Slide 1: Investor Presentation
May 2020 INVESTOR PRESENTATION 1 1
Slide 2: Special Note Concerning Forward-Looking Statements
Special Note Concerning Forward-Looking Statements Statements made in this document, other than those concerning historical financial information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial con
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This document contains financial information determined other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the Company’s performance. Management also
Slide 4: Overview of First Busey Corporation
OVERVIEW OF FIRST BUSEY CORPORATION 4 4
Slide 5: Overview of First Busey Corporation
Overview of First Busey Corporation Company Overview Branch Map • 150+ year old bank headquartered in Champaign, IL • • Full service community bank serving Illinois, St. Louis, Indianapolis, and Southwest Florida markets • Diversified lending portfolio across real estate, commercial, and retail prod
Slide 6: Investment Highlights
Investment Highlights • Established in 1868, with more than 150 years of commitment to local communities and businesses • Operating with 80 branches across four states: Illinois, Missouri, Indiana, and Florida Attractive • Experienced and proven management team Franchise • Attractive and diverse bus
Slide 7: Experienced Management Team
Experienced Management Team Van A. Dukeman President & Chief Executive Officer, First Busey Corporation Highly experienced board with Has served as President & CEO of First Busey since 2007. Dukeman was President & CEO of Main Street Trust from 1998 until its merger with First nearly 150 years of co
Slide 8: Diversified Business Model
Diversified Business Model Banking the intersection of commercial and wealth Business Investment Advisory Business Solutions Commercial Lending Investment Services Custom Consulting Business Saving Services Lockbox Processing Business Checking Services Investment Management Payment Concentrator Proc
Slide 9: Attractive Geographic Footprint
Attractive Geographic Footprint Four Distinct Operating Regions provide for attractive mix of customers and demographic opportunities Northern Gateway Banking Banking Centers: Centers: 10 29 Deposits: Deposits: $857MM $2.6B Median HHI: 2020 Pop.: $74,285 2.8 Million Central Florida Banking Banking C
Slide 10: Excellence in Acquiring & Integrating
Excellence in Acquiring & Integrating Disciplined acquisition strategy has augmented strong organic growth Prudent acquisitions with TBV earn back periods of 3 years or less August 2019 Wealth Management January 2019 AUC – $471mm Assets - $1.7bn MSA – Fort Myers AUC – $1.5bn October 2017 July 2017 B
Slide 11: Financial Summary
FINANCIAL SUMMARY FIRST BUSEY CORPORATION
Slide 12: Core Earnings Power
Core Earnings Power Core Net Income & Earnings Per Share (1) Core ROAA & ROATCE (1) $ in thousands $31,782 $30,535 14.9% $29,498 14.5% 14.5% 14.3% $26,614 1.24% 1.25% 1.30% 1.22% $15,479 $0.53 $0.55 $0.57 $0.50 7.4% $0.28 0.64% 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2019 Q1 2019 Q2 2019 Q3 2019 Q4
Slide 13: Diversified and Significant Source of Fee Income
Diversified and Significant Source of Fee Income Overview Non-Interest Income / Operating Revenue Anchored by wealth management and payment $ in millions $104.4 $103.6 $101.3 processing, fee income represented $94.3 $97.0 approximately 29% of total revenues over the last 12 months Strong source
Slide 14: Resilient Wealth Management Platform
Resilient Wealth Management Platform Wealth – Assets Under Care Overview $ in thousands $9,696 Provides a full range of asset management, investment and fiduciary YE 2019 to Q1 2020: $9,409 S&P 500: (20%) services to individuals, businesses and BUSE AUC: (8%) foundations, tax preparation, philanth
Slide 15: Focused Control on Expense
