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Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2018	Feb. 27, 2019	Jun. 30, 2018
Document and Entity Information
Entity Registrant Name	FIRST BUSEY CORP /NV/
Entity Central Index Key	0000314489
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1.4
Entity Common Stock, Shares Outstanding		55,600,184
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 128,838	$ 118,383
Interest-bearing deposits	111,135	229,250
Federal funds sold		5,639
Total cash and cash equivalents	239,973	353,272
Securities available for sale	697,685	872,682
Securities held to maturity (fair value 2018 $603,360; 2017 $441,052)	608,660	443,550
Securities equity investments	6,169	5,378
Loans held for sale	25,895	94,848
Portfolio loans (net of allowance for loan losses 2018 $50,648; 2017 $53,582)	5,517,780	5,465,918
Premises and equipment, net	117,672	116,913
Goodwill	267,685	269,346
Other intangible assets, net	32,873	38,727
Cash surrender value of bank owned life insurance	128,491	126,737
Deferred tax asset, net	11,431	17,296
Other assets	48,043	55,973
Total assets	7,702,357	7,860,640
Deposits:
Noninterest-bearing	1,464,700	1,597,421
Interest-bearing	4,784,621	4,528,544
Total deposits	6,249,321	6,125,965
Securities sold under agreements to repurchase	185,796	304,566
Short-term borrowings		220,000
Long-term debt	50,000	50,000
Senior notes, net of unamortized issuance costs	39,539	39,404
Subordinated notes, net of unamortized issuance costs	59,147	64,715
Junior subordinated debt owed to unconsolidated trusts	71,155	71,008
Other liabilities	52,435	49,979
Total liabilities	6,707,393	6,925,637
Commitments and contingencies (See Note 18)
Stockholders' Equity
Common stock, $.001 par value, authorized 66,666,667 shares; shares issued 49,185,581	49	49
Additional paid-in capital	1,080,084	1,084,889
Accumulated deficit	(72,167)	(132,122)
Accumulated other comprehensive loss	(6,812)	(2,810)
Total stockholders' equity before treasury stock	1,001,154	950,006
Treasury stock, at cost (2018 310,745 shares; 2017 500,638 shares)	(6,190)	(15,003)
Total stockholders’ equity	994,964	935,003
Total liabilities and stockholders’ equity	$ 7,702,357	$ 7,860,640
Common shares outstanding at period end	48,874,836	48,684,943

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED BALANCE SHEETS
Held to maturity, fair value	$ 603,360	$ 441,052
Portfolio Loans, allowance for loan losses (in dollars)	$ 50,648	$ 53,582
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	49,185,581	49,185,581
Common stock shares held in treasury	310,745	500,638

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest income:
Interest and fees on loans	$ 251,249	$ 202,643	$ 147,816
Interest and dividends on investment securities:
Taxable interest income	30,086	17,803	13,987
Non-taxable interest income	4,698	3,856	3,086
Total interest income	286,033	224,302	164,889
Interest expense:
Deposits	32,601	12,932	7,065
Federal funds purchased and securities sold under agreements to repurchase	1,626	978	393
Short-term borrowings	1,536	1,096	641
Long-term debt	906	550	220
Senior notes	1,598	962
Subordinated notes	3,110	1,892
Junior subordinated debt owed to unconsolidated trusts	3,250	2,526	1,910
Total interest expense	44,627	20,936	10,229
Net interest income	241,406	203,366	154,660
Provision for loan losses	4,429	5,303	5,550
Net interest income after provision for loan losses	236,977	198,063	149,110
Non-interest income:
Mortgage revenue	5,545	11,140	11,952
Security gains, net	331	1,143	1,232
Other income	9,919	7,886	4,336
Total non-interest income	89,993	84,474	75,169
Non-interest expense:
Salaries, wages and employee benefits	107,844	95,633	78,397
Net occupancy expense of premises	14,803	13,830	11,633
Furniture and equipment expenses	7,233	7,089	6,591
Data processing	16,383	16,716	18,229
Amortization of intangible assets	5,854	5,245	4,438
Other expense	40,926	35,913	28,574
Total non-interest expense	193,043	174,426	147,862
Income before income taxes	133,927	108,111	76,417
Income taxes	34,999	45,385	26,723
Net income	$ 98,928	$ 62,726	$ 49,694
Basic earnings per common share (in dollars per share)	$ 2.02	$ 1.47	$ 1.42
Diluted earnings per common share (in dollars per share)	$ 2.01	$ 1.45	$ 1.40
Trust fees
Non-interest income:
Non-interest income	$ 27,184	$ 23,665	$ 20,302
Commissions and brokers fees, net
Non-interest income:
Non-interest income	3,790	3,372	2,839
Remittance processing
Non-interest income:
Non-interest income	14,345	11,427	11,255
Fees for customer services
Non-interest income:
Non-interest income	$ 28,879	$ 25,841	$ 23,253

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 98,928	$ 62,726	$ 49,694
Unrealized net losses on securities:
Unrealized net holding losses arising during period	(4,420)	(3,694)	(2,611)
Reclassification adjustment for gains included in net income	(331)	(1,143)	(1,232)
Other comprehensive loss, before tax	(4,751)	(4,837)	(3,843)
Income tax benefit related to items of other comprehensive income	(1,354)	(1,991)	(1,539)
Other comprehensive loss, net of tax	(3,397)	(2,846)	(2,304)
Comprehensive income	$ 95,531	$ 59,880	$ 47,390

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Pulaski Common Stock	Pulaski Additional Paid-in Capital	Pulaski	First Community Common Stock	First Community Additional Paid-in Capital	First Community	Mid Illinois Bancorp, Inc. Common Stock	Mid Illinois Bancorp, Inc. Additional Paid-in Capital	Mid Illinois Bancorp, Inc.	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												49,694			49,694
Other comprehensive loss													(2,304)		(2,304)
Issuance of 19,442, 16,842 and 14,749 shares of treasury stock for employee stock purchase plan for the years 2018, 2017 and 2016, respectively											(616)			929	313
Net issuance of 104,637, 79,459 and 43,396 shares of treasury stock for restricted stock unit vesting and related tax benefit for the years 2018, 2017 and 2016, respectively											(3,477)			2,668	(809)
Net issuance of 65,814, 64,941 and 41,771 shares of treasury stock for stock options exercised, net of shares redeemed and related tax for the years 2018, 2017 and 2016, respectively											(2,587)			2,591	4
Stock issued for acquisition, net of stock issuance costs	$ 10	$ 195,188	$ 195,198
Cash dividends common stock at $0.80, $0.72 and $0.68 per share for the years 2018, 2017 and 2016, respectively												(22,748)			(22,748)
Stock dividend equivalents restricted stock units at $0.80, $0.72 and $0.68 per share for the years 2018, 2017 and 2016, respectively											352	(352)
Stock dividend accrued on restricted stock awards assumed with the Pulaski at $0.54 and $0.34 per share for the years 2017 and 2016, respectively												(18)			(18)
Return of 28,648 and 261 equity trust shares for the years 2017 and 2016, respectively														(5)	(5)
Stock based employee compensation											1,803				1,803
Balance at Dec. 31, 2016										39	781,716	(163,689)	36	(23,788)	594,314
Increase (decrease) in shareholders' equity
Net income												62,726			62,726
Other comprehensive loss													(2,846)		(2,846)
Issuance of 19,442, 16,842 and 14,749 shares of treasury stock for employee stock purchase plan for the years 2018, 2017 and 2016, respectively											(540)			1,016	476
Net issuance of 104,637, 79,459 and 43,396 shares of treasury stock for restricted stock unit vesting and related tax benefit for the years 2018, 2017 and 2016, respectively											(5,521)			4,864	(657)
Net issuance of 65,814, 64,941 and 41,771 shares of treasury stock for stock options exercised, net of shares redeemed and related tax for the years 2018, 2017 and 2016, respectively											(3,139)			3,765	626
Stock issued for acquisition, net of stock issuance costs				$ 7	$ 211,575	$ 211,582	$ 3	$ 97,594	$ 97,597
Cash dividends common stock at $0.80, $0.72 and $0.68 per share for the years 2018, 2017 and 2016, respectively												(30,697)			(30,697)
Stock dividend equivalents restricted stock units at $0.80, $0.72 and $0.68 per share for the years 2018, 2017 and 2016, respectively											452	(452)
Stock dividend accrued on restricted stock awards assumed with the Pulaski at $0.54 and $0.34 per share for the years 2017 and 2016, respectively												(10)			(10)
Return of 28,648 and 261 equity trust shares for the years 2017 and 2016, respectively														(860)	(860)
Stock based employee compensation											2,752				2,752
Balance at Dec. 31, 2017										49	1,084,889	(132,122)	(2,810)	(15,003)	935,003
Increase (decrease) in shareholders' equity
Net income												98,928			98,928
Other comprehensive loss													(3,397)		(3,397)
Tax Cuts and Jobs Act (“TCJA”) of 2017 reclassification												605	(605)
Issuance of 19,442, 16,842 and 14,749 shares of treasury stock for employee stock purchase plan for the years 2018, 2017 and 2016, respectively											(275)			811	536
Net issuance of 104,637, 79,459 and 43,396 shares of treasury stock for restricted stock unit vesting and related tax benefit for the years 2018, 2017 and 2016, respectively											(5,930)			4,924	(1,006)
Net issuance of 65,814, 64,941 and 41,771 shares of treasury stock for stock options exercised, net of shares redeemed and related tax for the years 2018, 2017 and 2016, respectively											(2,889)			3,078	189
Cash dividends common stock at $0.80, $0.72 and $0.68 per share for the years 2018, 2017 and 2016, respectively												(39,010)			(39,010)
Stock dividend equivalents restricted stock units at $0.80, $0.72 and $0.68 per share for the years 2018, 2017 and 2016, respectively											568	(568)
Stock based employee compensation											3,721				3,721
Balance at Dec. 31, 2018										$ 49	$ 1,080,084	$ (72,167)	$ (6,812)	$ (6,190)	$ 994,964

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Issuance of shares of treasury stock for employee stock purchase plan	19,442	16,842	14,749
Issuance of shares of treasury stock for restricted stock unit vesting and related tax benefit	104,637	79,459	43,396
Issuance of shares of treasury stock for stock options exercised net of shares redeemed and related tax	65,814	64,941	41,771
Cash dividends, common stock (in dollars per share)	$ 0.80	$ 0.72	$ 0.68
Stock dividends, restricted stock units (in dollars per share)	$ 0.80	0.72	0.68
Stock dividends, accrued restricted stock awards (in dollars per share)		$ 0.54	$ 0.34
Return of equity trust shares		28,648	261

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash Flows from Operating Activities
Net income	$ 98,928	$ 62,726	$ 49,694
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based and non-cash compensation	3,721	2,752	1,803
Depreciation	9,556	8,577	7,295
Amortization of intangible assets	5,854	5,245	4,438
Premises and equipment impairment	817	99	756
Provision for loan losses	4,429	5,303	5,550
Provision for deferred income taxes	7,219	13,907	2,953
Amortization of security premiums and discounts, net	8,412	6,711	6,877
Accretion of premiums and discounts on time deposits and trust preferred securities, net	(97)	(226)	(669)
Accretion of premiums and discounts on portfolio loans, net	(10,452)	(12,205)	(7,429)
Security loss (gain), net	(331)	(1,143)	(1,232)
Change in equity securities, net	4,618
Gain on sales of mortgage loans, net of origination costs	(10,446)	(45,443)	(28,299)
Mortgage loans originated for sale	(425,322)	(1,487,726)	(1,822,027)
Proceeds from sales of mortgage loans	504,721	1,693,632	1,767,220
Net losses (gains) on disposition of premises and equipment	162	(327)	251
(Decrease) increase in deferred compensation	(3,780)	(757)	142
Increase in cash surrender value of bank owned life insurance	(1,754)	(1,997)	(1,522)
Change in assets and liabilities:
Decrease (increase) in other assets	4,097	8,423	(407)
Increase (decrease) in other liabilities	2,195	(4,193)	(6,288)
Net cash provided by (used in) operating activities	202,547	253,358	(20,894)
Cash Flows from Investing Activities
Proceeds from sales of securities classified available for sale	122,584	139,765	52,587
Proceeds from sales of securities classified equity	920
Proceeds from maturities of securities classified available for sale	163,582	193,294	241,304
Proceeds from sales of securities classified held to maturity			399
Proceeds from maturities of securities classified held to maturity	50,560	11,268	3,811
Purchase of securities classified available for sale	(124,234)	(141,685)	(180,447)
Purchase of securities classified held to maturity	(217,766)	(352,679)	(2,103)
Net increase in loans	(49,864)	(169,150)	(1,294)
Proceeds from disposition of premises and equipment	324	2,224	2,485
Proceeds from sale of OREO properties	5,298	5,024	4,498
Purchases of premises and equipment	(11,618)	(14,980)	(8,991)
Proceeds (purchases) from the redemption of FHLB stock, net	4,864	6,090	11,919
Net cash received in acquisitions		26,979	25,575
Net cash (used in) provided by investing activities	(55,350)	(293,850)	149,743
Cash Flows from Financing Activities
Net increase (decrease) in certificates of deposit	161,085	100,600	(173,385)
Net (decrease) increase in demand deposits, money market and savings accounts	(37,485)	11,188	31,322
Net (decrease) increase in federal funds purchased and securities sold under agreements to repurchase	(118,770)	28,898	(6,655)
Proceeds from short-term borrowings, net	(220,000)	60,300	(104,000)
Repayment of subordinated debt	(5,500)
Net proceeds from issuance of senior debt		39,326
Net proceeds from issuance of subordinated debt		49,186
Cash dividends paid	(39,010)	(30,707)	(22,748)
Repayments of long-term debt		(30,000)	(4,906)
Value of shares surrendered upon vesting to satisfy tax withholding obligations of stock-based compensation	(1,208)	(2,274)	(809)
Proceeds from stock options exercised	392	906	4
Common stock issuance costs		(365)	(246)
Net cash (used in) provided by financing activities	(260,496)	227,058	(281,423)
Net (decrease) increase in cash and cash equivalents	(113,299)	186,566	(152,574)
Cash and cash equivalents, beginning of period	353,272	166,706	319,280
Cash and cash equivalents, ending of period	239,973	353,272	166,706
Cash payments for:
Interest	40,639	19,342	9,674
Income taxes	23,183	26,419	20,186
Non-cash Investing and Financing Activities:
Other real estate acquired in settlement of loans	4,025	$ 1,417	$ 2,775
Other assets transferred to equity investments	$ 4,000

Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Significant Accounting Policies

Significant Accounting Policies

FIRST BUSEY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Significant Accounting Policies

Nature of operations

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

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

Principles of consolidation

The Consolidated Financial Statements include the accounts of the Company and its subsidiaries which includes Busey Bank and its wholly-owned subsidiaries FirsTech, Inc., Pulaski Service Corporation, Mid Illinois Insurance Services Inc. and Busey Capital Management, Inc. The Company and its subsidiaries maintain various LLCs that hold specific assets for risk mitigation purposes and are consolidated into these Financial Statements. All intercompany balances and transactions have been eliminated in consolidation.

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

Use of estimates

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

Comprehensive income (loss)

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

Trust assets

Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit at the Company’s bank subsidiaries, are not assets of the Company and, accordingly, are not included in the accompanying Consolidated Financial Statements. The Company had assets under care of $7.1 billion and $6.0 billion at December 31, 2018 and 2017, respectively.

Cash and cash equivalents

Cash and cash equivalents include cash and due from banks, interest-bearing deposits with banks and federal funds sold. Cash and cash equivalents have original maturities of three months or less. Accordingly, the carrying amount of such instruments is considered a reasonable estimate of fair value. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions and repurchase agreements.

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

Securities

Securities classified as held to maturity are those debt securities that the Company has the intent and ability to hold to maturity and are carried at amortized cost.

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

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

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

With the adoption of Accounting Standards Update (“ASU”) 2016-01, “"Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," equity securities are carried at fair value with changes in fair value recognized in net income.

Loans held for sale

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

Loan servicing

Servicing assets are recognized when servicing rights are acquired or retained through the sale of mortgage and government-guaranteed commercial loans. Servicing rights are initially recorded at fair value which is determined using a valuation model that calculates the present value of estimated future net servicing income. Capitalized servicing rights are reported in other assets and are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. The amortization of mortgage servicing rights is included in mortgage revenue. The amortization of government-guaranteed commercial loans is included in other income.

Servicing rights are periodically evaluated for impairment based on the fair value of those rights as compared to book value. Fair values are estimated using discounted cash flows based on current expected future prepayment rates. For purposes of measuring impairment, the rights are stratified by one or more predominant risk characteristics of the underlying loans. The Company stratifies its capitalized servicing rights based on the type of the underlying loans. The amount of impairment allowance recognized is the amount, if any, by which the amortized cost of the rights for each stratum exceeds its fair value. If the Company later determines that all or a portion of the impairment no longer exists for a particular group of loans, a reduction of the allowance may be recorded as an increase to income. The Company had no impairment recorded at December 31, 2018 or 2017.

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

Portfolio loans

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

Loan origination fees, net of certain direct loan origination costs, are deferred and the net amount is amortized as an adjustment of the related loan’s yield. The Company amortizes the net amount over the contractual life of the related loan. However, for long-term, fixed-rate residential mortgages, the Company has anticipated prepayments and assumes an estimated economic life for the amortization period.

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

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

Troubled debt restructurings

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

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

All TDRs are 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 a charge to the allowance for loan losses in the period of the modification and in periods subsequent to the modification.

Purchased credit-impaired loans

The Company holds loans acquired through business combinations, some of which have shown evidence of credit deterioration since origination. These purchased credit-impaired (“PCI”) loans are initially recorded at fair value on the acquisition date. Accordingly, the seller’s allowance for loan losses is not carried over or recorded as of the acquisition date.

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

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

Allowance for loan losses

The allowance for loan losses 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 calculation involves a high degree of estimation that management attempts to mitigate through the use of objective historical data where available. Loan losses are charged against the allowance for loan losses when management believes the uncollectibility of the loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Overall, the Company believes the allowance methodology is consistent with prior periods and the balance was adequate to cover the estimated losses in the Company’s loan portfolio at December 31, 2018 and 2017.

The allowance for loan losses is calculated by segmenting the loan portfolio by product type, geography and risk classification. The Company’s loan portfolio consists of commercial, commercial real estate, real estate construction, retail real estate, and retail other loans. Segmentation based on product type captures the risk of credit loss inherent in each category including fluctuations in underlying collateral values, changes in operating cash flows, changes in borrower characteristics, and changes in economic and other factors. Segmentation by geography and risk classification further enhances Management’s evaluation of these factors in the assessment of the adequacy of the allowance for loan loss.

The allowance for loan loss consists of a general reserve and a specific reserve. The general portion of the Company’s allowance is developed based on historical loss ratios adjusted for qualitative factors which management believes capture inherent loss not reflected in historical loss experience. Historical loss ratios are an annualized rate based on the previous five years of loss history with more consideration given to the most recent loss experience. Qualitative factors are estimated by considering risk factors both internal and external to the Company. Specifically, management considers the following when estimating qualitative factors: (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.

The specific portion of the Company’s allowance relates to loans that are identified as impaired, which includes non-performing loans, TDRs and other loans determined to be impaired. 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.

If a loan is impaired, 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 less cost to sell, if the loan is collateral dependent. Loans are considered collateral dependent if repayment is expected solely from the sale of 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.

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.

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

Premises and equipment, net

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


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

Long-lived assets

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

Other real estate owned

OREO represents properties acquired through foreclosure or other proceedings in settlement of loans. OREO is 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. OREO property is evaluated regularly to ensure the recorded amount is supported by its current fair value, and valuation allowances to reduce the carrying amount to fair value less estimated costs to dispose are recorded as necessary. Revenue, expense, gains and losses from the operations of foreclosed assets are included in operations.

Goodwill and other intangibles

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

The Company estimates the fair value of its reporting units as of the measurement date utilizing valuation methodologies including the comparable transactions approach and the control premium approach. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. There was no impairment determined at December 31, 2018 or 2017. See “Note 9. Goodwill and Other Intangible Assets” for further discussion.

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

Cash surrender value of bank-owned life insurance

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

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

Transfers of financial assets

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

Income taxes

The Company is subject to income taxes in the U.S. federal and various state jurisdictions. The Company and its subsidiaries file consolidated federal and state income tax returns with each subsidiary computing its taxes on a separate entity basis. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state or local tax examinations by tax authorities for the years before 2014.

The Company has maintained significant net deferred tax assets for deductible temporary differences, the largest of which relates to the allowance for loan losses. For income tax return purposes, only actual charge-offs are deductible, not the provision for loan losses. The Company took a one-time, non-cash charge of $8.1 million in the fourth quarter of 2017 as a result of the revaluation of the Company’s net deferred tax position following the enactment of the TCJA.

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

Management believes that it is more likely than not that the deferred tax assets included in the accompanying Consolidated Financial Statements will be fully realized. The Company determined that no valuation allowance was required as of December 31, 2018.

Positions taken in tax returns may be subject to challenge upon examination by the taxing authorities. Uncertain tax positions are initially recognized in the Consolidated Financial Statements when it is more likely than not the position will not be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in operating expenses. The Company had no accruals for payments of interest and penalties at December 31, 2018 or 2017.

At December 31, 2018, the Company was not under examination by any tax authority.

Treasury Stock

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

Stock-based employee compensation

During the first quarter of 2010, the Company adopted the First Busey Corporation 2010 Equity Incentive Plan (“2010 Equity Plan”), which was approved at the annual stockholders meeting on May 19, 2010. During the second quarter of 2015, the Company adopted an amendment to revise some technical terms to the 2010 Equity Plan, which was approved at the annual stockholders meeting on May 20, 2015, and can be found as Appendix C of the Company’s Proxy Statement for the 2015 Annual Meeting of Stockholders. The Company grants share-based compensation awards to its employees and members of its board of directors as provided for under the Company’s 2010 Equity Plan. In addition, pursuant to the terms of the First Community 2016 Equity Incentive Plan, the Company may grant awards with respect to First Busey common stock to legacy employees and directors of First Community or its subsidiaries.

The Company’s equity incentive plans are designed to encourage ownership of its common stock by its employees and directors, to provide additional incentive for them to promote the success of the Company’s business, and to attract and retain talented personnel. All of the Company’s employees and directors and those of its subsidiaries are eligible to receive awards under the plans. See “Note 16. Share-based Compensation” for further discussion.

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

Segment disclosure

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

Business Combinations

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

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

Derivative Financial Instruments

The Company enters into derivative financial instruments, including interest rate lock commitments issued to residential loan customers for loans that will be held for sale, forward sales commitments to sell residential mortgage loans to loan investors and derivatives to customers for interest rate swaps. These instruments have certain interest rate risk characteristics that change in value based upon changes in the capital markets.

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

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

Off-balance sheet arrangements

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

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

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer’s obligation to a third-party. Those guarantees are primarily issued to support public and private borrowing arrangements, including bond financing and similar transactions and primarily have terms of one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds collateral, which may include accounts receivable, inventory, property and equipment, and income producing properties, supporting those commitments if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third-party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount shown in the summary above. If the commitment is funded, the Company would be entitled to seek recovery from the customer. As of December 31, 2018 and 2017, no amounts were recorded as liabilities for the Company’s potential obligations under these guarantees.

Fair value of financial instruments

Fair value of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in “Note 20. Fair Value Measurements”. Fair value estimates involve uncertainties and matters of significant judgement regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

Reclassifications

Reclassifications have been made to certain prior year account balances, with no effect on net income or stockholders’ equity, to be consistent with the classifications adopted as of and for the year ended December 31, 2018.

Subsequent events

The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the Consolidated Financial Statements included in this Annual Report on Form 10-K were issued. On January 31, 2019, First Busey completed its acquisition of Banc Ed. See Note 2. Acquisitions for further discussion. On January 29, 2019, First Busey entered into an Amended and Restated Credit Agreement. See Note 11. Borrowings for further discussion. Other than these two items, there were no significant subsequent events for the year ended December 31, 2018 through the filing date of these Consolidated Financials.

Impact of recently adopted accounting standards

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 prior revenue recognition guidance, including industry-specific guidance. ASU 2014-09 requires that companies recognize revenue based on the value of transferred goods or services as they occur in the contract and establishes additional disclosures. The Company’s revenue is comprised of net interest income, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. The Company has evaluated its non-interest income and the nature of its contracts with customers and determined that further disaggregation of revenue beyond what is presented in the accompanying Consolidated Financial Statements was not necessary. The Company satisfies its performance obligations on its contracts with customers as services are rendered so there is limited judgment involved in applying Topic 606 that affects the determination of the timing and amount of revenue from contracts with customers.

Descriptions of the Company’s primary revenue generating activities that are within Topic 606, and are presented in the accompanying Consolidated Statements of Income as components of non-interest income, include trust fees, commission and brokers’ fees, net, remittance processing, and fees for customer services. Trust fees and commission and brokers’ fees, net, represents monthly fees due from wealth management customers as consideration for managing the customers' assets. Wealth management and trust services include custody of assets, investment management, fees for trust services and other fiduciary activities. Also included are fees received from a third party broker-dealer as part of a revenue sharing agreement for fees earned from customers that the Company refers to the third party. Revenue is recognized when the performance obligation is completed, which is generally monthly. Remittance processing represents transaction-based fees for pay processing solutions such as online bill payments, lockbox and walk-in payments. Revenue is recognized when the performance obligation is completed, which is generally monthly. Fees for customer services represents general service fees for monthly account maintenance and activity or transaction-based fees and consists of transaction-based revenue, time-based revenue, or item-based revenue. Revenue is recognized when the performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations are generally received at the time the performance obligations are satisfied. The adoption of this guidance on January 1, 2018 did not change the method in which non-interest income is recognized therefore a cumulative effect adjustment to retained earnings was not necessary.

ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01 requires: equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income; 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; eliminating the requirement to disclose the method and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the Balance Sheet; and requires an entity to present separately in other comprehensive income (loss) the portion of the total change in fair value of a liability resulting from the change in the instrument-specific credit risk when the fair value option has been elected for the liability. ASU 2016-01 was effective on January 1, 2018 and the adoption of this guidance resulted in separate classification of equity securities previously included in available for sale securities on the Consolidated Financial Statements. There was no cumulative effect adjustment recorded with the adoption of this guidance.

ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." ASU 2018-02 allows companies to make a one-time reclassification from accumulated other comprehensive income (loss) to retained earnings for the effects of remeasuring deferred tax liabilities and assets originally recorded in other comprehensive income as a result of the change in the federal tax rate by the TCJA. The Company adopted this guidance in the first quarter of 2018 with no impact on total stockholders' equity or net income.

Recently issued accounting standards

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 Consolidated Balance Sheet as a lease liability and a right-of-use asset. The guidance also requires qualitative and quantitative disclosures of 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. In July 2018, ASU 2018-11, "Leases (Topic 842): Targeted Improvements" was issued to allow companies to choose to recognize the cumulative effect of applying the new standard to leased assets and liabilities as an adjustment to the opening balance of retained earnings rather than recasting prior year results upon adoption of the standard. The Company has calculated the transition impact of the guidance on its Consolidated Financial Statements and related disclosures. Where the Company is a lessee, the Company will record approximately $8.1 million initial increase in assets and liabilities to reflect the right of use asset and the lease liability.

ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." ASU 2016-13 implements a change from the current impaired loss model to an expected credit loss model over the life of an instrument, including loans and securities held to maturity. The expected credit loss model is expected to result in earlier recognition of losses. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 including interim periods with those years. The Company has developed and is executing a project plan to implement this guidance. The project plan includes an assessment of data, development of CECL methodologies, model validation, and parallel runs to assess the impact of CECL calculations on its Consolidated Financial Statements and evaluation of related disclosures.

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 which required an entity to determine the fair value of its assets and liabilities as of the impairment test date. Instead, 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, including interim periods within those fiscal years. The Company does not expect this guidance to have a material impact on its Consolidated Financial Statements.

ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." ASU 2017-12 amends Topic 815 to reduce the cost and complexity of applying hedge accounting and expands the types of relationships that qualify for hedge accounting. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness, requires all items that affect earnings to be presented in the same income statement line as the hedged item, provides for applying hedge accounting to additional hedging strategies, provides for new approaches to measuring the hedged item in fair value hedges of interest rate risk, and eases the requirements for effective testing and hedge documentation. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company does not expect this guidance to have a material impact on its Consolidated Financial Statements.

ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting." ASU 2018-07 expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company does not expect this guidance to have a material impact on its Consolidated Financial Statements.

ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement." ASU 2018-13 removes, modifies, and adds certain disclosure requirements on fair value measurements. This guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The guidance has no impact on the Company’s Consolidated Financial Statements and is not expected to have a material impact on the Company’s required disclosures.

Acquisitions

12 Months Ended

Dec. 31, 2018

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, offered a full line of retail and commercial banking products through thirteen full-service banking centers in the St. Louis metropolitan area. 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 banking centers became banking centers 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 the right to receive 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. 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 reflected 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 did not incur any expenses for the twelve months ended December 31, 2018 related to the acquisition of Pulaski and incurred an immaterial amount of expenses related to the acquisition of Pulaski for the twelve months ended December 31, 2017. First Busey incurred $10.0 million in pre-tax expenses related to the acquisition of Pulaski for the twelve months ended December 31, 2016, including professional and legal fees of $1.2 million to directly consummate the acquisition, all of which are reported as a component of non-interest expense in the accompanying Consolidated Financial Statements. The remainder of the expenses primarily related to data processing conversion expenses and restructuring expenses.

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


	As Recorded by
	First Busey
Assets acquired:
Cash and cash equivalents	$	25,580
Securities		48,000
Loans held for sale		184,856
Portfolio loans		1,229,461
Premises and equipment		16,569
OREO		2,488
Goodwill		—
Other intangible assets		15,468
Other assets		70,243
Total assets acquired		1,592,665

Liabilities assumed:
Deposits		1,228,008
Other borrowings		206,746
Trust preferred securities		15,784
Other liabilities		23,982
Total liabilities assumed		1,474,520

Net assets acquired	$	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

The loans acquired in this transaction were recorded at fair value with no carryover of any existing allowance for loan losses. Loans that were not deemed to be credit-impaired at the acquisition date were accounted for under FASB ASC 310-20, Receivables-Nonrefundable Fees and Other Costs, and were subsequently considered as part of the Company’s determination of the adequacy of the allowance for loan losses. PCI loans, which are loans with evidence of credit quality deterioration at the date of acquisition, were accounted for under 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 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 December 31, 2018, PCI loans related to this transaction outstanding were immaterial. Material activity includes PCI loans with a carrying value of $6.2 million sold to outside parties in the third quarter of 2016 and a commercial PCI loan with a carrying value of $1.6 million 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 the non-accretable difference. The excess of cash flows expected at acquisition over the fair value is 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 remaining life of the respective loans in a manner that approximates the level yield method; however, the majority of the accretable yield was recognized 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 twelve months ended December 31, 2016, as if the acquisition had occurred January 1, 2016. The pro forma results combine the historical results of Pulaski in 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, except per share data):


	Pro Forma
	Twelve Months Ended
	December 31, 2016
Total revenues (net interest income plus non-interest income)	$	245,861
Net income		46,276
Diluted earnings per common share		1.20

First Community Financial Partners, Inc.

