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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2017	May 09, 2017
Document and Entity Information
Entity Registrant Name	FIRST BUSEY CORP /NV/
Entity Central Index Key	0000314489
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		38,244,696
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Cash and due from banks (interest-bearing 2017 $354,822; 2016 $75,006)	$ 439,511	$ 166,097
Federal funds sold		609
Cash and cash equivalents	439,511	166,706
Securities available for sale, at fair value	654,216	759,811
Securities held to maturity, at amortized cost	89,660	47,820
Loans held for sale	96,444	256,319
Portfolio loans (net of allowance for loan losses 2017 $48,442; 2016 $47,795)	3,824,510	3,831,105
Premises and equipment, net	77,967	77,861
Goodwill	102,814	102,814
Other intangible assets, net	17,255	18,462
Cash surrender value of bank owned life insurance	80,068	79,720
Deferred tax asset, net	19,284	20,224
Other assets	37,206	64,328
Total assets	5,438,935	5,425,170
Deposits:
Noninterest-bearing	1,206,324	1,134,133
Interest-bearing	3,279,219	3,240,165
Total deposits	4,485,543	4,374,298
Securities sold under agreements to repurchase	163,081	189,157
Short-term borrowings		75,000
Long-term debt	80,000	80,000
Junior subordinated debt owed to unconsolidated trusts	70,903	70,868
Other liabilities	37,061	41,533
Total liabilities	4,836,588	4,830,856
Commitments and contingencies (See "Note 14: Outstanding Commitments and Contingent Liabilities")
Stockholders' Equity
Common stock, $.001 par value, authorized 66,666,667 shares; shares issued 2017 and 2016 38,869,519	39	39
Additional paid-in capital	780,427	781,716
Accumulated deficit	(155,507)	(163,689)
Accumulated other comprehensive (loss) income	(135)	36
Total stockholders' equity before treasury stock	624,824	618,102
Common stock shares held in treasury at cost, 2017 626,408; 2016 633,232	(22,477)	(23,788)
Total stockholders' equity	602,347	594,314
Total liabilities and stockholders' equity	$ 5,438,935	$ 5,425,170
Common shares outstanding at period end	38,243,111	38,236,287

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
CONSOLIDATED BALANCE SHEETS
Cash and due from banks, interest-bearing (in dollars)	$ 354,822	$ 75,006
Portfolio Loans, allowance for loan losses (in dollars)	$ 48,442	$ 47,795
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	38,869,519
Common stock shares held in treasury	626,408	633,232

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Mar. 31, 2017	Mar. 31, 2016
Interest income:
Interest and fees on loans	$ 40,597	$ 25,144
Interest and dividends on investment securities:
Taxable interest income	3,603	3,611
Non-taxable interest income	727	769
Total interest income	44,927	29,524
Interest expense:
Deposits	2,044	1,107
Federal funds purchased and securities sold under agreements to repurchase	123	82
Short-term borrowings	47	13
Long-term debt	113	43
Junior subordinated debt owed to unconsolidated trusts	587	337
Total interest expense	2,914	1,582
Net interest income	42,013	27,942
Provision for loan losses	500	1,000
Net interest income after provision for loan losses	41,513	26,942
Non-interest income:
Trust fees	6,190	5,547
Commissions and brokers' fees, net	722	668
Remittance processing	2,845	2,925
Service charges on deposit accounts	4,075	3,125
Other service charges and fees	1,911	1,581
Mortgage revenue	2,134	880
Security gains, net	857	1,067
Other	1,280	1,053
Total non-interest income	20,014	16,846
Non-interest expense:
Salaries, wages and employee benefits	21,890	15,366
Net occupancy expense of premises	3,185	2,167
Furniture and equipment expenses	1,619	1,084
Data processing	3,598	3,232
Amortization of intangible assets	1,207	766
Regulatory expense	592	588
Other	5,528	4,485
Total non-interest expense	37,619	27,688
Income before income taxes	23,908	16,100
Income taxes	8,738	5,666
Net income	$ 15,170	$ 10,434
Basic earnings per common share (in dollars per share)	$ 0.40	$ 0.36
Diluted earnings per common share (in dollars per share)	0.39	0.36
Dividends declared per share of common stock (in dollars per share)	$ 0.18	$ 0.17

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME
Net income	$ 15,170	$ 10,434
Unrealized net gains on securities:
Unrealized net holding gains arising during period	573	7,699
Reclassification adjustment for (gains) included in net income	(857)	(1,067)
Other comprehensive (loss) income, before tax	(284)	6,632
Income tax (benefit) expense related to items of other comprehensive income	(113)	2,655
Other comprehensive (loss) income, net of tax	(171)	3,977
Comprehensive income	$ 14,999	$ 14,411

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (loss)	Treasury Stock	Total
Balance at Dec. 31, 2015	$ 29	$ 591,053	$ (190,265)	$ 2,340	$ (29,971)	$ 373,186
Increase (decrease) in shareholders' equity
Net income			10,434			10,434
Other comprehensive (loss) income				3,977		3,977
Issuance of treasury stock for employee stock purchase plan		(370)			533	163
Net issuance of treasury stock for restricted stock unit vesting and related tax benefit		(78)			72	(6)
Cash dividends common stock of $0.18 and $0.17 per share for the period of three months ended March 2017 and 2016, respectively			(4,879)			(4,879)
Stock dividend equivalents restricted stock units of $0.18 and $0.17 per share for the period of three months ended March 2017 and 2016, respectively		82	(82)
Stock-based employee compensation		389				389
Balance at Mar. 31, 2016	29	591,076	(184,792)	6,317	(29,366)	383,264
Balance at Dec. 31, 2016	39	781,716	(163,689)	36	(23,788)	594,314
Increase (decrease) in shareholders' equity
Net income			15,170			15,170
Other comprehensive (loss) income				(171)		(171)
Issuance of treasury stock for employee stock purchase plan		(239)			439	200
Net issuance of treasury stock for restricted stock unit vesting and related tax benefit		(1,017)			914	(103)
Net issuance of stock options exercised, net of shares redeemed		(681)			818	137
Cash dividends common stock of $0.18 and $0.17 per share for the period of three months ended March 2017 and 2016, respectively			(6,879)			(6,879)
Stock dividend equivalents restricted stock units of $0.18 and $0.17 per share for the period of three months ended March 2017 and 2016, respectively		103	(103)
Stock dividend accrued on restricted stock awards assumed with the Pulaski acquisition at $0.18 per share			(6)			(6)
Return of 28,648 equity trust shares					(860)	(860)
Stock-based employee compensation		545				545
Balance at Mar. 31, 2017	$ 39	$ 780,427	$ (155,507)	$ (135)	$ (22,477)	$ 602,347

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash dividends, common stock (in dollars per share)	$ 0.18	$ 0.17
Stock dividends, restricted stock units (in dollars per share)	$ 0.18	$ 0.17
Return of equity trust shares	28,648
Pulaski
Stock dividends, accrued restricted stock awards (in dollars per share)	$ 0.18

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows from Operating Activities
Net income	$ 15,170	$ 10,434
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based and non-cash compensation	545	389
Depreciation	1,949	1,408
Amortization of intangible assets	1,207	766
Provision for loan losses	500	1,000
Provision for deferred income taxes	1,053	1,398
Amortization of security premiums and discounts, net	1,334	1,924
Accretion of premiums and discounts on time deposits and trust preferred securities, net	(99)
Accretion of premiums and discounts on portfolio loans, net	(1,748)	(247)
Net security gains	(857)	(1,067)
Gain on sales of mortgage loans, net of origination costs	(13,964)	(399)
Mortgage loans originated for sale	(325,525)	(35,677)
Proceeds from sales of mortgage loans	493,621	32,484
Net gains on disposition of premises and equipment	(4)	(9)
Increase in cash surrender value of bank owned life insurance	(348)	(194)
Change in assets and liabilities:
Decrease (increase) in other assets	14,372	(1,176)
Decrease in other liabilities	(6,943)	(3,022)
Decrease in interest payable	(94)	(15)
Decrease (increase) in income taxes receivable	6,401	(1,015)
Net cash provided by operating activities before activities	186,570	6,982
Cash Flows from Investing Activities
Proceeds from sales of securities classified available for sale	121,993	35,588
Proceeds from maturities of securities classified available for sale	47,872	49,608
Proceeds from maturities of securities classified held to maturity	874	503
Purchase of securities classified available for sale	(64,619)	(23,106)
Purchase of securities classified held to maturity	(43,126)
Net decrease in portfolio loans	13,396	52,060
Proceeds from disposition of premises and equipment	44	12
Proceeds from sale of other real estate owned ("OREO") properties	3,229	366
Purchases of premises and equipment	(2,095)	(1,235)
Proceeds from the redemption of Federal Home Loan Bank ("FHLB") stock	6,365
Net cash provided by investing activities	83,933	113,796
Cash Flows from Financing Activities
Net decrease in certificates of deposit	(23,588)	(16,717)
Net increase (decrease) in demand, money market and savings deposits	134,967	(90,661)
Repayment of short-term borrowings	(75,000)
Cash dividends paid	(6,879)	(4,879)
Value of shares surrendered upon vesting to satisfy tax withholding obligations of stock-based compensation	(1,259)	(10)
Proceeds from stock options exercised	137
Net decrease in securities sold under agreements to repurchase	(26,076)	(6,831)
Net cash provided by (used in) financing activities	2,302	(119,098)
Net increase in cash and cash equivalents	272,805	1,680
Cash and cash equivalents, beginning of period	166,706	319,280
Cash and cash equivalents, ending of period	439,511	320,960
Cash Payments for:
Interest	3,008	1,591
Income taxes	58	5,200
Non-cash investing and financing activities:
Real estate acquired in settlement of loans	$ 190	$ 41

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2017
Basis of Presentation
Basis of Presentation	Note 1: Basis of Presentation The accompanying unaudited Consolidated Financial Statements of First Busey Corporation (“First Busey” or the “Company”), a Nevada corporation, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information and with the instructions to Form 10-Q, and do not include certain information and footnote disclosures required by U.S. generally accepted accounting principles (“GAAP”) for complete annual financial statements. Accordingly, these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 on file with the SEC. The accompanying Consolidated Balance Sheet as of December 31, 2016, which has been derived from audited financial statements, and the unaudited Consolidated Financial Statements have been prepared in accordance with GAAP and reflect all adjustments that are, in the opinion of management, necessary for the fair presentation of the financial position and results of operations as of the dates and for the periods presented. All such adjustments are of a normal recurring nature. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. On April 30, 2016, First Busey acquired Pulaski Financial Corp., a Missouri corporation (“Pulaski”), and its wholly-owned bank subsidiary, Pulaski Bank, National Association (“Pulaski Bank”). First Busey operated Pulaski Bank as a separate banking 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. The unaudited Consolidated Financial Statements include the accounts of the Company, Busey Bank and Busey Bank’s wholly owned subsidiaries, FirsTech, Inc. and Pulaski Service Corporation (as of the date of acquisition, April 30, 2016) and Busey Wealth Management, Inc. and its wholly owned subsidiary, Busey Trust Company. All material intercompany transactions and balances have been eliminated in consolidation. Certain prior-year amounts have been reclassified to conform to the current presentation with no effect on net income or stockholders’ equity. On February 6, 2017, the Company entered into an Agreement and Plan of Merger (“Merger Agreement FCFP”) with First Community Financial Partners, Inc., an Illinois corporation (“First Community”), pursuant to which First Community will merge into First Busey, with First Busey as the surviving corporation (“Merger FCFP”). 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. Merger FCFP is anticipated to be completed in mid-2017, and is subject to the satisfaction of customary closing conditions contained in Merger Agreement FCFP, including the approval of the appropriate regulatory authorities and the stockholders of First Community. First Community’s special meeting of stockholders to approve Merger FCFP is scheduled for June 7, 2017. First Busey has received approval of Merger FCFP from the Board of Governors of the Federal Reserve System, contingent on First Busey receiving all other regulatory approvals, including approval from the bank regulators of the bank merger. As of March 31, 2017, First Community had total consolidated assets of $1.3 billion, total loans of $1.1 billion and total deposits of $1.1 billion. See “Note 2: Acquisitions” for further information relating to this planned acquisition. Further, on March 13, 2017, the Company entered into an Agreement and Plan of Merger (“Merger Agreement MIB”) with Mid Illinois Bancorp, Inc., an Illinois corporation (“Mid Illinois”), pursuant to which Mid Illinois will merge into First Busey, with First Busey as the surviving corporation (“Merger MIB”). It is anticipated that South Side Trust & Savings Bank of Peoria, Mid Illinois’s wholly-owned bank subsidiary (“South Side”), 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, South Side’s banking offices will become branches of Busey Bank. As of March 31, 2017, Mid Illinois had total consolidated assets of $674.8 million, total loans of $369.3 million and total deposits of $528.4 million. Merger MIB is anticipated to be completed in the second half of 2017, and is subject to the satisfaction of customary closing conditions in Merger Agreement MIB and the approval of the appropriate regulatory authorities and of the stockholders of Mid Illinois. See “Note 2: Acquisitions” for further information relating to this planned acquisition. In preparing the accompanying unaudited Consolidated Financial Statements, 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 that are particularly susceptible to significant change in the near term relate to the fair value of investment securities, the fair value of assets acquired and liabilities assumed in business combinations and the determination of the allowance for loan losses. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the unaudited Consolidated Financial Statements included in this Quarterly Report on Form 10-Q were issued. There were no significant subsequent events for the quarter ended March 31, 2017 through the issuance date of these unaudited Consolidated Financial Statements that warranted adjustment to or disclosure in the unaudited Consolidated Financial Statements.