Focused Control on Expense Core Non-Interest Expense & Efficiency Ratio (1) Overview $ in thousands $59,157 The Company continues to manage its $58,315 $58,091 $57,812 efficiency ratio by limiting nominal costs, as $1,017 well as leveraging efficiencies throughout its branch network as a result of
Slide 16: Protecting a Strong Balance Sheet
Protecting a Strong Balance Sheet • Capital ratios significantly in excess of well-capitalized minimums • Regulatory capital relief on CECL implementation and PPP loans Robust • TCE/TA ratio of 9.22% at 3/31/20 Capital Foundation • Total RBC of 13.85% at 3/31/20 • Suspended share repurchase program
Slide 17: Robust Capital Foundation
Robust Capital Foundation Tangible Common Equity Ratio (1) Leverage Ratio $ in millions $ in millions $922 $922 $784 $718 10.4% 9.8% 9.9% 9.9% 4.0% 2017 Q4 2018 Q4 2019 Q4 2020 Q1 Tier 1 Capital Leverage Ratio Min Ratio Total Capital Ratio Consolidated Capital as of 3/31/2020 $ in millions 14.8% $ i
Slide 18: High Quality Loan Portfolio
High Quality Loan Portfolio Loan Portfolio Composition as of 3/31/2020 Loan Geographic Segmentation Other Florida 1% Indiana 4% HELOCs 5% 6% Non-Owner 1-4 Family Occupied Residential CRE 18% 28% Missouri 25% Illinois 66% Owner Occupied Commercial & CRE Industrial 14% Construction & 26% Development 7
Slide 19: High Quality Loan Portfolio: C&I
High Quality Loan Portfolio: C&I C&I Portfolio Overview C&I Loans by Industry 26% of total loan portfolio $ in thousands Diversified portfolio results in low levels of 2020 Q1 % of Total Classified Loan concentrated exposure NAICS Sector Balance Loans Balances Manufacturing $259,400 3.8% $12,542
Slide 20: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Manufacturing Loans % of COVID-19 Classified 2020 Q1 % of Total % Balances Loans in Total Manufacturing Loans: Subsector Balance Loans Modified Subsector $259 Million or 3.8% of Transportation Equipment $58,930 0.9% 14.1% 8.8% Loan P
Slide 21: High Quality Loan Portfolio: CRE
High Quality Loan Portfolio: CRE (1) $ in thousands CRE Portfolio Overview Investor Owned CRE Loans by Industry (1) 48% of total loan portfolio 28% of CRE loans are owner-occupied Property Type 2020 Q1 Balance % of Total Loans Classified Loan Balances Only 1.2% of CRE loans are classified Reta
Slide 22: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Retail Trade & Retail CRE Loans Mixed Use - % of Retail Community COVID-19 Classified Shopping Retail 2020 Q1 % of Total % Balances Weighted Loans in 12% Center Center Retail Type Balance Loans Modified Avg LTV Segment 10% 8% Strip C
Slide 23: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Food Services Loans Full-Service % of Limited- COVID-19 Classified Restaurant Service 2020 Q1 % of Total % Balances Weighted Loans in Ops. Other Restaurant Food Services Type Balance Loans Modified Avg LTV Segment 12% 1% Ops. Full-Se
Slide 24: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Top 50 by Sector as of 3/31/2020 % of Top 50 Top 50 lending Sector/Property Type Commitment Balances Commitment Total Manufacturing Relationships: Loans: $1.3 Billion Student Housing $267,946 $230,898 15.9% $259 Million or 3.8% or 19
Slide 25: Entering Credit Cycle from Position of Strength
Entering Credit Cycle from Position of Strength Overview NPAs / Assets Conservative underwriting and strong asset $ in millions quality allow the Company to enter the economic downturn well-prepared Non-performing assets have decreased over time while total assets have increased significantly
Slide 26: Adoption of CECL Fortifies Loan Loss Reserves
Adoption of CECL Fortifies Loan Loss Reserves Allowance / Loans Allowance / NPLs $ in millions $ in thousands Allowance / NPAs Provision Coverage / Net Charge-offs $ in thousands $36,974 $32,564 $30,765 $28,648 274% 187% 165% 137% 2017 Q4 2018 Q4 2019 Q4 2020 Q1 NPAs Allowance/ NPAs (1) 4Q17 provisi
Slide 27: Strong Core Deposit Franchise
Strong Core Deposit Franchise Overview Deposit Composition as of 03/31/2020 Strong core deposit to total deposit ratio (96%)(1) $ in millions Non- Core deposits are 90% of total liabilities(1) interest bearing Late in 1Q and early in 2Q reduced cost of non- Savings & demand, time deposits from
