Slide 1: 4Q20 Quarterly Earnings Supplement
4Q20 QUARTERLY EARNINGS SUPPLEMENT January 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 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 9.03% at 12/31/20(1) Foundation • Total RBC of 17.04% at 12/31/20 • TBV per share of $16.66 at 12/
Slide 11: Robust Capital Foundation
Robust Capital Foundation Tangible Common Equity Ratio (1) Total Capital Ratio (2) ($ in m $ in millions) illions $ in in m m illions illions 17.0% $ 16.6% 16.2% 14.8% 14.0% 13.9% $461 $489 $515 9.5% 9.3% 9.2% $298 $291 8.9% 9.0% 8.4% $291 $884 $905 $921 $865 $864 $703 $739 $756 $739 $737 $731 $603
Slide 12: High Quality Loan Portfolio
High Quality Loan Portfolio Loan Portfolio Composition as of 12/31/2020 Loan Portfolio Geographic Segmentation (1) Florida Other 5% HELOCs 0% Missouri 5% 24% 1-4 Family Residential Commercial & Industrial Indiana 16% 30% 5% Illinois Construction & 66% Development 7% Owner Occupied CRE Non-Owner 13%
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) ▪ 25% of total loan portfolio (ex-PPP loans) $ in thousands 12/31/20 % of Total 12/31/20 ▪ Diversified portfolio results in low levels of Balances Loans Classified concentrated exposure NAICS Sector (ex-PPP) (ex-PPP
Slide 14: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Manufacturing Loans 1/15/21 12/31/20 % of Total Active 12/31/20 % of 12/31/20 Balances Loans Deferral Classified Category PPP Subsector (ex-PPP) (ex-PPP) Balances Balances Classified Balances Total Manufacturing Food Manufacturing $5
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) 12/31/20 % of Total 12/31/20 12/31/20 % of Total 12/31/20 Balances Loans Classified Balances Loans Classified Property Type (ex-PPP) (ex-PPP) Balances Property Type (ex-PPP)
Slide 16: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Retail Trade & Retail CRE Loans 1/15/21 12/31/20 % of Total Active % of Classified 12/31/20 Balances Loans Deferral Weighted Loans in PPP Retail Flag (ex-PPP) (ex-PPP) Balances Avg LTV Segment Balances Strip Center $288,408 4.5% $3,8
Slide 17: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Food Services Loans 1/15/21 12/31/20 % of Total Active % of Classified 12/31/20 Other Balances Loans Deferral Weighted Loans in PPP Full Serv 1% Food Services (ex-PPP) (ex-PPP) Balances Avg LTV Segment Balances Restaurant Ops Full-Se
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 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 and all deferrals gran
Slide 19: Update on COVID-Related Deferral & Modification Trends
Update on COVID –Related Deferral & Modification Trends $ in thousands Active Commercial Deferrals by Sectors 1/15/21 12/31/20 % of Total Classified Active % of Segment Balances Loans Loan Deferral in Active Property/Industry (ex-PPP) (ex-PPP) Balances Balances Deferral Hotel CRE $171,928 2.7% $0 $6
Slide 20: 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 1/15/21 1/15/21 Deferral % of Total $ in thousands # of Loans $ Balances Balances Balances Total Consumer Portfolio Loans (1) 20,801 $1,162,108 A Total Active Deferral
Slide 21: 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 22: Navigating Credit Cycle from Position of Strength
Navigating Credit Cycle from Position of Strength Overview NPAs / Assets ▪ Conservative underwriting and strong asset $ in m illions quality allowed the Company to enter the economic downturn well-prepared 10,544 9,696 ▪ Non-performing asset and classified asset ratios 7,861 7,702 have declined to m
Slide 23: Adoption of CECL Fortifies Loan Loss Reserves
Adoption of CECL Fortifies Loan Loss Reserves Allowance / Loans (ex-PPP) Allowance / NPLs $ in m illions $ in thousands 1.59% $36,598 $6,687 416% $6,368 $29,507 $27,365 $5,520 $5,568 $24,301 0.97% 0.91% 0.80% 196% 182% 138% 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 Ex-PPP Loans