Acquisitions

3 Months Ended

Mar. 31, 2017

Acquisitions

Acquisitions

Note 2: Acquisitions

Pulaski Financial Corp.

On April 30, 2016, First Busey completed its acquisition of Pulaski, which was headquartered in St. Louis, Missouri. 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, no further adjustments will be made. 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 an insignificant amount of expenses related to the acquisition of Pulaski for the three months ended March 31, 2017. First Busey incurred $0.2 million in pre-tax expenses related to the acquisition of Pulaski for the three months ended March 31, 2016, primarily for professional and legal fees, to directly consummate the acquisition, all of which are reported as a component of non-interest expense in the accompanying unaudited Consolidated Financial Statements.

The following table presents the assets acquired and liabilities assumed of Pulaski as of April 30, 2016 and their fair value estimates (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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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 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. At March 31, 2017, PCI loans with a carrying value of $1.1 million were outstanding. Material activity includes PCI loans with a carrying value of $6.2 million being sold to outside parties in the third quarter of 2016 and a commercial PCI loan with a carrying value of $1.6 million being collected in the fourth quarter of 2016. 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.

The following table provides the unaudited pro forma information for the results of operations for the three months ended March 31, 2016, as if the acquisition had occurred January 1, 2016. The pro forma results combine the historical results of Pulaski into 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, 2016. 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 had been recognized are included in net income in the table below (dollars in thousands):

	Pro Forma Three Months Ended
	March 31, 2016
Total revenues (net interest income plus other income)	$	61,025
Net income	13,400

Merger FCFP - First Community Financial Partners, Inc.

On February 6, 2017, the Company entered into Merger Agreement FCFP 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, 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. Merger FCFP is anticipated to be completed in mid-2017, and is subject to the satisfaction of customary closing conditions contained in Merger Agreement FCFP including the approval of the appropriate regulatory authorities and the stockholders of First Community. First Community’s special meeting of stockholders to approve Merger FCFP is scheduled for June 7, 2017. First Busey has received approval of Merger FCFP from the Board of Governors of the Federal Reserve System, contingent on First Busey receiving all other regulatory approvals, including approval from the bank regulators of the bank merger. As of March 31, 2017, First Community had total consolidated assets of $1.3 billion, total loans of $1.1 billion 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. Merger Agreement FCFP 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.

This transaction will be accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged will be recorded at estimated fair values on the date of acquisition. Fair values are subject to refinement for up to one year after the closing date.

First Busey incurred $0.6 million in pre-tax expenses related to the planned acquisition of First Community for the three months ended March 31, 2017, primarily for professional and legal fees, all of which are reported as a component of non-interest expense in the accompanying unaudited Consolidated Financial Statements.

Merger MIB - Mid Illinois Bancorp, Inc.

On March 13, 2017, the Company entered into Merger Agreement MIB with Mid Illinois, pursuant to which Mid Illinois will merge into First Busey, with First Busey as the surviving corporation. It is anticipated that South Side, 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, South Side’s banking offices will become branches of Busey Bank. Merger MIB is anticipated to be completed in the second half of 2017, and is subject to the satisfaction of customary closing conditions in Merger Agreement MIB and the approval of the appropriate regulatory authorities and of the stockholders of Mid Illinois. As of March 31, 2017, Mid Illinois had total consolidated assets of $674.8 million, total loans of $369.3 million and total deposits of $528.4 million.

Founded in 1922, South Side operates as a state chartered commercial and trust bank with thirteen branches located within the greater Peoria area. South Side also owns Mid-Illinois Insurance Services, Inc. Merger Agreement MIB between the Company and Mid Illinois, and the Investor Presentation with more information regarding our planned acquisition of Mid Illinois, can be found on Form 8-K, filed on March 13, 2017.

First Busey incurred $0.1 million in pre-tax expenses related to the planned acquisition of Mid Illinois for the three months ended March 31, 2017, primarily for legal fees, all of which are reported as a component of non-interest expense in the accompanying unaudited 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
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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
-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4845-128472

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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Mar. 31, 2017
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 3: Recent Accounting Pronouncements 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’s revenue is comprised of net interest income, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. ASU 2014-09 may require the Company to change how it recognizes certain recurring revenues related to non-interest income; however it is not expected to have a material impact on its Consolidated Financial Statements 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 Consolidated Financial Statements; eliminating the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is 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 continuing to assess 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 2016-13, “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 has an implementation team working through the provisions of ASU 2016-13, including 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 on 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. ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 is intended to simplify goodwill impairment testing by eliminating the second step of the analysis. ASU 2017-04 requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. This guidance is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Company does not expect this guidance to have a material impact on its Consolidated Financial Statements. ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium, requiring the premium to be amortized to the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. This guidance is effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company does not expect this guidance to have a material impact on its Consolidated Financial Statements.

- Definition

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=66092750

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
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-URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e725-108305

+ Details

Securities

3 Months Ended

Mar. 31, 2017

Securities

Securities

Note 4: Securities

Securities are classified as held to maturity when First Busey has the ability and management has the intent to hold those securities to maturity. Accordingly, they are stated at cost, adjusted for amortization of premiums and accretion of discounts. Securities are classified as available for sale when First Busey may decide to sell those securities due to changes in market interest rates, liquidity needs, changes in yields on alternative investments, and for other reasons. They are carried at fair value with unrealized gains and losses, net of taxes, reported in other comprehensive income.

The amortized cost, unrealized gains and losses and fair values of securities are summarized as follows (dollars in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
March 31, 2017:
Available for sale
U.S. Treasury securities	$	61,272	$	164	$	(13	)	$	61,423
Obligations of U.S. government corporations and agencies	77,246		30		(422		)	76,854
Obligations of states and political subdivisions	151,928		1,223		(280		)	152,871
Residential mortgage-backed securities	328,924		1,452		(2,828		)	327,548
Corporate debt securities	31,030		147		(22		)	31,155

Total debt securities	650,400		3,016		(3,565		)	649,851
Mutual funds and other equity securities	4,040		325		—			4,365

Total	$	654,440	$	3,341	$	(3,565	)	$	654,216


Held to maturity
Obligations of states and political subdivisions	$	43,069	$	268	$	(39	)	$	43,298
Commercial and residential mortgage-backed securities	46,591		353		(109		)	46,835

Total	$	89,660	$	621	$	(148	)	$	90,133

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
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

The amortized cost and fair value of debt securities as of March 31, 2017, by contractual maturity or pre-refunded date, are shown below (dollars in thousands). 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
Due in one year or less	$	97,523	$	97,695	$	1,285	$	1,287
Due after one year through five years	196,220		196,457		20,126		20,231
Due after five years through ten years	64,842		66,044		22,249		22,277
Due after ten years	291,815		289,655		46,000		46,338

Total	$	650,400	$	649,851	$	89,660	$	90,133

Realized gains and losses related to sales of securities are summarized as follows (dollars in thousands):

	Three Months Ended March 31,
	2017			2016
Gross security gains	$	968		$	1,074
Gross security (losses)	(111		)	(7		)

Net security gains	$	857		$	1,067

The tax provision for the net realized gains and losses was $0.3 million and $0.4 million for the three months ended March 31, 2017 and 2016, respectively.

Investment securities with carrying amounts of $500.6 million and $547.2 million on March 31, 2017 and December 31, 2016, 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 March 31, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows (dollars in thousands):

	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
March 31, 2017:
Available for sale
U.S. Treasury securities	$	10,007	$	(13	)	$	—	$	—		$	10,007	$	(13	)
Obligations of U.S. government corporations and agencies	61,253		(422		)	—		—			61,253		(422		)
Obligations of states and political subdivisions	48,103		(276		)	1,156		(4		)	49,259		(280		)
Residential mortgage-backed securities	183,163		(2,828		)	—		—			183,163		(2,828		)
Corporate debt securities	7,789		(22		)	—		—			7,789		(22		)

Total temporarily impaired securities	$	310,315	$	(3,561	)	$	1,156	$	(4	)	$	311,471	$	(3,565	)


Held to maturity
Obligations of states and political subdivisions	$	8,344	$	(39	)	$	—	$	—		$	8,344	$	(39	)
Commercial and residential mortgage-backed securities	2,385		(109		)	—		—			2,385		(109		)

Total temporarily impaired securities	$	10,729	$	(148	)	$	—	$	—		$	10,729	$	(148	)

	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
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	)

Securities are periodically evaluated for other-than-temporary impairment (“OTTI”). The total number of securities in the investment portfolio in an unrealized loss position as of March 31, 2017 was 195, and represented a loss of 1.14% of the aggregate carrying value. As of March 31, 2017, 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 March 31, 2017.

The Company had available for sale obligations of state and political subdivisions with aggregate fair values of $152.9 million and $154.9 million as of March 31, 2017 and December 31, 2016, respectively. In addition, the Company had held to maturity obligations of state and political subdivisions with aggregate fair values of $43.3 million and $44.3 million as of March 31, 2017 and December 31, 2016, respectively.

As of March 31, 2017, the aggregate fair value of the Company’s obligations of state and political subdivisions portfolio was comprised of $161.5 million of general obligation bonds and $34.7 million of revenue bonds issued by 257 issuers, primarily consisting of states, counties, cities, towns, villages and school districts. The Company held investments in general obligation bonds in 27 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, 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.

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 (dollars in thousands):

March 31, 2017:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
Illinois	71	$	59,502	$	59,994	$	845
Wisconsin	30	20,381		20,474		682
Michigan	38	23,196		23,480		618
Pennsylvania	10	10,232		10,254		1,025
Texas	16	10,175		10,191		637
Ohio	10	10,986		10,996		1,100
Iowa	3	5,332		5,339		1,780
Other	40	20,549		20,733		518

Total general obligations bonds	218	$	160,353	$	161,461	$	741

December 31, 2016:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
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

The general obligation bonds are diversified across many issuers, with $3.4 million being the largest exposure to a single issuer at March 31, 2017 and December 31, 2016. Accordingly, as of March 31, 2017 and December 31, 2016, 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 aggregate fair value as of March 31, 2017. 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.

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

March 31, 2017:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
Indiana	10	$	10,198	$	10,269	$	1,026
Illinois	7	7,312		7,320		1,046
Other	22	17,134		17,119		778


Total revenue bonds	39	$	34,644	$	34,708	$	890

December 31, 2016:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)

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

The revenue bonds are diversified across many issuers and revenue sources with $3.6 million and $3.5 million being the largest exposure to a single issuer at each of March 31, 2017 and December 31, 2016, respectively. Accordingly, as of March 31, 2017 and December 31, 2016, 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, 97.0% had been rated by at least one nationally recognized statistical rating organization and 3.0% were unrated, based on the fair value as of March 31, 2017. 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. 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

3 Months Ended

Mar. 31, 2017

Loans held for sale

Loans held for sale

Note 5: Loans held for sale

Loans held for sale totaled $96.4 million and $256.3 million at March 31, 2017 and December 31, 2016, respectively. The amount of loans held for sale decreased from December 31, 2016, due to lower origination volumes in 2017. 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):

	Three Months Ended March 31, 2017
Premiums received on sales of mortgage loans, including fair value adjustments	$	12,151
Less direct origination costs	(10,387		)
Less provisions to liability for loans sold	(25		)
Mortgage servicing revenues	395

Mortgage revenue	$	2,134

For the three months ended March 31, 2016, mortgage revenue was $0.9 million, as a result of premiums received on sales of mortgage loans, less direct origination compensation costs, and mortgage servicing revenues.

Portfolio loans

3 Months Ended

Mar. 31, 2017

Portfolio loans

Portfolio loans

Note 6: Portfolio loans

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

	March 31, 2017		December 31, 2016
Commercial	$	970,451	$	959,888
Commercial real estate	1,659,077		1,654,164
Real estate construction	169,665		182,078
Retail real estate	1,060,965		1,069,060
Retail other	12,794		13,710

Portfolio loans	$	3,872,952	$	3,878,900

Less allowance for loan losses	48,442		47,795

Portfolio loans, net	$	3,824,510	$	3,831,105

Net deferred loan origination costs included in the table above were $2.6 million as of March 31, 2017 and $2.5 million as of December 31, 2016. Net accretable purchase accounting adjustments included in the table above reduced loans by $10.9 million as of March 31, 2017 and $12.7 million as of December 31, 2016.

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 activities 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. A description of each of the lending areas can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. 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.

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 March 31, 2017 and December 31, 2016. Portfolio loans in the lowest grades, represented by the special mention, substandard and doubtful categories, totaled $163.0 million at March 31, 2017, compared to $165.5 million at December 31, 2016.

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) (dollars in thousands):

	March 31, 2017
	Pass		Watch		Special Mention		Substandard		Doubtful
Commercial	$	836,897	$	69,245	$	25,455	$	29,371	$	11,275
Commercial real estate	1,505,049		80,352		35,734		36,364		4,912
Real estate construction	123,920		36,583		7,156		3,146		34
Retail real estate	1,046,197		6,287		2,865		2,330		4,275
Retail other	12,787		14		—		—		48

Total	$	3,524,850	$	192,481	$	71,210	$	71,211	$	20,544

	December 31, 2016
	Pass		Watch		Special Mention		Substandard		Doubtful
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
											r
Total	$	3,532,612	$	185,954	$	78,554	$	65,478	$	21,423

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 (dollars in thousands):

	March 31, 2017
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Commercial	$	1,013	$	32	$	—	$	11,275
Commercial real estate	2,409		541		194		4,912
Real estate construction	2,234		—		—		34
Retail real estate	2,251		1,298		117		4,275
Retail other	26		—		—		48

Total	$	7,933	$	1,871	$	311	$	20,544

	December 31, 2016
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
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

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 reviewed by the Company for potential impairment.

