	$	2,580,252

Summary of risk grades segregated by category of portfolio loans (excluding loans held for sale, accretable purchase accounting adjustments, and non-posted clearings)

	December 31, 2016
	Pass		Watch		Special Mention		Substandard		Doubtful
	(dollars in thousands)
Commercial	$	826,163	$	70,260	$	26,951	$	26,941	$	11,685
Commercial real estate	1,507,513		69,145		40,775		35,385		5,154
Real estate construction	134,574		39,936		8,033		994		47
Retail real estate	1,050,671		6,586		2,793		2,158		4,484
Retail other	13,691		27		2		—		53

Total	$	3,532,612	$	185,954	$	78,554	$	65,478	$	21,423

	December 31, 2015
	Pass		Watch		Special Mention		Substandard		Doubtful
	(dollars in thousands)
Commercial	$	553,294	$	57,703	$	27,142	$	10,966	$	7,617
Commercial real estate	1,068,568		58,238		51,418		29,781		1,496
Real estate construction	65,284		15,053		14,755		1,157		366
Retail real estate	607,398		21,637		13,974		4,204		3,139
Retail other	14,172		64		644		—		130

Total	$	2,308,716	$	152,695	$	107,933	$	46,108	$	12,748

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

	December 31, 2016
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
	(dollars in thousands)
Commercial	$	165	$	363	$	37	$	11,685
Commercial real estate	478		256		—		5,154
Real estate construction	—		—		—		47
Retail real estate	2,394		364		94		4,484
Retail other	55		15		—		53

Total	$	3,092	$	998	$	131	$	21,423

	December 31, 2015
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
	(dollars in thousands)
Commercial	$	598	$	162	$	15	$	7,617
Commercial real estate	1,037		27		—		1,496
Real estate construction	—		—		—		366
Retail real estate	1,278		160		—		3,139
Retail other	19		1		—		130

Total	$	2,932	$	350	$	15	$	12,748

Summary of restructured loans

	December 31, 2016		December 31, 2015
	(dollars in thousands)
Restructured loans:
In compliance with modified terms	$	10,593	$	8,770
30 – 89 days past due	59		60
Included in non-performing loans	1,285		643

Total	$	11,937	$	9,473

Schedule of details of impaired loans, segregated by category

	December 31, 2016
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(dollars in thousands)
Commercial	$	16,955	$	8,060	$	3,835	$	11,895	$	1,535	$	10,127
Commercial real estate	12,922		9,036		3,118		12,154		1,778		8,939
Real estate construction	518		483		11		494		11		793
Retail real estate	13,112		11,733		385		12,118		140		13,102
Retail other	139		53		3		56		3		171

Total	$	43,646	$	29,365	$	7,352	$	36,717	$	3,467	$	33,132

	December 31, 2015
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(dollars in thousands)
Commercial	$	14,302	$	3,362	$	8,238	$	11,600	$	3,304	$	4,482
Commercial real estate	5,865		4,018		1,363		5,381		459		8,700
Real estate construction	1,569		830		29		859		29		833
Retail real estate	12,378		11,108		452		11,560		152		12,070
Retail other	272		233		5		238		5		261

Total	$	34,386	$	19,551	$	10,087	$	29,638	$	3,949	$	26,346

Schedule of changes in the allowance for loan losses

	Years Ended December 31,
	2016			2015			2014
	(dollars in thousands)

Balance, beginning of year	$	47,487		$	47,453		$	47,567
Provision for loan losses	5,550			1,600			2,000
Loan balances charged-off	(9,656		)	(4,694		)	(7,371		)
Recoveries applicable to loan balances previously charged-off	4,414			3,128			5,257


Balance, end of year	$	47,795		$	47,487		$	47,453

Schedule of activity on the allowance for loan losses

	Year Ended December 31, 2016
	Commercial			Commercial Real Estate			Real Estate Construction			Retail Real Estate			Retail Other			Total
	(dollars in thousands)
Beginning balance	$	13,115		$	18,604		$	1,763		$	13,714		$	291		$	47,487
Provision for loan losses	5,520			2,366			(310		)	(2,277		)	251			5,550
Charged-off	(6,598		)	(470		)	(24		)	(2,106		)	(458		)	(9,656		)
Recoveries	1,266			123			441			2,317			267			4,414

Ending Balance	$	13,303		$	20,623		$	1,870		$	11,648		$	351		$	47,795

	Year Ended December 31, 2015
	Commercial			Commercial Real Estate			Real Estate Construction			Retail Real Estate			Retail Other			Total
	(dollars in thousands)
Beginning balance	$	10,041		$	20,639		$	2,795		$	13,662		$	316		$	47,453
Provision for loan losses	4,016			(2,064		)	(1,316		)	857			107			1,600
Charged-off	(1,333		)	(1,462		)	—			(1,534		)	(365		)	(4,694		)
Recoveries	391			1,491			284			729			233			3,128

Ending Balance	$	13,115		$	18,604		$	1,763		$	13,714		$	291		$	47,487

	Year Ended December 31, 2014
	Commercial			Commercial Real Estate			Real Estate Construction			Retail Real Estate			Retail Other			Total
	(dollars in thousands)
Beginning balance	$	10,378		$	22,112		$	3,708		$	11,149		$	220		$	47,567
Provision for loan losses	1,243			(2,679		)	(1,799		)	4,921			314			2,000
Charged-off	(1,990		)	(1,173		)	(726		)	(3,052		)	(430		)	(7,371		)
Recoveries	410			2,379			1,612			644			212			5,257

Ending Balance	$	10,041		$	20,639		$	2,795		$	13,662		$	316		$	47,453

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

	As of December 31, 2016
	Commercial		Commercial Real Estate		Real Estate Construction		Retail Real Estate		Retail Other		Total
	(dollars in thousands)
Amount allocated to:
Loans individually evaluated for impairment	$	1,535	$	1,778	$	11	$	140	$	3	$	3,467
Loans collectively evaluated for impairment	11,768		18,845		1,859		11,508		348		44,328

Ending Balance	$	13,303	$	20,623	$	1,870	$	11,648	$	351	$	47,795


Loans:
Loans individually evaluated for impairment	$	11,834	$	11,147	$	494	$	11,644	$	56	$	35,175
Loans collectively evaluated for impairment	947,993		1,642,010		181,584		1,056,942		13,654		3,842,183
PCI loans evaluated for Impairment	61		1,007		—		474		—		1,542

Ending Balance	$	959,888	$	1,654,164	$	182,078	$	1,069,060	$	13,710	$	3,878,900

	As of December 31, 2015
	Commercial		Commercial Real Estate		Real Estate Construction		Retail Real Estate		Retail Other		Total
	(dollars in thousands)
Amount allocated to:
Loans individually evaluated for impairment	$	3,304	$	459	$	29	$	152	$	5	$	3,949
Loans collectively evaluated for impairment	9,811		18,145		1,734		13,562		286		43,538

Ending Balance	$	13,115	$	18,604	$	1,763	$	13,714	$	291	$	47,487


Loans:
Loans individually evaluated for impairment	$	11,600	$	5,005	$	527	$	11,560	$	238	$	28,930
Loans collectively evaluated for impairment	644,976		1,203,048		95,709		639,631		14,737		2,598,101
PCI loans evaluated for Impairment	—		376		332		—		—		708

Ending Balance	$	656,576	$	1,208,429	$	96,568	$	651,191	$	14,975	$	2,627,739

OREO (Tables)

12 Months Ended

Dec. 31, 2016

OREO.

Summary of activities relating to OREO

	Year Ended December 31, 2016			Year Ended December 31, 2015
	(dollars in thousands)
OREO:
Beginning balance	$	783		$	216
Additions, transfers from loans	2,775			1,251
Additions, fair value from Herget Financial acquisition	—			284
Additions, fair value from Pulaski acquisition	2,488			—
Proceeds from sales of OREO	(4,498		)	(1,090		)
Gain on sales of OREO	999			122
Valuation allowance for OREO	(29		)	—

Ending balance	$	2,518		$	783

Premises and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2016

Premises and Equipment, net

Summary of premises and equipment, net

	December 31,
	2016		2015
	(dollars in thousands)

Land and improvements	$	26,484	$	21,950
Buildings and improvements	73,484		64,270
Furniture and equipment	37,543		34,039

	137,511		120,259
Less accumulated depreciation	59,650		57,171

Total premises and equipment, net	$	77,861	$	63,088

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Other Intangible Assets

Schedule of carrying amount of goodwill by operating segment

	Balance at		Balance at
Goodwill:	December 31, 2016		December 31, 2015
	(dollars in thousands)
Banking	$	82,128	$	4,824
Remittance Processing	8,992		8,992
Wealth Management	11,694		11,694

Total goodwill	$	102,814	$	25,510

Schedule of other intangible asset disclosures

	Balance at December 31, 2016		2016 Amortization		Balance at December 31, 2015		2015 Amortization
	(dollars in thousands)
Amortized intangible assets:
Core deposit intangible assets	$	17,338	$	3,361	$	5,231	$	2,060
Customer relationship intangible assets	1,124		1,077		2,201		1,132

	$	18,462	$	4,438	$	7,432	$	3,192

Schedule of carrying amount of amortized intangible assets

	Core deposit intangible		Customer relationship intangible
	(dollars in thousands)
As of December 31, 2016:
Gross carrying amount	$	38,467	$	12,220
Accumulated amortization	21,129		11,096

	$	17,338	$	1,124


Estimated amortization expense on balance at December 31, 2016:
2017	$	3,190	$	663
2018	2,143		115
2019	1,986		98
2020	1,826		82
2021	1,666		66
Thereafter	6,527		100

	$	17,338	$	1,124

Deposits (Tables)

12 Months Ended

Dec. 31, 2016

Deposits,

Schedule of composition of deposits

	December 31, 2016		December 31, 2015
	(dollars in thousands)
Demand deposits, noninterest-bearing	$	1,134,133	$	881,685
Interest-bearing transaction deposits, saving deposits and money market deposits	2,453,965		1,949,370
Time deposits	786,200		458,051

Total	$	4,374,298	$	3,289,106

Schedule of maturities of time deposits

As of December 31, 2016, the scheduled maturities of time deposits are as follows (dollars in thousands):

2017	$	539,341
2018	151,415
2019	59,313
2020	16,459
2021	19,577
Thereafter	95

	$	786,200

Borrowings (Tables)

12 Months Ended

Dec. 31, 2016

Borrowings

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

	December 31, 2016			December 31, 2015
	(dollars in thousands)
Securities sold under agreements to repurchase
Balance at end of period	$	189,157		$	172,972
Weighted average interest rate at end of period	0.30		%	0.18		%
Maximum outstanding at any month end in year-to-date period	$	216,293		$	202,376
Average daily balance for the year-to-date period	$	181,474		$	179,662
Weighted average interest rate during period(1)	0.22		%	0.10		%

Short-term borrowings, FHLB advances
Balance at end of period	$	75,000		$	—
Weighted average interest rate at end of period	0.63		%	—		%
Maximum outstanding at any month end in year-to-date period	$	236,700		$	—
Average daily balance for the year-to-date period	$	96,698		$	—
Weighted average interest rate during period(1)	0.53		%	—		%

Short-term borrowings, revolving loan
Balance at end of period	$	—		$	—
Weighted average interest rate at end of period	—		%	—		%
Maximum outstanding at any month end in year-to-date period	$	10,000		$	—
Average daily balance for the year-to-date period	$	2,596		$	—
Weighted average interest rate during period(1) (2)	4.78		%	—		%

(1)

The weighted average interest rate is computed by dividing total interest for the period by the average daily balance outstanding.

(2)

Includes interest and non-usage fee.

Summary of long-term debt

	December 31, 2016		December 31, 2015
	(dollars in thousands)

Notes payable, FHLB, ranging in original maturity from nineteen months to ten years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock.	$	80,000	$	80,000

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

Capital (Tables)

12 Months Ended

Dec. 31, 2016

Capital

Schedule of capital adequacy requirements

					Minimum
	Actual				Capital Requirement with Capital Buffer				Minimum To Be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
As of December, 2016:
Total Capital (to Risk Weighted Assets)
Consolidated	$	605,988	14.04	%	$	372,342	8.625	%	$	431,701	10.00	%
Busey Bank	$	550,813	12.86	%	$	369,363	8.625	%	$	428,247	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	557,862	12.92	%	$	286,002	6.625	%	$	345,361	8.00	%
Busey Bank	$	502,687	11.74	%	$	283,714	6.625	%	$	342,598	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	484,246	11.22	%	$	221,247	5.125	%	$	280,606	6.50	%
Busey Bank	$	502,687	11.74	%	$	219,477	5.125	%	$	278,361	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated	$	557,862	10.45	%	$	213,578	4.00	%	N/A		N/A
Busey Bank	$	502,687	9.45	%	$	212,766	4.00	%	$	265,957	5.00	%

					Minimum				Minimum To Be
	Actual				Capital Requirement				Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
As of December 31, 2015:
Total Capital (to Risk Weighted Assets)
Consolidated	$	431,689	14.55	%	$	237,404	8.00	%	$	296,754	10.00	%
Busey Bank	$	396,428	13.45	%	$	235,741	8.00	%	$	294,676	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	394,240	13.29	%	$	178,053	6.00	%	$	237,404	8.00	%
Busey Bank	$	359,228	12.19	%	$	176,806	6.00	%	$	235,741	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	341,828	11.52	%	$	133,540	4.50	%	$	192,890	6.50	%
Busey Bank	$	359,228	12.19	%	$	132,604	4.50	%	$	191,540	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated	$	394,240	10.13	%	$	155,653	4.00	%	N/A		N/A
Busey Bank	$	359,228	9.32	%	$	154,145	4.00	%	$	192,681	5.00	%

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes

Schedule of the components of income taxes

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

	Years Ended December 31,
	2016		2015		2014
Current	$	16,271	$	17,839	$	4,830
Deferred	10,452		2,857		12,704