On July 2, 2017, the Company completed its acquisition of First Community, which was headquartered in Joliet, Illinois. Founded in 2004, First Community operated nine banking centers in Will, DuPage and Grundy Counties, which encompass portions of the southwestern suburbs of Chicago. The operating results of First Community are included with the Company’s results of operations since the date of acquisition. First Busey operated First Community Financial Bank as a separate subsidiary from July 3, 2017 until November 3, 2017, when it was merged with and into Busey Bank. At that time, First Community Financial Bank’s banking centers became banking centers of Busey Bank.

Under the terms of the merger agreement with First Community, at the effective time of the acquisition, each share of First Community common stock issued and outstanding was converted into the right to receive 0.396 shares of the Company’s common stock, cash in lieu of fractional shares and $1.35 cash consideration per share. The market value of the 7.2 million shares of First Busey common stock issued at the effective time of the acquisition was approximately $211.1 million based on First Busey’s closing stock price of $29.32 on June 30, 2017. In addition, certain options to purchase shares of First Community common stock that were outstanding at the acquisition date were converted into options to purchase shares of First Busey common stock, adjusted for the 0.44 option exchange ratio, and the fair value was included in the purchase price. The purchase price included cash payouts relating to unconverted stock options and restricted stock units outstanding as of the acquisition date.

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. The total consideration paid, which was used to determine the amount of goodwill resulting from the transaction, also included the fair value of outstanding First Community stock options that were converted into options to purchase common shares of First Busey and cash paid out relating to stock options and restricted stock units not converted. As the total consideration paid for First Community exceeded the net assets acquired, goodwill of $116.0 million was recorded as a result of the acquisition. Goodwill recorded in the transaction, which reflected the synergies expected from the acquisition and the greater revenue opportunities from the Company’s broader service capabilities in the Chicagoland area, is not tax deductible, and was assigned to the Banking operating segment.

First Busey incurred $0.1 million in pre-tax expenses related to the acquisition of First Community for the twelve months ended December 31, 2018, primarily for professional and legal fees. First Busey incurred $4.5 million in pre-tax expenses related to the acquisition of First Community for the twelve months ended December 31, 2017, including professional and legal fees of $1.6 million to directly consummate the acquisition, all of which were reported as a component of non-interest expense in the accompanying Consolidated Financial Statements. The remainder of the expenses primarily related to data processing conversion expenses and restructuring expenses.

The following table presents the fair value of First Community assets acquired and liabilities assumed as of July 2, 2017 (dollars in thousands):


	As Recorded by
	First Busey
Assets acquired:
Cash and cash equivalents	$	60,686
Securities		165,843
Loans held for sale		905
Portfolio loans		1,096,583
Premises and equipment		18,094
OREO		722
Other intangible assets		13,979
Other assets		41,755
Total assets acquired		1,398,567

Liabilities assumed:
Deposits		1,134,355
Other borrowings		125,751
Other liabilities		11,862
Total liabilities assumed		1,271,968

Net assets acquired	$	126,599

Consideration paid:
Cash	$	24,557
Cash payout of options and restricted stock units		6,182
Common stock		211,120
Fair value of stock options assumed		722
Total consideration paid	$	242,581

Goodwill	$	115,982

The loans acquired in this transaction were recorded at fair value with no carryover of any existing allowance for loan losses. Loans that were not deemed to be credit-impaired at the acquisition date were accounted for under FASB ASC 310-20, Receivables-Nonrefundable Fees and Other Costs, and were subsequently considered as part of the Company’s determination of the adequacy of the allowance for loan losses. PCI loans 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, was $1.1 billion. The difference between the aggregate principal balance outstanding and aggregate fair value of $14.4 million is expected to be accreted over the estimated 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 $17.9 million and the aggregate fair value of PCI loans totaled $12.5 million, which became such loans’ new carrying value. At December 31, 2018, PCI loans related to this transaction with a carrying value of $2.6 million were outstanding, with the decrease relating to collections and a loan sale. For PCI loans, the difference between contractually required payments at the acquisition date and the cash flow expected to be collected is the non-accretable difference. The excess of cash flows expected at acquisition over the fair value is the accretable yield. The accretable yield, as of the acquisition date, of $0.6 million on PCI loans was expected to be recognized over the estimated remaining life of the respective loans in a manner that approximates the level yield method; however, $0.2 million was recognized in 2017 as a result of collections of PCI loan balances so the majority of the balance was recognized by December 2018.

The following table provides the unaudited pro forma information for the results of operations for the twelve months ended December 31, 2017 and 2016, as if the acquisition had occurred January 1, 2016. The pro forma results combine the historical results of First Community into the Company's Consolidated Statements of Income, including the impact of purchase accounting adjustments including loan discount accretion, intangible assets amortization, deposit accretion and premises accretion, net of taxes. The 2016 pro forma results reflect Pulaski pro forma information as well, which is shown separately above. 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 merger related expenses that have been recognized are included in net income in the table below (dollars in thousands, except per share data):


	Pro Forma
	Twelve Months Ended December 31,
	2017		2016
Total revenues (net interest income plus non-interest income)	$	316,417	$	293,190
Net income		67,413		59,326
Diluted earnings per common share		1.47		1.29

Mid Illinois Bancorp, Inc.

On October 1, 2017, the Company completed its acquisition of Mid Illinois and its wholly owned bank subsidiary South Side Bank, under which each share of Mid Illinois common stock issued and outstanding as of the effective time was converted into, at the election of the stockholder the right to receive, either (i) $227.94 in cash, (ii) 7.5149 shares of the Company’s common stock, or (iii) mixed consideration of $68.38 in cash and 5.2604 shares of the Company’s common stock, subject to certain adjustments and proration. In the aggregate, total consideration consisted of 70% stock and 30% cash. Mid Illinois stockholders electing the cash consideration option were subject to proration under the terms of the merger agreement with Mid Illinois and ultimately received a mixture of cash and stock consideration. First Busey operated South Side Bank as a separate bank subsidiary from October 2, 2017 until March 16, 2018, when it was merged with and into Busey Bank. At that time, South Side Bank’s banking centers became banking centers of Busey Bank.

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. An adjustment to the fair value was recorded in the first quarter of 2018 as additional information became available. As the total consideration paid for Mid Illinois exceeded the net assets acquired, goodwill of $48.9 million was recorded as a result of the acquisition. Goodwill recorded in the transaction, which reflected the synergies expected from the acquisition and expansion within the greater Peoria area, is not tax deductible, and was assigned to the Banking operating segment.

First Busey incurred $3.1 million of pre-tax expenses related to the acquisition of Mid Illinois for the twelve months ended December 31, 2018, primarily for salaries, wages and employee benefits expense, professional and legal fees and data conversion expenses, all of which are reported as a component of non-interest expense in the accompanying Consolidated Financial Statements. First Busey incurred $2.5 million in pre-tax expenses related to the acquisition of Mid Illinois for the twelve months ended December 31, 2017, including professional and legal fees of $1.3 million to directly consummate the acquisition, all of which were reported as a component of non-interest expense in the accompanying Consolidated Financial Statements.

The following table presents the fair value of Mid Illinois assets acquired and liabilities assumed as of October 1, 2017 (dollars in thousands):


	As Recorded by
	First Busey
Assets acquired:
Cash and cash equivalents	$	39,443
Securities		208,003
Loans held for sale		5,031
Portfolio loans		356,651
Premises and equipment		16,551
Other intangible assets		11,531
Other assets		29,564
Total assets acquired		666,774

Liabilities assumed:
Deposits		505,917
Other borrowings		61,040
Other liabilities		10,497
Total liabilities assumed		577,454

Net assets acquired	$	89,320

Consideration paid:
Cash	$	40,507
Common stock		97,702
Total consideration paid	$	138,209

Goodwill	$	48,889

The loans acquired in this transaction were recorded at fair value with no carryover of any existing allowance for loan losses. Loans that were not deemed to be credit-impaired at the acquisition date were accounted for under FASB ASC 310-20, Receivables-Nonrefundable Fees and Other Costs, and were subsequently considered as part of the Company’s determination of the adequacy of the allowance for loan losses. PCI loans 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 was $362.4 million and aggregate fair value of the acquired performing loans was $357.0 million, including loans held for sale. The difference between the aggregate principal balance outstanding and aggregate fair value of $5.4 million is expected to be accreted over the estimated 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 $7.6 million and the aggregate fair value of PCI loans totaled $4.7 million, which became such loans’ new carrying value. At December 31, 2018, PCI loans related to this transaction with a carrying value of $0.1 million were outstanding, with the decrease primarily relating to loan sales. For PCI loans, the difference between contractually required payments at the acquisition date and the cash flow expected to be collected is the non-accretable difference. The excess of cash flows expected at acquisition over the fair value is the accretable yield. The accretable yield, as of the acquisition date, of $0.1 million on PCI loans was expected to be recognized over the estimated remaining life of the respective loans in a manner that approximates the level yield method; however, the full amount was recognized in 2018 due to loan sales of PCI loans.

The Company held $2.6 million of banking center real estate in the Peoria market at December 31, 2018 that was no longer in use and was classified as bank properties held for sale. These properties, recorded at the lower of amortized cost or estimated fair value less estimated cost to sell, were recorded in the amount of $1.8 million and were included in premises and equipment, net. The Company recognized an impairment charge of $0.8 million in the second quarter of 2018 related to these bank properties held for sale.

The Banc Ed Corp.

On August 21, 2018, the Company entered into Merger Agreement with Banc Ed, pursuant to which Banc Ed would merge into First Busey, with First Busey as the surviving corporation. TheBANK, Banc Ed’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, TheBANK’s banking offices will become branches of Busey Bank. The holding company merger was completed on January 31, 2019 and is a subsequent event to this Annual Report on Form 10-K. The operating results of Banc Ed are not included in the Company’s Consolidated Financial Statements included herein. TheBANK was founded in 1868 and was a privately held commercial bank headquartered in Edwardsville, Illinois. As of December 31, 2018, Banc Ed had total consolidated assets of $1.8 billion, gross loans of $902.1 million and total deposits of $1.5 billion. The Company expects the acquisition of Banc Ed to enhance First Busey’s existing deposit, commercial banking and wealth management presence in the greater St. Louis Missouri-Illinois Metropolitan Statistical Area.

Under the terms of the Merger Agreement with Banc Ed, at the effective time of the acquisition, each share of Banc Ed common stock issued and outstanding was converted into the right to receive 8.2067 shares of the Company’s common stock, cash in lieu of fractional shares and $111.53 cash consideration per share. The market value of the 6.7 million shares of First Busey common stock issued at the effective time of the acquisition was approximately $166.5 million based on First Busey’s closing stock price of $24.76 on January 31, 2019.

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 considered provisional until final fair values are determined or the measurement period has passed, but no later than one year from the acquisition date. Reviews of third party valuations are still being performed by Management. Therefore amounts are subject to change and could change materially from the provisional amounts disclosed below. As the total consideration paid for Banc Ed exceeded the net assets acquired, preliminary goodwill of $48.5 million is estimated to be recorded as a result of the acquisition. Goodwill for this transaction, which reflects the synergies expected from the acquisition and the revenue opportunities from the Company’s increased presence in the greater St. Louis Missouri-Illinois Metropolitan Statistical Area, is not tax deductible, and will be assigned to the Banking and Wealth Management operating segments.

First Busey incurred $0.4 million in pre-tax expenses related to the acquisition of Banc Ed for the twelve months ended December 31, 2018, primarily for professional and legal fees, all of which are reported as a component of non-interest expense in the accompanying Consolidated Financial Statements.

The following table presents the estimated fair value of Banc Ed assets acquired and liabilities assumed as of January 31, 2019 (dollars in thousands):


	Estimated by
	First Busey
Assets acquired:
Cash and cash equivalents	$	42,013
Securities		692,692
Loans held for sale		2,157
Portfolio loans		870,838
Premises and equipment		32,203
Other intangible assets		28,047
Mortgage servicing rights		6,946
Other assets		62,342
Total assets acquired		1,737,238

Liabilities assumed:
Deposits		1,439,203
Other borrowings		63,439
Other liabilities		25,214
Total liabilities assumed		1,527,856

Net assets acquired	$	209,382

Consideration paid:
Cash	$	91,400
Common stock		166,515
Total consideration paid	$	257,915

Goodwill	$	48,533

Securities

12 Months Ended

Dec. 31, 2018

Securities

Securities

Note 3. Securities

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


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2018:	Cost		Gains		Losses		Value
Available for sale
U.S. Treasury securities	$	25,824	$	1	$	(414)	$	25,411
Obligations of U.S. government corporations and agencies		53,096		7		(761)		52,342
Obligations of states and political subdivisions		171,131		484		(1,571)		170,044
Commercial mortgage-backed securities		2,003		—		(61)		1,942
Residential mortgage-backed securities		322,646		245		(7,143)		315,748
Corporate debt securities		132,513		61		(376)		132,198
Total	$	707,213	$	798	$	(10,326)	$	697,685

Held to maturity
Obligations of states and political subdivisions	$	33,947	$	68	$	(87)	$	33,928
Commercial mortgage-backed securities		59,054		11		(1,003)		58,062
Residential mortgage-backed securities		515,659		1,748		(6,037)		511,370
Total	$	608,660	$	1,827	$	(7,127)	$	603,360


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2017:	Cost		Gains		Losses		Value
Available for sale
U.S. Treasury securities	$	60,829	$	7	$	(488)	$	60,348
Obligations of U.S. government corporations and agencies		104,807		1		(1,143)		103,665
Obligations of states and political subdivisions		280,216		1,160		(1,177)		280,199
Residential mortgage-backed securities		400,661		612		(3,837)		397,436
Corporate debt securities		30,946		132		(44)		31,034
Total	$	877,459	$	1,912	$	(6,689)	$	872,682

Held to maturity
Obligations of states and political subdivisions	$	41,300	$	228	$	(64)	$	41,464
Commercial mortgage-backed securities		60,474		41		(297)		60,218
Residential mortgage-backed securities		341,776		25		(2,431)		339,370
Total	$	443,550	$	294	$	(2,792)	$	441,052

The Company held equity securities, consisting of common stock with fair values of $6.2 million and an immaterial amount of money market mutual funds at December 31, 2018. The Company held equity securities, consisting of common stock and money market mutual funds, with fair values of $0.8 million and $4.6 million, respectively, at December 31, 2017. The Company recorded $0.1 million of unrealized losses in non-interest income in the accompanying Consolidated Financial Statements during the twelve months ended December 31, 2018 related to common stock. The Company recorded $2.3 million in security gains during the twelve months ended December 31, 2018 related to common stock, as well as a transfer from other assets.

The amortized cost and fair value of debt securities as of December 31, 2018, by contractual maturity or pre-refunded date, are shown below. 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 (dollars in thousands).


	Available for sale				Held to maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	60,006	$	59,759	$	8,103	$	8,088
Due after one year through five years		223,813		222,206		55,638		55,007
Due after five years through ten years		136,411		135,118		29,260		28,895
Due after ten years		286,983		280,602		515,659		511,370
Total	$	707,213	$	697,685	$	608,660	$	603,360

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


	For the Years Ended December 31,
	2018		2017		2016
Gross security gains	$	—	$	1,259	$	1,383
Gross security (losses)		(1,991)		(116)		(151)
Security gains (losses), net(1)	$	(1,991)	$	1,143	$	1,232

(1)

Security gains, net reported on the Consolidated Statements of Income in 2018 include $2.3 million of gains in equity securities as noted above.

The estimated tax benefit for net realized gains and losses was $0.4 million for the year ended December 31, 2018. The estimated tax provision for net realized gains and losses was $0.4 million for the years ended December 31, 2017 and 2016.

Investment securities with carrying amounts of $498.3 million and $638.2 million on December 31, 2018 and 2017, respectively, were pledged as collateral for public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law.

Information pertaining to securities with gross unrealized losses at December 31, 2018 and 2017 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows (dollars in thousands):


	Continuous unrealized				Continuous unrealized
	losses existing for less than				losses existing for greater
	12 months, gross				than 12 months, gross				Total, gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2018:	Value		Losses		Value		Losses		Value		Losses
Available for sale
U.S. Treasury securities	$	995	$	(4)	$	24,343	$	(410)	$	25,338	$	(414)
Obligations of U.S. government corporations and agencies		749		(3)		50,744		(758)		51,493		(761)
Obligations of states and political subdivisions		49,893		(460)		77,651		(1,111)		127,544		(1,571)
Commercial mortgage-backed securities		—		—		1,942		(61)		1,942		(61)
Residential mortgage-backed securities		48,387		(496)		247,573		(6,647)		295,960		(7,143)
Corporate debt securities		90,713		(268)		15,083		(108)		105,796		(376)
Total temporarily impaired securities	$	190,737	$	(1,231)	$	417,336	$	(9,095)	$	608,073	$	(10,326)

Held to maturity
Obligations of states and political subdivisions	$	9,531	$	(33)	$	9,538	$	(54)	$	19,069	$	(87)
Commercial mortgage-backed securities		12,067		(212)		45,041		(791)		57,108		(1,003)
Residential mortgage-backed securities		77,071		(974)		245,128		(5,063)		322,199		(6,037)
Total temporarily impaired securities	$	98,669	$	(1,219)	$	299,707	$	(5,908)	$	398,376	$	(7,127)


	Continuous unrealized				Continuous unrealized
	losses existing for less than				losses existing for greater
	12 months, gross				than 12 months, gross				Total, gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2017:	Value		Losses		Value		Losses		Value		Losses
Available for sale
U.S. Treasury securities	$	59,773	$	(488)	$	—	$	—	$	59,773	$	(488)
Obligations of U.S. government corporations and agencies		78,610		(636)		24,831		(507)		103,441		(1,143)
Obligations of states and political subdivisions		162,213		(1,027)		12,045		(150)		174,258		(1,177)
Residential mortgage-backed securities		223,261		(1,428)		90,930		(2,409)		314,191		(3,837)
Corporate debt securities		16,176		(44)		—		—		16,176		(44)
Total temporarily impaired securities	$	540,033	$	(3,623)	$	127,806	$	(3,066)	$	667,839	$	(6,689)

Held to maturity
Obligations of states and political subdivisions	$	17,939	$	(64)	$	—	$	—	$	17,939	$	(64)
Commercial mortgage-backed securities		44,514		(214)		2,374		(83)		46,888		(297)
Residential mortgage-backed securities		277,826		(2,431)		—		—		277,826		(2,431)
Total temporarily impaired securities	$	340,279	$	(2,709)	$	2,374	$	(83)	$	342,653	$	(2,792)

Securities are periodically evaluated for OTTI. The total number of securities in the investment portfolio in an unrealized loss position as of December 31, 2018 was 570, and represented a loss of 1.70% of the aggregate carrying value. The Company has evaluated the nature of unrealized losses in the investment securities portfolio to determine if OTTI exists. The unrealized losses relate to changes in market interest rates and market conditions that do not represent credit-related impairments. Furthermore, the Company does not intend to sell such securities and it is more likely than not that the Company will recover the amortized cost prior to being required to sell the securities. Full collection of the amounts due according to the contractual terms of the securities is expected; therefore, the Company does not consider these investments to be OTTI at December 31, 2018.

The Company had available for sale obligations of state and political subdivisions with a fair value of $170.1 million and $280.2 million as of December 31, 2018 and 2017, respectively. In addition, the Company had held to maturity obligations of state and political subdivisions with a fair value of $33.9 million and $41.5 million at December 31, 2018 and 2017, respectively.

As of December 31, 2018, the fair value of the Company’s obligations of state and political subdivisions portfolio was comprised of $171.1 million of general obligation bonds and $32.9 million of revenue bonds issued by 303 issuers, primarily consisting of states, counties, cities, towns, villages and school districts. The Company held investments in general obligation bonds in 31 states (including the District of Columbia), including eight states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in 18 states, including one state where the aggregate fair value exceeded $5.0 million.

As of December 31, 2017, the fair value of the Company’s obligations of state and political subdivisions portfolio was comprised of $271.7 million of general obligation bonds and $50.0 million of revenue bonds issued by 446 issuers, primarily consisting of states, counties, cities, towns, villages and school districts. The Company held investments in general obligation bonds in 36 states (including the District of Columbia), including nine states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in 22 states, including three 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):


December 31, 2018:						Average Exposure
	Number of		Amortized	Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
Illinois	70	$	56,324	$	55,999	$	800
Wisconsin	20		12,624		12,544		627
Texas	36		21,637		21,428		595
Michigan	19		10,799		10,890		573
Ohio	17		9,543		9,545		561
Pennsylvania	10		6,317		6,298		630
Missouri	8		5,202		5,172		646
California	6		8,303		8,322		1,387
Other	74		41,274		40,906		553
Total general obligations bonds	260	$	172,023	$	171,104	$	658


December 31, 2017:						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
Illinois	97	$	95,340	$	95,344	$	983
Wisconsin	41		27,852		27,809		678
Texas	46		27,485		27,514		598
Michigan	34		19,641		19,849		584
Ohio	20		15,172		15,162		758
Pennsylvania	18		12,189		12,174		676
New Jersey	15		7,755		7,760		517
Missouri	10		5,759		5,747		575
Minnesota	8		5,657		5,667		708
Other	92		54,649		54,633		594
Total general obligations bonds	381	$	271,499	$	271,659	$	713

The general obligation bonds are diversified across many issuers, with $5.0 million and $4.0 million being the largest exposure to a single issuer at December 31, 2018 and 2017, respectively. Accordingly, as of December 31, 2018 and 2017, 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, 99.3% had been rated by at least one nationally recognized statistical rating organization and 0.7% were unrated, based on the fair value as of December 31, 2018 and 2017.

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):


December 31, 2018:						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
Indiana	10	$	9,588	$	9,582	$	958
Other	33		23,467		23,286		705
Total revenue bonds	43	$	33,055	$	32,868	$	764


December 31, 2017:						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
Indiana	14	$	12,001	$	12,054	$	861
Missouri	6		7,376		7,336		1,223
Illinois	7		6,477		6,456		922
Other	38		24,163		24,158		636
Total revenue bonds	65	$	50,017	$	50,004	$	769

The revenue bonds are diversified across many issuers and revenue sources with $3.5 million and $3.6 million being the largest exposure to a single issuer at each of December 31, 2018 and 2017, respectively. Accordingly, as of December 31, 2018 and 2017, 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, 100.0% had been rated by at least one nationally recognized statistical rating organization, based on the fair value as of December 31, 2018. Of the revenue bonds in the Company’s portfolio, 99.4% had been rated by at least one nationally recognized statistical rating organization and 0.6% were unrated, based on the fair value as of December 31, 2017. 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.

At December 31, 2018, 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 banks’ 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.

All securities in First Busey’s obligations of state and political subdivision securities portfolio are subject to periodic review. Factors that may be considered as part of monitoring of state and political subdivision securities include credit rating changes by nationally recognized 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.

Loans held for sale

12 Months Ended

Dec. 31, 2018

Loans held for sale

Loans held for sale

Note 4. Loans held for sale

Loans held for sale totaled $25.9 million and $94.8 million at December 31, 2018 and 2017, respectively. Loans held for sale generate net interest income until loans are delivered to investors, at which point mortgage revenue will be recognized.

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


	December 31,
	2018		2017		2016
Premiums received on sales of mortgage loans, including fair value adjustments	$	12,105	$	42,598	$	43,119
Less direct origination costs		(8,683)		(33,363)		(32,793)
Less provisions to liability for loans sold		(132)		(225)		(175)
Mortgage servicing revenues, net of servicing expense		2,255		2,130		1,801
Mortgage revenue	$	5,545	$	11,140	$	11,952

Mortgage Loan Servicing

12 Months Ended

Dec. 31, 2018

Mortgage Loan Servicing

Mortgage Loan Servicing

Note 5. Mortgage Loan Servicing

The largest portion of the Company’s servicing assets relate to mortgage loans. The unpaid principal balances of mortgage loans serviced by the Company for the benefit of others are not included in the accompanying Consolidated Balance Sheets. These unpaid principal balances were $1.5 billion as of December 31, 2018 and 2017. Servicing such loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and collection and foreclosure processing. Mortgage servicing revenues, a component of mortgage revenue, is recorded on the accrual basis and includes servicing fees from investors and certain charges collected from borrowers, such as late payment fees, and is net of amortization of capitalized mortgage servicing rights.

The balance of capitalized mortgage servicing rights included in other assets in the accompanying Consolidated Balance Sheets at December 31, 2018 and 2017, was $3.3 million and $3.7 million, respectively. The fair values of these servicing rights were $11.1 million and $8.6 million, respectively, at December 31, 2018 and 2017. The following summarizes mortgage servicing rights capitalized, acquired and amortized (dollars in thousands):


	For the Years Ended December 31,
	2018		2017		2016

Mortgage servicing rights capitalized	$	1,166	$	1,366	$	1,488
Mortgage servicing rights acquired	$	—	$	751	$	—
Mortgage servicing rights amortized	$	1,531	$	1,584	$	1,921

Portfolio loans and allowance for loan losses

12 Months Ended

Dec. 31, 2018

Portfolio loans and allowance for loan losses

Portfolio loans and allowance for loan losses

Note 6. Portfolio loans and allowance for loan losses

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


	December 31,		December 31,
	2018		2017
Commercial	$	1,405,106	$	1,414,631
Commercial real estate		2,366,823		2,354,684
Real estate construction		288,197		261,506
Retail real estate		1,480,133		1,460,801
Retail other		28,169		27,878
Portfolio loans	$	5,568,428	$	5,519,500

Less allowance for loan losses		50,648		53,582
Portfolio loans, net	$	5,517,780	$	5,465,918

Net deferred loan origination costs included in the tables above were $5.6 million and $4.1 million as of December 31, 2018 and 2017, respectively. Net accretable purchase accounting adjustments included in the table above reduced loans by $13.9 million and $23.6 million as of December 31, 2018 and 2017, respectively.

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.

Substandard Non-accrual- This category includes loans that have all the characteristics of a “Substandard” loan with additional factors that make collection in full highly questionable and improbable. Such loans are placed on non-accrual status and may be dependent on collateral with a value that is difficult to determine.

All loans are graded at their inception. 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.

Pass and watch rated portfolio loans totaled $5.3 billion at December 31, 2018 and 2017. Portfolio loans graded special mention, substandard and substandard non-accrual totaled $263.9 million at December 31, 2018, compared to $193.8 million at December 31, 2017.

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


	December 31, 2018
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual
Commercial	$	1,126,257	$	172,449	$	47,000	$	42,532	$	17,953
Commercial real estate		2,106,711		137,214		85,148		36,205		10,298
Real estate construction		268,069		14,562		3,899		1,888		18
Retail real estate		1,448,964		6,425		6,792		5,435		6,698
Retail other		26,707		—		—		—		30
Total	$	4,976,708	$	330,650	$	142,839	$	86,060	$	34,997


	December 31, 2017
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual
Commercial	$	1,175,421	$	141,776	$	51,366	$	43,933	$	5,285
Commercial real estate		2,169,420		130,056		21,151		36,482		11,997
Real estate construction		212,952		41,292		3,880		3,071		608
Retail real estate		1,436,156		6,883		5,162		4,135		6,714
Retail other		28,300		9		—		7		20
Total	$	5,022,249	$	320,016	$	81,559	$	87,628	$	24,624

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


	December 31, 2018
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Commercial	$	158	$	140	$	775	$	17,953
Commercial real estate		148		558		—		10,298
Real estate construction		121		—		58		18
Retail real estate		4,578		1,368		766		6,698
Retail other		48		2		2		30
Total	$	5,053	$	2,068	$	1,601	$	34,997


	December 31, 2017
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Commercial	$	1,615	$	323	$	1,808	$	5,285
Commercial real estate		1,856		2,737		—		11,997
Real estate construction		—		—		—		608
Retail real estate		4,840		1,355		933		6,714
Retail other		166		5		—		20
Total	$	8,477	$	4,420	$	2,741	$	24,624

The gross interest income that would have been recorded in the years ended December 31, 2018, 2017 and 2016 if impaired loans had been current in accordance with their original terms was approximately $1.7 million, $1.4 million, and $0.9 million, respectively. The amount of interest collected on impaired loans and recognized on a cash basis that was included in interest income was immaterial in 2018, $0.3 million in 2017 and immaterial in 2016.

A summary of restructured loans is as follows (dollars in thousands):


	December 31,		December 31,
	2018		2017
In compliance with modified terms	$	8,319	$	9,873
30 — 89 days past due		127		108
Included in non-performing loans		392		1,919
Total	$	8,838	$	11,900

Loans classified as TDRs during the twelve months ended December 31, 2018 consisted of one retail real estate modifications for short-term interest rate relief, with a recorded investment of $0.1 million. Loans classified as TDRs during the twelve months ended December 31, 2017 consisted of three retail real estate modifications for short-term interest payment relief, with a recorded investment of $0.7 million.

The gross interest income that would have been recorded in the twelve months ended December 31, 2018 and 2017 if performing TDRs had been in accordance with their original terms instead of modified terms was immaterial.

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 twelve months ended December 31, 2018. There were no TDRs that were entered into during the prior twelve months that were subsequently classified as non-performing and had payment defaults during the twelve months ended December 31, 2017.