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 three months ended March 31, 2017 if impaired loans had been current in accordance with their original terms was $0.3 million. The amount of interest collected on those loans and recognized on a cash basis that was included in interest income was insignificant for the three months ended March 31, 2017.

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 March 31, 2017 and December 31, 2016 is as follows (dollars in thousands):

	March 31, 2017		December 31, 2016
Restructured loans:
In compliance with modified terms	$	9,935	$	10,593
30 – 89 days past due	20		59
Included in non-performing loans	878		1,285

Total	$	10,833	$	11,937

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.

There were no performing loans classified as a TDR during the three months ended March, 2017.

Performing loans classified as TDRs during the three months ended March 31, 2016 included three commercial real estate modifications for short-term principal payment relief, with a recorded investment of $0.3 million and two retail real estate modifications for short-term principal payment relief, with a recorded investment of $0.3 million.

The gross interest income that would have been recorded in the three months ended March 31, 2017 and 2016 if performing TDRs had been performing in accordance with their original terms compared with their 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 March 31, 2017.

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 March 31, 2016 consisted of one retail real estate modification totaling $0.1 million and one insignificant retail other modification.

The following tables provide details of impaired loans, segregated by category (dollars in thousands). 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.

	March 31, 2017
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	16,393	$	7,681	$	3,757	$	11,438	$	1,513	$	10,095
Commercial real estate	13,022		9,820		2,205		12,025		1,247		10,267
Real estate construction	494		470		—		470		—		716
Retail real estate	12,983		11,437		382		11,819		140		13,154
Retail other	70		47		2		49		2		133

Total	$	42,962	$	29,455	$	6,346	$	35,801	$	2,902	$	34,365

	December 31, 2016
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
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

Management’s evaluation as to the ultimate collectability of loans includes estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral. These estimates are affected by changing economic conditions and the economic prospects of borrowers.

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 Consolidated 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 March 31, 2017 and December 31, 2016.

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 March 31, 2017, 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 March 31, 2017, 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 first quarter of 2017, 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 March 31, 2017 totaled approximately $874.0 million.

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 (dollars in thousands):

	As of and for the Three Months Ended March 31, 2017
	Commercial			Commercial Real Estate			Real Estate Construction		Retail Real Estate			Retail Other			Total
Beginning balance	$	13,303		$	20,623		$	1,870	$	11,648		$	351		$	47,795
Provision for loan loss	(649		)	(220		)	134		1,220			15			500
Charged-off	(103		)	(588		)	—		(451		)	(90		)	(1,232		)
Recoveries	709			33			17		561			59			1,379
r
Ending Balance	$	13,260		$	19,848		$	2,021	$	12,978		$	335		$	48,442

	As of and for the Three Months Ended March 31, 2016
	Commercial			Commercial Real Estate			Real Estate Construction		Retail Real Estate			Retail Other			Total
Beginning balance	$	13,115		$	18,604		$	1,763	$	13,714		$	291		$	47,487
Provision for loan loss	3,411			(379		)	11		(2,102		)	59			1,000
Charged-off	(3,552		)	—			—		(198		)	(121		)	(3,871		)
Recoveries	349			15			62		73			56			555

Ending Balance	$	13,323		$	18,240		$	1,836	$	11,487		$	285		$	45,171

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

	As of March 31, 2017
	Commercial		Commercial Real Estate		Real Estate Construction		Retail Real Estate		Retail Other		Total
Amount allocated to:
Loans individually evaluated for impairment	$	1,513	$	1,247	$	—	$	140	$	2	$	2,902
Loans collectively evaluated for impairment	11,747		18,601		2,021		12,838		333		45,540

Ending Balance	$	13,260	$	19,848	$	2,021	$	12,978	$	335	$	48,442


Loans:
Loans individually evaluated for impairment	$	11,380	$	11,056	$	470	$	11,422	$	49	$	34,377
Loans collectively evaluated for impairment	959,013		1,647,052		169,195		1,049,146		12,745		3,837,151
PCI loans evaluated for Impairment	58		969		—		397		—		1,424

Ending Balance	$	970,451	$	1,659,077	$	169,665	$	1,060,965	$	12,794	$	3,872,952

	As of December 31, 2016
	Commercial		Commercial Real Estate		Real Estate Construction		Retail Real Estate		Retail Other		Total
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

OREO

3 Months Ended

Mar. 31, 2017

OREO

OREO

Note 7: 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 March 31, 2017, the Company held $0.4 million in commercial OREO, $0.3 million in residential OREO and an insignificant amount of other repossessed assets. 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 March 31, 2017 the Company had $0.6 million of residential real estate in the process of foreclosure.

The following table summarizes activity related to OREO (dollars in thousands):

	Three Months Ended March 31, 2017			Year Ended December 31, 2016
Beginning balance	$	2,518		$	783
Additions, transfers from loans	190			2,775
Additions, fair value from Pulaski acquisition	—			2,488
Proceeds from sales of OREO	(3,229		)	(4,498		)
Gain on sales of OREO	1,260			999
Valuation allowance for OREO	—			(29		)

Ending balance	$	739		$	2,518

- 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
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-Name Accounting Standards Codification
-Topic 942
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-Section S99
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-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
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-Subparagraph (SX 210.12-28)
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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
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(8))
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

+ Details

Deposits

3 Months Ended

Mar. 31, 2017

Deposits

Deposits

Note 8: Deposits

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

	March 31, 2017		December 31, 2016
Demand deposits, noninterest-bearing	$	1,206,324	$	1,134,133
Interest-bearing transaction deposits, saving deposits and money market deposits	2,516,741		2,453,965
Time deposits	762,478		786,200

Total	$	4,485,543	$	4,374,298

Interest-bearing transaction deposits included $31.1 million and $36.9 million of reciprocal brokered transaction deposits at March 31, 2017 and December 31, 2016, respectively. Savings deposits included $17.9 million and $22.2 million of reciprocal brokered deposits at March 31, 2017 and December 31, 2016, respectively.

The aggregate amount of time deposits with a minimum denomination of $100,000 was approximately $342.8 million and $350.7 million at March 31, 2017 and December 31, 2016, respectively. The aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000 was approximately $75.6 million and $70.7 million at March 31, 2017 and December 31, 2016, respectively. There were no National deposits at March 31, 2017. National deposits of $0.1 million were included in the balance of time deposits as of December 31, 2016. The Company had reciprocal brokered time deposits of $88.5 million and $93.4 million at March 31, 2017 and December 31, 2016, respectively, included in the balance of time deposits. Further, the Company had brokered deposits of $5.0 million at March 31, 2017 and December 31, 2016, which are included in the balance of time deposits.

As of March 31, 2017, the scheduled maturities of time deposits, in thousands, are as follows (dollars in thousands):

April 1, 2017 – March 31, 2018	$	520,408
April 1, 2018 – March 31, 2019	159,095
April 1, 2019 – March 31, 2020	43,441
April 1, 2020 – March 31, 2021	17,453
April 1, 2021 – March 31, 2022	21,120
Thereafter	961

	$	762,478

Borrowings

3 Months Ended

Mar. 31, 2017

Borrowings

Borrowings

Note 9: Borrowings

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 March 31, 2017 or December 31, 2016.

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

	March 31, 2017			December 31, 2016
Securities sold under agreements to repurchase
Balance at end of period	$	163,081		$	189,157
Weighted average interest rate at end of period	0.35		%	0.30		%
Maximum outstanding at any month end in year-to-date period	$	170,763		$	216,293
Average daily balance for the year-to-date period	$	165,785		$	181,474
Weighted average interest rate during period(1)	0.30		%	0.22		%

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	$	50,000		$	236,700
Average daily balance for the year-to-date period	$	20,278		$	96,698
Weighted average interest rate during period(1)	0.68		%	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 annualized interest for the year-to-date period by the average daily balance outstanding.

(2)Includes interest and non-usage fee.

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

	March 31, 2017		December 31, 2016

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 March 31, 2017, funds borrowed from the FHLB, listed above, consisted of variable-rate notes maturing through September 2024, with interest rates ranging from 0.50% to 0.83%. The weighted average rate on these long-term advances was 0.59% as of March 31, 2017. 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 the long-term advances was 0.41% as of December 31, 2016.

Junior Subordinated Debt Owed to Unconsolidated Trusts	3 Months Ended
Junior Subordinated Debt Owed to Unconsolidated Trusts	Mar. 31, 2017
Junior Subordinated Debt Owed to Unconsolidated Trusts
Junior Subordinated Debt Owed to Unconsolidated Trusts	Note 10: Junior Subordinated Debt Owed to Unconsolidated Trusts First Busey maintains statutory trusts for the sole purpose of issuing and servicing trust preferred securities and related trust common securities. 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 instruments that qualify, and are treated by the Company, as Tier 1 regulatory capital. The Company owns all of the common securities of each trust. The trust preferred securities issued by each trust rank equally with the common securities in right of payment, except that if an event of default under the indenture governing the notes has occurred and is continuing, the preferred securities will rank senior to the common securities in right of payment. In connection with the Pulaski acquisition, the Company acquired similar statutory trusts maintained by Pulaski, which were adjusted to fair value. The Company had $70.9 million of junior subordinated debt owed to unconsolidated trusts at March 31, 2017 and December 31, 2016. 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 March 31, 2017, 100% of the trust preferred securities qualified as Tier 1 capital under the final rule adopted in March 2005.

Earnings Per Common Share

3 Months Ended

Mar. 31, 2017

Earnings Per Common Share

Earnings Per Common Share

Note 11: Earnings Per Common Share

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

	Three Months Ended March 31,
	2017		2016

Net income	$	15,170	$	10,434

Shares:
Weighted average common shares outstanding	38,293		28,739

Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method	461		190


Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation	38,754		28,929


Basic earnings per common share	$	0.40	$	0.36


Diluted earnings per common share	$	0.39	$	0.36

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 are 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 March 31, 2017 and 2016, 10,850 outstanding options and 191,278 warrants were anti-dilutive and excluded from the calculation of common stock equivalents.

Share-based Compensation

3 Months Ended

Mar. 31, 2017

Share-based Compensation

Share-based Compensation

Note 12: Share-based Compensation

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 March 31, 2017, the Company held 626,408 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 March 31, 2017 the Company had 333,334 shares that may yet be purchased under the plan.

A description of the 2010 Equity Incentive Plan, which was amended in 2015, can be found in the Company’s Proxy Statement for the 2015 Annual Meeting of Stockholders. The Company’s 2010 Equity Incentive Plan is 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 plan.

Stock Option Plan

A summary of the status of and changes in the Company’s stock option awards for the three months ended March 31, 2017 follows:

			Weighted-		Weighted-
			Average		Average
			Exercise		Remaining Contractual
	Shares		Price		Term
Outstanding at beginning of year	209,382		$	15.13
Granted	—		—
Exercised	(13,902	)	11.05
Forfeited	—		—
Expired	—		—

Outstanding at end of period	195,480		$	15.42	1.52

Exercisable at end of period	195,480		$	15.42	1.52

The Company did not record any stock option compensation expense for the three months ended March 31, 2017 or 2016. As of March 31, 2017, the Company had no unrecognized stock option expense.

Restricted Stock Unit Plan

A summary of the changes in the Company’s stock unit awards for the three months ended March 31, 2017, is as follows:

			Weighted-		Director		Weighted-
	Restricted		Average		Deferred		Average
	Stock		Grant Date		Stock		Grant Date
	Units		Fair Value		Units		Fair Value
Non-vested at beginning of year	552,610		$	18.45	35,038		$	21.04
Granted	11,404		30.69		—		—
Dividend equivalents earned	3,105		29.62		568		29.62
Vested	(27,917	)	14.60		(355	)	29.62
Forfeited	(5,214	)	20.10		—		—

Non-vested at end of period	533,988		$	18.96	35,251		$	21.09

Outstanding at end of period	533,988		$	18.96	94,027		$	18.60

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 recognized $0.5 million and $0.4 million of compensation expense related to non-vested stock units for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, there was $5.5 million of total unrecognized compensation cost related to these non-vested stock units. 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

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2017
Income Taxes
Income Taxes	Note 13: Income Taxes At March 31, 2017, the Company was not under examination by any tax authority.

Outstanding Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2017

Outstanding Commitments and Contingent Liabilities

Outstanding Commitments and Contingent Liabilities

Note 14: 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 (dollars in thousands):

	March 31, 2017		December 31, 2016
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	936,608	$	875,077
Standby letters of credit	20,086		20,145

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 March 31, 2017 and December 31, 2016, 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.

Capital

3 Months Ended

Mar. 31, 2017

Capital

Capital

Note 15: 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 from Busey Bank in future periods.