Total income tax expense	$	26,723	$	20,696	$	17,534

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

	Years Ended December 31,
	2016		2015		2014
	% of		% of		% of
	Pretax		Pretax		Pretax
	Income		Income		Loss
Income tax at statutory rate	35.0	%	35.0	%	35.0	%
Effect of:
Tax-exempt interest, net	(2.4	)%	(2.3	)%	(2.6	)%
State income taxes, net	4.3	%	4.2	%	5.7	%
Income on bank owned life insurance	(1.0	)%	(1.2	)%	(1.0	)%
Other, net	(0.9	)%	(1.0	)%	(2.2	)%

	35.0	%	34.7	%	34.9	%

Schedule of the deferred tax assets and liabilities

Net deferred taxes at December 31, 2016 and 2015 in the accompanying Consolidated Balance Sheets, include the following amounts of deferred tax assets and liabilities (dollars in thousands):

	2016			2015
Deferred tax assets:
Allowance for loan losses	$	19,988		$	18,939
Stock-based compensation	2,396			1,461
Deferred compensation	2,748			2,189
Affordable housing partnerships and other investments	929			2,454
Purchase accounting adjustments	7,186			1,308
Accrued vacation	729			579
Employee costs	2,044			703
Other	1,097			699

	$	37,117		$	28,332

Deferred tax liabilities:
Investment securities:
Unrealized gains on securities available for sale	$	(24	)	$	(1,563	)
Other, net	(639		)	(641		)
Basis in premises and equipment	(1,468		)	(1,887		)
Affordable housing partnerships and other investments	(2,110		)	(1,560		)
Purchase accounting adjustments	(2,242		)	(645		)
Mortgage servicing assets	(1,228		)	(1,386		)
Basis in core deposit and customer intangible assets	(7,377		)	(2,967		)
Deferred loan origination costs	(2,765		)	(359		)

	$	(17,853	)	$	(11,008	)

Net operating loss carryforward, net of valuation allowance	960			4,314

Net deferred tax assets	$	20,224		$	21,638

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Employee Benefit Plans

Schedule of expenses related to the employee benefit plans

	Years Ended December 31,
	2016		2015		2014
	(dollars in thousands)

Total employee benefits	$	4,289	$	2,584	$	2,636

Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2016

Share-based Compensation

Schedule of status and changes in stock option plans

	2016				2015				2014
			Weighted-				Weighted-				Weighted-
			Average				Average				Average
			Exercise				Exercise				Exercise
	Shares		Price		Shares		Price		Shares		Price

Outstanding at beginning of year	96,568		$	43.64	170,026		$	48.99	232,109		$	51.66
Converted options from Pulaski	309,700		13.29		—		—		—		—
Granted	—		—		—		—		—		—
Exercised	(145,774	)	15.09		—		—		—		—
Forfeited	(394	)	13.87		(517	)	58.23		(8,267	)	57.75
Expired	(50,718	)	58.23		(72,941	)	55.99		(53,816	)	59.22

Outstanding at end of year	209,382		$	15.13	96,568		$	43.64	170,026		$	48.99


Exercisable at end of year	209,382		$	15.13	96,568		$	43.64	170,026		$	48.99

Summary of stock options outstanding by range of exercise prices

The following table summarizes information about stock options outstanding at December 31, 2016:

								Options
		Options Outstanding						Exercisable
					Weighted-
			Weighted-		Average
Range of			Average		Remaining
Exercise			Exercise		Contractual	Intrinsic			Intrinsic
Prices		Number	Price		Life	Value		Number	Value

$	6.00-15.00	177,083	$	11.76	1.77			177,083
15.01-20.00		3,949	15.20		1.11			3,949
20.01-22.60		17,500	22.59		2.50			17,500
22.61-58.05		10,850	58.05		0.54			10,850

		209,382	$	15.13	1.76	$	3,572	209,382	$	3,572

Summary of the changes in stock awards (restricted stock units)

	2016				2015				2014
			Weighted-				Weighted-				Weighted-
			Average				Average				Average
			Grant Date				Grant Date				Grant Date
	Shares		Fair Value		Shares		Fair Value		Shares		Fair Value

Outstanding at beginning of year	424,930		$	17.10	394,624		$	15.67	306,643		$	14.91
Converted units from Pulaski	53,004		14.25		—		—		—		—
Reclass to DSUs	—		—		—		—		(1,653	)	15.12
Granted	126,669		22.44		108,945		20.07		101,426		17.52
Dividend equivalents earned	14,935		21.09		13,089		19.31		11,722		16.86
Vested	(54,913	)	14.61		(73,777	)	14.48		(8,811	)	14.46
Forfeited	(12,015	)	15.19		(17,951	)	16.21		(14,703	)	14.19

Outstanding at end of year	552,610		$	18.45	424,930		$	17.10	394,624		$	15.67

Summary of the changes in the company's stock unit awards

	2016				2015				2014
			Weighted-				Weighted-				Weighted-
			Average				Average				Average
			Grant Date				Grant Date				Grant Date
	Shares		Fair Value		Shares		Fair Value		Shares		Fair Value
Non-vested at beginning of year	24,763		$	19.25	18,581		$	17.31	9,685		$	15.15
Reclass from RSUs	—		—		—		—		1,653		15.12
Granted	22,428		22.44		17,899		20.07		16,566		17.52
Dividend equivalents earned	2,576		21.20		1,872		19.40		1,347		16.89
Vested	(14,729	)	20.18		(13,589	)	17.69		(10,670	)	15.30
Forfeited	—		—		—		—		—		—

Non-vested at end of year	35,038		$	21.04	24,763		$	19.25	18,581		$	17.31

Outstanding at end of year	93,459		$	18.54	68,456		$	17.16	48,686		$	16.02

Transactions with Related Parties (Tables)

12 Months Ended

Dec. 31, 2016

Transactions with Related Parties

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

The following is an analysis of the changes in loans to related parties during the year ended December 31, 2016 (dollars in thousands):

Balance at beginning of year	$	57,125
Addition due to change in relationship	1,197
New loans/advances	16,206
Repayments	(26,214		)
Other	231

Balance at end of year	$	48,545

Outstanding Commitments and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2016

Outstanding Commitments and Contingent Liabilities

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

	December 31, 2016		December 31, 2015
	(dollars in thousands)
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	875,077	$	618,551
Standby letters of credit	20,145		15,325

Schedule of commitments before considering renewal options

Rent commitments before considering renewal options that generally are present, were as follows at December 31, 2016 (dollars in thousands):

2017	$	2,711
2018	2,218
2019	1,723
2020	1,313
2021	532
Thereafter	1,566

	$	10,063

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Financial Instruments

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

The fair values of these derivative assets and liabilities recorded in the consolidated balance sheets at December 31, 2016 are summarized as follows (dollars in thousands):

	December 31, 2016
Fair value recorded in other assets	$	6,403
Fair value recorded in other liabilities	3,098

Summary of gross gains and losses on derivative assets and liabilities recorded in non-interest income and expense in consolidated statements of income

	December 31, 2016
Gross gains	$	25,270
Gross losses	(24,783		)

Net gains	$	487

Schedule of notional amount and fair values of open foreign currency forward contracts

The notional amount and fair values, denominated in U.S. dollars, of open foreign currency forward contracts were as follows (dollars in thousands):

	December 31, 2016		December 31, 2015
Notional amount	$	742	$	3,466
Fair value recorded in other assets	—		4
Fair value recorded in other liabilities	7		2

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Measurements

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

	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
December 31, 2016
Securities available for sale
U.S. Treasury securities	$	—	$	74,944	$	—	$	74,944
Obligations of U.S. government corporations and agencies	—		79,127		—		79,127
Obligations of states and political subdivisions	—		154,938		—		154,938
Residential mortgage-backed securities	—		302,249		—		302,249
Corporate debt securities	—		143,343		—		143,343
Mutual funds and other equity securities	5,210		—		—		5,210
Loans
Loans held for sale	—		256,319		—		256,319
Derivative assets
Derivative financial assets	—		6,403		—		6,403
Derivative liabilities
Foreign currency forward contracts	—		7		—		7
Derivative financial liabilities	—		3,098		—		3,098

	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
December 31, 2015
Securities available for sale
U.S. Treasury securities	$	—	$	65,191	$	—	$	65,191
Obligations of U.S. government corporations and agencies	—		132,605		—		132,605
Obligations of states and political subdivisions	—		178,612		—		178,612
Residential mortgage-backed securities	—		307,549		—		307,549
Corporate debt securities	—		148,805		—		148,805
Mutual funds and other equity securities	2,076		—		—		2,076
Derivative assets
Foreign currency forward contracts	—		4		—		4
Derivative liabilities
Foreign currency forward contracts	—		2		—		2

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

	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
	(dollars in thousands)
December 31, 2016
Impaired loans	$	—	$	—	$	3,885	$	3,885
OREO(1)	—		—		—		—

December 31, 2015
Impaired loans	$	—	$	—	$	6,138	$	6,138
OREO(1)	—		—		—		—

(1)

OREO fair value was less than one thousand dollars.

Schedule of quantitative information about Level 3 fair value measurements

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range
	Estimate		Techniques	Input	(Weighted Average)
	(dollars in thousands)
December 31, 2016
Impaired loans	$	3,885	Appraisal of collateral	Appraisal adjustments	-19.2% to -100.0% (-38.4)%
OREO(1)	—		Appraisal of collateral	Appraisal adjustments	-100.0% (-100.0)%

December 31, 2015
Impaired loans	$	6,138	Appraisal of collateral	Appraisal adjustments	-4.3% to -100.0% (-30.9)%
OREO(1)	—		Appraisal of collateral	Appraisal adjustments	-100.0% (-100.0)%

(1)

OREO fair value was less than one thousand dollars.

Schedule of estimated fair values of financial instruments

	December 31, 2016				December 31, 2015
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Level 1 inputs:
Cash and due from banks	$	166,097	$	166,097	$	319,280	$	319,280
Federal funds sold	609		609		—		—
Level 2 inputs:
Securities held to maturity	47,820		47,683		49,832		50,271
Loans held for sale(2)	—		—		9,351		9,492
Accrued interest receivable	15,562		15,562		12,122		12,122
Level 3 inputs:
Net portfolio loans	3,831,105		3,841,760		2,580,252		2,583,458
Mortgage servicing rights	3,074		7,803		3,475		5,896

Financial liabilities:
Level 2 inputs:
Deposits	$	4,374,298	$	4,368,891	$	3,289,106	$	3,286,677
Securities sold under agreements to repurchase	189,157		189,157		172,972		172,972
Short-term borrowings	75,000		75,000		—		—
Long-term debt	80,000		80,000		80,000		80,000
Junior subordinated debt owed to unconsolidated trusts	70,868		70,868		55,000		55,000
Accrued interest payable	987		987		438		438

(2) Effective January 1, 2016, measured at fair value on a recurring basis.

Operating Segments and Related Information (Tables)

12 Months Ended

Dec. 31, 2016

Operating Segments and Related Information

Summary of information relating to operating segments

Following is a summary of selected financial information for the Company’s operating segments (dollars in thousands):

	Goodwill				Total Assets
As of December 31,	2016		2015		2016			2015
Banking	$	82,128	$	4,824	$	5,369,669		$	3,944,031
Remittance Processing	8,992		8,992		32,379			30,231
Wealth Management	11,694		11,694		28,351			27,651
Other	—		—		(5,229		)	(2,937		)

Totals	$	102,814	$	25,510	$	5,425,170		$	3,998,976

	Years ended December 31,
	2016			2015			2014
Net interest income:
Banking	$	156,374		$	112,712		$	102,410
Remittance Processing	55			53			52
Wealth Management	266			272			287
Other	(2,035		)	(1,222		)	(1,173		)

Total net interest income	$	154,660		$	111,815		$	101,576


Non-interest income:
Banking	$	41,816		$	30,933		$	29,014
Remittance Processing	11,554			11,332			9,561
Wealth Management	23,563			23,651			22,439
Other	(1,764		)	(1,124		)	(2,073		)

Total non-interest income	$	75,169		$	64,792		$	58,941


Non-interest expense:
Banking	$	117,293		$	86,672		$	82,167
Remittance Processing	8,668			8,526			7,519
Wealth Management	16,484			16,003			14,741
Other	5,417			4,104			3,782

Total non-interest expense	$	147,862		$	115,305		$	108,209


Income before income taxes:
Banking	$	75,347		$	55,374		$	47,257
Remittance Processing	2,941			2,859			2,094
Wealth Management	7,345			7,921			7,986
Other	(9,216		)	(6,452		)	(7,029		)

Total income before income taxes	$	76,417		$	59,702		$	50,308


Net income:
Banking	$	48,691		$	36,026		$	30,744
Remittance Processing	1,758			1,709			1,227
Wealth Management	4,388			4,721			4,701
Other	(5,143		)	(3,450		)	(3,898		)

Total net income	$	49,694		$	39,006		$	32,774

Parent Company Only Financial Information (Tables) - Parent

12 Months Ended

Dec. 31, 2016

Parent Company Only Financial Information

Balance Sheets

BALANCE SHEETS

	December 31,
	2016		2015
	(dollars in thousands)

ASSETS
Cash and due from subsidiary banks	$	27,507	$	13,787
Investments in subsidiaries:
Bank	602,197		381,992
Non-bank	25,017		24,867
Premises and equipment, net	301		412
Other assets	17,173		13,919

Total assets	$	672,195	$	434,977


LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Junior subordinated debentures owed to unconsolidated trusts	$	70,868	$	55,000
Other liabilities	7,013		6,791

Total liabilities	77,881		61,791


Total stockholders’ equity	594,314		373,186

Total liabilities and stockholders’ equity	$	672,195	$	434,977

Statements of Income

STATEMENTS OF INCOME

	Years Ended December 31,
	2016		2015			2014
	(dollars in thousands)
Operating income:
Dividends from subsidiaries:
Pulaski Bank before bank merger	$	8,700	$	—		$	—
Non-bank	4,000		8,000			2,000
Interest and dividend income	—		—			20
Other income	5,664		5,633			3,475

