Slide 1: Investor Presentation
1 1 May 2020 INVESTOR PRESENTATION Issuer Free Writing Prospectus Dated May 28, 2020 Filed Pursuant to Rule 433 Registration No. 333 - 221428
Slide 2: Special Note Concerning Forward-Looking Statements
2 2 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 finan
Slide 3: Non-GAAP Financial Measures
3 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
Slide 4: Terms of the Planned Capital Raise
4 4 Terms of the Planned Capital Raise Issuer First Busey Corporation (NASDAQ: BUSE) Security Subordinated Notes Due 2030 Rating Kroll: BBB Principal Amount $75 Million Type SEC Registered Maturity Date June 2030 Term 10 Years Call Date 5 Years Use of Proceeds General Corporate Purposes Bookrunners
Slide 5: Overview of First Busey Corporation
5 5 OVERVIEW OF FIRST BUSEY CORPORATION 5
Slide 6: Overview of First Busey Corporation
6 6 Overview of First Busey Corporation Company Overview Branch Map Primary Business Segments Financial Highlights Commercial Banking Wealth Management Retail Payment Processing • Illinois state chartered bank, organized in 1868 • Bank offers full suite of diversified financial products and services
Slide 7: Investment Highlights
7 7 Investment Highlights • Established in 1868 , with more than 150 years of commitment to local communities and businesses • Operating with 80 branches across four states: Illinois , Missouri, Indiana, and Florida • Experienced and proven management team • Attractive and diverse business strategy
Slide 8: Experienced Management Team
8 8 Experienced Management Team Van A. Dukeman President & Chief Executive Officer, First Busey Corporation Robin N. Elliott President & CEO, Busey Bank Jeffrey D. Jones EVP & CFO Robert F. Plecki, Jr. EVP, Chief Credit Officer John J. Powers EVP & General Counsel Monica L. Bowe EVP & Chief Risk Off
Slide 9: Diversified Business Model
9 9 Online Banking Credit and Debit Cards Checking Services Consumer Loans Commercial Lending Business Saving Services Personal Business Mortgage Banking Mobile Banking Diversified Business Model Investment Services Investment Management Financial Goals Private Client Business Planning Business Chec
Slide 10: Attractive Geographic Footprint
10 10 Attractive Geographic Footprint Four Distinct Operating Regions provide for attractive mix of customers and demographic opportunities Northern Gateway Central Florida Banking Centers: 10 Deposits: $857MM Median HHI: $74,285 Banking Centers: 29 Deposits: $2.6B 2020 Pop.: 2.8 Million Banking Cen
Slide 11: Disciplined acquisition strategy has augmented strong organic growth
11 11 $3,998 $5,425 $7,861 $7,702 $9,696 $9,721 2015 2016 2017 2018 2019 2020 Q1 Disciplined acquisition strategy has augmented strong organic growth Total Assets ($ M ) January 2015 Assets - $274mm AUC - $154mm Branches – 3 MSA - Peoria April 2016 Assets - $1.6bn Branches – 13 MSA – St. Louis July
Slide 12: Financial Summary
FINANCIAL SUMMARY FIRST BUSEY CORPORATION
Slide 13: Core Earnings Power
13 13 $26,614 $29,498 $30,535 $31,782 $15,479 $0.50 $0.53 $0.55 $0.57 $0.28 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 $38,602 $42,823 $43,600 $41,131 $38,211 1.77% 1.80% 1.79% 1.68% 1.59% 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 Core Earnings Power Core Net Income & Earnings Per Share (1) Core ROAA & R
Slide 14: Diversified and Significant Source of Fee Income
14 14 Overview ▪ Anchored by wealth management and payment processing, fee income represented approximately 29% of total revenues over the last 12 months ▪ Strong source of revenue synergies as the Company’s balance sheet continues to grow both organically as well as through M&A ▪ New Markets Tax Cr
Slide 15: Resilient Wealth Management Platform
15 15 $9,133 $9,594 $8,994 $11,354 $11,709 $3,569 $3,845 $2,951 $4,176 $4,735 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 Revenue Pre-Tax Net Income $8,886 $8,967 $9,409 $9,696 $8,925 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 Resilient Wealth Management Platform Wealth – Assets Under Care Wealth – Revenue
Slide 16: Focused Control on Expense
16 16 $5,579 $6,031 $6,056 $6,345 $6,429 2.4% 2.4% 2.4% 2.4% 2.4% 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 Avg. Assets / FTE NIE / Avg Assets $53,590 $58,315 $58,091 $59,157 $57,812 $1,017 56.4% 56.6% 55.4% 57.0% 59.5% 58.5% 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 Noninterest Expense NIE (CECL additi
