0001558370-21-001864 | 10-K | XBRL Viewer

As of December 31,

Financial instruments whose contract amounts represent credit risk:

Commitments to extend credit

Standby letters of credit

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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2020	Feb. 25, 2021	Jun. 30, 2020
Document and Entity Information
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2020
Entity File Number	0-15950
Entity Registrant Name	FIRST BUSEY CORPORATION
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	37-1078406
Entity Address, Address Line One	100 W. University Avenue
Entity Address, City or Town	Champaign
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	61820
City Area Code	217
Local Phone Number	365-4544
Title of 12(b) Security	Common Stock ($0.001 par value)
Trading Symbol	BUSE
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 946.5
Entity Common Stock, Shares Outstanding		54,404,379
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Central Index Key	0000314489
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 118,824	$ 136,546
Interest-bearing deposits	569,713	392,742
Total cash and cash equivalents	688,537	529,288
Debt securities available for sale	2,261,187	1,648,257
Equity securities	5,530	5,952
Loans held for sale, at fair value	42,813	68,699
Portfolio loans (net of allowance 2020 $101,048; 2019 $53,748)	6,713,129	6,633,501
Premises and equipment, net	135,191	151,267
Right of use asset	7,714	9,490
Goodwill	311,536	311,536
Other intangible assets, net	51,985	61,593
Cash surrender value of bank owned life insurance	176,405	173,595
Other assets	150,020	102,551
Total assets	10,544,047	9,695,729
Deposits:
Noninterest-bearing	2,552,039	1,832,619
Interest-bearing	6,125,810	6,069,777
Total deposits	8,677,849	7,902,396
Securities sold under agreements to repurchase	175,614	205,491
Short-term borrowings	4,658	8,551
Long-term debt	4,757	83,600
Senior notes, net of unamortized issuance costs	39,809	39,674
Subordinated notes, net of unamortized issuance costs	182,226	59,248
Junior subordinated debt owed to unconsolidated trusts	71,468	71,308
Lease liabilities	7,757	9,552
Other liabilities	109,840	95,475
Total liabilities	9,273,978	8,475,295
Outstanding commitments and contingent liabilities (see Notes 15, 16 and 22)
Stockholders' Equity
Common stock, $.001 par value, authorized 2020 100,000,000 shares; authorized 2019 66,666,667 shares; 55,910,733 shares issued	56	56
Additional paid-in capital	1,253,360	1,248,216
Retained earnings (accumulated deficit)	20,830	(14,813)
Accumulated other comprehensive income (loss)	33,309	14,960
Total stockholders' equity before treasury stock	1,307,555	1,248,419
Treasury stock at cost 2020 1,506,354 shares; 2019 1,121,961 shares	(37,486)	(27,985)
Total stockholders' equity	1,270,069	1,220,434
Total liabilities and stockholders' equity	$ 10,544,047	$ 9,695,729
Common shares outstanding at period end	54,404,379	54,788,772

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Portfolio Loans, allowance for loan losses (in dollars)	$ 101,048	$ 53,748
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	66,666,667
Common stock, shares issued	55,910,733	55,910,733
Treasury stock, shares	1,506,354	1,121,961

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Interest income:
Interest and fees on loans	$ 284,959	$ 304,193	$ 251,249
Interest and dividends on investment securities:
Taxable interest income	35,364	41,090	27,595
Non-taxable interest income	4,552	4,631	4,698
Other interest income	1,723	6,320	2,491
Total interest income	326,598	356,234	286,033
Interest expense:
Deposits	30,691	55,077	32,601
Federal funds purchased and securities sold under agreements to repurchase	660	2,348	1,626
Short-term borrowings	234	1,041	1,536
Long-term debt	525	2,608	906
Senior notes	1,598	1,599	1,598
Subordinated notes	6,995	2,924	3,110
Junior subordinated debt owed to unconsolidated trusts	2,960	3,414	3,250
Total interest expense	43,663	69,011	44,627
Net interest income	282,935	287,223	241,406
Provision for credit losses	38,797	10,406	4,429
Net interest income after provision for credit losses	244,138	276,817	236,977
Non-interest income:
Income on bank owned life insurance	5,380	5,795	3,726
Net gains (losses) on sales of securities	1,724	741	(1,831)
Unrealized gains (losses) recognized on equity securities	(393)	(759)	2,162
Other income	8,588	8,649	6,193
Total non-interest income	118,265	116,415	89,993
Non-interest expense:
Salaries, wages, and employee benefits	126,719	140,473	107,844
Data processing	16,426	21,511	16,383
Net occupancy expense of premises	17,607	18,176	14,803
Furniture and equipment expenses	9,550	9,506	7,233
Professional fees	8,396	11,104	5,389
Amortization of intangible assets	10,008	9,547	5,854
Interchange expense	4,810	4,141	3,626
Other expense	40,681	44,336	31,911
Total non-interest expense	234,197	258,794	193,043
Income before income taxes	128,206	134,438	133,927
Income taxes	27,862	31,485	34,999
Net income	$ 100,344	$ 102,953	$ 98,928
Basic earnings per common share (in dollars per share)	$ 1.84	$ 1.88	$ 2.02
Diluted earnings per common share (in dollars per share)	1.83	1.87	2.01
Dividends declared per share of common stock (in dollars per share)	$ 0.88	$ 0.84	$ 0.80
Wealth management fees
Non-interest income:
Non-interest income	$ 42,928	$ 38,561	$ 30,974
Fees for customer services
Non-interest income:
Non-interest income	31,604	36,683	28,879
Remittance processing
Non-interest income:
Non-interest income	15,396	15,042	14,345
Mortgage revenue
Non-interest income:
Mortgage revenue	$ 13,038	$ 11,703	$ 5,545

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 100,344	$ 102,953	$ 98,928
Unrealized gains (losses) on debt securities available for sale:
Net unrealized holding gains (losses) on debt securities available for sale, net of taxes of $(8,615), $(7,525), and $1,861, respectively	21,561	18,905	(4,670)
Net unrealized (gains) losses on debt securities transferred from held to maturity to available for sale, net of taxes of $-, $(1,433), and $-, respectively		3,590
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, net of taxes of $496, $210, and $(507), respectively	(1,228)	(523)	1,273
Net change in unrealized gains (losses) on debt securities available for sale	20,333	21,972	(3,397)
Unrealized gains (losses) on cash flow hedges:
Net unrealized holding gains (losses) on cash flow hedges, net of taxes of $1,007, $81, and $-, respectively	(2,526)	(202)
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, net of taxes of $(216), $(1), and $-, respectively	542	2
Net change in unrealized gains (losses) on cash flow hedges	(1,984)	(200)
Net change in accumulated other comprehensive income (loss)	18,349	21,772	(3,397)
Total comprehensive income	$ 118,693	$ 124,725	$ 95,531

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unrealized holding gains (losses) on debt securities available for sale, Tax Effect	$ (8,615)	$ (7,525)	$ 1,861
Unrealized gains (losses) on debt securities transferred from held to maturity to available for sale, Tax Effect		(1,433)
Amounts reclassified from accumulated other comprehensive income, Tax Effect	496	210	$ (507)
Tax expense on unrealized holding (losses) gains on cash flow hedges	1,007	81
Tax expense on reclassification adjustment for realized losses (gains) on cash flow hedges included in net income	$ (216)	$ (1)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit). Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings (Accumulated Deficit).	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Cumulative Effect, Period of Adoption, Adjustment	Total
Beginning balance at Dec. 31, 2017	$ 49	$ 1,084,889		$ (132,122)	$ (2,810)	$ (15,003)		$ 935,003
Beginning Balance (in shares) at Dec. 31, 2017	48,684,943
Increase (decrease) in shareholders' equity
Net income				98,928				98,928
Other comprehensive income (loss)					(3,397)			(3,397)
TCJA reclassification				605	(605)
Issuance of treasury stock for employee stock purchase plan		(275)				811		536
Issuance of treasury stock for employee stock purchase plan (in shares)	19,442
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax		(5,930)				4,924		(1,006)
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax (in shares)	104,637
Net issuance of treasury stock for stock options exercised, net of shares redeemed and related tax		(2,889)				3,078		189
Net issuance of treasury stock for stock options exercised, net of shares redeemed and related tax (in shares)	65,814
Cash dividends common stock				(39,010)				(39,010)
Stock dividend equivalents restricted stock units		568		(568)
Stock-based compensation		3,721						3,721
Ending balance at Dec. 31, 2018	$ 49	1,080,084		(72,167)	(6,812)	(6,190)		994,964
Ending Balance (in shares) at Dec. 31, 2018	48,874,836
Increase (decrease) in shareholders' equity
Net income				102,953				102,953
Other comprehensive income (loss)					21,772			21,772
Repurchase of stock						(24,292)		(24,292)
Repurchase of stock (in shares)	(943,396)
Issuance of treasury stock for employee stock purchase plan		137				487		624
Issuance of treasury stock for employee stock purchase plan (in shares)	25,698
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax		(2,600)				382		(2,218)
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax (in shares)	92,996
Net issuance of treasury stock for stock options exercised, net of shares redeemed and related tax		(104)				1,628		1,524
Net issuance of treasury stock for stock options exercised, net of shares redeemed and related tax (in shares)	13,486
Cash dividends common stock				(45,171)				(45,171)
Stock dividend equivalents restricted stock units		428		(428)
Stock-based compensation		3,997						3,997
Stock issued in acquisition of Banc Ed, net of stock issuance costs	$ 7	166,274						166,281
Stock issued in acquisition of Banc Ed, net of stock issuance costs (in shares)	6,725,152
Ending balance at Dec. 31, 2019	$ 56	1,248,216	$ (15,922)	(14,813)	14,960	(27,985)	$ (15,922)	1,220,434
Ending Balance (in shares) at Dec. 31, 2019	54,788,772
Increase (decrease) in shareholders' equity
Net income				100,344				100,344
Other comprehensive income (loss)					18,349			18,349
Repurchase of stock						(12,272)		(12,272)
Repurchase of stock (in shares)	(531,114)
Issuance of treasury stock for employee stock purchase plan		(59)				606		547
Issuance of treasury stock for employee stock purchase plan (in shares)	32,063
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax		(2,648)				2,013		(635)
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax (in shares)	106,589
Net issuance of treasury stock for stock options exercised, net of shares redeemed and related tax		(51)				152		101
Net issuance of treasury stock for stock options exercised, net of shares redeemed and related tax (in shares)	8,069
Cash dividends common stock				(48,012)				(48,012)
Stock dividend equivalents restricted stock units		767		(767)
Stock-based compensation		7,135						7,135
Ending balance at Dec. 31, 2020	$ 56	$ 1,253,360		$ 20,830	$ 33,309	$ (37,486)		$ 1,270,069
Ending Balance (in shares) at Dec. 31, 2020	54,404,379

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Cash dividends, common stock (in dollars per share)	$ 0.88	$ 0.84	$ 0.80
Stock dividends, restricted stock units (in dollars per share)	$ 0.88	$ 0.84	$ 0.80

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash Flows Provided by (Used in) Operating Activities
Net income	$ 100,344	$ 102,953	$ 98,928
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	38,797	10,406	4,429
Amortization of intangible assets	10,008	9,547	5,854
Amortization of mortgage servicing rights	5,667	2,710	1,531
Depreciation and amortization of premises and equipment	12,273	11,879	9,556
Net amortization (accretion) of premium (discount) on portfolio loans	(9,247)	(10,905)	(10,452)
Net amortization (accretion) of premium (discount) on investment securities	9,716	6,106	8,311
Net amortization (accretion) of premium (discount) on time deposits	(933)	(1,648)	(243)
Net amortization (accretion) of premium (discount) on FHLB advances and other borrowings	586	309	146
Impairment of OREO	68	62	18
Impairment of fixed assets held for sale	6,901	2,026	817
Impairment of mortgage servicing rights	648
Impairment of leases		348	146
Change in fair value of equity securities, net	393	759	(2,162)
(Gain) loss on sales of equity securities, net		(8)	51
(Gain) loss on sales of debt securities, net	(1,724)	(733)	1,780
Gain on sale of loans, net	(26,999)	(16,819)	(10,446)
Gain on sales of OREO	(133)	(102)	(384)
Loss on sales of premises and equipment	286	113	162
Gain on life insurance proceeds	(1,270)	(1,604)	(666)
Provision for deferred income taxes	(5,309)	96	7,116
Stock-based and non-cash compensation	7,135	3,997	3,721
Decrease in deferred compensation		(6,781)	(3,780)
Increase in cash surrender value of bank owned life insurance	(4,110)	(4,191)	(3,060)
Mortgage loans originated for sale	(881,398)	(667,515)	(425,322)
Proceeds from sales of mortgage loans	920,050	641,778	504,721
Net change in operating assets and liabilities:
(Increase) decrease in other assets	(5,899)	5,397	9,580
Increase (decrease) in other liabilities	(6,551)	(7,380)	2,195
Net cash provided by (used in) operating Activities	169,299	80,800	202,547
Cash Flows Provided by (Used in) Investing Activities
Purchases of debt securities held to maturity			(217,766)
Purchases of equity securities	(13,123)	(550)
Purchases of debt securities available for sale	(1,282,199)	(408,941)	(124,234)
Purchases of FHLB stock		(3,700)
Proceeds from sales of equity securities	13,152	1,474	920
Proceeds from sales of debt securities available for sale		227,371	122,584
Proceeds from paydowns and maturities of debt securities held to maturity		14,422	50,560
Proceeds from paydowns and maturities of debt securities available for sale	665,744	541,753	163,582
Proceeds from the redemption of FHLB stock		5,369	4,864
Net cash paid for acquisitions		(61,481)
Net increase in loans	(119,869)	(244,333)	(49,864)
Cash paid for premiums on bank-owned life insurance	(120)	(6)
Purchases of premises and equipment	(4,198)	(13,238)	(11,618)
Proceeds from life insurance	2,696	3,915
Proceeds from disposition of premises and equipment	814	424	324
Capitalized expenditures on OREO		(2)
Proceeds from sales of OREO	1,439	2,481	5,298
Net cash (used in) provided by investing activities	(735,664)	64,958	(55,350)
Cash Flows Provided by (Used in) Financing Activities
Net increase in deposits	776,386	215,519	123,600
Net change in federal funds purchased and securities sold under agreements to repurchase	(29,877)	(30,904)	(118,770)
Proceeds from other borrowings	142,634	60,000
Repayment of other borrowings	(74,000)	(6,000)	(5,500)
Proceeds from FHLB advances	4,000
Repayment of FHLB advances	(32,711)	(24,667)	(220,000)
Cash dividends paid	(48,012)	(45,171)	(39,010)
Purchase of treasury stock	(12,272)	(24,292)
Cash paid for withholding taxes on stock-based payments	(635)	(863)	(1,208)
Proceeds from stock options exercised	101	169	392
Common stock issuance costs		(234)
Net cash provided by (used in) financing activities	725,614	143,557	(260,496)
Net increase (decrease) in cash and cash equivalents	159,249	289,315	(113,299)
Cash and cash equivalents, beginning of period	529,288	239,973	353,272
Cash and cash equivalents, ending of period	688,537	529,288	239,973
Cash Payments for:
Interest	53,601	70,577	40,639
Income taxes	22,195	24,725	23,183
Non-cash Investing and Financing Activities:
OREO acquired in settlement of loans	$ 2,867	4,872	4,025
Other assets transferred to equity investments			$ 4,000
Transfer of debt securities held to maturity to available for sale		$ 593,548

Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Significant Accounting Policies

Significant Accounting Policies

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 and 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 First Busey Risk Management, Deed of Trust Services Corporation, and Busey Bank, including Busey Bank’s wholly-owned subsidiaries FirsTech, Pulaski Service Corporation, 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 Consolidated Financial Statements. All intercompany balances and transactions have been eliminated in consolidation.

Because the Company is not the primary beneficiary, 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.

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 Consolidated Financial Statements and the disclosures provided. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near-term relate to the fair value of debt securities available for sale, fair value of assets acquired and liabilities assumed in business combinations, goodwill, income taxes, and the determination of the allowance for credit 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 and unrealized gains and losses on cash flow hedges, are reported as a separate component within 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 Busey Bank, are not assets of the Company and, accordingly, are not included in the accompanying Consolidated Financial Statements. The Company had assets under care of $10.2 billion and $9.7 billion at December 31, 2020 and 2019, 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

Debt 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.

Debt 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. Debt 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. The amortization period for certain callable debt securities held at a premium are amortized to the earliest call date, while discounts on debt securities are amortized to maturity. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Debt securities available for sale are not within the scope of CECL, however, the accounting for credit losses on these securities is affected by ASC 326-30. A debt security available for sale is impaired if the fair value of the security declines below its amortized cost basis. To determine the appropriate accounting, the Company must first determine if it intends to sell the security or if it is more likely than not that it will be required to sell the security before the fair value increases to at least the amortized cost basis. If either of those selling events is expected, the Company will write down the amortized cost basis of the security to its fair value. This is achieved by writing off any previously recorded allowance, if applicable, and recognizing any incremental impairment through earnings. If the Company neither intends to sell the security, nor believes it more likely than not will be required to sell the security, before the fair value recovers to the amortized cost basis, the Company must determine whether any of the decline in fair value has resulted from a credit loss, or if it is entirely the result of noncredit factors.

The Company considers the following factors in assessing whether the decline is due to a credit loss:

●

Extent to which the fair value is less than the amortized cost basis.

●

Adverse conditions specifically related to the security, an industry, or a geographic area (for example, changes in the financial condition of the issuer of the security, or in the case of an asset-backed debt security, in the financial condition of the underlying loan obligors).

●

Payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future.

●

Failure of the issuer of the security to make scheduled interest or principal payments.

●

Any changes to the rating of the security by a rating agency.

Impairment related to a credit loss must be measured using the discounted cash flow method. Credit loss recognition is limited to the fair value of the security. Impairment is recognized by establishing an allowance for credit losses through provision for credit losses. Impairment related to noncredit factors is recognized in accumulated other comprehensive income (loss), net of applicable taxes. The Company did not recognize any impairment in 2020, 2019, or 2018.

Accrued interest receivable for debt securities available for sale totaled $6.8 million at December 31, 2020, and is excluded from the estimate of credit losses. Accrued interest receivable is reported in Other Assets on the Consolidated Balance Sheets.

Equity securities are carried at fair value with changes in fair value recognized in earnings.

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.

Loan servicing

Servicing assets are recognized when servicing rights are acquired or retained through the sale of mortgage and government-guaranteed commercial loans. The unpaid principal balances of loans serviced by the Company for the benefit of others totaled $2.2 billion and are not included in the accompanying Consolidated Balance Sheets. 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 expected prepayment rates and other inputs. For purposes of measuring impairment, the servicing rights are stratified by one or more predominant characteristics of the underlying loans. The amount of valuation 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 reversal of the allowance may be recorded in current period earnings. The Company had $0.6 million impairment recorded at December 31, 2020, and no impairment recorded at December 31, 2019.

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

Loans 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 credit 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.

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 but not collected for loans that are placed on non-accrual status or charged-off is reversed against interest income. The interest on non-accrual loans is accounted for on the 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.

At December 31, 2020, the Company had $451.5 million in PPP loans outstanding, with an amortized cost of $446.4 million. The Company received fees totaling approximately $25.4 million and incurred incremental direct origination costs of $5.1 million, both of which have been deferred and are being amortized over the contractual life of these loans, subject to prepayment. The Company recognized $15.2 million in net interest income for fees, net of deferred cost, during the year ended December 31, 2020. PPP loans contain a forgiveness feature for funds spent on covered expenses, including both principal and accrued interest. Any remaining balance after loan forgiveness maintains a 100% government guarantee for the remaining term of the loan. The Company has implemented an online portal designed to streamline the PPP loan forgiveness process by providing a tool that borrowers can use to apply for forgiveness. As these loans are forgiven, the recognition of these fees and direct origination costs will be accelerated. As of December 31, 2020, the Company had received approximately $287.8 million in borrower loan forgiveness from the SBA and had submitted forgiveness applications to the SBA on behalf of borrowers for another $167.4 million.

Troubled debt restructurings

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

The Company considers the customer’s past performance, previous and current credit history, the individual circumstances surrounding the customer’s current difficulties, and the customer’s plan to meet the terms of the loan in the future prior to restructuring the terms of the loan. Generally, 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 individually evaluated for purposes of assessing the adequacy of the allowance for credit losses and for financial reporting purposes. TDRs are evaluated using present value of the expected future cash flows discounted at the loan’s original 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 credit losses in the period of the modification and in periods subsequent to the modification.

Modified loans with payment deferrals that fall under the CARES Act or revised Interagency Statement that suspended requirements under GAAP related to TDR classifications are not included in the Company’s TDR totals.

Assets purchased with credit deterioration

First Busey adopted ASC 326 using the prospective transition approach for financial assets PCD that were previously classified as PCI and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. In accordance with ASC 326, the amortized cost basis of PCD assets were adjusted to reflect an allowance for credit losses for any remaining credit discount. Subsequent changes in expected cash flows will be adjusted through the allowance for credit losses. The noncredit discount will be accreted into interest income at the effective interest rate as of January 1, 2020.

Allowance for credit losses

The allowance for credit losses is a significant estimate in the Company’s Consolidated Financial Statements, affecting both earnings and capital. The allowance for credit losses is a valuation account that is deducted from the portfolio loans’ amortized cost bases to present the net amount expected to be collected on the portfolio loans. Portfolio loans are charged off against the allowance for credit losses when management believes the uncollectibility of a loan balance is confirmed. Recoveries will be recognized up to the aggregate amount of previously charged-off balances. The allowance for credit losses is established through provision for credit loss expense charged to income.

A loan’s amortized cost basis is comprised of the unpaid principal balance of the loan, accrued interest receivable, purchase premiums or discounts, and net deferred origination fees or costs. The Company has estimated its allowance on the amortized cost basis, exclusive of government guaranteed loans and accrued interest receivable. The Company writes-off uncollectible accrued interest receivable in a timely manner and has elected to not measure an allowance for accrued interest receivable. The Company presents the aggregate amount of accrued interest receivable for all financial instruments in other assets on the Consolidated Balance Sheets and the balance of accrued interest receivable is disclosed in “Note 18. Fair Value Measurements.”

Our methodology influences, and is influenced by, the Company’s overall credit risk management processes. The allowance for credit losses is managed in accordance with GAAP to provide an adequate reserve for expected credit losses that is reflective of management’s best estimate of what is expected to be collected. The allowance for credit losses is measured on a collective pool basis when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis.

The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the amortized cost basis. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions such as changes in unemployment rates, property values and other relevant factors. The calculation also contemplates that the Company may not be able to make or obtain such forecasts for the entire life of the financial assets and requires a reversion to historical credit loss information. At implementation, the Company selected an eight-quarter forecast period with an immediate reversion to historical loss rates as management felt this period could be reasonably forecasted and was consistent with forecast periods used in other areas of finance. During the first quarter of 2020, the Company reduced its reasonable and supportable forecast period from eight quarters to four quarters. Due to rapidly changing forecasts around the impact of COVID-19, the Company does not believe it has the current ability to incorporate reasonable and supportable forecasts into its CECL models extending beyond four quarters.

Ongoing impacts of the CECL methodology will be dependent upon changes in economic conditions and forecasts, originated and acquired loan portfolio composition, credit performance trends, portfolio duration, and other factors.

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, right of use assets, 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. 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 fair value of the property 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 credit 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 earnings.

Goodwill and other intangibles

Goodwill represents the excess of the consideration transferred in a business combination over the fair value of the net 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, each 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 comparable company analysis and precedent transaction analysis. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. There was no impairment as of December 31, 2020 or 2019. See “Note 7. Goodwill and Other Intangible Assets” for further discussion.

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

Cash surrender value of bank owned life insurance

The Company has purchased or acquired through acquisitions 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 of $5.6 million at December 31, 2020, included in other liabilities, for these arrangements, compared with $5.7 million at December 31, 2019.

Other asset investments

The Company has certain tax-advantaged projects promoting affordable housing, and others which are designed to generate returns primarily though federal and state tax credits. In addition, the Company has private equities, which are primarily small business investment companies. These investments are considered to be variable interest entities, and are accounted for under the equity method or deferral method, as appropriate. As of December 31, 2020, the carrying value of these investments was $37.1 million, recorded in other assets. The Company is not required to consolidate variable interest entities in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary.

Further, the Company owns Visa Class B shares, recorded at a nominal carrying value. These shares are subject to certain transfer restrictions currently and will be convertible into Visa Class A shares upon final resolution of certain litigation matters involving Visa.

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: (i) the assets have been isolated from the Company, (ii) 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 (iii) 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 2016.

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 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, 2020 or 2019.

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, 2020 or 2019.

At December 31, 2020, the Company was not under examination by any tax authority; however, Banc Ed, which the Company acquired on January 31, 2019, is under examination by the Illinois Department of Revenue for the 2009 to 2016 income tax filings.

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

The 2020 Equity Plan was approved by stockholders at the 2020 Annual Meeting of Stockholders. A description of the 2020 Equity Plan can be found in the Company’s Proxy Statement for the 2020 Annual Meeting of Stockholders filed on April 9, 2020. The 2020 Equity Plan replaces the 2010 Equity Incentive Plan and the First Community Financial Partners, Inc. 2016 Equity Incentive Plan, which, from time to time, the Company used to grant equity awards to legacy employees of First Community Financial Partners, Inc. Under the terms of the 2020 Equity Plan, the Company has granted restricted stock units, deferred stock units and performance-based restricted stock unit awards.

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.

The Company grants restricted stock units to members of management periodically throughout the year. Each restricted stock unit is equivalent to one share of the Company’s common stock. These units have requisite service periods ranging from one to five years, subject to accelerated vesting upon eligible retirement from the Company. Recipients earn quarterly dividend equivalents on their respective units which entitle the recipients to additional units. Therefore, dividends earned each quarter compound based upon the updated unit balances.

The Company grants deferred stock units, which are restricted stock units with a deferred settlement date, to its directors and advisory directors. Each deferred stock unit is equivalent to one share of the Company’s common stock. The deferred stock units vest over a one-year period following the grant date. These units generally are subject to the same terms as restricted stock units under the Company’s 2020 Equity Plan, except that, following vesting, settlement occurs within 30 days following the earlier of separation from the board or a change in control of the Company. After vesting and prior to delivery, these units will continue to earn dividend equivalents.

The Company also grants performance-based restricted stock unit awards to members of management periodically throughout the year. Each performance-based restricted stock unit is equivalent to one share of the Company’s common stock. The number of units that ultimately vest will be determined based on the achievement of the market performance goal, subject to accelerated service-based vesting conditions upon eligible retirement from the Company.

See “Note 14. Stock-based Compensation” for further discussion.

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. See “Note 21. Operating Segments and Related Information” for further discussion.

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 estimated 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 generated from acquired businesses are included with the Company’s results of operations starting from 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 Consolidated Financial Statements in accordance with other applicable accounting guidance.

Derivative Financial Instruments

The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Additionally, the Company enters into derivative financial instruments, including interest rate lock commitments issued to residential loan customers for loans that will be held for sale, forward sales commitments to sell residential mortgage loans to investors, and interest rate swaps with customers and other third parties.

Interest Rate Swaps Designated as Cash Flow Hedges. Starting in the third quarter of 2019, the Company entered into derivative instruments designated as cash flow hedges. For derivative instruments that are designated and qualify as a cash flow hedge, the change in fair value of the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Change in fair value of components excluded from the assessment of effectiveness are recognized in current earnings. Cash flows on hedges are classified in the Consolidated Statements of Cash Flows the same as the cash flows of the items being hedged.

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.

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. If the commitment is funded, the Company would be entitled to seek recovery from the customer.

In estimating expected credit losses for off-balance-sheet credit exposures, the Company estimates expected credit losses over the contractual period in which it is exposed to credit risk via a present contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the issuer. To be considered unconditionally cancelable for accounting purposes, the Company must have the ability to, at any time, with or without cause, refuse to extend credit under the commitment. Off-balance-sheet credit exposure segments share the same risk characteristics as portfolio loans. The Company incorporates a probability of funding and utilizes the allowance for credit losses loss rates to calculate the reserve. The reserve for off-balance-sheet credit exposure is carried on the Consolidated Balance Sheets in other liabilities rather than as a component of the allowance. The reserve for off-balance-sheet credit exposure is adjusted as a provision for off-balance-sheet credit exposure reported as a component of non-interest expense in the accompanying Consolidated Statement of Income. As of December 31, 2020, $7.3 million was recorded as liabilities for the Company’s reserve for off-balance-sheet credit exposures under these commitments. There was no liability recorded as of December 31, 2019.

