First Busey Corporation · NASDAQ:BUSE
First Busey — IPO Roadshow (September 2009)
33 slides from First Busey's IPO roadshow presentation, Sep 21, 2009
Slide 1: First Busey Corporation Common Stock Follow-on Offering
First Busey Corporation Common Stock Follow-on Offering September 2009
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of First Busey. Forward-looki
Slide 3: Offering Overview
Offering Overview Busey
Slide 4: Equity Offering Summary
Equity Offering Summary Issuer Shares Offered Greenshoe Expected Pricing Bookrunner Use of Proceeds First Busey Corporation 18.0 million 15.0% September 24, 2009 Fox-Pitt Kelton Cochran Caronia Waller General corporate purposes, including supporting bank capital Ticker / Exchange BUSE / NASDAQ Lock-
Slide 5: Private Placement Summary
Private Placement Summary Issuer Type of Security Amount Raised Coupon Conversion Price Lock-Up Approvals Placement Agent First Busey Corporation Series A Mandatorily Convertible Preferred Approx. $39.3 million 9.0% cumulative dividends Equal to the Common Equity offering price 90 Days Closing of pr
Slide 6: Rationale for Capital Raise
Rationale for Capital Raise Significantly strengthens capital position Allows First Busey to proactively address credit exposure in Florida (21% of loans as of June 30, 2009) Total cumulative write downs, including anticipated 3Q’09 charge-offs, represent a majority of likely embedded portfolio loss
Slide 7: Investment Highlights
Investment Highlights $4.3 billion financial holding company headquartered in Urbana, Illinois with strong core franchise Core markets in IL benefit from general economic stability and limited real estate price decline Diversified revenue stream Higher growth and less capital intensive revenue strea
Slide 8: First Busey Overview
First Busey Overview Busey
Slide 9: First Busey Profile
First Busey Profile Diversified financial services company offering personal and business banking, fiduciary / wealth management services and retail payment processing Inside Ownership Directors / Executives 30% Associates ESOP / PSP 8% Insiders committing additional ~$39.3M NASDAQ: BUSE Market capi
Slide 10: Diversified Business Model
Diversified Business Model Busey Bank, Champaign, Illinois $4.3 billion in total assets as of June 30, 2009 (includes Busey Bank, N.A.) 34 banking centers in Downstate Illinois 1 banking center in Indianapolis, Indiana 8 banking centers in Florida Electronic Payment Processing Revenue Growth: $7.3 t
Slide 11: Busey Franchise Overview
Busey Franchise Overview Note: Information as of June 30, 2008 1. Rankings based on deposit market share Source: SNL Financial Market Share – Illinois(1) Florida Almost 80% of loan portfolio generated in markets with solid economic drivers Agribusiness (total 2008 receipts ~$1.1 billion for downstat
Slide 12: Core Profitability Growth and Consistency
Core Profitability Growth and Consistency Note: Excludes non-cash goodwill impairment charges 1. Excludes severance charges of $3.4 million 2. Excluding $2.8 million of FDIC expenses Source: First Busey Corp. Annual Pre-tax, Pre-provision Earnings ($M) Quarterly Pre-tax, Pre-provision Earnings ($M)
Slide 13: Stable Net Interest Margin
Stable Net Interest Margin NIM relatively flat over a four year horizon Recent trends in both deposit composition changes and loan repricing continue to favor margin expansion 4.86% 2.92% 1.94% Tax Equivalent Net Interest Margin(1) 1. Net interest income is on a tax equivalent basis Source: First Bu
Slide 14: High Quality Securities Portfolio
High Quality Securities Portfolio Securities, $648.9M(1) Fair value as of June 30, 2009 Source: First Busey Corp. Conservative Approach Securities portfolio holds no CDOs or private CMOs No holdings of other financial institution trust preferred securities or subordinated debt No subprime, Alt – A o
Slide 15: Early and Pro-Active Recognition of Loan Losses
Early and Pro-Active Recognition of Loan Losses 1. Cumulative net charge-offs represent sum of charge-offs from 4Q’07 to 2Q’09 except for BUSE 3Q’09E which represents 4Q’07 to 3Q’09E. Florida Peers and Peer Group calculated as median 2. Assumes $115M 3Q’09 charge-offs 3. Assumes $98.5M 3Q’09 ending
Slide 16: Credit Exposure Known and Manageable
Credit Exposure Known and Manageable Aggressively addressing credit issues in Florida business Core Bank has low loss content Estimated Reserves for 3Q’09 ~ $98.5M 21% 79% % of Total Loans(1) $277M $35M Potential Cumulative Losses(3) $212M $21M Cumulative Charge-Offs(2) $0.7Bn Florida $2.5Bn Total L
Slide 17: Strong Pro Forma Capital Position
Strong Pro Forma Capital Position 14.8% 13.5% 8.7% 8.7% 6.9% 3Q’09 Pro Forma for Offering(1)(2) NA 6.7% 10.5%(4) 5.4% Tier 1 Common Ratio NA 5.5% 8.3% 4.4% Tangible Common Equity / Tangible Assets NA 6.6% 10.5%(4) 5.4% Tangible Common Equity / RWA 13.2% 9.9% Peer Group(3) 16.5%(4) 15.2%(4) 2Q’09 Pro
Slide 18: Current Market Valuation Comparison