Slide 17: Capital and liquidity highlights
17 17 • Capital ratios significantly in excess of well - capitalized minimums • Regulatory capital relief on CECL implementation and PPP loans • TCE/TA ratio of 9.22% at 3/31/20 • Total RBC of 13.85% at 3/31/20 • Suspended share repurchase program on March 16, 2020 • TBV per share of $15.57 at 3/31/
Slide 18: Robust Capital Foundation
18 18 $592 $603 $739 $756 $245 $292 $297 $291 14.2% 14.8% 14.0% 13.9% 10.0% 2017 Q4 2018 Q4 2019 Q4 2020 Q1 Well Cap Min Excess over Min Total Capital Ratio Min Ratio $718 $784 $922 $922 9.8% 10.4% 9.9% 9.9% 4.0% 2017 Q4 2018 Q4 2019 Q4 2020 Q1 Tier 1 Capital Leverage Ratio Min Ratio Robust Capital
Slide 19: High Quality Loan Portfolio
19 19 Non - Owner Occupied CRE 28% Owner Occupied CRE 14% Commercial & Industrial 26% Construction & Development 7% 1 - 4 Family Residential 18% HELOCs 6% Other 1% Illinois 66% Missouri 25% Indiana 5% Florida 4% High Quality Loan Portfolio Loan Portfolio Composition as of 3/31/2020 Loan Geographic S
Slide 20: Loan Portfolio by NAICS Sector
20 20 NAICS Sector 2020 Q1 Balance % of Total Loans Classified Loan Balances Manufacturing $259,400 3.8% $12,542 Finance and Insurance $201,713 3.0% $0 Wholesale Trade $169,615 2.5% $1,045 Construction $156,883 2.3% $3,406 Educational Services $154,232 2.3% $3,898 Health Care and Social Assistance $
Slide 21: Loan Portfolio: Manufacturing Loans
21 21 Loan Portfolio: Low Levels of Concentrated Exposure Manufacturing Loans Total Manufacturing Loans: $259 Million or 3 .8% of Loan Portfolio 4.8% Classified Loans Diversified exposure across 20 industry subsectors results in no single level of high concentration No subsector accounts for more th
Slide 22: High Quality Loan Portfolio: CRE
22 22 High Quality Loan Portfolio: CRE (1) CRE Portfolio Overview ▪ 48% of total loan portfolio ▪ 28% of CRE loans are owner - occupied ▪ Only 1.2% of CRE loans are classified ▪ Low Levels of Concentrated Exposure ▪ Top concentration in one industry is 15% Investor Owned CRE Loans by Industry (1) Ow
Slide 23: Retail and Traveler Accommodation Loans
23 23 Strip Center 40% Retail Trade (C&I) 15% Single Tenant 15% Mixed Use - Retail 12% Shopping Center 10% Community Retail Center 8% Loan Portfolio: Low Levels of Concentrated Exposure Retail Trad e & Retail CRE Loans Traveler Accommodation Loans Total Retail Loans: $579 Million or 8.6% of Loan Por
Slide 24: Food Services and Agriculture Loans
24 24 Full - Service Restaurant CRE 47% Limited - Service Restaurant CRE 22% Limited - Service Restaurant Ops. 18% Full - Service Restaurant Ops. 12% Other 1% Loan Portfolio: Low Levels of Concentrated Exposure Food Services Loans Food Services Type 2020 Q1 Balance % of Total Loans COVID-19 % Balanc
Slide 25: Top 50 Loans by Sector
25 25 Loan Portfolio: Low Levels of Concentrated Exposure Top 50 by Sector as of 3/31/2020 Total Manufacturing Loans: $259 Million or 3 .8% of Loan Portfolio Sector/Property Type Commitment Balances % of Top 50 Commitment Student Housing $267,946 $230,898 15.9% Apartments $242,841 $163,479 14.4% Man
Slide 26: Entering Credit Cycle from Position of Strength
26 26 $4,567 $5,534 $6,470 $6,658 (0.01%) 0.13% 0.11% 0.21% 2017 2018 2019 2020 Q1 Avg Loans NCOs/Avg Loans $772 $834 $976 $1,006 15.0% 14.6% 10.9% 10.8% 2017 Q4 2018 Q4 2019 Q4 2020 Q1 Capital Classified/Capital Entering Credit Cycle from Position of Strength NPAs / Assets Classifieds / Capital (1)
Slide 27: Adoption of CECL Fortifies Loan Loss Reserves
27 27 $28,648 $36,974 $32,564 $30,765 187% 137% 165% 274% 2017 Q4 2018 Q4 2019 Q4 2020 Q1 NPAs Allowance/ NPAs Adoption of CECL Fortifies Loan Loss Reserves Allowance / Loans Allowance / NPLs Allowance / NPAs Provision Coverage / Net Charge - offs $ in millions (1) 4Q17 provision expense was $5.303
Slide 28: Strong Core Deposit Franchise
28 28 $5,600 $5,705 $7,587 $7,624 91.4% 91.3% 96.0% 95.6% 2017 Q4 2018 Q4 2019 Q4 2020 Q1 Core Deposits Core/ Total Deposits Non - interest bearing demand , 24% CD < 250k , 14% CD > 250k , 4% Interest bearing demand , 25% Savings & MMDA , 33% Strong Core Deposit Franchise $6,126 $6,249 $7,902 $7,973