Fair value of financial instruments

Fair value of financial instruments is estimated using relevant market information and other assumptions, as more fully disclosed in “Note 18. Fair Value Measurements.” Fair value estimates involve uncertainties and matters of significant

judgment 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.

Revenue

ASC 606 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. ASC 606 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 ASC 606, 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 ASC 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 ASC 606, and are presented in the accompanying Consolidated Statements of Income as components of non-interest income, include wealth management fees, remittance processing, and fees for customer services. Wealth management fees 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 represent 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.

Leases

Effective January 1, 2019, a determination is made at inception if an arrangement contains a lease. For arrangements containing leases, the Company recognizes leases on the Consolidated Balance Sheets as right of use assets and corresponding lease liabilities. Lease-related assets, or right of use assets, are recognized on the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs, and lease incentives received. Lease-related liabilities are recognized at the present value of the remaining contractual fixed lease payments, discounted using our incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred.

ASC 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. If not readily determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the Company used a borrowing rate that corresponded to the remaining lease term.

The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of its right of use assets and lease liabilities.

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, 2020.

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 19, 2021, the Company and CAC, the holding company for GSB, announced the signing of a definitive agreement pursuant to which the Company will acquire CAC and GSB through a merger transaction. See “Note 2. Acquisitions” for further information relating to this acquisition. Other than this item, there were no significant subsequent events for the year ended December 31, 2020, through the filing date of these Consolidated Financial Statements.

Impact of recently adopted accounting standards

On January 1, 2020, First Busey adopted ASU 2016-13 Financial Instruments – Credit Losses (“Topic 326”): Measurement of Credit Losses on Financial Instruments, as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance-sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with ASC 842 on leases. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will not be required to sell before recovery of its amortized cost basis.

First Busey adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP which includes a change in terminology from “Allowance/Provision for Loan Losses” to “Allowance/Provision for Credit Losses.” First Busey recorded an after-tax decrease to retained earnings of $15.9 million as of January 1, 2020, for the cumulative effect of adopting ASC 326. This transition adjustment included $12.0 million in allowance for credit losses on loans and $3.9 million in reserve for off-balance-sheet credit exposures.

The following table illustrates the impact of ASC 326 (dollars in thousands):


	January 1, 2020
					Pre-tax
	Post ASC 326		Pre-ASC 326		Impact of ASC 326
	Adoption		Adoption		Adoption
Assets:
Allowance
Commercial	$	19,006	$	18,291	$	715
Commercial real estate		30,496		21,190		9,306
Real estate construction		6,158		3,204		2,954
Retail real estate		13,787		10,495		3,292
Retail other		1,134		568		566
Total allowance for credit losses	$	70,581	$	53,748	$	16,833

Liabilities:
Reserve for off-balance-sheet credit exposures	$	5,492	$	—	$	5,492

ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” In March 2020, the FASB issued “Reference Rate Reform (Topic 848)” which provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. The adoption of ASU 2020-04 did not significantly impact our financial statements.

Recently issued accounting standards

ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815).” ASU 2020-01 clarifies the interaction between ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and the ASU on equity method investments. ASU 2016-01 provides companies with an alternative to measure certain equity securities without a readily determinable fair value at cost, minus impairment, if any, unless an observable transaction for an identical or similar security occurs. ASU 2020-01 clarifies that for purposes of applying the Topic 321 measurement alternative, an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting under Topic 323, immediately before applying or upon discontinuing the equity method. In addition, the new ASU provides direction that a company should not consider whether the underlying securities would be accounted for under the equity method or the fair value option when it is determining the accounting for certain forward contracts and purchased options, upon either settlement or exercise. The amendments in this update become effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, and the amendments are to be applied prospectively. The Company is currently evaluating the impact of adopting the new guidance on the Consolidated Financial Statements.

Acquisitions

12 Months Ended

Dec. 31, 2020

Acquisitions

Acquisitions

Note 2. Acquisitions

The Banc Ed Corp.

On January 31, 2019, the Company completed its acquisition of Banc Ed. TheBANK, Banc Ed’s wholly-owned bank subsidiary, was operated as a separate subsidiary from the completion of the acquisition until October 4, 2019, when it was merged with and into Busey Bank. At that time, TheBANK’s banking centers became banking centers of Busey Bank.

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 was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged was recorded at estimated fair values on the date of acquisition. Recorded fair value adjustments were disclosed as of March 31, 2019, and adjustments totaling $5.2 million were made to the fair value assigned to various assets and liabilities during 2019, as more information became available. The measurement period adjustments included a clarification in the interpretation of tax regulations that resulted in the $4.6 million reversal of a deferred tax liability that was initially recorded in connection with the acquisition. As the total consideration paid for Banc Ed exceeded the net assets acquired, goodwill of $41.4 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 St. Louis MSA, is not tax deductible and was assigned to the Banking operating segment.

First Busey incurred $0.5 million in pre-tax expenses related to the acquisition of Banc Ed for the year ended December 31, 2020, primarily related to fixed asset and lease impairment. First Busey incurred $13.7 million in pre-tax expenses related to the acquisition of Banc Ed for the year ended December 31, 2019, primarily for salaries, wages and employee benefits, professional and legal fees and deconversion expenses, all of which are reported as a component of non-interest expense in the accompanying Consolidated Financial Statements. Of this amount, $2.3 million was considered transaction costs, primarily related to legal and professional fees associated with the acquisition. First Busey incurred $0.4 million in pre-tax expenses related to the acquisition of Banc Ed for the year 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 fair value of Banc Ed assets acquired and liabilities assumed as of January 31, 2019 (dollars in thousands):



	Fair Value
Assets acquired:
Cash and cash equivalents	$	42,013
Securities		692,716
Loans held for sale		2,157
Portfolio loans		873,336
Premises and equipment		32,156
Other intangible assets		32,617
Mortgage servicing rights		6,946
Other assets		57,332
Total assets acquired		1,739,273

Liabilities assumed:
Deposits		1,439,203
Other borrowings		63,439
Other liabilities		20,153
Total liabilities assumed		1,522,795

Net assets acquired	$	216,478

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

Goodwill	$	41,437

The following table provides the unaudited pro forma information for the results of operations for the years ended December 31, 2019 and 2018, as if the acquisition had occurred January 1, 2018. The pro forma results combine the historical results of Banc Ed into the Company’s Consolidated Statements of Income, including the impact of purchase accounting adjustments such as loan discount accretion, intangible assets amortization, deposit accretion and premises 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, 2018. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions (dollars in thousands, except per share amounts):


		Pro Forma
	Years Ended December 31,
	2019		2018
Total revenues (net interest income plus non-interest income)	$	409,324	$	411,633
Net income		113,640		118,361
Diluted earnings per common share		2.03		2.15

Investors’ Security Trust Company

On August 31, 2019, the Company completed its acquisition by Busey Bank of IST, a Fort Myers, Florida wealth management firm. This partnership added to the Company’s wealth management offerings, but did not have a material impact on the Company’s earnings or overall business. This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged was recorded at estimated fair values on the date of acquisition.

First Busey incurred $0.4 million in pre-tax expenses related to the acquisition of IST for the year ended December 31, 2020, primarily for contingent earn-out payments owed under the purchase agreement, which are reported as components of non-interest expense in the accompanying Consolidated Statements of Income. First Busey incurred $0.9 million in pre-tax expenses related to the acquisition of IST for the year ended December 31, 2019, primarily for professional and legal fees, which are reported as a component of non-interest expense in the accompanying Consolidated Financial Statements.

Cummins-American Corp.

On January 19, 2021, the Company and CAC, the holding company for GSB, jointly announced the signing of a definitive agreement pursuant to which the Company will acquire CAC and GSB through a merger transaction. The partnership will enhance the Company’s existing deposit, commercial banking, and wealth management presence in the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area. It is anticipated GSB will be merged with and into Busey Bank at a date following the completion of the merger. At the time of the bank merger, GSB banking centers will become banking centers of Busey Bank.

Under the terms of the merger agreement, CAC’s stockholders will have the right to receive 444.4783 shares of First Busey’s common stock and $27,969.67 in cash for each share of common stock of CAC with total consideration to consist of approximately 73% cash and 27% stock. Based upon the closing price of Busey’s common stock of $23.54 on January 15, 2021, the implied per share purchase price is $38,432.69 with an aggregate transaction value of approximately $190.8 million. The merger agreement provides that the cash consideration to be paid in the merger will be funded with a combination of cash from First Busey and a special dividend to be paid by CAC to its shareholders. Specifically, immediately prior to closing and subject to the completion of all closing conditions, CAC will cause GSB to pay a one-time special cash dividend of $60.0 million to CAC and, upon receipt, CAC will declare and issue a $60.0 million special cash dividend to CAC’s shareholders, which will be used to fund, in part, the cash consideration to be paid to CAC’s shareholders at closing. The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions and required approvals, including the approval of CAC’s stockholders.

During 2020, First Busey incurred $0.5 million in pre-tax acquisition expenses related to the planned acquisition of CAC, comprised primarily of legal expenses.

Debt securities

12 Months Ended

Dec. 31, 2020

Debt securities

Debt securities

Note 3. Debt Securities

The table below provides information on debt securities (dollars in thousands):


			Gross		Gross			Allowance
	Amortized		Unrealized		Unrealized			for Credit	Fair
December 31, 2020:	Cost		Gains		Losses			Losses	Value
U.S. Treasury securities	$	27,481	$	356	$	—	$	—	$	27,837
Obligations of U.S. government corporations and agencies		67,406		2,162		(49)		—		69,519
Obligations of states and political subdivisions		292,940		11,779		(8)		—		304,711
Commercial mortgage-backed securities		408,716		10,212		(312)		—		418,616
Residential mortgage-backed securities		1,344,047		24,571		(303)		—		1,368,315
Corporate debt securities		70,953		1,237		(1)		—		72,189
Debt securities available for sale	$	2,211,543	$	50,317	$	(673)	$	—	$	2,261,187


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2019:	Cost		Gains		Losses		Value
U.S. Treasury securities	$	51,472	$	265	$	—	$	51,737
Obligations of U.S. government corporations and agencies		160,364		2,684		(48)		163,000
Obligations of states and political subdivisions		262,492		5,810		(11)		268,291
Commercial mortgage-backed securities		137,733		1,700		(146)		139,287
Residential mortgage-backed securities		912,308		10,282		(624)		921,966
Corporate debt securities		102,696		1,280		—		103,976
Debt securities available for sale	$	1,627,065	$	22,021	$	(829)	$	1,648,257

The amortized cost and fair value of debt securities, 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 corporations and agencies (dollars in thousands).


	As of December 31, 2020
	Amortized		Fair
	Cost		Value
Due in one year or less	$	121,208	$	122,213
Due after one year through five years		239,021		247,833
Due after five years through ten years		256,485		267,859
Due after ten years		1,594,829		1,623,282
Debt securities available for sale	$	2,211,543	$	2,261,187

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


	Years Ended December 31,
	2020		2019		2018
Gross security gains	$	1,732	$	1,318	$	—
Gross security (losses)		(8)		(585)		(1,780)
Net gains (losses) on sales of securities⁽¹⁾	$	1,724	$	733	$	(1,780)

(1)	Net gains (losses) on sales of securities reported on the Consolidated Statements of Income includes sale of equity securities, excluded in this table.

Debt securities with carrying amounts of $628.0 million and $704.7 million on December 31, 2020 and 2019, respectively, were pledged as collateral for public deposits, securities sold under agreements to repurchase, and for other purposes as required or permitted by law.

The following information pertains to debt securities with gross unrealized losses, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (dollars in thousands):


	Less than 12 months, gross				12 months or more, gross				Total, gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2020:	Value		Losses		Value		Losses		Value		Losses
Debt securities available for sale
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—	$	—
Obligations of U.S. government corporations and agencies		—		—		4,957		(49)		4,957		(49)
Obligations of states and political subdivisions		762		(8)		—		—		762		(8)
Commercial mortgage-backed securities		129,655		(312)		—		—		129,655		(312)
Residential mortgage-backed securities		89,997		(300)		139		(3)		90,136		(303)
Corporate debt securities		1,499		(1)		—		—		1,499		(1)
Total temporarily impaired securities	$	221,913	$	(621)	$	5,096	$	(52)	$	227,009	$	(673)


	Less than 12 months, gross				12 months or more, gross				Total, gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2019:	Value		Losses		Value		Losses		Value		Losses
Debt securities available for sale
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—	$	—
Obligations of U.S. government corporations and agencies		6,362		(48)		—		—		6,362		(48)
Obligations of states and political subdivisions⁽¹⁾		4,981		(11)		1,548		—		6,529		(11)
Commercial mortgage-backed securities		33,322		(144)		2,044		(2)		35,366		(146)
Residential mortgage-backed securities		78,326		(245)		50,259		(379)		128,585		(624)
Corporate debt securities		—		—		—		—		—		—
Total temporarily impaired securities	$	122,991	$	(448)	$	53,851	$	(381)	$	176,842	$	(829)

(1)	Unrealized losses for greater than 12 months, gross, was less than one thousand dollars.

Debt securities available for sale are not within the scope of CECL, however, the accounting for credit losses on these securities is affected by ASC 326-30. As of December 31, 2020, the Company’s debt security portfolio consisted of 1,114 securities, compared to 1,178 securities at December 31, 2019. The total number of debt securities in the investment portfolio in an unrealized loss position as of December 31, 2020, was 23 and represented an unrealized loss of 0.30% of the aggregate fair value. The total number of debt securities in the investment portfolio in an unrealized loss position as of December 31, 2019, was 55 and represented an unrealized loss of 0.47% of the aggregate fair value. 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 debt securities. Full collection of the amounts due according to the contractual terms of the debt securities is expected; therefore, the impairment related to noncredit factors is recognized in accumulated other comprehensive income (loss), net of applicable taxes, at December 31, 2020. As of December 31, 2020, the Company did not hold general obligation bonds of any single issuer, the aggregate of which exceeded 10% of the Company’s stockholders’ equity.

Portfolio loans and allowance for credit losses

12 Months Ended

Dec. 31, 2020

Portfolio loans

Portfolio loans and allowance for credit losses

Note 4. Portfolio Loans and Allowance for Credit Losses

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


	As of December 31,
	2020		2019
Commercial	$	2,014,576	$	1,748,368
Commercial real estate		2,892,535		2,793,417
Real estate construction		461,786		401,861
Retail real estate		1,407,852		1,693,769
Retail other		37,428		49,834
Portfolio loans	$	6,814,177	$	6,687,249

Allowance		(101,048)		(53,748)
Portfolio loans, net	$	6,713,129	$	6,633,501

Net deferred loan origination costs included in the balances above were $2.4 million and $6.2 million as of December 31, 2020 and 2019, respectively. Net accretable purchase accounting adjustments included in the balances above reduced loans by $10.9 million and $20.2 million as of December 31, 2020 and 2019, respectively. The December 31, 2020, commercial balance includes loans originated under the PPP with an amortized cost of $446.4 million.

The Company utilizes a loan grading scale to assign a risk grade to all of its loans. A description of the general characteristics of each grade is as follows:

●

Pass- This category includes loans that are all considered acceptable credits, ranging from investment or near investment grade, to loans made to borrowers who exhibit credit fundamentals that meet or exceed industry standards.

●

Watch- This category includes loans that warrant a higher than average level of monitoring to ensure that weaknesses do not cause the inability of the credit to perform as expected. These loans are not necessarily a problem due to other inherent strengths of the credit, such as guarantor strength, but have above average concern and monitoring.

●

Special mention- This category is for “Other Assets Specially Mentioned” loans that have potential weaknesses, which may, if not checked or corrected, weaken the asset, or inadequately protect the Company’s credit position at some future date.

●

Substandard- This category includes “Substandard” loans, determined in accordance with regulatory guidelines, for which the accrual of interest has not been stopped. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

●

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

All loans are graded at their inception. Most commercial lending relationships that are $1.0 million or less are processed through an expedited underwriting process. Most commercial loans greater than $1.0 million are included in a portfolio review at least annually. Commercial loans greater than $0.35 million that have a grading of special mention or worse are reviewed on a quarterly basis. Interim reviews may take place if circumstances of the borrower warrant a more frequent review.

The following table is a summary of risk grades segregated by category of portfolio loans. December 31, 2020, includes purchase discounts and clearings in the pass rating. December 31, 2019, excludes purchase discounts and clearings (dollars in thousands):


	December 31, 2020
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual
Commercial	$	1,768,755	$	136,948	$	72,447	$	27,903	$	8,523
Commercial real estate		2,393,372		383,277		75,486		34,897		5,503
Real estate construction		434,681		24,481		77		2,546		1
Retail real estate		1,382,616		10,264		2,471		3,702		8,799
Retail other		37,324		—		—		—		104
Portfolio loans	$	6,016,748	$	554,970	$	150,481	$	69,048	$	22,930


	December 31, 2019
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual
Commercial	$	1,458,416	$	172,526	$	66,337	$	41,273	$	9,096
Commercial real estate		2,477,398		186,963		105,487		26,204		9,178
Real estate construction		351,923		45,262		3,928		737		630
Retail real estate		1,661,691		9,125		5,355		7,001		8,935
Retail other		47,698		—		—		—		57
Portfolio loans	$	5,997,126	$	413,876	$	181,107	$	75,215	$	27,896

Risk grades of portfolio loans, further sorted by origination year at December 31, 2020 is as follows (dollars in thousand):


	Term Loans Amortized Cost Basis by Origination Year
														Revolving
As of December 31, 2020	2020		2019		2018		2017		2016			Prior		loans		Total
Commercial:
Risk rating
Pass	$	812,536	$	158,307	$	107,565	$	93,190	$	61,847	$	79,970	$	455,340	$	1,768,755
Watch		16,544		22,247		14,954		13,724		2,577		10,943		55,959		136,948
Special Mention		6,402		2,671		2,069		7,164		6,763		13,733		33,645		72,447
Substandard		7,772		3,791		2,371		1,939		819		1,233		9,978		27,903
Substandard non-accrual		150		3,045		451		2,168		641		68		2,000		8,523
Total commercial	$	843,404	$	190,061	$	127,410	$	118,185	$	72,647	$	105,947	$	556,922	$	2,014,576
Commercial real estate:
Risk rating
Pass	$	717,559	$	503,977	$	360,573	$	384,843	$	180,555	$	227,068	$	18,797	$	2,393,372
Watch		88,297		110,526		90,412		33,734		32,887		27,023		398		383,277
Special Mention		16,490		8,858		10,490		10,505		7,102		21,808		233		75,486
Substandard		17,445		4,166		1,491		7,812		2,111		1,377		495		34,897
Substandard non-accrual		1,091		776		821		882		286		1,647		—		5,503
Total commercial real estate	$	840,882	$	628,303	$	463,787	$	437,776	$	222,941	$	278,923	$	19,923	$	2,892,535
Real estate construction:
Risk rating
Pass	$	179,232	$	171,663	$	64,025	$	1,468	$	761	$	1,444	$	16,088	$	434,681
Watch		18,485		3,657		337		1,838		164						24,481
Special Mention		67		10		—		—		—		—		—		77
Substandard		2,400		—		—		—		146		—		—		2,546
Substandard non-accrual		—		—		—		—		—		1		—		1
Total real estate construction	$	200,184	$	175,330	$	64,362	$	3,306	$	1,071	$	1,445	$	16,088	$	461,786
Retail real estate:
Risk rating
Pass	$	319,302	$	162,711	$	135,065	$	136,427	$	140,600	$	257,147	$	231,364	$	1,382,616
Watch		2,715		2,053		1,396		349		579		233		2,939		10,264
Special Mention		509		—		—		—		1,962		—		—		2,471
Substandard		899		96		56		26		727		1,631		267		3,702
Substandard non-accrual		687		78		646		1,147		233		4,815		1,193		8,799
Total retail real estate	$	324,112	$	164,938	$	137,163	$	137,949	$	144,101	$	263,826	$	235,763	$	1,407,852
Retail other:
Risk rating
Pass	$	8,357	$	9,430	$	5,600	$	2,516	$	691	$	440	$	10,290	$	37,324
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Substandard non-accrual		14		7		5		15		5		57		1		104
Total retail other	$	8,371	$	9,437	$	5,605	$	2,531	$	696	$	497	$	10,291	$	37,428

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


	December 31, 2020
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Commercial	$	243	$	—	$	—	$	8,523
Commercial real estate		—		—		—		5,503
Real estate construction		237		235		—		1
Retail real estate		6,248		400		1,305		8,799
Retail other		66		149		66		104
Past due and non-accrual loans	$	6,794	$	784	$	1,371	$	22,930


	December 31, 2019
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Commercial	$	1,075	$	1,014	$	199	$	9,096
Commercial real estate		2,653		3,121		584		9,178
Real estate construction		19		—		—		630
Retail real estate		5,021		1,248		828		8,935
Retail other		52		68		—		57
Past due and non-accrual loans	$	8,820	$	5,451	$	1,611	$	27,896

Gross interest income that would have been recorded in the years ended December 31, 2020, 2019, and 2018, if non-accrual loans and 90+ days past due loans had been current in accordance with their original terms, was approximately $1.8 million, $2.3 million, and $1.7 million, respectively. The amount of interest collected on those loans and recognized on a cash basis that was included in interest income was insignificant in 2020, 2019, and 2018.

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


	December 31,
	2020		2019
In compliance with modified terms	$	3,814	$	5,005
30 – 89 days past due		15		—
Included in non-performing loans		1,249		702
TDR loans	$	5,078	$	5,707

Loans still outstanding that were newly classified as a TDR in compliance with modified terms during the year ended December 31, 2020, consisted of three retail real estate loans for payment modifications, with a recorded investment of $0.8 million. Loans newly classified as a TDR in compliance with modified terms during the year ended December 31, 2019, and outstanding at December 31, 2019, consisted of one commercial loan for short-term interest rate relief, with a recorded investment of $0.3 million.

Gross interest income that would have been recorded in the years ended December 31, 2020 and 2019, if TDRs had performed in accordance with their original terms instead of modified terms, was insignificant.

There were no TDRs that were entered into during the year ended December 31, 2020, 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). One commercial real estate TDR that was entered into during the year ended December 31, 2019, was subsequently classified as non-performing and had payment defaults; it was then transferred to OREO by December 31, 2019.

Modified loans with payment deferrals that fall under the CARES Act or revised Interagency Statement that suspended requirements under GAAP related to TDR classification are not included in the Company’s TDR totals. As of December 31, 2020, the Company had 98 commercial loans on payment deferrals representing $208.6 million in loans, 351 mortgage/personal loans on payment deferrals representing $47.7 million in loans and an additional loan for $0.1 million related to a purchased home equity lines of credit pool.

The following tables provide details of loans evaluated individually, segregated by category. With the adoption of CECL, the Company only evaluated loans with disparate risk characteristics on an individual basis. The unpaid contractual principal balance represents the customer outstanding balance excluding any partial charge-offs. Amortized cost represents customer balances net of any partial charge-offs recognized on the loan. Average amortized cost is calculated using the most recent four quarters (dollars in thousands):


	December 31, 2020
	Unpaid		Amortized
	Contractual		Cost		Amortized		Total				Average
	Principal		with No		Cost		Amortized		Related		Amortized
	Balance		Allowance		with Allowance		Cost		Allowance		Cost
Commercial	$	16,771	$	4,001	$	4,371	$	8,372	$	1,600	$	7,920
Commercial real estate		7,406		6,067		—		6,067		—		9,349
Real estate construction		292		292		—		292		—		581
Retail real estate		5,873		5,490		25		5,515		25		7,439
Retail other		—		—		—		—		—		10
Loans evaluated individually	$	30,342	$	15,850	$	4,396	$	20,246	$	1,625	$	25,299


	December 31, 2019
	Unpaid		Amortized
	Contractual		Cost		Amortized		Total				Average
	Principal		with No		Cost		Amortized		Related		Amortized
	Balance		Allowance		with Allowance		Cost		Allowance		Cost
Commercial	$	14,415	$	4,727	$	5,026	$	9,753	$	3,330	$	13,774
Commercial real estate		14,487		9,883		2,039		11,922		1,049		16,678
Real estate construction		1,116		974		—		974		—		873
Retail real estate		15,581		13,898		474		14,372		474		14,003
Retail other		87		58		—		58		—		42
Loans evaluated individually	$	45,686	$	29,540	$	7,539	$	37,079	$	4,853	$	45,370

Management's evaluation as to the ultimate collectability of loans includes estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral. These estimates are affected by changing economic conditions and the economic prospects of borrowers. Collateral dependent loans are loans in which repayment is expected to be provided solely by the underlying collateral and there are no other available and reliable sources of repayment. Loans are written down to the lower of cost or fair value of underlying collateral, less estimated costs to sell. As of December 31, 2020, there were $14.8 million of collateral dependent loans which are secured by real estate or business assets.

Allowance for Credit Losses

Management estimates the allowance balance using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience beginning in 2010. As of December 31, 2020, the Company expects the markets in which it operates to experience continued economic uncertainty around the levels of delinquencies over the next 12 months. Management adjusted the historical loss experience for these expectations with an immediate reversion to historical loss rate beyond this forecast period. PPP loans were excluded from the allowance calculation as they are 100% government guaranteed.

The following table details activity in the allowance for credit losses. Allocation of a portion of the allowance to one category does not preclude its availability to absorb losses in other categories (dollars in thousands):


	As of and for the Year Ended December 31, 2020
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance, prior to adoption of ASC 326	$	18,291	$	21,190	$	3,204	$	10,495	$	568	$	53,748
Adoption of ASC 326		715		9,306		2,954		3,292		566		16,833
Provision for credit losses		10,832		17,511		1,452		9,050		(48)		38,797
Charged-off		(6,376)		(1,972)		(18)		(2,057)		(665)		(11,088)
Recoveries		404		195		601		1,212		346		2,758
Ending balance	$	23,866	$	46,230	$	8,193	$	21,992	$	767	$	101,048


	As of and for the Year Ended December 31, 2019
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	17,829	$	21,137	$	2,723	$	8,471	$	488	$	50,648
Provision for credit losses		4,893		3,002		(70)		2,102		479		10,406
Charged-off		(6,478)		(3,257)		—		(1,162)		(863)		(11,760)
Recoveries		2,047		308		551		1,084		464		4,454
Ending balance	$	18,291	$	21,190	$	3,204	$	10,495	$	568	$	53,748


	As of and for the 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 credit 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

The following table presents the allowance and amortized cost of portfolio loans by category (dollars in thousands):


	As of December 31, 2020
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Allowance:
Ending balance attributed to:
Loans individually evaluated for impairment	$	1,600	$	—	$	—	$	25	$	—	$	1,625
Loans collectively evaluated for impairment		22,266		46,230		8,193		21,967		767		99,423
Allowance, ending balance	$	23,866	$	46,230	$	8,193	$	21,992	$	767	$	101,048

Loans:
Loans individually evaluated for impairment	$	8,372	$	4,161	$	292	$	5,149	$	—	$	17,974
Loans collectively evaluated for impairment		2,006,204		2,886,468		461,494		1,402,337		37,428		6,793,931
PCD loans evaluated for impairment		—		1,906		—		366		—		2,272
Loans, ending balance	$	2,014,576	$	2,892,535	$	461,786	$	1,407,852	$	37,428	$	6,814,177


	As of December 31, 2019
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Allowance:
Ending balance attributed to:
Loans individually evaluated for impairment	$	3,330	$	1,049	$	—	$	474	$	—	$	4,853
Loans collectively evaluated for impairment		14,961		20,141		3,204		10,021		568		48,895
Allowance, ending balance	$	18,291	$	21,190	$	3,204	$	10,495	$	568	$	53,748

Loans:
Loans individually evaluated for impairment	$	9,740	$	10,018	$	539	$	13,676	$	58	$	34,031
Loans collectively evaluated for impairment		1,738,615		2,781,495		400,887		1,679,397		49,776		6,650,170
PCI loans evaluated for impairment		13		1,904		435		696		—		3,048
Loans, ending balance	$	1,748,368	$	2,793,417	$	401,861	$	1,693,769	$	49,834	$	6,687,249

OREO

12 Months Ended

Dec. 31, 2020

OREO.

