First Busey Corporation · NASDAQ:BUSE
First Busey — Merger or Acquisition (March 2017)
15 slides from First Busey's merger presentation, Mar 13, 2017
Slide 1: Special Note Concerning Forward-Looking Statements and Additional Information
Special Note Concerning Forward-Looking Statements and Additional Information This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future perf
Slide 2: First Busey at a Glance
First Busey at a Glance 2014 2015 2016 ($mm) • Nearly 150-year old institution operating more than 50 branches across four states Illinois, Missouri, Indiana & Florida Fourth largest commercial bank based in Illinois 2 Headquartered in Champaign, Illinois Four strategic acquisitions announced since
Slide 3: First Busey Footprint
First Busey Footprint nounced Mar. 2017 tChampa1gn Source: SNL Financial Busey 4 Fo rt Myers An -
Slide 4: Successful Acquirer & Integrator
Successful Acquirer & Integrator • First Busey has announced four transactions since 2014, expanding into the Chicago and St. Louis markets and adding over $3.7 billion in assets. September 2014 5 Announced Transaction DateMarch 2017 Assets$665 Loans$380 Deposits$522 Branches13 MSAPeoria Announced F
Slide 5: Successful Acquirer & Integrator
Successful Acquirer & Integrator * First Busey has announced four transactions since 2014, expanding into the Chicago and St. Louis markets and adding over $3.7 billion in assets. a : = commenti | Qs Comments | soles Financial Cor: pyeFe cea (Transaction Date} Announced © Announced = ~— Announced An
Slide 6: Transaction Rationale
Transaction Rationale • 95-year old community bank with deep community ties that significantly enhances Busey's presence in Peoria MSA with #3 pro forma deposit market share ranking (#2 in Peoria County) Achievable cost savings expected from operational efficiencies and significant branch overlap wi
Slide 7: Transaction Terms
Transaction Terms First Busey acquires South Side Bank1parent, Mid Illinois Bancorp,Inc. for $133.4 million2 • -----------Approximately 70% stock I 30% cash2 • • Mid Illinois shares,in the aggregate, will be exchanged for approximately 3.116 million BUSE shares and $40.5 million in cash Shareholder
Slide 8: Transaction Details
Transaction Details • Cost savings estimated to be 40% of Mid Illinois non-interest expense base ("'$7 million) One time, pre-tax transaction-related charges of $10 million, or 143% of fully phased-in pre-tax cost savings • • • 2.0% gross credit mark or $7.6 million 0.7% net credit mark or $2.6 mill
Slide 9: Due Diligence Review
Due Diligence Review ' ]I -------------------• Thorough due diligence review of South Side's loan portfolio Gross Credit Mark $7.6 million As a %of Gross Loans 2.0% - Loan review completed by First Busey internal team Asa%ofNPAs 100% - Over 70% of outstanding loan balances reviewed South Side Loan L
Slide 10: Due Diligence Review
Due Diligence Review Due Diligence Overview Estimated Credit Mark + + Thorough due diligence review of South Side’s Gross Credit Mark $7.6 million loan portfolio — Loan review completed by First Busey ‘As a % of Gross Loans 20% internal team ‘As a% of NPAs 100% = Over 70% of outstanding loan balance
Slide 11: Overview of South Side Bank
Overview of South Side Bank Overview South Side has provided banking and financial services to the Peoria area community since 1922 Headquartered in Peoria, IL Top 3 deposit market share with 13 branches in Peoria MSA Attractive, low cost deposit franchise with 73% loan/deposit ratio Established Tru
Slide 12: Pro Forma Franchise Overview
Pro Forma Franchise Overview Significantly enhances Busey’s existing presence in Peoria market Branch Map • ‒ Pro forma MSA deposit market share improves to #3 from #7 #2 pro forma ranking in Peoria County ‒ • Branch overlap represents lower-risk opportunity for significant cost savings ‒ 9 South Si
Slide 13: Pro Forma Loan Portfolio
Pro Forma Loan Portfolio • Approximately 50% of portfolio is 1-4 family • Virtually all residential loans in the portfolio are within 70 miles of Peoria • $58.9 million of residential real estate loans originated in 2016 NPAs1/Assets of 1.15% as of 12/31/2016 • ----------------------------3.0% 3.2%
Slide 14: Pro Forma Deposit Composition
Pro Forma Deposit Composition ---------------------------------------------------------------------------------------• Core deposits representing approximately 88% of total deposits1 Weighted average life of non time deposits is greater than 8 years Non-interest bearing deposits over 12% of total de
Slide 15: Pro Forma Deposit Composition
Pro Forma Deposit Composition South Side Deposit Overview Cost of Depo: Core deposits representing approximately 88% of 100% 0.86% total deposits" 080% + Weighted average life of non time deposits is con greater than 8 years aa + Non-interest bearing deposits over 12% of total Cos 030% 0.29% 032% de