Slide 1: May 2022 Investor Presentation
May 2022 INVESTOR PRESENTATION
Slide 2: Special Note Concerning Forward-Looking Statements
2 2 Ticker: BUSE 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
Slide 3: Non-GAAP Financial Information
3 3 Ticker: BUSE Non-GAAP Financial Information This document contains certain financial information determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of the Company’s
Slide 4: Registration Statement; No Offer or Solicitation
4 4 Ticker: BUSE Registration Statement; No Offer or Solicitation This presentation is neither an offer to sell nor a solicitation of an offer to purchase any securities of First Busey Corporation. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale w
Slide 5: Table of Contents
5 5 Ticker: BUSE Table of Contents Terms of the Planned Capital Raise 6 Overview of First Busey Corporation (BUSE) 7 Investment Highlights 8 Experienced Management Team 9 Strong Regional Operating Model 10 Sizable Business Lines Provide for Innovative Solutions 11 High Quality & Growing Loan Portfol
Slide 6: Terms of the Planned Capital Raise
6 6 Ticker: BUSE Issuer First Busey Corporation (NASDAQ: BUSE) Security Subordinated Notes Due 2032 Rating Kroll: BBB Principal Amount $75 Million Type SEC Registered Term 10 Years Call Date 5 Years Use of Proceeds General corporate purposes, which may include, without limitation, providing capital
Slide 7: Overview of First Busey Corporation (BUSE)
7 7 Ticker: BUSE Unwavering Focus on 4 Pillars: ASSOCIATES, CUSTOMERS, COMMUNITIES AND SHAREHOLDERS Overview of First Busey Corporation (BUSE) Company Overview Financial Highlights (1) Non-GAAP calculation, see Appendix Among the Best + 150+ year old financial institution headquartered in CHAMPAIGN,
Slide 8: Investment Highlights
8 8 Ticker: BUSE Investment Highlights ▪ 58 branches across four states: Illinois, Missouri, Indiana, and Florida ▪ Premier commercial bank, wealth management, and payment technology solutions for individuals and businesses ▪ Attractive core deposit to total deposit ratio (98.7%)(1) and low cost of
Slide 9: Experienced Management Team
9 9 Ticker: BUSE Joined Busey in 2006 and led various finance functions prior to serving as CFO/COO and now Bank President/CEO. Mr. Elliott has played instrumental roles in executing various strategic and growth initiatives. Before joining Busey, Mr. Elliott worked for Ernst & Young. Has served as P
Slide 10: Strong Regional Operating Model
1010 Ticker: BUSE Banking Centers: 3 Deposits: $442.5MM Avg. Deposits Per Branch: $147.5MM 2022-27 Pop. Growth: 5.9% versus U.S. avg. 3.2% Banking Centers: 20 Deposits: $2.9B Avg. Deposits Per Branch: $143.2MM 2022 Pop: 2.8 Million Four distinct operating regions provide for attractive mix of custom
Slide 11: Sizable Business Lines Provide for Innovative Solutions
11 11 Ticker: BUSE (1) LTM total payments processed as of 1Q2022 (2) Busey Bank segment, excluding Wealth Management & FirsTech; excludes intracompany eliminations and consolidations as of 1Q2022 (3) Wealth Management segment as of 1Q2022 (4) FirsTech segment; Non-GAAP calculation, excludes intracom
Slide 12: High Quality & Growing Loan Portfolio
1212 Ticker: BUSE $1,545 $1,664 $1,754 $1,869 $1,875 $2,913 $2,920 $3,069 $3,120 $3,135 $423 $501 $431 $386 $445 $1,376 $1,710 $1,719 $1,739 $1,786 $6,257 $6,795 $6,972 $7,114 $7,241 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 1Q21 2Q21 3Q21 4Q21 1Q22 C
Slide 13: Top Tier Core Deposit Franchise
1313 Ticker: BUSE Top Tier Core Deposit Franchise Deposit Portfolio Composition – Q1 2022 Historical Cost of Deposits, 2015 - Q1 2022 (1) Total Deposits & Loan to Deposit Ratio Core Deposits (2) / Total Deposits (1) Quarterly effective fed funds per FRED, avg during quarter, not seasonally adjusted
Slide 14: Fully Integrated Wealth Management Platform
1414 Ticker: BUSE Fully Integrated Wealth Management Platform Six Distinct Teams Our wealth management business provides effective and high-touch solutions for high-net-worth individuals. Our clients work with a dedicated team of financial professionals, with each team member bringing their speciali
Slide 15: FirsTech Growth and Expansion of Services
15 15 Ticker: BUSE Multi-Layered Payment Technology Solutions Platform FirsTech Growth and Expansion of Services Payment Technology Solutions Platform ▪ FirsTech’s payments platform provides custom payment technology solutions through a comprehensive suite of capabilities ▪ Mobile bill pay, walk-in