OREO

Note 5. 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. The following table summarizes the composition of the Company’s OREO balances as of December 31, 2020 and 2019 (dollars in thousands):


	As of December 31,
	2020		2019
Commercial	$	4,206	$	2,657
Residential		364		399
Other repossessed assets		1		1
Total OREO	$	4,571	$	3,057

At December 31, 2020, the Company had $1.0 million of residential real estate in the process of foreclosure. The Company has elected to follow Federal Housing Finance Agency guidelines on single-family foreclosures and real estate owned evictions on portfolio loans. The agency has extended the moratoriums on single-family foreclosures and real estate owned evictions until at least March 31, 2021. Additionally, the Company follows all COVID-19 related state foreclosure and eviction orders. These guidelines and orders are likely to be updated, and most foreclosures will be delayed into mid-2021 or beyond.

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


	Years Ended December 31,
	2020		2019
OREO:
Beginning balance	$	3,057	$	376
Additions, transfers from loans		2,867		4,872
Additions, fair value from acquisition		—		149
Sales of OREO		(1,282)		(2,277)
Capitalized improvements		—		2
Cash payments collected		(3)		(3)
Valuation allowance for OREO		(68)		(62)
Ending balance	$	4,571	$	3,057

Premises and Equipment, net

12 Months Ended

Dec. 31, 2020

Premises and Equipment, net

Premises and Equipment, net

Note 6. Premises and Equipment, net

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


	As of December 31,
	2020		2019
Land and improvements	$	40,762	$	43,967
Buildings and improvements		130,610		134,473
Furniture and equipment		53,766		54,328
Premises and equipment, gross		225,138		232,768
Accumulated depreciation		89,947		81,501
Premises and equipment, net	$	135,191	$	151,267

Depreciation expense was $12.3 million, $11.9 million, and $9.6 million for the years ended December 31, 2020, 2019, and 2018, respectively.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Note 7. 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 estimated fair value. Based on the impairment testing performed at December 31, 2020, 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 earnings.

During 2020, the Company recorded, in the Wealth Management operating segment, other intangible assets totaling $0.4 million in connection with an asset acquisition. During 2019, the Company recorded, in the Banking operating segment, goodwill totaling $41.4 million and other intangible assets totaling $27.2 million in connection with the acquisition of Banc Ed. In addition, $5.4 million of other intangible assets was recorded in the Wealth Management operating segment in 2019 in connection with the acquisition of Banc Ed. Further, in 2019 the Company recorded, in the Wealth Management operating segment, goodwill totaling $2.4 million and other intangible assets totaling $5.7 million relating to the acquisition of IST.

The carrying amount of goodwill by operating segment, at December 31, 2020 and 2019 is as follows (dollars in thousands):


	As of December 31,
	2020		2019
Goodwill:
Banking	$	288,436	$	288,436
Remittance Processing		8,992		8,992
Wealth Management		14,108		14,108
Total goodwill	$	311,536	$	311,536

Core deposit and customer relationship intangible assets are amortized over the estimated period benefited. Intangible asset disclosures are as follows (dollars in thousands):


	As of and for the Years Ended December 31,
	2020						2019
			Customer						Customer
	Core deposit		relationship				Core deposit		relationship
	intangible		intangible		Total		intangible		intangible		Total
Intangible assets, gross	$	90,256	$	24,608	$	114,864	$	90,256	$	24,208	$	114,464
Accumulated amortization		46,909		15,970		62,879		39,156		13,715		52,871
Intangible assets, net	$	43,347	$	8,638	$	51,985	$	51,100	$	10,493	$	61,593

Amortization expense	$	7,753	$	2,255	$	10,008	$	7,963	$	1,584	$	9,547

Future expense for the amortization of intangible assets, as estimated at December 31, 2020, is summarized in the table below for the periods presented (dollars in thousands):


			Customer
	Core deposit		relationship
Estimated amortization expense at December 31, 2020:	intangible		intangible		Total
2021	$	7,259	$	2,060	$	9,319
2022		6,749		1,797		8,546
2023		6,226		1,469		7,695
2024		5,686		1,141		6,827
2025		4,915		879		5,794
Thereafter		12,512		1,292		13,804
Total estimated amortization expense	$	43,347	$	8,638	$	51,985

Deposits

12 Months Ended

Dec. 31, 2020

Deposits

Deposits

Note 8. Deposits

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


	As of December 31,
	2020		2019
Demand deposits, noninterest-bearing	$	2,552,039	$	1,832,619
Interest-bearing transaction deposits		2,263,093		1,989,854
Saving deposits and money market deposits		2,743,369		2,545,073
Time deposits		1,119,348		1,534,850
Total deposits	$	8,677,849	$	7,902,396

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


	As of December 31,
	2020		2019
Brokered savings deposits and money market deposits	$	2,251	$	12,514
Brokered time deposits		5,257		5,498
Aggregate amount of time deposits with a minimum denomination of $100,000		568,735		854,132
Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000		192,563		297,442

As of December 31, 2020, the scheduled maturities of time deposits are as follows (dollars in thousands):


	As of
Scheduled maturities of time deposits:	December 31, 2020
2021	$	775,495
2022		195,906
2023		83,862
2024		48,761
2025		15,293
Thereafter		31
Total time deposits	$	1,119,348

Borrowings

12 Months Ended

Dec. 31, 2020

Borrowings

Borrowings

Note 9. Borrowings

Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature daily. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The underlying securities are held by the Company’s safekeeping agent. The Company may be required to provide additional collateral based on fluctuations in the fair value of the underlying securities. Securities sold under agreements to repurchase were $175.6 million at December 31, 2020, with a weighted average rate of 0.13%, compared to $205.5 million with a weighted average rate of 1.05% at December 31, 2019.

Federal funds purchased are short-term borrowings that generally mature between one and 90 days. The Company had no federal funds purchased at December 31, 2020 and 2019.

Short-term borrowings include $4.7 million of FHLB advances at December 31, 2020, which mature in less than one year from date of origination. At December 31, 2019, short term borrowings included $2.6 million of FHLB advances and $6.0 million of debt due within 12 months.

On January 29, 2019, the Company entered into an Amended and Restated Credit Agreement providing for a $60.0 million Term Loan with a maturity date of November 30, 2023. The Term Loan has an annual interest rate of one-month LIBOR plus a spread of 1.50%. Proceeds of the Term Loan were used to fund the cash consideration related to the acquisition of Banc Ed. The Company, at its option, repaid the balance of the Term Loan during the first quarter of 2020.

The Amended and Restated Credit Agreement retained the Company’s $20.0 million revolving credit facility with a maturity date of April 30, 2019. On April 19, 2019, the Company entered into an amendment to the Amended and Restated Credit Agreement to extend the maturity of its revolving credit facility to April 30, 2020. On April 24, 2020, the revolving credit facility maturity was again extended by amendment one year, to April 30, 2021, with an annual interest rate of one-month LIBOR plus a spread of 1.75%. The revolving credit facility incurs a non-usage fee based on the undrawn amount. The Company had no outstanding balance under the revolving facility on December 31, 2020 or 2019.

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


	As of December 31,
	2020		2019
Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock	$	4,757	$	35,600
Term Loan		—		48,000
Total long-term debt	$	4,757	$	83,600

As of December 31, 2020, funds borrowed from the FHLB, listed above, consisted of a variable-rate note maturing May 2023, with an interest rate of 3.04%. As of December 31, 2019, funds borrowed from the FHLB, listed above, consisted of variable-rate notes maturing through September 2024, with interest rates ranging from 1.25% to 3.04%. The weighted average rate on these long-term advances was 1.53% as of December 31, 2019.

On May 25, 2017, the Company issued $40.0 million of 3.75% senior notes that mature on May 25, 2022. The senior notes are payable semi-annually on each May 25 and November 25, commencing on November 25, 2017. The senior notes are not subject to optional redemption by the Company. Additionally, on May 25, 2017, the Company issued $60.0 million of fixed-to-floating rate subordinated notes that mature on May 25, 2027. The subordinated notes, which qualify as Tier 2 capital for First Busey, bear interest at an annual rate of 4.75% for the first five years after issuance and thereafter bear interest at a floating rate equal to three-month LIBOR plus a spread of 2.919%, as calculated on each applicable determination date. The subordinated notes are payable semi-annually on each May 25 and November 25,

commencing on November 25, 2017, during the five-year fixed term and thereafter on February 25, May 25, August 25, and November 25 of each year, commencing on August 25, 2022. The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after May 25, 2022. The senior notes and subordinated notes are unsecured obligations of the Company.

On June 1, 2020, the Company issued $125.0 million of fixed-to-floating rate subordinated notes that mature on June 1, 2030. The subordinated notes, which qualify as Tier 2 capital for First Busey, bear interest at an annual rate of 5.25% for the first five years after issuance and thereafter bear interest at a floating rate equal to a three-month benchmark rate plus a spread of 5.11%, as calculated on each applicable determination date. The subordinated notes are payable semi-annually on each June 1 and December 1, during the five-year fixed-term, and thereafter on March 1, June 1, September 1, and December 1 of each year, commencing on September 1, 2025. The subordinated notes have an optional redemption, in whole or in part, on any interest payment date on or after June 1, 2025. The subordinated notes are unsecured obligations of the Company.

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


	As of December 31,
	2020		2019
Unamortized debt issuance costs related to:
Senior notes issued in 2017	$	191	$	326
Subordinated notes issued in 2017		651		752
Subordinated notes issued in 2020		2,123		—
Total unamortized debt issuance costs	$	2,965	$	1,078

Junior Subordinated Debt Owed to Unconsolidated Trusts

12 Months Ended

Dec. 31, 2020

Junior Subordinated Debt Owed to Unconsolidated Trusts

Junior Subordinated Debt Owed to Unconsolidated Trusts

Note 10. Junior Subordinated Debt Owed to Unconsolidated Trusts

First Busey maintains statutory trusts for the sole purpose of issuing and servicing trust preferred securities and related trust common securities. 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 $71.5 million and $71.3 million of junior subordinated debt owed to unconsolidated trusts at December 31, 2020 and 2019, respectively, maturing in 2034 through 2036.

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 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, 2020, 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, and all of its trust preferred securities were issued prior to 2010, 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, 2020

Regulatory Capital

Regulatory Capital

Note 11. Regulatory Capital

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

Banking regulations identify five capital categories for insured depository institutions: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. As of December 31, 2020 and 2019, all capital ratios of the Company and Busey Bank 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, 2020 that would change this designation.

On March 27, 2020, the FDIC and other federal banking agencies published an interim final rule that provides those banking organizations adopting CECL during 2020 with the option to delay for two years the estimated impact of CECL on regulatory capital and to phase in the aggregate impact of the deferral on regulatory capital over a subsequent three year period. On August 26, 2020, the CECL final rule was finalized and was substantially similar to the interim final rule. Under this final rule, because the Company has elected to use the deferral option, the regulatory capital impact of our transition adjustments recorded on January 1, 2020, from the adoption of CECL will be deferred for two years. In addition, 25 percent of the ongoing impact of CECL on our allowance for credit losses, retained earnings, and average total consolidated assets from January 1, 2020, through the end of the two-year deferral period, each as reported for regulatory capital purposes, will be added to the deferred transition amounts (adjusted transition amounts) and deferred for the two-year period. At the conclusion of the two-year period (January 1, 2022), the adjusted transition amounts will be phased-in for regulatory capital purposes at a rate of 25 percent per year, with the phased-in amounts included in regulatory capital at the beginning of each year.

On June 1, 2020, the Company issued $125.0 million of fixed-to-floating rate subordinated notes that mature on June 1, 2030, which qualify as Tier 2 capital for regulatory purposes.

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, 2020:
Total Capital (to Risk Weighted Assets)
Consolidated	$	1,245,997	17.04	%	$	585,015	8.00	%	$	731,269	10.00	%
Busey Bank	$	1,131,875	15.50	%	$	584,082	8.00	%	$	730,103	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	983,033	13.44	%	$	438,761	6.00	%	$	585,015	8.00	%
Busey Bank	$	1,053,910	14.44	%	$	438,062	6.00	%	$	584,082	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	909,033	12.43	%	$	329,071	4.50	%	$	475,325	6.50	%
Busey Bank	$	1,053,910	14.44	%	$	328,546	4.50	%	$	474,567	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated	$	983,033	9.79	%	$	401,717	4.00	%		N/A	N/A
Busey Bank	$	1,053,910	10.52	%	$	400,581	4.00	%	$	500,727	5.00	%


									Minimum
					Minimum				To Be Well
	Actual				Capital Requirement				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2019:
Total Capital (to Risk Weighted Assets)
Consolidated	$	1,036,143	14.03	%	$	590,826	8.00	%	$	738,532	10.00	%
Busey Bank	$	1,099,449	14.92	%	$	589,681	8.00	%	$	737,101	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	922,395	12.49	%	$	443,120	6.00	%	$	590,826	8.00	%
Busey Bank	$	1,045,701	14.19	%	$	442,261	6.00	%	$	589,681	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	848,395	11.49	%	$	332,340	4.50	%	$	480,046	6.50	%
Busey Bank	$	1,045,701	14.19	%	$	331,696	4.50	%	$	479,116	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated	$	922,395	9.88	%	$	373,360	4.00	%		N/A	N/A
Busey Bank	$	1,045,701	11.19	%	$	373,639	4.00	%	$	467,049	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 Common Equity Tier 1, which is added to the minimum risk-weighted asset ratios. The capital conservation buffer is not a minimum capital requirement; however, banking institutions with a ratio of Common Equity Tier 1 to risk-weighted assets below the capital conservation buffer will face constraints on dividends, equity repurchases, and discretionary bonus payments based on the amount of the shortfall. In order to refrain from restrictions on dividends, equity repurchases, and discretionary bonus payments, banking institutions must maintain minimum ratios of (i) Common Equity Tier 1 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 is 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. Busey Bank paid dividends to the Company of $122.0 million and $70.0 million during 2020 and 2019, respectively.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Taxes

Income Taxes

Note 12. Income Taxes

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


	Years Ended December 31,
	2020		2019		2018
Current expense:
Federal	$	21,027	$	22,479	$	18,076
State		12,144		8,910		9,807
Deferred expense:
Federal		(3,657)		(380)		5,068
State		(1,652)		476		2,048
Total income tax expense	$	27,862	$	31,485	$	34,999

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:


	% of Pretax Income
	Years Ended December 31,
	2020		2019		2018
Income tax at federal statutory rate	21.0	%	21.0	%	21.0	%
Effect of:
Tax-exempt interest, net	(1.6)	%	(1.7)	%	(1.3)	%
Stock incentive	0.2	%	(0.1)	%	(0.3)	%
State income taxes, net	6.5	%	5.5	%	7.3	%
Income on bank owned life insurance	(0.9)	%	(0.9)	%	(0.6)	%
Tax credit investments	(3.2)	%	(1.3)	%	—	%
Other, net	(0.3)	%	0.9	%	—	%
	21.7	%	23.4	%	26.1	%

Net deferred taxes at December 31, 2020 and 2019, reported in other assets or other liabilities in the accompanying Consolidated Balance Sheets, include the following amounts of deferred tax assets and liabilities (dollars in thousands).


	2020		2019
Deferred tax assets:
Allowance for credit losses	$	30,332	$	15,416
Unrealized loss on cash flow hedge		871		80
Stock-based compensation		2,975		2,069
Deferred compensation		66		166
Affordable housing partnerships and other investments		—		697
Purchase accounting adjustments		4,470		11,301
Accrued vacation		610		827
Lease liabilities		2,142		2,650
Employee costs		1,598		1,048
Other		431		809
Total deferred tax assets	$	43,495	$	35,063

Deferred tax liabilities:
Unrealized gain on securities available for sale		(14,151)		(6,032)
Basis in premises and equipment		(348)		(4,222)
Affordable housing partnerships and other investments		(1,995)		(1,411)
Purchase accounting adjustments		(1,835)		(1,023)
Mortgage servicing assets		(3,418)		(3,717)
Basis in core deposit, customer intangible assets, and asset purchase goodwill		(12,714)		(17,120)
Deferred loan origination costs		(2,654)		(1,730)
Right of use assets		(2,130)		(2,633)
Unrealized gain on equity securities		(276)		(593)
Other		(405)		(508)
Total deferred tax liabilities	$	(39,926)	$	(38,989)

Net deferred tax asset (liability)	$	3,569	$	(3,926)

At December 31, 2020, the Company had no net operating loss carryforward.

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 valuation allowance is required for any deferred tax assets as of December 31, 2020 or 2019.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Employee Benefit Plans

12 Months Ended

Dec. 31, 2020

Employee Benefit Plans

Employee Benefit Plans

Note 13. Employee Benefit Plans

Employees’ Stock Ownership Plan

Prior to 2014, the First Busey 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 were no new contributions under the ESOP. On October 31, 2019, First Busey’s board of directors elected to terminate the ESOP and filed a determination letter with the Internal Revenue Service on February 10, 2020. During 2020, the ESOP was terminated, and all plan assets were distributed.

Shares held in the ESOP are summarized in the table below (dollars in thousands):


	As of December 31, 2020				As of December 31, 2019
	Shares		Fair Value		Shares		Fair Value
Shares held in the ESOP:
Acquired prior to December 31, 1992		—	$	—		113,866	$	3,131
Acquired after December 31, 1992		—		—		36,719		1,010
Total shares held in the ESOP		—	$	—		150,585	$	4,141

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. Contributions and related expenses, if any, are determined solely by the boards of directors of the Company and its subsidiaries, and in no case may annual contributions be greater than the amounts deductible for federal income tax purposes for that year.

The rights of profit-sharing plan participants vest ratably over a five-year period, except for the 401(k) match, which vests immediately. Expenses related to the employee benefit plans were $6.0 million, $5.8 million, and $5.4 million for the years ended December 31, 2020, 2019, and 2018, respectively.

Deferred Compensation Plan

The Company previously sponsored deferred compensation plans for executive officers for deferral of compensation. Effective March 28, 2018, the deferred compensation plan was terminated, and account balances were distributed in April 2019.

There was no deferred compensation liability balance as of December 31, 2020. The Company’s 2019 deferred compensation liability was impacted by our 2019 acquisition of Banc Ed, resulting in a balance of $0.4 million as of December 31, 2019, which was settled in January 2020.

There was no deferred compensation expense for the year ended December 31, 2020. Deferred compensation expense reported for the years ended December 31, 2019 and 2018, was $0.1 million and $0.3 million, respectively.

Stock-based Compensation

12 Months Ended

Dec. 31, 2020

Stock-based Compensation

Stock-based Compensation

Note 14. Stock-based Compensation

Overview

Under the terms of the 2020 Equity Plan, the Company has granted restricted stock units, deferred stock units and performance-based restricted stock unit awards. The Company grants restricted stock units to members of management periodically throughout the year. Each restricted stock unit is equivalent to one share of the Company’s common stock. These units have requisite service periods ranging from one to five years, subject to accelerated vesting upon eligible retirement from the Company. Recipients earn quarterly dividend equivalents on their respective units which entitle the recipients to additional units. Therefore, dividends earned each quarter compound based upon the updated unit balances.

The Company also grants performance-based restricted stock unit awards to members of management periodically throughout the year. Each performance-based restricted stock unit is equivalent to one share of the Company’s common stock. The number of units ultimately earned will be determined based on the achievement of market performance goals, subject to accelerated service-based vesting conditions upon eligible retirement from the Company.

The Company has outstanding stock options assumed from acquisitions.

Upon exercise or vesting/delivery, shares are expected (though not required) to be issued from treasury.

Stock Option Plan

A summary of the status of and changes in the Company's stock option awards for the year ended December 31, 2020, follows:


	2020
					Weighted-
			Weighted-		Average
			Average		Remaining
			Exercise		Contractual		Intrinsic
	Shares		Price		Life		Value
Outstanding at beginning of year		53,185	$	22.00		5.90	$	292
Exercised		(12,956)		17.45
Forfeited		—		—
Expired		(1,144)		21.35
Outstanding at end of year		39,085	$	23.53		5.88	$	—

Exercisable at end of year		39,085	$	23.53		5.88	$	—

The Company did not record any stock option compensation expense for the year ended December 31, 2020. The Company recorded stock option compensation expense, related to the converted options from First Community, totaling $0.1 million, and $0.2 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2020, the Company did not have any unrecognized stock option expense.

Restricted Stock Unit, Deferred Stock Unit, and Performance-Based Restricted Stock Unit Awards:

A summary of the changes in the Company’s restricted stock units for the year ended December 31, 2020, is as follows:


	2020
			Weighted-
			Average
			Grant Date
	Shares		Fair Value
Non-vested at beginning of year		778,317	$	27.27
Granted		385,893		17.26
Dividend equivalents earned		41,592		18.85
Vested		(117,641)		21.38
Forfeited		(71,123)		26.34
Non-vested at end of year		1,017,038	$	23.87

A summary of the changes in the Company’s deferred stock units for the year ended December 31, 2020, is as follows:


	2020
			Weighted-
			Average
			Grant Date
	Shares		Fair Value
Non-vested at beginning of year		21,261	$	26.78
Granted		33,419		17.17
Dividend equivalents earned		4,507		18.97
Vested		(24,924)		25.68
Forfeited		—		—
Non-vested at end of year		34,263	$	17.18

Outstanding at end of year		71,044	$	24.34

On February 5, 2020, under the terms of the 2010 Equity Incentive Plan, the Company granted 3,808 restricted stock units to a member of management. The grant date fair value of the award totaled $0.1 million and will be recognized as compensation expense over the three-year requisite service period. Subsequent to the requisite service period, the awards will become 100% vested.

On July 7, 2020, under the terms of the 2020 Equity Incentive Plan, the Company granted 380,535 restricted stock units to members of management, including the Vice-Chairman of the Board. The grant date fair value of the award totaled $6.5 million and will be recognized as compensation expense over the requisite service period ranging from one year to five years. The terms of these awards included an accelerated vesting provision upon eligible retirement from the Company and added the accelerated vesting provision to all previously issued and outstanding awards. Subsequent to the requisite service period, the awards will become 100% vested. Further, the Company granted 33,419 deferred stock units to directors and advisory directors. The grant date fair value of the award totaled $0.6 million and will be recognized as compensation expense over the requisite service period of one year. Subsequent to the requisite service period, the awards will become 100% vested.

On September 21, 2020, under the terms of the 2020 Equity Incentive Plan, the Company granted 1,550 restricted stock units to a member of management. The grant date fair value of the award was insignificant and will be recognized as compensation expense over the requisite service period of five years.

During the third quarter of 2020, the Company granted a target of 15,724 performance-based restricted stock units with a maximum of 25,158 units. The actual number of units issued at the vest date could range from 0% to 160% of the initial grant, depending on attaining the market performance goal. The grant date fair value of the award is $0.3 million and will be recognized in compensation expense over the performance period ending December 31, 2022.

A description of restricted stock units and deferred stock units granted in 2019 and 2018 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, 2019 and 2018.

The Company issued 106,589 treasury shares in conjunction with the vesting of restricted stock units and settlement of deferred stock units in 2020. 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 $7.1 million, $3.8 million, and $3.5 million of compensation expense related to both non-vested restricted stock units and deferred stock units for the years ended December 31, 2020, 2019, and 2018, respectively. As of December 31, 2020, 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 3.0 years.

Transactions with Related Parties

12 Months Ended

Dec. 31, 2020

Transactions with Related Parties

Transactions with Related Parties

Note 15. 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, 2020 (dollars in thousands):


	2020
Balance at beginning of year	$	53,327
Change in relationship		(11,037)
New loans/advances		12,593
Repayments		(12,962)
Balance at end of year	$	41,921

Total unused commitments to directors and executive officers were $50.0 million at December 31, 2020.

Outstanding Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2020

Outstanding Commitments and Contingent Liabilities

Outstanding Commitments and Contingent Liabilities

Note 16. 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):

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2020

Derivative Financial Instruments

Derivative Financial Instruments

Note 17. Derivative Financial Instruments

Interest Rate Swaps Designated as Cash Flow Hedges: Starting in the third quarter of 2019, the Company entered into derivative instruments designated as a cash flow hedges. For derivative instruments that are designated and qualify as a cash flow hedge, the change in fair value of the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects

earnings. Change in fair value of components excluded from the assessment of effectiveness are recognized in current earnings.

Interest rate swaps with notional amounts totaling $70.0 million as of December 31, 2020, were designated as cash flow hedges to hedge the risk of variability in cash flows (future interest payments) attributable to changes in the contractually specified 3 month LIBOR benchmark interest rate on the Company’s junior subordinated debt owed to unconsolidated trusts and were determined to be highly effective during the period. The gross aggregate fair value of the swaps of $3.1 million and $0.3 million is recorded in other liabilities in the Consolidated Financial Statements at December 31, 2020 and 2019, respectively, with changes in fair value recorded net of tax in other comprehensive income (loss). The Company expects the hedges to remain highly effective during the remaining terms of the swaps.

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


	Years Ended December 31,
	2020			2019
Notional amount	$	70,000		$	70,000
Weighted average fixed pay rates		1.80	%		1.80	%
Weighted average variable 3-month LIBOR receive rates		0.22	%		1.90	%
Weighted average maturity, in years		2.85	yrs		3.86	yrs
Unrealized gains (losses), net of tax	$	(2,184)		$	(200)

Interest income (expense) recorded on these swap transactions was $(0.8) million during the year ended December 31, 2020, and was an insignificant amount in 2019. The Company expects $(0.3) million of the unrealized gain (loss) to be reclassified from OCI to interest expense during the next three months. This reclassified amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to December 31, 2020.

The following table reflects the net gains (losses) recorded in accumulated other comprehensive income (loss) and the Consolidated Statements of Income relating to cash flow derivative instruments for the periods presented (dollars in thousands):


	Years Ended December 31,
Interest rate contracts		2020		2019
Amount of gain (loss) recognized in OCI	$	(2,526)	$	(202)
Amount of (gain) loss reclassified from OCI to interest expense		542		2

The Company pledged $3.2 million and $0.3 million in cash to secure its obligation under these contracts at December 31, 2020 and 2019, respectively.

Interest Rate Lock Commitments. Interest rate lock commitments that meet the definition of derivative financial instruments under ASC Topic 815, Derivatives and Hedging, are carried at their fair values in other assets or other liabilities in the 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. 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 following table reflects the amount and fair value of mortgage banking derivatives included in the Consolidated Balance Sheets for the periods presented (dollars in thousands):


		December 31, 2020				December 31, 2019
		Notional		Fair		Notional		Fair
Derivatives with positive fair value	Location	Amount		Value		Amount		Value
Interest rate lock commitments	Other assets	$	45,004	$	1,201	$	67,965	$	1,032
Forward sales commitments	Other assets		978		32		1,773		14
Mortgage banking derivatives recorded in other assets		$	45,982	$	1,233	$	69,738	$	1,046

Derivatives with negative fair value
Interest rate lock commitments	Other liabilities	$	118	$	1	$	1,114	$	11
Forward sales commitments	Other liabilities		84,964		2,662		133,482		2,176
Mortgage banking derivatives recorded in other liabilities		$	85,082	$	2,663	$	134,596	$	2,187

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


		Years Ended December 31,
	Location	2020		2019		2018
Interest rate lock commitments	Mortgage revenue	$	9,667	$	3,988	$	1,757
Forward sales commitments	Mortgage revenue		(18,329)		(6,751)		(3,110)
Net gains (losses)		$	(8,662)	$	(2,763)	$	(1,353)

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.

