Slide 1: 1Q23 Quarterly Earnings Supplement
1Q23 QUARTERLY EARNINGS SUPPLEMENT April 25, 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 Appendix: Sizable Business Lines Provide for Innovative Solutions 6 Experienced Management Team 29 Strong Regional Operating Model 7 High Quality Portfolio: C&I 30 Fully Integrated Wealth Management Platform 31 Investment Highlights 8 Sc
Slide 5: Overview of First Busey Corporation (BUSE)
Overview of First Busey Corporation (BUSE) Company Overview 155+ year old financial institution Regional operating model serving 4 regions: NORTHERN, CENTRAL, GATEWAY, FLORIDA AMONG THE BEST headquartered in CHAMPAIGN, IL Unwavering Focus on 4 Pillars: ASSOCIATES, CUSTOMERS, COMMUNITIES AND SHAREHOL
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: 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 8: 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 9: Fortress Balance Sheet
Fortress Balance Sheet ▪ Capital ratios significantly in excess of well-capitalized minimums ▪ Total RBC of 16.4% and CET1 ratio of 12.2% at 3/31/23 (1) Robust Capital ▪ Provide a more than $450 million buffer above well-capitalized minimums Foundation ▪ TCE/TA ratio of 7.05% at 3/31/23 (2) ▪ TBV pe
Slide 10: High Quality Loan Portfolio
High Quality Loan Portfolio Loan Portfolio Composition – Q1 2023 Loan Portfolio Regional Segmentation (2) MRQ Yield on Loans 4.74% Yield on MRQ New & Renewed Production 6.78% Classified Lns / Capital (1) 7.3% New Originations YTD ■ Approx. 61% of new production was due to growth within existing bank
Slide 11: High Quality Loan Portfolio: CRE
High Quality Loan Portfolio: CRE Investor Owned CRE Loans by Property Type (1) Owner Occupied CRE Loans by Property Type $ in thousands 3/31/23 $ in thousands 3/31/23 3/31/23 % of Total Classified 3/31/23 % of Total Classified Property Type Balances Loans Balances Property Type Balances Loans Balanc
Slide 12: Office Investor Owned CRE Portfolio
Office Investor Owned CRE Portfolio All data as of 3/31/23 $ in thousands Limited Metro Central Business District Exposure Traditional Medical Top Ten Largest CBD Office Metric Office Office Office Loans Exposure Downtown Chicago No outstanding Office CRE-I in Downtown Chicago Total Balances $284,80
Slide 13: Top Tier Core Deposit Franchise
Top Tier Core Deposit Franchise Deposit Portfolio Composition – Q1 2023 $ in millions Total Deposits & Loan-to-Deposit Ratio Core Deposits $10,769 $10,592 $10,601 $10,397 $10,071 98% $ 12 ,0 00 10 0.0% $10,808 $10,617 $10,577 $9,801 $10,506 $10,338 $9,910 95 .0 % MRQ Avg Cost $ 10 ,0 00 of Total Dep
Slide 14: Granular, Stable Deposit Base
Granular, Stable Deposit Base Estimated Uninsured Deposits Percentage of Est. Uninsured Deposits (2) / Total Deposits vs. Peer Group (3) Customers with Account Balances totaling $250K+ 2023 Q1 BUSE 27% Number of customers 4,802 Median account balance $477 thousand Median customer tenure 13.3 years P
Slide 15: Deposit Cost Trends
Deposit Cost Trends Historical Cost of Deposits, 2015 – Q1 2023 (1) Incremental Quarterly Deposit Betas (2) 5.0% +62% BUSE Cost of Deposits 4.5% Effective Fed Funds Rate 4.0% (Quarter Average) +46% 3.5% +40% 3.0% +36% 2.5% +28% 2.0% 1.5% +17% +18% +14% 1.0% +6% +6% +6% 0.5% +3% +3% +1% +0% 0.0% -2%
Slide 16: Diversified and Significant Sources of Fee Income
Diversified and Significant Sources of Fee Income Noninterest Income / Total Revenue (1) ▪ Noninterest income represented 27.4% of revenue $ in millions 90.0% $120.2 (ex-securities gains/losses) in 1Q23 $120.0 $117.2 $117.7 $106.9 80.0% $105.9 $91.1 $86.3 $85.9 ▪ Key businesses of wealth management
Slide 17: Wealth Management
Wealth Management Wealth - Assets Under Care ▪ Assets Under Care (AUC) of $11.2 billion, a QoQ increase of $ in millions $146 million $12,329 ▪ AUC YoY decrease of $1.1 billion was predominantly due to reduction in market valuations and pressured by outsized $11,454 $11,062 $11,208 one-time, nonrecu
Slide 18: FirsTech
FirsTech ▪ LTM revenue of $22.0 million, an increase of 9% over the prior twelve-month period $11 Payments processed in last twelve 37 Transactions processed in last twelve billion months million months ▪ Pipeline continues to build – regularly track progress to adapt go-to-market sales strategies R
Slide 19: Net Interest Margin
Net Interest Margin Net Interest Income (1) Net Interest Margin (1) $ 10 0, 00 0 4.05% $ in millions $91.7 3.76% $ 90 ,0 00 $86.8 $86.4 3.31% $0.5 3.24% 3.13% $0.1 $0.4 2.91% 3.00% $76.5 2.66% $ 80 ,0 00 $0.8 2.68% 2.99% 2.45% $70.6 2.66% NIM up: $0.6 $ 70 ,0 00 $1.3 2.41% 68 bps vs. 1Q22 $0.6 $1.2
Slide 20: Focused Control on Expenses
Focused Control on Expenses Noninterest Expense ▪ Adjusted core expenses(1) of $66.1 million in 1Q23 $75.0 $ in millions $73.7 $74.0 ▪ Continue to be mindful and diligent on expenses, Noninterest Exp. restricting new hires by targeting critical replacements; $70.0 $70.7 $72.0 Adj. Core Exp. (1) $70.