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


	December 31, 2018
	Unpaid		Recorded
	Contractual		Investment		Recorded		Total				Average
	Principal		with No		Investment		Recorded		Related		Recorded
	Balance		Allowance		with Allowance		Investment		Allowance		Investment
Commercial	$	21,442	$	6,858	$	12,001	$	18,859	$	4,319	$	13,364
Commercial real estate		19,079		13,082		4,498		17,580		1,181		18,077
Real estate construction		478		453		—		453		—		712
Retail real estate		14,418		13,196		61		13,257		61		14,110
Retail other		117		33		—		33		—		40
Total	$	55,534	$	33,622	$	16,560	$	50,182	$	5,561	$	46,303


	December 31, 2017
	Unpaid		Recorded
	Contractual		Investment		Recorded		Total				Average
	Principal		with No		Investment		Recorded		Related		Recorded
	Balance		Allowance		with Allowance		Investment		Allowance		Investment
Commercial	$	10,604	$	7,192	$	191	$	7,383	$	138	$	10,184
Commercial real estate		22,218		16,472		1,964		18,436		704		15,195
Real estate construction		1,040		1,016		—		1,016		—		692
Retail real estate		18,517		14,957		25		14,982		25		13,009
Retail other		40		20		—		20		—		44
Total	$	52,419	$	39,657	$	2,180	$	41,837	$	867	$	39,124

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 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).


	Year Ended December 31, 2018
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	14,779	$	21,813	$	2,861	$	13,783	$	346	$	53,582
Provision for loan losses		5,767		3,227		(259)		(4,824)		518		4,429
Charged-off		(3,968)		(4,352)		(97)		(1,815)		(712)		(10,944)
Recoveries		1,251		449		218		1,327		336		3,581
Ending balance	$	17,829	$	21,137	$	2,723	$	8,471	$	488	$	50,648


	Year Ended December 31, 2017
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	13,303	$	20,623	$	1,870	$	11,648	$	351	$	47,795
Provision for loan losses		(1,091)		2,439		581		3,263		111		5,303
Charged-off		(994)		(1,965)		(48)		(2,691)		(541)		(6,239)
Recoveries		3,561		716		458		1,563		425		6,723
Ending balance	$	14,779	$	21,813	$	2,861	$	13,783	$	346	$	53,582


	Year Ended December 31, 2016
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	13,115	$	18,604	$	1,763	$	13,714	$	291	$	47,487
Provision for loan losses		5,520		2,366		(310)		(2,277)		251		5,550
Charged-off		(6,598)		(470)		(24)		(2,106)		(458)		(9,656)
Recoveries		1,266		123		441		2,317		267		4,414
Ending balance	$	13,303	$	20,623	$	1,870	$	11,648	$	351	$	47,795

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


	As of December 31, 2018
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Allowance for loan losses
Ending balance attributed to:
Loans individually evaluated for impairment	$	4,319	$	1,181	$	—	$	61	$	—	$	5,561
Loans collectively evaluated for impairment		13,510		19,956		2,723		8,410		488		45,087
Ending balance	$	17,829	$	21,137	$	2,723	$	8,471	$	488	$	50,648

Loans:
Loans individually evaluated for impairment	$	18,441	$	15,318	$	453	$	13,159	$	33	$	47,404
Loans collectively evaluated for impairment		1,386,247		2,349,243		287,744		1,466,876		28,136		5,518,246
PCI loans evaluated for impairment		418		2,262		—		98		—		2,778
Ending balance	$	1,405,106	$	2,366,823	$	288,197	$	1,480,133	$	28,169	$	5,568,428


	As of December 31, 2017
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Allowance for loan losses
Ending balance attributed to:
Loans individually evaluated for impairment	$	138	$	704	$	—	$	25	$	—	$	867
Loans collectively evaluated for impairment		14,641		21,109		2,861		13,758		346		52,715
Ending balance	$	14,779	$	21,813	$	2,861	$	13,783	$	346	$	53,582

Loans:
Loans individually evaluated for impairment	$	6,572	$	11,491	$	435	$	12,673	$	20	$	31,191
Loans collectively evaluated for impairment		1,407,248		2,336,248		260,490		1,445,819		27,858		5,477,663
PCI loans evaluated for impairment		811		6,945		581		2,309		—		10,646
Ending balance	$	1,414,631	$	2,354,684	$	261,506	$	1,460,801	$	27,878	$	5,519,500

OREO

12 Months Ended

Dec. 31, 2018

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. At December 31, 2018, the Company held $0.2 million in commercial OREO, $0.2 million in residential OREO and an immaterial amount of other repossessed assets. At December 31, 2017, the Company held $1.2 million in commercial OREO, $0.1 million in residential OREO and an immaterial amount of other repossessed assets. At December 31, 2018 the Company had $2.9 million of residential real estate in the process of foreclosure.

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


	Year Ended		Year Ended
	December 31, 2018		December 31, 2017
OREO:
Beginning balance	$	1,283	$	2,518
Additions, transfers from loans		4,025		1,417
Additions, fair value from First Community acquisition		—		722
Additions, fair value from Mid Illinois acquisition		—		60
Proceeds from sales of OREO		(5,298)		(5,024)
Gain on sales of OREO		384		1,632
Valuation allowance for OREO		(18)		(42)
Ending balance	$	376	$	1,283

- 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=84176060&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=84176060&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=82891408&loc=d3e4437-111522

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

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

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

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

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

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

+ Details

Premises and Equipment, net

12 Months Ended

Dec. 31, 2018

Premises and Equipment, net

Premises and Equipment, net

Note 8. Premises and Equipment, net

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


	December 31,
	2018		2017
Land and improvements	$	36,453	$	36,249
Buildings and improvements		108,137		104,656
Furniture and equipment		48,060		42,323
		192,650		183,228
Less accumulated depreciation		74,978		66,315
Total premises and equipment, net	$	117,672	$	116,913

Depreciation expense was $9.6 million, $8.6 million, and $7.3 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Note 9. Goodwill and Other Intangible Assets

Other than goodwill, the Company does not have any other intangible assets that are not amortized. The Company’s goodwill is associated with its three operating segments, Banking, Remittance Processing and Wealth Management. Goodwill is tested annually for impairment, and as part of this analysis, the reporting unit's carrying value is compared to its fair value. Based on the impairment testing performed at December 31, 2018, there were no indicators of potential impairment based on the estimated fair value of those operating segments. All three operating segments have sustained quarterly and annual profits.

During 2018, the Company adjusted goodwill by $1.7 million, relating to the acquisition of Mid Illinois as it finalized its assessment of the initial fair value of assets acquired and liabilities assumed. During 2017, the Company recorded, in the Banking operating segment, goodwill totaling $116.0 million and other intangible assets totaling $14.0 million in connection with the acquisition of First Community. During 2017, the Company recorded, in the Banking operating segment, goodwill totaling $50.6 million and other intangible assets totaling $10.5 million in connection with the acquisition of Mid Illinois. During 2017, the Company recorded $1.0 million of other intangible assets in the Wealth Management operating segment in connection with the acquisition of Mid Illinois. The carrying amount of goodwill by operating segment, at December 31, 2018 and 2017 is as follows (dollars in thousands):


	Balance at		Balance at
Goodwill:	December 31, 2018		December 31, 2017
Banking	$	246,999	$	248,660
Remittance Processing		8,992		8,992
Wealth Management		11,694		11,694
Total goodwill	$	267,685	$	269,346

Core deposit and customer relationship intangible assets are amortized on an accelerated or straight-line basis over the estimated period benefited. Other intangible asset disclosures are as follows (dollars in thousands):


	Balance at				Balance at
	December 31,		2018		December 31,		2017
	2018		Amortization		2017		Amortization
Amortized intangible assets:
Core deposit intangible assets	$	31,836	$	5,535	$	37,371	$	4,529
Customer relationship intangible assets		1,037		319		1,356		716
	$	32,873	$	5,854	$	38,727	$	5,245


			Customer
	Core deposit		relationship
	intangible		intangible
As of December 31, 2018:
Gross carrying amount	$	63,029	$	13,168
Accumulated amortization		31,193		12,131
	$	31,836	$	1,037

Estimated amortization expense at December 31, 2018:
2019	$	5,108	$	276
2020		4,680		233
2021		4,251		191
2022		3,820		148
2023		3,387		106
Thereafter		10,590		83
	$	31,836	$	1,037

- Definition

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

+ References + Details

Deposits

12 Months Ended

Dec. 31, 2018

Deposits

Deposits

Note 10. Deposits

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


	December 31, 2018		December 31, 2017
Demand deposits, noninterest-bearing	$	1,464,700	$	1,597,421
Interest-bearing transaction deposits		1,435,574		1,166,170
Saving deposits and money market deposits		1,852,044		2,026,212
Time deposits		1,497,003		1,336,162
Total	$	6,249,321	$	6,125,965

The Company did not hold any brokered interest-bearing transaction deposits at December 31, 2018. The Company held brokered interest-bearing transaction deposits of $5.0 million at December 31, 2017. The Company held brokered savings deposits and money market deposits of $17.5 million and $75.1 million at December 31, 2018 and 2017, respectively.

The aggregate amount of time deposits with a minimum denomination of $100,000 was approximately $673.7 million and $578.9 million at December 31, 2018 and 2017, respectively. The aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000 was approximately $264.1 million and $197.9 million at December 31, 2018 and 2017, respectively. The Company held brokered time deposits of $262.5 million and $247.7 million at December 31, 2018 and 2017, respectively.

As of December 31, 2018, the scheduled maturities of time deposits are as follows (dollars in thousands):


2019	$	996,048
2020		305,167
2021		83,220
2022		72,048
2023		40,504
Thereafter		16
	$	1,497,003

Borrowings

12 Months Ended

Dec. 31, 2018

Borrowings

Borrowings

Note 11. Borrowings

Federal funds purchased are short-term borrowings that generally mature between one and ninety days. The Company had no federal funds purchased at December 31, 2018 and 2017.

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

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

On April 30, 2018, the Company entered into a third amendment to extend the maturity of its revolving facility from April 30, 2018 to April 30, 2019, to decrease the maximum principal amount from $40.0 million to $20.0 million, and to amend the annual interest rate. Subsequent to year end, on January 29, 2019, the Company entered into an Amended and Restated Credit Agreement to allow any outstanding balance on the revolving facility at the maturity date of April 30, 2019 to be converted into a term loan with a maturity date of April 30, 2021. The revolving facility incurs a non-usage fee based on the undrawn amount. The Company had no outstanding balance on the revolving facility at December 31, 2018 or 2017.

The Amended and Restated Credit Agreement also provides for a $60.0 million term loan (the “Term Loan”) with a maturity date of November 30, 2023. The loan has an annual interest rate of one-month LIBOR plus a spread of 1.50%. The proceeds of the Term Loan were used to fund the cash consideration related to the acquisition of Banc Ed.

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):


	December 31,			December 31,
	2018			2017
Securities sold under agreements to repurchase
Balance at end of period	$	185,796		$	304,566
Weighted average interest rate at end of period		1.05	%		0.57	%
Maximum outstanding at any month end in year-to-date period	$	267,596		$	304,566
Average daily balance for the year-to-date period	$	234,239		$	213,527
Weighted average interest rate during period(1)		0.69	%		0.46	%

Short-term borrowings, FHLB advances
Balance at end of period	$	—		$	220,000
Weighted average interest rate at end of period		—	%		1.42	%
Maximum outstanding at any month end in year-to-date period	$	225,000		$	234,600
Average daily balance for the year-to-date period	$	81,438		$	84,201
Weighted average interest rate during period(1)		1.80	%		1.20	%

(1)

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

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


	December 31,		December 31,
	2018		2017
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.	$	50,000	$	50,000

As of December 31, 2018, funds borrowed from the FHLB, listed above, consisted of variable-rate notes maturing through September 2024, with interest rates ranging from 2.20% to 2.41%. The weighted average rate on these long-term advances was 2.28% as of December 31, 2018. As of December 31, 2017, funds borrowed from the FHLB, listed above, consisted of variable-rate notes maturing through September 2024, with interest rates ranging from 1.10% to 1.32%. The weighted average rate on these long-term advances was 1.19% as of December 31, 2017.

On May 25, 2017, the Company issued $40.0 million of 3.75% senior notes that mature on May 25, 2022. The senior notes are payable semi-annually on each May 25 and November 25, commencing on November 25, 2017. Additionally, on May 25, 2017, the Company issued $60.0 million of fixed-to-floating rate subordinated notes that mature on May 25, 2027. The subordinated notes, which qualify as Tier 2 capital for First Busey, are at an initial rate of 4.75% for five years and thereafter at an annual floating rate equal to three-month LIBOR plus a spread of 2.919%. The subordinated notes are payable semi-annually on each May 25 and November 25, commencing on November 25, 2017 during the five year fixed-term and thereafter each February 25, May 25, August 25 and November 25 of each year, commencing on August 25, 2022. The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after May 25, 2022. The senior notes and subordinated notes are unsecured obligations of the Company. Unamortized debt issuance costs related to the senior notes and subordinated notes totaled $0.5 million and $0.9 million, respectively, at December 31, 2018. Unamortized debt issuance costs related to the senior notes and subordinated notes totaled $0.6 million and $1.0 million, respectively, at December 31, 2017. The Company used the net proceeds from the offering to finance a portion of the cash consideration for its acquisition of First Community, to redeem a portion of First Community subordinated debentures in July 2017, and to finance a portion of the cash consideration for its acquisition of Mid Illinois in October 2017, with the remaining proceeds to be used for general corporate purposes.

In relation to the First Community acquisition, the Company assumed $15.3 million in subordinated debt, of which $9.8 million was simultaneously redeemed. A $0.3 million purchase accounting premium was recorded on the remaining subordinated debt. On September 30, 2018, the Company, at its option, redeemed the balance of the subordinated debt at a redemption price equal to the principal amount outstanding plus accrued but unpaid interest.

Junior Subordinated Debt Owed to Unconsolidated Trusts	12 Months Ended
Junior Subordinated Debt Owed to Unconsolidated Trusts	Dec. 31, 2018
Junior Subordinated Debt Owed to Unconsolidated Trusts
Junior Subordinated Debt Owed to Unconsolidated Trusts	Note 12. 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 in 2016, the Company acquired similar statutory trusts maintained by Pulaski and the fair value adjustment is being accreted over the weighted average remaining life. The Company had $71.2 million and $71.0 million of junior subordinated debt owed to unconsolidated trusts at December 31, 2018 and 2017, respectively. The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated notes at par value at the stated maturity date or upon redemption. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated notes. The Company’s obligations under the junior subordinated notes and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each trust’s obligations under the trust preferred securities issued by each trust. The Company has the right to defer payment of interest on the notes, in which case the distributions on the trust preferred securities will also be deferred, for up to five years, but not beyond the stated maturity date. Under current banking regulations, bank holding companies are allowed to include qualifying trust preferred securities in their Tier 1 Capital for regulatory capital purposes, subject to a 25% limitation to all core (Tier 1) capital elements, net of goodwill and other intangible assets less any associated deferred tax liability. As of December 31, 2018, 100% of the trust preferred securities qualified as Tier 1 capital under the final rule adopted in March 2005. The Dodd-Frank Act mandated the Federal Reserve to establish minimum capital levels for holding companies on a consolidated basis as stringent as those required for FDIC-insured institutions. A result of this change is that the proceeds of hybrid instruments, such as trust preferred securities, are excluded from capital over a phase-out period. However, if such securities were issued prior to May 19, 2010 by bank holding companies with less than $15.0 billion of assets, they may be retained, subject to certain restrictions. Because the Company has assets of less than $15.0 billion, it is able to maintain its trust preferred proceeds as capital, but the Company has to comply with new capital mandates in other respects and will not be able to raise capital in the future through the issuance of trust preferred securities.

Regulatory Capital

12 Months Ended

Dec. 31, 2018

Regulatory Capital

Regulatory Capital

Note 13. Regulatory Capital

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

Banking regulations identify five capital categories for insured depository institutions: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. As of December 31, 2018 and 2017, all capital ratios of the Company and the Banks exceeded the well capitalized levels under the applicable regulatory capital adequacy guidelines. Management believes that no events or changes have occurred subsequent to December 31, 2018 that would change this designation.

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


									Minimum
					Minimum				To Be Well
	Actual				Capital Requirement				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2018:
Total Capital (to Risk Weighted Assets)
Consolidated	$	894,572	14.83	%	$	482,638	8.00	%	$	603,297	10.00	%
Busey Bank	$	854,351	14.19	%	$	481,701	8.00	%	$	602,126	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	783,924	12.99	%	$	361,978	6.00	%	$	482,638	8.00	%
Busey Bank	$	803,703	13.35	%	$	361,276	6.00	%	$	481,701	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	709,924	11.77	%	$	271,484	4.50	%	$	392,143	6.50	%
Busey Bank	$	803,703	13.35	%	$	270,957	4.50	%	$	391,382	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated	$	783,924	10.36	%	$	302,704	4.00	%		N/A	N/A
Busey Bank	$	803,703	10.64	%	$	302,232	4.00	%	$	377,789	5.00	%

					Minimum				Minimum
					Capital Requirement plus				To Be Well
	Actual				Capital Buffer				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2017:
Total Capital (to Risk Weighted Assets)
Consolidated	$	837,183	14.15	%	$	473,310	8.00	%	$	591,638	10.00	%
Busey Bank	$	704,807	12.78	%	$	441,062	8.00	%	$	551,327	10.00	%
South Side Bank	$	84,914	22.61	%	$	30,049	8.00	%	$	37,561	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	718,101	12.14	%	$	354,983	6.00	%	$	473,310	8.00	%
Busey Bank	$	651,432	11.82	%	$	330,797	6.00	%	$	441,062	8.00	%
South Side Bank	$	84,707	22.55	%	$	22,537	6.00	%	$	30,049	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	644,633	10.90	%	$	266,237	4.50	%	$	384,565	6.50	%
Busey Bank	$	651,432	11.82	%	$	248,098	4.50	%	$	358,363	6.50	%
South Side Bank	$	84,707	22.55	%	$	16,903	4.50	%	$	24,415	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated	$	718,101	9.78	%	$	293,588	4.00	%		N/A	N/A
Busey Bank	$	651,432	9.80	%	$	265,847	4.00	%	$	332,309	5.00	%
South Side Bank	$	84,707	12.75	%	$	26,571	4.00	%	$	33,214	5.00	%

In July 2013, the U.S. federal banking authorities approved the Basel III Rule for strengthening international capital standards. The Basel III Rule introduced a capital conservation buffer, composed entirely of CET1, which is added to the minimum risk-weighted asset ratios. The capital conservation buffer is not a minimum capital requirement; however, banking institutions with a ratio of CET1 to risk-weighted assets below the capital conservation buffer will face constraints on dividends, equity repurchases and discretionary bonus payments based on the amount of the shortfall. When fully phased in on January 1, 2019, the capital conservation buffer is 2.5% of CET1. In order to refrain from restrictions on dividends, equity repurchases and discretionary bonus payments, banking institutions, must maintain minimum ratios of (i) CET1 to risk-weighted assets of at least 7.0%, (ii) Tier 1 capital to risk-weighted assets of at least 8.5%, and (iii) Total capital to risk-weighted assets of at least 10.5%.

The ability of the Company to pay cash dividends to its stockholders and to service its debt 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 had been in an accumulated deficit position since 2009, it was not able to pay dividends. With prior approval from its regulators, however, an Illinois state-chartered bank in that situation was 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 $40.0 million on October 12, 2018. Busey Bank returned to positive retained earnings in the second quarter of 2018. The Company expects Busey Bank to return to paying dividends in future periods.

- 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=84167132&loc=SL5958577-112826

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1C
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958572-112826

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1E
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958574-112826

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1H
-URI http://asc.fasb.org/extlink&oid=84167132&loc=d3e65071-112826

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958569-112826

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958570-112826

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1F
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958575-112826

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958568-112826

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1D
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958573-112826

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2018

Income Taxes

Income Taxes

Note 14. Income Taxes

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


	Years Ended December 31,
	2018		2017		2016
Current expense:
Federal	$	18,076	$	27,168	$	15,486
State		9,807		4,117		785
Deferred expense:
Federal		5,068		11,583		6,147
State		2,048		2,517		4,305
Total income tax expense	$	34,999	$	45,385	$	26,723

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


	Years Ended December 31,
	2018		2017		2016
	% of		% of		% of
	Pretax		Pretax		Pretax
	Income		Income		Income
Income tax at federal statutory rate	21.0	%	35.0	%	35.0	%
Effect of:
TCJA	—	%	7.5	%	—	%
Tax-exempt interest, net	(1.3)	%	(2.1)	%	(2.4)	%
Stock incentive	(0.3)	%	(0.5)	%	—	%
State income taxes, net	7.3	%	4.0	%	4.3	%
Income on bank owned life insurance	(0.6)	%	(0.9)	%	(1.0)	%
Other, net	—	%	(1.0)	%	(0.9)	%
	26.1	%	42.0	%	35.0	%

On December 22, 2017, TCJA was signed into law and became effective January 2018. The TCJA reduced the corporate tax rate as well as adjusted tax rates, deductions and exemptions for individuals and businesses alike. The Company took a non-recurring, non-cash charge of $8.1 million in the fourth quarter of 2017 as a result of the revaluation of the Company’s net deferred tax position following the enactment of the TCJA.

Net deferred taxes at December 31, 2018 and 2017 in the accompanying Consolidated Balance Sheets, include the following amounts of deferred tax assets and liabilities (dollars in thousands).


	2018		2017
Deferred tax assets:
Unrealized losses on securities available for sale	$	2,716	$	1,362
Allowance for loan losses		14,885		15,751
Stock-based compensation		2,208		1,869
Deferred compensation		1,454		2,455
Affordable housing partnerships and other investments		691		970
Purchase accounting adjustments		4,563		7,712
Accrued vacation		744		604
Employee costs		260		759
Other		1,095		1,336
	$	28,616	$	32,818

Deferred tax liabilities:
Basis in premises and equipment		(1,213)		(1,909)
Affordable housing partnerships and other investments		(1,868)		(1,769)
Purchase accounting adjustments		(1,102)		(1,262)
Mortgage servicing assets		(1,159)		(1,120)
Basis in core deposit and customer intangible assets		(9,299)		(10,955)
Deferred loan origination costs		(1,593)		(1,168)
Other		(984)		—
	$	(17,218)	$	(18,183)
Net operating loss carryforward, net of valuation allowance		33		2,661
Net deferred tax assets	$	11,431	$	17,296

At December 31, 2018, the Company had an immaterial federal net operating loss carryforward remaining in relation to the First Community acquisition, which is subject to limitations under Section 382 of the Internal Revenue Code. At December 31, 2017, the Company had a federal net operating loss carryforward of $2.7 million, or approximately $12.7 million pre-tax.

At December 31, 2017, the Company had a Florida net operating loss carryforward of $0.1 million with a full valuation allowance, which was utilized in 2018.

Management believes that it is more likely than not that the other deferred tax assets included in the accompanying Consolidated Balance Sheets will be fully realized. The Company has determined that no additional valuation allowance is required for any other deferred tax assets as of December 31, 2018 and 2017.

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2018
Employee Benefit Plans
Employee Benefit Plans	Note 15. Employee Benefit Plans Employees' Stock Ownership Plan Prior to 2014, the First Busey Corporation Employees' Stock Ownership Plan (“ESOP”) was available to all full-time employees who met certain age and length of service requirements. Effective in 2014, the ESOP was frozen, all shares were fully vested and there will be no new contributions under the ESOP. Dividends on allocated shares of common stock are distributed directly to the participants. All shares held by the ESOP, which were acquired prior to the issuance of ASC Topic 718-40, "Employee Stock Ownership Plans", are included in the computation of average common shares and common share equivalents. This accounting treatment is grandfathered under ASC Topic 718-40 for shares purchased prior to December 31, 1992. All shares held in the ESOP which were acquired prior to December 31, 1992 were allocated as of December 31, 2006. The number of shares and associated fair values were 115,602 worth $2.8 million and 121,082 worth $3.6 million at December 31, 2018 and 2017, respectively. Shares held in the ESOP which were acquired after December 31, 1992 and associated fair values were 36,639 worth $0.9 million and 42,439 worth $1.3 million at December 31, 2018 and 2017, respectively. Profit Sharing Plan All full-time employees who meet certain age and service requirements are eligible to participate in the Company's profit-sharing plan. The contributions, if any, are determined solely by the boards of directors of the Company and its subsidiaries, and in no case may the annual contributions be greater than the amounts deductible for federal income tax purposes for that year. The rights of the participants vest ratably over a five-year period, except for the 401(k) match portion, which vests immediately. Expenses related to the employee benefit plans are $5.4 million, $5.1 million and $4.3 million for the years ended December 31, 2018, 2017 and 2016, respectively. The Company had sponsored deferred compensation plans for executive officers for deferral of compensation. Effective March 28, 2018, the deferred compensation plan was terminated and all account balances will be distributed in April 2019. The deferred compensation expense reported was $0.3 million for the years ended December 31, 2018, 2017 and 2016. The deferred compensation liability was $6.4 million and $10.2 million at December 31, 2018 and 2017, respectively. The 2017 deferred compensation liability was impacted by the Mid Illinois acquisition and included $3.9 million which was distributed in January 2018.

Share-based Compensation

12 Months Ended

Dec. 31, 2018

Share-based Compensation

Share-based Compensation

Note 16. Share-based Compensation

Overview

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

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

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

The following additional limits apply to awards under the 2010 Equity Plan, however due to changes imposed by the TCJA, “performance-based compensation” only applies to arrangements subject to a written binding contract in effect on November 2, 2017, that have not subsequently been materially modified:

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

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

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

The Company grants share-based compensation awards to its employees and members of its board of directors as provided for under the Company’s 2010 Equity Plan. Further, in 2017, the Company registered 443,619 shares of its common stock issuable in the future pursuant to First Community 2016 Equity Incentive Plan to legacy employees and directors of First Community and its subsidiaries and upon the exercise of currently outstanding equity awards under the First Community 2016 Equity Incentive Plan and the First Community Amended and Restated 2008 Equity Incentive Plan held by former employees of First Community and its subsidiaries. Pursuant to the terms of the First Community 2016 Equity Incentive Plan, the Company may grant awards with respect to First Busey common stock to legacy employees and directors of First Community or its subsidiaries, including but not limited to non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock and restricted stock units.

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 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 Plan or the First Community 2016 Equity Plan, except that, following vesting, settlement occurs within 30 days following the earlier of separation from the board or a change in control of the Company. 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 and stock options assumed from acquisitions.

Under the terms of the Company’s 2010 Equity Plan and First Community 2016 Equity Incentive Plan, the Company is allowed, but not required, to source stock option exercises and grants of RSUs and DSUs from its inventory of treasury stock. As of December 31, 2018, the Company held 310,745 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 originally approved in 2008. During 2015, the Company purchased 333,333 shares under this repurchase plan. At December 31, 2018 the Company had 333,334 shares that may still be purchased under the plan.

Stock Option Plan

In relation to the First Community acquisition, the Company assumed stock options that were previously issued under First Community incentive plans. The First Community Amended and Restated 2008 Equity Incentive Plan was approved by First Community shareholders. This plan was subsequently amended without approval by First Community shareholders to increase the number of shares available for issuance. The First Community 2016 Equity Incentive Plan was approved by First Community shareholders. At the effective time of the merger, each outstanding and unexercised option to purchase shares of First Community common stock held by an employee, whether vested or unvested, was converted into an option to purchase First Busey common stock. The converted option is equal to the number of shares of such First Community stock option multiplied by the option exchange ratio (rounded down to the nearest whole share), at an exercise price per share equal to the exercise price for each share of First Community common stock subject to such First Community stock option divided by the option exchange ratio (rounded up to the nearest whole cent). The option exchange ratio is the sum of the exchange ratio (0.396) multiplied by the closing sales price of a share of First Busey common stock on the Nasdaq Global Select Market on June 30, 2017, plus the cash consideration ($1.35), divided by the closing sales price of a share of First Busey common stock on the Nasdaq Global Select Market on June 30, 2017. Each First Community stock option assumed and converted continues to be subject to the same terms and conditions (including vesting periods), as applicable immediately prior to the effective time of the merger.

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

A summary of the status of the Company's stock option awards for the years ended December 31, 2018, 2017, and 2016, and the changes during the years ended on those dates is as follows:


	2018			2017			2016
		Weighted-			Weighted-			Weighted-
		Average			Average			Average
		Exercise			Exercise			Exercise
	Shares	Price		Shares	Price		Shares	Price

Outstanding at beginning of year	213,428	$	16.97	209,382	$	15.13	96,568	$	43.64
Converted options from Pulaski	—		—	—		—	309,700		13.29
Converted options from First Community	—		—	121,360		21.41	—		—
Exercised	(105,275)		13.38	(99,605)		13.74	(145,774)		15.09
Forfeited	(16,014)		22.02	(5,279)		23.53	(394)		13.87
Expired	(4,539)		12.90	(12,430)		52.40	(50,718)		58.23
Outstanding at end of year	87,600	$	20.58	213,428	$	16.97	209,382	$	15.13

Exercisable at end of year	70,034	$	19.84	167,144	$	15.16	209,382	$	15.13

The following table summarizes information about stock options outstanding at December 31, 2018:


								Options
		Options Outstanding						Exercisable
					Weighted-
			Weighted-		Average
Range of			Average		Remaining
Exercise			Exercise		Contractual	Intrinsic			Intrinsic
Prices		Number	Price		Life	Value		Number	Value
$	10.43-13.47	21,173	$	12.31	2.16			21,173
	17.05	924		17.05	1.05			924
	21.03-23.53	65,503		23.30	6.32			47,937
		87,600	$	20.58	5.26	$	312	70,034	$	295

The Company recorded $0.2 million stock option compensation expense for the twelve months ended December 31, 2018 and 2017 related to the converted options from First Community. The Company did not record any stock option compensation expense during 2016. As of December 31, 2018, the Company had $0.2 million of unrecognized stock option expense. This cost is expected to be recognized in 2019.

Restricted Stock Unit Plan

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

A summary of the changes in the Company’s RSUs for the years ended December 31, 2018, 2017 and 2016 is as follows:


	2018			2017			2016
		Weighted-			Weighted-			Weighted-
		Average			Average			Average
		Grant Date			Grant Date			Grant Date
	Shares	Fair Value		Shares	Fair Value		Shares	Fair Value

Outstanding at beginning of year	587,763	$	22.68	552,610	$	18.45	424,930	$	17.10
Reclass DSU to RSU	23,977		25.47	—		—	—		—
Converted units from Pulaski	—		—	—		—	53,004		14.25
Granted	172,571		31.70	160,532		30.34	126,669		22.44
Dividend equivalents earned	16,879		29.96	13,479		30.14	14,935		21.09
Vested	(104,512)		16.40	(116,498)		14.73	(54,913)		14.61
Forfeited	(6,183)		24.84	(22,360)		19.20	(12,015)		15.19
Outstanding at end of year	690,495	$	26.14	587,763	$	22.68	552,610	$	18.45

Recipients earn quarterly dividend equivalents on their respective units which entitle the recipients to additional units. Therefore, dividends earned each quarter compound based upon the updated unit balances. Upon vesting/delivery, shares are expected (though not required) to be issued from treasury. Dividends related to the converted Pulaski units were accumulated and paid in cash upon vesting in 2017.

