Risk Factors Update Summary

• The Federal Reserve increased interest rates to 5.25%-5.5%, impacting the U.S. GDP growth projection to 1.4% in 2024.
• The Company faces increased risks from cyber-attacks, with sophisticated attacks targeting confidential information.
• Market volatility and "higher for longer" interest rates pose risks to Busey's liquidity and net interest income.
• Changes in leadership structure may impact growth and earnings, with key personnel transitions.
• Busey faces increased competition for retail deposits, impacting loan demand and net interest margin.
• Retaining diverse and qualified staff is crucial for implementing strategies, with potential adverse effects.
• Busey's credit risk management may not eliminate risks, potentially leading to increased loan loss provisions.
• Risks associated with Generative Artificial Intelligence and Large Language Models could impact business operations.
• Busey's concentration of real estate loans poses risks due to fluctuating real estate values and economic impacts.
• Climate change and natural disasters pose risks to business operations, with potential operational disruptions.
• Changes in accounting principles and tax laws could affect Busey's financial reporting and earnings.
• Risks related to the unauthorized use of copyrighted materials could lead to legal challenges.
• Operational risks include potential disruptions from third-party providers and cybersecurity threats.
• Challenges related to the interpretability of models and potential biases present multi-faceted risks.