Slide 1: 3Q21 Quarterly Earnings Supplement
3Q21 QUARTERLY EARNINGS SUPPLEMENT October 26, 2021
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 Fortress Balance Sheet 10 Robust Capital Foundation 11 High Quality Loan Portfolio 12 Participating in the CARES Act Pay
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 $12.9 Billion Assets $12.4 Billion AUC $9.0 Billion Payments Processed (1) Business Investment Advisory Business Solutions Commercial Lending Custom Consulting Investment Services Business Saving Services Lockbox Processing
Slide 7: Attractive Geographic Footprint
Attractive Geographic Footprint Four distinct operating regions provide for attractive mix of customers and demographics, providing compelling business and market opportunities Northern Gateway Banking Banking Centers: Centers: 15 24 Deposits: Deposits: $2.4B $2.9B Avg. Deposits Avg. Deposits Per Br
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 & C EO of First Busey since 2007. Mr. Dukeman was nearly 150 years of combined President & C EO of Main Street Trust from 1998 until
Slide 9: Investment Highlights
Investment Highlights • Established in 1868, with more than 150 years of commitment to local communities and businesses Attractive • Operating with 75 branches across four states: Illinois, Missouri, Indiana, and Florida Franchise • Experienced and proven management team • Attractive and diverse bus
Slide 10: Fortress Balance Sheet
Fortress Balance Sheet • TCE/TA ratio of 7.75% at 9/30/21 (1 ) Robust • Capital ratios significantly in excess of well-capitalized minimums Capital - Total RBC of 15.9% and CET1 ratio of 11.9% at 9/30/21 Foundation • TBV per share of $17.09 at 9/30/21(1 ), representing 3-year CAGR of 7.6% • Diversif
Slide 11: Robust Capital Foundation
Robust Capital Foundation Tangible Common Equity Ratio (1) Total Capital Ratio (2) ($ in m $ in millions) illions $ in $ in m m illions illions 17.0% 17.4% 16.6% 16.4% 15.9% $517 $488 $489 $515 $538 8.9% 9.0% 8.8% 8.2% 7.8% 10% $982 $826 $737 $731 $728 $806 $971 $921 $919 $905 2020 Q3 2020 Q4 2021 Q
Slide 12: High Quality Loan Portfolio
High Quality Loan Portfolio Loan Portfolio Composition as of 9/30/2021 Loan Portfolio Geographic Segmentation (1) Other HELOCs 3% Florida 4% 6% Missouri 1-4 Family Commercial 21% Residential & Industrial 17% 27% Indiana Construction & Development 4% Owner 6% Non-Owner Occupied Illinois Occupied CRE
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) $ in thousands ▪ 25.1% of total loan portfolio (ex-PPP loans) ▪ Diversified portfolio results in low levels of 9/30/21 % of Total 9/30/21 concentrated exposure Balances Loans Classified NAICS Sector (ex-PPP) (ex-PPP
Slide 14: 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 ) % of Total 9/30/21 % of Total 9/30/21 9/30/21 Loans Classified 9/30/21 Loans Classified Property Type Balances (ex-PPP) Balances Property Type Balances (ex-PPP) Balances Ind
Slide 15: 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 16: Navigating Credit Cycle from Position of Strength
Navigating Credit Cycle from Position of Strength NPAs / Assets Overview ▪ Conservative underwriting and strong asset $12,899 quality allowed the Company to enter the economic downturn well-prepared $10,544 $9,696 ▪ Non-performing asset and classified asset ratios $7,702 have declined to multi-year
Slide 17: Reserve Supports Credit & Growth Profile
Reserve Supports Credit & Growth Profile Overview Allowance / NPLs ▪ Reserve level of 1.33% (ex-PPP), clean credit profile, and anticipated growth should $36,598 359% enable the ability to grow into our current 416% $29,507 reserve levels $25,860 $24,301 • Day 1 CECL estimate was 1.06% ▪ Approximate
Slide 18: Ample Sources of Liquidity
Ample Sources of Liquidity 2021 Q3 Average Deposit Composition Total Deposits & Loan to Deposit Ratio $ in m illions CD > CD < 250k $10,818 250k 1% $10,337 9% Non-Int $8,643 $8,678 $8,874 DDA Savings 32% 82.4% 78.5% 76.4% & MMDA 69.5% 66.1% 32% Int DDA 26% 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 202
Slide 19: Quarterly Earnings Review
Quarterly Earnings Review • Net Interest Income increased from $64.5 million in 2Q21 to $70.8 million in 3Q21 • The 3rd quarter represented a full quarter contribution to net interest income from the Glenview State Net Interest Bank transaction Income • Loan interest income and fees (net of deferred
Slide 20: Earnings Performance
Earnings Performance Adjusted Net Income & Earnings Per Share (1 ) Adjusted ROAA & ROATCE (1 ) 16.9% $38,065 1.46% 14.8% 15.2% $34,255 $32,803 $31,921 $32,845 1.31% 13.1% 13.4% $0.69 1.22% $0.60 $0.62 1.12% $0.57 $0.58 1.03% 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2020 Q3 2020 Q4 2021 Q1 2021 Q2 202
Slide 21: Net Interest Margin
Net Interest Margin Rate Roll (1) Net Interest Income - Ex isting loans amortize and paydown at highe r ra tes than ne w loan production $ in thousands $73,591 New Loan Volume Yields $71,530 $70,391 $71,353 + Ne w loan volume yie lds in 3Q21 we re 17 bps highe r than in 2Q21, while ne t ne w funding
Slide 22: Diversified and Significant Sources of Fee Income
Diversified and Significant Sources of Fee Income Overview Noninterest Income / Total Revenue ▪ Resilient, varied, and complimentary sources of fee income provide revenue diversification with $102.0 $103.4 $104.0 $96.3 $97.6 heightened value amidst cycle of margin compression ▪ Noninterest income re