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 March 31, 2017, 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 1.25% increase as of January 1, 2017 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 March 31, 2017, 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 March 31, 2017:

Total Capital (to Risk Weighted Assets)
Consolidated	$	613,980	14.87	%	$	382,037	9.25	%	$	413,013	10.00	%
Busey Bank	$	566,854	13.84	%	$	378,971	9.25	%	$	409,698	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	565,391	13.69	%	$	299,434	7.25	%	$	330,410	8.00	%
Busey Bank	$	518,265	12.65	%	$	297,032	7.25	%	$	327,759	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	491,391	11.90	%	$	237,483	5.75	%	$	268,458	6.50	%
Busey Bank	$	518,265	12.65	%	$	235,577	5.75	%	$	266,304	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated	$	565,391	10.92	%	$	207,159	4.00	%	N/A		N/A
Busey Bank	$	518,265	10.06	%	$	206,130	4.00	%	$	257,662	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
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-Section 50
-Paragraph 1C
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958572-112826

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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Topic 942
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-Section 50
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-Topic 942
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-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958575-112826

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

+ Details

Operating Segments and Related Information

3 Months Ended

Mar. 31, 2017

Operating Segments and Related Information

Operating Segments and Related Information

Note 16: 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.

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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

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

	Goodwill				Total Assets
	March 31, 2017		December 31, 2016		March 31, 2017			December 31, 2016
Banking	$	82,128	$	82,128	$	5,386,689		$	5,369,669
Remittance Processing	8,992		8,992		32,758			32,379
Wealth Management	11,694		11,694		28,626			28,351
Other	—		—		(9,138		)	(5,229		)

Totals	$	102,814	$	102,814	$	5,438,935		$	5,425,170

	Three Months Ended March 31,
	2017			2016
Net interest income:
Banking	$	42,542		$	28,212
Remittance Processing	14			14
Wealth Management	56			66
Other	(599		)	(350		)

Total net interest income	$	42,013		$	27,942


Non-interest income:
Banking	$	10,454		$	7,790
Remittance Processing	3,024			3,040
Wealth Management	7,017			6,261
Other	(481		)	(245		)

Total non-interest income	$	20,014		$	16,846


Non-interest expense:
Banking	$	29,290		$	19,976
Remittance Processing	2,112			2,290
Wealth Management	3,964			4,105
Other	2,253			1,317

Total non-interest expense	$	37,619		$	27,688


Income before income taxes:
Banking	$	23,206		$	15,026
Remittance Processing	926			764
Wealth Management	3,109			2,222
Other	(3,333		)	(1,912		)

Total income before income taxes	$	23,908		$	16,100


Net income:
Banking	$	14,749		$	9,703
Remittance Processing	554			457
Wealth Management	1,848			1,322
Other	(1,981		)	(1,048		)

Total net income	$	15,170		$	10,434

- 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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+ Details

Derivative Financial Instruments

3 Months Ended

Mar. 31, 2017

Derivative Financial Instruments

Derivative Financial Instruments

Note 17: 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. See “Note 18: Fair Value Measurements” for further discussion of the fair value measurement of such derivatives.

Interest Rate Lock Commitments. At March 31, 2017, the Company had issued $217.4 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 unaudited 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 March 31, 2017, the Company had issued $306.2 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 unaudited 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 March 31, 2017 are summarized as follows (dollars in thousands):

	March 31, 2017
Fair value recorded in other assets	$	2,799
Fair value recorded in other liabilities	3,791

The gross gains and losses on these derivative assets and liabilities recorded in non-interest income and expense in the unaudited Consolidated Statements of Income for the three months ended March 31, 2017 are summarized as follows (dollars in thousands):

	March 31, 2017
Gross gains	$	3,865
Gross losses	(3,791		)

Net gains	74

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 March 31, 2017. 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 unaudited 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 unaudited Consolidated Statements of Income for the three months ended March 31, 2017 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):

	March 31, 2017
Notional amount	$	669
Fair value recorded in other assets	5

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

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+ Details

Fair Value Measurements

3 Months Ended

Mar. 31, 2017

Fair Value Measurements

Fair Value Measurements

Note 18: Fair Value Measurements

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

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

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

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

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

There were no transfers between levels during the quarter ended March 31, 2017.

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 Consolidated 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 ASC Topic 820. 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 ASC Topic 820.

Loans held for sale. Loans held for sale are reported at fair value utilizing level 2 measurements. 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 ASC Topic 820.

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 ASC Topic 820.

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016, 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
March 31, 2017
Securities available for sale
U.S. Treasury securities	$	—	$	61,423	$	—	$	61,423
Obligations of U.S. government corporations and agencies	—		76,854		—		76,854
Obligations of states and political subdivisions	—		152,871		—		152,871
Residential mortgage-backed securities	—		327,548		—		327,548
Corporate debt securities	—		31,155		—		31,155
Mutual funds and other equity securities	4,365		—		—		4,365
Loans
Loans held for sale	—		96,444		—		96,444
Derivative assets
Foreign currency forward contracts	—		5		—		5
Derivative financial assets	—		2,799		—		2,799
Derivative liabilities
Derivative financial liabilities	—		3,791		—		3,791

	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

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 ASC Topic 820.

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 ASC Topic 820.

The following table summarizes assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2017 and December 31, 2016, 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
March 31, 2017
Impaired loans	$	—	$	—	$	3,444	$	3,444
OREO(1)	—		—		—		—

December 31, 2016
Impaired loans	$	—	$	—	$	3,885	$	3,885
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 (dollars in thousands):

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range
	Estimate		Techniques	Input	(Weighted Average)
March 31, 2017
Impaired loans	$	3,444	Appraisal of collateral	Appraisal adjustments	-19.7% to -100.0% (-37.1)%
OREO(1)	—		Appraisal of collateral	Appraisal adjustments	-100.0% (-100.0)%
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)%

(1)OREO fair value was less than one thousand dollars.

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):

	March 31, 2017				December 31, 2016
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Level 1 inputs:
Cash and due from banks	$	439,511	$	439,511	$	166,097	$	166,097
Federal funds sold	—		—		609		609
Level 2 inputs:
Securities held to maturity	89,660		90,133		47,820		47,683
Accrued interest receivable	14,751		14,751		15,562		15,562
Level 3 inputs:
Portfolio loans, net	3,824,510		3,827,155		3,831,105		3,841,760
Mortgage servicing rights	2,830		9,155		3,074		7,803

Financial liabilities:
Level 2 inputs:
Deposits	$	4,485,543	$	4,474,773	$	4,374,298	$	4,368,891
Securities sold under agreements to repurchase	163,081		163,081		189,157		189,157
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	70,903		70,903		70,868		70,868
Accrued interest payable	893		893		987		987

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. A detailed description of the valuation methodologies used in estimating the fair value of financial instruments is set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

- 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	3 Months Ended
Liability for Loans Sold	Mar. 31, 2017
Liability for Loans Sold
Liability for Loans Sold	Note 19: 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 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 Consolidated Balance Sheets. Loans repurchased with deteriorated credit quality at the date of repurchase are accounted for under ASC 310-30. The liability for loans sold of $2.1 million at March 31, 2017 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.

Acquisitions (Tables)

3 Months Ended

Mar. 31, 2017

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 estimates (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

Only the acquisition related expenses that had been recognized are included in net income in the table below (dollars in thousands):

	Pro Forma Three Months Ended
	March 31, 2016
Total revenues (net interest income plus other income)	$	61,025
Net income	13,400

Securities (Tables)

3 Months Ended

Mar. 31, 2017

Securities

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

The amortized cost, unrealized gains and losses and fair values of securities are summarized as follows (dollars in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
March 31, 2017:
Available for sale
U.S. Treasury securities	$	61,272	$	164	$	(13	)	$	61,423
Obligations of U.S. government corporations and agencies	77,246		30		(422		)	76,854
Obligations of states and political subdivisions	151,928		1,223		(280		)	152,871
Residential mortgage-backed securities	328,924		1,452		(2,828		)	327,548
Corporate debt securities	31,030		147		(22		)	31,155

Total debt securities	650,400		3,016		(3,565		)	649,851
Mutual funds and other equity securities	4,040		325		—			4,365

Total	$	654,440	$	3,341	$	(3,565	)	$	654,216


Held to maturity
Obligations of states and political subdivisions	$	43,069	$	268	$	(39	)	$	43,298
Commercial and residential mortgage-backed securities	46,591		353		(109		)	46,835

Total	$	89,660	$	621	$	(148	)	$	90,133

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
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

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

The amortized cost and fair value of debt securities as of March 31, 2017, by contractual maturity or pre-refunded date, are shown below (dollars in thousands).

	Available for sale				Held to maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	97,523	$	97,695	$	1,285	$	1,287
Due after one year through five years	196,220		196,457		20,126		20,231
Due after five years through ten years	64,842		66,044		22,249		22,277
Due after ten years	291,815		289,655		46,000		46,338

Total	$	650,400	$	649,851	$	89,660	$	90,133

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

Realized gains and losses related to sales of securities are summarized as follows (dollars in thousands):

	Three Months Ended March 31,
	2017			2016
Gross security gains	$	968		$	1,074
Gross security (losses)	(111		)	(7		)

Net security gains	$	857		$	1,067

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
March 31, 2017:
Available for sale
U.S. Treasury securities	$	10,007	$	(13	)	$	—	$	—		$	10,007	$	(13	)
Obligations of U.S. government corporations and agencies	61,253		(422		)	—		—			61,253		(422		)
Obligations of states and political subdivisions	48,103		(276		)	1,156		(4		)	49,259		(280		)
Residential mortgage-backed securities	183,163		(2,828		)	—		—			183,163		(2,828		)
Corporate debt securities	7,789		(22		)	—		—			7,789		(22		)

Total temporarily impaired securities	$	310,315	$	(3,561	)	$	1,156	$	(4	)	$	311,471	$	(3,565	)


Held to maturity
Obligations of states and political subdivisions	$	8,344	$	(39	)	$	—	$	—		$	8,344	$	(39	)
Commercial and residential mortgage-backed securities	2,385		(109		)	—		—			2,385		(109		)

Total temporarily impaired securities	$	10,729	$	(148	)	$	—	$	—		$	10,729	$	(148	)

	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
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	)

General obligation bonds

Securities

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

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 (dollars in thousands):

March 31, 2017:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
Illinois	71	$	59,502	$	59,994	$	845
Wisconsin	30	20,381		20,474		682
Michigan	38	23,196		23,480		618
Pennsylvania	10	10,232		10,254		1,025
Texas	16	10,175		10,191		637
Ohio	10	10,986		10,996		1,100
Iowa	3	5,332		5,339		1,780
Other	40	20,549		20,733		518

Total general obligations bonds	218	$	160,353	$	161,461	$	741

December 31, 2016:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
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

Revenue bonds

Securities

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

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

March 31, 2017:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
Indiana	10	$	10,198	$	10,269	$	1,026
Illinois	7	7,312		7,320		1,046
Other	22	17,134		17,119		778


Total revenue bonds	39	$	34,644	$	34,708	$	890

December 31, 2016:

						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)

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

Loans held for sale (Tables)

3 Months Ended

Mar. 31, 2017

Loans held for sale

Summary of mortgage revenue

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

	Three Months Ended March 31, 2017
Premiums received on sales of mortgage loans, including fair value adjustments	$	12,151
Less direct origination costs	(10,387		)
Less provisions to liability for loans sold	(25		)
Mortgage servicing revenues	395

Mortgage revenue	$	2,134

Portfolio loans (Tables)

3 Months Ended

Mar. 31, 2017

Portfolio loans

Schedule of distributions of loans

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

	March 31, 2017		December 31, 2016
Commercial	$	970,451	$	959,888
Commercial real estate	1,659,077		1,654,164
Real estate construction	169,665		182,078
Retail real estate	1,060,965		1,069,060
Retail other	12,794		13,710

Portfolio loans	$	3,872,952	$	3,878,900

Less allowance for loan losses	48,442		47,795

Portfolio loans, net	$	3,824,510	$	3,831,105

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

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) (dollars in thousands):

	March 31, 2017
	Pass		Watch		Special Mention		Substandard		Doubtful
Commercial	$	836,897	$	69,245	$	25,455	$	29,371	$	11,275
Commercial real estate	1,505,049		80,352		35,734		36,364		4,912
Real estate construction	123,920		36,583		7,156		3,146		34
Retail real estate	1,046,197		6,287		2,865		2,330		4,275
Retail other	12,787		14		—		—		48

Total	$	3,524,850	$	192,481	$	71,210	$	71,211	$	20,544

	December 31, 2016
	Pass		Watch		Special Mention		Substandard		Doubtful
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

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

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

	March 31, 2017
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Commercial	$	1,013	$	32	$	—	$	11,275
Commercial real estate	2,409		541		194		4,912
Real estate construction	2,234		—		—		34
Retail real estate	2,251		1,298		117		4,275
Retail other	26		—		—		48

Total	$	7,933	$	1,871	$	311	$	20,544

	December 31, 2016
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
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

Summary of restructured loans

A summary of restructured loans as of March 31, 2017 and December 31, 2016 is as follows (dollars in thousands):

	March 31, 2017		December 31, 2016
Restructured loans:
In compliance with modified terms	$	9,935	$	10,593
30 – 89 days past due	20		59
Included in non-performing loans	878		1,285

Total	$	10,833	$	11,937

Schedule of details of impaired loans, segregated by category

The following tables provide details of impaired loans, segregated by category (dollars in thousands).

