Slide 1: 1Q21 Quarterly Earnings Supplement
1Q21 QUARTERLY EARNINGS SUPPLEMENT April 27, 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 Protecting a Strong Balance Sheet 10 Robust Capital Foundation 11 High Quality Loan Portfolio 12 Update on COVID - Relat
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 Business Investment Advisory Business Solutions Commercial Lending Investment Services Custom Consulting Business Saving Services Lockbox Processing Business Checking Services Investment Management Payment Concentrator Proc
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: 8 24 Deposits: Deposits: $1.1B $2.7B Avg. Deposits Avg. Deposits Per Bra
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 & CEO of First Busey since 2007. Mr. Dukeman was nearly 150 years of combined President & CEO of Main Street Trust from 1998 until i
Slide 9: Investment Highlights
Investment Highlights • Established in 1868, with more than 150 years of commitment to local communities and businesses • Operating with 68 branches across four states: Illinois, Missouri, Indiana, and Florida Attractive • Experienced and proven management team Franchise • Attractive and diverse bus
Slide 10: Protecting a Strong Balance Sheet
Protecting a Strong Balance Sheet • Capital ratios significantly in excess of well-capitalized minimums Robust • Regulatory capital relief on CECL implementation and PPP loans Capital • TCE/TA ratio of 8.82% at 3/31/21(1) Foundation • Total RBC of 17.39% at 3/31/21 • TBV per share of $16.65 at 3/31/
Slide 11: Robust Capital Foundation
Robust Capital Foundation Tangible Common Equity Ratio (1) Total Capital Ratio (2) ($ in m $ in millions) illions $ in in m m illions illions 17.0% 17.4% $ 16.6% 16.2% 14.0% 13.9% $461 $489 $515 $538 9.3% $298 $291 9.2% 9.0% 8.9% 8.8% 8.4% $921 $919 $905 $884 $739 $756 $739 $737 $731 $728 $865 $864
Slide 12: High Quality Loan Portfolio
High Quality Loan Portfolio Loan Portfolio Composition as of 3/31/2021 Loan Portfolio Geographic Segmentation (1) Other Florida HELOCs 6% 0% 5% Missouri 1-4 Family 24% Residential Commercial & 15% Indiana Industrial 5% Construction & 31% Illinois Development 65% 6% Owner Non-Owner Occupied CRE Occup
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% of total loan portfolio (ex-PPP loans) 3/31/21 % of Total 3/31/21 Balances Loans Classified ▪ Diversified portfolio results in low levels of NAICS Sector (ex-PPP) (ex-PPP) Balances concentrated
Slide 14: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Manufacturing Loans 4/16/21 3/31/21 % of Total Active 3/31/21 % of 3/31/21 Balances Loans Deferral Classified Category PPP Total Subsector (ex-PPP) (ex-PPP) Balances Balances Classified Balances Manufacturing Loans: $267 Food Manufac
Slide 15: 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) 3/31/21 % of Total 3/31/21 3/31/21 % of Total 3/31/21 Balances Loans Classified Balances Loans Classified Property Type (ex-PPP) (ex-PPP) Balances Property Type (ex-PPP) (ex-
Slide 16: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Retail Trade & Retail CRE Loans 4/16/21 3/31/21 % of Total Active % of Classified 3/31/21 Balances Loans Deferral Weighted Loans in PPP Retail Flag (ex-PPP) (ex-PPP) Balances Avg LTV Segment Balances Strip Center $275,635 4.4% $3,869
Slide 17: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Food Services Loans 4/16/21 Other 3/31/21 % of Total Active % of Classified 3/31/21 1% Balances Loans Deferral Weighted Loans in PPP Full Serv Food Services (ex-PPP) (ex-PPP) Balances Avg LTV Segment Balances Restaurant Ops Full-Serv
Slide 18: 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 19: 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 23.1% at 6/30/2020 to 3.5% as of 4/16/2021 ▪ 35% of the current active deferred loans are projected to exit the payment relief progr
Slide 20: Update on COVID-Related Deferral & Modification Trends
Update on COVID –Related Deferral & Modification Trends $ in thousands Active Commercial Deferrals by Sectors 4/16/21 4/16/21 3/31/21 % of Total Classified Active Active % of Segment Balances Loans Loan Deferrals Deferrals in Active Property/Industry (ex-PPP) (ex-PPP) Balances - Full Pmts - IO Pmts
Slide 21: 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 4/16/21 4/16/21 Deferral Consumer $ in thousands # of Loans $ Balances Balances Balances Total Consumer Portfolio Loans (1) 19,955 $1,128,496 A Total Active
Slide 22: 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 23: Navigating Credit Cycle from Position of Strength