Slide 21: Robust Capital Foundation
Robust Capital Foundation Tangible Common Equity (1) & CET1 Ratios (2) Total Capital Ratio (2) $ in millions $ in millions $900 12.0% 12.2% 13. 0% 11.9% 11.8% 11.8% 16.6% 16.4% 12. 0% 15.8% 16.0% 16.1% $850 $856 $845 11. 0% $577 $535 $554 $580 $494 $800 10. 0% $802 $791 9.0% $750 $749 8.0% $896 $904
Slide 22: 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 23: Reserve Supports Credit & Growth Profile
Reserve Supports Credit & Growth Profile Allowance / Loans (ex-PPP) $ in millions ▪ Reserve to loans of 1.18% (ex-PPP) 1.59% ▪ Day 1 CECL coverage was 1.06% $7,725 $7,783 $7,114 $6,687 $6,368 ▪ Non-performing loan balances remain near 1.24% historically low levels and decreased by 1.19% 1.18% $0.5 m
Slide 24: Balanced, Low-Risk, Short-Duration Investment Portfolio
Balanced, Low-Risk, Short-Duration Investment Portfolio Investment Portfolio Composition – Q1 2023 ▪ BUSE carried $908 million in held-to-maturity (HTM) securities as of 3/31/23 AFS % of Book Value ▪ Transferred a portion of the portfolio comprised of Agency RMBS & 75% CMBS from available-for-sale (
Slide 25: 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 +2.1% from +3.0% in 4Q22 Rate Shock Year 1 Year 2 ▪ A -100 bp
Slide 26: Quarterly Earnings Review
Quarterly Earnings Review ▪ Net interest income was $85.9 million in 1Q23 vs. $91.1 million in 4Q22 and $70.1 million in 1Q22 Net Interest ▪ Net interest margin (1) was 3.13% in 1Q23, compression of 11 bps vs. 3.24% in 4Q22 Income ▪ Primary factors contributing to the quarter’s NIM compression was i
Slide 27: 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% $35.0 $36.4 $36.3 $36.8 18.5% 17.8% 1.50% $1. 00 16. 0% $30.0 $30.1 1.30% 14. 0% $29.1 $0. 80 14.6% $25.0 $0.65 $0.65 $0.65 12. 0% 13.0% 1.22% 1.
Slide 28: Appendix
APPENDIX FIRST BUSEY CORPORATION
Slide 29: 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 30: High Quality Loan Portfolio: C&I
High Quality Loan Portfolio: C&I ▪ 24.9% of total loan portfolio (ex-PPP loans) C&I Loans by Sector $ in thousands 3/31/23 3/31/23 ▪ All C&I loans are underwritten to 1.20x FCCR requirement and Balances % of Total Classified RLOCs greater than $1 million require a monthly borrowing base NAICS Sector
Slide 31: 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 32: Scalable Payment Technology Solutions Platform
Scalable Payment Technology Solutions Platform Renew & Expand Core Business Innovating for Growth ▪ Money movement that allows our customers to BaaS Solution SMB Vertical accelerate revenue realization ▪ Out-of-the-box personalized ▪ Turnkey application ▪ Frictionless payments across FirsTech’s omni
Slide 33: Continued Investment in Technology Enterprise-Wide
Continued Investment in Technology Enterprise-Wide LTM Tech Investment Highlights 2022 Mortgage eClosing option integrated into retail platforms; has reduced the loan closing Investment Legend process time by 75%+ Enhanced Customer Launched dedicated Busey Wealth Management mobile app Experience Sca
Slide 34: 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 680 671 88,358 120 , 00 90,000 2,700
Slide 35: Busey Impact: ESG and Corporate Responsibility
Busey Impact: ESG and Corporate Responsibility Building on 155 Years of Civic Engagement, Corporate Responsibility and Positive Impacts With a strong and unwavering commitment to our Pillars – associates, customers, shareholders and communities, First Busey is pleased to announce publication of our
Slide 36: 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 March 31, December 31, March 31, 2023 2022 2022 PRE-PROVISION
Slide 37: Non-GAAP Financial Information
Non-GAAP Financial Information Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Return on Average Assets, Average Tangible Common Equity, Return on Average Tangible Common Equity, and Adjusted Return on Average Tangible Common Equity (dollars in thousands, except per share amounts)
Slide 38: Non-GAAP Financial Information
Non-GAAP Financial Information Adjusted Net Interest Income and Adjusted Net Interest Margin (dollars in thousands) Three Months Ended March 31, December 31, March 31, 2023 2022 2022 Net interest income $ 85,857 $ 91,149 $ 70,056 Non-GAAP adjustments: Tax-equivalent adjustment 558 564 546 Tax-equiva
Slide 39: Non-GAAP Financial Information
Non-GAAP Financial Information Noninterest Expense Excluding Amortization of Intangible Assets, Adjusted Noninterest Expense, Adjusted Core Expense, Noninterest Expense Excluding Non-operating Adjustments, Efficiency Ratio, Adjusted Efficiency Ratio, and Adjusted Core Efficiency Ratio (dollars in th
Slide 40: Non-GAAP Financial Information
Non-GAAP Financial Information Tangible Book Value and 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, 2023 2022 2022 2022 2022 Total stockholders' equity $ 1,198,558 $ 1,145,977 $ 1,106,588 $ 1,161,9
Slide 41: 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 March 31, December 31, September 30, June 30, March 31, 2023 2022 2022 2022 2022 Portfolio loans [a] $ 7,783,808 $ 7,