First Busey (BUSE) risk factors, FY2025 10-K

First Busey's FY2025 10-K, filed Feb 26, 2026, lists 46 risk factors in 8 groups. Against the prior year's 42: 16 new, 12 dropped, 24 substantially reworded.

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Risk factors listed
468 groups
New this year
16vs 42 last year
Dropped
12since the prior 10-K
Substantially reworded
24of those kept
Section length
7k wordsItem 1A

What the changes say

  • Interest-rate risk is broader, covering yield-curve effects, asset values, loan demand, prepayments, reinvestment and liquidity.
  • Credit-risk discussion is more specific to commercial borrowers, construction projects and energy-sector exposure.
  • Technology and digital-asset risks now emphasize artificial intelligence, stablecoins, fintech competition, cybersecurity and third-party oversight.
  • Acquisition risks add regulatory approvals, integration controls, employee and customer retention, synergies and goodwill impairment.

What changed since the prior 10-K

New

  • NewECONOMIC AND MARKET RISKS

    Changes in interest rates and yield‑curve dynamics may compress net interest margin, affect asset valuations, and create liquidity pressures

    Rate and yield-curve movements could compress net interest margin, reduce fixed-rate asset values, slow loan demand and create liquidity pressure.

  • NewREGULATORY AND LEGAL RISKS

    More specifically, Busey Bank's focus on commercial banking and wealth management increases risk for customers to seek out opportunities in digital assets and real time payments, requiring enhanced risk oversight and compliance practices to ensure rapid adoption when appropriate

    Digital assets, real-time payments and changing sanctions could increase Busey’s compliance costs, operational complexity and strategic risk.

  • NewCREDIT AND LENDING RISKS

    Busey’s commercial lending activities expose it to repayment risks that may increase during periods of economic stress

    Commercial borrowers’ weakened customer collections and depreciating or hard-to-value collateral could produce outsized losses in Busey’s loan portfolio.

  • NewCREDIT AND LENDING RISKS

    Construction, land acquisition, and development loans involve heightened risks that could adversely affect Busey’s credit performance

    Construction and development loans could suffer from cost overruns, declining property values, inaccurate project estimates and permitting or environmental delays.

  • NewCREDIT AND LENDING RISKS

    Credit exposure to the energy industry may increase Busey’s vulnerability to sector-specific volatility

    Energy-sector volatility, oil and gas pricing, climate-related changes and borrower stress could increase delinquencies, charge-offs and unfunded commitment usage.

  • NewCAPITAL AND LIQUIDITY RISKS

    Busey may face challenges accessing contingent liquidity during times of market stress

    Operational shortcomings, incomplete documentation or insufficient Federal Reserve collateral could prevent Busey from accessing contingent liquidity during market stress.

  • NewCOMPETITIVE AND STRATEGIC RISKS

    Busey faces significant competition from traditional financial institutions and emerging non‑bank competitors threatening market share

    Banks, credit unions, fintechs and technology companies offering payments, credit and deposit-like products could take Busey’s market share.

  • NewCOMPETITIVE AND STRATEGIC RISKS

    Rapid technological change, digital innovation, and emerging artificial intelligence capabilities present competitive, operational, and compliance risks

    Failure to adopt or govern digital technology and generative AI could hurt competitiveness while increasing fraud, privacy, cybersecurity, compliance and vendor risks.

  • NewCOMPETITIVE AND STRATEGIC RISKS

    Acquisitions and strategic combinations are important to Busey’s growth strategy, but they involve significant regulatory, operational, financial, and strategic risks

    Acquisitions may face delayed or denied regulatory approvals, imposed conditions, integration problems and differences in systems, cultures, products or compliance programs.

  • NewContractual, Legal, and Reputational Risk

    The rapid evolution of digital assets and emerging regulatory frameworks introduces new competitive, compliance, and operational risks for Busey

    Digital-asset adoption and legislation such as the 2025 GENIUS Act could create new competitive, compliance and operational risks despite Busey offering no such products.

