8-K - BUSE - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 26, 2022

First Busey Corporation **** (Exact name of registrant as specified in its charter)


Nevada	0-15950	37-1078406
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

100 W. University Ave. Champaign , Illinois **** 61820 (Address of principal executive offices) (Zip code)

( 217 ) 365-4544 (Registrant's telephone number, including area code)

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


	☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
	☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
	☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	BUSE	Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b– 2 of the Securities Exchange Act of 1934 (§ 240.12b–2 of this chapter). ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02Results of Operations and Financial Condition.

On April 26, 2022, First Busey Corporation (First Busey) issued a press release disclosing financial results for the quarter ended March 31, 2022. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by First Busey for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), or otherwise subject to the liabilities of that section, nor will any of such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (Securities Act), or the Exchange Act.

Item 7.01Regulation FD Disclosure.

On April 26, 2022, First Busey published supplemental slides discussing First Busey’s financial results for the quarter ended March 31, 2022. A copy is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

The information in Item 7.01 of this Current Report on Form 8-K and Exhibit 99.2 attached hereto is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by First Busey for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor will any of such information or exhibits be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.

Item 9.01Financial Statements and Exhibits.

(d)Exhibits.







Exhibit Number		Description of Exhibit
99.1		Press Release issued by First Busey Corporation, dated April 26, 2022.

99.2		Supplemental slides issued by First Busey Corporation, dated April 26, 2022.

104		Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



Date: April 26, 2022<br><br>	First Busey Corporation


	By:	/s/ Jeffrey D. Jones
	Name:	Jeffrey D. Jones
	Title:	Chief Financial Officer

First Busey Announces 2022 First Quarter Results

April 26, 2022

First Busey Announces 2022 First Quarter Earnings

CHAMPAIGN, IL – (GLOBE NEWSWIRE) – First Busey Corporation (Nasdaq: BUSE)

Message from our Chairman & CEO

First Quarter 2022 Highlights:

●First quarter 2022 net income of $28.4 million and diluted EPS of $0.51

●First quarter 2022 adjusted net income^1^ of $29.1 million and adjusted diluted EPS^1^ of $0.52

●Core loan^1^ growth of $127.1 million, or 7.2% annualized, in the first quarter

●First quarter net interest margin increased nine basis points to 2.45% compared to 2.36% in the fourth quarter of 2021

●Non-performing assets declined to 0.13% of total assets in the first quarter

●Wealth management assets under care of $12.33 billion at March 31, 2022, down from $12.73 at December 31, 2021, principally due to a reduction in market valuations and up from $10.69 billion at March 31, 2021, which represents 15.3% year-over-year growth

●FirsTech revenue^2^ of $5.4 million for the first quarter of 2022, the highest quarterly revenue in the history of FirsTech, up from $4.9 million for the first quarter of 2021, representing 11.4% year-over-year growth

●Noninterest income, excluding security gains, accounted for 34.2% of total revenue in the first quarter of 2022, compared to 31.5% in the first quarter of 2021, supported by continued growth in wealth management and payment technology solutions

●For additional information, please refer to the 1Q22 Quarterly Earnings Supplement

First Quarter Financial Results

Net income for First Busey Corporation (“First Busey” or the “Company”) for the first quarter of 2022 was $28.4 million, or $0.51 per diluted common share, compared to $29.9 million, or $0.53 per diluted common share, for the fourth quarter of 2021, and $37.8 million, or $0.69 per diluted common share, for the first quarter of 2021. Adjusted net income^1^ for the first quarter of 2022 was $29.1 million, or $0.52 per diluted common share, compared to $34.3 million, or $0.61 per diluted common share, for the fourth quarter of 2021, and $38.1 million, or $0.69 per diluted common share, for the first quarter of 2021. For the first quarter of 2022, annualized return on average assets and annualized return on average tangible common equity^1^ were 0.91% and 12.72%, respectively. Based on adjusted net income^1^, annualized return on average assets was 0.93% and annualized return on average tangible common equity^1^ was 13.02% for the first quarter of 2022.

Pre-provision net revenue^1^ for the first quarter of 2022 was $36.1 million, compared to $34.0 million for the fourth quarter of 2021 and $40.2 million for the first quarter of 2021. Adjusted pre-provision net revenue^1^ for the first quarter of 2022 was $39.4 million, compared to $41.1 million for the fourth quarter of 2021 and $42.8 million for the first quarter of 2021. Pre-provision net revenue to average assets^1^ for the first quarter of 2022 was 1.16%, compared to 1.04% for the fourth quarter of 2021, and 1.54% for the first quarter of 2021. Adjusted pre-provision net revenue to average assets^1^ for the first quarter of 2022 was 1.26%, compared to 1.27% for the fourth quarter of 2021 and 1.64% for the first quarter of 2021.

The Company experienced its fourth consecutive quarter of strong core loan^1^ growth, principally in commercial lending segments. Core loan^1^ growth of $127.1 million in the first quarter of 2022 follows $141.6 million in the fourth quarter of 2021, $177.1 million in the third quarter of 2021, and $142.0 million in the second quarter of 2021. Over the last four quarters, the Company has generated $587.8 million in core loan^1^ growth, equating to an annualized growth rate of 9.4%. The Company’s first quarter has historically been a seasonally light quarter for growth.