	March 31, 2017
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	16,393	$	7,681	$	3,757	$	11,438	$	1,513	$	10,095
Commercial real estate	13,022		9,820		2,205		12,025		1,247		10,267
Real estate construction	494		470		—		470		—		716
Retail real estate	12,983		11,437		382		11,819		140		13,154
Retail other	70		47		2		49		2		133

Total	$	42,962	$	29,455	$	6,346	$	35,801	$	2,902	$	34,365

	December 31, 2016
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
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

Schedule of activity on the allowance for loan losses

The following table details activity in the allowance for loan losses. (dollars in thousands):

	As of and for the Three Months Ended March 31, 2017
	Commercial			Commercial Real Estate			Real Estate Construction		Retail Real Estate			Retail Other			Total
Beginning balance	$	13,303		$	20,623		$	1,870	$	11,648		$	351		$	47,795
Provision for loan loss	(649		)	(220		)	134		1,220			15			500
Charged-off	(103		)	(588		)	—		(451		)	(90		)	(1,232		)
Recoveries	709			33			17		561			59			1,379

Ending Balance	$	13,260		$	19,848		$	2,021	$	12,978		$	335		$	48,442

	As of and for the Three Months Ended March 31, 2016
	Commercial			Commercial Real Estate			Real Estate Construction		Retail Real Estate			Retail Other			Total
Beginning balance	$	13,115		$	18,604		$	1,763	$	13,714		$	291		$	47,487
Provision for loan loss	3,411			(379		)	11		(2,102		)	59			1,000
Charged-off	(3,552		)	—			—		(198		)	(121		)	(3,871		)
Recoveries	349			15			62		73			56			555

Ending Balance	$	13,323		$	18,240		$	1,836	$	11,487		$	285		$	45,171

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

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

	As of March 31, 2017
	Commercial		Commercial Real Estate		Real Estate Construction		Retail Real Estate		Retail Other		Total
Amount allocated to:
Loans individually evaluated for impairment	$	1,513	$	1,247	$	—	$	140	$	2	$	2,902
Loans collectively evaluated for impairment	11,747		18,601		2,021		12,838		333		45,540

Ending Balance	$	13,260	$	19,848	$	2,021	$	12,978	$	335	$	48,442


Loans:
Loans individually evaluated for impairment	$	11,380	$	11,056	$	470	$	11,422	$	49	$	34,377
Loans collectively evaluated for impairment	959,013		1,647,052		169,195		1,049,146		12,745		3,837,151
PCI loans evaluated for Impairment	58		969		—		397		—		1,424

Ending Balance	$	970,451	$	1,659,077	$	169,665	$	1,060,965	$	12,794	$	3,872,952

	As of December 31, 2016
	Commercial		Commercial Real Estate		Real Estate Construction		Retail Real Estate		Retail Other		Total
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

OREO (Tables)

3 Months Ended

Mar. 31, 2017

OREO

Summary of activities relating to OREO

The following table summarizes activity related to OREO (dollars in thousands):

	Three Months Ended March 31, 2017			Year Ended December 31, 2016
Beginning balance	$	2,518		$	783
Additions, transfers from loans	190			2,775
Additions, fair value from Pulaski acquisition	—			2,488
Proceeds from sales of OREO	(3,229		)	(4,498		)
Gain on sales of OREO	1,260			999
Valuation allowance for OREO	—			(29		)

Ending balance	$	739		$	2,518

Deposits (Tables)

3 Months Ended

Mar. 31, 2017

Deposits

Schedule of composition of deposits

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

	March 31, 2017		December 31, 2016
Demand deposits, noninterest-bearing	$	1,206,324	$	1,134,133
Interest-bearing transaction deposits, saving deposits and money market deposits	2,516,741		2,453,965
Time deposits	762,478		786,200

Total	$	4,485,543	$	4,374,298

Schedule of maturities of time deposits

As of March 31, 2017, the scheduled maturities of time deposits, in thousands, are as follows (dollars in thousands):

April 1, 2017 – March 31, 2018	$	520,408
April 1, 2018 – March 31, 2019	159,095
April 1, 2019 – March 31, 2020	43,441
April 1, 2020 – March 31, 2021	17,453
April 1, 2021 – March 31, 2022	21,120
Thereafter	961

	$	762,478

Borrowings (Tables)

3 Months Ended

Mar. 31, 2017

Borrowings

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

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

	March 31, 2017			December 31, 2016
Securities sold under agreements to repurchase
Balance at end of period	$	163,081		$	189,157
Weighted average interest rate at end of period	0.35		%	0.30		%
Maximum outstanding at any month end in year-to-date period	$	170,763		$	216,293
Average daily balance for the year-to-date period	$	165,785		$	181,474
Weighted average interest rate during period(1)	0.30		%	0.22		%

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	$	50,000		$	236,700
Average daily balance for the year-to-date period	$	20,278		$	96,698
Weighted average interest rate during period(1)	0.68		%	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 annualized interest for the year-to-date period by the average daily balance outstanding.

(2)Includes interest and non-usage fee.

Summary of long-term debt

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

	March 31, 2017		December 31, 2016

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

Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2017

Earnings Per Common Share

Schedule of computation of earnings per common share

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

	Three Months Ended March 31,
	2017		2016

Net income	$	15,170	$	10,434

Shares:
Weighted average common shares outstanding	38,293		28,739

Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method	461		190


Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation	38,754		28,929


Basic earnings per common share	$	0.40	$	0.36


Diluted earnings per common share	$	0.39	$	0.36

Share-based Compensation (Tables)

3 Months Ended

Mar. 31, 2017

Share-based Compensation

Schedule of status and changes in stock option plans

A summary of the status of and changes in the Company’s stock option awards for the three months ended March 31, 2017 follows:

			Weighted-		Weighted-
			Average		Average
			Exercise		Remaining Contractual
	Shares		Price		Term
Outstanding at beginning of year	209,382		$	15.13
Granted	—		—
Exercised	(13,902	)	11.05
Forfeited	—		—
Expired	—		—

Outstanding at end of period	195,480		$	15.42	1.52

Exercisable at end of period	195,480		$	15.42	1.52

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

A summary of the changes in the Company’s stock unit awards for the three months ended March 31, 2017, is as follows:

			Weighted-		Director		Weighted-
	Restricted		Average		Deferred		Average
	Stock		Grant Date		Stock		Grant Date
	Units		Fair Value		Units		Fair Value
Non-vested at beginning of year	552,610		$	18.45	35,038		$	21.04
Granted	11,404		30.69		—		—
Dividend equivalents earned	3,105		29.62		568		29.62
Vested	(27,917	)	14.60		(355	)	29.62
Forfeited	(5,214	)	20.10		—		—

Non-vested at end of period	533,988		$	18.96	35,251		$	21.09

Outstanding at end of period	533,988		$	18.96	94,027		$	18.60

Outstanding Commitments and Contingent Liabilities (Tables)

3 Months Ended

Mar. 31, 2017

Outstanding Commitments and Contingent Liabilities

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

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

	March 31, 2017		December 31, 2016
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	936,608	$	875,077
Standby letters of credit	20,086		20,145

Capital (Tables)

3 Months Ended

Mar. 31, 2017

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 March 31, 2017:

Total Capital (to Risk Weighted Assets)
Consolidated	$	613,980	14.87	%	$	382,037	9.25	%	$	413,013	10.00	%
Busey Bank	$	566,854	13.84	%	$	378,971	9.25	%	$	409,698	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	565,391	13.69	%	$	299,434	7.25	%	$	330,410	8.00	%
Busey Bank	$	518,265	12.65	%	$	297,032	7.25	%	$	327,759	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	491,391	11.90	%	$	237,483	5.75	%	$	268,458	6.50	%
Busey Bank	$	518,265	12.65	%	$	235,577	5.75	%	$	266,304	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated	$	565,391	10.92	%	$	207,159	4.00	%	N/A		N/A
Busey Bank	$	518,265	10.06	%	$	206,130	4.00	%	$	257,662	5.00	%

Operating Segments and Related Information (Tables)

3 Months Ended

Mar. 31, 2017

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
	March 31, 2017		December 31, 2016		March 31, 2017			December 31, 2016
Banking	$	82,128	$	82,128	$	5,386,689		$	5,369,669
Remittance Processing	8,992		8,992		32,758			32,379
Wealth Management	11,694		11,694		28,626			28,351
Other	—		—		(9,138		)	(5,229		)

Totals	$	102,814	$	102,814	$	5,438,935		$	5,425,170

	Three Months Ended March 31,
	2017			2016
Net interest income:
Banking	$	42,542		$	28,212
Remittance Processing	14			14
Wealth Management	56			66
Other	(599		)	(350		)

Total net interest income	$	42,013		$	27,942


Non-interest income:
Banking	$	10,454		$	7,790
Remittance Processing	3,024			3,040
Wealth Management	7,017			6,261
Other	(481		)	(245		)

Total non-interest income	$	20,014		$	16,846


Non-interest expense:
Banking	$	29,290		$	19,976
Remittance Processing	2,112			2,290
Wealth Management	3,964			4,105
Other	2,253			1,317

Total non-interest expense	$	37,619		$	27,688


Income before income taxes:
Banking	$	23,206		$	15,026
Remittance Processing	926			764
Wealth Management	3,109			2,222
Other	(3,333		)	(1,912		)

Total income before income taxes	$	23,908		$	16,100


Net income:
Banking	$	14,749		$	9,703
Remittance Processing	554			457
Wealth Management	1,848			1,322
Other	(1,981		)	(1,048		)

Total net income	$	15,170		$	10,434

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2017

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 March 31, 2017 are summarized as follows (dollars in thousands):

	March 31, 2017
Fair value recorded in other assets	$	2,799
Fair value recorded in other liabilities	3,791

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

	March 31, 2017
Gross gains	$	3,865
Gross losses	(3,791		)

Net gains	74

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):

	March 31, 2017
Notional amount	$	669
Fair value recorded in other assets	5

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

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
March 31, 2017
Securities available for sale
U.S. Treasury securities	$	—	$	61,423	$	—	$	61,423
Obligations of U.S. government corporations and agencies	—		76,854		—		76,854
Obligations of states and political subdivisions	—		152,871		—		152,871
Residential mortgage-backed securities	—		327,548		—		327,548
Corporate debt securities	—		31,155		—		31,155
Mutual funds and other equity securities	4,365		—		—		4,365
Loans
Loans held for sale	—		96,444		—		96,444
Derivative assets
Foreign currency forward contracts	—		5		—		5
Derivative financial assets	—		2,799		—		2,799
Derivative liabilities
Derivative financial liabilities	—		3,791		—		3,791

	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

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
March 31, 2017
Impaired loans	$	—	$	—	$	3,444	$	3,444
OREO(1)	—		—		—		—

December 31, 2016
Impaired loans	$	—	$	—	$	3,885	$	3,885
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)
March 31, 2017
Impaired loans	$	3,444	Appraisal of collateral	Appraisal adjustments	-19.7% to -100.0% (-37.1)%
OREO(1)	—		Appraisal of collateral	Appraisal adjustments	-100.0% (-100.0)%
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)%

(1)OREO fair value was less than one thousand dollars.

Schedule of estimated fair values of financial instruments

	March 31, 2017				December 31, 2016
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Level 1 inputs:
Cash and due from banks	$	439,511	$	439,511	$	166,097	$	166,097
Federal funds sold	—		—		609		609
Level 2 inputs:
Securities held to maturity	89,660		90,133		47,820		47,683
Accrued interest receivable	14,751		14,751		15,562		15,562
Level 3 inputs:
Portfolio loans, net	3,824,510		3,827,155		3,831,105		3,841,760
Mortgage servicing rights	2,830		9,155		3,074		7,803

Financial liabilities:
Level 2 inputs:
Deposits	$	4,485,543	$	4,474,773	$	4,374,298	$	4,368,891
Securities sold under agreements to repurchase	163,081		163,081		189,157		189,157
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	70,903		70,903		70,868		70,868
Accrued interest payable	893		893		987		987

Basis of Presentation (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Total consolidated assets	$ 5,438,935	$ 5,425,170
Net portfolio loans	3,824,510	3,831,105
Total deposits	4,485,543	$ 4,374,298
First Community Financial Partners, Inc
Total consolidated assets	1,300,000
Net portfolio loans	1,100,000
Total deposits	1,100,000
Mid Illinois Bancorp, Inc
Total consolidated assets	674,800
Net portfolio loans	369,300
Total deposits	$ 528,400

Acquisitions (Details) $ / shares in Units, $ in Thousands, shares in Millions					1 Months Ended	3 Months Ended
	Mar. 13, 2017 item	Feb. 06, 2017 item	Apr. 30, 2016 USD ($) item $ / shares	Apr. 29, 2016 USD ($) $ / shares shares	Apr. 30, 2016 USD ($) item	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)
Business Acquisition
Total consolidated assets						$ 5,438,935	$ 5,425,170
Net portfolio loans						3,824,510	3,831,105
Total deposits						4,485,543	4,374,298
Assets acquired:
Goodwill						102,814	102,814
Consideration paid:
Goodwill						102,814	102,814
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
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
PCI loan outstanding amount						1,100
Accretable yield expected to be recognized over the estimated period			300		300
Total revenues (net interest income plus other income)									$ 61,025
Net income									13,400
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
Pulaski \| Non-interest expense
Business Acquisition
Business acquisition expenses									$ 200
First Community Financial Partners, Inc
Business Acquisition
Number of branches \| item		9
Maximum period of measurement adjustments from the closing date of acquisition		1 year
First Community Financial Partners, Inc \| Non-interest expense
Business Acquisition
Business acquisition expenses						600
Mid Illinois Bancorp, Inc
Business Acquisition
Number of branches \| item	13
Maximum period of measurement adjustments from the closing date of acquisition	1 year
Mid Illinois Bancorp, Inc \| Non-interest expense
Business Acquisition
Business acquisition expenses						100
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
First Community Financial Partners, Inc
Business Acquisition
Total consolidated assets						1,300,000
Net portfolio loans						1,100,000
Total deposits						1,100,000
Mid Illinois Bancorp, Inc
Business Acquisition
Total consolidated assets						674,800
Net portfolio loans						369,300
Total deposits						$ 528,400