Slide 28: Securities Portfolio
Securities Portfolio Securities Composition by Type Securities Composition by Maturity U.S. Treasury Securities, 2% Govt Corporate, Corporations/ <1 Year 6% Agencies, 5% 8% State / 1-5 Years Political 16% 16% > 10 5-10 Commercial Years Years Residential MBS, 14% 62% 14% MBS, 57% $ in thousands Gross
Slide 29: Liquidity Detail
Liquidity Detail Bank Liquidity Contingency Liquidity • As of March 31, 2020, management believed that $ in millions adequate liquidity existed to meet all projected cash flow Total obligations Balances • First Busey’s primary sources of funds consist of deposits, Unpledged Securities $1,122 investm
Slide 30: Interest Rate Risk Management & Sensitivity
Interest Rate Risk Management & Sensitivity • First Busey’s asset-liability committee meets at least quarterly to review current market conditions and to structure the Consolidated Balance Sheets to optimize stability in net interest income in consideration of projected future changes in interest ra
Slide 31: Summary
Summary Maintain Strong Core Foster Conservative and Deposits Stable Risk Culture 96% Core Deposits/Deposits(1) 0.32% Non-Performing Assets/Assets 0.62% Cost of Deposits 310% Reserves/NPLs Consistently Hold a Strong Cultivate Diversified Revenue Capital Position Streams 29% LTM Noninterest Income/Op
Slide 32: COVID-19 Pandemic Response
COVID-19 PANDEMIC RESPONSE 3232
Slide 33: Protecting the Well-Being of Associates and Customers
Protecting the Well-Being of Associates and Customers As a result of comprehensive advance planning, Busey was able to rapidly implement a pandemic business continuity plan to protect Busey’s associates and customers. COVID-19 Response Actions Established COVID-19 crisis leadership team to assess,
Slide 34: Supporting Financial Needs of Customers
Supporting Financial Needs of Customers COVID-19 Response Actions Commercial and Small Business Clients Busey is offering several options to Busey’s qualifying business customers to help them through this period of economic disruption. Various six-month modification programs with opt-ins from the
Slide 35: Participating in the CARES Act Paycheck Protection Program
Participating in the CARES Act Paycheck Protection Program Small Business Applications & Loan Funding As part of the CARES Act, Congress appropriated approximately $349 billion for the creation of the Paycheck Protection Program (PPP) as well as approving on April 24, 2020 an additional $310 billi
Slide 36: Appendix
APPENDIX FIRST BUSEY CORPORATION
Slide 37: Quarterly Earnings Review
Quarterly Earnings Review • Net Interest Margin impacted by Fed rate cuts of 150 bps during the quarter Net Interest • NIM decreased 7 bps vs 4Q19 from 3.27% to 3.20% Income • 15 bps decline in asset yields offset by 8 bps improvement in funding costs • Accretion income accounted for 13 bps of NIM,
Slide 38: Current Expected Credit Loss (CECL) Implementation
Current Expected Credit Loss (CECL) Implementation On January 1, 2020, the Company adopted ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” commonly referenced as the CECL model. Upon adoption of CECL, Busey recognized: - $16.8 million increase in the allowance for
Slide 39: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Three Months Ended March 31, December 31, September 30, June 30, March 31, ($ in thousands) 2020 2019 2019 2019 2019 Net interest income $ 69,433 $ 71,936 $ 73,476 $ 73,428 $ 68,383 Non-interest income 27,517 31,638 30,936 27,896 25,945 Less net losses/gains on sal
Slide 40: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Three Months Ended March 31, December 31, September 30, June 30, March 31, ($ in thousands) 2020 2019 2019 2019 2019 Reported: Net Interest income $ 69,433 $ 71,936 $ 73,476 $ 73,428 $ 68,383 Tax-equivalent adjustment 730 781 778 777 677 Tax-equivalent interest inc