Interest Rate Swaps Not Designated as Hedges. The Company may offer derivative contracts to its customers in connection with their risk management needs. The Company manages the risk associated with these contracts by entering into an equal and offsetting derivative with a third-party dealer. These contracts support variable rate, commercial loan relationships totaling $395.0 million and $290.4 million, at December 31, 2020 and 2019, 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 following table reflects the amount and fair value of derivative assets and liabilities related to customer interest rate swaps recorded in the Consolidated Balance Sheets for the periods presented (dollars in thousands):


	Derivative Asset				Derivative Liability
	Notional		Fair		Notional		Fair
December 31, 2020	Amount		Value		Amount		Value
Interest rate swaps - pay floating, receive fixed	$	394,954	$	32,685	$	—	$	—
Interest rate swaps - pay fixed, receive floating		—		—		394,954		32,685
Derivatives not designated as hedging instruments	$	394,954	$	32,685	$	394,954	$	32,685

	Derivative Asset				Derivative Liability

	Notional		Fair		Notional		Fair
December 31, 2019	Amount		Value		Amount		Value
Interest rate swaps - pay floating, receive fixed	$	290,418	$	12,354	$	—	$	—
Interest rate swaps - pay fixed, receive floating		—		—		290,418		12,354
Derivatives not designated as hedging instruments	$	290,418	$	12,354	$	290,418	$	12,354

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


		Years Ended December 31,
	Location	2020		2019		2018
Interest rate swaps - pay floating, receive fixed	Non-interest expense	$	20,331	$	10,915	$	1,176
Interest rate swaps - pay fixed, receive floating	Non-interest expense		(20,331)		(10,915)		(1,176)
Net change in fair value of interest rate swaps		$	—	$	—	$	—

The Company pledged $36.0 million and $18.1 million in cash to secure its obligation under these contracts at December 31, 2020 and 2019, respectively.

Fair Value Measurements

12 Months Ended

Dec. 31, 2020

Fair Value Measurements

Fair Value Measurements

Note 18. Fair Value Measurements

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

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

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

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

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

In general, fair value is based upon quoted market prices, when available. If such quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable data. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect, among other things, counterparty credit quality and the company's creditworthiness as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. While management believes the Company's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

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

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

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

Equity Securities. Equity securities are reported at fair value utilizing Level 1 or Level 2 measurements. For mutual funds, 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. For stock, quoted prices for identical or similar assets in markets that are not active are utilized and classified as Level 2.

Loans Held for Sale. Loans held for sale 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, 2020 and 2019, 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, 2020
Debt securities available for sale
U.S. Treasury securities	$	—	$	27,837	$	—	$	27,837
Obligations of U.S. government corporations and agencies		—		69,519		—		69,519
Obligations of states and political subdivisions		—		304,711		—		304,711
Commercial mortgage-backed securities		—		418,616		—		418,616
Residential mortgage-backed securities		—		1,368,315		—		1,368,315
Corporate debt securities		—		72,189		—		72,189
Equity securities		—		5,530		—		5,530
Loans held for sale		—		42,813		—		42,813
Derivative assets		—		33,918		—		33,918
Derivative liabilities		—		38,403		—		38,403


	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
December 31, 2019
Debt securities available for sale
U.S. Treasury securities	$	—	$	51,737	$	—	$	51,737
Obligations of U.S. government corporations and agencies		—		163,000		—		163,000
Obligations of states and political subdivisions		—		268,291		—		268,291
Commercial mortgage-backed securities		—		139,287		—		139,287
Residential mortgage-backed securities		—		921,966		—		921,966
Corporate debt securities		—		103,976		—		103,976
Equity securities		—		5,952		—		5,952
Loans held for sale		—		68,699		—		68,699
Derivative assets		—		13,400		—		13,400
Derivative liabilities		—		14,821		—		14,821

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

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

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

or real estate listing price. Due to the significance of 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, 2020 and 2019, 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, 2020
Loans evaluated individually	$	—	$	—	$	2,771	$	2,771
OREO		—		—		106		106
Bank property held for sale		—		—		10,676		10,676

December 31, 2019
Loans evaluated individually	$	—	$	—	$	2,686	$	2,686
OREO		—		—		55		55
Bank property held for sale		—		—		4,004		4,004

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, 2020

Loans evaluated individually

2,771

Appraisal of collateral

Appraisal adjustments

-30.0% to -100% (-37.0)%

OREO

106

Appraisal of collateral

Appraisal adjustments

-25.0% to -100% (-54.5)%

Bank property held for sale

10,676

Appraisal of collateral or real estate listing price

Appraisal adjustments

-6.2% to -64.9% (-42.8)%

December 31, 2019

Loans evaluated individually

2,686

Appraisal of collateral

Appraisal adjustments

-2.9% to -100% (-57.8)%

OREO

Appraisal of collateral

Appraisal adjustments

-25.0% to -100% (-65.0)%

Bank property held for sale

4,004

Appraisal of collateral or real estate listing price

Appraisal adjustments

-6.2% to -71.3% (-40.7)%

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, 2020				December 31, 2019
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Level 1 inputs:
Cash and cash equivalents	$	688,537	$	688,537	$	529,288	$	529,288
Level 2 inputs:
Accrued interest receivable		33,240		33,240		27,109		27,109
Level 3 inputs:
Portfolio loans, net		6,713,129		6,755,425		6,633,501		6,648,560
Mortgage servicing rights		10,912		11,107		12,326		18,193
Other servicing rights		1,434		1,966		1,071		1,740

Financial liabilities:
Level 2 inputs:
Time deposits	$	1,119,348	$	1,132,107	$	1,534,850	$	1,538,597
Securities sold under agreements to repurchase		175,614		175,614		205,491		205,491
Short-term borrowings		4,658		4,661		8,551		8,552
Long-term debt		4,757		5,014		83,600		83,614
Junior subordinated debt owed to unconsolidated trusts		71,468		59,943		71,308		74,153
Accrued interest payable		3,401		3,401		5,000		5,000
Level 3 inputs:
Senior notes, net of unamortized issuance costs		39,809		40,104		39,674		40,099
Subordinated notes, net of unamortized issuance costs		182,226		187,697		59,248		61,514

- 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, 2020

Earnings Per Share

Earnings Per Share

Note 19. Earnings Per Share

Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding, which include 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 and warrants were exercised and restricted stock units were vested.

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



	Years Ended December 31,
	2020		2019		2018
Net income	$	100,344	$	102,953	$	98,928

Shares:
Weighted average common shares outstanding		54,567,429		54,851,652		48,854,330
Dilutive effect of outstanding options, warrants, and restricted stock units as determined by the application of the treasury stock method		259,510		280,842		361,125
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation		54,826,939		55,132,494		49,215,455

Basic earnings per common share	$	1.84	$	1.88	$	2.02

Diluted earnings per common share	$	1.83	$	1.87	$	2.01

Common stock equivalents excluded from the earning per common share calculations because their effect would have been anti-dilutive		206,355		201,029		363,849

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2020

Accumulated Other Comprehensive Income (Loss).

Accumulated Other Comprehensive Income (Loss).

Note 20. Accumulated Other Comprehensive Income (Loss)

The following table represents changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods below (dollars in thousands):


	Year Ended December 31, 2020
		Before Tax		Tax Effect		Net of Tax
Unrealized gains (losses) on debt securities available for sale:
Balance at beginning of period	$	21,192	$	(6,032)	$	15,160
Unrealized holding gains (losses) on debt securities available for sale, net		30,176		(8,615)		21,561
Amounts reclassified from accumulated other comprehensive income, net		(1,724)		496		(1,228)
Balance at end of period	$	49,644	$	(14,151)	$	35,493

Unrealized gains (losses) on cash flow hedges:
Balance at beginning of period		(280)		80		(200)
Unrealized holding gains (losses) on cash flow hedges, net		(3,533)		1,007		(2,526)
Amounts reclassified from accumulated other comprehensive income, net		758		(216)		542
Balance at end of period	$	(3,055)	$	871	$	(2,184)
Total accumulated other comprehensive income (loss)	$	46,589	$	(13,280)	$	33,309


	Year Ended December 31, 2019
		Before Tax		Tax Effect		Net of Tax
Unrealized gains (losses) on debt securities available for sale:
Balance at beginning of period	$	(9,528)	$	2,716	$	(6,812)
Unrealized holding gains (losses) on debt securities available for sale, net		26,430		(7,525)		18,905
Unrealized losses on debt securities transferred from held to maturity to available for sale		5,023		(1,433)		3,590
Amounts reclassified from accumulated other comprehensive income, net		(733)		210		(523)
Balance at end of period	$	21,192	$	(6,032)	$	15,160

Unrealized gains (losses) on cash flow hedges:
Balance at beginning of period		—		—		—
Unrealized holding gains (losses) on cash flow hedges, net		(283)		81		(202)
Amounts reclassified from accumulated other comprehensive income, net		3		(1)		2
Balance at end of period	$	(280)	$	80	$	(200)
Total accumulated other comprehensive income (loss)	$	20,912	$	(5,952)	$	14,960


	Year Ended December 31, 2018
		Before Tax		Tax Effect		Net of Tax
Unrealized gains (losses) on debt securities available for sale:
Balance at beginning of period	$	(4,777)	$	1,967	$	(2,810)
Unrealized holding gains (losses) on debt securities available for sale, net		(6,531)		1,861		(4,670)
Amounts reclassified from accumulated other comprehensive income, net		1,780		(507)		1,273
Tax Cuts and Jobs Act of 2017 reclassification		—		(605)		(605)
Balance at end of period	$	(9,528)	$	2,716	$	(6,812)

Total accumulated other comprehensive income (loss)	$	(9,528)	$	2,716	$	(6,812)

Operating Segments and Related Information

12 Months Ended

Dec. 31, 2020

Operating Segments and Related Information

Operating Segments and Related Information

Note 21. 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; the St. Louis, Missouri metropolitan area; southwest Florida; and through its banking center in Indianapolis, Indiana. The Remittance Processing operating segment provides solutions 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, First Busey Risk Management, 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,				As of December 31,
	2020		2019		2020		2019
Banking	$	288,436	$	288,436	$	10,462,673	$	9,632,368
Remittance Processing		8,992		8,992		46,553		44,209
Wealth Management		14,108		14,108		46,504		32,760
Other		—		—		(11,683)		(13,608)
Totals	$	311,536	$	311,536	$	10,544,047	$	9,695,729


	Years Ended December 31,
	2020		2019		2018
Net interest income:
Banking	$	294,728	$	296,754	$	248,291
Remittance Processing		79		76		67
Wealth Management		—		—		327
Other		(11,872)		(9,607)		(7,279)
Total net interest income	$	282,935	$	287,223	$	241,406

Non-interest income:
Banking	$	61,043	$	63,613	$	43,197
Remittance Processing		16,548		16,450		15,876
Wealth Management		43,429		39,075		31,621
Other		(2,755)		(2,723)		(701)
Total non-interest income	$	118,265	$	116,415	$	89,993

Non-interest expense:
Banking	$	185,445	$	211,559	$	154,455
Remittance Processing		13,279		10,990		10,749
Wealth Management		26,086		24,534		19,283
Other		9,387		11,711		8,556
Total non-interest expense	$	234,197	$	258,794	$	193,043

Income before income taxes:
Banking	$	131,529	$	138,401	$	132,604
Remittance Processing		3,348		5,536		5,194
Wealth Management		17,343		14,541		12,665
Other		(24,014)		(24,040)		(16,536)
Total income before income taxes	$	128,206	$	134,438	$	133,927

Net income:
Banking	$	101,226	$	106,409	$	97,369
Remittance Processing		2,372		4,060		3,710
Wealth Management		13,181		11,135		9,372
Other		(16,435)		(18,651)		(11,523)
Total net income	$	100,344	$	102,953	$	98,928

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 21
-Subparagraph (a)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 42
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

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

+ Details

Leases

12 Months Ended

Dec. 31, 2020

Leases

Leases

Note 22. Leases

The Company has operating leases consisting primarily of equipment leases and real estate leases. The Company leases real estate property for banking centers, ATM locations, and office space with terms extending through 2032. As of December 31, 2020, the Company reported $7.7 million of right of use assets and $7.8 million lease liabilities in its Consolidated Balance Sheets, compared with $9.5 million and $9.6 million, respectively, at December 31, 2019.

The following tables represents lease costs and other lease information for the periods presented (dollars in thousands):


	Years Ended December 31,
Lease Costs	2020			2019
Operating lease costs	$	2,524		$	2,364
Variable lease costs		416			432
Short-term lease costs		35			84
Sublease income		—			—
Net lease cost	$	2,975		$	2,880

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments	$	2,526		$	2,296
Operating lease cash flows – Liability reduction		2,289			2,010
Right of use assets obtained during the period in exchange for operating lease liabilities		743			923
Weighted average lease term (in years)		5.93			7.20
Weighted average discount rate		2.82	%		3.08	%

At December 31, 2020, 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 $3.0 million, $2.9 million, and $2.4 million for the years ended December 31, 2020, 2019, and 2018, respectively.

Future undiscounted lease payments with initial terms of one year or more as of December 31, 2020, are as follows (dollars in thousands):


	As of
	December 31,
	2020
2021	$	1,983
2022		1,555
2023		1,358
2024		957
2025		840
Thereafter		1,792
Amounts representing interest		(728)
Present value of net future minimum lease payments	$	7,757

Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2020

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


	As of December 31,
	2020		2019
Assets
Cash and cash equivalents	$	129,183	$	14,952
Equity securities		5,530		5,923
Investments in subsidiaries:
Bank		1,417,130		1,417,941
Non-bank		2,746		806
Premises and equipment, net		51		68
Other assets		21,664		13,873
Total assets	$	1,576,304	$	1,453,563

Liabilities and Stockholders' Equity
Liabilities:
Short-term borrowings	$	—	$	6,000
Long-term debt		—		48,000
Senior notes, net of unamortized issuance costs		39,809		39,674
Subordinated notes, net of unamortized issuance costs		182,226		59,248
Junior subordinated debentures owed to unconsolidated trusts		71,468		71,308
Other liabilities		12,732		8,899
Total liabilities		306,235		233,129

Total stockholders' equity		1,270,069		1,220,434
Total liabilities and stockholders' equity	$	1,576,304	$	1,453,563

STATEMENTS OF INCOME


	Years Ended December 31,
	2020		2019		2018
Operating income:
Dividends from subsidiaries:
Bank	$	122,000	$	70,000	$	—
Non-bank		—		—		17,000
Interest income		154		441		747
Gain (loss) on equity securities		(393)		(759)		2,322
Other income		10,083		10,224		8,096
Total operating income		131,844		79,906		28,165

Expense:
Salaries, wages, and employee benefits		16,205		15,288		13,624
Interest expense		12,056		10,054		8,026
Operating expense		7,685		8,960		6,051
Total expense		35,946		34,302		27,701

Income (loss) before income tax benefit and equity in undistributed (in excess of) net income of subsidiaries		95,898		45,604		464
Income tax benefit		7,727		5,389		5,013
Income (loss) before equity in undistributed (in excess of) net income of subsidiaries		103,625		50,993		5,477

Equity in undistributed (in excess of) net income of subsidiaries:
Bank		(5,221)		51,604		103,309
Non-bank		1,940		356		(9,858)
Net income	$	100,344	$	102,953	$	98,928

STATEMENTS OF CASH FLOWS


	Years Ended December 31,
	2020		2019		2018
Cash Flows Provided by (Used in) Operating Activities
Net income	$	100,344	$	102,953	$	98,928
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		648		420		232
Distributions more (less) than net income of subsidiaries		3,281		(51,961)		(93,451)
Change in fair value of equity securities, net		393		759		(2,322)
Stock-based compensation		7,135		3,997		3,721
Changes in assets and liabilities:
(Increase) decrease in other assets		405		(4,279)		13,985
Increase (decrease) in other liabilities		(5,772)		(1,280)		1,341
Net cash provided by (used in) operating activities		106,434		50,609		22,434

Cash Flows Provided by (Used in) Investing Activities
Purchases of equity securities		—		(520)		—
Net cash paid for business acquisition		—		(90,722)		—
Purchases of premises and equipment		(19)		(31)		(46)
Net cash provided by (used in) investing activities		(19)		(91,273)		(46)

Cash Flows Provided by (Used in) Financing Activities
Proceeds from charter amendment with subsidiary bank		—		—		40,000
Cash paid for withholding taxes on stock-based payments		(635)		(863)		(817)
Cash dividends paid		(48,012)		(45,171)		(39,010)
Repayments of borrowings		(74,000)		(6,000)		(5,500)
Proceeds from issuance of debt		142,634		60,000		—
Proceeds from stock options exercised		101		169		—
Purchase of treasury stock		(12,272)		(24,292)		—
Common stock issuance costs		—		(234)		—
Net cash provided (used in) by financing activities		7,816		(16,391)		(5,327)

Net increase (decrease) in cash and cash equivalents		114,231		(57,055)		17,061
Cash and cash equivalents, beginning of period		14,952		72,007		54,946

Cash and cash equivalents, ending of period	$	129,183	$	14,952	$	72,007

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

Significant Accounting Policies

Nature of operations

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

Principles of consolidation

Use of Estimates

Use of estimates

Comprehensive income (loss)

Trust assets

Cash and cash equivalents

Securities

Debt 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.

The Company considers the following factors in assessing whether the decline is due to a credit loss:

●

Extent to which the fair value is less than the amortized cost basis.

●

Payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future.

●

Failure of the issuer of the security to make scheduled interest or principal payments.

●

Any changes to the rating of the security by a rating agency.

Equity securities are carried at fair value with changes in fair value recognized in earnings.

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

Assets purchased with credit deterioration

Allowance for credit 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 consist of core deposit and acquired customer relationship intangible assets arising from acquisitions and are amortized over their estimated useful lives.

Cash surrender value of bank-owned life insurance

Cash surrender value of bank owned life insurance

Other asset investments

Transfers of financial assets

Income taxes

Treasury Stock

Stock-based employee compensation

See “Note 14. Stock-based Compensation” for further discussion.

Segment disclosure

Business Combinations

Derivative Financial Instruments

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

Off-balance-sheet arrangements

Fair value of financial instruments

Subsequent events

Impact of recently adopted and issued accounting standards

Impact of recently adopted accounting standards

The following table illustrates the impact of ASC 326 (dollars in thousands):


	January 1, 2020
					Pre-tax
	Post ASC 326		Pre-ASC 326		Impact of ASC 326
	Adoption		Adoption		Adoption
Assets:
Allowance
Commercial	$	19,006	$	18,291	$	715
Commercial real estate		30,496		21,190		9,306
Real estate construction		6,158		3,204		2,954
Retail real estate		13,787		10,495		3,292
Retail other		1,134		568		566
Total allowance for credit losses	$	70,581	$	53,748	$	16,833

Liabilities:
Reserve for off-balance-sheet credit exposures	$	5,492	$	—	$	5,492

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

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

Impact of ASC Topic 326


	January 1, 2020
					Pre-tax
	Post ASC 326		Pre-ASC 326		Impact of ASC 326
	Adoption		Adoption		Adoption
Assets:
Allowance
Commercial	$	19,006	$	18,291	$	715
Commercial real estate		30,496		21,190		9,306
Real estate construction		6,158		3,204		2,954
Retail real estate		13,787		10,495		3,292
Retail other		1,134		568		566
Total allowance for credit losses	$	70,581	$	53,748	$	16,833

Liabilities:
Reserve for off-balance-sheet credit exposures	$	5,492	$	—	$	5,492

Acquisitions (Tables) - Banc Ed

12 Months Ended

Dec. 31, 2020

Schedule of fair value estimates of assets acquired and liabilities assumed

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



	Fair Value
Assets acquired:
Cash and cash equivalents	$	42,013
Securities		692,716
Loans held for sale		2,157
Portfolio loans		873,336
Premises and equipment		32,156
Other intangible assets		32,617
Mortgage servicing rights		6,946
Other assets		57,332
Total assets acquired		1,739,273

Liabilities assumed:
Deposits		1,439,203
Other borrowings		63,439
Other liabilities		20,153
Total liabilities assumed		1,522,795

Net assets acquired	$	216,478

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

Goodwill	$	41,437

Schedule of unaudited pro forma results of operations for the acquisition


		Pro Forma
	Years Ended December 31,
	2019		2018
Total revenues (net interest income plus non-interest income)	$	409,324	$	411,633
Net income		113,640		118,361
Diluted earnings per common share		2.03		2.15

Debt securities (Tables)

12 Months Ended

Dec. 31, 2020

Debt 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 information on debt securities (dollars in thousands):


			Gross		Gross			Allowance
	Amortized		Unrealized		Unrealized			for Credit	Fair
December 31, 2020:	Cost		Gains		Losses			Losses	Value
U.S. Treasury securities	$	27,481	$	356	$	—	$	—	$	27,837
Obligations of U.S. government corporations and agencies		67,406		2,162		(49)		—		69,519
Obligations of states and political subdivisions		292,940		11,779		(8)		—		304,711
Commercial mortgage-backed securities		408,716		10,212		(312)		—		418,616
Residential mortgage-backed securities		1,344,047		24,571		(303)		—		1,368,315
Corporate debt securities		70,953		1,237		(1)		—		72,189
Debt securities available for sale	$	2,211,543	$	50,317	$	(673)	$	—	$	2,261,187


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2019:	Cost		Gains		Losses		Value
U.S. Treasury securities	$	51,472	$	265	$	—	$	51,737
Obligations of U.S. government corporations and agencies		160,364		2,684		(48)		163,000
Obligations of states and political subdivisions		262,492		5,810		(11)		268,291
Commercial mortgage-backed securities		137,733		1,700		(146)		139,287
Residential mortgage-backed securities		912,308		10,282		(624)		921,966
Corporate debt securities		102,696		1,280		—		103,976
Debt securities available for sale	$	1,627,065	$	22,021	$	(829)	$	1,648,257

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


	As of December 31, 2020
	Amortized		Fair
	Cost		Value
Due in one year or less	$	121,208	$	122,213
Due after one year through five years		239,021		247,833
Due after five years through ten years		256,485		267,859
Due after ten years		1,594,829		1,623,282
Debt securities available for sale	$	2,211,543	$	2,261,187

Schedule of realized gains and losses related to sales of securities

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


	Years Ended December 31,
	2020		2019		2018
Gross security gains	$	1,732	$	1,318	$	—
Gross security (losses)		(8)		(585)		(1,780)
Net gains (losses) on sales of securities⁽¹⁾	$	1,724	$	733	$	(1,780)

(1)	Net gains (losses) on sales of securities reported on the Consolidated Statements of Income includes sale of equity securities, excluded in this table.

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


	Less than 12 months, gross				12 months or more, gross				Total, gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2020:	Value		Losses		Value		Losses		Value		Losses
Debt securities available for sale
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—	$	—
Obligations of U.S. government corporations and agencies		—		—		4,957		(49)		4,957		(49)
Obligations of states and political subdivisions		762		(8)		—		—		762		(8)
Commercial mortgage-backed securities		129,655		(312)		—		—		129,655		(312)
Residential mortgage-backed securities		89,997		(300)		139		(3)		90,136		(303)
Corporate debt securities		1,499		(1)		—		—		1,499		(1)
Total temporarily impaired securities	$	221,913	$	(621)	$	5,096	$	(52)	$	227,009	$	(673)


	Less than 12 months, gross				12 months or more, gross				Total, gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2019:	Value		Losses		Value		Losses		Value		Losses
Debt securities available for sale
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—	$	—
Obligations of U.S. government corporations and agencies		6,362		(48)		—		—		6,362		(48)
Obligations of states and political subdivisions⁽¹⁾		4,981		(11)		1,548		—		6,529		(11)
Commercial mortgage-backed securities		33,322		(144)		2,044		(2)		35,366		(146)
Residential mortgage-backed securities		78,326		(245)		50,259		(379)		128,585		(624)
Corporate debt securities		—		—		—		—		—		—
Total temporarily impaired securities	$	122,991	$	(448)	$	53,851	$	(381)	$	176,842	$	(829)

(1)	Unrealized losses for greater than 12 months, gross, was less than one thousand dollars.

Portfolio loans and allowance for credit losses (Tables)

12 Months Ended

Dec. 31, 2020

Portfolio loans

Distribution of portfolio loans

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


	As of December 31,
	2020		2019
Commercial	$	2,014,576	$	1,748,368
Commercial real estate		2,892,535		2,793,417
Real estate construction		461,786		401,861
Retail real estate		1,407,852		1,693,769
Retail other		37,428		49,834
Portfolio loans	$	6,814,177	$	6,687,249

Allowance		(101,048)		(53,748)
Portfolio loans, net	$	6,713,129	$	6,633,501

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


	December 31, 2020
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual
Commercial	$	1,768,755	$	136,948	$	72,447	$	27,903	$	8,523
Commercial real estate		2,393,372		383,277		75,486		34,897		5,503
Real estate construction		434,681		24,481		77		2,546		1
Retail real estate		1,382,616		10,264		2,471		3,702		8,799
Retail other		37,324		—		—		—		104
Portfolio loans	$	6,016,748	$	554,970	$	150,481	$	69,048	$	22,930


	December 31, 2019
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual
Commercial	$	1,458,416	$	172,526	$	66,337	$	41,273	$	9,096
Commercial real estate		2,477,398		186,963		105,487		26,204		9,178
Real estate construction		351,923		45,262		3,928		737		630
Retail real estate		1,661,691		9,125		5,355		7,001		8,935
Retail other		47,698		—		—		—		57
Portfolio loans	$	5,997,126	$	413,876	$	181,107	$	75,215	$	27,896

Risk grades of portfolio loans, further sorted by origination

Risk grades of portfolio loans, further sorted by origination year at December 31, 2020 is as follows (dollars in thousand):


	Term Loans Amortized Cost Basis by Origination Year
														Revolving
As of December 31, 2020	2020		2019		2018		2017		2016			Prior		loans		Total
Commercial:
Risk rating
Pass	$	812,536	$	158,307	$	107,565	$	93,190	$	61,847	$	79,970	$	455,340	$	1,768,755
Watch		16,544		22,247		14,954		13,724		2,577		10,943		55,959		136,948
Special Mention		6,402		2,671		2,069		7,164		6,763		13,733		33,645		72,447
Substandard		7,772		3,791		2,371		1,939		819		1,233		9,978		27,903
Substandard non-accrual		150		3,045		451		2,168		641		68		2,000		8,523
Total commercial	$	843,404	$	190,061	$	127,410	$	118,185	$	72,647	$	105,947	$	556,922	$	2,014,576
Commercial real estate:
Risk rating
Pass	$	717,559	$	503,977	$	360,573	$	384,843	$	180,555	$	227,068	$	18,797	$	2,393,372
Watch		88,297		110,526		90,412		33,734		32,887		27,023		398		383,277
Special Mention		16,490		8,858		10,490		10,505		7,102		21,808		233		75,486
Substandard		17,445		4,166		1,491		7,812		2,111		1,377		495		34,897
Substandard non-accrual		1,091		776		821		882		286		1,647		—		5,503
Total commercial real estate	$	840,882	$	628,303	$	463,787	$	437,776	$	222,941	$	278,923	$	19,923	$	2,892,535
Real estate construction:
Risk rating
Pass	$	179,232	$	171,663	$	64,025	$	1,468	$	761	$	1,444	$	16,088	$	434,681
Watch		18,485		3,657		337		1,838		164						24,481
Special Mention		67		10		—		—		—		—		—		77
Substandard		2,400		—		—		—		146		—		—		2,546
Substandard non-accrual		—		—		—		—		—		1		—		1
Total real estate construction	$	200,184	$	175,330	$	64,362	$	3,306	$	1,071	$	1,445	$	16,088	$	461,786
Retail real estate:
Risk rating
Pass	$	319,302	$	162,711	$	135,065	$	136,427	$	140,600	$	257,147	$	231,364	$	1,382,616
Watch		2,715		2,053		1,396		349		579		233		2,939		10,264
Special Mention		509		—		—		—		1,962		—		—		2,471
Substandard		899		96		56		26		727		1,631		267		3,702
Substandard non-accrual		687		78		646		1,147		233		4,815		1,193		8,799
Total retail real estate	$	324,112	$	164,938	$	137,163	$	137,949	$	144,101	$	263,826	$	235,763	$	1,407,852
Retail other:
Risk rating
Pass	$	8,357	$	9,430	$	5,600	$	2,516	$	691	$	440	$	10,290	$	37,324
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Substandard non-accrual		14		7		5		15		5		57		1		104
Total retail other	$	8,371	$	9,437	$	5,605	$	2,531	$	696	$	497	$	10,291	$	37,428

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

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


	December 31, 2020
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Commercial	$	243	$	—	$	—	$	8,523
Commercial real estate		—		—		—		5,503
Real estate construction		237		235		—		1
Retail real estate		6,248		400		1,305		8,799
Retail other		66		149		66		104
Past due and non-accrual loans	$	6,794	$	784	$	1,371	$	22,930


	December 31, 2019
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Commercial	$	1,075	$	1,014	$	199	$	9,096
Commercial real estate		2,653		3,121		584		9,178
Real estate construction		19		—		—		630
Retail real estate		5,021		1,248		828		8,935
Retail other		52		68		—		57
Past due and non-accrual loans	$	8,820	$	5,451	$	1,611	$	27,896