Slide 29: Securities Portfolio
29 29 Securities Portfolio U.S. Treasury Securities , 2% Govt Corporations/ Agencies , 5% State / Political 16% Commercial MBS , 14% Residential MBS , 57% Corporate , 6% <1 Year 8% 1 - 5 Years 16% 5 - 10 Years 14% > 10 Years 62% Securities Composition by Type Securities Composition by Maturity $ in
Slide 30: Liquidity Detail
30 30 Liquidity Detail Bank Liquidity • As of March 31, 2020, management believed that adequate liquidity existed to meet all projected cash flow obligations • First Busey’s primary sources of funds consist of deposits, investment maturities and sales, loan principal repayments and capital funds • T
Slide 31: Interest Rate Risk Management & Sensitivity
31 31 Interest Rate Risk Management & Sensitivity • First Busey ’s asset - liability committee meets at least quarterly to review current market conditions and to structure the Consolidated Balance Sheets to optimize stability in net interest income in consideration of projected future changes in in
Slide 32: Summary
32 32 Summary Maintain Strong Core Deposits 96% Core Deposits/Deposits (1) 0.62% Cost of Deposits Foster Conservative and Stable Risk Culture 0.32% Non - Performing Assets/Assets 310% Reserves/NPLs Consistently Hold a Strong Capital Position Capital far in excess of “Well Capitalized” standard under
Slide 33: COVID-19 Pandemic Response
33 33 COVID - 19 PANDEMIC RESPONSE 33
Slide 34: Protecting the Well-Being of Associates and Customers
34 34 Protecting the Well - Being of Associates and Customers ▪ Established COVID - 19 crisis leadership team to assess, refine, and continually execute on the various phases and challenges related to this pandemic ▪ Remote Workforce Rollout - Enabled nearly 60% of Busey’s workforce to work remotely
Slide 35: Supporting Financial Needs of Customers
35 35 Supporting Financial Needs of Customers COVID - 19 Response Actions ▪ Busey is offering 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 - day inter
Slide 36: Participating in the CARES Act Paycheck Protection Program
36 36 ▪ 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 billion for the PPP. This program provides payroll assistance for the nation’s nearly 30 million smal
Slide 37: Appendix
37 37 APPENDIX 37
Slide 38: Double Leverage and Interest Coverage
38 38 Double Leverage $ in thousands For the Period Ended: 2016Y 2017Y 2018Y 2019Y 2020 Q1 Investment in Subsidiaries $627,214 $1,038,715 $1,088,710 $1,418,747 $1,321,215 Consolidated Equity $594,314 $935,003 $994,964 $1,220,434 $1,217,585 Double Leverage Ratio 105.5% 111.1% 109.4% 116.2% 108.5% Net
Slide 39: Illustrative Pro Forma Capital Ratios
39 39 Illustrative Pro Forma Capital Ratios (1) Includes tax effect of other intangibles, net Note: Assumes a gross spread of 1.50% and one time offering costs of $200K; 20% risk - weighting $ in thousands Actual Pro Forma 2020 Q1 Adjustments 2020 Q1 Regulatory Capital Common Equity Tier 1 Capital $
Slide 40: Q1 2020 Net Interest Margin and Non-Interest Expense
40 40 • Net Interest Margin impacted by Fed rate cuts of 150 bps during the quarter • NIM decreased 7 bps vs 4Q19 from 3.27% to 3.20% • 15 bps decline in asset yields offset by 8 bps improvement in funding costs • Accretion income accounted for 13 bps of NIM, in line with expectations Non Interest E
Slide 41: Current Expected Credit Loss (CECL) Implementation
41 41 Current Expected Credit Loss (CECL) Implementation ▪ 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, Busey recognized: - $16.8 million increase in the allow
Slide 42: Use of Non-GAAP Financial Measures
42 42 Use of Non - GAAP Financial Measures (1) Annualized measure Three Months Ended March 31, December 31, September 30, June 30, March 31, ($ in thousands) 2020 2019 2019 2019 2019 Net interest income $ 69,433 $ 71,936 $ 73,476 $ 73,428 $ 68,383 Non-interest income 27,517 31,638 30,936 27,896 25,9
Slide 43: Use of Non-GAAP Financial Measures
43 43 Use of Non - GAAP Financial Measures Three Months Ended March 31, December 31, September 30, June 30, March 31, ($ in thousands) 2020 2019 2019 2019 2019 Reported: Net Interest income $ 69,433 $ 71,936 $ 73,476 $ 73,428 $ 68,383 Tax-equivalent adjustment 730 781 778 777 677 Tax-equivalent inte