Total operating income	18,364		13,633			5,495


Expense:
Salaries, wages and employee benefits	8,879		7,658			6,778
Interest expense	2,035		1,223			1,183
Operating expense	3,967		3,203			2,563

Total expense	14,881		12,084			10,524


Income (loss) before income tax benefit and distributions (in excess of) less than net income of subsidiaries	3,483		1,549			(5,029		)

Income tax benefit	4,073		3,001			3,131


Income (loss) before distributions less than (in excess of) net income of subsidiaries	7,556		4,550			(1,898		)

Distributions less than (in excess of) net income of subsidiaries:
Bank	41,980		37,878			31,991
Non-bank	158		(3,422		)	2,681


Net income	$	49,694	$	39,006		$	32,774

Statements of Cash Flows

STATEMENTS OF CASH FLOWS

	Years Ended December 31,
	2016			2015			2014
	(dollars in thousands)
Cash Flows from Operating Activities
Net income	$	49,694		$	39,006		$	32,774
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	198			114			112
Distributions less than net income of subsidiaries	(42,138		)	(34,456		)	(34,672		)
Stock-based compensation	1,803			1,418			1,187
Changes in assets and liabilities:
Decrease (increase) in other assets	1,057			(4,871		)	951
Decrease in other liabilities	(3,690		)	(361		)	(1,077		)

Net cash provided by (used in) operating activities	6,924			850			(725		)


Cash Flows from Investing Activities
Proceeds from sales of securities classified available for sale	—			14			—
Net cash received (outlay) for business acquisition	602			(33,759		)	—
Purchases of premises and equipment	(3		)	(2		)	(114		)

Net cash provided by (used in) investing activities	599			(33,747		)	(114		)


Cash Flows from Financing Activities
Proceeds from charter amendment with subsidiary bank	30,000			60,000			60,000
Redemption of SBLF preferred stock	—			(72,664		)	—
Value of shares surrendered upon vesting of restricted stock units to cover tax obligations	(809		)	(269		)	(45		)
Cash dividends paid	(22,748		)	(18,619		)	(17,224		)
Common stock issuance costs	(246		)	—			—
Cash payment for fractional shares related to reverse stock split	—			(5		)	—
Purchase of treasury stock	—			(6,296		)	—

Net cash provided by (used in) financing activities	6,197			(37,853		)	42,731


Net increase (decrease) in cash and due from subsidiary banks	13,720			(70,750		)	41,892
Cash and cash equivalents, beginning of period	13,787			84,537			42,645


Cash and cash equivalents, ending of period	$	27,507		$	13,787		$	84,537

Unaudited Interim Financial Data (Tables)

12 Months Ended

Dec. 31, 2016

Unaudited Interim Financial Data

Schedule reflecting the summarized quarterly data

The following table reflects summarized unaudited quarterly data for the periods described (dollars in thousands, except per share data):

	2016
	December 31		September 30		June 30		March 31

Total interest income	$	47,639	$	47,188	$	40,538	$	29,524
Total interest expense	3,004		3,057		2,586		1,582

Net interest income	44,635		44,131		37,952		27,942
Provision for loan losses	1,500		1,950		1,100		1,000
Total non-interest income	19,001		20,745		18,577		16,846
Total non-interest expense	44,411		39,415		36,348		27,688

Income before income taxes	17,725		23,511		19,081		16,100
Income taxes	6,270		8,089		6,698		5,666

Net income	$	11,455	$	15,422	$	12,383	$	10,434
Preferred stock dividends	—		—		—		—

Net income available to common stockholders	$	11,455	$	15,422	$	12,383	$	10,434


Basic earnings per share	$	0.30	$	0.40	$	0.35	$	0.36
Diluted earnings per share	$	0.30	$	0.40	$	0.35	$	0.36

	2015
	December 31		September 30		June 30		March 31

Total interest income	$	31,119	$	29,730	$	28,910	$	28,263
Total interest expense	1,520		1,535		1,559		1,593

Net interest income	29,599		28,195		27,351		26,670
Provision for loan losses	1,000		100		—		500
Total non-interest income	16,315		15,889		16,623		15,965
Total non-interest expense	28,363		27,950		28,445		30,547

Income before income taxes	16,551		16,034		15,529		11,588
Income taxes	5,868		5,408		5,593		3,827

Net income	$	10,683	$	10,626	$	9,936	$	7,761
Preferred stock dividends	155		182		181		182

Net income available to common stockholders	$	10,528	$	10,444	$	9,755	$	7,579


Basic earnings per share	$	0.37	$	0.36	$	0.34	$	0.26
Diluted earnings per share	$	0.36	$	0.36	$	0.33	$	0.26

Significant Accounting Policies - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) segment	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Trust assets
Assets under care	$ 5,400,000	$ 5,100,000
Loan servicing and portfolio loans
Impairment charges	$ 0	0
Maximum estimated economic life	5 years
Goodwill
Goodwill impairment	$ 0	0
Income taxes
Valuation allowance	0	0
Accruals for payments of interest and penalties	0	0
Stock-based employee compensation
Compensation expense recognized	$ 1,800	$ 1,400	$ 1,200
Segment disclosure
Number of operating segments \| segment	3
Maximum \| Commercial
Premises and Equipment, net
Estimated Useful Life	3 years
Buildings and improvements \| Minimum
Premises and Equipment, net
Estimated Useful Life	3 years
Buildings and improvements \| Maximum
Premises and Equipment, net
Estimated Useful Life	40 years
Furniture and equipment \| Minimum
Premises and Equipment, net
Estimated Useful Life	3 years
Furniture and equipment \| Maximum
Premises and Equipment, net
Estimated Useful Life	10 years
RSU
Stock-based employee compensation
Compensation expense recognized	$ 0
RSU \| Minimum
Stock-based employee compensation
Requisite service periods	1 year
RSU \| Maximum
Stock-based employee compensation
Requisite service periods	5 years

Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net income per share calculations for basic and diluted methods
Net income available to common stockholders (in dollars)	$ 11,455	$ 15,422	$ 12,383	$ 10,434	$ 10,528	$ 10,444	$ 9,755	$ 7,579	$ 49,694	$ 38,306	$ 32,047
Shares:
Weighted average common shares outstanding									35,081,000	28,928,000	28,969,000
Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method (in shares)									332,000	175,000	128,000
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation									35,413,000	29,103,000	29,097,000
Basic earnings per common share (in dollars per share)	$ 0.30	$ 0.40	$ 0.35	$ 0.36	$ 0.37	$ 0.36	$ 0.34	$ 0.26	$ 1.42	$ 1.32	$ 1.11
Diluted earnings per common share (in dollars per share)	$ 0.30	$ 0.40	$ 0.35	$ 0.36	$ 0.36	$ 0.36	$ 0.33	$ 0.26	$ 1.40	$ 1.32	$ 1.10
Stock options
Anti-dilutive securities excluded from the calculation of common stock equivalents
Number of anti-dilutive securities (in shares)									28,350	61,568
Warrants
Anti-dilutive securities excluded from the calculation of common stock equivalents
Number of anti-dilutive securities (in shares)									191,278	191,278
RSU
Anti-dilutive securities excluded from the calculation of common stock equivalents
Number of anti-dilutive securities (in shares)									132,017

Acquisitions (Details) $ / shares in Units, $ in Thousands, shares in Millions			1 Months Ended	3 Months Ended		6 Months Ended	12 Months Ended
	Apr. 30, 2016 USD ($) item $ / shares	Apr. 29, 2016 USD ($) $ / shares shares	Apr. 30, 2016 USD ($) item	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Nov. 04, 2016 USD ($)	Dec. 31, 2016 USD ($) $ / shares	Dec. 31, 2015 USD ($) $ / shares	Feb. 06, 2017 item
Business Acquisition
Total consolidated assets				$ 5,425,170			$ 5,425,170	$ 3,998,976
Net portfolio loans				3,831,105			3,831,105	2,580,252
Total deposits				4,374,298			4,374,298	3,289,106
Assets acquired:
Goodwill				102,814			102,814	25,510
Consideration paid:
Goodwill				102,814			102,814	25,510
First Community Financial Partners, Inc
Business Acquisition
Number of branches \| item									9
Pulaski
Business Acquisition
Number of branches \| item	13		13
Share consideration (in dollar per share) \| $ / shares	$ 0.79
Market value of common stock issued (in shares) \| shares		9.4
Market value of common stock issued		$ 193,000
Share price \| $ / shares		$ 20.44
Options to purchase common stock, conversion ratio	0.79
Maximum period of measurement adjustments from the closing date of acquisition	1 year
Business acquisition expenses				6,900			10,000
Acquisition expenses related to professional and legal fees				100			1,200
Assets acquired:
Cash and cash equivalents	$ 25,580		$ 25,580
Securities	48,000		48,000
Loans held for sale	184,856		184,856
Portfolio loans	1,229,461		1,229,461
Premises and equipment	16,569		16,569
OREO	2,488		2,488
Goodwill	77,304		77,304
Other intangible assets	15,468		15,468
Other assets	70,243		70,243
Total assets acquired	1,592,665		1,592,665
Liabilities assumed:
Deposits	1,228,008		1,228,008
Other borrowings	206,746		206,746
Trust preferred securities	15,784		15,784
Other liabilities	23,982		23,982
Total liabilities assumed	1,474,520		1,474,520
Net assets acquired	118,145		118,145
Consideration paid:
Cash			5
Common Stock			192,990
Fair value of stock options assumed			2,454
Total consideration paid			195,449
Goodwill	77,304		77,304
Amount expected to be accreted	$ 16,900		16,900
Estimated remaining life for loans expected to be accreted (in years)	4 years
Period for amount to be accreted under time deposits (in years)	2 years
Period for amount to be accreted under trust preferred securities (in years)	18 years
Fair value of performing loans, including loans held for sale	$ 1,400,000		1,400,000
Amount expected to be accreted, gross	16,600		16,600
Contractual amount of PCI loans	21,200		21,200
Fair value of credit-impaired loans	9,700		9,700
PCI Loans sold to out side parties				1,600	$ 6,200
Accretable yield expected to be recognized over the estimated period	300		300
Revenues since date of acquisition						$ 40,200
Net income since date of acquisition						$ 10,500
Pro forma acquisition related expenses, pre-tax basis							15,000
Total revenues (net interest income plus non-interest income)							245,861	247,694
Net income							$ 46,276	$ 57,092
Diluted earnings per common share (in dollars per share) \| $ / shares							$ 1.20	$ 1.46
Pulaski \| Initial Fair Value Adjustments
Assets acquired:
Securities	105		105
Portfolio loans	(14,452)		(14,452)
Premises and equipment	(667)		(667)
OREO	(2,534)		(2,534)
Goodwill	(3,939)		(3,939)
Other intangible assets	15,468		15,468
Other assets	(122)		(122)
Total assets acquired	(6,141)		(6,141)
Liabilities assumed:
Deposits	1,102		1,102
Other borrowings	906		906
Trust preferred securities	(3,805)		(3,805)
Other liabilities	(612)		(612)
Total liabilities assumed	(2,409)		(2,409)
Net assets acquired	(3,732)		(3,732)
Consideration paid:
Goodwill	$ (3,939)		(3,939)
Pulaski \| Core deposit intangible assets
Consideration paid:
Useful life of intangible asset (in years)	14 years
Herget Financial Corp and Herget Bank
Business Acquisition
Business acquisition expenses								$ 1,000
First Community Financial Partners, Inc
Business Acquisition
Total consolidated assets				1,300,000			$ 1,300,000
Net portfolio loans				991,600			991,600
Total deposits				$ 1,100,000			$ 1,100,000
Pulaski
Assets acquired:
Cash and cash equivalents	$ 25,580		25,580
Securities	47,895		47,895
Loans held for sale	184,856		184,856
Portfolio loans	1,243,913		1,243,913
Premises and equipment	17,236		17,236
OREO	5,022		5,022
Goodwill	3,939		3,939
Other assets	70,365		70,365
Total assets acquired	1,598,806		1,598,806
Liabilities assumed:
Deposits	1,226,906		1,226,906
Other borrowings	205,840		205,840
Trust preferred securities	19,589		19,589
Other liabilities	24,594		24,594
Total liabilities assumed	1,476,929		1,476,929
Net assets acquired	121,877		121,877
Consideration paid:
Goodwill	$ 3,939		$ 3,939

Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Cash and Cash Equivalents
Required reserve balance	$ 22.5	$ 14.6