Summary of restructured loans

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


	December 31,
	2020		2019
In compliance with modified terms	$	3,814	$	5,005
30 – 89 days past due		15		—
Included in non-performing loans		1,249		702
TDR loans	$	5,078	$	5,707

Schedule of details of impaired loans, segregated by category


	December 31, 2020
	Unpaid		Amortized
	Contractual		Cost		Amortized		Total				Average
	Principal		with No		Cost		Amortized		Related		Amortized
	Balance		Allowance		with Allowance		Cost		Allowance		Cost
Commercial	$	16,771	$	4,001	$	4,371	$	8,372	$	1,600	$	7,920
Commercial real estate		7,406		6,067		—		6,067		—		9,349
Real estate construction		292		292		—		292		—		581
Retail real estate		5,873		5,490		25		5,515		25		7,439
Retail other		—		—		—		—		—		10
Loans evaluated individually	$	30,342	$	15,850	$	4,396	$	20,246	$	1,625	$	25,299


	December 31, 2019
	Unpaid		Amortized
	Contractual		Cost		Amortized		Total				Average
	Principal		with No		Cost		Amortized		Related		Amortized
	Balance		Allowance		with Allowance		Cost		Allowance		Cost
Commercial	$	14,415	$	4,727	$	5,026	$	9,753	$	3,330	$	13,774
Commercial real estate		14,487		9,883		2,039		11,922		1,049		16,678
Real estate construction		1,116		974		—		974		—		873
Retail real estate		15,581		13,898		474		14,372		474		14,003
Retail other		87		58		—		58		—		42
Loans evaluated individually	$	45,686	$	29,540	$	7,539	$	37,079	$	4,853	$	45,370

Schedule of activity on the allowance for loan losses


	As of and for the Year Ended December 31, 2020
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance, prior to adoption of ASC 326	$	18,291	$	21,190	$	3,204	$	10,495	$	568	$	53,748
Adoption of ASC 326		715		9,306		2,954		3,292		566		16,833
Provision for credit losses		10,832		17,511		1,452		9,050		(48)		38,797
Charged-off		(6,376)		(1,972)		(18)		(2,057)		(665)		(11,088)
Recoveries		404		195		601		1,212		346		2,758
Ending balance	$	23,866	$	46,230	$	8,193	$	21,992	$	767	$	101,048


	As of and for the Year Ended December 31, 2019
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	17,829	$	21,137	$	2,723	$	8,471	$	488	$	50,648
Provision for credit losses		4,893		3,002		(70)		2,102		479		10,406
Charged-off		(6,478)		(3,257)		—		(1,162)		(863)		(11,760)
Recoveries		2,047		308		551		1,084		464		4,454
Ending balance	$	18,291	$	21,190	$	3,204	$	10,495	$	568	$	53,748


	As of and for the 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 credit 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

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

The following table presents the allowance and amortized cost of portfolio loans by category (dollars in thousands):


	As of December 31, 2020
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Allowance:
Ending balance attributed to:
Loans individually evaluated for impairment	$	1,600	$	—	$	—	$	25	$	—	$	1,625
Loans collectively evaluated for impairment		22,266		46,230		8,193		21,967		767		99,423
Allowance, ending balance	$	23,866	$	46,230	$	8,193	$	21,992	$	767	$	101,048

Loans:
Loans individually evaluated for impairment	$	8,372	$	4,161	$	292	$	5,149	$	—	$	17,974
Loans collectively evaluated for impairment		2,006,204		2,886,468		461,494		1,402,337		37,428		6,793,931
PCD loans evaluated for impairment		—		1,906		—		366		—		2,272
Loans, ending balance	$	2,014,576	$	2,892,535	$	461,786	$	1,407,852	$	37,428	$	6,814,177


	As of December 31, 2019
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Allowance:
Ending balance attributed to:
Loans individually evaluated for impairment	$	3,330	$	1,049	$	—	$	474	$	—	$	4,853
Loans collectively evaluated for impairment		14,961		20,141		3,204		10,021		568		48,895
Allowance, ending balance	$	18,291	$	21,190	$	3,204	$	10,495	$	568	$	53,748

Loans:
Loans individually evaluated for impairment	$	9,740	$	10,018	$	539	$	13,676	$	58	$	34,031
Loans collectively evaluated for impairment		1,738,615		2,781,495		400,887		1,679,397		49,776		6,650,170
PCI loans evaluated for impairment		13		1,904		435		696		—		3,048
Loans, ending balance	$	1,748,368	$	2,793,417	$	401,861	$	1,693,769	$	49,834	$	6,687,249

OREO (Tables)

12 Months Ended

Dec. 31, 2020

OREO.

Summary of OREO Balances


	As of December 31,
	2020		2019
Commercial	$	4,206	$	2,657
Residential		364		399
Other repossessed assets		1		1
Total OREO	$	4,571	$	3,057

Summary of activity related to OREO

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


	Years Ended December 31,
	2020		2019
OREO:
Beginning balance	$	3,057	$	376
Additions, transfers from loans		2,867		4,872
Additions, fair value from acquisition		—		149
Sales of OREO		(1,282)		(2,277)
Capitalized improvements		—		2
Cash payments collected		(3)		(3)
Valuation allowance for OREO		(68)		(62)
Ending balance	$	4,571	$	3,057

Premises and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2020

Premises and Equipment, net

Summary of premises and equipment, net

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


	As of December 31,
	2020		2019
Land and improvements	$	40,762	$	43,967
Buildings and improvements		130,610		134,473
Furniture and equipment		53,766		54,328
Premises and equipment, gross		225,138		232,768
Accumulated depreciation		89,947		81,501
Premises and equipment, net	$	135,191	$	151,267

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020 and 2019 is as follows (dollars in thousands):


	As of December 31,
	2020		2019
Goodwill:
Banking	$	288,436	$	288,436
Remittance Processing		8,992		8,992
Wealth Management		14,108		14,108
Total goodwill	$	311,536	$	311,536

Schedule of other intangible asset disclosures

Core deposit and customer relationship intangible assets are amortized over the estimated period benefited. Intangible asset disclosures are as follows (dollars in thousands):


	As of and for the Years Ended December 31,
	2020						2019
			Customer						Customer
	Core deposit		relationship				Core deposit		relationship
	intangible		intangible		Total		intangible		intangible		Total
Intangible assets, gross	$	90,256	$	24,608	$	114,864	$	90,256	$	24,208	$	114,464
Accumulated amortization		46,909		15,970		62,879		39,156		13,715		52,871
Intangible assets, net	$	43,347	$	8,638	$	51,985	$	51,100	$	10,493	$	61,593

Amortization expense	$	7,753	$	2,255	$	10,008	$	7,963	$	1,584	$	9,547

Schedule of carrying amount of amortized intangible assets

Future expense for the amortization of intangible assets, as estimated at December 31, 2020, is summarized in the table below for the periods presented (dollars in thousands):


			Customer
	Core deposit		relationship
Estimated amortization expense at December 31, 2020:	intangible		intangible		Total
2021	$	7,259	$	2,060	$	9,319
2022		6,749		1,797		8,546
2023		6,226		1,469		7,695
2024		5,686		1,141		6,827
2025		4,915		879		5,794
Thereafter		12,512		1,292		13,804
Total estimated amortization expense	$	43,347	$	8,638	$	51,985

Deposits (Tables)

12 Months Ended

Dec. 31, 2020

Deposits

Schedule of composition of deposits

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


	As of December 31,
	2020		2019
Demand deposits, noninterest-bearing	$	2,552,039	$	1,832,619
Interest-bearing transaction deposits		2,263,093		1,989,854
Saving deposits and money market deposits		2,743,369		2,545,073
Time deposits		1,119,348		1,534,850
Total deposits	$	8,677,849	$	7,902,396


	As of December 31,
	2020		2019
Brokered savings deposits and money market deposits	$	2,251	$	12,514
Brokered time deposits		5,257		5,498
Aggregate amount of time deposits with a minimum denomination of $100,000		568,735		854,132
Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000		192,563		297,442

Schedule of maturities of time deposits

As of December 31, 2020, the scheduled maturities of time deposits are as follows (dollars in thousands):


	As of
Scheduled maturities of time deposits:	December 31, 2020
2021	$	775,495
2022		195,906
2023		83,862
2024		48,761
2025		15,293
Thereafter		31
Total time deposits	$	1,119,348

Borrowings (Tables)

12 Months Ended

Dec. 31, 2020

Borrowings

Summary of long-term debt

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


	As of December 31,
	2020		2019
Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock	$	4,757	$	35,600
Term Loan		—		48,000
Total long-term debt	$	4,757	$	83,600

Schedule of unamortized debt issuance cost


	As of December 31,
	2020		2019
Unamortized debt issuance costs related to:
Senior notes issued in 2017	$	191	$	326
Subordinated notes issued in 2017		651		752
Subordinated notes issued in 2020		2,123		—
Total unamortized debt issuance costs	$	2,965	$	1,078

- Definition

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

+ References

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

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-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=120395691&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-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 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Regulatory Capital (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020:
Total Capital (to Risk Weighted Assets)
Consolidated	$	1,245,997	17.04	%	$	585,015	8.00	%	$	731,269	10.00	%
Busey Bank	$	1,131,875	15.50	%	$	584,082	8.00	%	$	730,103	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	983,033	13.44	%	$	438,761	6.00	%	$	585,015	8.00	%
Busey Bank	$	1,053,910	14.44	%	$	438,062	6.00	%	$	584,082	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	909,033	12.43	%	$	329,071	4.50	%	$	475,325	6.50	%
Busey Bank	$	1,053,910	14.44	%	$	328,546	4.50	%	$	474,567	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated	$	983,033	9.79	%	$	401,717	4.00	%		N/A	N/A
Busey Bank	$	1,053,910	10.52	%	$	400,581	4.00	%	$	500,727	5.00	%


									Minimum
					Minimum				To Be Well
	Actual				Capital Requirement				Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2019:
Total Capital (to Risk Weighted Assets)
Consolidated	$	1,036,143	14.03	%	$	590,826	8.00	%	$	738,532	10.00	%
Busey Bank	$	1,099,449	14.92	%	$	589,681	8.00	%	$	737,101	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	922,395	12.49	%	$	443,120	6.00	%	$	590,826	8.00	%
Busey Bank	$	1,045,701	14.19	%	$	442,261	6.00	%	$	589,681	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated	$	848,395	11.49	%	$	332,340	4.50	%	$	480,046	6.50	%
Busey Bank	$	1,045,701	14.19	%	$	331,696	4.50	%	$	479,116	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated	$	922,395	9.88	%	$	373,360	4.00	%		N/A	N/A
Busey Bank	$	1,045,701	11.19	%	$	373,639	4.00	%	$	467,049	5.00	%

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes

Schedule of the components of income taxes

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


	Years Ended December 31,
	2020		2019		2018
Current expense:
Federal	$	21,027	$	22,479	$	18,076
State		12,144		8,910		9,807
Deferred expense:
Federal		(3,657)		(380)		5,068
State		(1,652)		476		2,048
Total income tax expense	$	27,862	$	31,485	$	34,999

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


	% of Pretax Income
	Years Ended December 31,
	2020		2019		2018
Income tax at federal statutory rate	21.0	%	21.0	%	21.0	%
Effect of:
Tax-exempt interest, net	(1.6)	%	(1.7)	%	(1.3)	%
Stock incentive	0.2	%	(0.1)	%	(0.3)	%
State income taxes, net	6.5	%	5.5	%	7.3	%
Income on bank owned life insurance	(0.9)	%	(0.9)	%	(0.6)	%
Tax credit investments	(3.2)	%	(1.3)	%	—	%
Other, net	(0.3)	%	0.9	%	—	%
	21.7	%	23.4	%	26.1	%

Schedule of the deferred tax assets and liabilities


	2020		2019
Deferred tax assets:
Allowance for credit losses	$	30,332	$	15,416
Unrealized loss on cash flow hedge		871		80
Stock-based compensation		2,975		2,069
Deferred compensation		66		166
Affordable housing partnerships and other investments		—		697
Purchase accounting adjustments		4,470		11,301
Accrued vacation		610		827
Lease liabilities		2,142		2,650
Employee costs		1,598		1,048
Other		431		809
Total deferred tax assets	$	43,495	$	35,063

Deferred tax liabilities:
Unrealized gain on securities available for sale		(14,151)		(6,032)
Basis in premises and equipment		(348)		(4,222)
Affordable housing partnerships and other investments		(1,995)		(1,411)
Purchase accounting adjustments		(1,835)		(1,023)
Mortgage servicing assets		(3,418)		(3,717)
Basis in core deposit, customer intangible assets, and asset purchase goodwill		(12,714)		(17,120)
Deferred loan origination costs		(2,654)		(1,730)
Right of use assets		(2,130)		(2,633)
Unrealized gain on equity securities		(276)		(593)
Other		(405)		(508)
Total deferred tax liabilities	$	(39,926)	$	(38,989)

Net deferred tax asset (liability)	$	3,569	$	(3,926)

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

Employee Benefit Plans

Schedule of shares held in ESOP acquired after December 31, 1992 and their fair values

Shares held in the ESOP are summarized in the table below (dollars in thousands):


	As of December 31, 2020				As of December 31, 2019
	Shares		Fair Value		Shares		Fair Value
Shares held in the ESOP:
Acquired prior to December 31, 1992		—	$	—		113,866	$	3,131
Acquired after December 31, 1992		—		—		36,719		1,010
Total shares held in the ESOP		—	$	—		150,585	$	4,141

Stock-based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

Stock-based Compensation

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


	2020
					Weighted-
			Weighted-		Average
			Average		Remaining
			Exercise		Contractual		Intrinsic
	Shares		Price		Life		Value
Outstanding at beginning of year		53,185	$	22.00		5.90	$	292
Exercised		(12,956)		17.45
Forfeited		—		—
Expired		(1,144)		21.35
Outstanding at end of year		39,085	$	23.53		5.88	$	—

Exercisable at end of year		39,085	$	23.53		5.88	$	—

Summary of the changes in company restricted stock units


	2020
			Weighted-
			Average
			Grant Date
	Shares		Fair Value
Non-vested at beginning of year		778,317	$	27.27
Granted		385,893		17.26
Dividend equivalents earned		41,592		18.85
Vested		(117,641)		21.38
Forfeited		(71,123)		26.34
Non-vested at end of year		1,017,038	$	23.87

Summary of the changes in company deferred stock units


	2020
			Weighted-
			Average
			Grant Date
	Shares		Fair Value
Non-vested at beginning of year		21,261	$	26.78
Granted		33,419		17.17
Dividend equivalents earned		4,507		18.97
Vested		(24,924)		25.68
Forfeited		—		—
Non-vested at end of year		34,263	$	17.18

Outstanding at end of year		71,044	$	24.34

Transactions with Related Parties (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020 (dollars in thousands):


	2020
Balance at beginning of year	$	53,327
Change in relationship		(11,037)
New loans/advances		12,593
Repayments		(12,962)
Balance at end of year	$	41,921

Outstanding Commitments and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Outstanding Commitments and Contingent Liabilities

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

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Summary of the interest-rate swaps designated as cash flow hedges

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


	Years Ended December 31,
	2020			2019
Notional amount	$	70,000		$	70,000
Weighted average fixed pay rates		1.80	%		1.80	%
Weighted average variable 3-month LIBOR receive rates		0.22	%		1.90	%
Weighted average maturity, in years		2.85	yrs		3.86	yrs
Unrealized gains (losses), net of tax	$	(2,184)		$	(200)

Interest rate contract

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


	Years Ended December 31,
Interest rate contracts		2020		2019
Amount of gain (loss) recognized in OCI	$	(2,526)	$	(202)
Amount of (gain) loss reclassified from OCI to interest expense		542		2

Interest rate swap | Not designated as hedging

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


	Derivative Asset				Derivative Liability
	Notional		Fair		Notional		Fair
December 31, 2020	Amount		Value		Amount		Value
Interest rate swaps - pay floating, receive fixed	$	394,954	$	32,685	$	—	$	—
Interest rate swaps - pay fixed, receive floating		—		—		394,954		32,685
Derivatives not designated as hedging instruments	$	394,954	$	32,685	$	394,954	$	32,685

	Derivative Asset				Derivative Liability

	Notional		Fair		Notional		Fair
December 31, 2019	Amount		Value		Amount		Value
Interest rate swaps - pay floating, receive fixed	$	290,418	$	12,354	$	—	$	—
Interest rate swaps - pay fixed, receive floating		—		—		290,418		12,354
Derivatives not designated as hedging instruments	$	290,418	$	12,354	$	290,418	$	12,354

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

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


		Years Ended December 31,
	Location	2020		2019		2018
Interest rate swaps - pay floating, receive fixed	Non-interest expense	$	20,331	$	10,915	$	1,176
Interest rate swaps - pay fixed, receive floating	Non-interest expense		(20,331)		(10,915)		(1,176)
Net change in fair value of interest rate swaps		$	—	$	—	$	—

Interest rate lock commitments and forward sales commitments | Designated as hedging instrument

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

The following table reflects the amount and fair value of mortgage banking derivatives included in the Consolidated Balance Sheets for the periods presented (dollars in thousands):


		December 31, 2020				December 31, 2019
		Notional		Fair		Notional		Fair
Derivatives with positive fair value	Location	Amount		Value		Amount		Value
Interest rate lock commitments	Other assets	$	45,004	$	1,201	$	67,965	$	1,032
Forward sales commitments	Other assets		978		32		1,773		14
Mortgage banking derivatives recorded in other assets		$	45,982	$	1,233	$	69,738	$	1,046

Derivatives with negative fair value
Interest rate lock commitments	Other liabilities	$	118	$	1	$	1,114	$	11
Forward sales commitments	Other liabilities		84,964		2,662		133,482		2,176
Mortgage banking derivatives recorded in other liabilities		$	85,082	$	2,663	$	134,596	$	2,187

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

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


		Years Ended December 31,
	Location	2020		2019		2018
Interest rate lock commitments	Mortgage revenue	$	9,667	$	3,988	$	1,757
Forward sales commitments	Mortgage revenue		(18,329)		(6,751)		(3,110)
Net gains (losses)		$	(8,662)	$	(2,763)	$	(1,353)

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Measurements

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


	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
December 31, 2020
Debt securities available for sale
U.S. Treasury securities	$	—	$	27,837	$	—	$	27,837
Obligations of U.S. government corporations and agencies		—		69,519		—		69,519
Obligations of states and political subdivisions		—		304,711		—		304,711
Commercial mortgage-backed securities		—		418,616		—		418,616
Residential mortgage-backed securities		—		1,368,315		—		1,368,315
Corporate debt securities		—		72,189		—		72,189
Equity securities		—		5,530		—		5,530
Loans held for sale		—		42,813		—		42,813
Derivative assets		—		33,918		—		33,918
Derivative liabilities		—		38,403		—		38,403


	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
December 31, 2019
Debt securities available for sale
U.S. Treasury securities	$	—	$	51,737	$	—	$	51,737
Obligations of U.S. government corporations and agencies		—		163,000		—		163,000
Obligations of states and political subdivisions		—		268,291		—		268,291
Commercial mortgage-backed securities		—		139,287		—		139,287
Residential mortgage-backed securities		—		921,966		—		921,966
Corporate debt securities		—		103,976		—		103,976
Equity securities		—		5,952		—		5,952
Loans held for sale		—		68,699		—		68,699
Derivative assets		—		13,400		—		13,400
Derivative liabilities		—		14,821		—		14,821

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, 2020
Loans evaluated individually	$	—	$	—	$	2,771	$	2,771
OREO		—		—		106		106
Bank property held for sale		—		—		10,676		10,676

December 31, 2019
Loans evaluated individually	$	—	$	—	$	2,686	$	2,686
OREO		—		—		55		55
Bank property held for sale		—		—		4,004		4,004

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, 2020

Loans evaluated individually

2,771

Appraisal of collateral

Appraisal adjustments

-30.0% to -100% (-37.0)%

OREO

106

Appraisal of collateral

Appraisal adjustments

-25.0% to -100% (-54.5)%

Bank property held for sale

10,676

Appraisal of collateral or real estate listing price

Appraisal adjustments

-6.2% to -64.9% (-42.8)%

December 31, 2019

Loans evaluated individually

2,686

Appraisal of collateral

Appraisal adjustments

-2.9% to -100% (-57.8)%

OREO

Appraisal of collateral

Appraisal adjustments

-25.0% to -100% (-65.0)%

Bank property held for sale

4,004

Appraisal of collateral or real estate listing price

Appraisal adjustments

-6.2% to -71.3% (-40.7)%

Schedule of estimated fair values of financial instruments


	December 31, 2020				December 31, 2019
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Level 1 inputs:
Cash and cash equivalents	$	688,537	$	688,537	$	529,288	$	529,288
Level 2 inputs:
Accrued interest receivable		33,240		33,240		27,109		27,109
Level 3 inputs:
Portfolio loans, net		6,713,129		6,755,425		6,633,501		6,648,560
Mortgage servicing rights		10,912		11,107		12,326		18,193
Other servicing rights		1,434		1,966		1,071		1,740

Financial liabilities:
Level 2 inputs:
Time deposits	$	1,119,348	$	1,132,107	$	1,534,850	$	1,538,597
Securities sold under agreements to repurchase		175,614		175,614		205,491		205,491
Short-term borrowings		4,658		4,661		8,551		8,552
Long-term debt		4,757		5,014		83,600		83,614
Junior subordinated debt owed to unconsolidated trusts		71,468		59,943		71,308		74,153
Accrued interest payable		3,401		3,401		5,000		5,000
Level 3 inputs:
Senior notes, net of unamortized issuance costs		39,809		40,104		39,674		40,099
Subordinated notes, net of unamortized issuance costs		182,226		187,697		59,248		61,514

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2020

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):



	Years Ended December 31,
	2020		2019		2018
Net income	$	100,344	$	102,953	$	98,928

Shares:
Weighted average common shares outstanding		54,567,429		54,851,652		48,854,330
Dilutive effect of outstanding options, warrants, and restricted stock units as determined by the application of the treasury stock method		259,510		280,842		361,125
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation		54,826,939		55,132,494		49,215,455

Basic earnings per common share	$	1.84	$	1.88	$	2.02

Diluted earnings per common share	$	1.83	$	1.87	$	2.01

Common stock equivalents excluded from the earning per common share calculations because their effect would have been anti-dilutive		206,355		201,029		363,849

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2020

Accumulated Other Comprehensive Income (Loss).

Accumulated Other Comprehensive Income (Loss)

The following table represents changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods below (dollars in thousands):


	Year Ended December 31, 2020
		Before Tax		Tax Effect		Net of Tax
Unrealized gains (losses) on debt securities available for sale:
Balance at beginning of period	$	21,192	$	(6,032)	$	15,160
Unrealized holding gains (losses) on debt securities available for sale, net		30,176		(8,615)		21,561
Amounts reclassified from accumulated other comprehensive income, net		(1,724)		496		(1,228)
Balance at end of period	$	49,644	$	(14,151)	$	35,493

Unrealized gains (losses) on cash flow hedges:
Balance at beginning of period		(280)		80		(200)
Unrealized holding gains (losses) on cash flow hedges, net		(3,533)		1,007		(2,526)
Amounts reclassified from accumulated other comprehensive income, net		758		(216)		542
Balance at end of period	$	(3,055)	$	871	$	(2,184)
Total accumulated other comprehensive income (loss)	$	46,589	$	(13,280)	$	33,309


	Year Ended December 31, 2019
		Before Tax		Tax Effect		Net of Tax
Unrealized gains (losses) on debt securities available for sale:
Balance at beginning of period	$	(9,528)	$	2,716	$	(6,812)
Unrealized holding gains (losses) on debt securities available for sale, net		26,430		(7,525)		18,905
Unrealized losses on debt securities transferred from held to maturity to available for sale		5,023		(1,433)		3,590
Amounts reclassified from accumulated other comprehensive income, net		(733)		210		(523)
Balance at end of period	$	21,192	$	(6,032)	$	15,160

Unrealized gains (losses) on cash flow hedges:
Balance at beginning of period		—		—		—
Unrealized holding gains (losses) on cash flow hedges, net		(283)		81		(202)
Amounts reclassified from accumulated other comprehensive income, net		3		(1)		2
Balance at end of period	$	(280)	$	80	$	(200)
Total accumulated other comprehensive income (loss)	$	20,912	$	(5,952)	$	14,960


	Year Ended December 31, 2018
		Before Tax		Tax Effect		Net of Tax
Unrealized gains (losses) on debt securities available for sale:
Balance at beginning of period	$	(4,777)	$	1,967	$	(2,810)
Unrealized holding gains (losses) on debt securities available for sale, net		(6,531)		1,861		(4,670)
Amounts reclassified from accumulated other comprehensive income, net		1,780		(507)		1,273
Tax Cuts and Jobs Act of 2017 reclassification		—		(605)		(605)
Balance at end of period	$	(9,528)	$	2,716	$	(6,812)

Total accumulated other comprehensive income (loss)	$	(9,528)	$	2,716	$	(6,812)

Operating Segments and Related Information (Tables)

12 Months Ended

Dec. 31, 2020

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,				As of December 31,
	2020		2019		2020		2019
Banking	$	288,436	$	288,436	$	10,462,673	$	9,632,368
Remittance Processing		8,992		8,992		46,553		44,209
Wealth Management		14,108		14,108		46,504		32,760
Other		—		—		(11,683)		(13,608)
Totals	$	311,536	$	311,536	$	10,544,047	$	9,695,729


	Years Ended December 31,
	2020		2019		2018
Net interest income:
Banking	$	294,728	$	296,754	$	248,291
Remittance Processing		79		76		67
Wealth Management		—		—		327
Other		(11,872)		(9,607)		(7,279)
Total net interest income	$	282,935	$	287,223	$	241,406

Non-interest income:
Banking	$	61,043	$	63,613	$	43,197
Remittance Processing		16,548		16,450		15,876
Wealth Management		43,429		39,075		31,621
Other		(2,755)		(2,723)		(701)
Total non-interest income	$	118,265	$	116,415	$	89,993

Non-interest expense:
Banking	$	185,445	$	211,559	$	154,455
Remittance Processing		13,279		10,990		10,749
Wealth Management		26,086		24,534		19,283
Other		9,387		11,711		8,556
Total non-interest expense	$	234,197	$	258,794	$	193,043

Income before income taxes:
Banking	$	131,529	$	138,401	$	132,604
Remittance Processing		3,348		5,536		5,194
Wealth Management		17,343		14,541		12,665
Other		(24,014)		(24,040)		(16,536)
Total income before income taxes	$	128,206	$	134,438	$	133,927

Net income:
Banking	$	101,226	$	106,409	$	97,369
Remittance Processing		2,372		4,060		3,710
Wealth Management		13,181		11,135		9,372
Other		(16,435)		(18,651)		(11,523)
Total net income	$	100,344	$	102,953	$	98,928

Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases

Schedule of lease costs and other lease information

The following tables represents lease costs and other lease information for the periods presented (dollars in thousands):


	Years Ended December 31,
Lease Costs	2020			2019
Operating lease costs	$	2,524		$	2,364
Variable lease costs		416			432
Short-term lease costs		35			84
Sublease income		—			—
Net lease cost	$	2,975		$	2,880

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments	$	2,526		$	2,296
Operating lease cash flows – Liability reduction		2,289			2,010
Right of use assets obtained during the period in exchange for operating lease liabilities		743			923
Weighted average lease term (in years)		5.93			7.20
Weighted average discount rate		2.82	%		3.08	%

Schedule of future undiscounted lease payments

Future undiscounted lease payments with initial terms of one year or more as of December 31, 2020, are as follows (dollars in thousands):


	As of
	December 31,
	2020
2021	$	1,983
2022		1,555
2023		1,358
2024		957
2025		840
Thereafter		1,792
Amounts representing interest		(728)
Present value of net future minimum lease payments	$	7,757

Parent Company Only Financial Information (Tables) - Parent

12 Months Ended

Dec. 31, 2020

Parent Company Only Financial Information

Balance Sheets

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

BALANCE SHEETS


	As of December 31,
	2020		2019
Assets
Cash and cash equivalents	$	129,183	$	14,952
Equity securities		5,530		5,923
Investments in subsidiaries:
Bank		1,417,130		1,417,941
Non-bank		2,746		806
Premises and equipment, net		51		68
Other assets		21,664		13,873
Total assets	$	1,576,304	$	1,453,563