On August 1, 2018, under the terms of the 2010 Equity Plan, the Company granted 152,926 RSUs to members of management, and under the terms of the First Community 2016 Equity Incentive Plan, granted 12,545 RSUs to members of management who were legacy First Community employees. As the stock price on the grant date of August 1, 2018 was $31.70, total compensation cost to be recognized is $5.2 million. This cost will be recognized over a period of four to five years. Subsequent to the requisite service period, the awards will become 100% vested. Further, the Company granted 7,100 RSUs, under the terms of the 2010 Equity Plan, to the Chairman of the Board. As the stock price on the grant date of August 1, 2018 was $31.70, total compensation cost to be recognized is $0.2 million. This cost will be recognized over a period of five years. Subsequent to the requisite service period, the awards will become 100% vested.

A description of RSUs granted in 2017 and 2016 under the terms of the 2010 Equity Plan or the First Community 2016 Equity Incentive Plan can be found in the Company’s Annual Reports on Form 10-K for the years ended December 31, 2017 and 2016.

Deferred Stock Unit Plan

A summary of the changes in the Company’s DSUs for the years ended December 31, 2018, 2017 and 2016 is as follows:


	2018			2017			2016
		Weighted-			Weighted-			Weighted-
		Average			Average			Average
		Grant Date			Grant Date			Grant Date
	Shares	Fair Value		Shares	Fair Value		Shares	Fair Value

Non-vested at beginning of year	42,411	$	25.47	35,038	$	21.04	24,763	$	19.25
Reclass DSU to RSU	(23,977)		25.47	—		—	—		—
Granted	20,500		31.70	24,100		29.61	22,428		22.44
Dividend equivalents earned	2,300		29.99	2,426		30.22	2,576		21.20
Vested	(20,584)		29.68	(19,153)		23.18	(14,729)		20.18
Forfeited	(201)		31.67	—		—	—		—
Non-vested at end of year	20,449	$	27.93	42,411	$	25.47	35,038	$	21.04
Outstanding at end of year	86,700	$	22.42	119,985	$	21.00	93,459	$	18.54

On August 1, 2018, under the terms of the 2010 Equity Plan, the Company granted 17,500 DSUs to directors and under the terms of the First Community 2016 Equity Incentive Plan granted 1,500 DSUs to a director who was a legacy First Community director. In addition, under the terms of the 2010 Equity Plan, the Company granted 1,500 advisory DSUs to advisory directors. As the stock price on the grant date of August 1, 2018 was $31.70, total compensation cost to be recognized is $0.6 million. These costs will be recognized over the requisite service period of one year from the date of grant or the next Annual Meeting of Stockholders; whichever is earlier.

A description of DSUs granted in 2017 and 2016 under the terms of the 2010 Equity Plan or First Community 2016 Equity Incentive Plan can be found in the Company’s Annual Reports on Form 10-K for the years ended December 31, 2017 and 2016.

The Company issued 104,637, 79,459 and 43,396 treasury shares in conjunction with the vesting of RSUs and settlement of DSUs in 2018, 2017 and 2016, respectively. The difference between the number of shares issued and the number of vested units is due to shares issued under a net share settlement option.

The Company recognized $3.5 million, $2.6 million and $1.8 million of compensation expense related to both non-vested RSUs and DSUs for the years ended December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018, there was $10.9 million of total unrecognized compensation cost related to these non-vested stock awards. This cost is expected to be recognized over a period of 3.6 years.

Transactions with Related Parties

12 Months Ended

Dec. 31, 2018

Transactions with Related Parties

Transactions with Related Parties

Note 17. Transactions with Related Parties

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

The following is an analysis of the changes in loans to related parties as a group during the year ended December 31, 2018 (dollars in thousands):


Balance at beginning of year	$	46,915
Change in relationship		(5,891)
New loans/advances		4,795
Repayments		(13,025)
Balance at end of year	$	32,794

Total unused commitments to directors and executive officers were $20.3 million at December 31, 2018.

Outstanding Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2018

Outstanding Commitments and Contingent Liabilities

Outstanding Commitments and Contingent Liabilities

Note 18. 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

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):


	December 31, 2018		December 31, 2017
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	1,398,483	$	1,300,294
Standby letters of credit		32,156		37,231

Lease Commitments

At December 31, 2018, the Company was obligated under noncancelable operating leases for office space and other commitments. Rent expense under operating leases, included in net occupancy and equipment expense, was $2.4 million, $3.7 million, and $2.7 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Rent commitments before considering renewal options that generally are present, were as follows at December 31, 2018 (dollars in thousands):


2019	$	1,716
2020		1,571
2021		1,019
2022		795
2023		503
Thereafter		1,189
	$	6,793

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2018

Derivative Financial Instruments

Derivative Financial Instruments

Note 19. Derivative Financial Instruments

The Company enters into derivative financial instruments, including interest rate lock commitments issued to residential loan customers for loans that will be held for sale, forward sales commitments to sell residential mortgage loans to loan investors and derivatives to customers for interest rate swaps. See “Note 20. Fair Value Measurements” for further discussion of the fair value measurement of such derivatives.

Interest Rate Lock Commitments. At December 31, 2018 and 2017, the Company had issued $27.2 million and $51.7 million, respectively, of unexpired interest rate lock commitments to loan customers. Such interest rate lock commitments that meet the definition of derivative financial instruments under ASC Topic 815, Derivatives and Hedging, are carried at their fair values in other assets or other liabilities in the Consolidated Financial Statements, with changes in the fair values of the corresponding derivative financial assets or liabilities recorded as either a charge or credit to current earnings during the period in which the changes occurred.

Forward Sales Commitments. At December 31, 2018 and 2017, the Company had issued $48.6 million and $139.7 million, respectively, of unexpired forward sales commitments to mortgage loan investors. Typically, the Company economically hedges mortgage loans held for sale and interest rate lock commitments issued to its residential loan customers related to loans that will be held for sale by obtaining corresponding best-efforts forward sales commitments with an investor to sell the loans at an agreed-upon price at the time the interest rate locks are issued to the customers. Forward sales commitments that meet the definition of derivative financial instruments under ASC Topic 815, Derivatives and Hedging, are carried at their fair values in other assets or other liabilities in the Consolidated Financial Statements. While such forward sales commitments generally served as an economic hedge to the mortgage loans held for sale and interest rate lock commitments, the Company did not designate them for hedge accounting treatment. 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 derivative assets and liabilities related to interest rate lock commitments and forward sales commitments recorded in the Consolidated Balance Sheets are summarized as follows (dollars in thousands):


	December 31, 2018		December 31, 2017
Fair value recorded in other assets	$	624	$	675
Fair value recorded in other liabilities		1,205		2,148

The gross gains and losses on these derivative assets and liabilities related to interest rate lock commitments and forward sales commitments recorded in non-interest income and expense in the Consolidated Statements of Income for the twelve months ended December 31, 2018, 2017 and 2016 are summarized as follows (dollars in thousands):


	December 31, 2018		December 31, 2017		December 31, 2016

Gross gains	$	3,494	$	14,724	$	25,270
Gross (losses)		(3,874)		(13,250)		(24,783)
Net gains (losses)	$	(380)	$	1,474	$	487

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

Derivatives to Customers. The Company may offer derivative contracts to its customers in connection with their risk management needs. These derivatives are primarily interest rate swaps. The Company manages the risk associated with these contracts by entering into an equal and offsetting derivative with a third-party dealer. With notional values of $243.7 million and $161.3 million at December 31, 2018 and 2017, respectively, these contracts support variable rate, commercial loan relationships totaling $121.8 million and $80.7 million, respectively. These derivatives generally worked together as an economic interest rate hedge, but the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred.

The fair values of derivative assets and liabilities related to derivatives for customers for interest rate swaps recorded in the Consolidated Balance Sheets are summarized as follows (dollars in thousands):


		December 31, 2018		December 31, 2017
Fair value recorded in other assets	$	1,438	$	262
Fair value recorded in other liabilities		1,438		262

The gross gains and losses on these derivative assets and liabilities recorded in non-interest income and expense in the Consolidated Statements of Income for the year ended December 31, 2018 and 2017 are summarized as follows (dollars in thousands):


		December 31, 2018		December 31, 2017
Gross gains	$	1,176	$	262
Gross losses		(1,176)		(262)
Net gains (losses)	$	—	$	—

The Company pledged $1.0 million in cash to secure its obligation under these contracts at December 31, 2018. The Company pledged $2.0 million in cash and $0.4 million in securities to secure its obligation under these contracts at December 31, 2017.

Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Fair Value Measurements

Fair Value Measurements

Note 20. Fair Value Measurements

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

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

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

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

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

There were no transfers between levels during the year ended December 31, 2018 or 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. 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.

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

The independent pricing service uses model processes, such as the Option Adjusted Spread model, to assess interest rate impact and develop prepayment scenarios. 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. 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.

Securities Equity Investments. Securities classified as equity investments are reported at fair value utilizing level 1 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.

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.

Derivative Assets and Derivative Liabilities. Derivative assets and derivative liabilities are reported at fair value utilizing level 2 measurements. The fair value of derivative assets and liabilities is determined based on prices that are obtained from a third-party which uses observable market inputs. Derivative assets and liabilities are classified as level 2.

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017, 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
December 31, 2018	Inputs		Inputs		Inputs		Fair Value
Fair value adjusted through comprehensive income:
Securities available for sale
U.S. Treasury securities	$	—	$	25,411	$	—	$	25,411
Obligations of U.S. government corporations and agencies		—		52,342		—		52,342
Obligations of states and political subdivisions		—		170,044		—		170,044
Commercial mortgage-backed securities		—		1,942		—		1,942
Residential mortgage-backed securities		—		315,748		—		315,748
Corporate debt securities		—		132,198		—		132,198
Fair value adjusted through current period earnings:
Securities equity investments		6,169		—		—		6,169
Loans held for sale		—		25,895		—		25,895
Derivative assets		—		2,062		—		2,062
Derivative liabilities		—		2,643		—		2,643


	Level 1		Level 2		Level 3		Total
December 31, 2017	Inputs		Inputs		Inputs		Fair Value
Securities available for sale
U.S. Treasury securities	$	—	$	60,348	$	—	$	60,348
Obligations of U.S. government corporations and agencies		—		103,665		—		103,665
Obligations of states and political subdivisions		—		280,199		—		280,199
Residential mortgage-backed securities		—		397,436		—		397,436
Corporate debt securities		—		31,034		—		31,034
Securities equity investments		5,378		—		—		5,378
Loans held for sale		—		94,848		—		94,848
Derivative assets		—		937		—		937
Derivative liabilities		—		2,410		—		2,410

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 identified as 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.

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. Due to the significance of the unobservable inputs, all OREO fair values have been classified as level 3.

Bank Property Held for Sale. Bank property held for sale represents certain banking center office buildings which the Company has closed and consolidated with other existing banking centers. Bank property held for sale is measured at the lower of amortized cost or fair value less estimated costs to sell. The fair values were based upon appraisals or real estate listing price. Due to the significance of the unobservable inputs, all bank property held for sale fair values have been classified as level 3.

The following table summarizes assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2018 and 2017, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):


	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
December 31, 2018
Impaired loans	$	—	$	—	$	10,999	$	10,999
OREO		—		—		55		55
Bank property held for sale		—		—		1,832		1,832


December 31, 2017
Impaired loans	$	—	$	—	$	1,313	$	1,313
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)
December 31, 2018
Impaired loans	$	10,999	Appraisal of collateral	Appraisal adjustments	- 3.3	%	to	- 100.0	%
					(-24.1)%
OREO		55	Appraisal of collateral	Appraisal adjustments	- 25.0	%	to	- 100.0	%
					(-65.0)%
Bank property held for sale		1,832	Appraisal of collateral or real estate listing price	Appraisal adjustments	- 0.0	%	to	- 35.1	%
					(-28.3)%

December 31, 2017
Impaired loans	$	1,313	Appraisal of collateral	Appraisal adjustments	- 20.3	%	to	- 100.0	%
					(-30.8)%
OREO(1)		—	Appraisal of collateral	Appraisal adjustments	-100.0%
					(-100.0)%

(1)

OREO fair value was less than one thousand dollars.

The carrying value for cash and cash equivalents approximates fair value and due to the short-term maturity is classified as level 1. The carrying value approximates fair value for accrued interest receivable and accrued interest payable and both are classified as level 2. The methodologies for other financial assets and financial liabilities are discussed below:

Securities held to maturity

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

Portfolio loans, net

Our performing portfolio loans consist of variable rate, hybrid rate and fixed rate loans. The fair value of loans are estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities and are classified as level 3. Fair value of impaired loans is discussed above.

Mortgage servicing rights

The fair value of mortgage servicing rights is estimated by discounting the future cash flows at a market rate of return and classified as level 3.

Other servicing rights

The fair value of other servicing rights relates to servicing that First Busey provides on Small Business Administration loans and is estimated by discounting the future cash flows at a market rate of return and classified as level 3.

Deposits and securities sold under agreements to repurchase

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

Short-term borrowings

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

Long-term debt

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

Junior subordinated debt owed to unconsolidated trusts

The fair value of junior subordinated debt owed to unconsolidated trusts is estimated by discounting the future cash flows using the current rates for similar junior subordinated debt owed to unconsolidated trusts and are classified as level 2.

Senior and subordinated notes, net of unamortized issuance costs

The fair value of senior and subordinated notes is estimated based on the rates currently available to the Company with similar terms, remaining maturity and credit spread and classified as level 3.

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


	December 31, 2018				December 31, 2017
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Level 1 inputs:
Cash and cash equivalents	$	239,973	$	239,973	$	353,272	$	353,272
Level 2 inputs:
Securities held to maturity		608,660		603,360		443,550		441,052
Accrued interest receivable		22,314		22,314		22,591		22,591
Level 3 inputs:
Portfolio loans, net		5,517,780		5,473,063		5,465,918		5,361,406
Mortgage servicing rights		3,315		11,051		3,680		8,635
Other servicing rights		781		1,443		280		901

Financial liabilities:
Level 2 inputs:
Time deposits(2)	$	1,497,003	$	1,482,301	$	—	$	—
Deposits(2)		—		—		6,125,965		6,119,135
Securities sold under agreements to repurchase		185,796		185,796		304,566		304,566
Short-term borrowings		—		—		220,000		220,000
Long-term debt		50,000		49,873		50,000		50,000
Junior subordinated debt owed to unconsolidated trusts		71,155		65,182		71,008		71,008
Accrued interest payable		6,568		6,568		2,581		2,581
Level 3 inputs:
Senior notes, net of unamortized issuance costs		39,539		39,452		39,404		39,104
Subordinated notes, net of unamortized issuance costs		59,147		58,186		64,715		64,350

(2)

In connection with the adoption of ASU 2016-01 in 2018, only deposits with stated maturities are required to be disclosed.

- Definition

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

+ References + Details

Earnings Per Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share

Earnings Per Share

Note 21. Earnings Per Share

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

Diluted earnings per common share is computed using the treasury stock method and reflects the potential dilution that could occur if the Company’s outstanding stock options were exercised and restricted stock units were vested. Stock options and restricted stock units for which the exercise or the grant price exceeds the average market price over the period have an anti-dilutive effect and are excluded from the calculation. At December 31, 2018, 191,278 warrants and 172,571 restricted stock units were anti-dilutive and excluded from the calculation of common stock equivalents. At December 31, 2017, 75,387 outstanding options, 191,278 warrants and 9,425 restricted stock units were anti-dilutive and excluded from the calculation of common stock equivalents.

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



	For the Years Ended December 31,
	2018		2017		2016
Net income available to common stockholders	$	98,928	$	62,726	$	49,694
Shares:
Weighted average common shares outstanding		48,854		42,685		35,081
Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method		361		441		332

Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation		49,215		43,126		35,413

Basic earnings per common share	$	2.02	$	1.47	$	1.42

Diluted earnings per common share	$	2.01	$	1.45	$	1.40

Operating Segments and Related Information

12 Months Ended

Dec. 31, 2018

Operating Segments and Related Information

Operating Segments and Related Information

Note 22. 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 banking center network in Illinois, St. Louis, Missouri metropolitan area, southwest Florida and through its banking center 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 information used by management to monitor and manage the financial performance of the Company. The accounting policies of the three segments are the same as those described in the summary of significant accounting policies in “Note 1. Significant Accounting Policies”. The Company accounts for intersegment revenue and transfers at current market value.

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


	Goodwill				Total Assets
As of December 31,	2018		2017		2018		2017

Banking	$	246,999	$	248,660	$	7,656,709	$	7,809,738
Remittance Processing		8,992		8,992		39,278		34,646
Wealth Management		11,694		11,694		20,992		32,077
Other		—		—		(14,622)		(15,821)
Totals	$	267,685	$	269,346	$	7,702,357	$	7,860,640


	Years ended December 31,
	2018		2017		2016
Net interest income:
Banking	$	248,291	$	208,184	$	156,374
Remittance Processing		67		60		55
Wealth Management		327		321		266
Other		(7,279)		(5,199)		(2,035)
Total net interest income	$	241,406	$	203,366	$	154,660

Non-interest income:
Banking	$	43,197	$	47,524	$	41,816
Remittance Processing		15,876		12,137		11,554
Wealth Management		31,621		27,270		23,563
Other		(701)		(2,457)		(1,764)
Total non-interest income	$	89,993	$	84,474	$	75,169

Non-interest expense:
Banking	$	154,455	$	139,521	$	117,293
Remittance Processing		10,749		8,704		8,668
Wealth Management		19,283		17,079		16,484
Other		8,556		9,122		5,417
Total non-interest expense	$	193,043	$	174,426	$	147,862

Income before income taxes:
Banking	$	132,604	$	110,884	$	75,347
Remittance Processing		5,194		3,493		2,941
Wealth Management		12,665		10,512		7,345
Other		(16,536)		(16,778)		(9,216)
Total income before income taxes	$	133,927	$	108,111	$	76,417

Net income:
Banking	$	97,369	$	65,704	$	48,691
Remittance Processing		3,710		2,007		1,758
Wealth Management		9,372		6,229		4,388
Other		(11,523)		(11,214)		(5,143)
Total net income	$	98,928	$	62,726	$	49,694

Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2018

Parent Company Only Financial Information

Parent Company Only Financial Information

Note 23. Parent Company Only Financial Information

Condensed financial data for First Busey Corporation is presented below (dollars in thousands).

BALANCE SHEETS


	December 31,
	2018		2017
ASSETS

Cash and due from subsidiary banks	$	72,007	$	54,946
Securities equity investments		6,162		836
Investments in subsidiaries:
Banks		1,088,710		1,012,396
Non-bank		—		26,319
Premises and equipment, net		67		41
Other assets		6,782		23,692
Total assets	$	1,173,728	$	1,118,230

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Senior notes, net of unamortized issuance costs	$	39,539	$	39,404
Subordinated notes, net of unamortized issuance costs		59,147		64,715
Junior subordinated debentures owed to unconsolidated trusts		71,155		71,008
Other liabilities		8,923		8,100
Total liabilities		178,764		183,227

Total stockholders' equity		994,964		935,003
Total liabilities and stockholders' equity	$	1,173,728	$	1,118,230

STATEMENTS OF INCOME


	Years Ended December 31,
	2018		2017		2016
Operating income:
Dividends from subsidiaries:
Pulaski Bank before bank merger	$	—	$	—	$	8,700
Non-bank before Busey Trust merger		17,000		4,000		4,000
Interest income		747		264		—
Security gains, net		2,322		—		—
Other income		8,096		6,890		5,664
Total operating income		28,165		11,154		18,364

Expense:
Salaries, wages and employee benefits		13,624		11,398		8,879
Interest expense		8,026		5,464		2,035
Operating expense		6,051		7,060		3,967
Total expense		27,701		23,922		14,881

Income (loss) before income tax benefit and equity in undistributed (in excess of) net income of subsidiaries		464		(12,768)		3,483
Income tax benefit		5,013		5,553		4,073
Income (loss) before equity in undistributed (in excess of) net income of subsidiaries		5,477		(7,215)		7,556

Equity in undistributed (in excess of) net income of subsidiaries:
Banks		103,309		68,635		41,980
Non-bank before Busey Trust merger		(9,858)		1,306		158
Net income	$	98,928	$	62,726	$	49,694

STATEMENTS OF CASH FLOWS


	Years Ended December 31,
	2018		2017		2016
Cash Flows from Operating Activities
Net income	$	98,928	$	62,726	$	49,694
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		212		428		198
Distributions less than net income of subsidiaries		(93,451)		(69,940)		(42,138)
Net security gains		(2,322)		—		—
Stock-based compensation		3,721		2,752		1,803
Changes in assets and liabilities:
Decrease (increase) in other assets		13,985		(1,105)		1,057
Increase (decrease) in other liabilities		1,361		(2,703)		(3,690)
Net cash provided by (used in) operating Activities		22,434		(7,842)		6,924

Cash Flows from Investing Activities
Net cash (outlay) received for business acquisition		—		(61,371)		602
Purchases of premises and equipment		(46)		—		(3)
Net cash (used in) provided by investing activities		(46)		(61,371)		599

Cash Flows from Financing Activities
Proceeds from charter amendment with subsidiary bank		40,000		40,000		30,000
Value of shares surrendered upon vesting to satisfy tax withholding obligations of stock based compensation		(817)		(1,414)		(809)
Cash dividends paid		(39,010)		(30,707)		(22,748)
Repayments of subordinated debt		(5,500)		(9,800)		—
Proceeds from issuance of senior and subordinated debt		—		98,312		—
Proceeds from stock options exercised		—		626		—
Common stock issuance costs		—		(365)		(246)
Net cash (used in) provided by financing activities		(5,327)		96,652		6,197

Net increase in cash and due from subsidiary banks		17,061		27,439		13,720
Cash and cash equivalents, beginning of period		54,946		27,507		13,787

Cash and cash equivalents, ending of period	$	72,007	$	54,946	$	27,507

- Definition

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

+ References + Details

Unaudited Interim Financial Data

12 Months Ended

Dec. 31, 2018

Unaudited Interim Financial Data

Unaudited Interim Financial Data

Note 24. Unaudited Interim Financial Data

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


	2018
	December 31		September 30		June 30		March 31

Total interest income	$	74,314	$	72,761	$	70,325	$	68,633
Total interest expense		13,811		11,987		9,953		8,876
Net interest income		60,503		60,774		60,372		59,757
Provision for loan losses		405		758		2,258		1,008
Total non-interest income		22,852		21,853		22,802		22,486
Total non-interest expense		48,769		45,929		47,305		51,040
Income before income taxes		34,181		35,940		33,611		30,195
Income taxes		8,891		9,081		8,749		8,278
Net income	$	25,290	$	26,859	$	24,862	$	21,917

Basic earnings per share	$	0.52	$	0.55	$	0.51	$	0.45
Diluted earnings per share	$	0.51	$	0.55	$	0.51	$	0.45


	2017
	December 31		September 30		June 30		March 31

Total interest income	$	70,847	$	62,519	$	46,009	$	44,927
Total interest expense		7,801		6,578		3,643		2,914
Net interest income		63,046		55,941		42,366		42,013
Provision for loan losses		2,809		1,494		500		500
Total non-interest income		23,561		20,837		20,062		20,014
Total non-interest expense		53,100		46,939		36,768		37,619
Income before income taxes		30,698		28,345		25,160		23,908
Income taxes		18,405		9,561		8,681		8,738
Net income	$	12,293	$	18,784	$	16,479	$	15,170

Basic earnings per share	$	0.25	$	0.41	$	0.43	$	0.40
Diluted earnings per share	$	0.25	$	0.41	$	0.43	$	0.39

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Significant Accounting Policies

Principles of consolidation

Use of Estimates

Use of estimates

Comprehensive income (loss)

Trust assets

Cash and cash equivalents

Securities

Securities classified as held to maturity are those debt securities that the Company has the intent and ability to hold to maturity and are carried at amortized cost.

Loans held for sale

Loan servicing

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

Portfolio loans

Troubled debt restructurings

Purchased credit-impaired loans

Allowance for loan losses

Premises and equipment, net


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

Long-lived assets

Other real estate owned

Goodwill and other intangibles

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

Cash surrender value of bank-owned life insurance

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

Transfers of financial assets

Income taxes

At December 31, 2018, the Company was not under examination by any tax authority.

Treasury Stock

Stock-based employee compensation

Segment disclosure

Business Combinations

Derivative Financial Instruments

Off-balance sheet arrangements

Fair value of financial instruments

Reclassifications

Subsequent events

Impact of recently adopted accounting standards

Recently issued accounting standards

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Significant Accounting Policies

Schedule of estimated useful lives for premises and equipment


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

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2018

Pulaski

Schedule of fair value estimates of assets acquired and liabilities assumed

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


	As Recorded by
	First Busey
Assets acquired:
Cash and cash equivalents	$	25,580
Securities		48,000
Loans held for sale		184,856
Portfolio loans		1,229,461
Premises and equipment		16,569
OREO		2,488
Goodwill		—
Other intangible assets		15,468
Other assets		70,243
Total assets acquired		1,592,665

Liabilities assumed:
Deposits		1,228,008
Other borrowings		206,746
Trust preferred securities		15,784
Other liabilities		23,982
Total liabilities assumed		1,474,520

Net assets acquired	$	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

Schedule of unaudited pro forma results of operations for the acquisition

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


	Pro Forma
	Twelve Months Ended
	December 31, 2016
Total revenues (net interest income plus non-interest income)	$	245,861
Net income		46,276
Diluted earnings per common share		1.20

First Community

Schedule of fair value estimates of assets acquired and liabilities assumed

The following table presents the fair value of First Community assets acquired and liabilities assumed as of July 2, 2017 (dollars in thousands):


	As Recorded by
	First Busey
Assets acquired:
Cash and cash equivalents	$	60,686
Securities		165,843
Loans held for sale		905
Portfolio loans		1,096,583
Premises and equipment		18,094
OREO		722
Other intangible assets		13,979
Other assets		41,755
Total assets acquired		1,398,567

Liabilities assumed:
Deposits		1,134,355
Other borrowings		125,751
Other liabilities		11,862
Total liabilities assumed		1,271,968

Net assets acquired	$	126,599

Consideration paid:
Cash	$	24,557
Cash payout of options and restricted stock units		6,182
Common stock		211,120
Fair value of stock options assumed		722
Total consideration paid	$	242,581

Goodwill	$	115,982

Schedule of unaudited pro forma results of operations for the acquisition

Only the merger related expenses that have been recognized are included in net income in the table below (dollars in thousands, except per share data):


	Pro Forma
	Twelve Months Ended December 31,
	2017		2016
Total revenues (net interest income plus non-interest income)	$	316,417	$	293,190
Net income		67,413		59,326
Diluted earnings per common share		1.47		1.29

Mid Illinois Bancorp, Inc.

Schedule of fair value estimates of assets acquired and liabilities assumed

The following table presents the fair value of Mid Illinois assets acquired and liabilities assumed as of October 1, 2017 (dollars in thousands):


	As Recorded by
	First Busey
Assets acquired:
Cash and cash equivalents	$	39,443
Securities		208,003
Loans held for sale		5,031
Portfolio loans		356,651
Premises and equipment		16,551
Other intangible assets		11,531
Other assets		29,564
Total assets acquired		666,774

Liabilities assumed:
Deposits		505,917
Other borrowings		61,040
Other liabilities		10,497
Total liabilities assumed		577,454

Net assets acquired	$	89,320

Consideration paid:
Cash	$	40,507
Common stock		97,702
Total consideration paid	$	138,209

Goodwill	$	48,889

The Banc Ed Corp.