Securities - General Disclosures (Details) $ in Thousands	3 Months Ended	12 Months Ended
Securities - General Disclosures (Details) $ in Thousands	Jun. 30, 2016 USD ($) item	Dec. 31, 2016 USD ($) item	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Available for sale
Amortized Cost		$ 759,751	$ 830,935
Gross Unrealized Gains		4,079	6,217
Gross Unrealized Losses		(4,019)	(2,314)
Fair Value		759,811	834,838
Held to maturity
Amortized Cost		47,820	49,832
Gross Unrealized Gains		145	473
Gross Unrealized Losses		(282)	(34)
Fair Value		47,683	50,271
Available for sale, Amortized Cost
Due in one year or less		119,423
Due after one year through five years		305,314
Due after five years through ten years		66,702
Due after ten years		263,837
Amortized Cost		755,276
Available for sale, Fair Value
Due in one year or less		119,612
Due after one year through five years		305,626
Due after five years through ten years		67,756
Due after ten years		261,607
Fair Value		754,601
Held to maturity, Amortized Cost
Due in one year or less		1,705
Due after one year through five years		19,750
Due after five years through ten years		23,247
Due after ten years		3,118
Amortized Cost		47,820	49,832
Held to maturity, Fair Value
Due in one year or less		1,705
Due after one year through five years		19,721
Due after five years through ten years		23,124
Due after ten years		3,133
Fair Value		47,683	50,271
Realized gains and losses related to sales of securities available for sale
Gross security gains		1,383	401	$ 807
Gross security (losses)		(151)	(21)	(31)
Net security gains (losses)		1,232	380	776
Tax provision related to net realized gains (losses)		400	100	$ 300
Number of held-to-maturity securities sold \| item	1
Fair value of held-to-maturity securities sold	$ 400
Carrying amount of investment securities pledged as collateral		547,200	627,400
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross		322,685	285,300
Continuous unrealized losses existing greater than 12 months, gross		1,154	11,419
Total		323,839	296,719
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross		(4,011)	(2,167)
Continuous unrealized losses existing greater than 12 months, gross		(8)	(147)
Total		(4,019)	(2,314)
Held to maturity, Fair Value
Continuous unrealized losses existing for less than 12 months, gross		26,943	8,451
Continuous unrealized losses existing for greater than 12 months, gross			91
Total		26,943	8,542
Held to maturity, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross		(282)	(34)
Total		$ (282)	(34)
Number of securities in unrealized loss position \| item		283
Securities in unrealized loss position as a percentage of aggregate carrying value of investments		1.21%
U.S. Treasury securities
Available for sale
Amortized Cost		$ 74,784	65,003
Gross Unrealized Gains		185	189
Gross Unrealized Losses		(25)	(1)
Fair Value		74,944	65,191
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross		9,997	364
Total		9,997	364
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross		(25)	(1)
Total		(25)	(1)
Obligations of U.S. government corporations and agencies
Available for sale
Amortized Cost		79,577	132,547
Gross Unrealized Gains		46	211
Gross Unrealized Losses		(496)	(153)
Fair Value		79,127	132,605
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross		46,209	52,154
Total		46,209	52,154
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross		(496)	(153)
Total		(496)	(153)
Obligations of states and political subdivisions
Available for sale
Amortized Cost		154,438	176,764
Gross Unrealized Gains		1,093	2,154
Gross Unrealized Losses		(593)	(306)
Fair Value		154,938	178,612
Held to maturity
Amortized Cost		44,333	48,835
Gross Unrealized Gains		122	449
Gross Unrealized Losses		(160)	(34)
Fair Value		44,295	49,250
Held to maturity, Amortized Cost
Amortized Cost		44,333	48,835
Held to maturity, Fair Value
Fair Value		44,295	49,250
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross		64,832	40,026
Continuous unrealized losses existing greater than 12 months, gross		1,154	11,419
Total		65,986	51,445
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross		(585)	(159)
Continuous unrealized losses existing greater than 12 months, gross		(8)	(147)
Total		(593)	(306)
Held to maturity, Fair Value
Continuous unrealized losses existing for less than 12 months, gross		24,558	8,451
Continuous unrealized losses existing for greater than 12 months, gross			91
Total		24,558	8,542
Held to maturity, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross		(160)	(34)
Total		(160)	(34)
Obligations of states and political subdivisions \| Maximum
Held to maturity, Unrealized Losses
Continuous unrealized losses existing for greater than 12 months, gross			1
Residential mortgage-backed securities
Available for sale
Amortized Cost		303,641	304,978
Gross Unrealized Gains		1,390	2,922
Gross Unrealized Losses		(2,782)	(351)
Fair Value		302,249	307,549
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross		168,898	93,608
Total		168,898	93,608
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross		(2,782)	(351)
Total		(2,782)	(351)
Corporate debt securities
Available for sale
Amortized Cost		142,836	150,001
Gross Unrealized Gains		630	307
Gross Unrealized Losses		(123)	(1,503)
Fair Value		143,343	148,805
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross		32,749	99,148
Total		32,749	99,148
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross		(123)	(1,503)
Total		(123)	(1,503)
Debt securities
Available for sale
Amortized Cost		755,276	829,293
Gross Unrealized Gains		3,344	5,783
Gross Unrealized Losses		(4,019)	(2,314)
Fair Value		754,601	832,762
Mutual funds and other equity securities
Available for sale
Amortized Cost		4,475	1,642
Gross Unrealized Gains		735	434
Fair Value		5,210	2,076
Commercial mortgage-backed securities
Held to maturity
Amortized Cost		3,487	997
Gross Unrealized Gains		23	24
Gross Unrealized Losses		(122)
Fair Value		3,388	1,021
Held to maturity, Amortized Cost
Amortized Cost		3,487	997
Held to maturity, Fair Value
Fair Value		3,388	$ 1,021
Held to maturity, Fair Value
Continuous unrealized losses existing for less than 12 months, gross		2,385
Total		2,385
Held to maturity, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross		(122)
Total		$ (122)

Securities - Obligations by State (Details) $ in Thousands	12 Months Ended
Securities - Obligations by State (Details) $ in Thousands	Dec. 31, 2016 USD ($) item	Dec. 31, 2015 USD ($) item
Securities
Available for sale, fair value	$ 759,811	$ 834,838
Held to maturity, fair value	$ 47,683	$ 50,271
General obligation bonds
Securities
Number of issuers \| item	221	241
Amortized Cost	$ 163,085	$ 191,196
Fair Value	163,612	193,441
Average Exposure Per Issuer (Fair Value)	740	803
Amount of largest exposure to a single issuer	$ 3,400	$ 3,400
Percentage of the entity's stockholders equity in excess of aggregate book or market value	10.00%	10.00%
Percentage of underlying asset rated by at least a specified nationally recognized statistical rating organization	98.40%	97.60%
Minimum number of nationally recognized statistical rating organizations \| item	1	1
Percentage of underlying asset unrated	1.60%	2.40%
General obligation bonds \| Illinois
Securities
Number of issuers \| item	70	77
Amortized Cost	$ 59,120	$ 64,455
Fair Value	59,182	65,557
Average Exposure Per Issuer (Fair Value)	$ 845	$ 851
General obligation bonds \| Wisconsin
Securities
Number of issuers \| item	31	36
Amortized Cost	$ 21,390	$ 30,889
Fair Value	21,479	31,079
Average Exposure Per Issuer (Fair Value)	$ 693	$ 863
General obligation bonds \| Michigan
Securities
Number of issuers \| item	38	39
Amortized Cost	$ 23,233	$ 27,923
Fair Value	23,472	28,339
Average Exposure Per Issuer (Fair Value)	$ 618	$ 727
General obligation bonds \| Pennsylvania
Securities
Number of issuers \| item	10	10
Amortized Cost	$ 10,242	$ 12,601
Fair Value	10,235	12,650
Average Exposure Per Issuer (Fair Value)	$ 1,023	$ 1,265
General obligation bonds \| Texas
Securities
Number of issuers \| item	16	18
Amortized Cost	$ 10,731	$ 12,117
Fair Value	10,702	12,165
Average Exposure Per Issuer (Fair Value)	$ 669	$ 676
General obligation bonds \| Ohio
Securities
Number of issuers \| item	10	10
Amortized Cost	$ 11,009	$ 10,723
Fair Value	11,005	10,705
Average Exposure Per Issuer (Fair Value)	$ 1,100	$ 1,071
General obligation bonds \| Iowa
Securities
Number of issuers \| item	3	3
Amortized Cost	$ 5,332	$ 5,550
Fair Value	5,345	5,571
Average Exposure Per Issuer (Fair Value)	$ 1,782	$ 1,857
General obligation bonds \| Other
Securities
Number of issuers \| item	43	48
Amortized Cost	$ 22,028	$ 26,938
Fair Value	22,192	27,375
Average Exposure Per Issuer (Fair Value)	$ 516	$ 570
Revenue bonds
Securities
Number of issuers \| item	39	37
Amortized Cost	$ 35,686	$ 34,403
Fair Value	35,621	34,421
Average Exposure Per Issuer (Fair Value)	913	930
Amount of largest exposure to a single issuer	$ 3,500	$ 3,000
Percentage of the entity's stockholders equity in excess of aggregate book or market value	10.00%	10.00%
Percentage of bonds rated by nationally recognized statistical rating organization	97.10%
Percentage of bonds unrated	2.90%
Minimum number of nationally recognized statistical rating organizations \| item	1	1
Revenue bonds \| Indiana
Securities
Number of issuers \| item	10	9
Amortized Cost	$ 11,207	$ 10,187
Fair Value	11,244	10,173
Average Exposure Per Issuer (Fair Value)	$ 1,124	$ 1,130
Revenue bonds \| Illinois
Securities
Number of issuers \| item	7	7
Amortized Cost	$ 7,321	$ 8,450
Fair Value	7,275	8,478
Average Exposure Per Issuer (Fair Value)	$ 1,039	$ 1,211
Revenue bonds \| Other
Securities
Number of issuers \| item	22	21
Amortized Cost	$ 17,158	$ 15,766
Fair Value	17,102	15,770
Average Exposure Per Issuer (Fair Value)	777	751
Obligations of states and political subdivisions
Securities
Available for sale, fair value	154,938	178,612
Held to maturity, fair value	$ 44,295	$ 49,250
Number of issuers \| item	260	278
Total Capital for rated securities (as a percent)	100.00%
Total Capital for unrated securities (as a percent)	15.00%
Obligations of states and political subdivisions \| General obligation bonds
Securities
Fair Value	$ 163,600	$ 193,400
Number of states in which investment is held \| item	29	29
Number of states in which investment is held in excess of aggregate fair value \| item	7	7
Aggregate fair value	$ 5,000	$ 5,000
Obligations of states and political subdivisions \| Revenue bonds
Securities
Fair Value	$ 35,600	$ 34,300
Number of states in which investment is held \| item	16	17
Number of states in which investment is held in excess of aggregate fair value \| item	2	2
Aggregate fair value	$ 5,000	$ 5,000

Loans held for sale (Details) - USD ($) $ in Thousands	12 Months Ended
Loans held for sale (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Loans held for sale
Loans held for sale	$ 256,319	$ 9,351
Premiums received on sales of mortagage loans, including fair value adjustments	43,119
Less direct origination costs	(32,793)
Less provisions to liability for loans sold	(175)
Mortgage servicing revenues	1,801
Mortgage revenue	$ 11,952	$ 7,165	$ 6,139

Mortgage Loan Servicing (Details) - USD ($) $ in Thousands	12 Months Ended
Mortgage Loan Servicing (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Mortgage Loan Servicing
Unpaid principal balances of loans serviced by the entity for the benefit of others	$ 1,430,000	$ 1,460,000
Capitalized servicing rights included in other assets	3,100	3,500
Fair values of servicing rights	7,800	5,900
Mortgage servicing rights capitalized and amortized
Mortgage servicing rights capitalized	1,488	1,361	$ 983
Mortgage servicing rights amortized	$ 1,921	$ 2,146	$ 2,228

Portfolio loans - Distributions of Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) item mi	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Loans
Portfolio loans	$ 3,878,900	$ 2,627,739
Less allowance for loan losses	47,795	47,487	$ 47,453	$ 47,567
Net portfolio loans	3,831,105	2,580,252
Net deferred loan origination costs	2,500	900
Amount of loan reduction due to net accretable purchase accounting adjustments	$ 12,700	2,200
Minimum target period for lending via intermediate term loans	0 years
Maximum target period for lending via intermediate term loans	7 years
Geographical area from lending offices which attempt is made to lend short and intermediate term loans (in miles) \| mi	125
Number of primary areas for lending loan \| item	5
Pulaski
Loans
Increase in net portfolio loans	$ 1,250,000
Commercial
Loans
Portfolio loans	959,888	656,576
Less allowance for loan losses	13,303	13,115	10,041	10,378
Commercial real estate
Loans
Portfolio loans	1,654,164	1,208,429
Less allowance for loan losses	20,623	18,604	20,639	22,112
Real estate construction
Loans
Portfolio loans	182,078	96,568
Less allowance for loan losses	1,870	1,763	2,795	3,708
Retail real estate
Loans
Portfolio loans	1,069,060	651,191
Less allowance for loan losses	11,648	13,714	13,662	11,149
Retail other
Loans
Portfolio loans	13,710	14,975
Less allowance for loan losses	$ 351	$ 291	$ 316	$ 220

Portfolio loans - Risk Grading (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Pass and watch
Loans
Portfolio loans receivable	$ 3,720,000	$ 2,460,000
Special mention, substandard and doubtful
Loans
Portfolio loans receivable	165,500	166,800
Pass
Loans
Portfolio loans receivable	3,532,612	2,308,716
Watch
Loans
Portfolio loans receivable	185,954	152,695
Special Mention
Loans
Portfolio loans receivable	78,554	107,933
Substandard
Loans
Portfolio loans receivable	65,478	46,108
Doubtful
Loans
Portfolio loans receivable	21,423	12,748
Commercial \| Pass and watch
Loans
Limit where loans are processed through an expedited underwriting process	350
Commercial \| Pass and watch \| Minimum
Loans
Limit where loans are processed through an expedited underwriting process	350
Commercial \| Pass and watch \| Maximum
Loans
Limit where loans are processed through an expedited underwriting process	1,000
Commercial \| Pass
Loans
Portfolio loans receivable	826,163	553,294
Commercial \| Watch
Loans
Limit above which loans are annually reviewed	1,000
Portfolio loans receivable	70,260	57,703
Commercial \| Special Mention
Loans
Limit above which loans are annually reviewed	350
Portfolio loans receivable	26,951	27,142
Commercial \| Substandard
Loans
Portfolio loans receivable	26,941	10,966
Commercial \| Doubtful
Loans
Portfolio loans receivable	11,685	7,617
Commercial real estate
Loans
Limit where loans are processed through an expedited underwriting process	1,000
Commercial real estate \| Pass
Loans
Portfolio loans receivable	1,507,513	1,068,568
Commercial real estate \| Watch
Loans
Portfolio loans receivable	69,145	58,238
Commercial real estate \| Special Mention
Loans
Portfolio loans receivable	40,775	51,418
Commercial real estate \| Substandard
Loans
Portfolio loans receivable	35,385	29,781
Commercial real estate \| Doubtful
Loans
Portfolio loans receivable	5,154	1,496
Real estate construction \| Pass
Loans
Portfolio loans receivable	134,574	65,284
Real estate construction \| Watch
Loans
Portfolio loans receivable	39,936	15,053
Real estate construction \| Special Mention
Loans
Portfolio loans receivable	8,033	14,755
Real estate construction \| Substandard
Loans
Portfolio loans receivable	994	1,157
Real estate construction \| Doubtful
Loans
Portfolio loans receivable	47	366
Retail real estate \| Pass
Loans
Portfolio loans receivable	1,050,671	607,398
Retail real estate \| Watch
Loans
Portfolio loans receivable	6,586	21,637
Retail real estate \| Special Mention
Loans
Portfolio loans receivable	2,793	13,974
Retail real estate \| Substandard
Loans
Portfolio loans receivable	2,158	4,204
Retail real estate \| Doubtful
Loans
Portfolio loans receivable	4,484	3,139
Retail other \| Pass
Loans
Portfolio loans receivable	13,691	14,172
Retail other \| Watch
Loans
Portfolio loans receivable	27	64
Retail other \| Special Mention
Loans
Portfolio loans receivable	2	644
Retail other \| Doubtful
Loans
Portfolio loans receivable	$ 53	$ 130