Liabilities and Stockholders' Equity
Liabilities:
Short-term borrowings	$	—	$	6,000
Long-term debt		—		48,000
Senior notes, net of unamortized issuance costs		39,809		39,674
Subordinated notes, net of unamortized issuance costs		182,226		59,248
Junior subordinated debentures owed to unconsolidated trusts		71,468		71,308
Other liabilities		12,732		8,899
Total liabilities		306,235		233,129

Total stockholders' equity		1,270,069		1,220,434
Total liabilities and stockholders' equity	$	1,576,304	$	1,453,563

Statements of Income


	Years Ended December 31,
	2020		2019		2018
Operating income:
Dividends from subsidiaries:
Bank	$	122,000	$	70,000	$	—
Non-bank		—		—		17,000
Interest income		154		441		747
Gain (loss) on equity securities		(393)		(759)		2,322
Other income		10,083		10,224		8,096
Total operating income		131,844		79,906		28,165

Expense:
Salaries, wages, and employee benefits		16,205		15,288		13,624
Interest expense		12,056		10,054		8,026
Operating expense		7,685		8,960		6,051
Total expense		35,946		34,302		27,701

Income (loss) before income tax benefit and equity in undistributed (in excess of) net income of subsidiaries		95,898		45,604		464
Income tax benefit		7,727		5,389		5,013
Income (loss) before equity in undistributed (in excess of) net income of subsidiaries		103,625		50,993		5,477

Equity in undistributed (in excess of) net income of subsidiaries:
Bank		(5,221)		51,604		103,309
Non-bank		1,940		356		(9,858)
Net income	$	100,344	$	102,953	$	98,928

Statements of Cash Flows


	Years Ended December 31,
	2020		2019		2018
Cash Flows Provided by (Used in) Operating Activities
Net income	$	100,344	$	102,953	$	98,928
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		648		420		232
Distributions more (less) than net income of subsidiaries		3,281		(51,961)		(93,451)
Change in fair value of equity securities, net		393		759		(2,322)
Stock-based compensation		7,135		3,997		3,721
Changes in assets and liabilities:
(Increase) decrease in other assets		405		(4,279)		13,985
Increase (decrease) in other liabilities		(5,772)		(1,280)		1,341
Net cash provided by (used in) operating activities		106,434		50,609		22,434

Cash Flows Provided by (Used in) Investing Activities
Purchases of equity securities		—		(520)		—
Net cash paid for business acquisition		—		(90,722)		—
Purchases of premises and equipment		(19)		(31)		(46)
Net cash provided by (used in) investing activities		(19)		(91,273)		(46)

Cash Flows Provided by (Used in) Financing Activities
Proceeds from charter amendment with subsidiary bank		—		—		40,000
Cash paid for withholding taxes on stock-based payments		(635)		(863)		(817)
Cash dividends paid		(48,012)		(45,171)		(39,010)
Repayments of borrowings		(74,000)		(6,000)		(5,500)
Proceeds from issuance of debt		142,634		60,000		—
Proceeds from stock options exercised		101		169		—
Purchase of treasury stock		(12,272)		(24,292)		—
Common stock issuance costs		—		(234)		—
Net cash provided (used in) by financing activities		7,816		(16,391)		(5,327)

Net increase (decrease) in cash and cash equivalents		114,231		(57,055)		17,061
Cash and cash equivalents, beginning of period		14,952		72,007		54,946

Cash and cash equivalents, ending of period	$	129,183	$	14,952	$	72,007

Significant Accounting Policies - Impacts of COVID-19 (Details) - USD ($) $ in Millions		12 Months Ended
	Jun. 01, 2020	Dec. 31, 2020
Paycheck Protection Program
Paycheck Protection Program ("PPP")
Loans outstanding		$ 451.5
Amortized cost of the loans outstanding		446.4
Loans outstanding, fees received		25.4
Incurred incremental direct origination costs		5.1
Net interest income for fees, net of deferred cost		$ 15.2
Percentage of remaining loan maintains government guarantee		100.00%
Borrower loan forgiveness		$ 287.8
Forgiveness application amount		$ 167.4
5.25% fixed-to-floating rate notes due 2030 \| Subordinated debt
Impacts of COVID-19
Proceeds from public offering	$ 125.0

Significant Accounting Policies - Narrative (Details) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($) segment shares	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Trust assets
Assets under care		$ 10,200.0	$ 9,700.0
Allowance-debt securities available for sale
Accrued interest receivable for debt securities available for sale debt		6.8
Loan servicing and portfolio loans
Unpaid principal balances of loans serviced		2,200.0
Impairment charges		0.6	0.0
Goodwill
Goodwill impairment		0.0	0.0
Other asset investments
Carrying value of VIE		37.1
Cash surrender value of bank owned life insurance
Accrued liability		5.6	5.7
Income taxes
Valuation allowance		0.0	0.0
Accruals for payments of interest and penalties		0.0	0.0
Stock-based employee compensation
Compensation expense recognized		$ 7.1	$ 3.8	$ 3.5
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
Restricted stock unit
Stock-based employee compensation
Number of shares of common stock per award \| shares		1
Restricted stock unit \| Minimum
Stock-based employee compensation
Requisite service periods		1 year
Restricted stock unit \| Maximum
Stock-based employee compensation
Requisite service periods		5 years
Deferred stock units
Stock-based employee compensation
Number of shares of common stock per award \| shares		1
Requisite service periods		30 days
Vesting period		1 year
Performance based restricted stock unit
Stock-based employee compensation
Number of shares of common stock per award \| shares		1
Compensation expense recognized	$ 0.3

Significant Accounting Policies - Off-balance Sheet Arrangements (Details) - Standby letters of credit - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Obligation with Joint and Several Liability Arrangement [Line Items]
Term of debt instrument	1 year
Liabilities for potential obligations	$ 7.3	$ 0.0

Significant Accounting Policies - Impact of new financial accounting standards (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Recently Issued Accounting Standards
Stockholders' Equity Attributable to Parent	$ 1,270,069		$ 1,220,434	$ 994,964	$ 935,003
Right of use asset	7,714		9,490
Lease liabilities	7,757		9,552
Retained Earnings (Accumulated Deficit)	$ 20,830		(14,813)
Cumulative Effect, Period of Adoption, Adjustment
Recently Issued Accounting Standards
Stockholders' Equity Attributable to Parent			$ (15,922)
Retained Earnings (Accumulated Deficit)		$ (15,900)
Cumulative Effect, Period of Adoption, Adjustment \| Allowance for credit losses on loans
Recently Issued Accounting Standards
Retained Earnings (Accumulated Deficit)		12,000
Cumulative Effect, Period of Adoption, Adjustment \| Reserve for off-balance-sheet credit exposures
Recently Issued Accounting Standards
Retained Earnings (Accumulated Deficit)		$ 3,900

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

Significant Accounting Policies - Impact of Topic 326 (Details) - Accounting Standards Update 2016-13 $ in Thousands	Jan. 01, 2020 USD ($)
Assets
Portfolio Loans, allowance for loan losses (in dollars)	$ 53,748
Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Portfolio Loans, allowance for loan losses (in dollars)	70,581
Liabilities
Reserve for off-balance-sheet credit exposures	5,492
Cumulative Effect, Period of Adoption, Adjustment
Assets
Portfolio Loans, allowance for loan losses (in dollars)	16,833
Liabilities
Reserve for off-balance-sheet credit exposures	5,492
Commercial Loans
Assets
Portfolio Loans, allowance for loan losses (in dollars)	18,291
Commercial Loans \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Portfolio Loans, allowance for loan losses (in dollars)	19,006
Commercial Loans \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Portfolio Loans, allowance for loan losses (in dollars)	715
Commercial Real Estate Loans
Assets
Portfolio Loans, allowance for loan losses (in dollars)	21,190
Commercial Real Estate Loans \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Portfolio Loans, allowance for loan losses (in dollars)	30,496
Commercial Real Estate Loans \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Portfolio Loans, allowance for loan losses (in dollars)	9,306
Real Estate Construction
Assets
Portfolio Loans, allowance for loan losses (in dollars)	3,204
Real Estate Construction \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Portfolio Loans, allowance for loan losses (in dollars)	6,158
Real Estate Construction \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Portfolio Loans, allowance for loan losses (in dollars)	2,954
Retail Real Estate
Assets
Portfolio Loans, allowance for loan losses (in dollars)	10,495
Retail Real Estate \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Portfolio Loans, allowance for loan losses (in dollars)	13,787
Retail Real Estate \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Portfolio Loans, allowance for loan losses (in dollars)	3,292
Retail Other
Assets
Portfolio Loans, allowance for loan losses (in dollars)	568
Retail Other \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Portfolio Loans, allowance for loan losses (in dollars)	1,134
Retail Other \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Portfolio Loans, allowance for loan losses (in dollars)	$ 566

Acquisitions - The Banc Ed Corp. and Cummins-American Corp. (Details) $ / shares in Units, $ in Thousands, shares in Millions				12 Months Ended
	Jan. 19, 2021 USD ($) $ / shares	Mar. 31, 2019 USD ($)	Jan. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($) $ / shares	Dec. 31, 2018 USD ($) $ / shares	Jan. 15, 2021 $ / shares
Consideration paid
Goodwill				$ 311,536	$ 311,536
GSB \| Forecast
Merger agreement
Special cash dividend	$ 60,000
CAC \| Forecast
Merger agreement
Special cash dividend	$ 60,000
Non-interest expense
Merger agreement
Business acquisition expenses				500
Pre-tax acquisition expenses				500
Banc Ed
Merger agreement
Share consideration conversion ratio			8.2067
Per share cash consideration entitled (in dollars per share) \| $ / shares			$ 111.53
Number of common shares issued for acquisition \| shares			6.7
Market value of common stock issued			$ 166,500
Business acquisition share price \| $ / shares			$ 24.76
Adjustments to the fair value assigned to various assets and liabilities		$ 5,200
Reversal of a deferred tax liability				4,600
Transaction costs				2,300
Aggregate cash consideration			$ 91,400
Transaction Value			166,500
Assets acquired:
Cash and cash equivalents			42,013
Securities			692,716
Loans held for sale			2,157
Portfolio loans			873,336
Premises and equipment			32,156
Other intangible assets			32,617
Mortgage servicing rights			6,946
Other assets			57,332
Total assets acquired			1,739,273
Liabilities assumed:
Deposits			1,439,203
Other borrowings			63,439
Other liabilities			20,153
Total liabilities assumed			1,522,795
Net assets acquired			216,478
Consideration paid
Cash			91,400
Common stock			166,515
Total consideration paid			257,915
Goodwill			$ 41,437
Banc Ed \| Pro Forma
Consideration paid
Total revenues (net interest income plus non-interest income)					409,324	$ 411,633
Net income					$ 113,640	$ 118,361
Diluted earnings per common share (in dollars per share) \| $ / shares					$ 2.03	$ 2.15
Banc Ed \| Non-interest expense
Merger agreement
Business acquisition expenses					$ 13,700	$ 400
Pre-tax acquisition expenses					13,700	$ 400
IST \| Non-interest expense
Merger agreement
Business acquisition expenses				400	900
Pre-tax acquisition expenses				400	$ 900
CAC
Merger agreement
Business acquisition expenses				500
Pre-tax acquisition expenses				$ 500
CAC \| Forecast
Merger agreement
Share consideration conversion ratio	444.4783
Per share cash consideration entitled (in dollars per share) \| $ / shares	$ 27,969.67
Market value of common stock issued	$ 190,800
Business acquisition share price \| $ / shares	$ 38,432.69
Common stock Cash consideration	73.00%
Common stock share consideration	27.00%
Share price \| $ / shares							$ 23.54
Transaction Value	$ 190,800

Debt securities - General Disclosures (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) security shares	Dec. 31, 2019 USD ($) security shares	Dec. 31, 2018 USD ($)
Debt Securities
Equity securities consisting of common stock and money market mutual funds, fair value	$ 5,530	$ 5,952
Unrealized gains (losses) recognized on equity securities	(393)	(759)	$ 2,162
Debt securities available for sale
Amortized Cost	2,211,543	1,627,065
Gross Unrealized Gains	50,317	22,021
Gross Unrealized Losses	(673)	(829)
Fair Value	2,261,187	1,648,257
Debt securities available for sale, Amortized Cost
Due in one year or less	121,208
Due after one year through five years	239,021
Due after five years through ten years	256,485
Due after ten years	1,594,829
Amortized Cost	2,211,543	1,627,065
Debt securities available for sale, Fair Value
Due in one year or less	122,213
Due after one year through five years	247,833
Due after five years through ten years	267,859
Due after ten years	1,623,282
Fair Value	2,261,187	1,648,257
Realized gains and losses related to sales and calls of securities AFS
Gross security gains	1,732	1,318
Gross security (losses)	(8)	(585)	(1,780)
Net gains (losses) on sales of securities	1,724	733	$ (1,780)
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	221,913	122,991
Continuous unrealized losses existing for greater than 12 months, gross	5,096	53,851
Total, gross	227,009	176,842
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(621)	(448)
Continuous unrealized losses existing greater than 12 months, gross	(52)	(381)
Total, gross	$ (673)	$ (829)
Debt security portfolio \| shares	1,114	1,178
Number of securities in unrealized loss position \| security	23	55
Securities in unrealized loss position as a percentage of aggregate carrying value of investments	0.30%	0.47%
Collateral
Realized gains and losses related to sales and calls of securities AFS
Carrying amount of investment securities pledged as collateral	$ 628,000	$ 704,700
U.S. Treasury securities
Debt securities available for sale
Amortized Cost	27,481	51,472
Gross Unrealized Gains	356	265
Fair Value	27,837	51,737
Debt securities available for sale, Amortized Cost
Amortized Cost	27,481	51,472
Debt securities available for sale, Fair Value
Fair Value	27,837	51,737
Obligations of U.S. government corporations and agencies
Debt securities available for sale
Amortized Cost	67,406	160,364
Gross Unrealized Gains	2,162	2,684
Gross Unrealized Losses	(49)	(48)
Fair Value	69,519	163,000
Debt securities available for sale, Amortized Cost
Amortized Cost	67,406	160,364
Debt securities available for sale, Fair Value
Fair Value	69,519	163,000
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross		6,362
Continuous unrealized losses existing for greater than 12 months, gross	4,957
Total, gross	4,957	6,362
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross		(48)
Continuous unrealized losses existing greater than 12 months, gross	(49)
Total, gross	(49)	(48)
Obligations of states and political subdivisions
Debt securities available for sale
Amortized Cost	292,940	262,492
Gross Unrealized Gains	11,779	5,810
Gross Unrealized Losses	(8)	(11)
Fair Value	304,711	268,291
Debt securities available for sale, Amortized Cost
Amortized Cost	292,940	262,492
Debt securities available for sale, Fair Value
Fair Value	304,711	268,291
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	762	4,981
Continuous unrealized losses existing for greater than 12 months, gross		1,548
Total, gross	762	6,529
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(8)	(11)
Total, gross	(8)	(11)
Obligations of states and political subdivisions \| Maximum
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing greater than 12 months, gross		(1)
Commercial mortgage-backed securities
Debt securities available for sale
Amortized Cost	408,716	137,733
Gross Unrealized Gains	10,212	1,700
Gross Unrealized Losses	(312)	(146)
Fair Value	418,616	139,287
Debt securities available for sale, Amortized Cost
Amortized Cost	408,716	137,733
Debt securities available for sale, Fair Value
Fair Value	418,616	139,287
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	129,655	33,322
Continuous unrealized losses existing for greater than 12 months, gross		2,044
Total, gross	129,655	35,366
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(312)	(144)
Continuous unrealized losses existing greater than 12 months, gross		(2)
Total, gross	(312)	(146)
Residential mortgage-backed securities
Debt securities available for sale
Amortized Cost	1,344,047	912,308
Gross Unrealized Gains	24,571	10,282
Gross Unrealized Losses	(303)	(624)
Fair Value	1,368,315	921,966
Debt securities available for sale, Amortized Cost
Amortized Cost	1,344,047	912,308
Debt securities available for sale, Fair Value
Fair Value	1,368,315	921,966
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	89,997	78,326
Continuous unrealized losses existing for greater than 12 months, gross	139	50,259
Total, gross	90,136	128,585
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(300)	(245)
Continuous unrealized losses existing greater than 12 months, gross	(3)	(379)
Total, gross	(303)	(624)
Corporate debt securities
Debt securities available for sale
Amortized Cost	70,953	102,696
Gross Unrealized Gains	1,237	1,280
Gross Unrealized Losses	(1)
Fair Value	72,189	103,976
Debt securities available for sale, Amortized Cost
Amortized Cost	70,953	102,696
Debt securities available for sale, Fair Value
Fair Value	72,189	$ 103,976
Debt securities available for sale, Fair Value
Continuous unrealized losses existing for less than 12 months, gross	1,499
Total, gross	1,499
Debt securities available for sale, Unrealized Losses
Continuous unrealized losses existing for less than 12 months, gross	(1)
Total, gross	$ (1)

Portfolio loans and allowance for credit losses- Distribution of portfolio loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Distributions of portfolio loans
Portfolio loans	$ 6,814,177	$ 6,687,249
Allowance for loan losses	(101,048)	(53,748)	$ (50,648)	$ (53,582)
Portfolio loans, net	6,713,129	6,633,501
Net deferred loan origination costs	2,400	6,200
Net accretable purchase accounting adjustments	10,900	20,200
Commercial Loans
Distributions of portfolio loans
Portfolio loans	2,014,576	1,748,368
Allowance for loan losses	(23,866)	(18,291)	(17,829)	(14,779)
Commercial Real Estate Loans
Distributions of portfolio loans
Portfolio loans	2,892,535	2,793,417
Allowance for loan losses	(46,230)	(21,190)	(21,137)	(21,813)
Real Estate Construction
Distributions of portfolio loans
Portfolio loans	461,786	401,861
Allowance for loan losses	(8,193)	(3,204)	(2,723)	(2,861)
Retail Real Estate
Distributions of portfolio loans
Portfolio loans	1,407,852	1,693,769
Allowance for loan losses	(21,992)	(10,495)	(8,471)	(13,783)
Retail Other
Distributions of portfolio loans
Portfolio loans	37,428	49,834
Allowance for loan losses	(767)	$ (568)	$ (488)	$ (346)
Paycheck Protection Program
Distributions of portfolio loans
Amortized cost of the loans outstanding	$ 446,400

Portfolio loans and allowance for credit losses - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) loan	Dec. 31, 2019 USD ($) item contract	Dec. 31, 2018 USD ($)
Distributions of portfolio loans
Gross interest income that would have been recorded if impaired loans had been current	$ 1,800	$ 2,300	$ 1,700
TDRs subsequently classified as non-performing and had payment defaults \| loan	0
Commercial Loans
Distributions of portfolio loans
Number of commercial loans in deferral \| loan	98
Amount of loan in deferrals	$ 208,600
Personal Loan
Distributions of portfolio loans
Number of commercial loans in deferral \| loan	351
Amount of loan in deferrals	$ 47,700
Home Equity Loan
Distributions of portfolio loans
Number of commercial loans in deferral \| loan	1
Amount of loan in deferrals	$ 100
Commercial Loans
Distributions of portfolio loans
Performing loans classified as TDRs \| loan	3
Commercial Real Estate Loans
Distributions of portfolio loans
TDRs subsequently classified as non-performing and had payment defaults \| contract		1
Maximum \| Commercial Real Estate Loans
Distributions of portfolio loans
Limit where loans are processed through an expedited underwriting process	$ 1,000
Watch \| Commercial Loans
Distributions of portfolio loans
Limit above which loans are annually reviewed	1,000
Special Mention
Distributions of portfolio loans
Limit above which loans are annually reviewed	350
In compliance with modified terms \| Retail Real Estate
Distributions of portfolio loans
Number of retail real estate modifications \| item		1
Loans classified as a TDR	$ 800	$ 300

Portfolio loans and allowance for credit losses - Summary of risk grades segregated by category (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Loans
Portfolio loans	$ 6,814,177	$ 6,687,249
Pass
Loans
Portfolio loans	6,016,748	5,997,126
Watch
Loans
Portfolio loans	554,970	413,876
Special Mention
Loans
Portfolio loans	150,481	181,107
Substandard
Loans
Portfolio loans	69,048	75,215
Substandard Non-accrual
Loans
Portfolio loans	22,930	27,896
Commercial
Loans
Portfolio loans	2,014,576
Commercial \| Pass
Loans
Portfolio loans	1,768,755	1,458,416
Commercial \| Watch
Loans
Portfolio loans	136,948	172,526
Commercial \| Special Mention
Loans
Portfolio loans	72,447	66,337
Commercial \| Substandard
Loans
Portfolio loans	27,903	41,273
Commercial \| Substandard Non-accrual
Loans
Portfolio loans	8,523	9,096
Commercial real estate
Loans
Portfolio loans	2,892,535
Commercial real estate \| Pass
Loans
Portfolio loans	2,393,372	2,477,398
Commercial real estate \| Watch
Loans
Portfolio loans	383,277	186,963
Commercial real estate \| Special Mention
Loans
Portfolio loans	75,486	105,487
Commercial real estate \| Substandard
Loans
Portfolio loans	34,897	26,204
Commercial real estate \| Substandard Non-accrual
Loans
Portfolio loans	5,503	9,178
Real estate construction
Loans
Portfolio loans	461,786
Real estate construction \| Pass
Loans
Portfolio loans	434,681	351,923
Real estate construction \| Watch
Loans
Portfolio loans	24,481	45,262
Real estate construction \| Special Mention
Loans
Portfolio loans	77	3,928
Real estate construction \| Substandard
Loans
Portfolio loans	2,546	737
Real estate construction \| Substandard Non-accrual
Loans
Portfolio loans	1	630
Retail Real Estate
Loans
Portfolio loans	1,407,852
Retail Real Estate \| Pass
Loans
Portfolio loans	1,382,616	1,661,691
Retail Real Estate \| Watch
Loans
Portfolio loans	10,264	9,125
Retail Real Estate \| Special Mention
Loans
Portfolio loans	2,471	5,355
Retail Real Estate \| Substandard
Loans
Portfolio loans	3,702	7,001
Retail Real Estate \| Substandard Non-accrual
Loans
Portfolio loans	8,799	8,935
Retail Other
Loans
Portfolio loans	37,428
Retail Other \| Pass
Loans
Portfolio loans	37,324	47,698
Retail Other \| Substandard Non-accrual
Loans
Portfolio loans	104	57
Commercial Loans
Loans
Portfolio loans	2,014,576	1,748,368
Commercial Real Estate Loans
Loans
Portfolio loans	2,892,535	2,793,417
Real Estate Construction
Loans
Portfolio loans	461,786	401,861
Retail Real Estate
Loans
Portfolio loans	1,407,852	1,693,769
Retail Other
Loans
Portfolio loans	$ 37,428	$ 49,834

Portfolio loans and allowance for credit losses - Risk grades of portfolio loans by origination year (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Loans
Ending balance	$ 6,814,177	$ 6,687,249
Pass
Loans
Ending balance	6,016,748	5,997,126
Watch
Loans
Ending balance	554,970	413,876
Special Mention
Loans
Ending balance	150,481	181,107
Substandard
Loans
Ending balance	69,048	75,215
Substandard Non-accrual
Loans
Ending balance	22,930	27,896
Commercial
Loans
2020	843,404
2019	190,061
2018	127,410
2017	118,185
2016	72,647
Prior	105,947
Revolving loans	556,922
Ending balance	2,014,576
Commercial \| Pass
Loans
2020	812,536
2019	158,307
2018	107,565
2017	93,190
2016	61,847
Prior	79,970
Revolving loans	455,340
Ending balance	1,768,755	1,458,416
Commercial \| Watch
Loans
2020	16,544
2019	22,247
2018	14,954
2017	13,724
2016	2,577
Prior	10,943
Revolving loans	55,959
Ending balance	136,948	172,526
Commercial \| Special Mention
Loans
2020	6,402
2019	2,671
2018	2,069
2017	7,164
2016	6,763
Prior	13,733
Revolving loans	33,645
Ending balance	72,447	66,337
Commercial \| Substandard
Loans
2020	7,772
2019	3,791
2018	2,371
2017	1,939
2016	819
Prior	1,233
Revolving loans	9,978
Ending balance	27,903	41,273
Commercial \| Substandard Non-accrual
Loans
2020	150
2019	3,045
2018	451
2017	2,168
2016	641
Prior	68
Revolving loans	2,000
Ending balance	8,523	9,096
Commercial real estate
Loans
2020	840,882
2019	628,303
2018	463,787
2017	437,776
2016	222,941
Prior	278,923
Revolving loans	19,923
Ending balance	2,892,535
Commercial real estate \| Pass
Loans
2020	717,559
2019	503,977
2018	360,573
2017	384,843
2016	180,555
Prior	227,068
Revolving loans	18,797
Ending balance	2,393,372	2,477,398
Commercial real estate \| Watch
Loans
2020	88,297
2019	110,526
2018	90,412
2017	33,734
2016	32,887
Prior	27,023
Revolving loans	398
Ending balance	383,277	186,963
Commercial real estate \| Special Mention
Loans
2020	16,490
2019	8,858
2018	10,490
2017	10,505
2016	7,102
Prior	21,808
Revolving loans	233
Ending balance	75,486	105,487
Commercial real estate \| Substandard
Loans
2020	17,445
2019	4,166
2018	1,491
2017	7,812
2016	2,111
Prior	1,377
Revolving loans	495
Ending balance	34,897	26,204
Commercial real estate \| Substandard Non-accrual
Loans
2020	1,091
2019	776
2018	821
2017	882
2016	286
Prior	1,647
Ending balance	5,503	9,178
Real estate construction
Loans
2020	200,184
2019	175,330
2018	64,362
2017	3,306
2016	1,071
Prior	1,445
Revolving loans	16,088
Ending balance	461,786
Real estate construction \| Pass
Loans
2020	179,232
2019	171,663
2018	64,025
2017	1,468
2016	761
Prior	1,444
Revolving loans	16,088
Ending balance	434,681	351,923
Real estate construction \| Watch
Loans
2020	18,485
2019	3,657
2018	337
2017	1,838
2016	164
Ending balance	24,481	45,262
Real estate construction \| Special Mention
Loans
2020	67
2019	10
Ending balance	77	3,928
Real estate construction \| Substandard
Loans
2020	2,400
2016	146
Ending balance	2,546	737
Real estate construction \| Substandard Non-accrual
Loans
Prior	1
Ending balance	1	630
Retail Real Estate
Loans
2020	324,112
2019	164,938
2018	137,163
2017	137,949
2016	144,101
Prior	263,826
Revolving loans	235,763
Ending balance	1,407,852
Retail Real Estate \| Pass
Loans
2020	319,302
2019	162,711
2018	135,065
2017	136,427
2016	140,600
Prior	257,147
Revolving loans	231,364
Ending balance	1,382,616	1,661,691
Retail Real Estate \| Watch
Loans
2020	2,715
2019	2,053
2018	1,396
2017	349
2016	579
Prior	233
Revolving loans	2,939
Ending balance	10,264	9,125
Retail Real Estate \| Special Mention
Loans
2020	509
2016	1,962
Ending balance	2,471	5,355
Retail Real Estate \| Substandard
Loans
2020	899
2019	96
2018	56
2017	26
2016	727
Prior	1,631
Revolving loans	267
Ending balance	3,702	7,001
Retail Real Estate \| Substandard Non-accrual
Loans
2020	687
2019	78
2018	646
2017	1,147
2016	233
Prior	4,815
Revolving loans	1,193
Ending balance	8,799	8,935
Retail Other
Loans
2020	8,371
2019	9,437
2018	5,605
2017	2,531
2016	696
Prior	497
Revolving loans	10,291
Ending balance	37,428
Retail Other \| Pass
Loans
2020	8,357
2019	9,430
2018	5,600
2017	2,516
2016	691
Prior	440
Revolving loans	10,290
Ending balance	37,324	47,698
Retail Other \| Substandard Non-accrual
Loans
2020	14
2019	7
2018	5
2017	15
2016	5
Prior	57
Revolving loans	1
Ending balance	104	57
Commercial Loans
Loans
Ending balance	2,014,576	1,748,368
Commercial Real Estate Loans
Loans
Ending balance	2,892,535	2,793,417
Real Estate Construction
Loans
Ending balance	461,786	401,861
Retail Real Estate
Loans
Ending balance	1,407,852	1,693,769
Retail Other
Loans
Ending balance	$ 37,428	$ 49,834

