First Busey Corporation · NASDAQ:BUSE
First Busey — Investor Day (May 2023)
47 slides from First Busey's investor day presentation, May 10, 2023
Slide 1: Investor & Analyst Day
isis INVESTOR & ANALYST DAY MAY 10, 2023 | NASDAQ: BUSE FIRST BUSEY CORPORATION
Slide 2: Agenda
BUSE Investor & Analyst Day 2023 Agenda 2 Agenda Time Topic Speakers Van Dukeman Chairman, President & CEO, First Busey Corp. 1:00 – 1:30 pm One Busey Robin Elliott President & CEO, Busey Bank | CEO, FirsTech Regional Operating Model and Willie Mayberry President of Regional Banking 1:30 – 2:00 pm C
Slide 3: Special Note Concerning Forward-Looking Statements
BUSE Investor & Analyst Day 2023 Disclosures 3 Special Note Concerning Forward-Looking Statements Statements made in this presentation, other than those concerning historical financial information, may be considered forward-looking statements within the meaning of the Private Securities Litigation R
Slide 4: Non-GAAP Financial Information
BUSE Investor & Analyst Day 2023 Disclosures 4 Non-GAAP Financial Information This presentation 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
Slide 5: One Busey
One Busey Van Dukeman Chairman, President & CEO, First Busey Corp. Robin Elliott President & CEO, Busey Bank CEO, FirsTech
Slide 6: BUSE Overview
BUSE Investor & Analyst Day 2023 One Busey 6 BUSE Overview Regional operating model Among the Best serving four regions • 155+ year-old institution headquartered in Northern (IL) Champaign, IL Central (IL/IN) • Diversified financial holding company with comprehensive and innovative financial Gateway
Slide 7: Fortress Balance Sheet at Attractive Valuation
BUSE Investor & Analyst Day 2023 One Busey 7 Fortress Balance Sheet at Attractive Valuation Market Market Cap Price Per Share Price/TBV Price/2023E ² Dividend Yield Metrics 1 $1.0B $17.99 1.2x 7.9x 5.3% BUSE vs. Peer Group³ Metrics as of 1Q23 Price / 2023 Earnings ▪ BUSE vs. Peer Group BUSE LTM Fee
Slide 8: Forging the Franchise
BUSE Investor & Analyst Day 2023 One Busey 8 Forging the Franchise 2019 BUSE closes the acquisition of Bank of 2020 Following a period of significant 2021 BUSE crosses $10B threshold by 2022 Regional Operating Model Edwardsville with growth in services expanding into the begins to propel operations
Slide 9: Integrated Enterprise-wide Go-to-Market Strategy
BUSE Investor & Analyst Day 2023 One Busey 9 Integrated Enterprise-wide Go-to-Market Strategy One Busey Regional Operating Model Relationship managers are equipped with knowledge to provide service Enterprise-wide sales structure is organized by region – bringing the excellence for every solution th
Slide 10: Focused on Service
BUSE Investor & Analyst Day 2023 Regional Operating Model and Commercial Banking Strategy 10 Focused on Service The Net Promoter System® (NPS) is our primary survey measure that is the cornerstone of our client feedback program and the gold standard for companies measuring client loyalty The Net Pro
Slide 11: Regions
BUSE Investor & Analyst Day 2023 One Busey 11 Regions Central Gateway Northern Florida Banking Centers 25 20 10 3 Legacy, expand with customers Theme Wealth, Commercial, Private Largest growth – Wealth, Wealth-led strategy – Wealth, outside of region – Wealth, Client, Personal Commercial, Private Cl
Slide 12: Regional Operating Model & Commercial Banking Strategy
Regional Operating Model & Commercial Banking Strategy Willie Mayberry President of Regional Banking Sean Gallagher Regional President, Northern Region
Slide 13: Regional Operating Model
BUSE Investor & Analyst Day 2023 Regional Operating Model and Commercial Banking Strategy 13 Regional Operating Model • Each Region is equipped to handle all customer needs with staffing across Commercial, Wealth Management and Consumer Banking services • Targeted regional hires that are experts acr
Slide 14: Culture Development
BUSE Investor & Analyst Day 2023 Regional Operating Model and Commercial Banking Strategy 14 Culture Development • An integral component of adopting the Regional Operating Model and bringing together associates from many different organizational backgrounds is the development of an integrated sales
Slide 15: Incentives Fully Aligned
BUSE Investor & Analyst Day 2023 Regional Operating Model and Commercial Banking Strategy 15 Incentives Fully Aligned • Other financial institutions have competing components by segment – our regionalization plan broadens the view for each business segment and increases collaboration • Expertise is
Slide 16: Regional Operating Model in Action