Portfolio loans - Past due loans (Details) $ in Thousands	12 Months Ended
Portfolio loans - Past due loans (Details) $ in Thousands	Dec. 31, 2016 USD ($) item	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Loans past due, still accruing
Loans past due, still accruing	$ 131	$ 15
Non-accrual Loans	21,423	12,748
Gross interest income that would have been recorded if impaired loans had been current	$ 900	400	$ 800
Amount of interest collected and recognized on a cash basis		1,000
Number of Primary Loan Lending Areas \| item	5
Restructured loan included in the non-performing	90 days
Restructured loans:
Total loans	$ 11,937	9,473
30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	3,092	2,932
60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing	998	350
In compliance with modified terms
Restructured loans:
Total loans	10,593	8,770
30-89 days past due
Restructured loans:
Total loans	59	60
Included in non-performing loans
Restructured loans:
Total loans	1,285	643
Commercial
Loans past due, still accruing
Loans past due, still accruing	37	15
Non-accrual Loans	11,685	7,617
Commercial \| 30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	165	598
Commercial \| 60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing	363	162
Commercial real estate
Loans past due, still accruing
Non-accrual Loans	5,154	1,496
Commercial real estate \| 30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	478	1,037
Commercial real estate \| 60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing	256	27
Real estate construction
Loans past due, still accruing
Non-accrual Loans	47	366
Retail real estate
Loans past due, still accruing
Loans past due, still accruing	94
Non-accrual Loans	4,484	3,139
Retail real estate \| 30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	2,394	1,278
Retail real estate \| 60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing	364	160
Retail other
Loans past due, still accruing
Non-accrual Loans	53	130
Retail other \| 30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	55	19
Retail other \| 60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing	$ 15	$ 1

Portfolio loans - Impaired Loans (Details) $ in Thousands	3 Months Ended		12 Months Ended
Portfolio loans - Impaired Loans (Details) $ in Thousands	Dec. 31, 2016 USD ($) contract item	Dec. 31, 2015 USD ($) contract item	Dec. 31, 2016 USD ($) contract item	Dec. 31, 2015 USD ($) item
Loans
Number of contracts \| contract	0	0
Minimum days past due for TDR loans to be classified as non-performing	90 days
Unpaid Contractual Principal Balance	$ 43,646	$ 34,386	$ 43,646	$ 34,386
Recorded Investment with No Allowance	29,365	19,551	29,365	19,551
Recorded Investment with Allowance	7,352	10,087	7,352	10,087
Total Recorded Investment	36,717	29,638	36,717	29,638
Related Allowance	3,467	3,949	3,467	3,949
Average Recorded Investment			33,132	26,346
Commercial
Loans
Unpaid Contractual Principal Balance	16,955	14,302	16,955	14,302
Recorded Investment with No Allowance	8,060	3,362	8,060	3,362
Recorded Investment with Allowance	3,835	8,238	3,835	8,238
Total Recorded Investment	11,895	11,600	11,895	11,600
Related Allowance	1,535	3,304	1,535	3,304
Average Recorded Investment			10,127	4,482
Commercial real estate
Loans
Unpaid Contractual Principal Balance	12,922	5,865	12,922	5,865
Recorded Investment with No Allowance	9,036	4,018	9,036	4,018
Recorded Investment with Allowance	3,118	1,363	3,118	1,363
Total Recorded Investment	12,154	5,381	12,154	5,381
Related Allowance	1,778	459	1,778	459
Average Recorded Investment			8,939	8,700
Real estate construction
Loans
Unpaid Contractual Principal Balance	518	1,569	518	1,569
Recorded Investment with No Allowance	483	830	483	830
Recorded Investment with Allowance	11	29	11	29
Total Recorded Investment	494	859	494	859
Related Allowance	11	29	11	29
Average Recorded Investment			793	833
Retail real estate
Loans
Unpaid Contractual Principal Balance	13,112	12,378	13,112	12,378
Recorded Investment with No Allowance	11,733	11,108	11,733	11,108
Recorded Investment with Allowance	385	452	385	452
Total Recorded Investment	12,118	11,560	12,118	11,560
Related Allowance	140	152	140	152
Average Recorded Investment			13,102	12,070
Retail other
Loans
Unpaid Contractual Principal Balance	139	272	139	272
Recorded Investment with No Allowance	53	233	53	233
Recorded Investment with Allowance	3	5	3	5
Total Recorded Investment	56	238	56	238
Related Allowance	$ 3	$ 5	3	5
Average Recorded Investment			$ 171	$ 261
Included in non-performing loans \| Commercial
Loans
Number of contracts \| item				1
Recorded Investment				$ 300
Included in non-performing loans \| Retail real estate
Loans
Number of contracts \| item			1
Recorded Investment			$ 100
Included in non-performing loans \| Retail other
Loans
Number of contracts \| contract			1
In compliance with modified terms \| Commercial
Loans
Number of modifications for short-term principal payment relief \| item				1
Recorded investment for short-term principal payment relief				$ 200
In compliance with modified terms \| Commercial real estate
Loans
Number of modifications for short-term principal payment relief \| item	1		4
Recorded investment for short-term principal payment relief	$ 3,000		$ 3,300
In compliance with modified terms \| Retail real estate
Loans
Number of modifications for short-term principal payment relief \| item		1	3	4
Recorded investment for short-term principal payment relief		$ 200	$ 400	$ 400
Number of modifications for short-term interest-rate relief \| item		1		1
Recorded investment for short-term interest-rate relief		$ 100		$ 100
In compliance with modified terms \| Retail other
Loans
Number of modifications for short-term interest-rate relief \| item		1		1
Recorded investment for short-term interest-rate relief		$ 100		$ 100

Portfolio loans - Adverse Loan Grading (Details) $ in Billions	12 Months Ended
	Dec. 31, 2016 USD ($) item
Loans
The number of components contained in the general portion of the Company's allowance for loan losses	2
Number of quarters whose historical average is used to calculate the historical loss ratio	20
Balance of acquired loans which did not require a related allowance \| $	$ 1.0
Substandard
Loans
Additional reserve (as a percent)	3.00%
Special Mention
Loans
Additional reserve (as a percent)	1.00%

Portfolio loans - Allowance for Loan Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Changes in allowance for loan losses
Beginning balance	$ 47,487	$ 47,453	$ 47,567
Provision for loan loss	5,550	1,600	2,000
Charged-off	(9,656)	(4,694)	(7,371)
Recoveries	4,414	3,128	5,257
Ending Balance	47,795	47,487	47,453
Amount allocated to:
Loans individually evaluated for impairment				$ 3,467	$ 3,949
Loans collectively evaluated for impairment				44,328	43,538
Ending Balance	47,487	47,453	47,567	47,795	47,487
Loans:
Loans individually evaluated for impairment				35,175	28,930
Loans collectively evaluated for impairment				3,842,183	2,598,101
Ending Balance				3,878,900	2,627,739
Purchased Credit Impaired Loans
Loans:
Loans collectively evaluated for impairment				1,542	708
Commercial
Changes in allowance for loan losses
Beginning balance	13,115	10,041	10,378
Provision for loan loss	5,520	4,016	1,243
Charged-off	(6,598)	(1,333)	(1,990)
Recoveries	1,266	391	410
Ending Balance	13,303	13,115	10,041
Amount allocated to:
Loans individually evaluated for impairment				1,535	3,304
Loans collectively evaluated for impairment				11,768	9,811
Ending Balance	13,115	10,041	10,378	13,303	13,115
Loans:
Loans individually evaluated for impairment				11,834	11,600
Loans collectively evaluated for impairment				947,993	644,976
Ending Balance				959,888	656,576
Commercial \| Purchased Credit Impaired Loans
Loans:
Loans collectively evaluated for impairment				61
Commercial real estate
Changes in allowance for loan losses
Beginning balance	18,604	20,639	22,112
Provision for loan loss	2,366	(2,064)	(2,679)
Charged-off	(470)	(1,462)	(1,173)
Recoveries	123	1,491	2,379
Ending Balance	20,623	18,604	20,639
Amount allocated to:
Loans individually evaluated for impairment				1,778	459
Loans collectively evaluated for impairment				18,845	18,145
Ending Balance	18,604	20,639	22,112	20,623	18,604
Loans:
Loans individually evaluated for impairment				11,147	5,005
Loans collectively evaluated for impairment				1,642,010	1,203,048
Ending Balance				1,654,164	1,208,429
Commercial real estate \| Purchased Credit Impaired Loans
Loans:
Loans collectively evaluated for impairment				1,007	376
Real estate construction
Changes in allowance for loan losses
Beginning balance	1,763	2,795	3,708
Provision for loan loss	(310)	(1,316)	(1,799)
Charged-off	(24)		(726)
Recoveries	441	284	1,612
Ending Balance	1,870	1,763	2,795
Amount allocated to:
Loans individually evaluated for impairment				11	29
Loans collectively evaluated for impairment				1,859	1,734
Ending Balance	1,763	2,795	3,708	1,870	1,763
Loans:
Loans individually evaluated for impairment				494	527
Loans collectively evaluated for impairment				181,584	95,709
Ending Balance				182,078	96,568
Real estate construction \| Purchased Credit Impaired Loans
Loans:
Loans collectively evaluated for impairment					332
Retail real estate
Changes in allowance for loan losses
Beginning balance	13,714	13,662	11,149
Provision for loan loss	(2,277)	857	4,921
Charged-off	(2,106)	(1,534)	(3,052)
Recoveries	2,317	729	644
Ending Balance	11,648	13,714	13,662
Amount allocated to:
Loans individually evaluated for impairment				140	152
Loans collectively evaluated for impairment				11,508	13,562
Ending Balance	13,714	13,662	11,149	11,648	13,714
Loans:
Loans individually evaluated for impairment				11,644	11,560
Loans collectively evaluated for impairment				1,056,942	639,631
Ending Balance				1,069,060	651,191
Retail real estate \| Purchased Credit Impaired Loans
Loans:
Loans collectively evaluated for impairment				474
Retail other
Changes in allowance for loan losses
Beginning balance	291	316	220
Provision for loan loss	251	107	314
Charged-off	(458)	(365)	(430)
Recoveries	267	233	212
Ending Balance	351	291	316
Amount allocated to:
Loans individually evaluated for impairment				3	5
Loans collectively evaluated for impairment				348	286
Ending Balance	$ 291	$ 316	$ 220	351	291
Loans:
Loans individually evaluated for impairment				56	238
Loans collectively evaluated for impairment				13,654	14,737
Ending Balance				$ 13,710	$ 14,975

OREO (Details) - USD ($) $ in Thousands	12 Months Ended
OREO (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
OREO:
Other Real Estate, Beginning Balance	$ 783	$ 216
Additions, transfers from loans	2,775	1,251	$ 660
Proceeds from sales of OREO	(4,498)	(1,090)	(2,739)
Gain on sales of OREO	999	122
Valuation allowance for OREO	(29)
Other Real Estate, Ending Balance	2,518	783	$ 216
Commercial real estate \| Other assets
Foreclosed Real Estate
Other real estate owned (OREO)	2,000	500
Residential real estate
Foreclosed Real Estate
Residential real estate in the process of foreclosure	1,000
Residential real estate \| Other assets
Foreclosed Real Estate
Other real estate owned (OREO)	500	300
Herget Financial Corp and Herget Bank
OREO:
Additions, fair value from acquisition		$ 284
Pulaski
OREO:
Additions, fair value from acquisition	$ 2,488

Premises and Equipment, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Premises and Equipment
Premises and equipment, gross	$ 137,511	$ 120,259
Less accumulated depreciation	59,650	57,171
Total premises and equipment, net	77,861	63,088
Depreciation expense	7,295	5,697	$ 5,572
Land and improvements
Premises and Equipment
Premises and equipment, gross	26,484	21,950
Buildings and improvements
Premises and Equipment
Premises and equipment, gross	73,484	64,270
Furniture and equipment
Premises and Equipment
Premises and equipment, gross	$ 37,543	$ 34,039

Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) segment	Apr. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)
Goodwill and other intangibles assets
Number of operating segments \| segment	3
Total goodwill	$ 102,814		$ 25,510
Pulaski
Goodwill and other intangibles assets
Total goodwill		$ 77,304
Other intangible assets		$ 15,468
Banking
Goodwill and other intangibles assets
Total goodwill	82,128		4,824
Banking \| Pulaski
Goodwill and other intangibles assets
Total goodwill	77,300
Other intangible assets	15,500
Banking \| Herget Financial Corp and Herget Bank
Goodwill and other intangibles assets
Total goodwill			4,800
Other intangible assets			3,000
Remittance Processing
Goodwill and other intangibles assets
Total goodwill	8,992		8,992
Wealth Management
Goodwill and other intangibles assets
Total goodwill	$ 11,694		11,694
Wealth Management \| Herget Financial Corp and Herget Bank
Goodwill and other intangibles assets
Other intangible assets			$ 900