Portfolio loans and allowance for credit losses - Analysis of loans past due and still accruing or non-accrual status (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Loans past due
90+Days	$ 1,371	$ 1,611
Non-accrual Loans	22,930	27,896
30 to 59 Days
Loans past due
Loans past due, still accruing	6,794	8,820
60 to 89 Days
Loans past due
Loans past due, still accruing	784	5,451
Commercial
Loans past due
90+Days		199
Non-accrual Loans	8,523	9,096
Commercial \| 30 to 59 Days
Loans past due
Loans past due, still accruing	243	1,075
Commercial \| 60 to 89 Days
Loans past due
Loans past due, still accruing		1,014
Commercial real estate
Loans past due
90+Days		584
Non-accrual Loans	5,503	9,178
Commercial real estate \| 30 to 59 Days
Loans past due
Loans past due, still accruing		2,653
Commercial real estate \| 60 to 89 Days
Loans past due
Loans past due, still accruing		3,121
Real estate construction
Loans past due
Non-accrual Loans	1	630
Real estate construction \| 30 to 59 Days
Loans past due
Loans past due, still accruing	237	19
Real estate construction \| 60 to 89 Days
Loans past due
Loans past due, still accruing	235
Retail Real Estate
Loans past due
90+Days	1,305	828
Non-accrual Loans	8,799	8,935
Retail Real Estate \| 30 to 59 Days
Loans past due
Loans past due, still accruing	6,248	5,021
Retail Real Estate \| 60 to 89 Days
Loans past due
Loans past due, still accruing	400	1,248
Retail Other
Loans past due
90+Days	66
Non-accrual Loans	104	57
Retail Other \| 30 to 59 Days
Loans past due
Loans past due, still accruing	66	52
Retail Other \| 60 to 89 Days
Loans past due
Loans past due, still accruing	$ 149	$ 68

Portfolio loans and allowance for credit losses - Summary of TDR loans (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Restructured loans
Total loans	$ 5,078	$ 5,707
In compliance with modified terms
Restructured loans
Total loans	3,814	5,005
30-89 days past due
Restructured loans
Total loans	15
Included in non-performing loans
Restructured loans
Total loans	$ 1,249	$ 702

Portfolio loans and allowance for credit losses - Loans identified as impaired, segregated by category (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Loans identified as impaired
Unpaid Contractual Principal Balance	$ 30,342	$ 45,686
Recorded Investment with No Allowance	15,850	29,540
Recorded Investment with Allowance	4,396	7,539
Total Recorded Investment	20,246	37,079
Related Allowance	1,625	4,853
Average Recorded Investment	25,299	45,370
Collateral dependent loans secured by real estate or business assets	14,800
Commercial Loans
Loans identified as impaired
Unpaid Contractual Principal Balance	16,771	14,415
Recorded Investment with No Allowance	4,001	4,727
Recorded Investment with Allowance	4,371	5,026
Total Recorded Investment	8,372	9,753
Related Allowance	1,600	3,330
Average Recorded Investment	7,920	13,774
Commercial Real Estate Loans
Loans identified as impaired
Unpaid Contractual Principal Balance	7,406	14,487
Recorded Investment with No Allowance	6,067	9,883
Recorded Investment with Allowance		2,039
Total Recorded Investment	6,067	11,922
Related Allowance		1,049
Average Recorded Investment	9,349	16,678
Real Estate Construction
Loans identified as impaired
Unpaid Contractual Principal Balance	292	1,116
Recorded Investment with No Allowance	292	974
Total Recorded Investment	292	974
Average Recorded Investment	581	873
Retail Real Estate
Loans identified as impaired
Unpaid Contractual Principal Balance	5,873	15,581
Recorded Investment with No Allowance	5,490	13,898
Recorded Investment with Allowance	25	474
Total Recorded Investment	5,515	14,372
Related Allowance	25	474
Average Recorded Investment	7,439	14,003
Retail Other
Loans identified as impaired
Unpaid Contractual Principal Balance		87
Recorded Investment with No Allowance		58
Total Recorded Investment		58
Average Recorded Investment	$ 10	$ 42

Portfolio loans and allowance for credit losses - Activity in the allowance for loan losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2020	Dec. 31, 2019
Activity in the allowance for loan losses
Beginning balance	$ 53,748	$ 50,648	$ 53,582
Provision for loan losses	38,797	10,406	4,429
Charged-off	(11,088)	(11,760)	(10,944)
Recoveries	2,758	4,454	3,581
Ending balance	101,048	53,748	50,648
Allowance for loan losses Ending balance attributed to:
Loans individually evaluated for impairment				$ 1,625	$ 4,853
Loans collectively evaluated for impairment				99,423	48,895
Ending balance	53,748	50,648	53,582	101,048	53,748
Loans:
Loans individually evaluated for impairment				17,974	34,031
Loans collectively evaluated for impairment				6,793,931	6,650,170
PCI loans evaluated for impairment				2,272	3,048
Ending balance				6,814,177	6,687,249
Commercial Loans
Activity in the allowance for loan losses
Beginning balance	18,291	17,829	14,779
Provision for loan losses	10,832	4,893	5,767
Charged-off	(6,376)	(6,478)	(3,968)
Recoveries	404	2,047	1,251
Ending balance	23,866	18,291	17,829
Allowance for loan losses Ending balance attributed to:
Loans individually evaluated for impairment				1,600	3,330
Loans collectively evaluated for impairment				22,266	14,961
Ending balance	23,866	17,829	14,779	23,866	18,291
Loans:
Loans individually evaluated for impairment				8,372	9,740
Loans collectively evaluated for impairment				2,006,204	1,738,615
PCI loans evaluated for impairment					13
Ending balance				2,014,576	1,748,368
Commercial Real Estate Loans
Activity in the allowance for loan losses
Beginning balance	21,190	21,137	21,813
Provision for loan losses	17,511	3,002	3,227
Charged-off	(1,972)	(3,257)	(4,352)
Recoveries	195	308	449
Ending balance	46,230	21,190	21,137
Allowance for loan losses Ending balance attributed to:
Loans individually evaluated for impairment					1,049
Loans collectively evaluated for impairment				46,230	20,141
Ending balance	46,230	21,137	21,813	46,230	21,190
Loans:
Loans individually evaluated for impairment				4,161	10,018
Loans collectively evaluated for impairment				2,886,468	2,781,495
PCI loans evaluated for impairment				1,906	1,904
Ending balance				2,892,535	2,793,417
Real Estate Construction
Activity in the allowance for loan losses
Beginning balance	3,204	2,723	2,861
Provision for loan losses	1,452	(70)	(259)
Charged-off	(18)		(97)
Recoveries	601	551	218
Ending balance	8,193	3,204	2,723
Allowance for loan losses Ending balance attributed to:
Loans collectively evaluated for impairment				8,193	3,204
Ending balance	8,193	2,723	2,861	8,193	3,204
Loans:
Loans individually evaluated for impairment				292	539
Loans collectively evaluated for impairment				461,494	400,887
PCI loans evaluated for impairment					435
Ending balance				461,786	401,861
Retail Real Estate
Activity in the allowance for loan losses
Beginning balance	10,495	8,471	13,783
Provision for loan losses	9,050	2,102	(4,824)
Charged-off	(2,057)	(1,162)	(1,815)
Recoveries	1,212	1,084	1,327
Ending balance	21,992	10,495	8,471
Allowance for loan losses Ending balance attributed to:
Loans individually evaluated for impairment				25	474
Loans collectively evaluated for impairment				21,967	10,021
Ending balance	21,992	8,471	13,783	21,992	10,495
Loans:
Loans individually evaluated for impairment				5,149	13,676
Loans collectively evaluated for impairment				1,402,337	1,679,397
PCI loans evaluated for impairment				366	696
Ending balance				1,407,852	1,693,769
Retail Other
Activity in the allowance for loan losses
Beginning balance	568	488	346
Provision for loan losses	(48)	479	518
Charged-off	(665)	(863)	(712)
Recoveries	346	464	336
Ending balance	767	568	488
Allowance for loan losses Ending balance attributed to:
Loans collectively evaluated for impairment				767	568
Ending balance	767	488	$ 346	767	568
Loans:
Loans individually evaluated for impairment					58
Loans collectively evaluated for impairment				37,428	49,776
Ending balance				$ 37,428	49,834
Cumulative Effect, Period of Adoption, Adjustment
Activity in the allowance for loan losses
Beginning balance	16,833
Ending balance		16,833
Allowance for loan losses Ending balance attributed to:
Ending balance	16,833	16,833			16,833
Cumulative Effect, Period of Adoption, Adjustment \| Commercial Loans
Activity in the allowance for loan losses
Beginning balance	715
Ending balance		715
Allowance for loan losses Ending balance attributed to:
Ending balance	715	715			715
Cumulative Effect, Period of Adoption, Adjustment \| Commercial Real Estate Loans
Activity in the allowance for loan losses
Beginning balance	9,306
Ending balance		9,306
Allowance for loan losses Ending balance attributed to:
Ending balance	9,306	9,306			9,306
Cumulative Effect, Period of Adoption, Adjustment \| Real Estate Construction
Activity in the allowance for loan losses
Beginning balance	2,954
Ending balance		2,954
Allowance for loan losses Ending balance attributed to:
Ending balance	2,954	2,954			2,954
Cumulative Effect, Period of Adoption, Adjustment \| Retail Real Estate
Activity in the allowance for loan losses
Beginning balance	3,292
Ending balance		3,292
Allowance for loan losses Ending balance attributed to:
Ending balance	3,292	3,292			3,292
Cumulative Effect, Period of Adoption, Adjustment \| Retail Other
Activity in the allowance for loan losses
Beginning balance	566
Ending balance		566
Allowance for loan losses Ending balance attributed to:
Ending balance	$ 566	$ 566			$ 566

OREO (Details) - USD ($) $ in Thousands	12 Months Ended
OREO (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2020	Dec. 31, 2019
Foreclosed Real Estate
Other real estate owned (OREO)	$ 4,571	$ 376	$ 376	$ 4,571	$ 3,057
Other repossessed assets				1	1
Total OREO				4,571	3,057
OREO
Other Real Estate, Beginning Balance	3,057	376
Additions, transfers from loans	2,867	4,872	4,025
Additions, fair value from acquisition		149
Sales of OREO	(1,282)	(2,277)
Capitalized improvements		2
Cash payments collected	(3)	(3)
Valuation allowance for OREO	(68)	(62)
Other Real Estate, Ending Balance	4,571	3,057	$ 376
Commercial Real Estate Loans
Foreclosed Real Estate
Other real estate owned (OREO)	2,657	2,657		4,206	2,657
OREO
Other Real Estate, Beginning Balance	2,657
Other Real Estate, Ending Balance	4,206	2,657
Residential real estate
Foreclosed Real Estate
Other real estate owned (OREO)	399	399		364	$ 399
Residential real estate in the process of foreclosure				$ 1,000
OREO
Other Real Estate, Beginning Balance	399
Other Real Estate, Ending Balance	$ 364	$ 399

Premises and Equipment, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Premises and Equipment
Premises and equipment, gross	$ 225,138	$ 232,768
Accumulated depreciation	89,947	81,501
Premises and equipment, net	135,191	151,267
Depreciation expense	12,273	11,879	$ 9,556
Land and improvements
Premises and Equipment
Premises and equipment, gross	40,762	43,967
Buildings and improvements
Premises and Equipment
Premises and equipment, gross	130,610	134,473
Furniture and equipment
Premises and Equipment
Premises and equipment, gross	$ 53,766	$ 54,328

Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) segment	Dec. 31, 2019 USD ($)	Jan. 31, 2019 USD ($)
Goodwill and other intangibles assets
Number of operating segments \| segment	3
Total goodwill	$ 311,536	$ 311,536
Banc Ed
Goodwill and other intangibles assets
Total goodwill			$ 41,437
Other intangible assets			$ 32,617
Banking
Goodwill and other intangibles assets
Total goodwill	288,436	288,436
Banking \| Banc Ed
Goodwill and other intangibles assets
Total goodwill		41,400
Other intangible assets		27,200
Remittance Processing
Goodwill and other intangibles assets
Total goodwill	8,992	8,992
Wealth Management
Goodwill and other intangibles assets
Total goodwill	14,108	14,108
Other intangible assets		5,400
Intangible Assets Acquired	$ 400
Wealth Management \| IST
Goodwill and other intangibles assets
Total goodwill		2,400
Other intangible assets		$ 5,700

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill and other intangibles assets
Intangible assets, gross	$ 114,864	$ 114,464
Accumulated amortization	62,879	52,871
Total estimated amortization expense	51,985	61,593
Amortization expense	10,008	9,547	$ 5,854
Estimated amortization expense:
2021	9,319
2022	8,546
2023	7,695
2024	6,827
2025	5,794
Thereafter	13,804
Total estimated amortization expense	51,985	61,593
Core deposit intangible assets
Goodwill and other intangibles assets
Intangible assets, gross	90,256	90,256
Accumulated amortization	46,909	39,156
Total estimated amortization expense	43,347	51,100
Amortization expense	7,753	7,963
Estimated amortization expense:
2021	7,259
2022	6,749
2023	6,226
2024	5,686
2025	4,915
Thereafter	12,512
Total estimated amortization expense	43,347	51,100
Customer relationship intangible assets
Goodwill and other intangibles assets
Intangible assets, gross	24,608	24,208
Accumulated amortization	15,970	13,715
Total estimated amortization expense	8,638	10,493
Amortization expense	2,255	1,584
Estimated amortization expense:
2021	2,060
2022	1,797
2023	1,469
2024	1,141
2025	879
Thereafter	1,292
Total estimated amortization expense	$ 8,638	$ 10,493

Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deposits
Demand deposits, noninterest-bearing	$ 2,552,039	$ 1,832,619
Interest-bearing transaction deposits	2,263,093	1,989,854
Saving deposits and money market deposits	2,743,369	2,545,073
Time deposits	1,119,348	1,534,850
Total deposits	8,677,849	7,902,396
Brokered saving deposits and money market deposits	2,251	12,514
Brokered time deposits	5,257	5,498
Aggregate amount of time deposits with a minimum denomination of $100,000	568,735	854,132
Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000	192,563	297,442
Deposits
2021	775,495
2022	195,906
2023	83,862
2024	48,761
2025	15,293
Thereafter	31
Total time deposits	$ 1,119,348	$ 1,534,850

Borrowings - Short-term borrowings (Details) - USD ($)	12 Months Ended
Borrowings - Short-term borrowings (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Maturity period
Securities sold under agreements to repurchase	$ 175,614,000	$ 205,491,000
Securities sold under agreements to repurchase, weighted average rate	0.13%	1.05%
Federal Funds Purchased	$ 0	$ 0
Short-term borrowings (FHLB advances)	$ 4,700,000	2,600,000
Maximum maturity period of short-term debt	1 year
Debt due within 12 months		$ 6,000,000.0
Minimum
Maturity period
Short-term borrowings, mature period	1 day
Maximum
Maturity period
Short-term borrowings, mature period	90 days

Borrowings - Amended and Restated Credit Agreement (Details) - USD ($) $ in Thousands	Apr. 24, 2020	Dec. 31, 2020	Dec. 31, 2019	Jan. 29, 2019
Revolving loan facility
Borrowings
Maximum borrowing capacity				$ 20,000
Outstanding amounts		$ 0	$ 0
Floating interest rate margin (as a percent)	1.75%
Term of the maturity extension	1 year
Term Loan
Borrowings
Maximum borrowing capacity				$ 60,000
Interest rate (as a percent)				1.50%

- Definition

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

+ References + Details

Borrowings - Long-term Debt (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Long-term debt
Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock.	$ 4,757	$ 35,600
Term Loan		48,000
Total long-term debt	$ 4,757	$ 83,600
FHLB advances
Long-term debt
Notes payable original maturity term	5 years	5 years
Interest rate (as a percent)	3.04%
Weighted average rate (as a percent)		1.53%
FHLB advances \| Minimum
Long-term debt
Interest rate (as a percent)		1.25%
FHLB advances \| Maximum
Long-term debt
Interest rate (as a percent)		3.04%

Borrowings - Senior notes and Subordinate Notes (Details) - USD ($) $ in Thousands	Jun. 01, 2020	May 25, 2017	Dec. 31, 2020	Dec. 31, 2019
Long-term debt
Unamortized debt issuance cost			$ 2,965	$ 1,078
3.75% notes maturing May 25, 2022 \| Senior notes
Long-term debt
Issuance of debt		$ 40,000
Interest rate (as a percent)		3.75%
Unamortized debt issuance cost			191	326
4.75% notes maturing May 25, 2027 \| Subordinated debt
Long-term debt
Issuance of debt		$ 60,000
Fixed payment term of note		5 years
Duration of fixed interest rate		5 years
Unamortized debt issuance cost			651	$ 752
4.75% notes maturing May 25, 2027 \| First Five Years \| Subordinated debt
Long-term debt
Interest rate (as a percent)		4.75%
4.75% notes maturing May 25, 2027 \| Three-month LIBOR \| Subordinated debt
Long-term debt
Floating interest rate margin (as a percent)		2.919%
5.25% notes maturing June 1, 2030 \| Subordinated debt
Long-term debt
Issuance of debt	$ 125,000
Fixed payment term of note	5 years
Duration of fixed interest rate	5 years
Floating interest rate margin (as a percent)	5.11%
Unamortized debt issuance cost			$ 2,123
5.25% notes maturing June 1, 2030 \| First Five Years \| Subordinated debt
Long-term debt
Interest rate (as a percent)	5.25%

Junior Subordinated Debt Owed to Unconsolidated Trusts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Junior subordinated debt owed to unconsolidated trusts
Junior subordinated debt owed to unconsolidated trusts	$ 71,468	$ 71,308
Parent
Junior subordinated debt owed to unconsolidated trusts
Junior subordinated debt owed to unconsolidated trusts	$ 71,468	$ 71,308
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

Regulatory Capital (Details) $ in Thousands		12 Months Ended
Regulatory Capital (Details) $ in Thousands	Jun. 01, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Total Capital (to Risk Weighted Assets), Amount
Actual, Amount		$ 1,245,997	$ 1,036,143
Minimum Capital Requirement, Amount		585,015	590,826
Minimum To Be Well Capitalized, Amount		$ 731,269	$ 738,532
Total Capital (to Risk Weighted Assets), Ratio
Actual, Ratio (as a percent)		17.04	14.03
Minimum Capital Requirement, Ratio (as a percent)		8.00	8.00
Minimum To Be Well Capitalized, Ratio (as a percent)		10.00	10.00
Tier 1 Capital (to Risk Weighted Assets), Amount
Actual, Amount		$ 983,033	$ 922,395
Minimum Capital Requirement, Amount		438,761	443,120
Minimum To Be Well Capitalized, Amount		$ 585,015	$ 590,826
Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual, Ratio (as a percent)		13.44	12.49
Minimum Capital Requirement, Ratio (as a percent)		6.00	6.00
Minimum To Be Well Capitalized, Ratio (as a percent)		8.00	8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets), Amount
Actual, Amount		$ 909,033	$ 848,395
Minimum Capital Requirement, Amount		329,071	332,340
Minimum To Be Well Capitalized, Amount		$ 475,325	$ 480,046
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual, Ratio (as a percent)		12.43%	11.49%
Minimum Capital Requirement, Ratio (as a percent)		4.50%	4.50%
Minimum To Be Well Capitalized, Ratio (as a percent)		6.50%	6.50%
Tier 1 Capital (to Average Assets), Amount
Actual, Amount		$ 983,033	$ 922,395
Minimum Capital Requirement, Amount		$ 401,717	$ 373,360
Tier 1 Capital (to Average Assets), Ratio
Actual, Ratio (as a percent)		9.79	9.88
Minimum Capital Requirement, Ratio (as a percent)		4.00	4.00
Busey Bank paid dividends to the Company, amount received		$ 122,000	$ 70,000
Busey Bank
Total Capital (to Risk Weighted Assets), Amount
Actual, Amount		1,131,875	1,099,449
Minimum Capital Requirement, Amount		584,082	589,681
Minimum To Be Well Capitalized, Amount		$ 730,103	$ 737,101
Total Capital (to Risk Weighted Assets), Ratio
Actual, Ratio (as a percent)		15.50	14.92
Minimum Capital Requirement, Ratio (as a percent)		8.00	8.00
Minimum To Be Well Capitalized, Ratio (as a percent)		10.00	10.00
Tier 1 Capital (to Risk Weighted Assets), Amount
Actual, Amount		$ 1,053,910	$ 1,045,701
Minimum Capital Requirement, Amount		438,062	442,261
Minimum To Be Well Capitalized, Amount		$ 584,082	$ 589,681
Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual, Ratio (as a percent)		14.44	14.19
Minimum Capital Requirement, Ratio (as a percent)		6.00	6.00
Minimum To Be Well Capitalized, Ratio (as a percent)		8.00	8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets), Amount
Actual, Amount		$ 1,053,910	$ 1,045,701
Minimum Capital Requirement, Amount		328,546	331,696
Minimum To Be Well Capitalized, Amount		$ 474,567	$ 479,116
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio
Actual, Ratio (as a percent)		14.44%	14.19%
Minimum Capital Requirement, Ratio (as a percent)		4.50%	4.50%
Minimum To Be Well Capitalized, Ratio (as a percent)		6.50%	6.50%
Tier 1 Capital (to Average Assets), Amount
Actual, Amount		$ 1,053,910	$ 1,045,701
Minimum Capital Requirement, Amount		400,581	373,639
Minimum To Be Well Capitalized, Amount		$ 500,727	$ 467,049
Tier 1 Capital (to Average Assets), Ratio
Actual, Ratio (as a percent)		10.52	11.19
Minimum Capital Requirement, Ratio (as a percent)		4.00	4.00
Minimum To Be Well Capitalized, Ratio (as a percent)		5.00	5.00
Subordinated debt \| 5.25% fixed-to-floating rate notes due 2030
Regulatory Capital
Proceeds from public offering	$ 125,000

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current expense:
Federal	$ 21,027	$ 22,479	$ 18,076
State	12,144	8,910	9,807
Deferred expense:
Federal	(3,657)	(380)	5,068
State	(1,652)	476	2,048
Total income tax expense	$ 27,862	$ 31,485	$ 34,999
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%	21.00%	21.00%
Tax-exempt interest, net (as a percent)	(1.60%)	(1.70%)	(1.30%)
Stock incentive (as a percent)	0.20%	(0.10%)	(0.30%)
State income taxes, net (as a percent)	6.50%	5.50%	7.30%
Income on bank owned life insurance (as a percent)	(0.90%)	(0.90%)	(0.60%)
Tax credit investments	(3.20%)	(1.30%)
Other, net (as a percent)	(0.30%)	0.90%
Total (as a percent)	21.70%	23.40%	26.10%
Deferred tax assets:
Unrealized loss on cash flow hedge	$ 871	$ 80
Allowance for credit losses	30,332	15,416
Stock-based compensation	2,975	2,069
Deferred compensation	66	166
Affordable housing partnerships and other investments		697
Purchase accounting adjustments	4,470	11,301
Accrued vacation	610	827
Lease liability	2,142	2,650
Employee costs	1,598	1,048
Other	431	809
Total deferred tax assets	43,495	35,063
Deferred tax liabilities:
Unrealized gains on securities available for sale and cash flow hedges	(14,151)	(6,032)
Basis in premises and equipment	(348)	(4,222)
Affordable housing partnerships and other investments	(1,995)	(1,411)
Purchase accounting adjustments	(1,835)	(1,023)
Mortgage servicing assets	(3,418)	(3,717)
Basis in core deposit, customer intangible assets, and asset purchase goodwill	(12,714)	(17,120)
Deferred loan origination costs	(2,654)	(1,730)
Lease right of use asset	(2,130)	(2,633)
Unrealized gain on equity securities	(276)	(593)
Other	(405)	(508)
Total deferred tax liabilities	(39,926)	(38,989)
Net deferred tax (liability) asset		(3,926)
Net deferred tax (liability) asset	3,569
Operating loss carryforwards	0
Valuation allowance, deferred tax assets	$ 0	$ 0

Employee Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Shares held in the ESOP:
Acquired prior to December 31, 1992, Shares		113,866
Acquired prior to December 31, 1992, Shares		36,719
Total shares held in the ESOP, Shares		150,585
Acquired prior to December 31, 1992, Fair Value		$ 3,131
Acquired after December 31, 1992, Fair Value		1,010
Total shares held in the ESOP, Fair Value		4,141
Profit Sharing Plan
Vesting period	5 years
Expenses related to the employee benefit plans	$ 6,000	5,800	$ 5,400
Deferred Compensation Plan
Deferred compensation expense	0	100	$ 300
Deferred compensation liability	$ 0
Banc Ed
Deferred Compensation Plan
Deferred compensation liability		$ 400

Stock-based Compensation (Details)	12 Months Ended
Stock-based Compensation (Details)	Dec. 31, 2020 shares
Performance based restricted stock unit
Share-based Compensation
Number of shares of common stock per award	1
Restricted stock unit
Share-based Compensation
Number of shares of common stock per award	1
Deferred stock units
Share-based Compensation
Number of shares of common stock per award	1
Requisite service periods	30 days
Vesting period	1 year
Settlement period	30 days
Minimum \| Restricted stock unit
Share-based Compensation
Requisite service periods	1 year
Maximum \| Restricted stock unit
Share-based Compensation
Requisite service periods	5 years

Stock-based Compensation - Award Status (Details) - Stock option awards - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Shares
Outstanding at beginning of year (in shares)	53,185
Exercised (in shares)	(12,956)
Expired (in shares)	(1,144)
Outstanding at end of year (in shares)	39,085	53,185
Exercisable at end of year (in shares)	39,085
Weighted-Average Exercise Price
Outstanding at beginning of year (in dollars per share)	$ 22.00
Exercised (in dollars per share)	17.45
Expired (in dollars per share)	21.35
Outstanding at end of year (in dollars per share)	23.53	$ 22.00
Exercisable at end of year (in dollars per share)	$ 23.53
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	5 years 10 months 17 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted-Average Remaining Contractual Life, Outstanding at end of year	5 years 10 months 17 days	5 years 10 months 24 days
Intrinsic Value, Outstanding at end of year (in dollars)		$ 292
Weighted-Average Remaining Contractual Life, Exercisable at end of year	5 years 10 months 17 days

Stock-based Compensation - Options Outstanding (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Additional disclosures
Compensation expense recognized	$ 7.1	$ 3.8	$ 3.5
Period over which cost will be recognized	3 years
Stock option awards
Additional disclosures
Compensation expense recognized		$ 0.1	$ 0.2

