Slide 1: 3Q20 Quarterly Earnings Supplement
3Q20 QUARTERLY EARNINGS SUPPLEMENT October 27th, 2020
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 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: Table of Contents
Table of Contents Overview of First Busey Corporation (BUSE) 5 Diversified Business Model 6 Attractive Geographic Footprint 7 Experienced Management Team 8 Investment Highlights 9 Protecting a Strong Balance Sheet 10 Robust Capital Foundation 11 High Quality Loan Portfolio 12 Update on COVID - Relat
Slide 5: Overview of First Busey Corporation (BUSE)
Overview of First Busey Corporation (BUSE) 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
Slide 6: 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 7: 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: 8 24 Deposits: Deposits: $1.1B $2.7B Avg. Deposits Avg. Deposits Per Branch: Per Branch: $137.5MM $112.5MM Median H
Slide 8: Experienced Management Team
Experienced Management Team Van A. Dukeman Chairman, President & Chief Executive Officer, First Busey Corporation Highly experienced board with Has served as President & CEO of First Busey since 2007. Mr. Dukeman was nearly 150 years of combined President & CEO of Main Street Trust from 1998 until i
Slide 9: Investment Highlights
Investment Highlights • Established in 1868, with more than 150 years of commitment to local communities and businesses • Operating with 68 branches across four states: Illinois, Missouri, Indiana, and Florida (1) Attractive • Experienced and proven management team Franchise • Attractive and diverse
Slide 10: Protecting a Strong Balance Sheet
Protecting a Strong Balance Sheet • Capital ratios significantly in excess of well-capitalized minimums Robust • Regulatory capital relief on CECL implementation and PPP loans Capital • TCE/TA ratio of 8.88% at 9/30/20(1) Foundation • Total RBC of 16.59% at 9/30/20 • TBV per share of $16.32 at 9/30/
Slide 11: Robust Capital Foundation
Robust Capital Foundation Tangible Common Equity Ratio (1) Leverage Ratio (2) ($ in m $ in millions) illions $ in m illions 10.4% 9.8% 9.9% 9.9% 9.4% 9.4% 9.5% 9.3% 9.2% 8.9% 8.4% 8.4% $865 $864 $884 $905 $922 $922 $941 $964 $703 4% $638 $784 $718 2017 Q4 2018 Q4 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2017
Slide 12: High Quality Loan Portfolio
High Quality Loan Portfolio Loan Portfolio Composition as of 09/30/2020 Loan Portfolio Geographic Segmentation (1) Other Florida HELOCs0% 5% 5% Missouri 1-4 Family Residential Commercial & 25% 16% Industrial 32% Indiana Construction & Illinois 5% Development 65% 6% Owner Non-Owner Occupied CRE Occup
Slide 13: High Quality Loan Portfolio: C&I
High Quality Loan Portfolio: C&I C&I Portfolio Overview C&I Loans by Sector (ex-PPP) ▪ 24% of total loan portfolio (ex-PPP loans) $ in thousands 9/30/20 % of Total 9/30/20 ▪ Diversified portfolio results in low levels of Balances Loans Classified NAICS Sector (ex-PPP) (ex-PPP) Loans concentrated exp
Slide 14: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Manufacturing Loans 10/21/20 9/30/20 % of Total Active 9/30/20 % of 9/30/20 Balances Loans Deferral Classified Category PPP Subsector (ex-PPP) (ex-PPP) Balances Balances Classified Balances Total Manufacturing Transportation Equipmen
Slide 15: High Quality Loan Portfolio: CRE
High Quality Loan Portfolio: CRE $ in thousands Owner Occupied CRE Loans by Industry Investor Owned CRE Loans by Industry (1) 9/30/20 % of Total 9/30/20 9/30/20 % of Total 9/30/20 Balances Loans Classified Balances Loans Classified Property Type (ex-PPP) (ex-PPP) Loan Balances Property Type (ex-PPP)
Slide 16: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Retail Trade & Retail CRE Loans 10/21/20 9/30/20 % of Total Active % of Classified 9/30/20 Balances Loans Deferral Weighted Loans in PPP Retail Type (ex-PPP) (ex-PPP) Balances Avg LTV Segment Balances Strip Center $286,536 4.5% $25,1
Slide 17: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Food Services Loans 10/21/20 9/30/20 % of Total Active % of Classified 9/30/20 Balances Loans Deferral Weighted Loans in PPP Food Services (ex-PPP) (ex-PPP) Balances Avg LTV Segment Balances Full-Service Restaurant CRE $68,316 1.1% $
Slide 18: Update on COVID-Related Deferral & Modification Trends
Update on COVID –Related Deferral & Modification Trends Commercial and Small Business Clients ▪ Busey offered 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 customer in 90
Slide 19: Update on COVID-Related Deferral & Modification Trends
