Slide 1: 2Q22 Quarterly Earnings Supplement
2Q22 QUARTERLY EARNINGS SUPPLEMENT July 26, 2022
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 Diversified and Significa
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 Built on a Fortress Balance Sheet
Investment Highlights ▪ 58 branches across four states: Illinois, Missouri, Indiana, and Florida Attractive Franchise that ▪ Premier commercial bank, wealth management, and payment technology solutions for individuals and businesses Provides Innovative ▪ 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. Has served as President & CEO of First Busey since 2007 and Joined Busey in 2006 and led various finance functions prior Joined Busey in Aug
Slide 9: Strong Regional Operating Model
Strong Regional Operating Model Four distinct operating regions provide for attractive mix of customers and demographics, providing compelling business and market opportunities Northern Gateway Banking Banking Centers: Centers: 10 20 Deposits: Deposits: $1.9B $2.9B Avg. Deposits Avg. Deposits Per Br
Slide 10: High Quality Loan Portfolio
High Quality Loan Portfolio Loan Portfolio Composition – Q2 2022 Loan Portfolio Regional Segmentation (2) MRQ Yield on Florida Loans 5% 3.58% Classified Lns / Northern Capital (1) 24% Central 7.6% 43% Underwriting Guidelines ■ CRE perm ranges from Gateway ••1.15x-1.35x pre-dist. DSCR, ••65%-80% LTV
Slide 11: Top Tier Core Deposit Franchise
Top Tier Core Deposit Franchise Deposit Portfolio Composition – Q2 2022 $12,000 Total Deposits & Loan to Deposit Ratio $ in millions 12 0.0% $10,818 $10,769 $10,592 $10,337 $10,397 $10,000 10 0.0% $8,000 80 .0 % 72.1% $6,000 69.5% 66.8% 68.7% 60 .0 % MRQ Avg Cost of 66.1% Deposits $4,000 0.08% 40 .0
Slide 12: Diversified and Significant Sources of Fee Income
Diversified and Significant Sources of Fee Income ▪ Noninterest income represented 30.1% of revenue Noninterest Income / Total Revenue (1) (ex-securities losses) in 2Q22 $120.0 $ in millions 90.0% $105.6 $105.9 $106.9 $104.1 ▪ Key businesses of wealth management and payment $97.5 80.0% $75.9 technol
Slide 13: Fully Integrated Wealth Management Platform
Fully Integrated Wealth Management Platform Six Distinct Teams Our wealth management business provides effective and high-touch solutions for Private Wealth Advisor high-net-worth individuals. Our clients work with a dedicated team of financial ▪ Risk-return optimization professionals, with each tea
Slide 14: Wealth Management Growth & Mid-Year Update
Wealth Management Growth & Mid-Year Update Wealth - Assets Under Care ▪ Assets under care of $11.5 billion, a QoQ decrease of $ in millions $875 million, predominantly due to the reduction in $12,731 $12,303 $12,364 $12,329 market valuations during 2Q22 $11,454 ▪ Wealth revenue of $14.1 million, an
Slide 15: Scalable Payment Technology Solutions Platform
Scalable Payment Technology Solutions Platform Renew & Expand Core Business Innovating for Growth BaaS Solution SMB Vertical ▪ Offering secure payments via mobile bill pay, online bill pay, walk-in processing, lockbox, IVR, ACH, money ▪ Out-of-the-box customized payment ▪ Turnkey application managem
Slide 16: FirsTech Growth & Mid-Year Update
FirsTech Growth & Mid-Year Update 33 ▪ LTM revenue of $20.8 million, an increase of 14% over the prior twelve-month period ▪ Online bill pay revenue YTD impacted by a single $10.7 Payments processed annually (1) Transactions processed per year (2) sizable enterprise customer experiencing a material
Slide 17: Net Interest Margin
Net Interest Margin $80.0 Net Interest Income (1) $78.0 Net Interest Margin $ in millions $76.5 $0.6 $76.0 2.91% $75.0 2.77% $0.6 2.65% 2.66% $71.4 $71.1 $70.6 $74.0 2.57% 2.68% 2.50% 2.41% 2.45% $1.3 2.36% 2.66% $3.3 $70.0 $72.0 $5.2 $1.2 2.45% $65.1 $1.5 2.41% $70.0 2.30% 2.28% $65.0 $1.8 $4.3 $68
Slide 18: Focused Control on Expenses
Focused Control on Expenses Noninterest Expense ▪ Adjusted core expenses(1) of $64.4 million in 2Q22 $80.0 $80.0 $ in millions $73.5 $71.2 $70.4 $69.1 ▪ Continued investment in talent across our business Noninterest Exp. $70.0 lines, risk management infrastructure and organic $70.0 Adj. Core Exp. (1
Slide 19: Continued Investment in Technology Enterprise-Wide
Continued Investment in Technology Enterprise-Wide 2022 Tech Investment Highlights Investment Legend FirsTech Enhanced launched new Customer Q1 one-time Experience payments platform for Scale & Busey Bank Efficiency customers Upgrades Launched integrated payables platform, offering commercial client
Slide 20: Rising Digital Banking Adoption
Rising Digital Banking Adoption Digital engagement of customers continues growth trajectory Consumer Monthly Active Users (1) Commercial Quarterly Active Users (2) Mobile QAU Online Banking QAU Mobile MAU Online Banking MAU 84,007 580 564 115 , 00 2,550 2,526 2,503 560 80,750 109,748 110 , 00 108,71
Slide 21: Fortress Balance Sheet