  • NewContractual, Legal, and Reputational Risk

    These regulatory developments may affect Busey even without offering digital‑asset products, including through increased expectations related to cybersecurity, anti‑money‑laundering controls, sanctions compliance, custody arrangements, data governance, and vendor‑risk management

    Stablecoin payments, blockchain settlements and digital wallets could shift customers away from Busey and require stronger cybersecurity, AML, sanctions, data and vendor controls.

  • NewACCOUNTING AND TAX RISKS

    Financial statements are created, in part, using estimates, assumptions, and management judgments, which, if incorrect, could result in material misstatement and adverse effect on Busey’s financial position

    Incorrect accounting estimates, especially goodwill and intangible-asset valuations, could cause material losses or future impairment charges.

  • NewACCOUNTING AND TAX RISKS

    The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods prior to the expiration of the related net operating losses and may be limited by ownership change rules under Section 382 of the Internal Revenue Code

  • NewOPERATIONAL RISKS

    Busey’s ability to attract and retain key personnel may affect future growth and earnings

  • NewOPERATIONAL RISKS

    First Busey Corporation (BUSE) | 2025 — 47

  • NewOPERATIONAL RISKS

    Severe weather, natural disasters, pandemics or other health crises, acts of war or terrorism and other external events could significantly impact Busey’s business

Dropped

  • DroppedECONOMIC AND MARKET RISKS

    Prolonged elevated interest rates followed by easing cycles create financial volatility

  • DroppedECONOMIC AND MARKET RISKS

    Declining interest rates result in reduced income from lending and investment activities, and may drive consumers to seek higher-yielding alternatives outside of traditional banking, both of which could negatively impact Busey’s liquidity and results of operations

  • DroppedREGULATORY AND LEGAL RISKS

    As Busey continues to grow in asset size and complexity, regulatory expectations and scrutiny will increase and could have a potential impact on Busey’s operations and business

  • DroppedCREDIT AND LENDING RISKS

    Declining borrower cash flows and fluctuating collateral values may lead to significant losses across Busey’s commercial loan portfolio

    Specific volatility from prolonged high rates followed by easing cycles, including margin, asset-liability and instrument-valuation effects.

  • DroppedCREDIT AND LENDING RISKS

    Real estate construction, land acquisition, and development loans are based upon estimates of costs and values associated with the complete project. These estimates may be inaccurate, and Busey may be exposed to significant losses on loans for these projects

    Falling rates could reduce lending and investment income, drive deposits toward higher-yielding alternatives and pressure liquidity.

  • DroppedCOMPETITIVE AND STRATEGIC RISKS

    Intense competition from traditional banks and fintech companies threatens market share

  • DroppedCOMPETITIVE AND STRATEGIC RISKS

    Failure to adapt to rapid technological advancements could erode competitiveness

  • DroppedCOMPETITIVE AND STRATEGIC RISKS

    Busey’s strategy of pursuing acquisitions exposes Busey to financial, execution, and operational risks that could negatively affect Busey

    Growing assets and the CrossFirst acquisition could trigger higher regulatory expectations, thresholds, reporting and compliance demands.

  • DroppedCOMPETITIVE AND STRATEGIC RISKS

    Digital asset trends introduce regulatory, competitive and scalability challenges

  • DroppedACCOUNTING AND TAX RISKS

    Financial statements are created, in part, by estimates, assumptions, and methods used by management, which, if incorrect, could cause unexpected losses in the future

  • DroppedOPERATIONAL RISKS

    Busey’s ability to attract and retain experienced management and qualified personnel is critical to sustaining growth and executing its strategic objectives. The leadership transitions associated with the CrossFirst merger highlight the importance of talent management in preserving operational continuity

  • DroppedOPERATIONAL RISKS

    Rapid adoption of generative artificial intelligence technologies introduces operational vulnerabilities

Reworded

  • 100% rewrittenREGULATORY AND LEGAL RISKS

    Changes in government policies and regulatory frameworks could adversely affect operations and profitability

    The focus shifted from election-driven policy uncertainty to local regulatory deference, the GENIUS Act, fintech and crypto risks, and broader pressures.