Schedule of fair value estimates of assets acquired and liabilities assumed

The following table presents the estimated fair value of Banc Ed assets acquired and liabilities assumed as of January 31, 2019 (dollars in thousands):


	Estimated by
	First Busey
Assets acquired:
Cash and cash equivalents	$	42,013
Securities		692,692
Loans held for sale		2,157
Portfolio loans		870,838
Premises and equipment		32,203
Other intangible assets		28,047
Mortgage servicing rights		6,946
Other assets		62,342
Total assets acquired		1,737,238

Liabilities assumed:
Deposits		1,439,203
Other borrowings		63,439
Other liabilities		25,214
Total liabilities assumed		1,527,856

Net assets acquired	$	209,382

Consideration paid:
Cash	$	91,400
Common stock		166,515
Total consideration paid	$	257,915

Goodwill	$	48,533

Securities (Tables)

12 Months Ended

Dec. 31, 2018

Securities

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

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


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2018:	Cost		Gains		Losses		Value
Available for sale
U.S. Treasury securities	$	25,824	$	1	$	(414)	$	25,411
Obligations of U.S. government corporations and agencies		53,096		7		(761)		52,342
Obligations of states and political subdivisions		171,131		484		(1,571)		170,044
Commercial mortgage-backed securities		2,003		—		(61)		1,942
Residential mortgage-backed securities		322,646		245		(7,143)		315,748
Corporate debt securities		132,513		61		(376)		132,198
Total	$	707,213	$	798	$	(10,326)	$	697,685

Held to maturity
Obligations of states and political subdivisions	$	33,947	$	68	$	(87)	$	33,928
Commercial mortgage-backed securities		59,054		11		(1,003)		58,062
Residential mortgage-backed securities		515,659		1,748		(6,037)		511,370
Total	$	608,660	$	1,827	$	(7,127)	$	603,360


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2017:	Cost		Gains		Losses		Value
Available for sale
U.S. Treasury securities	$	60,829	$	7	$	(488)	$	60,348
Obligations of U.S. government corporations and agencies		104,807		1		(1,143)		103,665
Obligations of states and political subdivisions		280,216		1,160		(1,177)		280,199
Residential mortgage-backed securities		400,661		612		(3,837)		397,436
Corporate debt securities		30,946		132		(44)		31,034
Total	$	877,459	$	1,912	$	(6,689)	$	872,682

Held to maturity
Obligations of states and political subdivisions	$	41,300	$	228	$	(64)	$	41,464
Commercial mortgage-backed securities		60,474		41		(297)		60,218
Residential mortgage-backed securities		341,776		25		(2,431)		339,370
Total	$	443,550	$	294	$	(2,792)	$	441,052

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

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


	Available for sale				Held to maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	60,006	$	59,759	$	8,103	$	8,088
Due after one year through five years		223,813		222,206		55,638		55,007
Due after five years through ten years		136,411		135,118		29,260		28,895
Due after ten years		286,983		280,602		515,659		511,370
Total	$	707,213	$	697,685	$	608,660	$	603,360

Schedule of realized gains and losses related to sales of securities

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


	For the Years Ended December 31,
	2018		2017		2016
Gross security gains	$	—	$	1,259	$	1,383
Gross security (losses)		(1,991)		(116)		(151)
Security gains (losses), net(1)	$	(1,991)	$	1,143	$	1,232

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


	Continuous unrealized				Continuous unrealized
	losses existing for less than				losses existing for greater
	12 months, gross				than 12 months, gross				Total, gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2018:	Value		Losses		Value		Losses		Value		Losses
Available for sale
U.S. Treasury securities	$	995	$	(4)	$	24,343	$	(410)	$	25,338	$	(414)
Obligations of U.S. government corporations and agencies		749		(3)		50,744		(758)		51,493		(761)
Obligations of states and political subdivisions		49,893		(460)		77,651		(1,111)		127,544		(1,571)
Commercial mortgage-backed securities		—		—		1,942		(61)		1,942		(61)
Residential mortgage-backed securities		48,387		(496)		247,573		(6,647)		295,960		(7,143)
Corporate debt securities		90,713		(268)		15,083		(108)		105,796		(376)
Total temporarily impaired securities	$	190,737	$	(1,231)	$	417,336	$	(9,095)	$	608,073	$	(10,326)

Held to maturity
Obligations of states and political subdivisions	$	9,531	$	(33)	$	9,538	$	(54)	$	19,069	$	(87)
Commercial mortgage-backed securities		12,067		(212)		45,041		(791)		57,108		(1,003)
Residential mortgage-backed securities		77,071		(974)		245,128		(5,063)		322,199		(6,037)
Total temporarily impaired securities	$	98,669	$	(1,219)	$	299,707	$	(5,908)	$	398,376	$	(7,127)


	Continuous unrealized				Continuous unrealized
	losses existing for less than				losses existing for greater
	12 months, gross				than 12 months, gross				Total, gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2017:	Value		Losses		Value		Losses		Value		Losses
Available for sale
U.S. Treasury securities	$	59,773	$	(488)	$	—	$	—	$	59,773	$	(488)
Obligations of U.S. government corporations and agencies		78,610		(636)		24,831		(507)		103,441		(1,143)
Obligations of states and political subdivisions		162,213		(1,027)		12,045		(150)		174,258		(1,177)
Residential mortgage-backed securities		223,261		(1,428)		90,930		(2,409)		314,191		(3,837)
Corporate debt securities		16,176		(44)		—		—		16,176		(44)
Total temporarily impaired securities	$	540,033	$	(3,623)	$	127,806	$	(3,066)	$	667,839	$	(6,689)

Held to maturity
Obligations of states and political subdivisions	$	17,939	$	(64)	$	—	$	—	$	17,939	$	(64)
Commercial mortgage-backed securities		44,514		(214)		2,374		(83)		46,888		(297)
Residential mortgage-backed securities		277,826		(2,431)		—		—		277,826		(2,431)
Total temporarily impaired securities	$	340,279	$	(2,709)	$	2,374	$	(83)	$	342,653	$	(2,792)

General obligation bonds

Securities

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


December 31, 2018:						Average Exposure
	Number of		Amortized	Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
Illinois	70	$	56,324	$	55,999	$	800
Wisconsin	20		12,624		12,544		627
Texas	36		21,637		21,428		595
Michigan	19		10,799		10,890		573
Ohio	17		9,543		9,545		561
Pennsylvania	10		6,317		6,298		630
Missouri	8		5,202		5,172		646
California	6		8,303		8,322		1,387
Other	74		41,274		40,906		553
Total general obligations bonds	260	$	172,023	$	171,104	$	658


December 31, 2017:						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
Illinois	97	$	95,340	$	95,344	$	983
Wisconsin	41		27,852		27,809		678
Texas	46		27,485		27,514		598
Michigan	34		19,641		19,849		584
Ohio	20		15,172		15,162		758
Pennsylvania	18		12,189		12,174		676
New Jersey	15		7,755		7,760		517
Missouri	10		5,759		5,747		575
Minnesota	8		5,657		5,667		708
Other	92		54,649		54,633		594
Total general obligations bonds	381	$	271,499	$	271,659	$	713

Revenue bonds

Securities

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


December 31, 2018:						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
Indiana	10	$	9,588	$	9,582	$	958
Other	33		23,467		23,286		705
Total revenue bonds	43	$	33,055	$	32,868	$	764


December 31, 2017:						Average Exposure
	Number of	Amortized		Fair		Per Issuer
U.S. State	Issuers	Cost		Value		(Fair Value)
Indiana	14	$	12,001	$	12,054	$	861
Missouri	6		7,376		7,336		1,223
Illinois	7		6,477		6,456		922
Other	38		24,163		24,158		636
Total revenue bonds	65	$	50,017	$	50,004	$	769

Loans held for sale (Tables)

12 Months Ended

Dec. 31, 2018

Loans held for sale

Summary of mortgage revenue

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


	December 31,
	2018		2017		2016
Premiums received on sales of mortgage loans, including fair value adjustments	$	12,105	$	42,598	$	43,119
Less direct origination costs		(8,683)		(33,363)		(32,793)
Less provisions to liability for loans sold		(132)		(225)		(175)
Mortgage servicing revenues, net of servicing expense		2,255		2,130		1,801
Mortgage revenue	$	5,545	$	11,140	$	11,952

Mortgage Loan Servicing (Tables)

12 Months Ended

Dec. 31, 2018

Mortgage Loan Servicing

Summary of mortgage servicing rights capitalized, acquired and amortized

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


	For the Years Ended December 31,
	2018		2017		2016

Mortgage servicing rights capitalized	$	1,166	$	1,366	$	1,488
Mortgage servicing rights acquired	$	—	$	751	$	—
Mortgage servicing rights amortized	$	1,531	$	1,584	$	1,921

Portfolio loans and allowance for loan losses (Tables)

12 Months Ended

Dec. 31, 2018

Portfolio loans and allowance for loan losses

Schedule of distribution of portfolio loans

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


	December 31,		December 31,
	2018		2017
Commercial	$	1,405,106	$	1,414,631
Commercial real estate		2,366,823		2,354,684
Real estate construction		288,197		261,506
Retail real estate		1,480,133		1,460,801
Retail other		28,169		27,878
Portfolio loans	$	5,568,428	$	5,519,500

Less allowance for loan losses		50,648		53,582
Portfolio loans, net	$	5,517,780	$	5,465,918

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

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


	December 31, 2018
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual
Commercial	$	1,126,257	$	172,449	$	47,000	$	42,532	$	17,953
Commercial real estate		2,106,711		137,214		85,148		36,205		10,298
Real estate construction		268,069		14,562		3,899		1,888		18
Retail real estate		1,448,964		6,425		6,792		5,435		6,698
Retail other		26,707		—		—		—		30
Total	$	4,976,708	$	330,650	$	142,839	$	86,060	$	34,997


	December 31, 2017
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual
Commercial	$	1,175,421	$	141,776	$	51,366	$	43,933	$	5,285
Commercial real estate		2,169,420		130,056		21,151		36,482		11,997
Real estate construction		212,952		41,292		3,880		3,071		608
Retail real estate		1,436,156		6,883		5,162		4,135		6,714
Retail other		28,300		9		—		7		20
Total	$	5,022,249	$	320,016	$	81,559	$	87,628	$	24,624

Summary 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):


	December 31, 2018
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Commercial	$	158	$	140	$	775	$	17,953
Commercial real estate		148		558		—		10,298
Real estate construction		121		—		58		18
Retail real estate		4,578		1,368		766		6,698
Retail other		48		2		2		30
Total	$	5,053	$	2,068	$	1,601	$	34,997


	December 31, 2017
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Commercial	$	1,615	$	323	$	1,808	$	5,285
Commercial real estate		1,856		2,737		—		11,997
Real estate construction		—		—		—		608
Retail real estate		4,840		1,355		933		6,714
Retail other		166		5		—		20
Total	$	8,477	$	4,420	$	2,741	$	24,624

Summary of restructured loans

A summary of restructured loans is as follows (dollars in thousands):


	December 31,		December 31,
	2018		2017
In compliance with modified terms	$	8,319	$	9,873
30 — 89 days past due		127		108
Included in non-performing loans		392		1,919
Total	$	8,838	$	11,900

Schedule of details of impaired loans, segregated by category


	December 31, 2018
	Unpaid		Recorded
	Contractual		Investment		Recorded		Total				Average
	Principal		with No		Investment		Recorded		Related		Recorded
	Balance		Allowance		with Allowance		Investment		Allowance		Investment
Commercial	$	21,442	$	6,858	$	12,001	$	18,859	$	4,319	$	13,364
Commercial real estate		19,079		13,082		4,498		17,580		1,181		18,077
Real estate construction		478		453		—		453		—		712
Retail real estate		14,418		13,196		61		13,257		61		14,110
Retail other		117		33		—		33		—		40
Total	$	55,534	$	33,622	$	16,560	$	50,182	$	5,561	$	46,303


	December 31, 2017
	Unpaid		Recorded
	Contractual		Investment		Recorded		Total				Average
	Principal		with No		Investment		Recorded		Related		Recorded
	Balance		Allowance		with Allowance		Investment		Allowance		Investment
Commercial	$	10,604	$	7,192	$	191	$	7,383	$	138	$	10,184
Commercial real estate		22,218		16,472		1,964		18,436		704		15,195
Real estate construction		1,040		1,016		—		1,016		—		692
Retail real estate		18,517		14,957		25		14,982		25		13,009
Retail other		40		20		—		20		—		44
Total	$	52,419	$	39,657	$	2,180	$	41,837	$	867	$	39,124

Schedule of activity on the allowance for loan losses


	Year Ended December 31, 2018
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	14,779	$	21,813	$	2,861	$	13,783	$	346	$	53,582
Provision for loan losses		5,767		3,227		(259)		(4,824)		518		4,429
Charged-off		(3,968)		(4,352)		(97)		(1,815)		(712)		(10,944)
Recoveries		1,251		449		218		1,327		336		3,581
Ending balance	$	17,829	$	21,137	$	2,723	$	8,471	$	488	$	50,648


	Year Ended December 31, 2017
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	13,303	$	20,623	$	1,870	$	11,648	$	351	$	47,795
Provision for loan losses		(1,091)		2,439		581		3,263		111		5,303
Charged-off		(994)		(1,965)		(48)		(2,691)		(541)		(6,239)
Recoveries		3,561		716		458		1,563		425		6,723
Ending balance	$	14,779	$	21,813	$	2,861	$	13,783	$	346	$	53,582


	Year Ended December 31, 2016
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	13,115	$	18,604	$	1,763	$	13,714	$	291	$	47,487
Provision for loan losses		5,520		2,366		(310)		(2,277)		251		5,550
Charged-off		(6,598)		(470)		(24)		(2,106)		(458)		(9,656)
Recoveries		1,266		123		441		2,317		267		4,414
Ending balance	$	13,303	$	20,623	$	1,870	$	11,648	$	351	$	47,795

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 December 31, 2018
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Allowance for loan losses
Ending balance attributed to:
Loans individually evaluated for impairment	$	4,319	$	1,181	$	—	$	61	$	—	$	5,561
Loans collectively evaluated for impairment		13,510		19,956		2,723		8,410		488		45,087
Ending balance	$	17,829	$	21,137	$	2,723	$	8,471	$	488	$	50,648

Loans:
Loans individually evaluated for impairment	$	18,441	$	15,318	$	453	$	13,159	$	33	$	47,404
Loans collectively evaluated for impairment		1,386,247		2,349,243		287,744		1,466,876		28,136		5,518,246
PCI loans evaluated for impairment		418		2,262		—		98		—		2,778
Ending balance	$	1,405,106	$	2,366,823	$	288,197	$	1,480,133	$	28,169	$	5,568,428


	As of December 31, 2017
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Allowance for loan losses
Ending balance attributed to:
Loans individually evaluated for impairment	$	138	$	704	$	—	$	25	$	—	$	867
Loans collectively evaluated for impairment		14,641		21,109		2,861		13,758		346		52,715
Ending balance	$	14,779	$	21,813	$	2,861	$	13,783	$	346	$	53,582

Loans:
Loans individually evaluated for impairment	$	6,572	$	11,491	$	435	$	12,673	$	20	$	31,191
Loans collectively evaluated for impairment		1,407,248		2,336,248		260,490		1,445,819		27,858		5,477,663
PCI loans evaluated for impairment		811		6,945		581		2,309		—		10,646
Ending balance	$	1,414,631	$	2,354,684	$	261,506	$	1,460,801	$	27,878	$	5,519,500

OREO (Tables)

12 Months Ended

Dec. 31, 2018

OREO.

Summary of activity related to OREO

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


	Year Ended		Year Ended
	December 31, 2018		December 31, 2017
OREO:
Beginning balance	$	1,283	$	2,518
Additions, transfers from loans		4,025		1,417
Additions, fair value from First Community acquisition		—		722
Additions, fair value from Mid Illinois acquisition		—		60
Proceeds from sales of OREO		(5,298)		(5,024)
Gain on sales of OREO		384		1,632
Valuation allowance for OREO		(18)		(42)
Ending balance	$	376	$	1,283

Premises and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2018

Premises and Equipment, net

Summary of premises and equipment, net

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


	December 31,
	2018		2017
Land and improvements	$	36,453	$	36,249
Buildings and improvements		108,137		104,656
Furniture and equipment		48,060		42,323
		192,650		183,228
Less accumulated depreciation		74,978		66,315
Total premises and equipment, net	$	117,672	$	116,913

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Other Intangible Assets

Schedule of carrying amount of goodwill by operating segment

The carrying amount of goodwill by operating segment, at December 31, 2018 and 2017 is as follows (dollars in thousands):


	Balance at		Balance at
Goodwill:	December 31, 2018		December 31, 2017
Banking	$	246,999	$	248,660
Remittance Processing		8,992		8,992
Wealth Management		11,694		11,694
Total goodwill	$	267,685	$	269,346

Schedule of other intangible asset disclosures

Other intangible asset disclosures are as follows (dollars in thousands):


	Balance at				Balance at
	December 31,		2018		December 31,		2017
	2018		Amortization		2017		Amortization
Amortized intangible assets:
Core deposit intangible assets	$	31,836	$	5,535	$	37,371	$	4,529
Customer relationship intangible assets		1,037		319		1,356		716
	$	32,873	$	5,854	$	38,727	$	5,245

Schedule of carrying amount of amortized intangible assets


			Customer
	Core deposit		relationship
	intangible		intangible
As of December 31, 2018:
Gross carrying amount	$	63,029	$	13,168
Accumulated amortization		31,193		12,131
	$	31,836	$	1,037

Estimated amortization expense at December 31, 2018:
2019	$	5,108	$	276
2020		4,680		233
2021		4,251		191
2022		3,820		148
2023		3,387		106
Thereafter		10,590		83
	$	31,836	$	1,037

Deposits (Tables)

12 Months Ended

Dec. 31, 2018

Deposits

Schedule of composition of deposits

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


	December 31, 2018		December 31, 2017
Demand deposits, noninterest-bearing	$	1,464,700	$	1,597,421
Interest-bearing transaction deposits		1,435,574		1,166,170
Saving deposits and money market deposits		1,852,044		2,026,212
Time deposits		1,497,003		1,336,162
Total	$	6,249,321	$	6,125,965

Schedule of maturities of time deposits

As of December 31, 2018, the scheduled maturities of time deposits are as follows (dollars in thousands):


2019	$	996,048
2020		305,167
2021		83,220
2022		72,048
2023		40,504
Thereafter		16
	$	1,497,003

Borrowings (Tables)

12 Months Ended

Dec. 31, 2018

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):


	December 31,			December 31,
	2018			2017
Securities sold under agreements to repurchase
Balance at end of period	$	185,796		$	304,566
Weighted average interest rate at end of period		1.05	%		0.57	%
Maximum outstanding at any month end in year-to-date period	$	267,596		$	304,566
Average daily balance for the year-to-date period	$	234,239		$	213,527
Weighted average interest rate during period(1)		0.69	%		0.46	%

Short-term borrowings, FHLB advances
Balance at end of period	$	—		$	220,000
Weighted average interest rate at end of period		—	%		1.42	%
Maximum outstanding at any month end in year-to-date period	$	225,000		$	234,600
Average daily balance for the year-to-date period	$	81,438		$	84,201
Weighted average interest rate during period(1)		1.80	%		1.20	%

(1)

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

Summary of long-term debt

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


	December 31,		December 31,
	2018		2017
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.	$	50,000	$	50,000

- 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=84159872&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=75038535&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=84159872&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=84159872&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=84159872&loc=d3e21521-112644

+ Details

Regulatory Capital (Tables)

12 Months Ended

Dec. 31, 2018

Regulatory Capital

Schedule of applicable holding company and bank regulatory capital requirements

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


									Minimum
					Minimum				To Be Well
	Actual				Capital Requirement				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2018:
Total Capital (to Risk Weighted Assets)
Consolidated	$	894,572	14.83	%	$	482,638	8.00	%	$	603,297	10.00	%
Busey Bank	$	854,351	14.19	%	$	481,701	8.00	%	$	602,126	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	783,924	12.99	%	$	361,978	6.00	%	$	482,638	8.00	%
Busey Bank	$	803,703	13.35	%	$	361,276	6.00	%	$	481,701	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	709,924	11.77	%	$	271,484	4.50	%	$	392,143	6.50	%
Busey Bank	$	803,703	13.35	%	$	270,957	4.50	%	$	391,382	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated	$	783,924	10.36	%	$	302,704	4.00	%		N/A	N/A
Busey Bank	$	803,703	10.64	%	$	302,232	4.00	%	$	377,789	5.00	%

					Minimum				Minimum
					Capital Requirement plus				To Be Well
	Actual				Capital Buffer				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2017:
Total Capital (to Risk Weighted Assets)
Consolidated	$	837,183	14.15	%	$	473,310	8.00	%	$	591,638	10.00	%
Busey Bank	$	704,807	12.78	%	$	441,062	8.00	%	$	551,327	10.00	%
South Side Bank	$	84,914	22.61	%	$	30,049	8.00	%	$	37,561	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	718,101	12.14	%	$	354,983	6.00	%	$	473,310	8.00	%
Busey Bank	$	651,432	11.82	%	$	330,797	6.00	%	$	441,062	8.00	%
South Side Bank	$	84,707	22.55	%	$	22,537	6.00	%	$	30,049	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	644,633	10.90	%	$	266,237	4.50	%	$	384,565	6.50	%
Busey Bank	$	651,432	11.82	%	$	248,098	4.50	%	$	358,363	6.50	%
South Side Bank	$	84,707	22.55	%	$	16,903	4.50	%	$	24,415	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated	$	718,101	9.78	%	$	293,588	4.00	%		N/A	N/A
Busey Bank	$	651,432	9.80	%	$	265,847	4.00	%	$	332,309	5.00	%
South Side Bank	$	84,707	12.75	%	$	26,571	4.00	%	$	33,214	5.00	%

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Schedule of the components of income taxes

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


	Years Ended December 31,
	2018		2017		2016
Current expense:
Federal	$	18,076	$	27,168	$	15,486
State		9,807		4,117		785
Deferred expense:
Federal		5,068		11,583		6,147
State		2,048		2,517		4,305
Total income tax expense	$	34,999	$	45,385	$	26,723

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


	Years Ended December 31,
	2018		2017		2016
	% of		% of		% of
	Pretax		Pretax		Pretax
	Income		Income		Income
Income tax at federal statutory rate	21.0	%	35.0	%	35.0	%
Effect of:
TCJA	—	%	7.5	%	—	%
Tax-exempt interest, net	(1.3)	%	(2.1)	%	(2.4)	%
Stock incentive	(0.3)	%	(0.5)	%	—	%
State income taxes, net	7.3	%	4.0	%	4.3	%
Income on bank owned life insurance	(0.6)	%	(0.9)	%	(1.0)	%
Other, net	—	%	(1.0)	%	(0.9)	%
	26.1	%	42.0	%	35.0	%

Schedule of the deferred tax assets and liabilities

Net deferred taxes at December 31, 2018 and 2017 in the accompanying Consolidated Balance Sheets, include the following amounts of deferred tax assets and liabilities (dollars in thousands).


	2018		2017
Deferred tax assets:
Unrealized losses on securities available for sale	$	2,716	$	1,362
Allowance for loan losses		14,885		15,751
Stock-based compensation		2,208		1,869
Deferred compensation		1,454		2,455
Affordable housing partnerships and other investments		691		970
Purchase accounting adjustments		4,563		7,712
Accrued vacation		744		604
Employee costs		260		759
Other		1,095		1,336
	$	28,616	$	32,818

Deferred tax liabilities:
Basis in premises and equipment		(1,213)		(1,909)
Affordable housing partnerships and other investments		(1,868)		(1,769)
Purchase accounting adjustments		(1,102)		(1,262)
Mortgage servicing assets		(1,159)		(1,120)
Basis in core deposit and customer intangible assets		(9,299)		(10,955)
Deferred loan origination costs		(1,593)		(1,168)
Other		(984)		—
	$	(17,218)	$	(18,183)
Net operating loss carryforward, net of valuation allowance		33		2,661
Net deferred tax assets	$	11,431	$	17,296

Operating Segments and Related Information (Tables)

12 Months Ended

Dec. 31, 2018

Operating Segments and Related Information

Summary of information relating to operating segments

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


	Goodwill				Total Assets
As of December 31,	2018		2017		2018		2017

Banking	$	246,999	$	248,660	$	7,656,709	$	7,809,738
Remittance Processing		8,992		8,992		39,278		34,646
Wealth Management		11,694		11,694		20,992		32,077
Other		—		—		(14,622)		(15,821)
Totals	$	267,685	$	269,346	$	7,702,357	$	7,860,640


	Years ended December 31,
	2018		2017		2016
Net interest income:
Banking	$	248,291	$	208,184	$	156,374
Remittance Processing		67		60		55
Wealth Management		327		321		266
Other		(7,279)		(5,199)		(2,035)
Total net interest income	$	241,406	$	203,366	$	154,660

Non-interest income:
Banking	$	43,197	$	47,524	$	41,816
Remittance Processing		15,876		12,137		11,554
Wealth Management		31,621		27,270		23,563
Other		(701)		(2,457)		(1,764)
Total non-interest income	$	89,993	$	84,474	$	75,169

Non-interest expense:
Banking	$	154,455	$	139,521	$	117,293
Remittance Processing		10,749		8,704		8,668
Wealth Management		19,283		17,079		16,484
Other		8,556		9,122		5,417
Total non-interest expense	$	193,043	$	174,426	$	147,862

Income before income taxes:
Banking	$	132,604	$	110,884	$	75,347
Remittance Processing		5,194		3,493		2,941
Wealth Management		12,665		10,512		7,345
Other		(16,536)		(16,778)		(9,216)
Total income before income taxes	$	133,927	$	108,111	$	76,417

Net income:
Banking	$	97,369	$	65,704	$	48,691
Remittance Processing		3,710		2,007		1,758
Wealth Management		9,372		6,229		4,388
Other		(11,523)		(11,214)		(5,143)
Total net income	$	98,928	$	62,726	$	49,694

Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2018

Share-based Compensation

Schedule of status of and changes in the Company's stock option awards


	2018			2017			2016
		Weighted-			Weighted-			Weighted-
		Average			Average			Average
		Exercise			Exercise			Exercise
	Shares	Price		Shares	Price		Shares	Price

Outstanding at beginning of year	213,428	$	16.97	209,382	$	15.13	96,568	$	43.64
Converted options from Pulaski	—		—	—		—	309,700		13.29
Converted options from First Community	—		—	121,360		21.41	—		—
Exercised	(105,275)		13.38	(99,605)		13.74	(145,774)		15.09
Forfeited	(16,014)		22.02	(5,279)		23.53	(394)		13.87
Expired	(4,539)		12.90	(12,430)		52.40	(50,718)		58.23
Outstanding at end of year	87,600	$	20.58	213,428	$	16.97	209,382	$	15.13

Exercisable at end of year	70,034	$	19.84	167,144	$	15.16	209,382	$	15.13

Summary of stock options outstanding by range of exercise prices

The following table summarizes information about stock options outstanding at December 31, 2018:


								Options
		Options Outstanding						Exercisable
					Weighted-
			Weighted-		Average
Range of			Average		Remaining
Exercise			Exercise		Contractual	Intrinsic			Intrinsic
Prices		Number	Price		Life	Value		Number	Value
$	10.43-13.47	21,173	$	12.31	2.16			21,173
	17.05	924		17.05	1.05			924
	21.03-23.53	65,503		23.30	6.32			47,937
		87,600	$	20.58	5.26	$	312	70,034	$	295

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


	2018			2017			2016
		Weighted-			Weighted-			Weighted-
		Average			Average			Average
		Grant Date			Grant Date			Grant Date
	Shares	Fair Value		Shares	Fair Value		Shares	Fair Value

Outstanding at beginning of year	587,763	$	22.68	552,610	$	18.45	424,930	$	17.10
Reclass DSU to RSU	23,977		25.47	—		—	—		—
Converted units from Pulaski	—		—	—		—	53,004		14.25
Granted	172,571		31.70	160,532		30.34	126,669		22.44
Dividend equivalents earned	16,879		29.96	13,479		30.14	14,935		21.09
Vested	(104,512)		16.40	(116,498)		14.73	(54,913)		14.61
Forfeited	(6,183)		24.84	(22,360)		19.20	(12,015)		15.19
Outstanding at end of year	690,495	$	26.14	587,763	$	22.68	552,610	$	18.45

Summary of the changes in the Company’s stock unit awards


	2018			2017			2016
		Weighted-			Weighted-			Weighted-
		Average			Average			Average
		Grant Date			Grant Date			Grant Date
	Shares	Fair Value		Shares	Fair Value		Shares	Fair Value

Non-vested at beginning of year	42,411	$	25.47	35,038	$	21.04	24,763	$	19.25
Reclass DSU to RSU	(23,977)		25.47	—		—	—		—
Granted	20,500		31.70	24,100		29.61	22,428		22.44
Dividend equivalents earned	2,300		29.99	2,426		30.22	2,576		21.20
Vested	(20,584)		29.68	(19,153)		23.18	(14,729)		20.18
Forfeited	(201)		31.67	—		—	—		—
Non-vested at end of year	20,449	$	27.93	42,411	$	25.47	35,038	$	21.04
Outstanding at end of year	86,700	$	22.42	119,985	$	21.00	93,459	$	18.54

Transactions with Related Parties (Tables)

12 Months Ended

Dec. 31, 2018

Transactions with Related Parties

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

The following is an analysis of the changes in loans to related parties as a group during the year ended December 31, 2018 (dollars in thousands):


Balance at beginning of year	$	46,915
Change in relationship		(5,891)
New loans/advances		4,795
Repayments		(13,025)
Balance at end of year	$	32,794

Outstanding Commitments and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Outstanding Commitments and Contingent Liabilities

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


	December 31, 2018		December 31, 2017
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	1,398,483	$	1,300,294
Standby letters of credit		32,156		37,231

Schedule of commitments before considering renewal options

Rent commitments before considering renewal options that generally are present, were as follows at December 31, 2018 (dollars in thousands):


2019	$	1,716
2020		1,571
2021		1,019
2022		795
2023		503
Thereafter		1,189
	$	6,793

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Interest rate lock commitments and forward sales commitments

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


	December 31, 2018		December 31, 2017
Fair value recorded in other assets	$	624	$	675
Fair value recorded in other liabilities		1,205		2,148

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


	December 31, 2018		December 31, 2017		December 31, 2016

Gross gains	$	3,494	$	14,724	$	25,270
Gross (losses)		(3,874)		(13,250)		(24,783)
Net gains (losses)	$	(380)	$	1,474	$	487

Interest rate swap

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


		December 31, 2018		December 31, 2017
Fair value recorded in other assets	$	1,438	$	262
Fair value recorded in other liabilities		1,438		262

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


		December 31, 2018		December 31, 2017
Gross gains	$	1,176	$	262
Gross losses		(1,176)		(262)
Net gains (losses)	$	—	$	—

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Measurements

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
December 31, 2018
Impaired loans	$	—	$	—	$	10,999	$	10,999
OREO		—		—		55		55
Bank property held for sale		—		—		1,832		1,832


December 31, 2017
Impaired loans	$	—	$	—	$	1,313	$	1,313
OREO(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)
December 31, 2018
Impaired loans	$	10,999	Appraisal of collateral	Appraisal adjustments	- 3.3	%	to	- 100.0	%
					(-24.1)%
OREO		55	Appraisal of collateral	Appraisal adjustments	- 25.0	%	to	- 100.0	%
					(-65.0)%
Bank property held for sale		1,832	Appraisal of collateral or real estate listing price	Appraisal adjustments	- 0.0	%	to	- 35.1	%
					(-28.3)%

December 31, 2017
Impaired loans	$	1,313	Appraisal of collateral	Appraisal adjustments	- 20.3	%	to	- 100.0	%
					(-30.8)%
OREO(1)		—	Appraisal of collateral	Appraisal adjustments	-100.0%
					(-100.0)%

OREO fair value was less than one thousand dollars.

Schedule of estimated fair values of financial instruments


	December 31, 2018				December 31, 2017
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Level 1 inputs:
Cash and cash equivalents	$	239,973	$	239,973	$	353,272	$	353,272
Level 2 inputs:
Securities held to maturity		608,660		603,360		443,550		441,052
Accrued interest receivable		22,314		22,314		22,591		22,591
Level 3 inputs:
Portfolio loans, net		5,517,780		5,473,063		5,465,918		5,361,406
Mortgage servicing rights		3,315		11,051		3,680		8,635
Other servicing rights		781		1,443		280		901

Financial liabilities:
Level 2 inputs:
Time deposits(2)	$	1,497,003	$	1,482,301	$	—	$	—
Deposits(2)		—		—		6,125,965		6,119,135
Securities sold under agreements to repurchase		185,796		185,796		304,566		304,566
Short-term borrowings		—		—		220,000		220,000
Long-term debt		50,000		49,873		50,000		50,000
Junior subordinated debt owed to unconsolidated trusts		71,155		65,182		71,008		71,008
Accrued interest payable		6,568		6,568		2,581		2,581
Level 3 inputs:
Senior notes, net of unamortized issuance costs		39,539		39,452		39,404		39,104
Subordinated notes, net of unamortized issuance costs		59,147		58,186		64,715		64,350

In connection with the adoption of ASU 2016-01 in 2018, only deposits with stated maturities are required to be disclosed.