Goodwill and Other Intangible Assets - Amortized Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Amortized intangible assets:
Balance at the beginning of period	$ 7,432
Amortization	4,438	$ 3,192	$ 2,884
Balance at the end of period	18,462	7,432
Core deposit intangible assets
Amortized intangible assets:
Balance at the beginning of period	5,231
Amortization	3,361	2,060
Balance at the end of period	$ 17,338	5,231
Core deposit intangible assets \| Maximum
Goodwill and other intangibles assets
Intangible asset estimated period	14 years
Customer relationship intangible assets
Amortized intangible assets:
Balance at the beginning of period	$ 2,201
Amortization	1,077	1,132
Balance at the end of period	$ 1,124	$ 2,201

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Goodwill and other intangibles assets
Net carrying amount	$ 18,462	$ 7,432
Estimated amortization expense:
Net carrying amount	18,462	7,432
Core deposit intangible assets
Goodwill and other intangibles assets
Gross carrying amount	38,467
Accumulated amortization	21,129
Net carrying amount	17,338	5,231
Estimated amortization expense:
2017	3,190
2018	2,143
2019	1,986
2020	1,826
2021	1,666
Thereafter	6,527
Net carrying amount	17,338	5,231
Customer relationship intangible assets
Goodwill and other intangibles assets
Gross carrying amount	12,220
Accumulated amortization	11,096
Net carrying amount	1,124	2,201
Estimated amortization expense:
2017	663
2018	115
2019	98
2020	82
2021	66
Thereafter	100
Net carrying amount	$ 1,124	$ 2,201

Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deposits,
Demand deposits, noninterest-bearing	$ 1,134,133	$ 881,685
Interest-bearing transaction deposits, saving deposits and money market deposits	2,453,965	1,949,370
Time deposits	786,200	458,051
Total deposits	4,374,298	3,289,106
Reciprocal brokered transaction deposits included in interest-bearing transaction deposits	36,900	7,800
Reciprocal brokered transaction deposits included in savings deposits	22,200	0
Time deposits minimum denomination of $100,000 or more	350,700	128,100
Time deposits minimum denomination of $250,000 or more	70,700	23,200
National deposits included in the balance of time deposits	100	400
Reciprocal brokered time deposits	93,400	400
Brokered deposits included in the balance of time deposits	5,000	0
Deposits
2017	539,341
2018	151,415
2019	59,313
2020	16,459
2021	19,577
Thereafter	95
Total	$ 786,200	$ 458,051

Borrowings - Maturity period (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Borrowings
Federal Funds Purchased	$ 0	$ 0
Maximum maturity period of securities sold under agreements to repurchase	1 year
Maximum maturity period of short-term debt	1 year

Borrowings - Short-term borrowings (Details) - Line of Credit - USD ($) $ in Millions	Nov. 18, 2016	Dec. 31, 2016	Dec. 31, 2015
Short-term borrowings
Maximum borrowing capacity	$ 20.0
Outstanding amounts		$ 0.0	$ 0.0
One-month LIBOR rate
Short-term borrowings
Annual interest rate (as a percentage)	2.50%

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Borrowings - Securities sold under agreements to repurchase and short-term borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Securities sold under agreements to repurchase
Balance at end of period	$ 189,157	$ 172,972
Weighted average interest rate at end of period (as a percent)	0.30%	0.18%
Maximum outstanding at any month end in year-to-date period	$ 216,293	$ 202,376
Average daily balance for the year-to-date period	$ 181,474	$ 179,662
Weighted average interest rate during period (as a percent)	0.22%	0.10%
Short-term borrowings
Balance at end of period	$ 75,000
FHLB advances
Short-term borrowings
Balance at end of period	$ 75,000
Weighted average interest rate at end of period	0.63%
Maximum outstanding at any month end in year-to-date period	$ 236,700
Average daily balance for the year-to-date period	$ 96,698
Weighted average interest rate during period	0.53%
Revolving loan
Short-term borrowings
Maximum outstanding at any month end in year-to-date period	$ 10,000
Average daily balance for the year-to-date period	$ 2,596
Weighted average interest rate during period	4.78%

Borrowings - Long-term debt (Details) - FHLB advances - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Long-term debt
Long-term debt	$ 80,000	$ 80,000
Weighted average rate (as a percent)	0.41%	0.15%
Minimum
Long-term debt
Notes payable original maturity term	19 months	19 months
Fixed coupon rate (as a percent)	0.35%	0.10%
Maximum
Long-term debt
Notes payable original maturity term	10 years	10 years
Fixed coupon rate (as a percent)	0.54%	0.28%

Junior Subordinated Debt Owed to Unconsolidated Trusts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Junior subordinated debt owed to unconsolidated trusts
Junior subordinated debt owed to unconsolidated trusts	$ 70,868	$ 55,000
Trust Preferred Securities
Junior subordinated debt owed to unconsolidated trusts
Percentage limit on inclusion of qualifying trust preferred securities in Tier I Capital	25.00%
Trust preferred securities qualified as Tier I capital (as a percent)	100.00%
Parent
Junior subordinated debt owed to unconsolidated trusts
Junior subordinated debt owed to unconsolidated trusts	$ 70,868	$ 55,000
Junior Subordinated Notes \| Trust Preferred Securities
Junior subordinated debt owed to unconsolidated trusts
Maximum period to defer payment of interest on the notes and, therefore, distributions on the trust preferred securities	5 years

Capital - Redemption of Preferred Stock (Details) - USD ($)	Dec. 18, 2015	Aug. 25, 2011	Dec. 31, 2016
Series C Preferred stock
Capital
Shares issued		72,664
Preferred stock, liquidation value (in dollars per share)	$ 1,000	$ 1,000
Aggregate proceeds from issuance of shares		$ 72,664,000
Preferred stock redeemed during period (in shares)	72,664
CPP Warrant
Capital
Number of shares of common stock that can be purchased by exercise of warrants		382,555
Percentage reduction in the number of shares of common stock that can be purchased by exercise of warrants		50.00%
Number of shares of common stock that can be purchased by exercise of warrants, after reduction		191,278
Warrants outstanding (in shares)			191,278
Exercise price (in dollars per share)			$ 39.21

Capital - Regulatory Capital (Details) - USD ($) $ in Thousands	Oct. 21, 2016	Jan. 01, 2019	Dec. 31, 2016	Dec. 31, 2015	Jul. 31, 2013
Total Capital (to Risk Weighted Assets), Amount
Actual			$ 605,988	$ 431,689
Minimum Capital Requirement with Capital Buffer			372,342	237,404
Minimum To Be Well Capitalized			$ 431,701	$ 296,754
Total Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)			14.04%	14.55%
Minimum Capital Requirement with Capital Buffer (as a percent)			8.625%	8.00%
Minimum To Be Well Capitalized (as a percent)			10.00%	10.00%
Tier 1 Capital (to Risk Weighted Assets), Amount
Actual			$ 557,862	$ 394,240
Minimum Capital Requirement with Capital Buffer			286,002	178,053
Minimum To Be Well Capitalized			$ 345,361	$ 237,404
Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)			12.92%	13.29%
Minimum Capital Requirement with Capital Buffer (as a percent)			6.625%	6.00%
Minimum To Be Well Capitalized (as a percent)			8.00%	8.00%
Common Equity Tier 1 Capital (to Risk Weighted Assets), Amount
Actual			$ 484,246	$ 341,828
Minimum Capital Requirement with Capital Buffer			221,247	133,540
Minimum To Be Well Capitalized			$ 280,606	$ 192,890
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)			11.22%	11.52%
Minimum Capital Requirement with Capital Buffer (as a percent)			5.125%	4.50%
Minimum To Be Well Capitalized (as a percent)			6.50%	6.50%
Tier 1 Capital (to Average Assets), Amount
Actual			$ 557,862	$ 394,240
Minimum Capital Requirement with Capital Buffer			$ 213,578	$ 155,653
Tier 1 Capital (to Average Assets), Ratio
Actual (as a percent)			10.45%	10.13%
Minimum Capital Requirement with Capital Buffer (as a percent)			4.00%	4.00%
Dodd-Frank Act ("Basel III Rules")
Regulatory Capital
Maximum consolidated assets of bank holding companies					$ 1,000,000
Maximum consolidated assets size of bank holding companies potentially unaffected by certain Tier 1 capital restrictions			$ 15,000,000
Common Equity Tier 1 capital conservation buffer of risk weighted assets			2.50%
Tier 1 Capital (to Average Assets), Ratio
Increase in minimum capital requirement ratios			0.625%
Forecast
Total Capital (to Risk Weighted Assets), Ratio
Minimum Capital Requirement with Capital Buffer (as a percent)		10.50%
Tier 1 Capital (to Risk Weighted Assets), Ratio
Minimum Capital Requirement with Capital Buffer (as a percent)		8.50%
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio
Minimum Capital Requirement with Capital Buffer (as a percent)		7.00%
Busey Bank
Regulatory Capital
Distribution received through chartered amendment	$ 30,000
Total Capital (to Risk Weighted Assets), Amount
Actual			$ 550,813	$ 396,428
Minimum Capital Requirement with Capital Buffer			369,363	235,741
Minimum To Be Well Capitalized			$ 428,247	$ 294,676
Total Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)			12.86%	13.45%
Minimum Capital Requirement with Capital Buffer (as a percent)			8.625%	8.00%
Minimum To Be Well Capitalized (as a percent)			10.00%	10.00%
Tier 1 Capital (to Risk Weighted Assets), Amount
Actual			$ 502,687	$ 359,228
Minimum Capital Requirement with Capital Buffer			283,714	176,806
Minimum To Be Well Capitalized			$ 342,598	$ 235,741
Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)			11.74%	12.19%
Minimum Capital Requirement with Capital Buffer (as a percent)			6.625%	6.00%
Minimum To Be Well Capitalized (as a percent)			8.00%	8.00%
Common Equity Tier 1 Capital (to Risk Weighted Assets), Amount
Actual			$ 502,687	$ 359,228
Minimum Capital Requirement with Capital Buffer			219,477	132,604
Minimum To Be Well Capitalized			$ 278,361	$ 191,540
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)			11.74%	12.19%
Minimum Capital Requirement with Capital Buffer (as a percent)			5.125%	4.50%
Minimum To Be Well Capitalized (as a percent)			6.50%	6.50%
Tier 1 Capital (to Average Assets), Amount
Actual			$ 502,687	$ 359,228
Minimum Capital Requirement with Capital Buffer			212,766	154,145
Minimum To Be Well Capitalized			$ 265,957	$ 192,681
Tier 1 Capital (to Average Assets), Ratio
Actual (as a percent)			9.45%	9.32%
Minimum Capital Requirement with Capital Buffer (as a percent)			4.00%	4.00%
Minimum To Be Well Capitalized (as a percent)			5.00%	5.00%

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating loss carryforwards
Net operating loss carryforwards	$ 960				$ 4,314				$ 960	$ 4,314
Components of income taxes
Current									16,271	17,839	$ 4,830
Deferred									10,452	2,857	12,704
Total income tax expense	6,270	$ 8,089	$ 6,698	$ 5,666	5,868	$ 5,408	$ 5,593	$ 3,827	$ 26,723	$ 20,696	$ 17,534
Reconciliation of federal and state income taxes at statutory rates to the income taxes included in the statements of operations
Income tax at statutory rate (as a percent)									35.00%	35.00%	35.00%
Tax-exempt interest, net (as a percent)									(2.40%)	(2.30%)	(2.60%)
State income taxes, net (as a percent)									4.30%	4.20%	5.70%
Income on bank owned life insurance (as a percent)									(1.00%)	(1.20%)	(1.00%)
Other, net (as a percent)									(0.90%)	(1.00%)	(2.20%)
Total (as a percent)									35.00%	34.70%	34.90%
Deferred tax assets:
Allowance for loan losses	19,988				18,939				$ 19,988	$ 18,939
Stock-based compensation	2,396				1,461				2,396	1,461
Deferred compensation	2,748				2,189				2,748	2,189
Affordable housing partnerships and other investments	929				2,454				929	2,454
Purchase accounting adjustments	7,186				1,308				7,186	1,308
Accrued vacation	729				579				729	579
Employee costs	2,044				703				2,044	703
Other	1,097				699				1,097	699
Total	37,117				28,332				37,117	28,332
Valuation allowance required for other deferred tax assets	0				0				0	0
Investment securities:
Unrealized gains on securities available for sale	(24)				(1,563)				(24)	(1,563)
Other, net	(639)				(641)				(639)	(641)
Basis in premises and equipment	(1,468)				(1,887)				(1,468)	(1,887)
Affordable housing partnerships and other investments	2,110				1,560				2,110	1,560
Purchase accounting adjustments	(2,242)				(645)				(2,242)	(645)
Mortgage servicing assets	(1,228)				(1,386)				(1,228)	(1,386)
Basis in core deposit and customer intangible assets	(7,377)				(2,967)				(7,377)	(2,967)
Deferred loan origination costs	(2,765)				(359)				(2,765)	(359)
Deferred tax liabilities	(17,853)				(11,008)				(17,853)	(11,008)
Net deferred tax assets	20,224				21,638				20,224	21,638
Florida
Operating loss carryforwards
Net operating loss carryforwards	300				600				300	600
Valuation allowance	300								300
Illinois
Operating loss carryforwards
Net operating loss carryforwards	960				4,300				960	4,300
Pre-tax operating loss carryforwards	13,000				59,000				13,000	59,000
Pulaski
Deferred tax assets:
capital loss carryforwards	400								400
Capital loss carryforwards valuation allowance	$ 400				$ 0				$ 400	$ 0