Fortress Balance Sheet ▪ Capital ratios significantly in excess of well-capitalized minimums ▪ Total RBC of 16.6% and CET1 ratio of 11.8% at 6/30/22 (1) Robust ▪ TCE/TA ratio of 6.68% at 6/30/22 (2) Capital Foundation ▪ TBV per share of $14.31 at 6/30/22 (2) ▪ $100 million of subordinated debt raise
Slide 22: Robust Capital Foundation
Robust Capital Foundation Tangible Common Equity (1) & CET1 Ratios (2) Total Capital Ratio (2) $ in millions $ in millions $1, 050 12.3% 13. 0% 12.0% 11.8% 11.9% 11.8% 16.4% 16.6% 15.9% 15.8% $1, 000 12. 0% 15.7% $950 $982 $971 11. 0% $959 $900 10. 0% $479 $494 $577 $517 $488 $850 9.0% $856 $800 8.0
Slide 23: Pristine Credit Quality
Pristine Credit Quality ▪ Conservative underwriting continues to result in NPAs / Assets pristine credit quality performance $ in millions $12,860 ▪ Strong portfolio management that identifies early $12,356 warning indicators and proactively engages the special assets group early in the credit revie
Slide 24: Reserve Supports Credit & Growth Profile
Reserve Supports Credit & Growth Profile ▪ Reserve to loans of 1.18% (ex-PPP) Allowance / Loans (ex-PPP) ▪ Day 1 CECL coverage was 1.06% $ in millions 1.59% $7,490 ▪ Non-performing loan balances remain near historically $7,114 low levels but did experience an increase of $0.6 million $6,687 $6,368 s
Slide 25: Balanced, Low-Risk, Short-Duration Investment Portfolio
Balanced, Low-Risk, Short-Duration Investment Portfolio Investment Portfolio Composition – Q2 2022 ▪ BUSE carried $953MM in held-to-maturity (HTM) securities as of 6/30/22 ▪ Transferred a portion of the portfolio comprised of Agency RMBS & CMBS from available-for-sale (AFS) to HTM during 1Q22 ▪ The
Slide 26: Actively Managing Asset-Sensitive Balance Sheet
Actively Managing Asset-Sensitive Balance Sheet Annual % Change in Net Interest Income ▪ Balance sheet remains materially asset-sensitive under Shock Scenarios ▪ Vigilant focus on pricing discipline for both loans and deposits Rate Shock Year 1 Year 2 +300 bps +12.8% +15.7% ▪ Over 40% of loan portfo
Slide 27: Quarterly Earnings Review
Quarterly Earnings Review ▪ Net interest income was $75.9 million in 2Q22 vs. $70.1 million in 1Q22 and $64.5 million in 2Q21 ▪ Net interest margin was 2.68% in 2Q22, an increase of 23 bps vs. 2.45% in 1Q22 Net Interest ▪ Adjusted net interest margin (1) (ex-PPP) was 2.66% in 2Q22, an increase of 25
Slide 28: Earnings Performance
Earnings Performance Adjusted Net Income & Earnings Per Share (1) Adjusted ROAA & Adjusted ROATCE (1) $40.0 $ in millions $1. 00 16. 0% $ in millions 1.70% $0. 90 14.6% $35.0 14. 0% 14.3% 1.50% $34.3 $0. 80 13.4% $30.0 $31.9 $32.8 12. 0% 13.1% 13.0% $30.1 1.30% $0. 70 $29.1 $25.0 10. 0% $0. 60 1.10%
Slide 29: Environmental, Social and Governance Responsibility
Environmental, Social and Governance Responsibility Building on 150 Years of Excellence | Advancing a Comprehensive ESG Strategy Officially opened in Peoria, IL in June 2022, Busey was named a recipient of the the Busey Bank Bridge promotes financial 2022 Community Service Award by the security, com
Slide 30: Appendix
APPENDIX FIRST BUSEY CORPORATION
Slide 31: High Quality Loan Portfolio: C&I
High Quality Loan Portfolio: C&I ▪ 25.4% of total loan portfolio (ex-PPP loans) C&I Loans by Sector (ex-PPP) $ in thousands 6/30/22 % of Total 6/30/22 ▪ Diversified portfolio results in low levels of concentrated Balances Loans Classified exposure NAICS Sector (ex-PPP) (ex-PPP) Balances Manufacturin
Slide 32: 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 % of Total 6/30/22 $ in thousands % of Total 6/30/22 6/30/22 Loans Classified 6/30/22 Loans Classified Property Type Balances (ex-PPP) Balances Property Type Balanc
Slide 33: 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 Six Months Ended June 30, March 31, June 30, June 30, June 30,
Slide 34: 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 Six Months E
Slide 35: Non-GAAP Financial Information
Non-GAAP Financial Information Adjusted Net Interest Margin (dollars in thousands) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2022 2022 2021 2022 2021 Net interest income $ 75,928 $ 70,056 $ 64,542 $ 145,984 $ 129,435 Non-GAAP adjustments: Tax-equivalent adjust
Slide 36: 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 Six Months Ended June 30, March 31, June 30, June 30, June 30, 2022 2022 2021 2022 2021 Net in
Slide 37: Non-GAAP Financial Information
Non-GAAP Financial Information Tangible Common Equity and Tangible Common Equity to Tangible Assets (dollars in thousands) As of June 30, March 31, December 31, September 30, June 30, 2022 2022 2021 2021 2021 Total assets $ 12,356,433 $ 12,567,509 $ 12,859,689 $ 12,899,330 $ 12,415,449 Non-GAAP adju
Slide 38: 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 June 30, March 31, December 31, September 30, June 30, 2022 2022 2021 2021 2021 Portfolio loans [a] $ 7,497,778 $ 7,2