Slide 1: 2Q21 Quarterly Earnings Supplement
2Q21 QUARTERLY EARNINGS SUPPLEMENT July 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 Fortress Balance Sheet 10 Robust Capital Foundation 11 High Quality Loan Portfolio 12 Update on COVID - Related Deferral
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 Custom Consulting Investment Services Business Saving Services Lockbox Processing Business Checking Services Payment Concentrator Processing Merchant Servic
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: 15 24 Deposits: Deposits: $2.4B $2.9B Avg. Avg. Deposits Per Deposits Pe
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 Attractive • Operating with 75 branches across four states: Illinois, Missouri, Indiana, and Florida Franchise • Experienced and proven management team • Attractive and diverse bus
Slide 10: Fortress Balance Sheet
Fortress Balance Sheet • TCE/TA ratio of 8.15% at 6/30/21(1) Robust • Capital ratios significantly in excess of well-capitalized minimums Capital - Total RBC of 16.41% and CET1 ratio of 12.26% at 6/30/21 Foundation • TBV per share of $17.11 at 6/30/21(1), up 7.5% year-over-year • Diversified portfol
Slide 11: Robust Capital Foundation
Robust Capital Foundation Tangible Common Equity Ratio (1) Total Capital Ratio (2) $($inin millions millions) $ in $ in m m illions illions 17.0% 17.4% 16.6% 16.4% 16.2% 13.9% $517 $461 $489 $515 $538 9.2% $291 8.9% 9.0% 8.8% 8.4% 8.2% $921 $919 $982 $905 $756 $739 $737 $731 $728 $806 $884 $864 2020
Slide 12: High Quality Loan Portfolio
High Quality Loan Portfolio Loan Portfolio Composition as of 6/30/2021 Loan Portfolio Geographic Segmentation (1) Other Florida HELOCs 3% Commercial 6% 4% & Industrial Missouri 1-4 Family Residential 25% 22% 18% Indiana Owner 4% Construction & Occupied Development CRE Illinois 7% Non-Owner 14% 68% O
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) ▪ 24% of total loan portfolio (ex-PPP loans) $ in thousands 6/30/21 % of Total 6/30/21 ▪ Diversified portfolio results in low levels of Balances Loans (ex- Classified concentrated exposure NAICS Sector (ex-PPP) PPP)
Slide 14: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Manufacturing Loans 6/30/21 6/30/21 % of Total Active 6/30/21 % of 6/30/21 Total Balances Loans Deferral Classified Category PPP Manufacturing Subsector (ex-PPP) (ex-PPP) Balances(1 ) Balances Classified Balances Loans: $264 Machiner
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) % of Total 6/30/21 % of Total 6/30/21 6/30/21 Loans Classified 6/30/21 Loans Classified Property Type Balances (ex-PPP) Balances Property Type Balances (ex-PPP) Balances Indu
Slide 16: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Retail Trade & Retail CRE Loans 6/30/21 % of 6/30/21 % of Total Active Classified 6/30/21 Balances ex-PPP Deferral Weighted Loans in PPP Retail Flag (ex-PPP) Loans Balances(1 ) Avg LTV Segment Balances Strip Center $280,086 4.1% $2,6
Slide 17: Loan Portfolio: Low Levels of Concentrated Exposure
Loan Portfolio: Low Levels of Concentrated Exposure $ in thousands Food Services Loans 6/30/21 % of 6/30/21 % of Total Active Classified 6/30/21 Balances Loans Deferral Weighted Loans in PPP Food Services (ex-PPP) (ex-PPP) Balances(1 ) Avg LTV Segment Balances Full-Service Restaurant CRE $61,023 0.9
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 2.8% as of 6/30/2021 with only 0.2% on full-payment deferral ▪ 19.4% of the current active deferred loans are
Slide 20: Update on COVID-Related Deferral & Modification Trends
Update on COVID –Related Deferral & Modification Trends $ in thousands Active Commercial Deferrals by Sectors 6/30/21 6/30/2021 6/30/21 Classified Active Active % of Segment Balances Loan Deferrals I/O in Active Property/Industry (ex-PPP) Balances - Full Pmts Modifications Deferral Hotel CRE $170,53
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 Total 6/30/21 6/30/21 % of All Deferral Consumer $ in thousands # of Loans $ Balances Balances Balances Total Consumer Portfolio Loans (1) 19,542 $1,144,074 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 12,415 economic downturn well-prepared 10,544 9,696 ▪ Non-performing asset and classified asset ratios have declined to multi-
Slide 24: Substantial Reserve Build Following CECL Adoption