BUSE Investor & Analyst Day 2023 Regional Operating Model and Commercial Banking Strategy 16 Regional Operating Model in Action Regional Model encourages collaboration on New Relationships as well as expanding Existing Relationships Banking Centers • 73% of New Commercial Loans over $1MM in 2022 wer
Slide 17: Wealth Management Strategy
Wealth Management Strategy Jeff Burgess President of Busey Wealth Management Zach Hillard Chief Investment Officer Derek Sasveld Director of Investment Research and Strategy
Slide 18: Fully Integrated Wealth Management Platform
BUSE Investor & Analyst Day 2023 Wealth Management Strategy 18 Fully Integrated Wealth Management Platform As of 3/31/23 $11.2 Billion $54.5 Million 41.7% +156 bps LTMblended Internal investment team’s outperformance of the Assets Under Care LTM Revenue PT Margin LTM benchmark¹ 3 I. Client-Focused S
Slide 19: Capabilities & Service Excellence Positioned for Success
BUSE Investor & Analyst Day 2023 Wealth Management Strategy 19 Capabilities & Service Excellence Positioned for Success Investment experience Variety of solutions can be limited or siloed likely to be limited due Broadening relationship share with within a few individuals to resource constraints ind
Slide 20: Fully Internalized Investment Office
BUSE Investor & Analyst Day 2023 Wealth Management Strategy 20 Fully Internalized Investment Office Preserving and Growing Wealth Disciplined, Consistent Process Adaptive, Tailored Approach Value-Added Investment Performance • Focused on gaining a deep • Strategically selecting appropriate • Highly
Slide 21: Wealth Management Services
BUSE Investor & Analyst Day 2023 Wealth Management Strategy 21 Wealth Management Services Personal Services Institutional Services Target Mass Affluent & Ultra-High Net Worth & Foundation, Nonprofit, Corporate Retirement Market High Net Worth Emerging Wealth Family Office Endowment Plans Portion of
Slide 22: Laser-Focused on Priorities
BUSE Investor & Analyst Day 2023 Wealth Management Strategy 22 Laser-Focused on Priorities All metrics as of 3/31/23 and cite the total portfolio Objective Opportunity Action Plan • ~55% of all wealth clients have a deposit account • Implementing One Busey strategies to expand services within all re
Slide 23: FirsTech Strategy
FirsTech Strategy Robin Elliott President & CEO, Busey Bank CEO, FirsTech
Slide 24: FirsTech Story
BUSE Investor & Analyst Day 2023 FirsTech Strategy 24 FirsTech Story Revenue Growth • FirsTech was founded in 1984 as lockbox processing facility and our core service has evolved into eLockbox, now providing online banking & bill payment for our $21.8 million $19.7 million customers nearly 40 years
Slide 25: FirsTech System
BUSE Investor & Analyst Day 2023 FirsTech Strategy 25 FirsTech System Frictionless Payments Comprehensive Single Vendor Relationship Core Integration Exceptional Customer Experience
Slide 26: Innovation & Core Business
BUSE Investor & Analyst Day 2023 FirsTech Strategy 26 Innovation & Core Business Target Industries Community Banks & Utilizing the Bank Charter for Innovation Utilities Insurance Credit Unions • Focus on how to best use the bank’s features & benefits to Small & Medium-Sized Municipalities Telecom Bu
Slide 27: Credit Discipline
Credit Discipline Bob Plecki Vice Chairman of Credit
Slide 28: Conservative Approach to Credit
BUSE Investor & Analyst Day 2023 Credit Discipline 28 Conservative Approach to Credit Strong Asset Quality $200 OREO & Repos Assets Nonaccrual Loans 2.00 $millions NPAs to Assets % Regional Banking’s go-to-market focus on well-capitalized individuals & BUSE NPAs / Assets KRE Median¹ NPAs / Assets th
Slide 29: Well-Diversified & Conservatively Underwritten Portfolio
BUSE Investor & Analyst Day 2023 Credit Discipline 29 Well-Diversified & Conservatively Underwritten Portfolio Lending to well-capitalized individuals and their companies across diverse industries Weighted Average LTV of 61% for new CRE-I originations in the All C&I loans are underwritten to 1.20x F
Slide 30: Deeper Dive into Portfolios: Apartments, Student Housing & Manufacturing
BUSE Investor & Analyst Day 2023 Credit Discipline 30 Deeper Dive into Portfolios: Apartments, Student Housing & Manufacturing Apartments All data as of 3/31/23 Manufacturing C&I Portion of Weighted- % of Long-Term Busey Classified Loan $ in thousands 3/31/23 CRE-I Portfolio Average LTV Customers (5
Slide 31: Office & Retail CRE-I
BUSE Investor & Analyst Day 2023 Credit Discipline 31 Office & Retail CRE-I • Office CRE-I & Retail CRE-I portfolios continue to be actively monitored and remain below our risk appetite thresholds vs. risk-based capital • Granular portfolios that are regularly reviewed at portfolio management meetin
Slide 32: Vigilant, High-Touch Portfolio Management