Securities - General Disclosures (Details) $ in Thousands	3 Months Ended		12 Months Ended
Securities - General Disclosures (Details) $ in Thousands	Mar. 31, 2017 USD ($) item	Mar. 31, 2016 USD ($)	Dec. 31, 2016 USD ($)
Available for sale
Amortized Cost	$ 654,440		$ 759,751
Gross Unrealized Gains	3,341		4,079
Gross Unrealized Losses	(3,565)		(4,019)
Fair Value	654,216		759,811
Held to maturity
Amortized Cost	89,660		47,820
Gross Unrealized Gains	621		145
Gross Unrealized Losses	(148)		(282)
Fair Value	90,133		47,683
Available for sale, Amortized Cost
Due in one year or less	97,523
Due after one year through five years	196,220
Due after five years through ten years	64,842
Due after ten years	291,815
Amortized Cost	650,400
Available for sale, Fair Value
Due in one year or less	97,695
Due after one year through five years	196,457
Due after five years through ten years	66,044
Due after ten years	289,655
Fair Value	649,851
Held to maturity, Amortized Cost
Due in one year or less	1,285
Due after one year through five years	20,126
Due after five years through ten years	22,249
Due after ten years	46,000
Amortized Cost	89,660		47,820
Held to maturity, Fair Value
Due in one year or less	1,287
Due after one year through five years	20,231
Due after five years through ten years	22,277
Due after ten years	46,338
Fair Value	90,133		47,683
Realized gains and losses related to sales of securities available for sale
Gross security gains	968	$ 1,074
Gross security (losses)	(111)	(7)
Net security gains	857	1,067
Tax provision related to net realized gains (losses)	300	$ 400
Carrying amount of investment securities pledged as collateral	500,600		547,200
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	310,315		322,685
Continuous unrealized losses existing greater than 12 months, gross	1,156		1,154
Total	311,471		323,839
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(3,561)		(4,011)
Continuous unrealized losses existing greater than 12 months, gross	(4)		(8)
Total	(3,565)		(4,019)
Held to maturity, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	10,729		26,943
Total	10,729		26,943
Held to maturity, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(148)		(282)
Total	$ (148)		(282)
Number of securities in unrealized loss position \| item	195
Securities in unrealized loss position as a percentage of aggregate carrying value of investments	1.14%
U.S. Treasury securities
Available for sale
Amortized Cost	$ 61,272		74,784
Gross Unrealized Gains	164		185
Gross Unrealized Losses	(13)		(25)
Fair Value	61,423		74,944
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	10,007		9,997
Total	10,007		9,997
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(13)		(25)
Total	(13)		(25)
Obligations of U.S. government corporations and agencies
Available for sale
Amortized Cost	77,246		79,577
Gross Unrealized Gains	30		46
Gross Unrealized Losses	(422)		(496)
Fair Value	76,854		79,127
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	61,253		46,209
Total	61,253		46,209
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(422)		(496)
Total	(422)		(496)
Obligations of states and political subdivisions
Available for sale
Amortized Cost	151,928		154,438
Gross Unrealized Gains	1,223		1,093
Gross Unrealized Losses	(280)		(593)
Fair Value	152,871		154,938
Held to maturity
Amortized Cost	43,069		44,333
Gross Unrealized Gains	268		122
Gross Unrealized Losses	(39)		(160)
Fair Value	43,298		44,295
Held to maturity, Amortized Cost
Amortized Cost	43,069		44,333
Held to maturity, Fair Value
Fair Value	43,298		44,295
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	48,103		64,832
Continuous unrealized losses existing greater than 12 months, gross	1,156		1,154
Total	49,259		65,986
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(276)		(585)
Continuous unrealized losses existing greater than 12 months, gross	(4)		(8)
Total	(280)		(593)
Held to maturity, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	8,344		24,558
Total	8,344		24,558
Held to maturity, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(39)		(160)
Total	(39)		(160)
Residential mortgage-backed securities
Available for sale
Amortized Cost	328,924		303,641
Gross Unrealized Gains	1,452		1,390
Gross Unrealized Losses	(2,828)		(2,782)
Fair Value	327,548		302,249
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	183,163		168,898
Total	183,163		168,898
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(2,828)		(2,782)
Total	(2,828)		(2,782)
Corporate debt securities
Available for sale
Amortized Cost	31,030		142,836
Gross Unrealized Gains	147		630
Gross Unrealized Losses	(22)		(123)
Fair Value	31,155		143,343
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	7,789		32,749
Total	7,789		32,749
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(22)		(123)
Total	(22)		(123)
Debt securities
Available for sale
Amortized Cost	650,400		755,276
Gross Unrealized Gains	3,016		3,344
Gross Unrealized Losses	(3,565)		(4,019)
Fair Value	649,851		754,601
Mutual funds and other equity securities
Available for sale
Amortized Cost	4,040		4,475
Gross Unrealized Gains	325		735
Fair Value	4,365		5,210
Commercial and residential mortgage-backed securities
Held to maturity
Amortized Cost	46,591
Gross Unrealized Gains	353
Gross Unrealized Losses	(109)
Fair Value	46,835
Held to maturity, Amortized Cost
Amortized Cost	46,591
Held to maturity, Fair Value
Fair Value	46,835
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	(109)
Total	$ (109)
Commercial mortgage-backed securities
Held to maturity
Amortized Cost			3,487
Gross Unrealized Gains			23
Gross Unrealized Losses			(122)
Fair Value			3,388
Held to maturity, Amortized Cost
Amortized Cost			3,487
Held to maturity, Fair Value
Fair Value			3,388
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	3 Months Ended	12 Months Ended
Securities - Obligations by State (Details) $ in Thousands	Mar. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($) item
Securities
Available for sale, fair value	$ 654,216	$ 759,811
Held to maturity, fair value	$ 90,133	$ 47,683
General obligation bonds
Securities
Number of issuers \| item	218	221
Amortized Cost	$ 160,353	$ 163,085
Fair Value	161,461	163,612
Average Exposure Per Issuer (Fair Value)	741	740
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%	98.40%
Minimum number of nationally recognized statistical rating organizations \| item	1	1
Percentage of underlying asset unrated	1.60%	1.60%
General obligation bonds \| Illinois
Securities
Number of issuers \| item	71	70
Amortized Cost	$ 59,502	$ 59,120
Fair Value	59,994	59,182
Average Exposure Per Issuer (Fair Value)	$ 845	$ 845
General obligation bonds \| Wisconsin
Securities
Number of issuers \| item	30	31
Amortized Cost	$ 20,381	$ 21,390
Fair Value	20,474	21,479
Average Exposure Per Issuer (Fair Value)	$ 682	$ 693
General obligation bonds \| Michigan
Securities
Number of issuers \| item	38	38
Amortized Cost	$ 23,196	$ 23,233
Fair Value	23,480	23,472
Average Exposure Per Issuer (Fair Value)	$ 618	$ 618
General obligation bonds \| Pennsylvania
Securities
Number of issuers \| item	10	10
Amortized Cost	$ 10,232	$ 10,242
Fair Value	10,254	10,235
Average Exposure Per Issuer (Fair Value)	$ 1,025	$ 1,023
General obligation bonds \| Texas
Securities
Number of issuers \| item	16	16
Amortized Cost	$ 10,175	$ 10,731
Fair Value	10,191	10,702
Average Exposure Per Issuer (Fair Value)	$ 637	$ 669
General obligation bonds \| Ohio
Securities
Number of issuers \| item	10	10
Amortized Cost	$ 10,986	$ 11,009
Fair Value	10,996	11,005
Average Exposure Per Issuer (Fair Value)	$ 1,100	$ 1,100
General obligation bonds \| Iowa
Securities
Number of issuers \| item	3	3
Amortized Cost	$ 5,332	$ 5,332
Fair Value	5,339	5,345
Average Exposure Per Issuer (Fair Value)	$ 1,780	$ 1,782
General obligation bonds \| Other
Securities
Number of issuers \| item	40	43
Amortized Cost	$ 20,549	$ 22,028
Fair Value	20,733	22,192
Average Exposure Per Issuer (Fair Value)	$ 518	$ 516
Revenue bonds
Securities
Number of issuers \| item	39	39
Amortized Cost	$ 34,644	$ 35,686
Fair Value	34,708	35,621
Average Exposure Per Issuer (Fair Value)	890	913
Amount of largest exposure to a single issuer	$ 3,600	$ 3,500
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	97.00%	97.10%
Percentage of bonds unrated	3.00%	2.90%
Minimum number of nationally recognized statistical rating organizations \| item	1	1
Revenue bonds \| Indiana
Securities
Number of issuers \| item	10	10
Amortized Cost	$ 10,198	$ 11,207
Fair Value	10,269	11,244
Average Exposure Per Issuer (Fair Value)	$ 1,026	$ 1,124
Revenue bonds \| Illinois
Securities
Number of issuers \| item	7	7
Amortized Cost	$ 7,312	$ 7,321
Fair Value	7,320	7,275
Average Exposure Per Issuer (Fair Value)	$ 1,046	$ 1,039
Revenue bonds \| Other
Securities
Number of issuers \| item	22	22
Amortized Cost	$ 17,134	$ 17,158
Fair Value	17,119	17,102
Average Exposure Per Issuer (Fair Value)	778	777
Obligations of states and political subdivisions
Securities
Available for sale, fair value	152,871	154,938
Held to maturity, fair value	$ 43,298	$ 44,295
Number of issuers \| item	257	260
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	$ 161,500	$ 163,600
Number of states in which investment is held \| item	27	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	$ 34,700	$ 35,600
Number of states in which investment is held \| item	16	16
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	3 Months Ended
Loans held for sale (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Loans held for sale
Loans held for sale	$ 96,444		$ 256,319
Premiums received on sales of mortgage loans, including fair value adjustments	12,151
Less direct origination costs	(10,387)
Less provisions to liability for loans sold	(25)
Mortgage servicing revenues	395
Mortgage revenue	$ 2,134	$ 880

Portfolio loans - Distributions of Loans (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017 USD ($) item mi	Dec. 31, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Loans
Portfolio loans	$ 3,872,952	$ 3,878,900
Less allowance for loan losses	48,442	47,795	$ 45,171	$ 47,487
Portfolio loans, net	3,824,510	3,831,105
Net deferred loan origination costs	2,600	2,500
Amount of loan reduction due to net accretable purchase accounting adjustments	$ 10,900	12,700
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
Commercial
Loans
Portfolio loans	$ 970,451	959,888
Less allowance for loan losses	13,260	13,303	13,323	13,115
Commercial real estate
Loans
Portfolio loans	1,659,077	1,654,164
Less allowance for loan losses	19,848	20,623	18,240	18,604
Real estate construction
Loans
Portfolio loans	169,665	182,078
Less allowance for loan losses	2,021	1,870	1,836	1,763
Retail real estate
Loans
Portfolio loans	1,060,965	1,069,060
Less allowance for loan losses	12,978	11,648	11,487	13,714
Retail other
Loans
Portfolio loans	12,794	13,710
Less allowance for loan losses	$ 335	$ 351	$ 285	$ 291

Portfolio loans - Risk Grading (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Pass and watch
Loans
Portfolio loans receivable	$ 3,720,000	$ 3,720,000
Special mention, substandard and doubtful
Loans
Portfolio loans receivable	163,000	165,500
Pass
Loans
Portfolio loans receivable	3,524,850	3,532,612
Watch
Loans
Portfolio loans receivable	192,481	185,954
Special Mention
Loans
Limit above which loans are annually reviewed	350
Portfolio loans receivable	71,210	78,554
Substandard
Loans
Portfolio loans receivable	71,211	65,478
Doubtful
Loans
Portfolio loans receivable	20,544	21,423
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	836,897	826,163
Commercial \| Watch
Loans
Limit above which loans are annually reviewed	1,000
Portfolio loans receivable	69,245	70,260
Commercial \| Special Mention
Loans
Portfolio loans receivable	25,455	26,951
Commercial \| Substandard
Loans
Portfolio loans receivable	29,371	26,941
Commercial \| Doubtful
Loans
Portfolio loans receivable	11,275	11,685
Commercial real estate
Loans
Limit where loans are processed through an expedited underwriting process	1,000
Commercial real estate \| Pass
Loans
Portfolio loans receivable	1,505,049	1,507,513
Commercial real estate \| Watch
Loans
Portfolio loans receivable	80,352	69,145
Commercial real estate \| Special Mention
Loans
Portfolio loans receivable	35,734	40,775
Commercial real estate \| Substandard
Loans
Portfolio loans receivable	36,364	35,385
Commercial real estate \| Doubtful
Loans
Portfolio loans receivable	4,912	5,154
Real estate construction \| Pass
Loans
Portfolio loans receivable	123,920	134,574
Real estate construction \| Watch
Loans
Portfolio loans receivable	36,583	39,936
Real estate construction \| Special Mention
Loans
Portfolio loans receivable	7,156	8,033
Real estate construction \| Substandard
Loans
Portfolio loans receivable	3,146	994
Real estate construction \| Doubtful
Loans
Portfolio loans receivable	34	47
Retail real estate \| Pass
Loans
Portfolio loans receivable	1,046,197	1,050,671
Retail real estate \| Watch
Loans
Portfolio loans receivable	6,287	6,586
Retail real estate \| Special Mention
Loans
Portfolio loans receivable	2,865	2,793
Retail real estate \| Substandard
Loans
Portfolio loans receivable	2,330	2,158
Retail real estate \| Doubtful
Loans
Portfolio loans receivable	4,275	4,484
Retail other \| Pass
Loans
Portfolio loans receivable	12,787	13,691
Retail other \| Watch
Loans
Portfolio loans receivable	14	27
Retail other \| Special Mention
Loans
Portfolio loans receivable		2
Retail other \| Doubtful
Loans
Portfolio loans receivable	$ 48	$ 53

