Slide 1: 4Q22 Quarterly Earnings Supplement
4Q22 QUARTERLY EARNINGS SUPPLEMENT January 24, 2023
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 co
Slide 3: Non-GAAP Financial Information
Non-GAAP Financial Information This document contains certain financial information determined by methods other than GAAP. Management uses these non- GAAP measures, together with the related GAAP measures, in analysis of the Company’s performance and in making business decisions, as well as comparis
Slide 4: Table of Contents
Table of Contents Overview of First Busey Corporation (BUSE) 5 Sizable Business Lines Provide for Innovative Solutions 6 Investment Highlights 7 Experienced Management Team 8 Strong Regional Operating Model 9 High Quality Loan Portfolio 10 Top Tier Core Deposit Franchise 11 Deposit Trends 12 Diversi
Slide 5: Overview of First Busey Corporation (BUSE)
Overview of First Busey Corporation (BUSE) Company Overview + 150+ year old financial institution headquartered in CHAMPAIGN, IL Regional operating model serving 4 regions: NORTHERN, CENTRAL, GATEWAY, FLORIDA AMONG THE BEST Commercial Banking Wealth Management Payment Tech Solutions Unwavering Focus
Slide 6: Sizable Business Lines Provide for Innovative Solutions
Sizable Business Lines Provide for Innovative Solutions Diversified financial holding company with comprehensive and innovative financial solutions for individuals and businesses Full suite of diversified financial Wealth & asset management services Payment platform that enables the products for ind
Slide 7: Investment Highlights
Investment Highlights ▪ 58 branches across four states: Illinois, Missouri, Indiana, and Florida Attractive Franchise ▪ Premier commercial bank, wealth management, and payment technology solutions for that Provides Innovative individuals and businesses ▪ Attractive core deposit to total deposit rati
Slide 8: Experienced Management Team
Experienced Management Team Van A. Dukeman Robin N. Elliott Jeffrey D. Jones Chairman, President & CEO, President & CEO, Busey Bank EVP & CFO First Busey Corp. President & CEO, FirsTech Has served as President & CEO of First Busey since Joined Busey in 2006 and led various finance Joined Busey in Au
Slide 9: Strong Regional Operating Model
Strong Regional Operating Model Our go-to-market strategy utilizes a regional operating model where we combine the power of commercial & wealth to provide a broad set of solutions for our customers Northern Gateway Banking Banking Centers: Centers: 10 20 Deposits: Deposits: $1.9 billion $2.8 billion
Slide 10: High Quality Loan Portfolio
High Quality Loan Portfolio Loan Portfolio Composition – Q4 2022 Loan Portfolio Regional Segmentation (2) MRQ Yield on Loans 4.44% Yield on MRQ New & Renewed Production 6.18% Classified Lns / Capital (1) 7.7% New Originations in 2022 ■ Approx. 70% of new production was due to growth within existing
Slide 11: Top Tier Core Deposit Franchise
Top Tier Core Deposit Franchise Deposit Portfolio Composition – Q4 2022 Total Deposits & Loan-to-Deposit Ratio $ in millions $10,769 $10,592 $10,397 $10,601 $10,071 $ 12 ,0 00 10 0.0% $10,808 $10,617 $10,506 $10,577 $10,338 95 0 . % $ 10 ,0 00 90 0 . % 85 0 . % $ 8, 00 0 80 0 . % MRQ Avg Cost of Dep
Slide 12: Deposit Trends
Deposit Trends Historical Cost of Deposits, 2015 – Q4 2022 (1) Incremental Quarterly Deposit Betas 4.0% BUSE Cost of Deposits +46% 3.5% Effective Fed Funds Rate (Quarter Average) 3.0% 2.5% 2.0% 1.5% +18% +17% +14% 1.0% 0.5% +6% +6% +6% +3% +3% +1% +0% 0.0% -2% 2022 Q2 2022 Q3 2022 Q4 Retail Commerci
Slide 13: Diversified and Significant Sources of Fee Income
Diversified and Significant Sources of Fee Income Noninterest Income / Total Revenue (1) ▪ Noninterest income represented 24.1% of revenue $ in millions 90.0% $120.2 (ex-securities gains/losses) in 4Q22 $120.0 $117.2 $106.9 80.0% $105.6 $105.9 $91.1 $86.3 ▪ Key businesses of wealth management and pa
Slide 14: Fully Integrated Wealth Management Platform