Employee Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employees' Stock Ownership Plan
Number of allocated shares acquired prior to December 31, 1992	136,840	144,641
Associated fair values of allocated shares acquired prior to December 31, 1992	$ 4,200	$ 3,000
Shares
Allocated shares	48,222	50,989
Fair Value
Allocated shares, Fair Value	$ 1,500	$ 1,100
Profit Sharing Plan
Vesting period	5 years
Expenses related to employee benefit plans
Total employee benefits	$ 4,289	2,584	$ 2,636
Deferred compensation plans for deferral of performance bonuses
Deferred compensation expense	300	300	300
Deferred compensation liability	6,800	$ 5,500	$ 5,100
Pulaski
Deferred compensation plans for deferral of performance bonuses
Deferred compensation liability	$ 1,100

Share-based Compensation (Details) - USD ($)	12 Months Ended
Share-based Compensation (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Feb. 03, 2015
Share-based Compensation
Maximum number of shares that may be delivered to participants	1,333,333
Period from effective date after which no awards may be granted	10 years
Common stock shares held in treasury	633,232	732,887
Shares authorized for repurchase under stock repurchase plan			666,667
Purchase of treasury stock		333,333
Number of shares that may yet be purchased	333,334
RSU
Share-based Compensation
Number of shares of common stock per award	1
Minimum \| RSU
Share-based Compensation
Requisite service periods	1 year
Minimum \| DSUs
Share-based Compensation
Vesting period	12 months
Maximum \| Options and SARs
Share-based Compensation
Shares available for grant during any calendar year	133,333
Maximum \| Stock awards
Share-based Compensation
Shares available for grant during any calendar year	66,667
Maximum \| Cash incentive awards and cash-settled stock awards
Share-based Compensation
Amount of award payable with respect to any calendar year	$ 1,000,000
Maximum \| RSU
Share-based Compensation
Requisite service periods	5 years
Directors \| DSUs
Share-based Compensation
Number of shares of common stock per award	1
Settlement period	30 days

Share-based Compensation - Award Status (Details) - Stock option awards - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Shares
Outstanding at beginning of year (in shares)	96,568	170,026	232,109
Converted options from Pulaski (in shares)	309,700
Exercised (in shares)	(145,774)
Forfeited (in shares)	(394)	(517)	(8,267)
Expired (in shares)	(50,718)	(72,941)	(53,816)
Outstanding at end of period (in shares)	209,382	96,568	170,026
Exercisable at end of period (in shares)	209,382	96,568	170,026
Weighted-Average Exercise Price
Outstanding at beginning of year (in dollars per share)	$ 43.64	$ 48.99	$ 51.66
Converted options from Pulaski (in dollars per share)	13.29
Exercised (in dollars per share)	15.09
Forfeited (in dollars per share)	13.87	58.23	57.75
Expired (in dollars per share)	58.23	55.99	59.22
Outstanding at end of period (in dollars per share)	15.13	43.64	48.99
Exercisable at end of period (in dollars per share)	$ 15.13	$ 43.64	$ 48.99

Share-based Compensation - Options Outstanding (Details) - Stock option awards	12 Months Ended
	Dec. 31, 2016 USD ($) $ / shares shares
Options Outstanding
Number (in shares) \| shares	209,382
Weighted-Average Exercise Price (in dollars per share)	$ 15.13
Weighted-Average Remaining Contractual Life	1 year 9 months 4 days
Intrinsic Value (in dollars) \| $	$ 3,572
Options Exercisable
Number (in shares) \| shares	209,382
Intrinsic Value (in dollars) \| $	$ 3,572,000
Unrecognized stock option expense \| $	$ 0
$ 6.00-15.00
Range of Exercise Prices
Low end of the range (in dollars per share)	$ 6.00
High end of the range (in dollars per share)	$ 15.00
Options Outstanding
Number (in shares) \| shares	177,083
Weighted-Average Exercise Price (in dollars per share)	$ 11.76
Weighted-Average Remaining Contractual Life	1 year 9 months 7 days
Options Exercisable
Number (in shares) \| shares	177,083
$ 15.01-20.00
Range of Exercise Prices
Low end of the range (in dollars per share)	$ 15.01
High end of the range (in dollars per share)	$ 20.00
Options Outstanding
Number (in shares) \| shares	3,949
Weighted-Average Exercise Price (in dollars per share)	$ 15.20
Weighted-Average Remaining Contractual Life	1 year 1 month 10 days
Options Exercisable
Number (in shares) \| shares	3,949
$ 20.01-22.60
Range of Exercise Prices
Low end of the range (in dollars per share)	$ 20.01
High end of the range (in dollars per share)	$ 22.60
Options Outstanding
Number (in shares) \| shares	17,500
Weighted-Average Exercise Price (in dollars per share)	$ 22.59
Weighted-Average Remaining Contractual Life	2 years 6 months
Options Exercisable
Number (in shares) \| shares	17,500
$ 22.61-58.05
Range of Exercise Prices
Low end of the range (in dollars per share)	$ 22.61
High end of the range (in dollars per share)	$ 58.05
Options Outstanding
Number (in shares) \| shares	10,850
Weighted-Average Exercise Price (in dollars per share)	$ 58.05
Weighted-Average Remaining Contractual Life	6 months 15 days
Options Exercisable
Number (in shares) \| shares	10,850

Share-based Compensation - Restricted and Deferred Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions			12 Months Ended
	Jul. 25, 2016	Jul. 11, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Weighted-Average Grant Date Fair Value
Issuance of treasury shares in conjunction with units vested			43,396	59,983	6,206
Additional disclosures
Compensation expense recognized			$ 1.8	$ 1.4	$ 1.2
Amount of compensation cost to be recognized			$ 5.8
Period over which cost will be recognized			3 years 6 months
RSU
Shares
Non-vested at beginning of year (in shares)			424,930	394,624	306,643
Reclass to DSUs					(1,653)
Granted (in shares)			126,669	108,945	101,426
Dividend equivalents earned (in shares)			14,935	13,089	11,722
Vested (in shares)			(54,913)	(73,777)	(8,811)
Forfeited (in shares)			(12,015)	(17,951)	(14,703)
Non-vested at end of year (in shares)			552,610	424,930	394,624
Weighted-Average Grant Date Fair Value
Non-vested at beginning of year (in dollars per share)			$ 17.10	$ 15.67	$ 14.91
Reclass to DSUs					15.12
Granted (in dollars per share)			22.44	20.07	17.52
Dividend equivalents earned (in dollars per share)			21.09	19.31	16.86
Vested (in dollars per share)			14.61	14.48	14.46
Forfeited (in dollars per share)			15.19	16.21	14.19
Non-vested at end of year (in dollars per share)			$ 18.45	$ 17.10	$ 15.67
Issuance of treasury shares in conjunction with units vested			43,396	59,983	6,206
Additional disclosures
Compensation expense recognized			$ 0.0
RSU \| Members of management
Shares
Granted (in shares)		126,669
Additional disclosures
Stock price (in dollars per share)		$ 22.44
Amount of compensation cost to be recognized		$ 2.8
Period over which cost will be recognized		5 years
Vesting rights of shares granted (as a percent)		100.00%
DSUs \| Directors
Shares
Non-vested at beginning of year (in shares)			24,763	18,581	9,685
Reclass from RSUs					1,653
Granted (in shares)	1,250	15,830	22,428	17,899	16,566
Dividend equivalents earned (in shares)			2,576	1,872	1,347
Vested (in shares)			(14,729)	(13,589)	(10,670)
Non-vested at end of year (in shares)			35,038	24,763	18,581
Outstanding at end of year (in shares)			93,459	68,456	48,686
Weighted-Average Grant Date Fair Value
Non-vested at beginning of year (in dollars per share)			$ 19.25	$ 17.31	$ 15.15
Reclass from RSUs					15.12
Granted (in dollars per share)	$ 22.39		22.44	20.07	17.52
Dividend equivalents earned (in dollars per share)			21.20	19.40	16.89
Vested (in dollars per share)			20.18	17.69	15.30
Non-vested at end of year (in dollars per share)			21.04	19.25	17.31
Outstanding at end of year (in dollars per share)			$ 18.54	$ 17.16	$ 16.02
Additional disclosures
Stock price (in dollars per share)		$ 22.44
Amount of compensation cost to be recognized		$ 0.4
Period over which cost will be recognized		1 year
DSUs \| Chairman
Shares
Granted (in shares)		5,348
Weighted-Average Grant Date Fair Value
Granted (in dollars per share)		$ 22.44
Additional disclosures
Amount of compensation cost to be recognized		$ 0.1
Period over which cost will be recognized		5 years
Vesting rights of shares granted (as a percent)		100.00%
Pulaski \| RSU
Shares
Converted units from Pulaski			53,004
Weighted-Average Grant Date Fair Value
Converted units from Pulaski			$ 14.25

Transactions with Related Parties (Details) $ in Thousands	12 Months Ended
Transactions with Related Parties (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Analysis of the changes in loans to related parties
Balance at beginning of year	$ 57,125
Addition due to change in relationship	1,197
New loans/advances	16,206
Repayments	(26,214)
Other	231
Balance at end of year	48,545
Directors and executive officers
Analysis of the changes in loans to related parties
Total unused commitments	$ 24,500

Outstanding Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Credit Commitments and Contingencies
Liabilities for potential obligations under guarantees	$ 0	$ 0
Lease Commitments
Rent expense under operating leases	2,700	1,500	$ 1,500
Projected minimum rental payments under the terms of leases
2017	2,711
2018	2,218
2019	1,723
2020	1,313
2021	532
Thereafter	1,566
Total	10,063
Commitments to extend credit
Credit Commitments and Contingencies
Financial instruments whose contract amounts represent credit risk	875,077	618,551
Standby letters of credit
Credit Commitments and Contingencies
Financial instruments whose contract amounts represent credit risk	$ 20,145	$ 15,325
Maximum
Credit Commitments and Contingencies
Term for guarantee	1 year

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Net gains	$ 487
Non-interest income
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Gross gains	25,270
Non-interest expense
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Gross losses	(24,783)
Foreign
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Foreign loan balance, gross	700
Other assets
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Derivative assets	6,403
Other liabilities
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Derivative liabilities	3,098
Interest Rate Lock Commitments
Derivative Financial Instruments
Aggregate notional amount	149,900
Forward Sales Commitments
Derivative Financial Instruments
Aggregate notional amount	400,000
Foreign currency forward contracts
Derivative Financial Instruments
Aggregate notional amount	742	$ 3,466
Foreign currency forward contracts \| Other assets
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Fair value recorded in other assets		4
Foreign currency forward contracts \| Other liabilities
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Fair value recorded in other liabilities	$ 7	$ 2

Fair Value Measurements - General Disclosures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Financial assets and financial liabilities measured at fair value
Transfers between levels of fair value hierarchy	$ 0
Securities available for sale	759,811	$ 834,838
Loans held for sale	256,319	9,351
U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	74,944	65,191
Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Securities available for sale	79,127	132,605
Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Securities available for sale	154,938	178,612
Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	302,249	307,549
Corporate debt securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	143,343	148,805
Mutual funds and other equity securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	5,210	2,076
Recurring basis
Financial assets and financial liabilities measured at fair value
Loans held for sale	256,319
Recurring basis \| Derivative financial assets
Financial assets and financial liabilities measured at fair value
Derivative assets	6,403
Recurring basis \| Foreign currency forward contracts
Financial assets and financial liabilities measured at fair value
Derivative assets		4
Derivative liabilities	7	2
Recurring basis \| Derivative financial liabilities
Financial assets and financial liabilities measured at fair value
Derivative liabilities	3,098
Recurring basis \| U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	74,944	65,191
Recurring basis \| Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Securities available for sale	79,127	132,605
Recurring basis \| Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Securities available for sale	154,938	178,612
Recurring basis \| Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	302,249	307,549
Recurring basis \| Corporate debt securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	143,343	148,805
Recurring basis \| Mutual funds and other equity securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	5,210	2,076
Recurring basis \| Level 1 \| Mutual funds and other equity securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	5,210	2,076
Recurring basis \| Level 2
Financial assets and financial liabilities measured at fair value
Loans held for sale	256,319
Recurring basis \| Level 2 \| Derivative financial assets
Financial assets and financial liabilities measured at fair value
Derivative assets	6,403
Recurring basis \| Level 2 \| Foreign currency forward contracts
Financial assets and financial liabilities measured at fair value
Derivative assets		4
Derivative liabilities	7	2
Recurring basis \| Level 2 \| Derivative financial liabilities
Financial assets and financial liabilities measured at fair value
Derivative liabilities	3,098
Recurring basis \| Level 2 \| U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	74,944	65,191
Recurring basis \| Level 2 \| Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Securities available for sale	79,127	132,605
Recurring basis \| Level 2 \| Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Securities available for sale	154,938	178,612
Recurring basis \| Level 2 \| Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	302,249	307,549
Recurring basis \| Level 2 \| Corporate debt securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	$ 143,343	$ 148,805

Fair Value Measurements - Additional Quantitative Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Quantitative Information about Level 3 Fair Value Measurements
Impaired loans	$ 36,717	$ 29,638
Non-recurring basis
Quantitative Information about Level 3 Fair Value Measurements
Impaired loans	3,885	6,138
Non-recurring basis \| Level 3
Quantitative Information about Level 3 Fair Value Measurements
Impaired loans	3,885	6,138
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Impaired loans
Quantitative Information about Level 3 Fair Value Measurements
Impaired loans	$ 3,885	$ 6,138
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Impaired loans \| Minimum
Quantitative Information about Level 3 Fair Value Measurements
Appraisal adjustments (as a percent)	(19.20%)	(4.30%)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Impaired loans \| Maximum
Quantitative Information about Level 3 Fair Value Measurements
Appraisal adjustments (as a percent)	(100.00%)	(100.00%)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Impaired loans \| Weighted Average
Quantitative Information about Level 3 Fair Value Measurements
Appraisal adjustments (as a percent)	(38.40%)	(30.90%)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO \| Minimum
Quantitative Information about Level 3 Fair Value Measurements
Appraisal adjustments (as a percent)	(100.00%)	(100.00%)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO \| Weighted Average
Quantitative Information about Level 3 Fair Value Measurements
Appraisal adjustments (as a percent)	(100.00%)	(100.00%)