Portfolio loans - Past due loans (Details) $ in Thousands	3 Months Ended
Portfolio loans - Past due loans (Details) $ in Thousands	Mar. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)
Loans past due, still accruing
Loans past due, still accruing	$ 311	$ 131
Non-accrual Loans	20,544	21,423
Gross interest income that would have been recorded if impaired loans had been current	$ 300
Number of Primary Loan Lending Areas \| item	5
Restructured loan included in the non-performing	90 days
Restructured loans:
Total loans	$ 10,833	11,937
30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	7,933	3,092
60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing	1,871	998
In compliance with modified terms
Restructured loans:
Total loans	9,935	10,593
30-89 days past due
Restructured loans:
Total loans	20	59
Included in non-performing loans
Restructured loans:
Total loans	878	1,285
Commercial
Loans past due, still accruing
Loans past due, still accruing		37
Non-accrual Loans	11,275	11,685
Commercial \| 30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	1,013	165
Commercial \| 60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing	32	363
Commercial real estate
Loans past due, still accruing
Loans past due, still accruing	194
Non-accrual Loans	4,912	5,154
Commercial real estate \| 30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	2,409	478
Commercial real estate \| 60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing	541	256
Real estate construction
Loans past due, still accruing
Non-accrual Loans	34	47
Real estate construction \| 30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	2,234
Retail real estate
Loans past due, still accruing
Loans past due, still accruing	117	94
Non-accrual Loans	4,275	4,484
Retail real estate \| 30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	2,251	2,394
Retail real estate \| 60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing	1,298	364
Retail other
Loans past due, still accruing
Non-accrual Loans	48	53
Retail other \| 30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	$ 26	55
Retail other \| 60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing		$ 15

Portfolio loans - Impaired Loans (Details) $ in Thousands	3 Months Ended		12 Months Ended
Portfolio loans - Impaired Loans (Details) $ in Thousands	Mar. 31, 2017 USD ($) contract	Mar. 31, 2016 USD ($) contract	Dec. 31, 2016 USD ($)
Loans
Number of contracts \| contract	0
Minimum days past due for TDR loans to be classified as non-performing	90 days
Performing loans classified as TDRs \| contract	0
Unpaid Contractual Principal Balance	$ 42,962		$ 43,646
Recorded Investment with No Allowance	29,455		29,365
Recorded Investment with Allowance	6,346		7,352
Total Recorded Investment	35,801		36,717
Related Allowance	2,902		3,467
Average Recorded Investment	34,365		33,132
Commercial
Loans
Unpaid Contractual Principal Balance	16,393		16,955
Recorded Investment with No Allowance	7,681		8,060
Recorded Investment with Allowance	3,757		3,835
Total Recorded Investment	11,438		11,895
Related Allowance	1,513		1,535
Average Recorded Investment	10,095		10,127
Commercial real estate
Loans
Unpaid Contractual Principal Balance	13,022		12,922
Recorded Investment with No Allowance	9,820		9,036
Recorded Investment with Allowance	2,205		3,118
Total Recorded Investment	12,025		12,154
Related Allowance	1,247		1,778
Average Recorded Investment	10,267		8,939
Real estate construction
Loans
Unpaid Contractual Principal Balance	494		518
Recorded Investment with No Allowance	470		483
Recorded Investment with Allowance			11
Total Recorded Investment	470		494
Related Allowance			11
Average Recorded Investment	716		793
Retail real estate
Loans
Unpaid Contractual Principal Balance	12,983		13,112
Recorded Investment with No Allowance	11,437		11,733
Recorded Investment with Allowance	382		385
Total Recorded Investment	11,819		12,118
Related Allowance	140		140
Average Recorded Investment	13,154		13,102
Retail other
Loans
Unpaid Contractual Principal Balance	70		139
Recorded Investment with No Allowance	47		53
Recorded Investment with Allowance	2		3
Total Recorded Investment	49		56
Related Allowance	2		3
Average Recorded Investment	$ 133		$ 171
Included in non-performing loans \| Retail real estate
Loans
Number of contracts \| contract		1
Recorded Investment		$ 100
Included in non-performing loans \| Retail other
Loans
Number of contracts \| contract		1
In compliance with modified terms \| Commercial real estate
Loans
Number of modifications for short-term principal payment relief \| contract		3
Recorded investment for short-term principal payment relief		$ 300
In compliance with modified terms \| Retail real estate
Loans
Number of modifications for short-term principal payment relief \| contract		2
Recorded investment for short-term principal payment relief		$ 300

Portfolio loans - Adverse Loan Grading (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017 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 \| $	$ 874.0
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	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Dec. 31, 2016
Changes in allowance for loan losses
Beginning balance	$ 47,795	$ 47,487
Provision for loan loss	500	1,000
Charged-off	(1,232)	(3,871)
Recoveries	1,379	555
Ending Balance	48,442	45,171
Amount allocated to:
Loans individually evaluated for impairment			$ 2,902	$ 3,467
Loans collectively evaluated for impairment			45,540	44,328
Ending Balance	47,795	47,487	48,442	47,795
Loans:
Loans individually evaluated for impairment			34,377	35,175
Loans collectively evaluated for impairment			3,837,151	3,842,183
Ending Balance			3,872,952	3,878,900
Purchased Credit Impaired Loans
Loans:
Loans collectively evaluated for impairment			1,424	1,542
Commercial
Changes in allowance for loan losses
Beginning balance	13,303	13,115
Provision for loan loss	(649)	3,411
Charged-off	(103)	(3,552)
Recoveries	709	349
Ending Balance	13,260	13,323
Amount allocated to:
Loans individually evaluated for impairment			1,513	1,535
Loans collectively evaluated for impairment			11,747	11,768
Ending Balance	13,303	13,115	13,260	13,303
Loans:
Loans individually evaluated for impairment			11,380	11,834
Loans collectively evaluated for impairment			959,013	947,993
Ending Balance			970,451	959,888
Commercial \| Purchased Credit Impaired Loans
Loans:
Loans collectively evaluated for impairment			58	61
Commercial real estate
Changes in allowance for loan losses
Beginning balance	20,623	18,604
Provision for loan loss	(220)	(379)
Charged-off	(588)
Recoveries	33	15
Ending Balance	19,848	18,240
Amount allocated to:
Loans individually evaluated for impairment			1,247	1,778
Loans collectively evaluated for impairment			18,601	18,845
Ending Balance	20,623	18,604	19,848	20,623
Loans:
Loans individually evaluated for impairment			11,056	11,147
Loans collectively evaluated for impairment			1,647,052	1,642,010
Ending Balance			1,659,077	1,654,164
Commercial real estate \| Purchased Credit Impaired Loans
Loans:
Loans collectively evaluated for impairment			969	1,007
Real estate construction
Changes in allowance for loan losses
Beginning balance	1,870	1,763
Provision for loan loss	134	11
Recoveries	17	62
Ending Balance	2,021	1,836
Amount allocated to:
Loans individually evaluated for impairment				11
Loans collectively evaluated for impairment			2,021	1,859
Ending Balance	1,870	1,763	2,021	1,870
Loans:
Loans individually evaluated for impairment			470	494
Loans collectively evaluated for impairment			169,195	181,584
Ending Balance			169,665	182,078
Retail real estate
Changes in allowance for loan losses
Beginning balance	11,648	13,714
Provision for loan loss	1,220	(2,102)
Charged-off	(451)	(198)
Recoveries	561	73
Ending Balance	12,978	11,487
Amount allocated to:
Loans individually evaluated for impairment			140	140
Loans collectively evaluated for impairment			12,838	11,508
Ending Balance	11,648	13,714	12,978	11,648
Loans:
Loans individually evaluated for impairment			11,422	11,644
Loans collectively evaluated for impairment			1,049,146	1,056,942
Ending Balance			1,060,965	1,069,060
Retail real estate \| Purchased Credit Impaired Loans
Loans:
Loans collectively evaluated for impairment			397	474
Retail other
Changes in allowance for loan losses
Beginning balance	351	291
Provision for loan loss	15	59
Charged-off	(90)	(121)
Recoveries	59	56
Ending Balance	335	285
Amount allocated to:
Loans individually evaluated for impairment			2	3
Loans collectively evaluated for impairment			333	348
Ending Balance	$ 351	$ 291	335	351
Loans:
Loans individually evaluated for impairment			49	56
Loans collectively evaluated for impairment			12,745	13,654
Ending Balance			$ 12,794	$ 13,710

OREO (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
OREO (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
OREO:
Other Real Estate, Beginning Balance	$ 2,518	$ 783	$ 783
Additions, transfers from loans	190		2,775
Proceeds from sales of OREO	(3,229)	$ (366)	(4,498)
Gain on sales of OREO	1,260		999
Valuation allowance for OREO			(29)
Other Real Estate, Ending Balance	739		2,518
Commercial real estate
Foreclosed Real Estate
Other real estate owned (OREO)	400		2,000
Residential real estate
Foreclosed Real Estate
Other real estate owned (OREO)	300		500
Residential real estate in the process of foreclosure	$ 600
Pulaski
OREO:
Additions, fair value from acquisition			$ 2,488

Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Deposits
Demand deposits, noninterest-bearing	$ 1,206,324	$ 1,134,133
Interest-bearing transaction deposits, saving deposits and money market deposits	2,516,741	2,453,965
Time deposits	762,478	786,200
Total deposits	4,485,543	4,374,298
Reciprocal brokered transaction deposits included in interest-bearing transaction deposits	31,100	36,900
Reciprocal brokered transaction deposits included in savings deposits	17,900	22,200
Time deposits minimum denomination of $100,000 or more	342,800	350,700
Time deposits minimum denomination of $250,000 or more	75,600	70,700
National deposits included in the balance of time deposits	0	100
Reciprocal brokered time deposits	88,500	93,400
Brokered deposits included in the balance of time deposits	5,000	5,000
Deposits
April 1, 2017 - March 31, 2018	520,408
April 1, 2018 - March 31, 2019	159,095
April 1, 2019 - March 31, 2020	43,441
April 1, 2020 - March 31, 2021	17,453
April 1, 2021 - March 31, 2022	21,120
Thereafter	961
Total	$ 762,478	$ 786,200

Borrowings - Maturity period (Details)	3 Months Ended
Borrowings - Maturity period (Details)	Mar. 31, 2017
Borrowings
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 - Credit agreement - Amendment No. 1 - USD ($) $ in Millions	Nov. 18, 2016	Mar. 31, 2017	Dec. 31, 2016
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	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Securities sold under agreements to repurchase
Balance at end of period	$ 163,081	$ 189,157
Weighted average interest rate at end of period (as a percent)	0.35%	0.30%
Maximum outstanding at any month end in year-to-date period	$ 170,763	$ 216,293
Average daily balance for the year-to-date period	$ 165,785	$ 181,474
Weighted average interest rate during period (as a percent)	0.30%	0.22%
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	$ 50,000	$ 236,700
Average daily balance for the year-to-date period	$ 20,278	$ 96,698
Weighted average interest rate during period	0.68%	0.53%
Credit agreement - Amendment No. 1
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) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Long-term debt
Long-term debt	$ 80,000	$ 80,000
FHLB advances
Long-term debt
Long-term debt	$ 80,000	$ 80,000
Weighted average rate (as a percent)	0.59%	0.41%
FHLB advances \| Minimum
Long-term debt
Notes payable original maturity term	19 months	19 months
Fixed coupon rate (as a percent)	0.50%	0.35%
FHLB advances \| Maximum
Long-term debt
Notes payable original maturity term	10 years	10 years
Fixed coupon rate (as a percent)	0.83%	0.54%

Junior Subordinated Debt Owed to Unconsolidated Trusts (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Junior subordinated debt owed to unconsolidated trusts
Junior subordinated debt owed to unconsolidated trusts	$ 70,903	$ 70,868
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	$ 70,900	$ 70,900
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

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net income per share calculations for basic and diluted methods
Net income	$ 15,170	$ 10,434
Shares:
Weighted average common shares outstanding	38,293,000	28,739,000
Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method (in shares)	461,000	190,000
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation	38,754,000	28,929,000
Basic earnings per common share (in dollars per share)	$ 0.40	$ 0.36
Diluted earnings per common share (in dollars per share)	$ 0.39	$ 0.36
Stock options
Anti-dilutive securities excluded from the calculation of common stock equivalents
Number of anti-dilutive securities (in shares)	10,850	10,850
Warrants
Anti-dilutive securities excluded from the calculation of common stock equivalents
Number of anti-dilutive securities (in shares)	191,278	191,278

