FIRST BUSEY CORP /NV/BUSE

FIRST BUSEY CORP /NV/ Leases Disclosure

10-KFiled Feb 26, 20263 min read
NOTE 7. LEASES
Busey as The Lessee
Busey’s leases consisting primarily of real estate leases for banking centers, ATM locations, and office space, as well as equipment leases. The following table summarizes lease-related balances that Busey reported on its Consolidated Balance Sheets:
As of December 31,
(dollars in thousands)Location20252024
Lease balances
Right of use assets:
Operating leases
Other assets$30,204 $10,608 
Finance leases
Premises and equipment, net5,155 — 
Total right of use assets
$35,359 $10,608 
Lease liabilities:
Operating leases
Other liabilities$32,597 $11,040 
Finance leases
Long-term borrowings6,223 — 
Total lease liabilities
$38,820 $11,040 
Lease terms are summarized in the following table:
As of December 31,
20252024
Lease terms
Weighted average remaining lease terms:
Operating leases
7.41 years7.55 years
Finance leases
16.26 yearsN/A
Weighted average discount rates:
Operating leases
4.24 %3.77 %
Finance leases
5.10 %N/A
The following table presents lease costs that Busey reported on its Consolidated Statements of Income:
Years Ended December 31,
(dollars in thousands)Location202520242023
Lease costs
Operating lease costs:
Premises rent expense
Net occupancy expense of premises$5,891 $2,335 $2,379 
Equipment rent expense
Furniture and equipment expenses29 17 16 
Finance lease costs:
Amortization expense
Net occupancy expense of premises269 — — 
Interest expense
Long-term borrowings267 — — 
Variable lease costs
Net occupancy expense of premises60 58 38 
Short-term lease costs
Net occupancy expense of premises58 83 50 
Total lease cost
$6,574 $2,493 $2,483 
Cash paid for amounts included in the measurement of lease liabilities is presented in the following table:
Years Ended December 31,
(dollars in thousands)202520242023
Cash flows related to leases
Operating cash flows from operating leases
$10,185 $3,992 $4,173 
Operating cash flows from finance leases
267 — — 
Financing cash flows from finance leases
141 — — 
Right of use assets obtained in exchange for operating lease liabilities1
25,590 1,579 231 
Right of use assets obtained in exchange for finance lease liabilities1
6,365 — — 
___________________________________________
1.The year ended December 31, 2025, included $23.2 million for operating and $6.4 million for financing right of use assets recognized in connection with the acquisition of CrossFirst. The year ended December 31, 2024, included $0.1 million right of use assets recognized in connection with the acquisition of M&M, and an additional $0.7 million recognized in connection with a lease amendment that was executed subsequent to the M&M acquisition for a lease that was obtained in that acquisition. Additional information about assets and liabilities obtained in business combinations can be found in “Note 2. Business Combinations.”
Future undiscounted payments for leases with initial terms of one year or more are presented in the table below:
As of
December 31, 2025
(dollars in thousands)Operating LeasesFinance Leases
Rent commitments
2026$6,255 $490 
20275,929 527 
20285,406 540 
20294,407 540 
20303,505 540 
Thereafter12,690 6,625 
Total undiscounted cash flows38,192 9,262 
Less: Amounts representing interest5,595 3,039 
Present value of net future minimum lease payments$32,597 $6,223 
As of December 31, 2025, Busey had commitments totaling $6.0 million for three lease contracts with future accounting commencement dates.
Busey as The Lessor
Busey leases office and parking spaces to outside parties. Revenues recorded in connection with these leases, reported in other income on Busey’s Consolidated Statements of Income, are summarized in the table below:
Years Ended December 31,
(dollars in thousands)202520242023
Rental income$860 $820 $724 
Noncancellable terms for these leases, all of which are operating leases, extend through 2030. Under the terms of these lease agreements, Busey is entitled to receive aggregate future minimum lease payments as shown in the table below:
(dollars in thousands)As of
December 31, 2025
Rents to be received
2026$804 
2027515 
2028377 
2029197 
2030117 
Thereafter— 
Total lease payments from operating leases$2,010 
For additional information about Busey’s accounting policies related to leases, see “Leases” in “Note 1. Significant Accounting Policies.”

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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