Slide 23: Resilient Wealth Management Platform
Resilient Wealth Management Platform Wealth - Assets Under Care Overview ▪ Provides a full range of asset management, $12,303 $12,364 investment and fiduciary services to individuals, businesses and foundations, tax $10,228 $10,692 preparation, philanthropic advisory services $9,503 and farm and bro
Slide 24: FirsTech Growth and Expansion of Services
FirsTech Growth and Expansion of Services Multi-Layered Payment Technology Overview Solutions Platform ▪ FirsTech provides custom payment processing solutions through a comprehensive suite of capabilities including mobile bill pay, walk-in payment processing, lockbox, online bill pay, IVR; and elect
Slide 25: Scalable Payment Technology Solutions Platform
Scalable Payment Technology Solutions Platform FirstTech Today Customer Overview $9.0 30 Large utilities Billion Million Payments processed Transactions processed 150+ Insurance annually per year Banks 500 Customers across numerous industries Credit Unions and growing years Telecom Combined years of
Slide 26: Continued Investment in Technology
Continued Investment in Technology ▪ Continued investment in technology, automation, and data analytics ▪ Seeing tangible results as we continue to adapt to our customers’ needs • Digital relationship banking team formed in 4Q20 (1) • At 9/30/2021 Digital Preferred Banking consisted of 39,000 deposi
Slide 27: Focused Control on Expenses
Focused Control on Expenses Noninterest Expense Overview ▪ Core adjusted expenses (1) of $61.4 million in 3Q21 excluding amortization of intangible assets, provision for unfunded commitments, acquisition / restructuring related charges, and NMTC amortization ▪ Glenview State Bank merged into Busey B
Slide 28: Personal Banking Transformation Plan
Personal Banking Transformation Plan Overview of Planned Branch Consolidation ▪ Based on thoughtful consideration and analysis, the Company decided in July 2021 on a plan to close and consolidate 15 Busey Bank banking centers to ensure a balance between the Company’s physical banking center network
Slide 29: Appendix
APPENDIX FIRST BUSEY CORPORATION
Slide 30: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Manufacturing Loans 9/30/21 9/30/21 % of Total Active 9/30/21 % of 9/30/21 Total Balances Loans Deferral Classified Category PPP Manufacturing Subsector (ex-PPP) (ex-PPP) Balances ⁽¹⁾ Balances Classified Balances Loans: $288 Machiner
Slide 31: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Retail Trade & Retail CRE Loans 9/30/21 % of Neighborhood 9/30/21 % of Total Active Classified 9/30/21 Retail Center Shopping Balances Loans Deferral Weighted Loans in PPP 4% Center Retail Flag (ex-PPP) (ex-PPP) Balances⁽¹⁾ Avg LTV S
Slide 32: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Food Services Loans 9/30/21 % of Other 9/30/21 % of Total Active Classified 9/30/21 1% Balances Loans Deferral Weighted Loans in PPP Food Services (ex-PPP) (ex-PPP) Balances⁽¹⁾ Avg LTV Segment Balances Limited-Serv Restaurant Ops Ful
Slide 33: Update on COVID-Related Deferral & Modification Trends
Update on COVID –Related Deferral & Modification Trends Commercial and Small Business Clients ▪ Busey announced on March 26, 2020 a six-month modification program, including up to two 90-day deferrals of payments or interest only payment options. This program expired on September 30, 2020 and all de
Slide 34: Update on COVID-Related Deferral & Modification Trends
Update on COVID –Related Deferral & Modification Trends Commercial and Small Business Clients ▪ Deferrals have declined in the current outstanding commercial book from 8.4% at 9/30/2020 to 2.1% as of 9/30/2021 with none remaining on full-payment deferral Proportion of Net % on Full $ in thousands Co
Slide 35: Update on COVID-Related Deferral & Modification Trends
Update on COVID –Related Deferral & Modification Trends $ in thousands Active Commercial Deferrals by Sectors 9/30/21 9/30/21 9/30/21 Active Active % of Segment Balances Classified Deferrals I/O in Active Property/Industry (ex-PPP) Loan Balances − Full Pmts Modifications Deferral Hotel CRE $168,852
Slide 36: Update on COVID-Related Deferral & Modification Trends
Update on COVID –Related Deferral & Modification Trends Personal Loan and Mortgage Customers Retail Payment Relief Program % of All % of Total 9/30/21 9/30/21 Deferral Consumer $ in thousands # of Loans $ Balances Balances Balances Total Consumer Portfolio Loans (1) 21,606 $1,299,261 A Total Active
Slide 37: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures ($ in thousands) Three Months Ended (Unaudited results) S eptember 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 S eptember 30, 2020 Net interest income $70,755 $64,542 $64,893 $72,936 $69,753 Non-interest income 33,259 33,011 31,445 30,499 32,285 Less se
Slide 38: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures ($ in thousands) Three Months Ended (Unaudited results) S eptember 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 S eptember 30, 2020 Reported: Net Interest income $70,755 $64,542 $64,893 $72,936 $69,753 Tax-equivalent adjustment 598 579 601 655 638 Tax-eq