Navigating Credit Cycle from Position of Strength NPAs / Assets Overview $ in m illions ▪ Conservative underwriting and strong asset quality allowed the Company to enter the 10,544 10,760 economic downturn well-prepared 9,696 ▪ Non-performing asset and classified asset ratios 7,702 have declined to
Slide 24: Fortress Reserve Build Following CECL Adoption
Fortress Reserve Build Following CECL Adoption Allowance / Loans (ex-PPP) Allowance / NPLs $ in m illions $ in thousands 1.59% $36,598 1.50% 416% 411% $6,687 $6,368 $6,257 $29,507 $5,568 $24,301 $22,855 0.91% 138% 0.80% 182% 2018 Q4 2019 Q4 2020 Q4 2021 Q1 2018 Q4 2019 Q4 2020 Q4 2021 Q1 Ex-PPP Loan
Slide 25: Ample Sources of Liquidity
Ample Sources of Liquidity 2021 Q1 Average Deposit Composition Total Deposits & Loan to Deposit Ratio $ in m illions CD > 250k 2% $8,910 $8,678 $8,874 $8,643 CD < 250k $7,973 $7,902 10% Non-Int DDA 84.6% 84.6% 82.4% 81.1% 78.5% 31% 76.4% Savings & MMDA 30% Int DDA 27% 2019 Q4 2020 Q1 2020 Q2 2020 Q3
Slide 26: Quarterly Earnings Review
Quarterly Earnings Review • Net Interest Income decreased 11.0% from $72.9 million in 4Q20 to $64.9 million in 1Q21 • Loan interest income and fees (net of deferred costs) attributable to PPP decreased to $4.8 million in 1Q21 from $9.5 million in 4Q20 • $1.0 million less net interest income due to 2
Slide 27: Core Earnings Power
Core Earnings Power Core Net Income & Earnings Per Share (1) Core ROAA & ROATCE (1) ($ in thousands $ in millions) 16.9% $38,065 1.46% 14.9% 14.8% 15.2% $34,255 $31,782 $32,803 1.31% 1.30% 12.2% 1.22% $0.69 $26,191 $0.62 $0.60 $0.57 1.02% $0.48 7.4% $15,479 $0.28 0.64% 2019 Q4 2020 Q1 2020 Q2 2020 Q
Slide 28: Net Interest Margin
Net Interest Margin Net Interest Income(1) Key Factors: • PPP contribution to net interest income declined $4.7 $ in thousands million from $9.5 million in 4Q20 to $4.8 million in 1Q21 73,591 72,717 71,530 due to lower average volumes and reduced forgiveness 70,163 70,391 2,983 • $1.0 million less n
Slide 29: Diversified and Significant Sources of Fee Income
Diversified and Significant Sources of Fee Income Overview Non-Interest Income / Total Revenue ▪ Resilient, varied and complimentary sources of $ in m illions fee income provide revenue diversification with heightened value amidst cycle of margin $103.6 $102.0 $103.4 $97.0 $98.8 $96.3 compression ▪
Slide 30: Resilient Wealth Management Platform
Resilient Wealth Management Platform Wealth - Assets Under Care Overview $ in millions) ($ millions $10,692 ▪ Provides a full range of asset management, $10,228 investment and fiduciary services to individuals, businesses and foundations, tax $9,503 preparation, philanthropic advisory services $8,92
Slide 31: Focused Control on Expenses Driving Efficiency Gains
Focused Control on Expenses Driving Efficiency Gains Non-Interest Expense ▪ The Company’s efforts to reduce core ($ in millions) expenses have driven efficiency gains $64,073 despite the margin compression $2,439 $60,514 experienced $2,557 $145 $7,550 ▪ Core adjusted expenses(1) of $51.4 $1,017 $56,
Slide 32: Acquisition of Cummins-American Corp (Glenview State Bank)
Acquisition of Cummins-American Corp (Glenview State Bank) Company Overview Branch Map • Cummins-American Corp. has provided banking and BUSE (68) financial services in the Chicago area since 1921 Glenview State through its wholly-owned subsidiary Glenview State Bank (7) Bank • Seven full-service br
Slide 33: Cummins-American Corp. Integration Update
Cummins-American Corp. Integration Update Jan. 19, 2021 Mar./Apr. 2021 May 17, 2021 Following Legal/Financial Announced Received Cummins-American Close acquisition of regulatory shareholder Cummins-American approvals meeting/vote Anticipated bank merger/core system conversion Actions Taken Next Step
Slide 34: Appendix
APPENDIX FIRST BUSEY CORPORATION
Slide 35: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures ($ in thousands) Three Months Ended (Unaudited results) March 31, 2021 December 31, 2020 S eptember 30, 2020 June 30, 2020 March 31, 2020 Net interest income $64,893 $72,936 $69,753 $70,813 $69,433 Non-interest income 31,445 30,499 32,285 27,964 27,517 Less securit
Slide 36: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures ($ in thousands) Three Months Ended (Unaudited results) March 31, 2021 December 31, 2020 S eptember 30, 2020 June 30, 2020 March 31, 2020 Reported: Net Interest income $64,893 $72,936 $69,753 $70,813 $69,433 Tax-equivalent adjustment 601 655 638 717 730 Tax-equival