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2018

Earnings Per Share

Schedule of computation of earnings per common share

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



	For the Years Ended December 31,
	2018		2017		2016
Net income available to common stockholders	$	98,928	$	62,726	$	49,694
Shares:
Weighted average common shares outstanding		48,854		42,685		35,081
Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method		361		441		332

Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation		49,215		43,126		35,413

Basic earnings per common share	$	2.02	$	1.47	$	1.42

Diluted earnings per common share	$	2.01	$	1.45	$	1.40

Operating Segments and Related Information (Tables)

12 Months Ended

Dec. 31, 2018

Operating Segments and Related Information

Summary of information relating to operating segments

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


	Goodwill				Total Assets
As of December 31,	2018		2017		2018		2017

Banking	$	246,999	$	248,660	$	7,656,709	$	7,809,738
Remittance Processing		8,992		8,992		39,278		34,646
Wealth Management		11,694		11,694		20,992		32,077
Other		—		—		(14,622)		(15,821)
Totals	$	267,685	$	269,346	$	7,702,357	$	7,860,640


	Years ended December 31,
	2018		2017		2016
Net interest income:
Banking	$	248,291	$	208,184	$	156,374
Remittance Processing		67		60		55
Wealth Management		327		321		266
Other		(7,279)		(5,199)		(2,035)
Total net interest income	$	241,406	$	203,366	$	154,660

Non-interest income:
Banking	$	43,197	$	47,524	$	41,816
Remittance Processing		15,876		12,137		11,554
Wealth Management		31,621		27,270		23,563
Other		(701)		(2,457)		(1,764)
Total non-interest income	$	89,993	$	84,474	$	75,169

Non-interest expense:
Banking	$	154,455	$	139,521	$	117,293
Remittance Processing		10,749		8,704		8,668
Wealth Management		19,283		17,079		16,484
Other		8,556		9,122		5,417
Total non-interest expense	$	193,043	$	174,426	$	147,862

Income before income taxes:
Banking	$	132,604	$	110,884	$	75,347
Remittance Processing		5,194		3,493		2,941
Wealth Management		12,665		10,512		7,345
Other		(16,536)		(16,778)		(9,216)
Total income before income taxes	$	133,927	$	108,111	$	76,417

Net income:
Banking	$	97,369	$	65,704	$	48,691
Remittance Processing		3,710		2,007		1,758
Wealth Management		9,372		6,229		4,388
Other		(11,523)		(11,214)		(5,143)
Total net income	$	98,928	$	62,726	$	49,694

Parent Company Only Financial Information (Tables)

12 Months Ended

Dec. 31, 2018

Parent Company Only Financial Information

Balance Sheets

Condensed financial data for First Busey Corporation is presented below (dollars in thousands).

BALANCE SHEETS


	December 31,
	2018		2017
ASSETS

Cash and due from subsidiary banks	$	72,007	$	54,946
Securities equity investments		6,162		836
Investments in subsidiaries:
Banks		1,088,710		1,012,396
Non-bank		—		26,319
Premises and equipment, net		67		41
Other assets		6,782		23,692
Total assets	$	1,173,728	$	1,118,230

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Senior notes, net of unamortized issuance costs	$	39,539	$	39,404
Subordinated notes, net of unamortized issuance costs		59,147		64,715
Junior subordinated debentures owed to unconsolidated trusts		71,155		71,008
Other liabilities		8,923		8,100
Total liabilities		178,764		183,227

Total stockholders' equity		994,964		935,003
Total liabilities and stockholders' equity	$	1,173,728	$	1,118,230

Statements of Income


	Years Ended December 31,
	2018		2017		2016
Operating income:
Dividends from subsidiaries:
Pulaski Bank before bank merger	$	—	$	—	$	8,700
Non-bank before Busey Trust merger		17,000		4,000		4,000
Interest income		747		264		—
Security gains, net		2,322		—		—
Other income		8,096		6,890		5,664
Total operating income		28,165		11,154		18,364

Expense:
Salaries, wages and employee benefits		13,624		11,398		8,879
Interest expense		8,026		5,464		2,035
Operating expense		6,051		7,060		3,967
Total expense		27,701		23,922		14,881

Income (loss) before income tax benefit and equity in undistributed (in excess of) net income of subsidiaries		464		(12,768)		3,483
Income tax benefit		5,013		5,553		4,073
Income (loss) before equity in undistributed (in excess of) net income of subsidiaries		5,477		(7,215)		7,556

Equity in undistributed (in excess of) net income of subsidiaries:
Banks		103,309		68,635		41,980
Non-bank before Busey Trust merger		(9,858)		1,306		158
Net income	$	98,928	$	62,726	$	49,694

Statements of Cash Flows


	Years Ended December 31,
	2018		2017		2016
Cash Flows from Operating Activities
Net income	$	98,928	$	62,726	$	49,694
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		212		428		198
Distributions less than net income of subsidiaries		(93,451)		(69,940)		(42,138)
Net security gains		(2,322)		—		—
Stock-based compensation		3,721		2,752		1,803
Changes in assets and liabilities:
Decrease (increase) in other assets		13,985		(1,105)		1,057
Increase (decrease) in other liabilities		1,361		(2,703)		(3,690)
Net cash provided by (used in) operating Activities		22,434		(7,842)		6,924

Cash Flows from Investing Activities
Net cash (outlay) received for business acquisition		—		(61,371)		602
Purchases of premises and equipment		(46)		—		(3)
Net cash (used in) provided by investing activities		(46)		(61,371)		599

Cash Flows from Financing Activities
Proceeds from charter amendment with subsidiary bank		40,000		40,000		30,000
Value of shares surrendered upon vesting to satisfy tax withholding obligations of stock based compensation		(817)		(1,414)		(809)
Cash dividends paid		(39,010)		(30,707)		(22,748)
Repayments of subordinated debt		(5,500)		(9,800)		—
Proceeds from issuance of senior and subordinated debt		—		98,312		—
Proceeds from stock options exercised		—		626		—
Common stock issuance costs		—		(365)		(246)
Net cash (used in) provided by financing activities		(5,327)		96,652		6,197

Net increase in cash and due from subsidiary banks		17,061		27,439		13,720
Cash and cash equivalents, beginning of period		54,946		27,507		13,787

Cash and cash equivalents, ending of period	$	72,007	$	54,946	$	27,507

Unaudited Interim Financial Data (Tables)

12 Months Ended

Dec. 31, 2018

Unaudited Interim Financial Data

Schedule reflecting the summarized quarterly data

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


	2018
	December 31		September 30		June 30		March 31

Total interest income	$	74,314	$	72,761	$	70,325	$	68,633
Total interest expense		13,811		11,987		9,953		8,876
Net interest income		60,503		60,774		60,372		59,757
Provision for loan losses		405		758		2,258		1,008
Total non-interest income		22,852		21,853		22,802		22,486
Total non-interest expense		48,769		45,929		47,305		51,040
Income before income taxes		34,181		35,940		33,611		30,195
Income taxes		8,891		9,081		8,749		8,278
Net income	$	25,290	$	26,859	$	24,862	$	21,917

Basic earnings per share	$	0.52	$	0.55	$	0.51	$	0.45
Diluted earnings per share	$	0.51	$	0.55	$	0.51	$	0.45


	2017
	December 31		September 30		June 30		March 31

Total interest income	$	70,847	$	62,519	$	46,009	$	44,927
Total interest expense		7,801		6,578		3,643		2,914
Net interest income		63,046		55,941		42,366		42,013
Provision for loan losses		2,809		1,494		500		500
Total non-interest income		23,561		20,837		20,062		20,014
Total non-interest expense		53,100		46,939		36,768		37,619
Income before income taxes		30,698		28,345		25,160		23,908
Income taxes		18,405		9,561		8,681		8,738
Net income	$	12,293	$	18,784	$	16,479	$	15,170

Basic earnings per share	$	0.25	$	0.41	$	0.43	$	0.40
Diluted earnings per share	$	0.25	$	0.41	$	0.43	$	0.39

Significant Accounting Policies - Narrative (Details)	3 Months Ended	12 Months Ended
Significant Accounting Policies - Narrative (Details)	Dec. 31, 2017 USD ($)	Dec. 31, 2018 USD ($) segment	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Trust assets
Assets under care	$ 6,000,000,000	$ 7,100,000,000	$ 6,000,000,000
Goodwill
Goodwill impairment		0	0
Income taxes
Non-cash charge due to revaluation of Company's net deferred tax position following the enactment of the TCJA	8,100,000
Valuation allowance	0	0	0
Accruals for payments of interest and penalties	$ 0	0	0
Stock-based employee compensation
Compensation expense recognized		$ 3,500,000	$ 2,600,000	$ 1,800,000
Segment disclosure
Number of operating segments \| segment		3
Buildings and improvements \| Minimum
Premises and Equipment, net
Estimated Useful Life		3 years
Buildings and improvements \| Maximum
Premises and Equipment, net
Estimated Useful Life		40 years
Furniture and equipment \| Minimum
Premises and Equipment, net
Estimated Useful Life		3 years
Furniture and equipment \| Maximum
Premises and Equipment, net
Estimated Useful Life		10 years
RSU
Stock-based employee compensation
Compensation expense recognized		$ 0
RSU \| Minimum
Stock-based employee compensation
Requisite service periods		1 year
RSU \| Maximum
Stock-based employee compensation
Requisite service periods		5 years

Significant Accounting Policies - Off-balance Sheet Arrangements (Details) - Standby letters of credit - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Obligation with Joint and Several Liability Arrangement [Line Items]
Term of debt instrument	1 year
Liabilities for potential obligations	$ 0	$ 0

Significant Accounting Policies - Impact of new financial accounting standards (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Accounting Standards Update 2016-01
Recently Issued Accounting Standards
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 0
Accounting Standards Update 2016-02
Recently Issued Accounting Standards
Right of use asset	8,100
Lease liability	$ 8,100

Acquisitions (Details) $ / shares in Units, $ in Thousands						1 Months Ended	3 Months Ended			6 Months Ended	12 Months Ended
Acquisitions (Details) $ / shares in Units, $ in Thousands	Oct. 01, 2017 USD ($) $ / shares shares	Jul. 02, 2017 USD ($) item $ / shares	Jun. 30, 2017 USD ($) $ / shares shares	Apr. 30, 2016 USD ($) item	Apr. 29, 2016 USD ($) $ / shares shares	Apr. 30, 2016 USD ($) item	Jun. 30, 2018 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($) $ / shares	Dec. 31, 2016 USD ($) $ / shares
Business Acquisition
Per share cash consideration entitled (in dollars per share) \| $ / shares		$ 1.35
Assets acquired:
Goodwill										$ 269,346	$ 267,685	$ 269,346
Consideration paid:
Goodwill										269,346	267,685	269,346
Asset Impairment Charges							$ 800				817	99	$ 756
Core deposit intangible assets
Consideration paid:
Intangible asset recorded											63,029
Pulaski
Business Acquisition
Number of banking centers \| item				13		13
Share consideration conversion ratio				0.79
Number of common shares issued for acquisition \| shares					9,400,000
Market value of common stock issued					$ 193,000
Share price \| $ / shares					$ 20.44
Options to purchase common stock, conversion ratio				0.79
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
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									$ 6,200
PCI loan collected								$ 1,600
Accretable yield expected to be recognized over the estimated period				$ 300		$ 300
Total revenues (net interest income plus non-interest income)												245,861
Net income												$ 46,276
Diluted earnings per common share (in dollars per share) \| $ / shares												$ 1.20
Pulaski \| Non-interest expense
Business Acquisition
Business acquisition expenses												$ 10,000
Acquisition expenses related to professional and legal fees												1,200
First Community
Business Acquisition
Number of banking centers \| item		9
Share consideration conversion ratio		0.396
Number of common shares issued for acquisition \| shares			7,200,000
Market value of common stock issued			$ 211,100
Share price \| $ / shares			$ 29.32
Options to purchase common stock, conversion ratio		0.44
Assets acquired:
Cash and cash equivalents		$ 60,686
Securities		165,843
Loans held for sale		905
Portfolio loans		1,096,583
Premises and equipment		18,094
OREO		722
Goodwill		115,982
Other intangible assets		13,979
Other assets		41,755
Total assets acquired		1,398,567
Liabilities assumed:
Deposits		1,134,355
Other borrowings		125,751
Other liabilities		11,862
Total liabilities assumed		1,271,968
Net assets acquired		126,599
Consideration paid:
Cash		24,557
Cash payout of options and restricted stock units		6,182
Common stock		211,120
Fair value of stock options assumed		722
Total consideration paid		242,581
Goodwill		115,982
Fair value of performing loans, including loans held for sale		1,100,000
Amount expected to be accreted, gross		14,400
Contractual amount of PCI loans		17,900
Fair value of credit-impaired loans		12,500
PCI loan outstanding amount											2,600
Accretable yield expected to be recognized over the estimated period		$ 600
Total revenues (net interest income plus non-interest income)												316,417	293,190
Net income												$ 67,413	$ 59,326
Diluted earnings per common share (in dollars per share) \| $ / shares												$ 1.47	$ 1.29
First Community \| Non-interest expense
Business Acquisition
Business acquisition expenses											100	$ 4,500
Acquisition expenses related to professional and legal fees												1,600
Mid Illinois Bancorp, Inc.
Business Acquisition
Per share cash consideration entitled (in dollars per share) \| $ / shares	$ 227.94
Number of common shares issued for acquisition \| shares	7.5149
Assets acquired:
Cash and cash equivalents	$ 39,443
Securities	208,003
Loans held for sale	5,031
Portfolio loans	356,651
Premises and equipment	16,551
Goodwill	48,889
Other intangible assets	11,531
Other assets	29,564
Total assets acquired	666,774
Liabilities assumed:
Deposits	505,917
Other borrowings	61,040
Other liabilities	10,497
Total liabilities assumed	577,454
Net assets acquired	89,320
Consideration paid:
Cash	40,507
Common stock	97,702
Total consideration paid	138,209
Goodwill	48,889
Aggregate principal outstanding	362,400
Fair value of performing loans, including loans held for sale	357,000
Amount expected to be accreted, gross	5,400
Contractual amount of PCI loans	7,600
Fair value of credit-impaired loans	4,700
PCI loan outstanding amount										100		100
Accretable yield expected to be recognized over the estimated period	$ 100
Mixed consideration in cash (in dollars per share) \| $ / shares	$ 68.38
Mixed consideration in shares (in dollars per share) \| shares	5.2604
Total consideration in stock (as a percent)	70.00%
Total consideration in cash (as a percent)	30.00%
Mid Illinois Bancorp, Inc. \| Non-interest expense
Business Acquisition
Business acquisition expenses											$ 3,100	2,500
Acquisition expenses related to professional and legal fees												$ 1,300
First Community
Consideration paid:
Amount accelerated as a result of collections of PCI loan balances										$ 200

Acquisitions - The Banc Ed Corp. (Details) $ / shares in Units, $ in Thousands, shares in Millions				12 Months Ended
	Jan. 31, 2019 USD ($) $ / shares shares	Aug. 21, 2018 $ / shares	Jul. 02, 2017 $ / shares	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Merger agreement
Per share cash consideration entitled (in dollars per share) \| $ / shares			$ 1.35
Assets acquired:
Goodwill				$ 267,685	$ 269,346
Consideration paid
Goodwill				267,685	$ 269,346
Bank properties held for sale before impairment				2,600
Premises and equipment, net
Consideration paid
Bank property held for sale				1,800
The Banc Ed Corp.
Merger agreement
Total consolidated assets				1,800,000
Total loans				902,100
Total deposits				1,500,000
Per share cash consideration entitled (in dollars per share) \| $ / shares		$ 111.53
Share consideration conversion ratio		8.2067
Number of common shares issued for acquisition \| shares	6.7
Total consideration paid	$ 257,915
Share price \| $ / shares	$ 24.76
Assets acquired:
Cash and cash equivalents	$ 42,013
Securities	692,692
Loans held for sale	2,157
Portfolio loans	870,838
Premises and equipment	32,203
Goodwill	48,533
Other intangible assets	28,047
Mortgage servicing rights	6,946
Other assets	62,342
Total assets acquired	1,737,238
Liabilities assumed:
Deposits	1,439,203
Other borrowings	63,439
Other liabilities	25,214
Total liabilities assumed	1,527,856
Net assets acquired	209,382
Consideration paid
Cash	91,400
Common stock	166,515
Total consideration paid	257,915
Goodwill	$ 48,533
The Banc Ed Corp. \| Non-interest expense
Merger agreement
Business acquisition expenses				$ 400

Securities - General Disclosures (Details) $ in Thousands	12 Months Ended
Securities - General Disclosures (Details) $ in Thousands	Dec. 31, 2018 USD ($) item	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Securities
Equity securities consisting of common stock and money market mutual funds, fair value	$ 6,169	$ 5,378
Available for sale
Amortized Cost	707,213	877,459
Gross Unrealized Gains	798	1,912
Gross Unrealized Losses	(10,326)	(6,689)
Fair Value	697,685	872,682
Held to maturity
Amortized Cost	608,660	443,550
Gross Unrealized Gains	1,827	294
Gross Unrealized Losses	(7,127)	(2,792)
Fair Value	603,360	441,052
Available for sale, Amortized Cost
Due in one year or less	60,006
Due after one year through five years	223,813
Due after five years through ten years	136,411
Due after ten years	286,983
Amortized Cost	707,213	877,459
Available for sale, Fair Value
Due in one year or less	59,759
Due after one year through five years	222,206
Due after five years through ten years	135,118
Due after ten years	280,602
Fair Value	697,685	872,682
Held to maturity, Amortized Cost
Due in one year or less	8,103
Due after one year through five years	55,638
Due after five years through ten years	29,260
Due after ten years	515,659
Amortized Cost	608,660	443,550
Held to maturity, Fair Value
Due in one year or less	8,088
Due after one year through five years	55,007
Due after five years through ten years	28,895
Due after ten years	511,370
Fair Value	603,360	441,052
Realized gains and losses related to sales and calls of securities AFS
Gross security gains		1,259	$ 1,383
Gross security (losses)	(1,991)	(116)	(151)
Security gains (losses), net	(1,991)	1,143	$ 1,232
Tax provision related to net realized gains (losses)	400	400
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	190,737	540,033
Continuous unrealized losses existing for greater than 12 months, gross	417,336	127,806
Total, gross	608,073	667,839
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(1,231)	(3,623)
Continuous unrealized losses existing greater than 12 months, gross	(9,095)	(3,066)
Total, gross	(10,326)	(6,689)
Held to maturity, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	98,669	340,279
Continuous unrealized losses existing for greater than 12 months, gross	299,707	2,374
Total, gross	398,376	342,653
Held to maturity, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(1,219)	(2,709)
Continuous unrealized losses existing for greater than 12 months, gross	(5,908)	(83)
Total, gross	$ (7,127)	(2,792)
Number of securities in unrealized loss position \| item	570
Securities in unrealized loss position as a percentage of aggregate carrying value of investments	1.70%
Collateral
Realized gains and losses related to sales and calls of securities AFS
Carrying amount of investment securities pledged as collateral	$ 498,300	638,200
U.S. Treasury securities
Available for sale
Amortized Cost	25,824	60,829
Gross Unrealized Gains	1	7
Gross Unrealized Losses	(414)	(488)
Fair Value	25,411	60,348
Available for sale, Amortized Cost
Amortized Cost	25,824	60,829
Available for sale, Fair Value
Fair Value	25,411	60,348
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	995	59,773
Continuous unrealized losses existing for greater than 12 months, gross	24,343
Total, gross	25,338	59,773
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(4)	(488)
Continuous unrealized losses existing greater than 12 months, gross	(410)
Total, gross	(414)	(488)
Obligations of U.S. government corporations and agencies
Available for sale
Amortized Cost	53,096	104,807
Gross Unrealized Gains	7	1
Gross Unrealized Losses	(761)	(1,143)
Fair Value	52,342	103,665
Available for sale, Amortized Cost
Amortized Cost	53,096	104,807
Available for sale, Fair Value
Fair Value	52,342	103,665
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	749	78,610
Continuous unrealized losses existing for greater than 12 months, gross	50,744	24,831
Total, gross	51,493	103,441
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(3)	(636)
Continuous unrealized losses existing greater than 12 months, gross	(758)	(507)
Total, gross	(761)	(1,143)
Obligations of states and political subdivisions
Available for sale
Amortized Cost	171,131	280,216
Gross Unrealized Gains	484	1,160
Gross Unrealized Losses	(1,571)	(1,177)
Fair Value	170,044	280,199
Held to maturity
Amortized Cost	33,947	41,300
Gross Unrealized Gains	68	228
Gross Unrealized Losses	(87)	(64)
Fair Value	33,928	41,464
Available for sale, Amortized Cost
Amortized Cost	171,131	280,216
Available for sale, Fair Value
Fair Value	170,044	280,199
Held to maturity, Amortized Cost
Amortized Cost	33,947	41,300
Held to maturity, Fair Value
Fair Value	33,928	41,464
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	49,893	162,213
Continuous unrealized losses existing for greater than 12 months, gross	77,651	12,045
Total, gross	127,544	174,258
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(460)	(1,027)
Continuous unrealized losses existing greater than 12 months, gross	(1,111)	(150)
Total, gross	(1,571)	(1,177)
Held to maturity, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	9,531	17,939
Continuous unrealized losses existing for greater than 12 months, gross	9,538
Total, gross	19,069	17,939
Held to maturity, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(33)	(64)
Continuous unrealized losses existing for greater than 12 months, gross	(54)
Total, gross	(87)	(64)
Residential mortgage-backed securities
Available for sale
Amortized Cost	322,646	400,661
Gross Unrealized Gains	245	612
Gross Unrealized Losses	(7,143)	(3,837)
Fair Value	315,748	397,436
Held to maturity
Amortized Cost	515,659	341,776
Gross Unrealized Gains	1,748	25
Gross Unrealized Losses	(6,037)	(2,431)
Fair Value	511,370	339,370
Available for sale, Amortized Cost
Amortized Cost	322,646	400,661
Available for sale, Fair Value
Fair Value	315,748	397,436
Held to maturity, Amortized Cost
Amortized Cost	515,659	341,776
Held to maturity, Fair Value
Fair Value	511,370	339,370
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	48,387	223,261
Continuous unrealized losses existing for greater than 12 months, gross	247,573	90,930
Total, gross	295,960	314,191
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(496)	(1,428)
Continuous unrealized losses existing greater than 12 months, gross	(6,647)	(2,409)
Total, gross	(7,143)	(3,837)
Held to maturity, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	77,071	277,826
Continuous unrealized losses existing for greater than 12 months, gross	245,128
Total, gross	322,199	277,826
Held to maturity, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(974)	(2,431)
Continuous unrealized losses existing for greater than 12 months, gross	(5,063)
Total, gross	(6,037)	(2,431)
Corporate debt securities
Available for sale
Amortized Cost	132,513	30,946
Gross Unrealized Gains	61	132
Gross Unrealized Losses	(376)	(44)
Fair Value	132,198	31,034
Available for sale, Amortized Cost
Amortized Cost	132,513	30,946
Available for sale, Fair Value
Fair Value	132,198	31,034
Available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	90,713	16,176
Continuous unrealized losses existing for greater than 12 months, gross	15,083
Total, gross	105,796	16,176
Available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(268)	(44)
Continuous unrealized losses existing greater than 12 months, gross	(108)
Total, gross	(376)	(44)
Commercial mortgage-backed securities
Available for sale
Amortized Cost	2,003
Gross Unrealized Losses	(61)
Fair Value	1,942
Held to maturity
Amortized Cost	59,054	60,474
Gross Unrealized Gains	11	41
Gross Unrealized Losses	(1,003)	(297)
Fair Value	58,062	60,218
Available for sale, Amortized Cost
Amortized Cost	2,003
Available for sale, Fair Value
Fair Value	1,942
Held to maturity, Amortized Cost
Amortized Cost	59,054	60,474
Held to maturity, Fair Value
Fair Value	58,062	60,218
Available for sale, Fair Value
Continuous unrealized losses existing for greater than 12 months, gross	1,942
Total, gross	1,942
Available for sale, Unrealized Losses
Continuous unrealized losses existing greater than 12 months, gross	(61)
Total, gross	(61)
Held to maturity, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	12,067	44,514
Continuous unrealized losses existing for greater than 12 months, gross	45,041	2,374
Total, gross	57,108	46,888
Held to maturity, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(212)	(214)
Continuous unrealized losses existing for greater than 12 months, gross	(791)	(83)
Total, gross	(1,003)	(297)
Money market mutual funds
Securities
Equity securities consisting of common stock and money market mutual funds, fair value		4,600
Common Stock
Securities
Equity securities consisting of common stock and money market mutual funds, fair value		$ 800
Non-interest income \| Common Stock
Securities
Unrealized losses recorded	100
Realized equity security gains	$ 2,300

Securities - Obligations by State (Details) $ in Thousands	12 Months Ended
Securities - Obligations by State (Details) $ in Thousands	Dec. 31, 2018 USD ($) item	Dec. 31, 2017 USD ($) item
Securities
Held to maturity, fair value	$ 603,360	$ 441,052
General obligation bonds
Securities
Number of Issuers \| item	260	381
Amortized Cost	$ 172,023	$ 271,499
Fair Value	171,104	271,659
Average Exposure Per Issuer (Fair Value)	658	713
Amount of largest exposure to a single issuer	$ 5,000	$ 4,000
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 rating organization	99.30%
Percentage of underlying asset unrated	0.70%
Minimum number of nationally recognized rating organizations \| item	1
General obligation bonds \| Illinois
Securities
Number of Issuers \| item	70	97
Amortized Cost	$ 56,324	$ 95,340
Fair Value	55,999	95,344
Average Exposure Per Issuer (Fair Value)	$ 800	$ 983
General obligation bonds \| Wisconsin
Securities
Number of Issuers \| item	20	41
Amortized Cost	$ 12,624	$ 27,852
Fair Value	12,544	27,809
Average Exposure Per Issuer (Fair Value)	$ 627	$ 678
General obligation bonds \| Texas
Securities
Number of Issuers \| item	36	46
Amortized Cost	$ 21,637	$ 27,485
Fair Value	21,428	27,514
Average Exposure Per Issuer (Fair Value)	$ 595	$ 598
General obligation bonds \| Michigan
Securities
Number of Issuers \| item	19	34
Amortized Cost	$ 10,799	$ 19,641
Fair Value	10,890	19,849
Average Exposure Per Issuer (Fair Value)	$ 573	$ 584
General obligation bonds \| Ohio
Securities
Number of Issuers \| item	17	20
Amortized Cost	$ 9,543	$ 15,172
Fair Value	9,545	15,162
Average Exposure Per Issuer (Fair Value)	$ 561	$ 758
General obligation bonds \| Pennsylvania
Securities
Number of Issuers \| item	10	18
Amortized Cost	$ 6,317	$ 12,189
Fair Value	6,298	12,174
Average Exposure Per Issuer (Fair Value)	$ 630	$ 676
General obligation bonds \| New Jersey
Securities
Number of Issuers \| item		15
Amortized Cost		$ 7,755
Fair Value		7,760
Average Exposure Per Issuer (Fair Value)		$ 517
General obligation bonds \| Missouri
Securities
Number of Issuers \| item	8	10
Amortized Cost	$ 5,202	$ 5,759
Fair Value	5,172	5,747
Average Exposure Per Issuer (Fair Value)	$ 646	$ 575
General obligation bonds \| Minnesota
Securities
Number of Issuers \| item		8
Amortized Cost		$ 5,657
Fair Value		5,667
Average Exposure Per Issuer (Fair Value)		$ 708
General obligation bonds \| California
Securities
Number of Issuers \| item	6
Amortized Cost	$ 8,303
Fair Value	8,322
Average Exposure Per Issuer (Fair Value)	$ 1,387
General obligation bonds \| Other
Securities
Number of Issuers \| item	74	92
Amortized Cost	$ 41,274	$ 54,649
Fair Value	40,906	54,633
Average Exposure Per Issuer (Fair Value)	$ 553	$ 594
Revenue bonds
Securities
Number of Issuers \| item	43	65
Amortized Cost	$ 33,055	$ 50,017
Fair Value	32,868	50,004
Average Exposure Per Issuer (Fair Value)	764	769
Amount of largest exposure to a single issuer	$ 3,500	$ 3,600
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 rating organization	100.00%	99.40%
Percentage of bonds unrated		0.60%
Minimum number of nationally recognized rating organizations \| item	1	1
Revenue bonds \| Indiana
Securities
Number of Issuers \| item	10	14
Amortized Cost	$ 9,588	$ 12,001
Fair Value	9,582	12,054
Average Exposure Per Issuer (Fair Value)	$ 958	$ 861
Revenue bonds \| Illinois
Securities
Number of Issuers \| item		7
Amortized Cost		$ 6,477
Fair Value		6,456
Average Exposure Per Issuer (Fair Value)		$ 922
Revenue bonds \| Missouri
Securities
Number of Issuers \| item		6
Amortized Cost		$ 7,376
Fair Value		7,336
Average Exposure Per Issuer (Fair Value)		$ 1,223
Revenue bonds \| Other
Securities
Number of Issuers \| item	33	38
Amortized Cost	$ 23,467	$ 24,163
Fair Value	23,286	24,158
Average Exposure Per Issuer (Fair Value)	705	636
Obligations of states and political subdivisions
Securities
Held to maturity, fair value	$ 33,928	$ 41,464
Number of Issuers \| item	303	446
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	$ 171,100	$ 271,700
Number of states in which investment is held \| item	31	36
Number of states in which investment is held in excess of aggregate fair value \| item	8	9
Aggregate fair value	$ 5,000	$ 5,000
Obligations of states and political subdivisions \| Revenue bonds
Securities
Fair Value	$ 32,900	$ 50,000
Number of states in which investment is held \| item	18	22
Number of states in which investment is held in excess of aggregate fair value \| item	1	3
Aggregate fair value	$ 5,000	$ 5,000