Slide 16: Diversified and Significant Sources of Fee Income
1616 Ticker: BUSE ▪ Resilient, varied, and complimentary sources of fee income provide revenue diversification with heightened value amidst cycle of margin compression ▪ Noninterest income represented 34.2% of revenue (ex-securities losses) in 1Q22 ▪ Key businesses of wealth management and payment t
Slide 17: Quarterly Earnings Review
17 17 Ticker: BUSE ▪ Net interest income was $70.1 million in 1Q22 vs. $70.5 million in 4Q21 and $64.9 million in 1Q21 ▪ $1.1 million less net interest income QoQ due to two fewer days in 1Q22 than 4Q21 ▪ Net interest margin was 2.45% in 1Q22, an increase of 9 bps vs. 2.36% in 4Q21 ▪ Adjusted net in
Slide 18: Earnings Performance
1818 Ticker: BUSE $42.8 $37.5 $39.4 $41.1 $39.4 1.64% 1.32% 1.23% 1.27% 1.26% 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 Adj. PPNR Adj. PPNR / Avg Assets $ in millions Earnings Performance (1) Non-GAAP calculation, see Appendix (2) Historical key rates per quarterly Stifel dispatch Adjusted ROAA & ROAT
Slide 19: Net Interest Margin
1919 Ticker: BUSE $58.6 $59.1 $64.4 $66.4 $68.1 $2.2 $1.7 $1.8 $1.5 $1.2 $4.8 $4.3 $5.2 $3.3 $1.3 $65.5 $65.1 $71.4 $71.1 $70.6 $62.0 $63.0 $64.0 $65.0 $66.0 $67.0 $68.0 $69.0 $70.0 $71.0 $72.0 $45.0 $50.0 $55.0 $60.0 $65.0 $70.0 $75.0 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 Net Interest Income Accr
Slide 20: Interest Rate Risk Management & Sensitivity
2020 Ticker: BUSE ▪ First Busey has an asset-liability committee, whose policy is to meet 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 rat
Slide 21: Focused Control on Expenses
2121 Ticker: BUSE 54.7 61.7 67.3 64.4 63.0 54.3 58.9 59.0 59.1 62.2 52.0 58.1 58.7 57.6 59.9 50.0 52.0 54.0 56.0 58.0 60.0 62.0 64.0 66.0 68.0 70.0 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 Reported Efficiency Ratio Adjusted Efficiency Ratio Core Adj. Efficiency Ratio $54.5 $62.6 $73.5 $71.2 $70.4 $49
Slide 22: Fortress Balance Sheet
2222 Ticker: BUSE ▪ TCE/TA ratio of 7.01% at 3/31/22 (1) ▪ Capital ratios significantly in excess of well-capitalized minimums ▪ Total RBC of 15.8% and CET1 ratio of 11.9% at 3/31/22 ▪ TBV per share of $15.29 at 3/31/22 (1) ▪ Diversified portfolio, conservatively underwritten with low levels of conc
Slide 23: Robust Capital Foundation
2323 Ticker: BUSE $919 $982 $971 $959 $856 8.8% 8.2% 7.8% 7.7% 7.0% 12.8% 12.3% 12.0% 11.8% 11.9% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% $600 $650 $700 $750 $800 $850 $900 $950 $1,000 $1,050 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 TCE TCE Ratio CET1 Ratio $ in millions $1,008 $1,062 $1,061 $1,070 $1,
Slide 24: Balanced, Low-Risk, Short-Duration Investment Portfolio
2424 Ticker: BUSE $2,797 $3,461 $4,010 $4,027 $4,078 1.60% 1.40% 1.37% 1.42% 1.80% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% $00 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 Book Value Tax Equivalent Yield $ in millions Balanced, Low-Risk, Sho
Slide 25: Reserve Supports Credit & Growth Profile
2525 Ticker: BUSE Reserve Supports Credit & Growth Profile Allowance / NPLs Allowance / NPAs Allowance / Loans (ex-PPP) ▪ Reserve to loans of 1.22% (ex-PPP) as of Q1 2022 ▪ Day 1 CECL coverage was 1.06% as of Q1 2022 ▪ Non-performing loan balances have continued to decline ▪ Reserves to NPLs now equ
Slide 26: Pristine Credit Quality
2626 Ticker: BUSE Pristine Credit Quality ▪ Conservative underwriting continues to result in pristine credit quality performance ▪ Strong portfolio management that identifies early warning indicators and includes proactive engagement of the special assets group early in the credit review process ▪ N
Slide 27: High Quality Loan Portfolio: C&I
2727 Ticker: BUSE High Quality Loan Portfolio: C&I ▪ 25.9% of total loan portfolio (ex-PPP loans) ▪ Diversified portfolio results in low levels of concentrated exposure ▪ Top concentration in one industry (manufacturing) is 17% of C&I loans, or 4% of total loans ▪ Only 1.7% of C&I loans are classifi
Slide 28: High Quality Loan Portfolio: CRE
2828 Ticker: BUSE High Quality Loan Portfolio: CRE Total CRE: CRE-I and OOCRE Portfolio ▪ 49% of total loan portfolio (ex-PPP) ▪ 27% of CRE loans are owner-occupied properties that are underwritten to operating cash flow ▪ Only 1.5% of total CRE loans and 1.6% of CRE-I loans are classified ▪ Low lev
Slide 29: Appendix
APPENDIX FIRST BUSEY CORPORATION J
Slide 30: Double Leverage and Offering Proceeds