Update on COVID –Related Deferral & Modification Trends Personal Loan and Mortgage Customers Retail Payment Relief Program ($ in thousands) Mortgage & Retail portfolio loans (1) 10/15/20 10/15/20 # of Loans $ Balances Total Portfolio Loans 21,534 $1,215,144 All Loans that took a deferral (A + B) 980
Slide 20: 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 21: Entering Credit Cycle from Position of Strength
Entering Credit Cycle from Position of Strength Overview ▪ Conservative underwriting and strong asset quality NPAs / Assets allowed the Company to enter the economic $ in m illions downturn well-prepared ▪ Non-performing assets have decreased over time 9,696 10,540 while total assets have increased
Slide 22: Current Expected Credit Loss (CECL) Model
Current Expected Credit Loss (CECL) Model ▪ 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, we recognized: - $16.8 million increase in our allowance for credit loss
Slide 23: Adoption of CECL Fortifies Loan Loss Reserves
Adoption of CECL Fortifies Loan Loss Reserves Allowance / Loans (ex-PPP) Allowance / NPLs $ in m illions $ in thousands 1.55% $36,598 $6,687 $6,385 $29,507 409% $27,365 $5,520 $5,568 $24,177 0.97% 0.91% 0.80% 196% 182% 138% 2017 Q4 2018 Q4 2019 Q4 2020 Q3 2017 Q4 2018 Q4 2019 Q4 2020 Q3 Ex-PPP Loans
Slide 24: Ample Sources of Liquidity
Ample Sources of Liquidity 2020 Q3 Average Deposit Composition Total Deposits & Loan to Deposit Ratio $ in m illions $ in m illions CD > 250k 3% $8,910 $8,643 CD < 250k $7,973 $7,902 12% 90.8% Non-Int DDA 88.7% 84.8% 84.6% 82.4% $6,249 81.1% 30% $6,126 Savings & MMDA 29% Int DDA 26% 2017 Q4 2018 Q4
Slide 25: Quarterly Earnings Review
Quarterly Earnings Review • Net Interest Income declined 1.4% from $70.8 million in Q2 to $69.8 million in Q3 • Net Interest Margin decreased 17 bps vs Q2 from 3.03% to 2.86% • Core NIM ex-accretion income declined 18 bps from 2.93% to 2.75% Net-Interest • Accretion income accounted for 11 bps of NI
Slide 26: Core Earnings Power
Core Earnings Power Core Net Income & Earnings Per Share (1) Core ROAA & ROATCE (1) ($ in thousands $ in millions) $32,803 14.9% 14.8% $31,782 14.5% 14.5% $30,535 $29,498 12.2% $26,191 1.30% 1.24% 1.25% 1.22% $0.60 $0.55 $0.57 $0.53 7.4% 1.02% $15,479 $0.48 $0.28 0.64% 2019 Q2 2019 Q3 2019 Q4 2020 Q
Slide 27: Net Interest Margin
Net Interest Margin Net Interest Income & Net Interest Margin ($ in millions) • Net impact of PPP loans and corresponding excess 74.3 liquidity drove down NIM 4 bps linked quarter 72.7 3.0 71.5 • Subordinated debt issuance of $125mm on June 1, 70.4 3.0 70.2 2020 impacted NIM linked quarter by 7 bps
Slide 28: Diversified and Significant Sources of Fee Income
Diversified and Significant Sources of Fee Income Overview Non-Interest Income / Total Revenue ▪ Resilient, varied and complimentary sources $ in m illions of fee income provide revenue diversification $101.3 $104.4 $103.6 $102.0 $97.0 $98.8 with heightened value amidst cycle of margin compression ▪
Slide 29: Resilient Wealth Management Platform
Resilient Wealth Management Platform Wealth - Assets Under Care ($ in millions millions) Overview $ in $9,696 $9,503 ▪ Provides a full range of asset management, $9,409 investment and fiduciary services to $9,021 $8,925 individuals, businesses and foundations, tax preparation, philanthropic advisory
Slide 30: Focused Control on Expenses Driving Efficiency Gains
Focused Control on Expenses Driving Efficiency Gains Non-Interest Expense Overview ($ in millions) ▪ The Company continues to drive significant $68,121 $65,490 expense reductions to offset the current no $2,360 growth, low rate environment $2,681 $60,514 $7,670 $3,652 ▪ Delivering substantial effici
Slide 31: Focused Control on Expenses Driving Efficiency Gains
Focused Control on Expenses Driving Efficiency Gains Overview of Bank Initiatives ▪ After careful consideration and analysis, the Company decided in July 2020 to consolidate 12 branches to ensure a balance between the Company’s physical banking center network and robust digital banking services. The
Slide 32: Appendix
APPENDIX FIRST BUSEY CORPORATION
Slide 33: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures ($ in thousands) Three Months Ended (Unaudited results) S eptember 30, June 30, March 31, December 31, S eptember 30, 2020 2020 2020 2019 2019 Net interest income $ 69,753 $ 70,813 $ 69,433 $ 71,936 $ 73,476 Non-interest income 32,285 27,964 27,517 31,638 30,936 Le
Slide 34: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures ($ in thousands) Three Months Ended (Unaudited results) S eptember 30, June 30, March 31, December 31, S eptember 30, 2020 2020 2020 2019 2019 Reported: Net Interest income $ 69,753 $ 70,813 $ 69,433 $ 71,936 $ 73,476 Tax-equivalent adjustment 638 717 730 781 778 T