BUSE Investor & Analyst Day 2023 Credit Discipline 32 Vigilant, High-Touch Portfolio Management Strong portfolio management that identifies early warning indicators and proactively engages the Special Assets Group early in the credit review process Weekly pipeline & portfolio management meetings and
Slide 33: Financial Performance & Investment Thesis
Financial Performance & Investment Thesis Jeff Jones CFO Ted Rosinus Head of Corporate Development and Investor Relations
Slide 34: Attractive Returns on a Fortress Balance Sheet, Priced at a Discount
BUSE Investor & Analyst Day 2023 Financial Performance & Investment Thesis 34 Attractive Returns on a Fortress Balance Sheet, Priced at a Discount Consistent positive trends in PPNR, EPS, and TBV (ex AOCI) + dividends At/Above median risk-adjusted returns Diversified & growing revenue streams Proact
Slide 35: Consistent Growth in Returns
BUSE Investor & Analyst Day 2023 Financial Performance & Investment Thesis 35 Consistent Growth in Returns Adjusted Net Income & Earnings Per Share¹ Adjusted ROAA & Adjusted ROATCE¹ $40.0 $1. 20 20. 0% 1.70% $ in millions 18. 0% 19.0% $35.0 $36.4 $36.3 $36.8 18.5% 17.8% 1.50% $1. 00 16. 0% $30.0 $30
Slide 36: Diversified Revenue Streams
BUSE Investor & Analyst Day 2023 Financial Performance & Investment Thesis 36 Diversified Revenue Streams Net Interest Income¹ Net Interest Margin¹ $ 10 0, 00 0 $ in millions 4.05% $91.7 $86.8 3.76% $ 90 ,0 00 $86.4 $0.5 3.31% 3.24% 3.13% $0.1 $0.4 2.91% 3.00% $ 80 ,0 00 $76.5 $0.8 2.66% 2.68% 2.99%
Slide 37: Focused Control on Expenses
BUSE Investor & Analyst Day 2023 Financial Performance & Investment Thesis 37 Focused Control on Expenses Noninterest Expenses Expenses ex-Acq. Acq./Restructuring Exp. Adj. Core Efficiency Ratio ¹ ▪ Continue to be mindful and diligent on expenses, restricting new hires by targeting critical replacem
Slide 38: Substantial Liquidity and a Stable, Granular Deposit Base
BUSE Investor & Analyst Day 2023 Financial Performance & Investment Thesis 38 Substantial Liquidity and a Stable, Granular Deposit Base All data as of 3/31/23 Deposit ▪ Robust holding company and bank-level liquidity Portfolio Core Deposits ¹ Composition 98% ▪ Strong core deposit franchise at 3/31/2
Slide 39: Robust Capital Foundation
BUSE Investor & Analyst Day 2023 Financial Performance & Investment Thesis 39 Robust Capital Foundation Tangible Common Equity ¹ & CET1 Ratios Total Capital Ratio $ in millions $ in millions $900 12.0% 12.2% 13. 0% 11.9% 11.8% 11.8% 16.6% 16.4% 16.1% 12. 0% $850 15.8% 16.0% $856 $845 11. 0% $800 10.
Slide 40: Trading at a Discount: Illustrative Sum-of-the-Parts Analysis
BUSE Investor & Analyst Day 2023 Financial Performance & Investment Thesis 40 Trading at a Discount: Illustrative Sum-of-the-Parts Analysis All $ in millions 2023 Median Consensus 2023 Median Consensus Current Market Cap ⁵ $995 Revenue ¹ $56.1 Revenue ³ $23.7 Less implied value for BWM and FT $211 -
Slide 41: Appendix
Appendix FIRST BUSEY CORPORATION
Slide 42: Non-GAAP Financial Information
BUSE Investor & Analyst Day 2023 Appendix: Non-GAAP Financial Information 42 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) Thre
Slide 43: Non-GAAP Financial Information
BUSE Investor & Analyst Day 2023 Appendix: Non-GAAP Financial Information 43 Non-GAAP Financial Information Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Return on Average Assets, Average Tangible Common Equity, Return on Average Tangible Common Equity, and Adjusted Return on Av
Slide 44: Non-GAAP Financial Information
BUSE Investor & Analyst Day 2023 Appendix: Non-GAAP Financial Information 44 Non-GAAP Financial Information Adjusted Net Interest Income and Adjusted Net Interest Margin (dollars in thousands) Three Months Ended March 31, December 31, March 31, 2023 2022 2022 Net interest income $ 85,857 $ 91,149 $
Slide 45: Non-GAAP Financial Information
BUSE Investor & Analyst Day 2023 Appendix: Non-GAAP Financial Information 45 Non-GAAP Financial Information Noninterest Expense Excluding Amortization of Intangible Assets, Adjusted Noninterest Expense, Adjusted Core Expense, Noninterest Expense Excluding Non-operating Adjustments, Efficiency Ratio,
Slide 46: Non-GAAP Financial Information
BUSE Investor & Analyst Day 2023 Appendix: Non-GAAP Financial Information 46 Non-GAAP Financial Information Tangible Book Value and Tangible Book Value Per Common Share (dollars in thousands, except per share amounts) As of March 31, December 31, September 30, June 30, March 31, 2023 2022 2022 2022
Slide 47: Non-GAAP Financial Information
BUSE Investor & Analyst Day 2023 Appendix: Non-GAAP Financial Information 47 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 March 31, December 31, September 30, Jun