Fair Value Measurements - By Level of Valuation Inputs (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financial assets:
Cash and due from banks	$ 166,097	$ 319,280
Federal funds sold	609
Securities held to maturity	47,683	50,271
Net portfolio loans	3,831,105	2,580,252
Mortgage servicing rights	7,800	5,900
Financial liabilities:
Short-term borrowings	75,000
Junior subordinated debt owed to unconsolidated trusts	70,868	55,000
Level 1 \| Carrying Amount
Financial assets:
Cash and due from banks	166,097	319,280
Federal funds sold	609
Level 1 \| Fair Value
Financial assets:
Cash and due from banks	166,097	319,280
Federal funds sold	609
Level 2 \| Carrying Amount
Financial assets:
Securities held to maturity	47,820	49,832
Loans held for sale		9,351
Accrued interest receivable	15,562	12,122
Financial liabilities:
Deposits	4,374,298	3,289,106
Securities sold under agreements to repurchase	189,157	172,972
Short-term borrowings	75,000
Long-term debt	80,000	80,000
Junior subordinated debt owed to unconsolidated trusts	70,868	55,000
Accrued interest payable	987	438
Level 2 \| Fair Value
Financial assets:
Securities held to maturity	47,683	50,271
Loans held for sale		9,492
Accrued interest receivable	15,562	12,122
Financial liabilities:
Deposits	4,368,891	3,286,677
Securities sold under agreements to repurchase	189,157	172,972
Short-term borrowings	75,000
Long-term debt	80,000	80,000
Junior subordinated debt owed to unconsolidated trusts	70,868	55,000
Accrued interest payable	987	438
Level 3 \| Carrying Amount
Financial assets:
Net portfolio loans	3,831,105	2,580,252
Mortgage servicing rights	3,074	3,475
Level 3 \| Fair Value
Financial assets:
Net portfolio loans	3,841,760	2,583,458
Mortgage servicing rights	$ 7,803	$ 5,896

Liability for Loans Sold (Details) $ in Millions	12 Months Ended
Liability for Loans Sold (Details) $ in Millions	Dec. 31, 2016 USD ($)
Period after origination for an event of default that may require loan repurchase or reimbursement	90 days
Period after breach of contractual representations or warranties made at the time of sale that are not remedied after the Company receives notice that may require possible loan repurchase or loan reimbursement	90 days
The period after origination for profit refund if the borrower pays off loan	120 days
Other liabilities
Liability for loans sold	$ 2.2

Operating Segments and Related Information (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2016 USD ($) segment	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Operating Segments and Related Information
Number of operating segments \| segment									3
Goodwill	$ 102,814				$ 25,510				$ 102,814	$ 25,510
Total Assets	5,425,170				3,998,976				5,425,170	3,998,976
Net interest income:	44,635	$ 44,131	$ 37,952	$ 27,942	29,599	$ 28,195	$ 27,351	$ 26,670	154,660	111,815	$ 101,576
Non-interest income:	19,001	20,745	18,577	16,846	16,315	15,889	16,623	15,965	75,169	64,792	58,941
Non-interest expense:	44,411	39,415	36,348	27,688	28,363	27,950	28,445	30,547	147,862	115,305	108,209
Income before income taxes:	17,725	23,511	19,081	16,100	16,551	16,034	15,529	11,588	76,417	59,702	50,308
Net income:	11,455	$ 15,422	$ 12,383	$ 10,434	10,683	$ 10,626	$ 9,936	$ 7,761	49,694	39,006	32,774
Banking
Operating Segments and Related Information
Goodwill	82,128				4,824				82,128	4,824
Remittance Processing
Operating Segments and Related Information
Goodwill	8,992				8,992				8,992	8,992
Wealth Management
Operating Segments and Related Information
Goodwill	11,694				11,694				11,694	11,694
Operating segments
Operating Segments and Related Information
Goodwill	102,814				25,510				102,814	25,510
Total Assets	5,425,170				3,998,976				5,425,170	3,998,976
Operating segments \| Banking
Operating Segments and Related Information
Goodwill	82,128				4,824				82,128	4,824
Total Assets	5,369,669				3,944,031				5,369,669	3,944,031
Net interest income:									156,374	112,712	102,410
Non-interest income:									41,816	30,933	29,014
Non-interest expense:									117,293	86,672	82,167
Income before income taxes:									75,347	55,374	47,257
Net income:									48,691	36,026	30,744
Operating segments \| Remittance Processing
Operating Segments and Related Information
Goodwill	8,992				8,992				8,992	8,992
Total Assets	32,379				30,231				32,379	30,231
Net interest income:									55	53	52
Non-interest income:									11,554	11,332	9,561
Non-interest expense:									8,668	8,526	7,519
Income before income taxes:									2,941	2,859	2,094
Net income:									1,758	1,709	1,227
Operating segments \| Wealth Management
Operating Segments and Related Information
Goodwill	11,694				11,694				11,694	11,694
Total Assets	28,351				27,651				28,351	27,651
Net interest income:									266	272	287
Non-interest income:									23,563	23,651	22,439
Non-interest expense:									16,484	16,003	14,741
Income before income taxes:									7,345	7,921	7,986
Net income:									4,388	4,721	4,701
Other
Operating Segments and Related Information
Total Assets	$ (5,229)				$ (2,937)				(5,229)	(2,937)
Net interest income:									(2,035)	(1,222)	(1,173)
Non-interest income:									(1,764)	(1,124)	(2,073)
Non-interest expense:									5,417	4,104	3,782
Income before income taxes:									(9,216)	(6,452)	(7,029)
Net income:									$ (5,143)	$ (3,450)	$ (3,898)

Parent Company Only Financial Information - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
ASSETS
Cash and due from subsidiary banks	$ 166,097	$ 319,280
Investments in subsidiaries:
Premises and equipment, net	77,861	63,088
Other assets	64,328	44,652
Total assets	5,425,170	3,998,976
Liabilities:
Junior subordinated debentures owed to unconsolidated trusts	70,868	55,000
Other liabilities	41,533	28,712
Total liabilities	4,830,856	3,625,790
Total stockholders' equity	594,314	373,186	$ 433,639	$ 415,364
Total liabilities and stockholders' equity	5,425,170	3,998,976
Parent
ASSETS
Cash and due from subsidiary banks	27,507	13,787
Investments in subsidiaries:
Bank	602,197	381,992
Non-bank	25,017	24,867
Premises and equipment, net	301	412
Other assets	17,173	13,919
Total assets	672,195	434,977
Liabilities:
Junior subordinated debentures owed to unconsolidated trusts	70,868	55,000
Other liabilities	7,013	6,791
Total liabilities	77,881	61,791
Total stockholders' equity	594,314	373,186
Total liabilities and stockholders' equity	$ 672,195	$ 434,977

Parent Company Only Financial Information - Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Dividends from subsidiaries:
Other income	$ 19,001	$ 20,745	$ 18,577	$ 16,846	$ 16,315	$ 15,889	$ 16,623	$ 15,965	$ 75,169	$ 64,792	$ 58,941
Expense:
Salaries, wages and employee benefits									78,397	63,516	61,341
Interest Expense	3,004	3,057	2,586	1,582	1,520	1,535	1,559	1,593	10,229	6,207	6,499
Income tax benefit	(6,270)	(8,089)	(6,698)	(5,666)	(5,868)	(5,408)	(5,593)	(3,827)	(26,723)	(20,696)	(17,534)
Distributions less than (in excess of) net income of subsidiaries:
Net income	$ 11,455	$ 15,422	$ 12,383	$ 10,434	$ 10,683	$ 10,626	$ 9,936	$ 7,761	49,694	39,006	32,774
Parent
Dividends from subsidiaries:
Pulaski Bank before bank merger									8,700
Non-bank									4,000	8,000	2,000
Interest and dividend income											20
Other income									5,664	5,633	3,475
Total operating income									18,364	13,633	5,495
Expense:
Salaries, wages and employee benefits									8,879	7,658	6,778
Interest Expense									2,035	1,223	1,183
Operating expense									3,967	3,203	2,563
Total expense									14,881	12,084	10,524
Income (loss) before income tax benefit and distributions (in excess of) less than net income of subsidiaries									3,483	1,549	(5,029)
Income tax benefit									4,073	3,001	3,131
Income (loss) before distributions less than (in excess of) net income of subsidiaries									7,556	4,550	(1,898)
Distributions less than (in excess of) net income of subsidiaries:
Bank									41,980	37,878	31,991
Non-bank									158	(3,422)	2,681
Net income									$ 49,694	$ 39,006	$ 32,774

Parent Company Only Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flows from Operating Activities
Net income	$ 11,455	$ 15,422	$ 12,383	$ 10,434	$ 10,683	$ 10,626	$ 9,936	$ 7,761	$ 49,694	$ 39,006	$ 32,774
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation									1,803	1,418	1,187
Changes in assets and liabilities:
Decrease (increase) in other assets									(407)	(137)	2,112
Decrease in other liabilities									(6,288)	(1,329)	(650)
Net cash (used in) provided by operating activities									(20,894)	61,505	68,111
Cash Flows from Investing Activities
Decrease in loans									(1,294)	(118,398)	(126,604)
Proceeds from sales of securities classified available for sale									52,587	25,068	74,113
Proceeds from sales of premises and equipment									2,485	312	78
Purchases of premises and equipment									(8,991)	(4,114)	(3,778)
Net cash provided by (used in) investing activities									149,743	(134,246)	(51,262)
Cash Flows from Financing Activities
Redemption of SBLF preferred stock										(72,664)
Value of shares surrendered upon vesting of restricted stock units to cover tax obligations									809	269	45
Cash dividends paid									(22,748)	(18,619)	(17,224)
Common stock issuance costs									(246)
Cash payment for fractional shares related to reverse stock split										(5)
Purchase of treasury stock										(6,296)
Net cash (used in) provided by financing activities									(281,423)	52,583	90,986
Cash and cash equivalents, beginning of period				319,280				339,438	319,280	339,438	231,603
Cash and cash equivalents, ending of period	166,706				319,280				166,706	319,280	339,438
Parent
Cash Flows from Operating Activities
Net income									49,694	39,006	32,774
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization									198	114	112
Distributions less than net income of subsidiaries									(42,138)	(34,456)	(34,672)
Stock-based compensation									1,803	1,418	1,187
Changes in assets and liabilities:
Decrease (increase) in other assets									1,057	(4,871)	951
Decrease in other liabilities									(3,690)	(361)	(1,077)
Net cash (used in) provided by operating activities									6,924	850	(725)
Cash Flows from Investing Activities
Proceeds from sales of securities classified available for sale										14
Net cash received (outlay) for business acquisition									602	(33,759)
Purchases of premises and equipment									(3)	(2)	(114)
Net cash provided by (used in) investing activities									599	(33,747)	(114)
Cash Flows from Financing Activities
Proceeds from charter amendment with subsidiary bank									30,000	60,000	60,000
Redemption of SBLF preferred stock										(72,664)
Value of shares surrendered upon vesting of restricted stock units to cover tax obligations									809	269	45
Cash dividends paid									(22,748)	(18,619)	(17,224)
Common stock issuance costs									(246)
Cash payment for fractional shares related to reverse stock split										(5)
Purchase of treasury stock										(6,296)
Net cash (used in) provided by financing activities									6,197	(37,853)	42,731
Net increase (decrease) in cash and due from subsidiary banks									13,720	(70,750)	41,892
Cash and cash equivalents, beginning of period				$ 13,787				$ 84,537	13,787	84,537	42,645
Cash and cash equivalents, ending of period	$ 27,507				$ 13,787				$ 27,507	$ 13,787	$ 84,537

Unaudited Interim Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Unaudited Interim Financial Data
Total interest income	$ 47,639	$ 47,188	$ 40,538	$ 29,524	$ 31,119	$ 29,730	$ 28,910	$ 28,263	$ 164,889	$ 118,022	$ 108,075
Total interest expense	3,004	3,057	2,586	1,582	1,520	1,535	1,559	1,593	10,229	6,207	6,499
Net interest income	44,635	44,131	37,952	27,942	29,599	28,195	27,351	26,670	154,660	111,815	101,576
Provision for loan losses	1,500	1,950	1,100	1,000	1,000	100		500	5,550	1,600	2,000
Total non-interest income	19,001	20,745	18,577	16,846	16,315	15,889	16,623	15,965	75,169	64,792	58,941
Total non-interest expense	44,411	39,415	36,348	27,688	28,363	27,950	28,445	30,547	147,862	115,305	108,209
Income before income taxes	17,725	23,511	19,081	16,100	16,551	16,034	15,529	11,588	76,417	59,702	50,308
Income taxes	6,270	8,089	6,698	5,666	5,868	5,408	5,593	3,827	26,723	20,696	17,534
Net income	11,455	15,422	12,383	10,434	10,683	10,626	9,936	7,761	49,694	39,006	32,774
Preferred stock dividends					155	182	181	182		700	727
Net income available to common stockholders	$ 11,455	$ 15,422	$ 12,383	$ 10,434	$ 10,528	$ 10,444	$ 9,755	$ 7,579	$ 49,694	$ 38,306	$ 32,047
Basic earnings per share (in dollars per share)	$ 0.30	$ 0.40	$ 0.35	$ 0.36	$ 0.37	$ 0.36	$ 0.34	$ 0.26	$ 1.42	$ 1.32	$ 1.11
Diluted earnings per share (in dollars per share)	$ 0.30	$ 0.40	$ 0.35	$ 0.36	$ 0.36	$ 0.36	$ 0.33	$ 0.26	$ 1.40	$ 1.32	$ 1.10