Slide 24: Ample Sources of Liquidity
Ample Sources of Liquidity 2020 Q4 Average Deposit Composition Total Deposits & Loan to Deposit Ratio $ in m illions $ in m illions CD > 250k 3% $8,910 $8,678 $8,643 CD < 250k $7,902 $7,973 11% 89.1% Non-Int DDA 84.6% 84.6% 82.4% $6,249 81.1% 78.5% 30% Savings & MMDA 30% Int DDA 26% 2018 Q4 2019 Q4
Slide 25: Quarterly Earnings Review
Quarterly Earnings Review • Net Interest Income increased 4.6% from $69.8 million in Q3 to $72.9 million in Q4 • Loan interest income and fees (net of deferred costs) attributable to PPP increased to $9.5 million in 4Q20 from $6.1 million in 3Q20 • Net Interest Margin increased 20 bps vs Q3 from 2.8
Slide 26: Core Earnings Power
Core Earnings Power Core Net Income & Earnings Per Share (1) Core ROAA & ROATCE (1) ($ in thousands $ in millions) $34,255 $32,803 $31,782 14.9% 15.2% $30,535 14.5% 14.8% 1.30% 1.31% $26,191 1.25% 12.2% 1.22% $0.60 $0.62 $0.55 $0.57 1.02% $0.48 7.4% $15,479 $0.28 0.64% 2019 Q3 2019 Q4 2020 Q1 2020 Q
Slide 27: Net Interest Margin
Net Interest Margin Net Interest Income & Net Interest Margin Net Interest Margin Bridge ($ $ in millions millions) $72.7 $71.5 $73.6 $70.2 $70.4 $2.5 3Q20 NIM 2.86% $3.0 $2.5 $2.6 $2.8 PPP Contribution 0.21% Net Interest Income increased 4.6% from $69.8 million in Q3 to $72.9 million in Q4 3.27% Re
Slide 28: 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 $ in m illions of fee income provide revenue diversification $104.4 $103.6 $103.4 $98.8 $102.0 with heightened value amidst cycle of margin $97.0 compression ▪
Slide 29: Resilient Wealth Management Platform
Resilient Wealth Management Platform Wealth - Assets Under Care Overview $ in millions) ($ millions $10,228 ▪ Provides a full range of asset management, investment and fiduciary services to $9,696 $9,503 individuals, businesses and foundations, tax preparation, philanthropic advisory services $9,021
Slide 30: Focused Control on Expenses Driving Efficiency Gains
Focused Control on Expenses Driving Efficiency Gains Non-Interest Expense ($ in millions) ▪ The Company’s efforts to reduce $65,490 core expenses have driven $64,073 efficiency gains despite the margin $2,681 $60,514 $2,439 compression experienced $3,652 $2,557 $56,542 $145 $7,550 $1,017 $53,068 $2,
Slide 31: Focused Control on Expenses Driving Efficiency Gains
Focused Control on Expenses Driving Efficiency Gains Recap of Recently Completed Bank Efficiency Initiatives ▪ In accordance with the Company’s previously announced plans, 12 banking centers were closed on October 23, 2020, as part of the Company’s efforts to ensure a balance between its physical ba
Slide 32: Appendix
APPENDIX FIRST BUSEY CORPORATION
Slide 33: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures ($ in thousands) Three Months Ended (Unaudited results) December 31, S eptember 30, June 30, March 31, December 31, 2020 2020 2020 2020 2019 Net interest income $ 72,936 $ 69,753 $ 70,813 $ 69,433 $ 71,936 Non-interest income 30,499 32,285 27,964 27,517 31,638 Less
Slide 34: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures ($ in thousands) Three Months Ended (Unaudited results) December 31, S eptember 30, June 30, March 31, December 31, 2020 2020 2020 2020 2019 Reported: Net Interest income $ 72,936 $ 69,753 $ 70,813 $ 69,433 $ 71,936 Tax-equivalent adjustment 655 638 717 730 781 Tax
Slide 35: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures ($ in thousands) (Unaudited results) Year Ended (Unaudited results) Year Ended 2018 2019 2020 2018 2019 2020 Net interest income $ 241,406 $ 287,223 $ 282,935 Net income $ 98,928 $ 102,953 $ 100,344 Non-interest income 89,993 116,415 118,265 Acquisition expenses Le