Share-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Feb. 03, 2015
Share-based Compensation
Number of shares held in treasury	626,408			633,232
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
Stock option awards
Shares
Outstanding at beginning of year (in shares)	209,382
Exercised (in shares)	(13,902)
Outstanding at end of period (in shares)	195,480
Exercisable at end of period (in shares)	195,480
Weighted-Average Exercise Price
Outstanding at beginning of year (in dollars per share)	$ 15.13
Exercised (in dollars per share)	11.05
Outstanding at end of period (in dollars per share)	15.42
Exercisable at end of period (in dollars per share)	$ 15.42
Weighted-Average Remaining Contractual Term
Outstanding at end of period	1 year 6 months 7 days
Exercisable at end of period	1 year 6 months 7 days
Additional disclosures
Unrecognized stock option expense	$ 0
RSU
Share-based Compensation
Number of shares of common stock per award	1
Shares
Non-vested at beginning of year (in shares)	552,610
Granted (in shares)	11,404
Dividend equivalents earned (in shares)	3,105
Vested (in shares)	(27,917)
Forfeited (in shares)	(5,214)
Non-vested at end of year (in shares)	533,988
Outstanding at end of year (in shares)	533,988
Weighted-Average Grant Date Fair Value
Non-vested at beginning of year (in dollars per share)	$ 18.45
Granted (in dollars per share)	30.69
Dividend equivalents earned (in dollars per share)	29.62
Vested (in dollars per share)	14.60
Forfeited (in dollars per share)	20.10
Non-vested at end of year (in dollars per share)	18.96
Outstanding at end of year (in dollars per share)	$ 18.96
Additional disclosures
Compensation expense recognized	$ 500	$ 400
Amount of compensation cost to be recognized	$ 5,500
Period over which cost will be recognized	3 years 6 months
RSU \| Minimum
Share-based Compensation
Requisite service periods	1 year
RSU \| Maximum
Share-based Compensation
Requisite service periods	5 years
DSUs
Shares
Non-vested at beginning of year (in shares)	35,038
Dividend equivalents earned (in shares)	568
Vested (in shares)	(355)
Non-vested at end of year (in shares)	35,251
Outstanding at end of year (in shares)	94,027
Weighted-Average Grant Date Fair Value
Non-vested at beginning of year (in dollars per share)	$ 21.04
Dividend equivalents earned (in dollars per share)	29.62
Vested (in dollars per share)	29.62
Non-vested at end of year (in dollars per share)	21.09
Outstanding at end of year (in dollars per share)	$ 18.60
DSUs \| Minimum
Share-based Compensation
Vesting period	12 months
DSUs \| Directors
Share-based Compensation
Number of shares of common stock per award	1
Settlement period	30 days

Outstanding Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Credit Commitments and Contingencies
Liabilities for potential obligations under guarantees	$ 0	$ 0
Maximum
Credit Commitments and Contingencies
Term for guarantee	1 year
Commitments to extend credit
Credit Commitments and Contingencies
Financial instruments whose contract amounts represent credit risk	$ 936,608	875,077
Standby letters of credit
Credit Commitments and Contingencies
Financial instruments whose contract amounts represent credit risk	$ 20,086	$ 20,145

Capital - (Details) - USD ($) $ in Thousands		3 Months Ended
Capital - (Details) - USD ($) $ in Thousands	Oct. 21, 2016	Mar. 31, 2017	Jan. 01, 2019	Jan. 01, 2017	Jul. 31, 2013
Total Capital (to Risk Weighted Assets), Amount
Actual		$ 613,980
Minimum Capital Requirement with Capital Buffer		382,037
Minimum To Be Well Capitalized		$ 413,013
Total Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)		14.87%
Minimum Capital Requirement with Capital Buffer (as a percent)		9.25%
Minimum To Be Well Capitalized (as a percent)		10.00%
Tier 1 Capital (to Risk Weighted Assets), Amount
Actual		$ 565,391
Minimum Capital Requirement with Capital Buffer		299,434
Minimum To Be Well Capitalized		$ 330,410
Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)		13.69%
Minimum Capital Requirement with Capital Buffer (as a percent)		7.25%
Minimum To Be Well Capitalized (as a percent)		8.00%
Common Equity Tier 1 Capital (to Risk Weighted Assets), Amount
Actual		$ 491,391
Minimum Capital Requirement with Capital Buffer		237,483
Minimum To Be Well Capitalized		$ 268,458
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)		11.90%
Minimum Capital Requirement with Capital Buffer (as a percent)		5.75%
Minimum To Be Well Capitalized (as a percent)		6.50%
Tier 1 Capital (to Average Assets), Amount
Actual		$ 565,391
Minimum Capital Requirement with Capital Buffer		$ 207,159
Tier 1 Capital (to Average Assets), Ratio
Actual (as a percent)		10.92%
Minimum Capital Requirement with Capital Buffer (as a percent)		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				1.25%
Capital buffer requirement period		3 years
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		$ 566,854
Minimum Capital Requirement with Capital Buffer		378,971
Minimum To Be Well Capitalized		$ 409,698
Total Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)		13.84%
Minimum Capital Requirement with Capital Buffer (as a percent)		9.25%
Minimum To Be Well Capitalized (as a percent)		10.00%
Tier 1 Capital (to Risk Weighted Assets), Amount
Actual		$ 518,265
Minimum Capital Requirement with Capital Buffer		297,032
Minimum To Be Well Capitalized		$ 327,759
Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)		12.65%
Minimum Capital Requirement with Capital Buffer (as a percent)		7.25%
Minimum To Be Well Capitalized (as a percent)		8.00%
Common Equity Tier 1 Capital (to Risk Weighted Assets), Amount
Actual		$ 518,265
Minimum Capital Requirement with Capital Buffer		235,577
Minimum To Be Well Capitalized		$ 266,304
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)		12.65%
Minimum Capital Requirement with Capital Buffer (as a percent)		5.75%
Minimum To Be Well Capitalized (as a percent)		6.50%
Tier 1 Capital (to Average Assets), Amount
Actual		$ 518,265
Minimum Capital Requirement with Capital Buffer		206,130
Minimum To Be Well Capitalized		$ 257,662
Tier 1 Capital (to Average Assets), Ratio
Actual (as a percent)		10.06%
Minimum Capital Requirement with Capital Buffer (as a percent)		4.00%
Minimum To Be Well Capitalized (as a percent)		5.00%

Operating Segments and Related Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017 USD ($) segment	Mar. 31, 2016 USD ($)	Dec. 31, 2016 USD ($)
Operating Segments and Related Information
Number of reportable segments \| segment	3
Goodwill	$ 102,814		$ 102,814
Total Assets	5,438,935		5,425,170
Net interest income:	42,013	$ 27,942
Non-interest income:	20,014	16,846
Non-interest expense:	37,619	27,688
Income before income taxes:	23,908	16,100
Net income:	15,170	10,434
Operating segments \| Banking
Operating Segments and Related Information
Goodwill	82,128		82,128
Total Assets	5,386,689		5,369,669
Net interest income:	42,542	28,212
Non-interest income:	10,454	7,790
Non-interest expense:	29,290	19,976
Income before income taxes:	23,206	15,026
Net income:	14,749	9,703
Operating segments \| Remittance Processing
Operating Segments and Related Information
Goodwill	8,992		8,992
Total Assets	32,758		32,379
Net interest income:	14	14
Non-interest income:	3,024	3,040
Non-interest expense:	2,112	2,290
Income before income taxes:	926	764
Net income:	554	457
Operating segments \| Wealth Management
Operating Segments and Related Information
Goodwill	11,694		11,694
Total Assets	28,626		28,351
Net interest income:	56	66
Non-interest income:	7,017	6,261
Non-interest expense:	3,964	4,105
Income before income taxes:	3,109	2,222
Net income:	1,848	1,322
Other
Operating Segments and Related Information
Total Assets	(9,138)		$ (5,229)
Net interest income:	(599)	(350)
Non-interest income:	(481)	(245)
Non-interest expense:	2,253	1,317
Income before income taxes:	(3,333)	(1,912)
Net income:	$ (1,981)	$ (1,048)

Derivative Financial Instruments (Details) $ in Thousands	3 Months Ended
Derivative Financial Instruments (Details) $ in Thousands	Mar. 31, 2017 USD ($)
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Net gains	$ 74
Non-interest income
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Gross gains	3,865
Non-interest expense
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Gross losses	(3,791)
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
Fair value recorded in other assets	2,799
Other liabilities
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other liabilities	3,791
Interest Rate Lock Commitments
Derivative Financial Instruments
Aggregate notional amount	217,400
Forward Sales Commitments
Derivative Financial Instruments
Aggregate notional amount	306,200
Foreign currency forward contracts
Derivative Financial Instruments
Aggregate notional amount	669
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	$ 5

Fair Value Measurements - General Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Financial assets and financial liabilities measured at fair value
Transfers between levels of fair value hierarchy	$ 0
Securities available for sale	654,216	$ 759,811
Loans held for sale	96,444	256,319
U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	61,423	74,944
Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Securities available for sale	76,854	79,127
Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Securities available for sale	152,871	154,938
Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	327,548	302,249
Corporate debt securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	31,155	143,343
Mutual funds and other equity securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	4,365	5,210
Recurring basis
Financial assets and financial liabilities measured at fair value
Loans held for sale	96,444	256,319
Recurring basis \| Foreign currency forward contracts
Financial assets and financial liabilities measured at fair value
Fair value recorded in other assets	5
Fair value recorded in other liabilities		7
Recurring basis \| Derivative financial assets
Financial assets and financial liabilities measured at fair value
Fair value recorded in other assets	2,799	6,403
Recurring basis \| Derivative financial liabilities
Financial assets and financial liabilities measured at fair value
Fair value recorded in other liabilities	3,791	3,098
Recurring basis \| U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	61,423	74,944
Recurring basis \| Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Securities available for sale	76,854	79,127
Recurring basis \| Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Securities available for sale	152,871	154,938
Recurring basis \| Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	327,548	302,249
Recurring basis \| Corporate debt securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	31,155	143,343
Recurring basis \| Mutual funds and other equity securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	4,365	5,210
Recurring basis \| Level 1 \| Mutual funds and other equity securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	4,365	5,210
Recurring basis \| Level 2
Financial assets and financial liabilities measured at fair value
Loans held for sale	96,444	256,319
Recurring basis \| Level 2 \| Foreign currency forward contracts
Financial assets and financial liabilities measured at fair value
Fair value recorded in other assets	5
Fair value recorded in other liabilities		7
Recurring basis \| Level 2 \| Derivative financial assets
Financial assets and financial liabilities measured at fair value
Fair value recorded in other assets	2,799	6,403
Recurring basis \| Level 2 \| Derivative financial liabilities
Financial assets and financial liabilities measured at fair value
Fair value recorded in other liabilities	3,791	3,098
Recurring basis \| Level 2 \| U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	61,423	74,944
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	76,854	79,127
Recurring basis \| Level 2 \| Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Securities available for sale	152,871	154,938
Recurring basis \| Level 2 \| Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	327,548	302,249
Recurring basis \| Level 2 \| Corporate debt securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	$ 31,155	$ 143,343

Fair Value Measurements - Additional Quantitative Information (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Quantitative Information about Level 3 Fair Value Measurements
Impaired loans	$ 35,801	$ 36,717
Non-recurring basis
Quantitative Information about Level 3 Fair Value Measurements
Impaired loans	3,444	3,885
Non-recurring basis \| Level 3
Quantitative Information about Level 3 Fair Value Measurements
Impaired loans	3,444	3,885
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Impaired loans
Quantitative Information about Level 3 Fair Value Measurements
Impaired loans	$ 3,444	$ 3,885
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Impaired loans \| Minimum
Quantitative Information about Level 3 Fair Value Measurements
Appraisal adjustments (as a percent)	(19.70%)	(19.20%)
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)	(37.10%)	(38.40%)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO
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	Mar. 31, 2017	Dec. 31, 2016
Financial assets:
Cash and due from banks	$ 439,511	$ 166,097
Federal funds sold		609
Securities held to maturity	90,133	47,683
Portfolio loans, net	3,824,510	3,831,105
Financial liabilities:
Short-term borrowings		75,000
Junior subordinated debt owed to unconsolidated trusts	70,903	70,868
Level 1 \| Carrying Amount
Financial assets:
Cash and due from banks	439,511	166,097
Federal funds sold		609
Level 1 \| Fair Value
Financial assets:
Cash and due from banks	439,511	166,097
Federal funds sold		609
Level 2 \| Carrying Amount
Financial assets:
Securities held to maturity	89,660	47,820
Accrued interest receivable	14,751	15,562
Financial liabilities:
Deposits	4,485,543	4,374,298
Securities sold under agreements to repurchase	163,081	189,157
Short-term borrowings		75,000
Long-term debt	80,000	80,000
Junior subordinated debt owed to unconsolidated trusts	70,903	70,868
Accrued interest payable	893	987
Level 2 \| Fair Value
Financial assets:
Securities held to maturity	90,133	47,683
Accrued interest receivable	14,751	15,562
Financial liabilities:
Deposits	4,474,773	4,368,891
Securities sold under agreements to repurchase	163,081	189,157
Short-term borrowings		75,000
Long-term debt	80,000	80,000
Junior subordinated debt owed to unconsolidated trusts	70,903	70,868
Accrued interest payable	893	987
Level 3 \| Carrying Amount
Financial assets:
Portfolio loans, net	3,824,510	3,831,105
Mortgage servicing rights	2,830	3,074
Level 3 \| Fair Value
Financial assets:
Portfolio loans, net	3,827,155	3,841,760
Mortgage servicing rights	$ 9,155	$ 7,803

Liability for Loans Sold (Details) $ in Millions	3 Months Ended
Liability for Loans Sold (Details) $ in Millions	Mar. 31, 2017 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	$ 2.1