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 Private Wealth Advisor professionals, with each team member bringing their spe
Slide 15: Wealth Management
Wealth Management Wealth - Assets Under Care ▪ Assets Under Care (AUC) of $11.1 billion, a QoQ increase $ in millions of $313 million $12,731 ▪ AUC YoY decrease of $1.7 billion was predominantly due to $12,329 reduction in market valuations and pressured by outsized $11,454 one-time, nonrecurring ou
Slide 16: Scalable Payment Technology Solutions Platform
Scalable Payment Technology Solutions Platform Renew & Expand Core Business Innovating for Growth BaaS Solution SMB Vertical ▪ Money movement that allows our customers to accelerate revenue realization ▪ Out-of-the-box customized ▪ Turnkey application payment solution with attractive & that enables
Slide 17: FirsTech
FirsTech ▪ LTM revenue of $21.8 million, an increase of 11% over the prior twelve-month $11 Payments processed in 2022 35 Transactions processed in 2022 period billion million ▪ Continue to invest and build-out the BaaS offering initiative; hired and trained four Revenue Growth (1) new associates fo
Slide 18: Net Interest Margin
Net Interest Margin $ 10 0, 00 0 Net Interest Income (1) Net Interest Margin (1) $ in millions $91.7 3.76% 3.31% $ 90 ,0 00 $86.8 3.24% $0.5 2.91% 3.00% $0.1 2.57% 2.66% 2.68% 2.99% $ 80 ,0 00 $76.5 $0.8 2.36% 2.45% 2.66% $71.1 $70.6 $0.6 2.41% NIM up: 2.28% $ 70 ,0 00 $3.3 $1.3 24 bps vs. 3Q22 $1.5
Slide 19: Focused Control on Expenses
Focused Control on Expenses Noninterest Expense ▪ Adjusted core expenses(1) of $67.2 million in 4Q22 $75.0 $ in millions $74.0 $73.7 ▪ Continue to be mindful and diligent on expenses, dialing back Noninterest Exp. new hires and targeting critical replacements only; focusing on $71.2 $70.0 harvesting
Slide 20: Continued Investment in Technology Enterprise-Wide
Continued Investment in Technology Enterprise-Wide 2022 Tech Investment Highlights Investment Legend Enhanced FirsTech launched new one-time payments platform Customer for Busey Bank customers Experience Scale & Efficiency Launched integrated payables platform, offering commercial clients a portal t
Slide 21: Rising Digital Banking Adoption
Rising Digital Banking Adoption Mobile engagement of customers continues growth trajectory as online banking reaches maturity stage Consumer Monthly Active Users (1) Commercial Quarterly Active Users (2) Mobile MAU Online Banking MAU Mobile QAU Online Banking QAU 640 618 120 , 00 90,000 2,700 86,762
Slide 22: Fortress Balance Sheet
Fortress Balance Sheet ▪ Capital ratios significantly in excess of well-capitalized minimums ▪ Total RBC of 16.1% and CET1 ratio of 12.0% at 12/31/22 (1) Robust Capital ▪ TCE/TA ratio of 6.60% at 12/31/22 (2) Foundation ▪ TBV per share of $14.14 at 12/31/22 (2) ▪ Raised quarterly dividend by 4.3% ($
Slide 23: Robust Capital Foundation
Robust Capital Foundation Tangible Common Equity (1) & CET1 Ratios (2) Total Capital Ratio (2) $ in millions $ in millions 12.0% $1, 000 13. 0% 11.8% 11.9% 11.8% 11.8% 16.6% 12. 0% 15.8% 16.0% 16.1% 15.7% $950 $959 11. 0% $900 $577 $535 $554 $479 $494 10. 0% $850 $856 9.0% $800 $802 $791 8.0% $750 7
Slide 24: Pristine Credit Quality
Pristine Credit Quality ▪ Conservative underwriting leads to pristine credit quality NPAs / Assets ▪ CRE factors of DSCR, Debt Yield, & LTV stressed for effective $ in millions gross income decline and interest & cap rate stress $12,860 ▪ C&I factors including core, operating, traditional cash flows
Slide 25: Reserve Supports Credit & Growth Profile
Reserve Supports Credit & Growth Profile Allowance / Loans (ex-PPP) $ in millions ▪ Reserve to loans of 1.19% (ex-PPP) 1.59% ▪ Day 1 CECL coverage was 1.06% $7,725 $7,114 $6,687 $6,368 $5,568 ▪ Non-performing loan balances remain near 1.24% historically low levels and decreased by 1.19% $0.9 million
Slide 26: Balanced, Low-Risk, Short-Duration Investment Portfolio