3030 Ticker: BUSE (1) Assumes a gross spread of 1.50% and one time offering costs of $400K (2) Illustrative coupon of 5.00%. Pro forma calculation includes add-back of interest expense for $40 million of 3.75% senior notes that mature May 2022 and $60 million of fixed-to-floating rate subordinated n
Slide 31: Pro Forma Regulatory Capital
3131 Ticker: BUSE (1) Includes impact of $40 million of 3.75% senior notes that mature May 2022 and redeeming $60 million of fixed-to-floating rate subordinated notes callable May 2022 that bear interest at an annual rate of 4.75% for the first five years after issuance (2) Includes tax effect of ot
Slide 32: Growing Wealth Management Business
3232 Ticker: BUSE $12.6 $13.0 $13.7 $13.7 $15.8 $6.0 $6.3 $6.1 $5.5 $7.5 47.8% 48.3% 44.1% 40.1% 47.6% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% $1.0 $3.0 $5.0 $7.0 $9.0 $11.0 $13.0 $15.0 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 Revenue Pre-Tax Net Income Pre-Tax Profit Margin $ in millions Growing W
Slide 33: Scalable Payment Technology Solutions Platform
3333 Ticker: BUSE Scalable Payment Technology Solutions Platform Customer Overview FirsTech Today Transactions processed per year (3) 32 Million $10.1 Billion Payments processed annually (2) Customers across numerous industries and growing 150+ Number of non-cash payment transactions in the United S
Slide 34: Bank and Holding Company Liquidity
3434 Ticker: BUSE Bank Liquidity ▪ As of March 31, 2022 management believed that adequate liquidity existed to meet all projected cash flow obligations ▪ First Busey’s primary sources of funds consist of deposits, investment maturities and sales, loan principal repayments and capital funds Holding C
Slide 35: Continued Investment in Technology Enterprise-Wide
3535 Ticker: BUSE ▪ Continued investment in technology, automation, and data analytics across the company ▪ Seeing tangible results as we continue to adapt to our customers’ needs ▪ Digital relationship banking team formed in 4Q20 to manage Digital Preferred Banking (1) deposit accounts ▪ Five digit
Slide 36: Environmental, Social and Governance Responsibility
3636 Ticker: BUSE Environmental, Social and Governance Responsibility Building on 150 Years of Excellence | Advancing a Comprehensive ESG Strategy Busey’s Corporate Social Responsibility work continues within the broader context of our new ESG strategic focus and framework as we build on a legacy of
Slide 37: Non-GAAP: Pre-Provision Net Revenue
3737 Ticker: BUSE Non-GAAP Financial Information Pre-Provision Net Revenue, Adjusted Pre-Provision Net Revenue, Pre-Provision Net Revenue to Average Assets, and Adjusted Pre-Provision Net Revenue to Average Assets (dollars in thousands) Three Months Ended March 31, December 31, September 30, June 30
Slide 38: Non-GAAP: Adjusted Net Income and Returns
3838 Ticker: BUSE Non-GAAP Financial Information Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Return on Average Assets, Return on Average Tangible Common Equity, and Adjusted Return on Average Tangible Common Equity (dollars in thousands, except per share amounts) Three Months
Slide 39: Non-GAAP: Adjusted Net Interest Margin
3939 Ticker: BUSE Non-GAAP Financial Information Adjusted Net Interest Margin (dollars in thousands) Three Months Ended March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Net interest income $ 70,056 $ 70,508 $ 70,755 $ 64,542 $ 64,893 Non-GAAP adjustments: Tax-equivale
Slide 40: Non-GAAP: Adjusted Noninterest Expense and Efficiency Ratio
4040 Ticker: BUSE Non-GAAP Financial Information Adjusted Noninterest Expense, Core Adjusted Expense, Efficiency Ratio, Adjusted Efficiency Ratio, and Adjusted Core Efficiency Ratio (dollars in thousands) Three Months Ended March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021
Slide 41: Non-GAAP: Tangible Book Value and Tangible Common Equity
4141 Ticker: BUSE Non-GAAP Financial Information Tangible Book Value Per Common Share (dollars in thousands, except per share amounts) As of March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Total stockholders’ equity $ 1,218,025 $ 1,319,112 $ 1,333,076 $ 1,345,691 $ 1
Slide 42: Non-GAAP: Core Loans and Core Deposits
4242 Ticker: BUSE Non-GAAP Financial Information Core Loans, Core Loans to Portfolio Loans, Core Deposits, Core Deposits to Total Deposits, and Core Loans to Core Deposits (dollars in thousands) As of March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Portfolio loans [a