Current Market Valuation Comparison First Busey is currently trading at attractive multiples relative to its peer group – before anticipated Q3’09 provisions for loan losses and charge-offs Peer Group includes GABC, LKFN, MBFI, MBHI, OSBC, PVTB, WTFC 2. Assumes a common equity offering of 18.0 milli
Slide 19: Credit Quality / Loan Overview
Credit Quality / Loan Overview 17
Slide 20: Core Bank – Loan Portfolio
Core Bank – Loan Portfolio Loan Balances(1) Loan Overview Long history of conservative underwriting Loan losses do not show any meaningful increase Expected charge-offs of $2.5M - $7.5M in 3Q’09 vs. $3.4M in 2Q’09 NPA trends flat to down Limited growth of loans as focus on full relationship banking
Slide 21: Core Bank – Loan Portfolio NCOs and NPLs
Core Bank – Loan Portfolio NCOs and NPLs Net Charge-Offs ($M) Non-Performing Loans(1) (2) (3) 1. Non accrual + 90 day past due 2. Midpoint of expected $2.5M - $7.5M in charge-offs from the Core Bank ($5.0M) / 2Q’09 gross loans 3. Annualized net charge-offs / period-end gross loans Source: First Buse
Slide 22: Core Bank – Loan Portfolio Credit Quality Statistics
Core Bank – Loan Portfolio Credit Quality Statistics Core Bank Credit Quality Statistics as of June 30, 2009 1. Includes performing and non-performing restructured loans 2. Total OREO for First Busey Corp. (IL, IN and Florida) differs from the $14.8 million presented in the Form 10-Q dated June 30,
Slide 23: Florida – Loan Portfolio Overview
Florida – Loan Portfolio Overview Aggressive charge-offs of loans Strong executive leadership relocated to Florida Significantly decreased originations of new loans in Florida Implemented enhanced loss mitigation strategies with customers primarily beginning in Q1’08 Reallocation of team members to
Slide 24: Florida – Loan Portfolio NCOs and NPLs
Florida – Loan Portfolio NCOs and NPLs (3) 1. Non accrual + 90 day past due 2. Midpoint of expected $107.5M - $112.5M in charge-offs from Florida ($110.0M) / 2Q’09 gross loans 3. Annualized net charge-offs / period-end gross loans Source: First Busey Corp. (2) Net Charge-Offs ($M) Non-Performing Loa
Slide 25: Florida – Loan Portfolio Credit Quality Statistics
Florida – Loan Portfolio Credit Quality Statistics Florida Credit Quality Statistics as of June 30, 2009 1. Includes performing and non-performing restructured loans 2. Amount equal to $0.01M 3. Total OREO for First Busey Corp. (IL, IN and Florida) differs from the $14.8 million presented in the For
Slide 26: Cumulative Loss Analysis
Cumulative Loss Analysis 1. 4Q’07 loans of $3,052.7 differs from previously reported loans of $3,053.2 due to rounding 2. Sum of historical losses from 4Q’07 to 3Q’09 (expected), plus potential further losses from loan review in 4Q’09 and 2010 Source: First Busey Corp. Comprehensive and granular bot
Slide 27: Cumulative Loss Analysis (cont'd)
Cumulative Loss Analysis (cont’d) Total losses from 4Q’07 – 3Q’09 estimated by the Company at $232M(1) In addition, reserves anticipated to be approximately $98.5M as of 3Q’09 1. Assumes $115M of charge-offs in 3Q’09 2. Sum of historical losses from 4Q’07 to 3Q’09 (expected), plus estimated potentia
Slide 28: Illustrative Pro Forma Capital Impact
Illustrative Pro Forma Capital Impact 1. Assumes a common equity offering of 18.0 million shares, plus 15% underwriters’ option, priced at a closing market price of $6.44 as of September 18, 2009, with gross proceeds of $133.3 million. Also includes a private placement equity raise of $39.3 million
Slide 29: Investment Summary
Investment Summary $4.3 billion financial holding company headquartered in Urbana, Illinois with strong core franchise Diversified revenue stream Community banking model with strong deposit market shares in most markets Strong performance in Core Bank franchise Aggressively addressed Florida credit
Slide 30: Appendix
Appendix Busey
Slide 31: Non-GAAP Reconciliation Tables
Non – GAAP Reconciliation Tables 1. Based on the average estimates of four Wall Street research firms 2. Assumes $125M 3Q’09 anticipated provisions 3. Estimated at 39.75% tax rate 4. Assumed common dividend of $0.08 per share paid on 62.7M shares outstanding. Assumes 26.8M shares issued in the trans
Slide 32: Non-GAAP Reconciliation Tables (cont'd)
Non – GAAP Reconciliation Tables (cont’d) Source: First Busey Corp. 31 $M Pro Forma Tangible Common Equity / Tangible Assets 6/30/2009 Total Shareholders' Equity $529 Add: Gross Proceeds From Offering 173 Pro Forma Total Shareholders' Equity 702 Less: Preferred Stock 99 Less: Intangible Assets 255 P
Slide 33: Non-GAAP Reconciliation Tables (cont'd)
Non – GAAP Reconciliation Tables (cont’d) Source: First Busey Corp. Tax Equivalent Net Interest Margin 32 $M 2004 2005 2006 2007 2008 Q1'08 Q2'08 Q1'09 Q2'09 Non-Taxable Interest Income $2.4 $3.0 $3.9 $3.9 $4.4 $1.1 $1.1 $1.0 $1.0 Assumed Tax Rate 35% 35% 35% 35% 35% 35% 35% 35% 35% Tax Equivalent N