  • 100% rewrittenREGULATORY AND LEGAL RISKS

    Laws impacting cannabis-related businesses may have an impact on Busey’s operations and risk profile

    The discussion moved from existing Illinois and Missouri cannabis legalization to a federal executive order pursuing possible marijuana rescheduling.

  • 100% rewrittenREGULATORY AND LEGAL RISKS

    First Busey Corporation (BUSE) | 2025 — 37

    The risk changed from broad economic and compliance effects to Busey Bank’s policy of screening out cannabis- and hemp-related customers.

    Was: First Busey Corporation (BUSE) | 2024 — 36

  • 100% rewrittenCREDIT AND LENDING RISKS

    First Busey Corporation (BUSE) | 2025 — 39

    The discussion changed from acquisition credit, pricing and employee risks to construction-loan repayment depending on project completion, sales, leasing and collateral values.

    Was: First Busey Corporation (BUSE) | 2024 — 41

  • 100% rewrittenCOMPETITIVE AND STRATEGIC RISKS

    First Busey Corporation (BUSE) | 2025 — 41

    The risk now names digital wallets, peer-to-peer lending and blockchain services as disintermediation threats that could reduce loans, deposits and fee income.

    Was: First Busey Corporation (BUSE) | 2024 — 42

  • 100% rewrittenCOMPETITIVE AND STRATEGIC RISKS

    First Busey Corporation (BUSE) | 2025 — 42

    The discussion shifted from deferred-tax-asset valuation allowances to acquisition integration risks involving systems, data, cybersecurity, vendors, culture, talent and customers.

    Was: First Busey Corporation (BUSE) | 2024 — 43

  • 100% rewrittenContractual, Legal, and Reputational Risk

    First Busey Corporation (BUSE) | 2025 — 43

    The risk changed from vendor and AI-enabled cyber threats to acquisition synergies, management distraction, target pricing, goodwill and intangible-asset impairment.

    Was: First Busey Corporation (BUSE) | 2024 — 44

  • 99% rewrittenECONOMIC AND MARKET RISKS

    Regional economic vulnerabilities may heighten risks

    Busey’s footprint expanded from four regional markets to ten states, with greater emphasis on metropolitan employment, housing, development and real-estate volatility.

    Was: Regional economic vulnerabilities and reliance on key industries may heighten risks

  • 99% rewrittenOPERATIONAL RISKS

    Damage resulting from negative publicity could harm Busey’s reputation and adversely impact its business and financial condition

  • 97% rewrittenCAPITAL AND LIQUIDITY RISKS

    Liquidity risks could affect operations and jeopardize Busey’s business, financial condition, and results of operations

  • 97% rewrittenCAPITAL AND LIQUIDITY RISKS

    Failure to maintain sufficient capital to meet regulatory requirements could have material adverse effects on financial condition, liquidity, results of operations, and regulatory compliance

  • 96% rewrittenCREDIT AND LENDING RISKS

    Loan concentrations in volatile markets could increase Busey’s exposure to adverse economic conditions and heighten credit risk

    Was: Loan concentrations in volatile markets could increase Busey’s exposure to economic downturns, adversely impacting financial stability

  • 80% rewrittenREGULATORY AND LEGAL RISKS

    See “Note 18

  • 78% rewrittenOPERATIONAL RISKS

    The rising sophistication of fraudulent schemes poses a persistent challenge for financial institutions, with Busey being no exception. Fraudulent activities, such as identity theft, phishing, and unauthorized transactions, could result in financial losses, regulatory penalties, and erosion of customer trust

  • 76% rewrittenCREDIT AND LENDING RISKS

    Heightened credit risk associated with lending activities may result in insufficient credit loss provisions, which could have material adverse effects on Busey’s results of operations and financial condition