Loans held for sale (Details) - USD ($) $ in Thousands	12 Months Ended
Loans held for sale (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loans held for sale
Loans held for sale	$ 25,895	$ 94,848
Premiums received on sales of mortgage loans, including fair value adjustments	12,105	42,598	$ 43,119
Less direct origination costs	(8,683)	(33,363)	(32,793)
Less provisions to liability for loans sold	(132)	(225)	(175)
Mortgage servicing revenues, net of servicing expense	2,255	2,130	1,801
Mortgage revenue	$ 5,545	$ 11,140	$ 11,952

Mortgage Loan Servicing (Details) - USD ($) $ in Thousands	12 Months Ended
Mortgage Loan Servicing (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Mortgage Loan Servicing
Unpaid principal balances of mortgage loans serviced by the entity for the benefit of others	$ 1,500,000	$ 1,500,000
Capitalized mortgage servicing rights included in other assets	3,300	3,700
Mortgage Fair values of servicing rights	11,100	8,600
Mortgage servicing rights capitalized, acquired and amortized
Mortgage servicing rights capitalized	1,166	1,366	$ 1,488
Mortgage servicing rights acquired		751
Mortgage servicing rights amortized	$ 1,531	$ 1,584	$ 1,921

Portfolio loans and allowance for loan losses - Distributions of Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Loans
Portfolio loans	$ 5,568,428	$ 5,519,500
Less allowance for loan losses	50,648	53,582	$ 47,795	$ 47,487
Portfolio loans, net	5,517,780	5,465,918
Net deferred loan origination costs	5,600	4,100
Amount of loan reduction due to net accretable purchase accounting adjustments	13,900	23,600
Commercial
Loans
Portfolio loans	1,405,106	1,414,631
Less allowance for loan losses	17,829	14,779	13,303	13,115
Commercial real estate
Loans
Portfolio loans	2,366,823	2,354,684
Less allowance for loan losses	21,137	21,813	20,623	18,604
Real estate construction
Loans
Portfolio loans	288,197	261,506
Less allowance for loan losses	2,723	2,861	1,870	1,763
Retail real estate
Loans
Portfolio loans	1,480,133	1,460,801
Less allowance for loan losses	8,471	13,783	11,648	13,714
Retail other
Loans
Portfolio loans	28,169	27,878
Less allowance for loan losses	$ 488	$ 346	$ 351	$ 291

Portfolio loans and allowance for loan losses - Risk Grading (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Pass and watch
Loans
Portfolio loans receivable	$ 5,300,000
Special mention, substandard and non-accrual
Loans
Portfolio loans receivable	263,900	$ 193,800
Pass
Loans
Portfolio loans receivable	4,976,708	5,022,249
Watch
Loans
Portfolio loans receivable	330,650	320,016
Special Mention
Loans
Limit above which loans are annually reviewed	350
Portfolio loans receivable	142,839	81,559
Substandard
Loans
Portfolio loans receivable	86,060	87,628
Substandard Non-accrual
Loans
Portfolio loans receivable	34,997	24,624
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	1,126,257	1,175,421
Commercial \| Watch
Loans
Limit above which loans are annually reviewed	1,000
Portfolio loans receivable	172,449	141,776
Commercial \| Special Mention
Loans
Portfolio loans receivable	47,000	51,366
Commercial \| Substandard
Loans
Portfolio loans receivable	42,532	43,933
Commercial \| Substandard Non-accrual
Loans
Portfolio loans receivable	17,953	5,285
Commercial real estate
Loans
Limit where loans are processed through an expedited underwriting process	1,000
Commercial real estate \| Pass
Loans
Portfolio loans receivable	2,106,711	2,169,420
Commercial real estate \| Watch
Loans
Portfolio loans receivable	137,214	130,056
Commercial real estate \| Special Mention
Loans
Portfolio loans receivable	85,148	21,151
Commercial real estate \| Substandard
Loans
Portfolio loans receivable	36,205	36,482
Commercial real estate \| Substandard Non-accrual
Loans
Portfolio loans receivable	10,298	11,997
Real estate construction \| Pass
Loans
Portfolio loans receivable	268,069	212,952
Real estate construction \| Watch
Loans
Portfolio loans receivable	14,562	41,292
Real estate construction \| Special Mention
Loans
Portfolio loans receivable	3,899	3,880
Real estate construction \| Substandard
Loans
Portfolio loans receivable	1,888	3,071
Real estate construction \| Substandard Non-accrual
Loans
Portfolio loans receivable	18	608
Retail real estate \| Pass
Loans
Portfolio loans receivable	1,448,964	1,436,156
Retail real estate \| Watch
Loans
Portfolio loans receivable	6,425	6,883
Retail real estate \| Special Mention
Loans
Portfolio loans receivable	6,792	5,162
Retail real estate \| Substandard
Loans
Portfolio loans receivable	5,435	4,135
Retail real estate \| Substandard Non-accrual
Loans
Portfolio loans receivable	6,698	6,714
Retail other \| Pass
Loans
Portfolio loans receivable	26,707	28,300
Retail other \| Watch
Loans
Portfolio loans receivable		9
Retail other \| Substandard
Loans
Portfolio loans receivable		7
Retail other \| Substandard Non-accrual
Loans
Portfolio loans receivable	$ 30	$ 20

Portfolio loans and allowance for loan losses - Past due loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loans past due, still accruing
Loans past due, still accruing	$ 1,601	$ 2,741
Non-accrual Loans	34,997	24,624
Gross interest income that would have been recorded if impaired loans had been current	1,700	1,400	$ 900
Amount of interest collected and recognized on a cash basis		300
Restructured loans:
Total loans	8,838	11,900
30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	5,053	8,477
60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing	2,068	4,420
In compliance with modified terms
Restructured loans:
Total loans	8,319	9,873
30-89 days past due
Restructured loans:
Total loans	127	108
Included in non-performing loans
Restructured loans:
Total loans	392	1,919
Commercial
Loans past due, still accruing
Loans past due, still accruing	775	1,808
Non-accrual Loans	17,953	5,285
Commercial \| 30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	158	1,615
Commercial \| 60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing	140	323
Commercial real estate
Loans past due, still accruing
Non-accrual Loans	10,298	11,997
Commercial real estate \| 30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	148	1,856
Commercial real estate \| 60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing	558	2,737
Real estate construction
Loans past due, still accruing
Loans past due, still accruing	58
Non-accrual Loans	18	608
Real estate construction \| 30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	121
Retail real estate
Loans past due, still accruing
Loans past due, still accruing	766	933
Non-accrual Loans	6,698	6,714
Retail real estate \| 30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	4,578	4,840
Retail real estate \| 60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing	1,368	1,355
Retail other
Loans past due, still accruing
Loans past due, still accruing	2
Non-accrual Loans	30	20
Retail other \| 30 to 59 Days
Loans past due, still accruing
Loans past due, still accruing	48	166
Retail other \| 60 to 89 Days
Loans past due, still accruing
Loans past due, still accruing	$ 2	$ 5

Portfolio loans and allowance for loan losses - Impaired Loans (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 USD ($) contract item	Dec. 31, 2017 USD ($) contract
Loans
Number of contracts \| contract		0	0
Minimum days past due for TDR loans to be classified as non-performing	90 days	90 days
Unpaid Contractual Principal Balance	$ 55,534	$ 55,534	$ 52,419
Recorded Investment with No Allowance	33,622	33,622	39,657
Recorded Investment with Allowance	16,560	16,560	2,180
Total Recorded Investment	50,182	50,182	41,837
Related Allowance	5,561	5,561	867
Average Recorded Investment		46,303	39,124
Commercial
Loans
Unpaid Contractual Principal Balance	21,442	21,442	10,604
Recorded Investment with No Allowance	6,858	6,858	7,192
Recorded Investment with Allowance	12,001	12,001	191
Total Recorded Investment	18,859	18,859	7,383
Related Allowance	4,319	4,319	138
Average Recorded Investment		13,364	10,184
Commercial real estate
Loans
Unpaid Contractual Principal Balance	19,079	19,079	22,218
Recorded Investment with No Allowance	13,082	13,082	16,472
Recorded Investment with Allowance	4,498	4,498	1,964
Total Recorded Investment	17,580	17,580	18,436
Related Allowance	1,181	1,181	704
Average Recorded Investment		18,077	15,195
Real estate construction
Loans
Unpaid Contractual Principal Balance	478	478	1,040
Recorded Investment with No Allowance	453	453	1,016
Total Recorded Investment	453	453	1,016
Average Recorded Investment		712	692
Retail real estate
Loans
Unpaid Contractual Principal Balance	14,418	14,418	18,517
Recorded Investment with No Allowance	13,196	13,196	14,957
Recorded Investment with Allowance	61	61	25
Total Recorded Investment	13,257	13,257	14,982
Related Allowance	61	61	25
Average Recorded Investment		14,110	13,009
Retail other
Loans
Unpaid Contractual Principal Balance	117	117	40
Recorded Investment with No Allowance	33	33	20
Total Recorded Investment	$ 33	33	20
Average Recorded Investment		$ 40	44
In compliance with modified terms \| Retail real estate
Loans
Number of modifications for short-term principal payment relief \| item		1
Recorded investment for short-term interest-rate relief		$ 100	$ 700

Portfolio loans and allowance for loan losses - Allowance for Loan Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017
Changes in allowance for loan losses
Beginning balance	$ 53,582	$ 47,795	$ 47,487
Provision for loan loss	4,429	5,303	5,550
Charged-off	(10,944)	(6,239)	(9,656)
Recoveries	3,581	6,723	4,414
Ending balance	50,648	53,582	47,795
Allowance for loan losses Ending balance attributed to:
Loans individually evaluated for impairment				$ 5,561	$ 867
Loans collectively evaluated for impairment				45,087	52,715
Ending balance	53,582	47,795	47,487	50,648	53,582
Loans:
Loans individually evaluated for impairment				47,404	31,191
Loans collectively evaluated for impairment				5,518,246	5,477,663
Ending balance				5,568,428	5,519,500
Purchased Credit Impaired Loans
Loans:
Loans collectively evaluated for impairment				2,778	10,646
Commercial
Changes in allowance for loan losses
Beginning balance	14,779	13,303	13,115
Provision for loan loss	5,767	(1,091)	5,520
Charged-off	(3,968)	(994)	(6,598)
Recoveries	1,251	3,561	1,266
Ending balance	17,829	14,779	13,303
Allowance for loan losses Ending balance attributed to:
Loans individually evaluated for impairment				4,319	138
Loans collectively evaluated for impairment				13,510	14,641
Ending balance	14,779	13,303	13,115	17,829	14,779
Loans:
Loans individually evaluated for impairment				18,441	6,572
Loans collectively evaluated for impairment				1,386,247	1,407,248
Ending balance				1,405,106	1,414,631
Commercial \| Purchased Credit Impaired Loans
Loans:
Loans collectively evaluated for impairment				418	811
Commercial real estate
Changes in allowance for loan losses
Beginning balance	21,813	20,623	18,604
Provision for loan loss	3,227	2,439	2,366
Charged-off	(4,352)	(1,965)	(470)
Recoveries	449	716	123
Ending balance	21,137	21,813	20,623
Allowance for loan losses Ending balance attributed to:
Loans individually evaluated for impairment				1,181	704
Loans collectively evaluated for impairment				19,956	21,109
Ending balance	21,813	20,623	18,604	21,137	21,813
Loans:
Loans individually evaluated for impairment				15,318	11,491
Loans collectively evaluated for impairment				2,349,243	2,336,248
Ending balance				2,366,823	2,354,684
Commercial real estate \| Purchased Credit Impaired Loans
Loans:
Loans collectively evaluated for impairment				2,262	6,945
Real estate construction
Changes in allowance for loan losses
Beginning balance	2,861	1,870	1,763
Provision for loan loss	(259)	581	(310)
Charged-off	(97)	(48)	(24)
Recoveries	218	458	441
Ending balance	2,723	2,861	1,870
Allowance for loan losses Ending balance attributed to:
Loans collectively evaluated for impairment				2,723	2,861
Ending balance	2,861	1,870	1,763	2,723	2,861
Loans:
Loans individually evaluated for impairment				453	435
Loans collectively evaluated for impairment				287,744	260,490
Ending balance				288,197	261,506
Real estate construction \| Purchased Credit Impaired Loans
Loans:
Loans collectively evaluated for impairment					581
Retail real estate
Changes in allowance for loan losses
Beginning balance	13,783	11,648	13,714
Provision for loan loss	(4,824)	3,263	(2,277)
Charged-off	(1,815)	(2,691)	(2,106)
Recoveries	1,327	1,563	2,317
Ending balance	8,471	13,783	11,648
Allowance for loan losses Ending balance attributed to:
Loans individually evaluated for impairment				61	25
Loans collectively evaluated for impairment				8,410	13,758
Ending balance	13,783	11,648	13,714	8,471	13,783
Loans:
Loans individually evaluated for impairment				13,159	12,673
Loans collectively evaluated for impairment				1,466,876	1,445,819
Ending balance				1,480,133	1,460,801
Retail real estate \| Purchased Credit Impaired Loans
Loans:
Loans collectively evaluated for impairment				98	2,309
Retail other
Changes in allowance for loan losses
Beginning balance	346	351	291
Provision for loan loss	518	111	251
Charged-off	(712)	(541)	(458)
Recoveries	336	425	267
Ending balance	488	346	351
Allowance for loan losses Ending balance attributed to:
Loans collectively evaluated for impairment				488	346
Ending balance	$ 346	$ 351	$ 291	488	346
Loans:
Loans individually evaluated for impairment				33	20
Loans collectively evaluated for impairment				28,136	27,858
Ending balance				$ 28,169	$ 27,878

OREO (Details) - USD ($) $ in Thousands	12 Months Ended
OREO (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
OREO
Other Real Estate, Beginning Balance	$ 1,283	$ 2,518
Additions, transfers from loans	4,025	1,417
Proceeds from sales of OREO	(5,298)	(5,024)	$ (4,498)
Gain on sales of OREO	384	1,632
Valuation allowance for OREO	(18)	(42)
Other Real Estate, Ending Balance	376	1,283	$ 2,518
Commercial real estate
Foreclosed Real Estate
Other real estate owned (OREO)	200	1,200
Residential real estate
Foreclosed Real Estate
Other real estate owned (OREO)	200	100
Residential real estate in the process of foreclosure	$ 2,900
First Community
OREO
Additions, fair value from acquisition		722
Mid Illinois
OREO
Additions, fair value from acquisition		$ 60

Premises and Equipment, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Premises and Equipment
Premises and equipment, gross	$ 192,650	$ 183,228
Less accumulated depreciation	74,978	66,315
Total premises and equipment, net	117,672	116,913
Depreciation expense	9,556	8,577	$ 7,295
Land and improvements
Premises and Equipment
Premises and equipment, gross	36,453	36,249
Buildings and improvements
Premises and Equipment
Premises and equipment, gross	108,137	104,656
Furniture and equipment
Premises and Equipment
Premises and equipment, gross	$ 48,060	$ 42,323

Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) segment	Dec. 31, 2017 USD ($)	Jul. 02, 2017 USD ($)	Apr. 30, 2016 USD ($)
Goodwill and other intangibles assets
Number of operating segments \| segment	3
Total goodwill	$ 267,685	$ 269,346
First Community
Goodwill and other intangibles assets
Total goodwill			$ 115,982
Other intangible assets			$ 13,979
Pulaski
Goodwill and other intangibles assets
Total goodwill				$ 77,304
Other intangible assets				$ 15,468
Mid Illinois
Goodwill and other intangibles assets
Changes in the carrying amount of goodwill	1,700
Banking
Goodwill and other intangibles assets
Total goodwill	246,999	248,660
Banking \| First Community
Goodwill and other intangibles assets
Total goodwill		116,000
Other intangible assets		14,000
Banking \| Mid Illinois
Goodwill and other intangibles assets
Total goodwill		50,600
Other intangible assets		10,500
Remittance Processing
Goodwill and other intangibles assets
Total goodwill	8,992	8,992
Wealth Management
Goodwill and other intangibles assets
Total goodwill	$ 11,694	11,694
Wealth Management \| Mid Illinois
Goodwill and other intangibles assets
Other intangible assets		$ 1,000

Goodwill and Other Intangible Assets - Amortized Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Amortized intangible assets:
Balance at the beginning of period	$ 38,727
Amortization	5,854	$ 5,245	$ 4,438
Balance at the end of period	32,873	38,727
Core deposit intangible assets
Amortized intangible assets:
Balance at the beginning of period	37,371
Amortization	5,535	4,529
Balance at the end of period	31,836	37,371
Customer relationship intangible assets
Amortized intangible assets:
Balance at the beginning of period	1,356
Amortization	319	716
Balance at the end of period	$ 1,037	$ 1,356

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Goodwill and other intangibles assets
Net carrying amount	$ 32,873	$ 38,727
Estimated amortization expense:
Net carrying amount	32,873	38,727
Core deposit intangible assets
Goodwill and other intangibles assets
Gross carrying amount	63,029
Accumulated amortization	31,193
Net carrying amount	31,836	37,371
Estimated amortization expense:
2019	5,108
2020	4,680
2021	4,251
2022	3,820
2023	3,387
Thereafter	10,590
Net carrying amount	31,836	37,371
Customer relationship intangible assets
Goodwill and other intangibles assets
Gross carrying amount	13,168
Accumulated amortization	12,131
Net carrying amount	1,037	1,356
Estimated amortization expense:
2019	276
2020	233
2021	191
2022	148
2023	106
Thereafter	83
Net carrying amount	$ 1,037	$ 1,356

Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deposits
Demand deposits, noninterest-bearing	$ 1,464,700	$ 1,597,421
Interest-bearing transaction deposits	1,435,574	1,166,170
Saving deposits and money market deposits	1,852,044	2,026,212
Time deposits	1,497,003	1,336,162
Total deposits	6,249,321	6,125,965
Reciprocal brokered transaction deposits included in interest-bearing transaction deposits		5,000
Reciprocal brokered transaction deposits included in savings deposits and money market funds	17,500	75,100
Time deposits minimum denomination of $100,000 or more	673,700	578,900
Time deposits minimum denomination of $250,000 or more	264,100	197,900
Brokered deposits included in the balance of time deposits	262,500	247,700
Deposits
2019	996,048
2020	305,167
2021	83,220
2022	72,048
2023	40,504
Thereafter	16
Deposits
Total	$ 1,497,003	$ 1,336,162

Borrowings - Maturity period (Details) - USD ($)	12 Months Ended
Borrowings - Maturity period (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Maturity period
Federal Funds Purchased	$ 0	$ 0
Maximum maturity period of short-term debt	1 year

Borrowings - Short-term borrowings (Details) - USD ($)	Jan. 29, 2019	Dec. 31, 2018	Apr. 30, 2018	Dec. 31, 2017
One-month LIBOR rate \| Subsequent event
Borrowings
Interest rate (as a percent)	1.50%
Revolving loan facility
Borrowings
Outstanding amounts		$ 0		$ 0
Second amendment to extend credit facility
Borrowings
Maximum borrowing capacity			$ 40,000,000
Third amendment to extend credit facility
Borrowings
Maximum borrowing capacity		$ 20,000,000
Term Loan \| Subsequent event
Borrowings
Maximum borrowing capacity	$ 60,000,000

Borrowings - Securities sold under agreements to repurchase and short-term borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Securities sold under agreements to repurchase
Balance at end of period	$ 185,796	$ 304,566
Weighted average interest rate at end of period (as a percent)	1.05%	0.57%
Maximum outstanding at any month end in year-to-date period	$ 267,596	$ 304,566
Average daily balance for the year-to-date period	$ 234,239	$ 213,527
Weighted average interest rate during period (as a percent)	0.69%	0.46%
Short-term borrowings
Balance at end of period		$ 220,000
FHLB advances
Short-term borrowings
Balance at end of period		$ 220,000
Weighted average interest rate at end of period		1.42%
Maximum outstanding at any month end in year-to-date period	$ 225,000	$ 234,600
Average daily balance for the year-to-date period	$ 81,438	$ 84,201
Weighted average interest rate during period	1.80%	1.20%

Borrowings - Long-term debt (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Long-term debt
Long-term debt	$ 50,000	$ 50,000
FHLB advances
Long-term debt
Long-term debt	$ 50,000	$ 50,000
Weighted average rate (as a percent)	2.28%	1.19%
FHLB advances \| Minimum
Long-term debt
Notes payable original maturity term	19 months	19 months
Interest rate (as a percent)	2.20%	1.10%
FHLB advances \| Maximum
Long-term debt
Notes payable original maturity term	10 years	10 years
Interest rate (as a percent)	2.41%	1.32%

Borrowings - Senior notes and Subordinate notes (Details) - USD ($) $ in Millions	May 25, 2017	Dec. 31, 2018	Dec. 31, 2017	Jul. 02, 2017
Long-term debt
Unamortized debt issuance cost		$ 5.6	$ 4.1
Senior notes
Long-term debt
Issuance of debt	$ 40.0
Interest rate (as a percent)	3.75%
Unamortized debt issuance cost		0.5	0.6
Subordinated debt
Long-term debt
Issuance of debt	$ 60.0
Interest rate (as a percent)	4.75%
Term of debt instrument	5 years
Unamortized debt issuance cost		$ 0.9	$ 1.0
Three-month LIBOR \| Subordinated debt
Long-term debt
Floating interest rate margin (as a percent)	2.919%
First Community \| Subordinated debt
Long-term debt
Assumed debt				$ 15.3
Debt instrument redeemed				9.8
Purchase accounting premium				$ 0.3

Junior Subordinated Debt Owed to Unconsolidated Trusts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Junior subordinated debt owed to unconsolidated trusts
Junior subordinated debt owed to unconsolidated trusts	$ 71,155	$ 71,008
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%
Maximum of holding companies assets retained	$ 15,000,000
Junior Subordinated Notes \| Trust Preferred Securities
Junior subordinated debt owed to unconsolidated trusts
Maximum period to defer payment of interest on the notes and, therefore, distributions on the trust preferred securities	5 years
Parent
Junior subordinated debt owed to unconsolidated trusts
Junior subordinated debt owed to unconsolidated trusts	$ 71,155	$ 71,008

Regulatory Capital (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Total Capital (to Risk Weighted Assets), Amount
Actual	$ 894,572	$ 837,183
Minimum Capital Requirement	482,638	473,310
Minimum To Be Well Capitalized	$ 603,297	$ 591,638
Total Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)	14.83%	14.15%
Minimum Capital Requirement (as a percent)	8.00%	8.00%
Minimum To Be Well Capitalized (as a percent)	10.00%	10.00%
Tier 1 Capital (to Risk Weighted Assets), Amount
Actual	$ 783,924	$ 718,101
Minimum Capital Requirement	361,978	354,983
Minimum To Be Well Capitalized	$ 482,638	$ 473,310
Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)	12.99%	12.14%
Minimum Capital Requirement (as a percent)	6.00%	6.00%
Minimum To Be Well Capitalized (as a percent)	8.00%	8.00%
Common Equity Tier 1 Capital (to Risk Weighted Assets), Amount
Actual	$ 709,924	$ 644,633
Minimum Capital Requirement	271,484	266,237
Minimum To Be Well Capitalized	$ 392,143	$ 384,565
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)	11.77%	10.90%
Minimum Capital Requirement (as a percent)	4.50%	4.50%
Minimum To Be Well Capitalized (as a percent)	6.50%	6.50%
Tier 1 Capital (to Average Assets), Amount
Actual	$ 783,924	$ 718,101
Minimum Capital Requirement	$ 302,704	$ 293,588
Tier 1 Capital (to Average Assets), Ratio
Actual (as a percent)	10.36%	9.78%
Minimum Capital Requirement (as a percent)	4.00%	4.00%
Busey Bank
Total Capital (to Risk Weighted Assets), Amount
Actual	$ 854,351	$ 704,807
Minimum Capital Requirement	481,701	441,062
Minimum To Be Well Capitalized	$ 602,126	$ 551,327
Total Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)	14.19%	12.78%
Minimum Capital Requirement (as a percent)	8.00%	8.00%
Minimum To Be Well Capitalized (as a percent)	10.00%	10.00%
Tier 1 Capital (to Risk Weighted Assets), Amount
Actual	$ 803,703	$ 651,432
Minimum Capital Requirement	361,276	330,797
Minimum To Be Well Capitalized	$ 481,701	$ 441,062
Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)	13.35%	11.82%
Minimum Capital Requirement (as a percent)	6.00%	6.00%
Minimum To Be Well Capitalized (as a percent)	8.00%	8.00%
Common Equity Tier 1 Capital (to Risk Weighted Assets), Amount
Actual	$ 803,703	$ 651,432
Minimum Capital Requirement	270,957	248,098
Minimum To Be Well Capitalized	$ 391,382	$ 358,363
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)	13.35%	11.82%
Minimum Capital Requirement (as a percent)	4.50%	4.50%
Minimum To Be Well Capitalized (as a percent)	6.50%	6.50%
Tier 1 Capital (to Average Assets), Amount
Actual	$ 803,703	$ 651,432
Minimum Capital Requirement	302,232	265,847
Minimum To Be Well Capitalized	$ 377,789	$ 332,309
Tier 1 Capital (to Average Assets), Ratio
Actual (as a percent)	10.64%	9.80%
Minimum Capital Requirement (as a percent)	4.00%	4.00%
Minimum To Be Well Capitalized (as a percent)	5.00%	5.00%
South Side Bank
Total Capital (to Risk Weighted Assets), Amount
Actual		$ 84,914
Minimum Capital Requirement		30,049
Minimum To Be Well Capitalized		$ 37,561
Total Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)		22.61%
Minimum Capital Requirement (as a percent)		8.00%
Minimum To Be Well Capitalized (as a percent)		10.00%
Tier 1 Capital (to Risk Weighted Assets), Amount
Actual		$ 84,707
Minimum Capital Requirement		22,537
Minimum To Be Well Capitalized		$ 30,049
Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)		22.55%
Minimum Capital Requirement (as a percent)		6.00%
Minimum To Be Well Capitalized (as a percent)		8.00%
Common Equity Tier 1 Capital (to Risk Weighted Assets), Amount
Actual		$ 84,707
Minimum Capital Requirement		16,903
Minimum To Be Well Capitalized		$ 24,415
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual (as a percent)		22.55%
Minimum Capital Requirement (as a percent)		4.50%
Minimum To Be Well Capitalized (as a percent)		6.50%
Tier 1 Capital (to Average Assets), Amount
Actual		$ 84,707
Minimum Capital Requirement		26,571
Minimum To Be Well Capitalized		$ 33,214
Tier 1 Capital (to Average Assets), Ratio
Actual (as a percent)		12.75%
Minimum Capital Requirement (as a percent)		4.00%
Minimum To Be Well Capitalized (as a percent)		5.00%

Income Taxes (Details) - USD ($)	3 Months Ended								12 Months Ended
Income Taxes (Details) - USD ($)	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current expense:
Federal									$ 18,076,000	$ 27,168,000	$ 15,486,000
State									9,807,000	4,117,000	785,000
Deferred expense:
Federal									5,068,000	11,583,000	6,147,000
State									2,048,000	2,517,000	4,305,000
Total income tax expense	$ 8,891,000	$ 9,081,000	$ 8,749,000	$ 8,278,000	$ 18,405,000	$ 9,561,000	$ 8,681,000	$ 8,738,000	$ 34,999,000	$ 45,385,000	$ 26,723,000
Reconciliation of federal and state income taxes at statutory rates to the income taxes included in the statements of operations
Income tax at statutory rate (as a percent)									21.00%	35.00%	35.00%
TCJA (as a percent)										7.50%
Tax-exempt interest, net (as a percent)									(1.30%)	(2.10%)	(2.40%)
Stock incentive (as a percent)									(0.30%)	(0.50%)
State income taxes, net (as a percent)									7.30%	4.00%	4.30%
Income on bank owned life insurance (as a percent)									(0.60%)	(0.90%)	(1.00%)
Other, net (as a percent)										(1.00%)	(0.90%)
Total (as a percent)									26.10%	42.00%	35.00%
Deferred tax assets:
Unrealized losses on securities available for sale	2,716,000				1,362,000				$ 2,716,000	$ 1,362,000
Allowance for loan losses	14,885,000				15,751,000				14,885,000	15,751,000
Stock-based compensation	2,208,000				1,869,000				2,208,000	1,869,000
Deferred compensation	1,454,000				2,455,000				1,454,000	2,455,000
Affordable housing partnerships and other investments	691,000				970,000				691,000	970,000
Purchase accounting adjustments	4,563,000				7,712,000				4,563,000	7,712,000
Accrued vacation	744,000				604,000				744,000	604,000
Employee costs	260,000				759,000				260,000	759,000
Other	1,095,000				1,336,000				1,095,000	1,336,000
Total	28,616,000				32,818,000				28,616,000	32,818,000
Deferred tax liabilities:
Basis in premises and equipment	(1,213,000)				(1,909,000)				(1,213,000)	(1,909,000)
Affordable housing partnerships and other investments	1,868,000				1,769,000				1,868,000	1,769,000
Purchase accounting adjustments	(1,102,000)				(1,262,000)				(1,102,000)	(1,262,000)
Mortgage servicing assets	(1,159,000)				(1,120,000)				(1,159,000)	(1,120,000)
Basis in core deposit and customer intangible assets	(9,299,000)				(10,955,000)				(9,299,000)	(10,955,000)
Deferred loan origination costs	1,593,000				1,168,000				1,593,000	1,168,000
Other	(984,000)								(984,000)
Deferred tax liabilities	(17,218,000)				(18,183,000)				(17,218,000)	(18,183,000)
Net operating loss carryforward, net of valuation allowance	33,000				2,661,000				33,000	2,661,000
Net deferred tax assets	11,431,000				17,296,000				11,431,000	17,296,000
Non-cash charge due to revaluation of Company's net deferred tax position following the enactment of the TCJA					8,100,000
Valuation allowance required for other deferred tax assets	$ 0				0				$ 0	0
Federal
Deferred tax liabilities:
Pre-tax operating loss carryforwards					12,700,000					12,700,000
Florida
Deferred tax liabilities:
Valuation allowance					$ 100,000					$ 100,000

Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Employees' Stock Ownership Plan
Number of allocated shares acquired prior to December 31, 1992	115,602	121,082
Associated fair values of allocated shares acquired prior to December 31, 1992	$ 2.8	$ 3.6
Shares
Allocated shares	36,639	42,439
Fair Value
Allocated shares, Fair Value	$ 0.9	$ 1.3
Profit Sharing Plan
Vesting period	5 years
Expenses related to employee benefit plans
Employee benefits	$ 5.4	5.1	$ 4.3
Deferred compensation plans for deferral of performance bonuses
Deferred compensation expense	0.3	0.3	$ 0.3
Deferred compensation liability	6.4	$ 10.2
Mid Illinois Bancorp, Inc.
Deferred compensation plans for deferral of performance bonuses
Deferred compensation liability	$ 3.9