Balanced, Low-Risk, Short-Duration Investment Portfolio Investment Portfolio Composition – Q4 2022 ▪ BUSE carried $918 million in held-to-maturity (HTM) securities as of 12/31/22 ▪ Transferred a portion of the portfolio comprised of Agency RMBS & CMBS from available-for-sale (AFS) to HTM during 1Q22
Slide 27: Actively Managing Asset-Sensitive Balance Sheet
Actively Managing Asset-Sensitive Balance Sheet ▪ Balance sheet remains asset-sensitive, working towards becoming Annual % Change in Net Interest Income more rate neutral under Shock Scenarios ▪ A +100 bps rate shock for Year 1 is down to +3.0% from +4.6% in 3Q22 ▪ A -100 bps rate shock for Year 1 i
Slide 28: Quarterly Earnings Review
Quarterly Earnings Review ▪ Net interest income was $91.1 million in 4Q22 vs. $86.3 million in 3Q22 and $70.5 million in 4Q21 ▪ Net interest margin (1) was 3.24% in 4Q22, an increase of 24 bps vs. 3.00% in 3Q22 Net Interest ▪ Adjusted net interest margin (1) (ex-PAA) was 3.22% in 4Q22, an increase o
Slide 29: Earnings Performance
Earnings Performance Adjusted Net Income & Earnings Per Share (1) Adjusted ROAA & Adjusted ROATCE (1) $40.0 $ in millions $1. 20 20. 0% 1.70% 18. 0% 19.0% $36.4 $35.0 $36.3 $1. 00 17.8% 1.50% $34.3 16. 0% $30.0 $30.1 1.30% 14. 0% $29.1 $0. 80 14.3% 14.6% $25.0 $0.65 $0.65 $0.61 12. 0% 13.0% 1.10% $0
Slide 30: Environmental, Social and Governance Responsibility
Environmental, Social and Governance Responsibility Building on 150 Years of Excellence | Advancing a Comprehensive ESG Strategy Reduced energy usage by over 1.5 million kWh Launched the Busey Green Team, a voluntary since 2020 across 20 buildings, avoiding over associate resource group for continui
Slide 31: Appendix
APPENDIX FIRST BUSEY CORPORATION
Slide 32: High Quality Loan Portfolio: C&I
High Quality Loan Portfolio: C&I ▪ 25.5% of total loan portfolio (ex-PPP loans) C&I Loans by Sector (ex-PPP) $ in thousands 12/31/22 12/31/22 ▪ All C&I loans are underwritten to 1.20x FCCR requirement and RLOCs greater than $1 million require a monthly borrowing base Balances % of Total Classified N
Slide 33: High Quality Loan Portfolio: CRE
High Quality Loan Portfolio: CRE Owner Occupied CRE Loans by Property Type Investor Owned CRE Loans by Property Type (1) $ in thousands 12/31/22 $ in thousands 12/31/22 12/31/22 % of Total Classified 12/31/22 % of Total Classified Property Type Balances Loans Balances Property Type Balances Loans Ba
Slide 34: Non-GAAP Financial Information
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 Years Ended December 31, September 30, December 31, December 3
Slide 35: Non-GAAP Financial Information
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 Ended Years Ended
Slide 36: Non-GAAP Financial Information
Non-GAAP Financial Information Adjusted Net Interest Income and Adjusted Net Interest Margin (dollars in thousands) Three Months Ended Years Ended December 31, September 30, December 31, December 31, December 31, 2022 2022 2021 2022 2021 Net interest income $ 91,149 $ 86,305 $ 70,508 $ 323,438 $ 270
Slide 37: Non-GAAP Financial Information
Non-GAAP Financial Information Adjusted Noninterest Expense, Adjusted Core Expense, Efficiency Ratio, Adjusted Efficiency Ratio, and Adjusted Core Efficiency Ratio (dollars in thousands) Three Months Ended Years Ended December 31, September 30, December 31, December 31, December 31, 2022 2022 2021 2
Slide 38: Non-GAAP Financial Information
Non-GAAP Financial Information Tangible Book Value Per Common Share (dollars in thousands, except per share amounts) As of December 31, September 30, June 30, March 31, December 31, 2022 2022 2022 2022 2021 Total stockholders' equity $ 1,145,977 $ 1,106,588 $ 1,161,957 $ 1,218,025 $ 1,319,112 Goodwi
Slide 39: Non-GAAP Financial Information
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 December 31, September 30, June 30, March 31, December 31, 2022 2022 2022 2022 2021 Portfolio loans [a] $ 7,725,702 $