  • 68% rewrittenOPERATIONAL RISKS

    This cascading outsourcing structure adds complexity to communication and coordination, particularly when vendors operate in regions with varying regulatory standards. Risks are further amplified by geopolitical tensions, trade restrictions, or cyberattacks targeting these external partners

  • 66% rewrittenOPERATIONAL RISKS

    Technological investments drive efficiency but introduce cybersecurity risks

  • 66% rewrittenACCOUNTING AND TAX RISKS

    Busey is subject to changes in tax law and may not realize tax benefits which could adversely affect its results of operations

  • 65% rewrittenECONOMIC AND MARKET RISKS

    Economic and financial market conditions, including conditions in the states in which it operates, may adversely affect Busey’s business

    Was: Conditions in the financial market and economic conditions, including conditions in the states in which it operates, generally may adversely affect Busey’s business

  • 52% rewrittenOPERATIONAL RISKS

    Busey’s framework for managing risks may not be fully effective in mitigating risk and loss

  • 29% rewrittenACCOUNTING AND TAX RISKS

    Changes in accounting principles or guidelines could adversely affect financial reporting

  • 29% rewrittenCREDIT AND LENDING RISKS

    Elevated levels of non-performing assets could reduce Busey’s profitability and strain operational resources

    Was: High levels of non-performing assets could reduce Busey’s profitability and strain operational resources

  • 27% rewrittenECONOMIC AND MARKET RISKS

    Shifts in consumer and business behavior during economic uncertainty may impact Busey’s business

  • 25% rewrittenContractual, Legal, and Reputational Risk

    Introduction of new products and services carries financial and strategic risks

All 46 risk factors

Headings as the filing states them, in filing order.

ECONOMIC AND MARKET RISKS

  1. 01Economic and financial market conditions, including conditions in the states in which it operates, may adversely affect Busey’s business65% rewritten
  2. 02Shifts in consumer and business behavior during economic uncertainty may impact Busey’s business27% rewritten
  3. 03Regional economic vulnerabilities may heighten risks99% rewritten
  4. 04Changes in interest rates and yield‑curve dynamics may compress net interest margin, affect asset valuations, and create liquidity pressuresNew

REGULATORY AND LEGAL RISKS

  1. 05Changes in government policies and regulatory frameworks could adversely affect operations and profitability100% rewritten
  2. 06More specifically, Busey Bank's focus on commercial banking and wealth management increases risk for customers to seek out opportunities in digital assets and real time payments, requiring enhanced risk oversight and compliance practices to ensure rapid adoption when appropriateNew
  3. 07Evolving privacy, data protection, and information security laws and regulations present operational and legal challenges
  4. 08Laws impacting cannabis-related businesses may have an impact on Busey’s operations and risk profile100% rewritten
  5. 09First Busey Corporation (BUSE) | 2025 — 37100% rewritten
  6. 10Busey is or may become involved from time to time in suits, legal proceedings, information-gathering requests, investigations, and proceedings by governmental and self-regulatory agencies that may lead to adverse consequences
  7. 11See “Note 1880% rewritten

CREDIT AND LENDING RISKS

  1. 12Heightened credit risk associated with lending activities may result in insufficient credit loss provisions, which could have material adverse effects on Busey’s results of operations and financial condition76% rewritten
  2. 13Elevated levels of non-performing assets could reduce Busey’s profitability and strain operational resources29% rewritten
  3. 14Loan concentrations in volatile markets could increase Busey’s exposure to adverse economic conditions and heighten credit risk96% rewritten
  4. 15Busey’s commercial lending activities expose it to repayment risks that may increase during periods of economic stressNew
  5. 16Construction, land acquisition, and development loans involve heightened risks that could adversely affect Busey’s credit performanceNew
  6. 17First Busey Corporation (BUSE) | 2025 — 39100% rewritten
  7. 18Credit exposure to the energy industry may increase Busey’s vulnerability to sector-specific volatilityNew
  8. 19Credit quality deterioration in investment securities may result in significant realized losses, impacting Busey’s financial performance