Share-based Compensation (Details) - USD ($)	12 Months Ended
Share-based Compensation (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2015	Dec. 31, 2017	Feb. 03, 2015
Share-based Compensation
Maximum number of shares that may be delivered to participants	1,333,333
Period from effective date after which no awards may be granted	10 years
Number of shares held in treasury	310,745		500,638
Shares authorized for repurchase under stock repurchase plan				666,667
Purchase of treasury stock		333,333
Number of shares that may yet be purchased	333,334
RSU
Share-based Compensation
Number of shares of common stock per award	1
Minimum \| RSU
Share-based Compensation
Requisite service periods	1 year
Minimum \| DSUs
Share-based Compensation
Vesting period	12 months
Maximum \| Options and SARs
Share-based Compensation
Shares available for grant during any calendar year	133,333
Maximum \| Stock awards
Share-based Compensation
Shares available for grant during any calendar year	66,667
Maximum \| Cash incentive awards and cash-settled stock awards
Share-based Compensation
Amount of award payable with respect to any calendar year	$ 1,000,000
Maximum \| RSU
Share-based Compensation
Requisite service periods	5 years
Directors \| DSUs
Share-based Compensation
Number of shares of common stock per award	1
Settlement period	30 days
First Community 2016 Equity Incentive Plan
Share-based Compensation
Maximum number of shares that may be delivered to participants	443,619

Share-based Compensation - Award Status (Details)			12 Months Ended
Share-based Compensation - Award Status (Details)	Jul. 02, 2017 $ / shares	Jun. 30, 2017 $ / shares	Dec. 31, 2018 $ / shares shares	Dec. 31, 2017 $ / shares shares	Dec. 31, 2016 $ / shares shares
Additional disclosures
Per share cash consideration entitled (in dollars per share)	$ 1.35
First Community
Additional disclosures
Share consideration conversion ratio		0.396
Per share cash consideration entitled (in dollars per share)		$ 1.35
Stock option awards
Shares
Outstanding at beginning of year (in shares) \| shares			213,428	209,382	96,568
Exercised (in shares) \| shares			(105,275)	(99,605)	(145,774)
Forfeited (in shares) \| shares			(16,014)	(5,279)	(394)
Expired (in shares) \| shares			(4,539)	(12,430)	(50,718)
Outstanding at end of year (in shares) \| shares			87,600	213,428	209,382
Exercisable at end of year (in shares) \| shares			70,034	167,144	209,382
Weighted-Average Exercise Price
Outstanding at beginning of year (in dollars per share)			$ 16.97	$ 15.13	$ 43.64
Exercised (in dollars per share)			13.38	13.74	15.09
Forfeited (in dollars per share)			22.02	23.53	13.87
Expired (in dollars per share)			12.90	52.40	58.23
Outstanding at end of year (in dollars per share)			20.58	16.97	15.13
Exercisable at end of year (in dollars per share)			$ 19.84	$ 15.16	$ 15.13
Stock option awards \| Pulaski
Shares
Converted options(in shares) \| shares					309,700
Weighted-Average Exercise Price
Converted options(in dollars per share)					$ 13.29
Stock option awards \| First Community
Shares
Converted options(in shares) \| shares				121,360
Weighted-Average Exercise Price
Converted options(in dollars per share)				$ 21.41

Share-based Compensation - Options Outstanding (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Additional disclosures
Compensation expense recognized	$ 3,500,000	$ 2,600,000	$ 1,800,000
Period over which cost will be recognized	3 years 7 months 6 days
Stock option awards
Options Outstanding
Number (in shares)	87,600
Weighted-Average Exercise Price (in dollars per share)	$ 20.58
Weighted-Average Remaining Contractual Life	5 years 3 months 4 days
Intrinsic Value (in dollars)	$ 312
Options Exercisable
Number (in shares)	70,034
Intrinsic Value (in dollars)	$ 295
Additional disclosures
Compensation expense recognized		$ 200,000
Unrecognized stock option expense	$ 200,000
$10.43-$13.47 \| Stock option awards
Range of Exercise Prices
Low end of the range (in dollars per share)	$ 10.43
High end of the range (in dollars per share)	$ 13.47
Options Outstanding
Number (in shares)	21,173
Weighted-Average Exercise Price (in dollars per share)	$ 12.31
Weighted-Average Remaining Contractual Life	2 years 1 month 28 days
Options Exercisable
Number (in shares)	21,173
$17.05 \| Stock option awards
Options Outstanding
Number (in shares)	924
Weighted-Average Exercise Price (in dollars per share)	$ 17.05
Weighted-Average Remaining Contractual Life	1 year 18 days
Options Exercisable
Number (in shares)	924
$21.03-$23.53 \| Stock option awards
Range of Exercise Prices
Low end of the range (in dollars per share)	$ 21.03
High end of the range (in dollars per share)	$ 23.53
Options Outstanding
Number (in shares)	65,503
Weighted-Average Exercise Price (in dollars per share)	$ 23.30
Weighted-Average Remaining Contractual Life	6 years 3 months 26 days
Options Exercisable
Number (in shares)	47,937

Share-based Compensation - Restricted and Deferred Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Aug. 01, 2018	Aug. 01, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Shares
Reclass DSU to RSU			23,977
Forfeited (in shares)			(201)
Weighted-Average Grant Date Fair Value
Reclass DSU to RSU (in dollars per share)			$ 25.47
Forfeited (in dollars per share)			$ 31.67
Additional disclosures
Compensation expense recognized			$ 3,500	$ 2,600	$ 1,800
Amount of compensation cost to be recognized			$ 10,900
Period over which cost will be recognized			3 years 7 months 6 days
Stock Issued During Period Shares Equity Instruments Other than Options Vested and Related Tax Benefit			104,637	79,459	43,396
RSU
Shares
Non-vested at beginning of year (in shares)			587,763	552,610	424,930
Granted (in shares)			172,571	160,532	126,669
Dividend equivalents earned (in shares)			16,879	13,479	14,935
Vested (in shares)			(104,512)	(116,498)	(54,913)
Forfeited (in shares)			(6,183)	(22,360)	(12,015)
Non-vested at end of year (in shares)			690,495	587,763	552,610
Weighted-Average Grant Date Fair Value
Non-vested at beginning of year (in dollars per share)			$ 22.68	$ 18.45	$ 17.10
Granted (in dollars per share)			31.70	30.34	22.44
Dividend equivalents earned (in dollars per share)			29.96	30.14	21.09
Vested (in dollars per share)			16.40	14.73	14.61
Forfeited (in dollars per share)			24.84	19.20	15.19
Non-vested at end of year (in dollars per share)			$ 26.14	$ 22.68	$ 18.45
Additional disclosures
Compensation expense recognized			$ 0
Stock Issued During Period Shares Equity Instruments Other than Options Vested and Related Tax Benefit			104,637	79,459	43,396
RSU \| Members of management
Shares
Stock price (in dollars per share)	$ 31.70
Additional disclosures
Compensation expense recognized	$ 5,200
Vesting percentage (as a percent)	100.00%
RSU \| Members of management \| Minimum
Additional disclosures
Period over which cost will be recognized	4 years
RSU \| Members of management \| Maximum
Additional disclosures
Period over which cost will be recognized	5 years
DSUs
Shares
Non-vested at beginning of year (in shares)			42,411	35,038	24,763
Granted (in shares)			20,500	24,100	22,428
Dividend equivalents earned (in shares)			2,300	2,426	2,576
Vested (in shares)			(20,584)	(19,153)	(14,729)
Non-vested at end of year (in shares)			20,449	42,411	35,038
Outstanding at end of year (in shares)			86,700	119,985	93,459
Weighted-Average Grant Date Fair Value
Non-vested at beginning of year (in dollars per share)			$ 25.47	$ 21.04	$ 19.25
Granted (in dollars per share)			31.70	29.61	22.44
Dividend equivalents earned (in dollars per share)			29.99	30.22	21.20
Vested (in dollars per share)			29.68	23.18	20.18
Non-vested at end of year (in dollars per share)			27.93	25.47	21.04
Outstanding at end of year (in dollars per share)			$ 22.42	$ 21.00	$ 18.54
DSUs \| Directors
Shares
Stock price (in dollars per share)		$ 31.70
Additional disclosures
Amount of compensation cost to be recognized		$ 600
Period over which cost will be recognized		1 year
Pulaski \| RSU
Shares
Converted units from Pulaski					53,004
Weighted-Average Grant Date Fair Value
Converted units from Pulaski					$ 14.25
First Community 2016 Equity Incentive Plan \| RSU \| Members of management
Shares
Granted (in shares)	12,545
First Community 2016 Equity Incentive Plan \| DSUs \| Directors
Shares
Granted (in shares)		1,500
2010 Equity Incentive Plan \| RSU \| Members of management
Shares
Granted (in shares)	152,926
2010 Equity Incentive Plan \| RSU \| Chairman
Shares
Granted (in shares)	7,100
Stock price (in dollars per share)	$ 31.70
Additional disclosures
Compensation expense recognized	$ 200
Period over which cost will be recognized	5 years
Vesting percentage (as a percent)	100.00%
2010 Equity Incentive Plan \| DSUs \| Directors
Shares
Granted (in shares)		17,500
2010 Equity Incentive Plan \| DSUs \| Advisory Directors
Shares
Granted (in shares)	1,500

Transactions with Related Parties (Details) $ in Thousands	12 Months Ended
Transactions with Related Parties (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Analysis of the changes in loans to related parties
Balance at beginning of year	$ 46,915
Change in relationship	(5,891)
New loans/advances	4,795
Repayments	(13,025)
Balance at end of year	32,794
Directors and executive officers
Analysis of the changes in loans to related parties
Total unused commitments	$ 20,300

Outstanding Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Lease Commitments
Rent expense under operating leases	$ 2,400	$ 3,700	$ 2,700
Projected minimum rental payments under the terms of leases
2019	1,716
2020	1,571
2021	1,019
2022	795
2023	503
Thereafter	1,189
Total	6,793
Commitments to extend credit
Credit Commitments and Contingencies
Financial instruments whose contract amounts represent credit risk	1,398,483	1,300,294
Standby letters of credit
Credit Commitments and Contingencies
Financial instruments whose contract amounts represent credit risk	$ 32,156	$ 37,231

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest Rate Lock Commitments
Derivative Financial Instruments
Aggregate notional amount	$ 27,200	$ 51,700
Forward Sales Commitments
Derivative Financial Instruments
Aggregate notional amount	48,600	139,700
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Net gains (losses)	(380)	1,474	$ 487
Forward Sales Commitments \| Non-interest income
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Gross gains	3,494	14,724	25,270
Forward Sales Commitments \| Non-interest expense
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Gross (losses)	(3,874)	(13,250)	$ (24,783)
Interest rate lock commitments and forward sales commitments \| Other assets
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	624	675
Interest rate lock commitments and forward sales commitments \| Other liabilities
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other liabilities	1,205	2,148
Interest rate swap
Derivative Financial Instruments
Aggregate notional amount	243,700	161,300
Variable rate, commercial loans that are supported by the interest rate swap contracts	121,800	80,700
Derivative cash pledged	1,000	2,000
Derivative securities pledged		400
Interest rate swap \| Non-interest income
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Gross gains	1,176	262
Interest rate swap \| Non-interest expense
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Gross (losses)	(1,176)	(262)
Interest rate swap \| Other assets
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	1,438	262
Interest rate swap \| Other liabilities
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other liabilities	$ 1,438	$ 262

Fair Value Measurements - General Disclosures (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Financial assets and financial liabilities measured at fair value
Transfers between levels of fair value hierarchy	$ 0	$ 0
Securities available for sale	697,685,000	872,682,000
Securities equity investments	6,169,000	5,378,000
Loans held for sale	25,895,000	94,848,000
Derivative assets
Financial assets and financial liabilities measured at fair value
Fair value recorded in other assets	2,062,000
Derivative liabilities
Financial assets and financial liabilities measured at fair value
Fair value recorded in other liabilities	2,643,000
U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	25,411,000	60,348,000
Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Securities available for sale	52,342,000	103,665,000
Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Securities available for sale	170,044,000	280,199,000
Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	1,942,000
Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	315,748,000	397,436,000
Corporate debt securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	132,198,000	31,034,000
Level 2 \| Derivative assets
Financial assets and financial liabilities measured at fair value
Fair value recorded in other assets	2,062,000
Level 2 \| Derivative liabilities
Financial assets and financial liabilities measured at fair value
Fair value recorded in other liabilities	2,643,000
Recurring basis
Financial assets and financial liabilities measured at fair value
Securities equity investments	6,169,000	5,378,000
Loans held for sale	25,895,000	94,848,000
Recurring basis \| Derivative assets
Financial assets and financial liabilities measured at fair value
Fair value recorded in other assets		937,000
Recurring basis \| Derivative liabilities
Financial assets and financial liabilities measured at fair value
Fair value recorded in other liabilities		2,410,000
Recurring basis \| U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	25,411,000	60,348,000
Recurring basis \| Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Securities available for sale	52,342,000	103,665,000
Recurring basis \| Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Securities available for sale	170,044,000	280,199,000
Recurring basis \| Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	1,942,000
Recurring basis \| Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	315,748,000	397,436,000
Recurring basis \| Corporate debt securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	132,198,000	31,034,000
Recurring basis \| Level 1
Financial assets and financial liabilities measured at fair value
Securities equity investments	6,169,000	5,378,000
Recurring basis \| Level 2
Financial assets and financial liabilities measured at fair value
Loans held for sale	25,895,000	94,848,000
Recurring basis \| Level 2 \| Derivative assets
Financial assets and financial liabilities measured at fair value
Fair value recorded in other assets		937,000
Recurring basis \| Level 2 \| Derivative liabilities
Financial assets and financial liabilities measured at fair value
Fair value recorded in other liabilities		2,410,000
Recurring basis \| Level 2 \| U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	25,411,000	60,348,000
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	52,342,000	103,665,000
Recurring basis \| Level 2 \| Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Securities available for sale	170,044,000	280,199,000
Recurring basis \| Level 2 \| Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	1,942,000
Recurring basis \| Level 2 \| Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	315,748,000	397,436,000
Recurring basis \| Level 2 \| Corporate debt securities
Financial assets and financial liabilities measured at fair value
Securities available for sale	$ 132,198,000	$ 31,034,000

Fair Value Measurements - Additional Quantitative Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired loans	$ 50,182	$ 41,837
Non-recurring basis
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired loans	10,999	1,313
OREO	55
Bank property held for sale	1,832
Non-recurring basis \| Level 3
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired loans	10,999	1,313
OREO	55
Bank property held for sale	$ 1,832
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Appraisal adjustments (as a percent)	(100.00%)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Weighted Average
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Appraisal adjustments (as a percent)	(24.10%)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Impaired loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired loans	$ 10,999	$ 1,313
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Impaired loans \| Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Appraisal adjustments (as a percent)	(3.30%)	(20.30%)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Impaired loans \| Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Appraisal adjustments (as a percent)	(100.00%)	(100.00%)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
OREO	$ 55
Appraisal adjustments (as a percent)	(25.00%)	(100.00%)
Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO \| Weighted Average
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Appraisal adjustments (as a percent)	(65.00%)	(100.00%)
Non-recurring basis \| Level 3 \| Appraisal of collateral or real estate listing price \| Impaired loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Appraisal adjustments (as a percent)		(30.80%)
Non-recurring basis \| Level 3 \| Appraisal of collateral or real estate listing price \| Bank property held for sale
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Bank property held for sale	$ 1,832
Non-recurring basis \| Level 3 \| Appraisal of collateral or real estate listing price \| Bank property held for sale \| Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Appraisal adjustments (as a percent)	0.00%
Non-recurring basis \| Level 3 \| Appraisal of collateral or real estate listing price \| Bank property held for sale \| Weighted Average
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Appraisal adjustments (as a percent)	(28.30%)

Fair Value Measurements - Segregated by Level of Valuation Inputs (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financial assets:
Cash and cash equivalents	$ 239,973	$ 353,272
Securities held to maturity	603,360	441,052
Portfolio loans, net	5,517,780	5,465,918
Mortgage servicing rights	11,100	8,600
Financial liabilities:
Short-term borrowings		220,000
Junior subordinated debt owed to unconsolidated trusts	71,155	71,008
Carrying Amount
Financial liabilities:
Time deposits	1,497,003
Fair Value
Financial liabilities:
Time deposits	1,482,301
Level 1 \| Carrying Amount
Financial assets:
Cash and cash equivalents	239,973	353,272
Level 1 \| Fair Value
Financial assets:
Cash and cash equivalents	239,973	353,272
Level 2 \| Carrying Amount
Financial assets:
Securities held to maturity	608,660	443,550
Accrued interest receivable	22,314	22,591
Financial liabilities:
Deposits		6,125,965
Securities sold under agreements to repurchase	185,796	304,566
Short-term borrowings		220,000
Long-term debt	50,000	50,000
Junior subordinated debt owed to unconsolidated trusts	71,155	71,008
Accrued interest payable	6,568	2,581
Level 2 \| Fair Value
Financial assets:
Securities held to maturity	603,360	441,052
Accrued interest receivable	22,314	22,591
Financial liabilities:
Deposits		6,119,135
Securities sold under agreements to repurchase	185,796	304,566
Short-term borrowings		220,000
Long-term debt	49,873	50,000
Junior subordinated debt owed to unconsolidated trusts	65,182	71,008
Accrued interest payable	6,568	2,581
Level 3 \| Carrying Amount
Financial assets:
Portfolio loans, net	5,517,780	5,465,918
Mortgage servicing rights	3,315	3,680
Other servicing rights	781	280
Level 3 \| Fair Value
Financial assets:
Portfolio loans, net	5,473,063	5,361,406
Mortgage servicing rights	11,051	8,635
Other servicing rights	1,443	901
Level 3 \| Senior notes \| Carrying Amount
Financial liabilities:
Long-term debt	39,539	39,404
Level 3 \| Senior notes \| Fair Value
Financial liabilities:
Long-term debt	39,452	39,104
Level 3 \| Subordinated debt \| Carrying Amount
Financial liabilities:
Long-term debt	59,147	64,715
Level 3 \| Subordinated debt \| Fair Value
Financial liabilities:
Long-term debt	$ 58,186	$ 64,350

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net income per share calculations for basic and diluted methods
Net income available to common stockholders (in dollars)									$ 98,928	$ 62,726	$ 49,694
Shares:
Weighted average common shares outstanding									48,854,000	42,685,000	35,081,000
Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method (in shares)									361,000	441,000	332,000
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation									49,215,000	43,126,000	35,413,000
Basic earnings per common share (in dollars per share)	$ 0.52	$ 0.55	$ 0.51	$ 0.45	$ 0.25	$ 0.41	$ 0.43	$ 0.40	$ 2.02	$ 1.47	$ 1.42
Diluted earnings per common share (in dollars per share)	$ 0.51	$ 0.55	$ 0.51	$ 0.45	$ 0.25	$ 0.41	$ 0.43	$ 0.39	$ 2.01	$ 1.45	$ 1.40
Stock options
Anti-dilutive securities excluded from the calculation of common stock equivalents
Number of anti-dilutive securities (in shares)										75,387
Warrants
Anti-dilutive securities excluded from the calculation of common stock equivalents
Number of anti-dilutive securities (in shares)									191,278	191,278
RSU
Anti-dilutive securities excluded from the calculation of common stock equivalents
Number of anti-dilutive securities (in shares)									172,571	9,425

Operating Segments and Related Information (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2018 USD ($) segment	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Operating Segments and Related Information
Number of reportable segments \| segment									3
Number of operating segments \| segment									3
Goodwill	$ 267,685				$ 269,346				$ 267,685	$ 269,346
Total Assets	7,702,357				7,860,640				7,702,357	7,860,640
Net interest income	60,503	$ 60,774	$ 60,372	$ 59,757	63,046	$ 55,941	$ 42,366	$ 42,013	241,406	203,366	$ 154,660
Non-interest income:	22,852	21,853	22,802	22,486	23,561	20,837	20,062	20,014	89,993	84,474	75,169
Non-interest expense:	48,769	45,929	47,305	51,040	53,100	46,939	36,768	37,619	193,043	174,426	147,862
Income before income taxes	34,181	35,940	33,611	30,195	30,698	28,345	25,160	23,908	133,927	108,111	76,417
Net income:	25,290	$ 26,859	$ 24,862	$ 21,917	12,293	$ 18,784	$ 16,479	$ 15,170	98,928	62,726	49,694
Banking
Operating Segments and Related Information
Goodwill	246,999				248,660				246,999	248,660
Remittance Processing
Operating Segments and Related Information
Goodwill	8,992				8,992				8,992	8,992
Wealth Management
Operating Segments and Related Information
Goodwill	11,694				11,694				11,694	11,694
Operating segments \| Banking
Operating Segments and Related Information
Goodwill	246,999				248,660				246,999	248,660
Total Assets	7,656,709				7,809,738				7,656,709	7,809,738
Net interest income									248,291	208,184	156,374
Non-interest income:									43,197	47,524	41,816
Non-interest expense:									154,455	139,521	117,293
Income before income taxes									132,604	110,884	75,347
Net income:									97,369	65,704	48,691
Operating segments \| Remittance Processing
Operating Segments and Related Information
Goodwill	8,992				8,992				8,992	8,992
Total Assets	39,278				34,646				39,278	34,646
Net interest income									67	60	55
Non-interest income:									15,876	12,137	11,554
Non-interest expense:									10,749	8,704	8,668
Income before income taxes									5,194	3,493	2,941
Net income:									3,710	2,007	1,758
Operating segments \| Wealth Management
Operating Segments and Related Information
Goodwill	11,694				11,694				11,694	11,694
Total Assets	20,992				32,077				20,992	32,077
Net interest income									327	321	266
Non-interest income:									31,621	27,270	23,563
Non-interest expense:									19,283	17,079	16,484
Income before income taxes									12,665	10,512	7,345
Net income:									9,372	6,229	4,388
Other
Operating Segments and Related Information
Total Assets	$ (14,622)				$ (15,821)				(14,622)	(15,821)
Net interest income									(7,279)	(5,199)	(2,035)
Non-interest income:									(701)	(2,457)	(1,764)
Non-interest expense:									8,556	9,122	5,417
Income before income taxes									(16,536)	(16,778)	(9,216)
Net income:									$ (11,523)	$ (11,214)	$ (5,143)

Parent Company Only Financial Information - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Cash and due from subsidiary banks	$ 128,838	$ 118,383
Securities equity investments	6,169	5,378
Investments in subsidiaries:
Premises and equipment, net	117,672	116,913
Other assets	48,043	55,973
Total assets	7,702,357	7,860,640
Liabilities:
Senior notes, net of unamortized issuance costs	39,539	39,404
Subordinated notes, net of unamortized issuance costs	59,147	64,715
Junior subordinated debentures owed to unconsolidated trusts	71,155	71,008
Other liabilities	52,435	49,979
Total liabilities	6,707,393	6,925,637
Total stockholders’ equity	994,964	935,003	$ 594,314	$ 373,186
Total liabilities and stockholders’ equity	7,702,357	7,860,640
Parent
ASSETS
Cash and due from subsidiary banks	72,007	54,946
Securities equity investments	6,162	836
Investments in subsidiaries:
Banks	1,088,710	1,012,396
Non-bank		26,319
Premises and equipment, net	67	41
Other assets	6,782	23,692
Total assets	1,173,728	1,118,230
Liabilities:
Senior notes, net of unamortized issuance costs	39,539	39,404
Subordinated notes, net of unamortized issuance costs	59,147	64,715
Junior subordinated debentures owed to unconsolidated trusts	71,155	71,008
Other liabilities	8,923	8,100
Total liabilities	178,764	183,227
Total stockholders’ equity	994,964	935,003
Total liabilities and stockholders’ equity	$ 1,173,728	$ 1,118,230

Parent Company Only Financial Information - Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Dividends from subsidiaries:
Security gains, net									$ 331	$ 1,143	$ 1,232
Other income									9,919	7,886	4,336
Expense:
Salaries, wages and employee benefits									107,844	95,633	78,397
Interest expense	$ 13,811	$ 11,987	$ 9,953	$ 8,876	$ 7,801	$ 6,578	$ 3,643	$ 2,914	44,627	20,936	10,229
Income tax benefit	(8,891)	(9,081)	(8,749)	(8,278)	(18,405)	(9,561)	(8,681)	(8,738)	(34,999)	(45,385)	(26,723)
Distributions less than (in excess of) net income of subsidiaries:
Net income	$ 25,290	$ 26,859	$ 24,862	$ 21,917	$ 12,293	$ 18,784	$ 16,479	$ 15,170	98,928	62,726	49,694
Parent
Dividends from subsidiaries:
Non-bank before Busey Trust merger									17,000	4,000	4,000
Interest income									747	264
Security gains, net									2,322
Other income									8,096	6,890	5,664
Total operating income									28,165	11,154	18,364
Expense:
Salaries, wages and employee benefits									13,624	11,398	8,879
Interest expense									8,026	5,464	2,035
Operating expense									6,051	7,060	3,967
Total expense									27,701	23,922	14,881
Income (loss) before income tax benefit and equity in undistributed (in excess of) net income of subsidiaries									464	(12,768)	3,483
Income tax benefit									5,013	5,553	4,073
Income (loss) before equity in undistributed (in excess of) net income of subsidiaries									5,477	(7,215)	7,556
Distributions less than (in excess of) net income of subsidiaries:
Banks									103,309	68,635	41,980
Non-bank before Busey Trust merger									(9,858)	1,306	158
Net income									$ 98,928	$ 62,726	49,694
Pulaski \| Parent
Dividends from subsidiaries:
Before bank merger											$ 8,700

Parent Company Only Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash Flows from Operating Activities
Net income	$ 98,928	$ 62,726	$ 49,694
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net security gains	(331)	(1,143)	(1,232)
Stock-based compensation	3,721	2,752	1,803
Changes in assets and liabilities:
Decrease (increase) in other assets	4,097	8,423	(407)
Increase (decrease) in other liabilities	2,195	(4,193)	(6,288)
Net cash provided by (used in) operating activities	202,547	253,358	(20,894)
Cash Flows from Investing Activities
Purchases of premises and equipment	(11,618)	(14,980)	(8,991)
Net cash (used in) provided by investing activities	(55,350)	(293,850)	149,743
Cash Flows from Financing Activities
Value of shares surrendered upon vesting to satisfy tax withholding obligations of stock-based compensation	(1,208)	(2,274)	(809)
Cash dividends paid	(39,010)	(30,707)	(22,748)
Repayment of subordinated debt	(5,500)
Proceeds from issuance of senior and subordinated debt		49,186
Proceeds from stock options exercised	392	906	4
Common stock issuance costs		(365)	(246)
Net cash (used in) provided by financing activities	(260,496)	227,058	(281,423)
Net increase in cash and due from subsidiary banks	(113,299)	186,566	(152,574)
Parent
Cash Flows from Operating Activities
Net income	98,928	62,726	49,694
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	212	428	198
Distributions less than net income of subsidiaries	(93,451)	(69,940)	(42,138)
Net security gains	(2,322)
Stock-based compensation	3,721	2,752	1,803
Changes in assets and liabilities:
Decrease (increase) in other assets	13,985	(1,105)	1,057
Increase (decrease) in other liabilities	1,361	(2,703)	(3,690)
Net cash provided by (used in) operating activities	22,434	(7,842)	6,924
Cash Flows from Investing Activities
Net cash (outlay) received for business acquisition		(61,371)	602
Purchases of premises and equipment	(46)		(3)
Net cash (used in) provided by investing activities	(46)	(61,371)	599
Cash Flows from Financing Activities
Proceeds from charter amendment with subsidiary bank	40,000	40,000	30,000
Value of shares surrendered upon vesting to satisfy tax withholding obligations of stock-based compensation	(817)	(1,414)	(809)
Cash dividends paid	(39,010)	(30,707)	(22,748)
Repayment of subordinated debt	(5,500)	(9,800)
Proceeds from issuance of senior and subordinated debt		98,312
Proceeds from stock options exercised		626
Common stock issuance costs		(365)	(246)
Net cash (used in) provided by financing activities	(5,327)	96,652	6,197
Net increase in cash and due from subsidiary banks	17,061	27,439	13,720
Cash and cash equivalents, beginning of period	54,946	27,507	13,787
Cash and cash equivalents, ending of period	$ 72,007	$ 54,946	$ 27,507

Unaudited Interim Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Unaudited Interim Financial Data
Total interest income	$ 74,314	$ 72,761	$ 70,325	$ 68,633	$ 70,847	$ 62,519	$ 46,009	$ 44,927	$ 286,033	$ 224,302	$ 164,889
Total interest expense	13,811	11,987	9,953	8,876	7,801	6,578	3,643	2,914	44,627	20,936	10,229
Net interest income	60,503	60,774	60,372	59,757	63,046	55,941	42,366	42,013	241,406	203,366	154,660
Provision for loan losses	405	758	2,258	1,008	2,809	1,494	500	500	4,429	5,303	5,550
Total non-interest income	22,852	21,853	22,802	22,486	23,561	20,837	20,062	20,014	89,993	84,474	75,169
Total non-interest expense	48,769	45,929	47,305	51,040	53,100	46,939	36,768	37,619	193,043	174,426	147,862
Income before income taxes	34,181	35,940	33,611	30,195	30,698	28,345	25,160	23,908	133,927	108,111	76,417
Income taxes	8,891	9,081	8,749	8,278	18,405	9,561	8,681	8,738	34,999	45,385	26,723
Net income	$ 25,290	$ 26,859	$ 24,862	$ 21,917	$ 12,293	$ 18,784	$ 16,479	$ 15,170	$ 98,928	$ 62,726	$ 49,694
Basic earnings per share (in dollars per share)	$ 0.52	$ 0.55	$ 0.51	$ 0.45	$ 0.25	$ 0.41	$ 0.43	$ 0.40	$ 2.02	$ 1.47	$ 1.42
Diluted earnings per share (in dollars per share)	$ 0.51	$ 0.55	$ 0.51	$ 0.45	$ 0.25	$ 0.41	$ 0.43	$ 0.39	$ 2.01	$ 1.45	$ 1.40