Substantial Reserve Build Following CECL Adoption Allowance / Loans (ex-PPP) Allowance / NPLs $ in m illions $ in thousands 1.59% $36,598 $6,795 416% $6,687 $6,368 $29,507 $28,315 $5,568 1.40% $24,301 337% 0.91% 138% 182% 0.80% 2018 Q4 2019 Q4 2020 Q4 2021 Q2 2018 Q4 2019 Q4 2020 Q4 2021 Q2 Ex-PPP L
Slide 25: Ample Sources of Liquidity
Ample Sources of Liquidity 2021 Q2 Average Deposit Composition Total Deposits & Loan to Deposit Ratio $ in millions CD > 250k 2% $10,337 CD < 250k 9% $8,910 $8,643 $8,678 $8,874 $7,973 Non-Int DDA Savings & 84.6% 81.1% 82.4% 32% 78.5% 76.4% MMDA 69.5% 31% Int DDA 26% 2020 Q1 2020 Q2 2020 Q3 2020 Q4
Slide 26: Quarterly Earnings Review
Quarterly Earnings Review • Net Interest Income decreased from $64.9 million in 1Q21 to $64.5 million in 2Q21 • The acquisition of Glenview State Bank on 5/31/21 contributed $1.5mm to 2Q21 consolidated NII • Loan interest income and fees (net of deferred costs) attributable to PPP decreased to $4.3
Slide 27: Core Earnings Performance
Core Earnings Performance Core Net Income & Earnings Per Share (1) Core ROAA & ROATCE (1) ($ in thousands $ in millions) 16.9% $38,065 1.46% 14.8% 15.2% $34,255 $32,803 $31,921 1.31% 13.1% 12.2% 1.22% $0.69 $26,191 $0.62 $0.60 1.12% $0.57 1.02% $0.48 7.4% $15,479 $0.28 0.64% 2020 Q1 2020 Q2 2020 Q3
Slide 28: Net Interest Margin
Net Interest Margin Key Factors: Net Interest Income(1) • Substantial majority of 2Q21 net organic loan growth $ in thousands came on late in the quarter 73,591 • PPP contribution to net interest income declined $0.5 71,530 70,163 70,391 million from $4.8 million in 1Q21 to $4.3 million in 2Q21 2,82
Slide 29: Diversified and Significant Sources of Fee Income
Diversified and Significant Sources of Fee Income Overview ▪ Resilient, varied and complimentary sources of Non-Interest Income / Total Revenue fee income provide revenue diversification with $ in m illions heightened value amidst cycle of margin $102.0 $103.4 $97.0 $98.8 $96.3 $97.6 compression ▪ N
Slide 30: Resilient Wealth Management Platform
Resilient Wealth Management Platform Wealth - Assets Under Care Overview ($ $ in millions) millions $12,303 ▪ Provides a full range of asset management, investment and fiduciary services to individuals, businesses and foundations, tax $10,692 preparation, philanthropic advisory services $10,228 and
Slide 31: FirsTech Growth and Expansion of Services
FirsTech Growth and Expansion of Services Overview Multi-Layered Platform ▪ FirsTech provides custom payment processing solutions through a comprehensive suite of capabilities including mobile bill pay, walk-in payment processing, lockbox, online bill pay, IVR; and electronic concentration of paymen
Slide 32: Focused Control on Expenses
Focused Control on Expenses Non-Interest Expense ▪ Core adjusted expenses(1) of $57.8 million in 2Q21 excluding amortization, provision for unfunded ($ in millions) $ in millions $64,073 $62,625 and acquisition / restructuring related charges $2,439 $2,650 ▪ Deferral of PPP loan origination costs of
Slide 33: Personal Banking Transformation Plan
Personal Banking Transformation Plan Overview of Planned Branch Consolidation ▪ Based on thoughtful consideration and analysis, the Company decided in July 2021 on a plan to close and consolidate 15 Busey Bank banking centers to ensure a balance between the Company’s physical banking center network
Slide 34: Acquisition of Cummins-American Corp (Glenview State Bank)
Acquisition of Cummins-American Corp (Glenview State Bank) Legal and financial close of the acquisition occurred on May 31, 2021. Bank merger and conversion to occur during 3Q21. Consolidated financial results for 2Q21 include one month of contribution from CAC/GSB. Company Overview Strategic Ration
Slide 35: Appendix
APPENDIX FIRST BUSEY CORPORATION
Slide 36: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures ($ in thousands) Three Months Ended (Unaudited results) June 30, 2021 March 31, 2021 December 31, 2020 S eptember 30, 2020 June 30, 2020 Net interest income $64,542 $64,893 $72,936 $69,753 $70,813 Non-interest income 33,011 31,445 30,499 32,285 27,964 Less securiti
Slide 37: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures ($ in thousands) Three Months Ended (Unaudited results) June 30, 2021 March 31, 2021 December 31, 2020 S eptember 30, 2020 June 30, 2020 Reported: Net Interest income $64,542 $64,893 $72,936 $69,753 $70,813 Tax-equivalent adjustment 579 601 655 638 717 Tax-equivale