CAPITAL AND LIQUIDITY RISKS

  1. 20Failure to maintain sufficient capital to meet regulatory requirements could have material adverse effects on financial condition, liquidity, results of operations, and regulatory compliance97% rewritten
  2. 21Liquidity risks could affect operations and jeopardize Busey’s business, financial condition, and results of operations97% rewritten
  3. 22Busey may face challenges accessing contingent liquidity during times of market stressNew

COMPETITIVE AND STRATEGIC RISKS

  1. 23If securities or industry analysts do not publish or cease publishing research reports about Busey, if they adversely change their recommendations regarding Busey’s stock, or if Busey’s operating results do not meet their expectations, the price of Busey’s stock could decline
  2. 24Busey faces significant competition from traditional financial institutions and emerging non‑bank competitors threatening market shareNew
  3. 25First Busey Corporation (BUSE) | 2025 — 41100% rewritten
  4. 26Rapid technological change, digital innovation, and emerging artificial intelligence capabilities present competitive, operational, and compliance risksNew
  5. 27Acquisitions and strategic combinations are important to Busey’s growth strategy, but they involve significant regulatory, operational, financial, and strategic risksNew
  6. 28First Busey Corporation (BUSE) | 2025 — 42100% rewritten

Contractual, Legal, and Reputational Risk

  1. 29First Busey Corporation (BUSE) | 2025 — 43100% rewritten
  2. 30Introduction of new products and services carries financial and strategic risks25% rewritten
  3. 31The rapid evolution of digital assets and emerging regulatory frameworks introduces new competitive, compliance, and operational risks for BuseyNew
  4. 32These regulatory developments may affect Busey even without offering digital‑asset products, including through increased expectations related to cybersecurity, anti‑money‑laundering controls, sanctions compliance, custody arrangements, data governance, and vendor‑risk managementNew

ACCOUNTING AND TAX RISKS

  1. 33Financial statements are created, in part, using estimates, assumptions, and management judgments, which, if incorrect, could result in material misstatement and adverse effect on Busey’s financial positionNew
  2. 34Changes in accounting principles or guidelines could adversely affect financial reporting29% rewritten
  3. 35Busey is subject to changes in tax law and may not realize tax benefits which could adversely affect its results of operations66% rewritten
  4. 36The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods prior to the expiration of the related net operating losses and may be limited by ownership change rules under Section 382 of the Internal Revenue CodeNew
  5. 37Investments in tax-advantaged projects may not generate returns as anticipated and may have an adverse impact on Busey’s financial results

OPERATIONAL RISKS

  1. 38Busey’s framework for managing risks may not be fully effective in mitigating risk and loss52% rewritten
  2. 39Technological investments drive efficiency but introduce cybersecurity risks66% rewritten
  3. 40Outsourcing dependencies could disrupt operations and increase compliance risks
  4. 41This cascading outsourcing structure adds complexity to communication and coordination, particularly when vendors operate in regions with varying regulatory standards. Risks are further amplified by geopolitical tensions, trade restrictions, or cyberattacks targeting these external partners68% rewritten
  5. 42The rising sophistication of fraudulent schemes poses a persistent challenge for financial institutions, with Busey being no exception. Fraudulent activities, such as identity theft, phishing, and unauthorized transactions, could result in financial losses, regulatory penalties, and erosion of customer trust78% rewritten
  6. 43Busey’s ability to attract and retain key personnel may affect future growth and earningsNew
  7. 44Damage resulting from negative publicity could harm Busey’s reputation and adversely impact its business and financial condition99% rewritten
  8. 45First Busey Corporation (BUSE) | 2025 — 47New
  9. 46Severe weather, natural disasters, pandemics or other health crises, acts of war or terrorism and other external events could significantly impact Busey’s businessNew

Other First Busey 10-Ks

  • FY2024 10-K risk factors
    37 risks

    CrossFirst acquisition increases integration, asset-size, regulatory, and leadership complexity.

    Filed Feb 27, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.