Stock-based Compensation - Restricted and Deferred Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions				3 Months Ended	12 Months Ended
	Sep. 21, 2020	Jul. 07, 2020	Feb. 05, 2020	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Additional disclosures
Compensation expense recognized					$ 7.1	$ 3.8	$ 3.5
Amount of compensation cost to be recognized					$ 10.9
Period over which cost will be recognized					3 years
Restricted stock unit
Shares
Non-vested at beginning of year (in shares)					778,317
Granted (in shares)					385,893
Dividend equivalents earned (in shares)					41,592
Vested (in shares)					(117,641)
Forfeited (in shares)					(71,123)
Non-vested at end of year (in shares)					1,017,038	778,317
Weighted-Average Grant Date Fair Value
Non-vested at beginning of year (in dollars per share)					$ 27.27
Granted (in dollars per share)					17.26
Dividend equivalents earned (in dollars per share)					18.85
Vested (in dollars per share)					21.38
Forfeited (in dollars per share)					26.34
Non-vested at end of year (in dollars per share)					$ 23.87	$ 27.27
Additional disclosures
Stock Issued During Period Shares Equity Instruments Other than Options Vested and Related Tax Benefit					106,589
Deferred stock units
Shares
Non-vested at beginning of year (in shares)					21,261
Granted (in shares)					33,419
Dividend equivalents earned (in shares)					4,507
Vested (in shares)					(24,924)
Non-vested at end of year (in shares)					34,263	21,261
Outstanding at end of year (in shares)					71,044
Weighted-Average Grant Date Fair Value
Non-vested at beginning of year (in dollars per share)					$ 26.78
Granted (in dollars per share)					17.17
Dividend equivalents earned (in dollars per share)					18.97
Vested (in dollars per share)					25.68
Non-vested at end of year (in dollars per share)					17.18	$ 26.78
Outstanding at end of year (in dollars per share)					$ 24.34
Performance based restricted stock unit
Shares
Granted (in shares)				15,724
Additional disclosures
Compensation expense recognized				$ 0.3
Performance based restricted stock unit \| Minimum
Additional disclosures
Vesting percentage (as a percent)				0.00%
Performance based restricted stock unit \| Maximum
Shares
Granted (in shares)				25,158
Additional disclosures
Vesting percentage (as a percent)				1.60%
Stock option awards
Additional disclosures
Compensation expense recognized						$ 0.1	$ 0.2
2010 Equity Incentive Plan \| Restricted stock unit \| Members of management
Shares
Granted (in shares)			3,808
Additional disclosures
Compensation expense recognized			$ 0.1
Period over which cost will be recognized			3 years
Vesting percentage (as a percent)			1.00%
2020 Equity Incentive Plan \| Restricted stock unit \| Members of management
Shares
Granted (in shares)	1,550
Additional disclosures
Period over which cost will be recognized	5 years
2020 Equity Incentive Plan \| Restricted stock unit \| Management, Vice Chairman of Board
Shares
Granted (in shares)		380,535
Additional disclosures
Compensation expense recognized		$ 6.5
Vesting percentage (as a percent)		1.00%
2020 Equity Incentive Plan \| Restricted stock unit \| Management, Vice Chairman of Board \| Minimum
Additional disclosures
Period over which cost will be recognized		1 year
2020 Equity Incentive Plan \| Restricted stock unit \| Management, Vice Chairman of Board \| Maximum
Additional disclosures
Period over which cost will be recognized		5 years
2020 Equity Incentive Plan \| Deferred stock units \| Directors and Advisory Directors
Shares
Granted (in shares)		33,419
Additional disclosures
Compensation expense recognized		$ 0.6
Period over which cost will be recognized		1 year
Vesting percentage (as a percent)		1.00%

Transactions with Related Parties (Details) $ in Thousands	12 Months Ended
Transactions with Related Parties (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Analysis of the changes in loans to related parties
Balance at beginning of year	$ 53,327
Change in relationship	(11,037)
New loans/advances	12,593
Repayments	(12,962)
Balance at end of year	41,921
Directors and executive officers
Analysis of the changes in loans to related parties
Total unused commitments	$ 50,000

Outstanding Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Commitments to extend credit
Credit Commitments and Contingencies
Financial instruments whose contract amounts represent credit risk:	$ 1,754,370	$ 1,649,565
Standby letters of credit
Credit Commitments and Contingencies
Financial instruments whose contract amounts represent credit risk:	$ 38,937	$ 42,581

Derivative Financial Instruments - Interest Rate Swaps Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Fair value recorded in other liabilities		$ 300
Cash Flow Hedging \| Interest rate swap
Derivative [Line Items]
Notional amount	$ 70,000	$ 70,000
Weighted average fixed pay rates	1.80%	1.80%
Weighted average variable 3 month LIBOR receive rates	0.22%	1.90%
Weighted average maturity in years	2 years 10 months 6 days	3 years 10 months 9 days
Unrealized gains (losses), net of tax	$ (2,184)	$ (200)
Interest income (expense) on swap transactions	(800)
Unrealized gain (loss) to be reclassified from OCI to interest expense during next twelve months	(300)
Other liabilities \| Cash Flow Hedging \| Interest rate swap
Derivative [Line Items]
Fair value recorded in other liabilities	$ 3,100

Derivative Financial Instruments - Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) (Details) - Interest rate contract - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Cash pledged to secure obligations	$ 3,200	$ 300
Cash Flow Hedging
Derivative [Line Items]
Amount of (gain) loss recognized in OCI	(2,526)	(202)
Amount of (gain) loss reclassified from OCI to interest expense	$ 542	$ 2

Derivative Financial Instruments - Forward Sales Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Interest rate lock commitments \| Other assets
Derivative Financial Instruments
Notional amount	$ 45,004	$ 67,965
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	1,201	1,032
Interest rate lock commitments \| Other liabilities
Derivative Financial Instruments
Notional amount	118	1,114
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other liabilities	1	11
Forward sales commitments \| Other assets
Derivative Financial Instruments
Notional amount	978	1,773
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	32	14
Forward sales commitments \| Other liabilities
Derivative Financial Instruments
Notional amount	84,964	133,482
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other liabilities	2,662	2,176
Interest rate lock commitments and forward sales commitments \| Designated as hedging instrument
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Net gains (losses)	(8,662)	(2,763)	$ (1,353)
Interest rate lock commitments and forward sales commitments \| Other assets \| Designated as hedging instrument
Derivative Financial Instruments
Notional amount		1,233
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	45,982	69,738
Interest rate lock commitments and forward sales commitments \| Other liabilities \| Designated as hedging instrument
Derivative Financial Instruments
Notional amount		2,663
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other liabilities	85,082	134,596
Mortgage revenue \| Interest rate lock commitments \| Designated as hedging instrument
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Gross gains	9,667	3,988	1,757
Mortgage revenue \| Forward sales commitments \| Designated as hedging instrument
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income
Gross (losses)	$ (18,329)	$ (6,751)	$ (3,110)

Derivative Financial Instruments - Interest Rate Swaps Not Designated as Hedges (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Not designated as hedging
Derivative Financial Instruments
Notional Amount, Derivative Asset	$ 394,954	$ 290,418
Notional Amount, Derivative Liability	394,954	290,418
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	32,685	12,354
Fair value recorded in other liabilities	32,685	12,354
Interest rate swap
Derivative Financial Instruments
Variable rate, commercial loans that are supported by the interest rate swap contracts	395,000	290,400
Gains and losses on these derivative assets and liabilities recorded in non-interest expense in the unaudited Consolidated Statements of Income
Cash pledged to secure obligations	36,000	18,100
Interest rate swap \| Not designated as hedging
Derivative Financial Instruments
Notional Amount, Derivative Asset	394,954	290,418
Notional Amount, Derivative Liability	394,954	290,418
Fair values of derivative assets and liabilities recorded in consolidated balance sheets
Fair value recorded in other assets	32,685	12,354
Fair value recorded in other liabilities	32,685	12,354
Non-interest expense \| Interest rate swap
Gains and losses on these derivative assets and liabilities recorded in non-interest expense in the unaudited Consolidated Statements of Income
Gain (loss) pay, floating receive fixed	20,331	10,915	$ 1,176
Gain (loss) pay fixed receive floating	$ 20,331	$ 10,915	$ 1,176

Fair Value Measurements - General Disclosures (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	$ 2,261,187	$ 1,648,257
Equity securities	5,530	5,952
Loans held for sale, at fair value	42,813	68,699
U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	27,837	51,737
Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	69,519	163,000
Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	304,711	268,291
Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	418,616	139,287
Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	1,368,315	921,966
Corporate debt securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	72,189	103,976
Recurring basis
Financial assets and financial liabilities measured at fair value
Equity securities	5,530	5,952
Loans held for sale, at fair value	42,813	68,699
Recurring basis \| Derivative assets
Financial assets and financial liabilities measured at fair value
Derivative asset	33,918	13,400
Recurring basis \| Derivative liabilities
Financial assets and financial liabilities measured at fair value
Derivative liability	38,403	14,821
Recurring basis \| U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	27,837	51,737
Recurring basis \| Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	69,519	163,000
Recurring basis \| Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	304,711	268,291
Recurring basis \| Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	418,616	139,287
Recurring basis \| Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	1,368,315	921,966
Recurring basis \| Corporate debt securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	72,189	103,976
Recurring basis \| Level 2
Financial assets and financial liabilities measured at fair value
Equity securities	5,530	5,952
Loans held for sale, at fair value	42,813	68,699
Recurring basis \| Level 2 \| Derivative assets
Financial assets and financial liabilities measured at fair value
Derivative asset	33,918	13,400
Recurring basis \| Level 2 \| Derivative liabilities
Financial assets and financial liabilities measured at fair value
Derivative liability	38,403	14,821
Recurring basis \| Level 2 \| U.S. Treasury securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	27,837	51,737
Recurring basis \| Level 2 \| Obligations of U.S. government corporations and agencies
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	69,519	163,000
Recurring basis \| Level 2 \| Obligations of states and political subdivisions
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	304,711	268,291
Recurring basis \| Level 2 \| Commercial mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	418,616	139,287
Recurring basis \| Level 2 \| Residential mortgage-backed securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	1,368,315	921,966
Recurring basis \| Level 2 \| Corporate debt securities
Financial assets and financial liabilities measured at fair value
Debt securities available for sale	$ 72,189	$ 103,976

Fair Value Measurements - Additional Quantitative Information (Details) $ in Thousands	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually	$ 20,246	$ 37,079
OREO	4,571	3,057	$ 376
Non-recurring basis
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO	106	55
Bank property held for sale	$ 10,676	$ 4,004
Loans evaluated individually (percent)	2,771	2,686
Non-recurring basis \| Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO	$ 106	$ 55
Bank property held for sale	$ 10,676	$ 4,004
Loans evaluated individually (percent)	2,771	2,686
Non-recurring basis \| Level 3 \| Appraisal of collateral \| Loans evaluated individually
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually	$ 2,771	$ 2,686
Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO	106	55
Non-recurring basis \| Level 3 \| Appraisal of collateral or real estate listing price \| Bank property held for sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Bank property held for sale	$ 10,676	$ 4,004
Appraisal adjustments \| Non-recurring basis \| Level 3 \| Appraisal of collateral \| Loans evaluated individually \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually (percent)	(0.300)	(0.029)
Appraisal adjustments \| Non-recurring basis \| Level 3 \| Appraisal of collateral \| Loans evaluated individually \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually (percent)	(1)	(1)
Appraisal adjustments \| Non-recurring basis \| Level 3 \| Appraisal of collateral \| Loans evaluated individually \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans evaluated individually (percent)	(0.370)	(0.578)
Appraisal adjustments \| Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO (percent)	(0.250)	(0.250)
Appraisal adjustments \| Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO (percent)	(1)	(1)
Appraisal adjustments \| Non-recurring basis \| Level 3 \| Appraisal of collateral \| OREO \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO (percent)	(0.545)
Appraisal adjustments \| Non-recurring basis \| Level 3 \| Appraisal of collateral or real estate listing price \| OREO \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
OREO (percent)		(0.650)
Appraisal adjustments \| Non-recurring basis \| Level 3 \| Appraisal of collateral or real estate listing price \| Bank property held for sale \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Bank property held for sale (percent)	(0.062)	(0.062)
Appraisal adjustments \| Non-recurring basis \| Level 3 \| Appraisal of collateral or real estate listing price \| Bank property held for sale \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Bank property held for sale (percent)	(0.649)	(0.713)
Appraisal adjustments \| Non-recurring basis \| Level 3 \| Appraisal of collateral or real estate listing price \| Bank property held for sale \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Bank property held for sale (percent)	(0.428)	(0.407)

Fair Value Measurements - Segregated by Level of Valuation Inputs (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financial assets:
Portfolio loans, net	$ 6,713,129	$ 6,633,501
Mortgage servicing rights	2,200,000
Financial liabilities:
Short-term borrowings	4,658	8,551
Junior subordinated debt owed to unconsolidated trusts	71,468	71,308
Level 1 \| Carrying Amount
Financial assets:
Cash and cash equivalents	688,537	529,288
Level 1 \| Fair Value
Financial assets:
Cash and cash equivalents	688,537	529,288
Level 2 \| Carrying Amount
Financial assets:
Accrued interest receivable	33,240	27,109
Financial liabilities:
Time deposits	1,119,348	1,534,850
Securities sold under agreements to repurchase	175,614	205,491
Short-term borrowings	4,658	8,551
Long-term debt	4,757	83,600
Junior subordinated debt owed to unconsolidated trusts	71,468	71,308
Accrued interest payable	3,401	5,000
Level 2 \| Fair Value
Financial assets:
Accrued interest receivable	33,240	27,109
Financial liabilities:
Time deposits	1,132,107	1,538,597
Securities sold under agreements to repurchase	175,614	205,491
Short-term borrowings	4,661	8,552
Long-term debt	5,014	83,614
Junior subordinated debt owed to unconsolidated trusts	59,943	74,153
Accrued interest payable	3,401	5,000
Level 3 \| Carrying Amount
Financial assets:
Portfolio loans, net	6,713,129	6,633,501
Mortgage servicing rights	10,912	12,326
Other servicing rights	1,434	1,071
Level 3 \| Fair Value
Financial assets:
Portfolio loans, net	6,755,425	6,648,560
Mortgage servicing rights	11,107	18,193
Other servicing rights	1,966	1,740
Level 3 \| Senior notes \| Carrying Amount
Financial liabilities:
Long-term debt	39,809	39,674
Level 3 \| Senior notes \| Fair Value
Financial liabilities:
Long-term debt	40,104	40,099
Level 3 \| Subordinated debt \| Carrying Amount
Financial liabilities:
Long-term debt	182,226	59,248
Level 3 \| Subordinated debt \| Fair Value
Financial liabilities:
Long-term debt	$ 187,697	$ 61,514

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net income per share calculations for basic and diluted methods
Net income	$ 100,344	$ 102,953	$ 98,928
Shares:
Weighted average common shares outstanding	54,567,429	54,851,652	48,854,330
Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method (in shares)	259,510	280,842	361,125
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation	54,826,939	55,132,494	49,215,455
Basic earnings per common share (in dollars per share)	$ 1.84	$ 1.88	$ 2.02
Diluted earnings per common share (in dollars per share)	$ 1.83	$ 1.87	$ 2.01
Common Stock
Anti-dilutive securities excluded from the calculation of common stock equivalents
Number of anti-dilutive securities (in shares)	206,355	201,029	363,849

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Changes in accumulated other comprehensive income (loss) by component, net of tax
Beginning balance	$ 1,220,434	$ 994,964	$ 935,003
Unrealized gains (losses) on debt securities available for sale:
Unrealized holding gains (losses) on debt securities available for sale, Tax Effect	(8,615)	(7,525)	1,861
Unrealized holding gains (losses) on debt securities available for sale, Net of Tax	21,561	18,905	(4,670)
Unrealized gains on debt securities transferred from held to maturity to available for sale, Tax Effect		1,433
Unrealized gains on debt securities transferred from held to maturity to available for sale, Net of Tax		3,590
Amounts reclassified from accumulated other comprehensive income, Tax Effect	496	210	(507)
Amounts reclassified from accumulated other comprehensive income, Net of Tax	(1,228)	(523)	1,273
Unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) on cash flow hedges, Tax Effect	(1,007)	(81)
Unrealized holding gains (losses) on cash flow hedges, Net of Tax	(2,526)	(202)
Amounts reclassified from accumulated other comprehensive income, Tax Effect	216	1
Amounts reclassified from accumulated other comprehensive income, Net of Tax	542	2
Ending balance	1,270,069	1,220,434	994,964
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss) by component, net of tax
Accumulated other comprehensive income (loss) beginning balance period, Before Tax	20,912	(9,528)
Accumulated other comprehensive income (loss) beginning balance period, Tax Effect	(5,952)	2,716
Beginning balance	14,960	(6,812)	(2,810)
Unrealized gains (losses) on debt securities available for sale:
Tax Cuts and Jobs Act of 2017 reclassification			(605)
Unrealized gains (losses) on cash flow hedges:
Accumulated other comprehensive income (loss) ending balance period, Before Tax	46,589	20,912	(9,528)
Accumulated other comprehensive income (loss) ending balance period, Tax Effect	(13,280)	(5,952)	2,716
Ending balance	33,309	14,960	(6,812)
Unrealized gains (losses) on debt securities available for sale
Changes in accumulated other comprehensive income (loss) by component, net of tax
Accumulated other comprehensive income (loss) beginning balance period, Before Tax	21,192	(9,528)	(4,777)
Accumulated other comprehensive income (loss) beginning balance period, Tax Effect	(6,032)	2,716	1,967
Beginning balance	15,160	(6,812)	(2,810)
Unrealized gains (losses) on debt securities available for sale:
Unrealized holding gains (losses) on debt securities available for sale, Before Tax	30,176	26,430	(6,531)
Unrealized holding gains (losses) on debt securities available for sale, Tax Effect	(8,615)	(7,525)	1,861
Unrealized holding gains (losses) on debt securities available for sale, Net of Tax	21,561	18,905	(4,670)
Unrealized gains on debt securities transferred from held to maturity to available for sale, Before Tax		5,023
Unrealized gains on debt securities transferred from held to maturity to available for sale, Tax Effect		(1,433)
Unrealized gains on debt securities transferred from held to maturity to available for sale, Net of Tax		3,590
Amounts reclassified from accumulated other comprehensive income, Before Tax	(1,724)	(733)	1,780
Amounts reclassified from accumulated other comprehensive income, Tax Effect	496	210	(507)
Amounts reclassified from accumulated other comprehensive income, Net of Tax	(1,228)	(523)	1,273
Tax Cuts and Jobs Act of 2017 reclassification			(605)
Unrealized gains (losses) on cash flow hedges:
Accumulated other comprehensive income (loss) ending balance period, Before Tax	49,644	21,192	(9,528)
Accumulated other comprehensive income (loss) ending balance period, Tax Effect	(14,151)	(6,032)	2,716
Ending balance	35,493	15,160	$ (6,812)
Unrealized gains (losses) on cash flow hedges
Changes in accumulated other comprehensive income (loss) by component, net of tax
Accumulated other comprehensive income (loss) beginning balance period, Before Tax	(280)
Accumulated other comprehensive income (loss) beginning balance period, Tax Effect	80
Beginning balance	(200)
Unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) on cash flow hedges, Before Tax	(3,533)	(283)
Unrealized holding gains (losses) on cash flow hedges, Tax Effect	1,007	81
Unrealized holding gains (losses) on cash flow hedges, Net of Tax	(2,526)	(202)
Amounts reclassified from accumulated other comprehensive income, Before Tax	758	3
Amounts reclassified from accumulated other comprehensive income, Tax Effect	(216)	(1)
Amounts reclassified from accumulated other comprehensive income, Net of Tax	542	2
Accumulated other comprehensive income (loss) ending balance period, Before Tax	(3,055)	(280)
Accumulated other comprehensive income (loss) ending balance period, Tax Effect	871	80
Ending balance	$ (2,184)	$ (200)

Operating Segments and Related Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) segment	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Operating Segments and Related Information
Number of reportable segments \| segment	3
Number of operating segments \| segment	3
Goodwill	$ 311,536	$ 311,536
Total Assets	10,544,047	9,695,729
Net interest income	282,935	287,223	$ 241,406
Non-interest income:	118,265	116,415	89,993
Non-interest expense:	234,197	258,794	193,043
Income before income taxes	128,206	134,438	133,927
Net income:	100,344	102,953	98,928
Banking
Operating Segments and Related Information
Goodwill	288,436	288,436
Remittance Processing
Operating Segments and Related Information
Goodwill	8,992	8,992
Wealth Management
Operating Segments and Related Information
Goodwill	14,108	14,108
Operating segments \| Banking
Operating Segments and Related Information
Goodwill	288,436	288,436
Total Assets	10,462,673	9,632,368
Net interest income	294,728	296,754	248,291
Non-interest income:	61,043	63,613	43,197
Non-interest expense:	185,445	211,559	154,455
Income before income taxes	131,529	138,401	132,604
Net income:	101,226	106,409	97,369
Operating segments \| Remittance Processing
Operating Segments and Related Information
Goodwill	8,992	8,992
Total Assets	46,553	44,209
Net interest income	79	76	67
Non-interest income:	16,548	16,450	15,876
Non-interest expense:	13,279	10,990	10,749
Income before income taxes	3,348	5,536	5,194
Net income:	2,372	4,060	3,710
Operating segments \| Wealth Management
Operating Segments and Related Information
Goodwill	14,108	14,108
Total Assets	46,504	32,760
Net interest income			327
Non-interest income:	43,429	39,075	31,621
Non-interest expense:	26,086	24,534	19,283
Income before income taxes	17,343	14,541	12,665
Net income:	13,181	11,135	9,372
Other
Operating Segments and Related Information
Total Assets	(11,683)	(13,608)
Net interest income	(11,872)	(9,607)	(7,279)
Non-interest income:	(2,755)	(2,723)	(701)
Non-interest expense:	9,387	11,711	8,556
Income before income taxes	(24,014)	(24,040)	(16,536)
Net income:	$ (16,435)	$ (18,651)	$ (11,523)

Leases - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Leases
Right of use asset	$ 7,714	$ 9,490
Lease liabilities	7,757	9,552
Rent expense under operating leases, included in net occupancy and equipment expense	$ 2,975	$ 2,880	$ 2,400

Leases - Lease Cost and Other Lease Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Lease Costs
Operating lease costs	$ 2,524	$ 2,364
Variable lease costs	416	432
Short-term lease costs	35	84
Net lease cost	2,975	2,880	$ 2,400
Cash paid for amounts included in the measurement of lease liabilities
Operating lease cash flows - Fixed payments	2,526	2,296
Operating lease cash flows - Liability reduction	2,289	2,010
Right of use assets obtained during the period in exchange for operating lease liabilities	$ 743	$ 923
Weighted average lease term (in years)	5 years 11 months 4 days	7 years 2 months 12 days
Weighted average discount rate (in percent)	2.82%	3.08%

Leases - Future Rent Commitments (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Projected minimum rental payments under the terms of leases
2021	$ 1,983
2022	1,555
2023	1,358
2024	957
2025	840
Thereafter	1,792
Amounts representing interest	(728)
Present value of net future minimum lease payments	$ 7,757

Parent Company Only Financial Information - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents	$ 688,537	$ 529,288
Equity securities	5,530	5,952
Investments in subsidiaries:
Premises and equipment, net	135,191	151,267
Other assets	150,020	102,551
Total assets	10,544,047	9,695,729
Liabilities:
Short-term borrowings	4,658	8,551
Long-term debt	4,757	83,600
Senior notes, net of unamortized issuance costs	39,809	39,674
Subordinated notes, net of unamortized issuance costs	182,226	59,248
Junior subordinated debentures owed to unconsolidated trusts	71,468	71,308
Other liabilities	109,840	95,475
Total liabilities	9,273,978	8,475,295
Total stockholders' equity	1,270,069	1,220,434	$ 994,964	$ 935,003
Total liabilities and stockholders' equity	10,544,047	9,695,729
Parent
ASSETS
Cash and cash equivalents	129,183	14,952
Equity securities	5,530	5,923
Investments in subsidiaries:
Bank	1,417,130	1,417,941
Non-bank	2,746	806
Premises and equipment, net	51	68
Other assets	21,664	13,873
Total assets	1,576,304	1,453,563
Liabilities:
Short-term borrowings		6,000
Long-term debt		48,000
Senior notes, net of unamortized issuance costs	39,809	39,674
Subordinated notes, net of unamortized issuance costs	182,226	59,248
Junior subordinated debentures owed to unconsolidated trusts	71,468	71,308
Other liabilities	12,732	8,899
Total liabilities	306,235	233,129
Total stockholders' equity	1,270,069	1,220,434
Total liabilities and stockholders' equity	$ 1,576,304	$ 1,453,563

Parent Company Only Financial Information - Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Dividends from subsidiaries:
Other income	$ 8,588	$ 8,649	$ 6,193
Expense:
Salaries, wages and employee benefits	126,719	140,473	107,844
Interest expense	43,663	69,011	44,627
Income tax benefit	(27,862)	(31,485)	(34,999)
Equity in undistributed (in excess of) net income of subsidiaries:
Net income	100,344	102,953	98,928
Parent
Dividends from subsidiaries:
Bank	122,000	70,000
Non-bank			17,000
Interest income	154	441	747
Gain (loss) on equity securities	(393)	(759)	2,322
Other income	10,083	10,224	8,096
Total operating income	131,844	79,906	28,165
Expense:
Salaries, wages and employee benefits	16,205	15,288	13,624
Interest expense	12,056	10,054	8,026
Operating expense	7,685	8,960	6,051
Total expense	35,946	34,302	27,701
Income (loss) before income tax benefit and equity in undistributed (in excess of) net income of subsidiaries	95,898	45,604	464
Income tax benefit	7,727	5,389	5,013
Income (loss) before equity in undistributed (in excess of) net income of subsidiaries	103,625	50,993	5,477
Equity in undistributed (in excess of) net income of subsidiaries:
Bank	(5,221)	51,604	103,309
Non-bank	1,940	356	(9,858)
Net income	$ 100,344	$ 102,953	$ 98,928

Parent Company Only Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash Flows from Operating Activities
Net income	$ 100,344	$ 102,953	$ 98,928
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	12,273	11,879	9,556
Net security losses (gains)	(1,724)	(733)	1,780
Stock-based compensation	7,135	3,997	3,721
Changes in assets and liabilities:
(Increase) decrease in other assets	(5,899)	5,397	9,580
Increase (decrease) in other liabilities	(6,551)	(7,380)	2,195
Net cash provided by (used in) operating Activities	169,299	80,800	202,547
Cash Flows from Investing Activities
Purchases of equity securities	(13,123)	(550)
Purchases of premises and equipment	(4,198)	(13,238)	(11,618)
Net cash (used in) provided by investing activities	(735,664)	64,958	(55,350)
Cash Flows from Financing Activities
Cash paid for withholding taxes on stock-based payments	(635)	(863)	(1,208)
Cash dividends paid	(48,012)	(45,171)	(39,010)
Proceeds from stock options exercised	101	169	392
Purchase of treasury stock	(12,272)	(24,292)
Common stock issuance costs		(234)
Net cash provided by (used in) financing activities	725,614	143,557	(260,496)
Net increase (decrease) in cash and cash equivalents	159,249	289,315	(113,299)
Cash and cash equivalents, beginning of period	529,288	239,973	353,272
Cash and cash equivalents, ending of period	688,537	529,288	239,973
Parent
Cash Flows from Operating Activities
Net income	100,344	102,953	98,928
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	648	420	232
Distributions less than net income of subsidiaries	3,281	(51,961)	(93,451)
Net security losses (gains)	393	759	(2,322)
Stock-based compensation	7,135	3,997	3,721
Changes in assets and liabilities:
(Increase) decrease in other assets	405	(4,279)	13,985
Increase (decrease) in other liabilities	(5,772)	(1,280)	1,341
Net cash provided by (used in) operating Activities	106,434	50,609	22,434
Cash Flows from Investing Activities
Purchases of equity securities		(520)
Net cash paid for business acquisition		(90,722)
Purchases of premises and equipment	(19)	(31)	(46)
Net cash (used in) provided by investing activities	(19)	(91,273)	(46)
Cash Flows from Financing Activities
Proceeds from charter amendment with subsidiary bank			40,000
Cash paid for withholding taxes on stock-based payments	(635)	(863)	(817)
Cash dividends paid	(48,012)	(45,171)	(39,010)
Repayments of debt	(74,000)	(6,000)	(5,500)
Proceeds from issuance of debt	142,634	60,000
Proceeds from stock options exercised	101	169
Purchase of treasury stock	(12,272)	(24,292)
Common stock issuance costs		(234)
Net cash provided by (used in) financing activities	7,816	(16,391)	(5,327)
Net increase (decrease) in cash and cash equivalents	114,231	(57,055)	17,061
Cash and cash equivalents, beginning of period	14,952	72,007	54,946
Cash and cash equivalents, ending of period	$ 129,183	$ 14,952	$ 72,007

Unaudited Interim Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Unaudited Interim Financial Data
Total interest income	$ 326,598	$ 356,234	$ 286,033
Total interest expense	43,663	69,011	44,627
Net interest income	282,935	287,223	241,406
Provision for credit losses	38,797	10,406	4,429
Total non-interest income	118,265	116,415	89,993
Total non-interest expense	234,197	258,794	193,043
Income before income taxes	128,206	134,438	133,927
Income taxes	27,862	31,485	34,999
Net income	$ 100,344	$ 102,953	$ 98,928
Basic earnings per share (in dollars per share)	$ 1.84	$ 1.88	$ 2.02
Diluted earnings per share (in dollars per share)	$ 1.83	$ 1.87	$ 2.01