The Company’s first quarter 2022 results include a provision release of $0.3 million for credit losses and a $1.1 million provision expense for unfunded commitments. The first quarter provision expense for unfunded commitments primarily related to increases in unused commitment balances. The total allowance for credit losses was $88.2 million at March 31, 2022, representing 1.21% of total portfolio loans outstanding and 1.22% of core loans^1^. The Company recorded net recoveries of $0.6 million in the first quarter of 2022.

^1^ See “Non-GAAP Financial Information” for reconciliation.

^2^ Revenue from the Company’s subsidiary, FirsTech, Inc. (FirsTech), excluding consolidations and eliminations.

Our fee-based businesses continue to add revenue diversification. In the first quarter of 2022, wealth management fees were $15.8 million, compared to $13.8 million in the fourth quarter of 2021 and $12.6 million in the first quarter of 2021, representing 25.4% year-over-year growth. Consolidated revenue from payment technology solutions from the Company’s subsidiary FirsTech was $5.1 million in the first quarter of 2022, compared to $4.6 million in both the fourth quarter of 2021 and the first quarter of 2021, representing 9.9% growth. Fees for customer services were $8.9 million in the first quarter of 2022, compared to $9.7 million in the fourth quarter of 2021 and $8.0 million in the first quarter of 2021, representing 10.8% year-over-year growth.

The Company views certain non-operating items, including acquisition-related and other restructuring charges, as adjustments to net income reported under U.S. generally accepted accounting principles (GAAP). Non-operating pretax adjustments for the first quarter of 2022 included $0.8 million of expenses related to the acquisition of Cummins-American Corp. (CAC), the holding company for Glenview State Bank (GSB). The Company believes that non-GAAP measures—including pre-provision net revenue, adjusted pre-provision net revenue, pre-provision net revenue to average assets, adjusted pre-provision net revenue to average assets, adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, return on average tangible common equity, adjusted return on average tangible common equity, adjusted net interest income, adjusted net interest margin, efficiency ratio, adjusted efficiency ratio, tangible book value per common share, tangible common equity, tangible common equity to tangible assets, core loans, core loans to portfolio loans, core deposits, core deposits to total deposits, and core loans to core deposits—facilitate the assessment of its financial results and peer comparability. A reconciliation of these non-GAAP measures is included in tabular form at the end of this release.

Community Banking

First Busey’s goal of being a strong community bank begins with outstanding associates. The Company is humbled to be named among the 2021 Best Banks to Work For by American Banker, the 2021 Best Places to Work in Money Management by Pensions and Investments, the 2022 Best Places to Work in Illinois by Daily Herald Business Ledger and the 2021 Best Companies to Work For in Florida by Florida Trend magazine.

As we continue growing forward, we are grateful for the opportunities to consistently earn the business of our customers, based on the contributions of our talented associates and the loyal support of our shareholders.

/s/ Van A. Dukeman

Chairman, President & Chief Executive Officer

First Busey Corporation


SELECTED FINANCIAL HIGHLIGHTS (unaudited)
(dollars in thousands, except per share amounts)

		As of and for the
		Three Months Ended
****		March 31,			December 31,			September 30,			June 30,			March 31,
	****	2022		****	2021		****	2021		****	2021		****	2021		****
EARNINGS & PER SHARE AMOUNTS
Net income		$	28,439		$	29,926		$	25,941		$	29,766		$	37,816
Diluted earnings per share			0.51			0.53			0.46			0.53			0.69
Cash dividends paid per share			0.23			0.23			0.23			0.23			0.23
Pre-provision net revenue^1, 2^			36,066			33,954			30,470			34,030			40,198
Revenue^^^3^			106,442			105,123			103,957			96,655			94,697

Net income by operating segments:
Banking			26,450			27,955			25,124			29,237			35,528
FirsTech			550			313			384			401			429
Wealth Management			5,840			4,285			4,718			4,885			4,682

AVERAGE BALANCES
Cash and cash equivalents		$	687,455		$	857,694		$	1,009,750		$	647,465		$	536,457
Investment securities			3,970,356			4,087,813			3,721,740			3,031,250			2,561,680
Loans held for sale			11,930			18,073			15,589			22,393			31,373
Portfolio loans			7,160,837			7,113,963			7,133,108			6,889,551			6,736,664
Interest-earning assets			11,703,947			11,947,653			11,730,637			10,448,417			9,752,294
Total assets			12,660,939			12,895,049			12,697,795			11,398,655			10,594,245

Noninterest bearing deposits			3,589,952			3,531,345			3,365,823			2,970,890			2,688,845
Interest-bearing deposits			7,027,486			7,276,237			7,253,242			6,432,336			6,033,613
Total deposits			10,617,438			10,807,582			10,619,065			9,403,226			8,722,458

Securities sold under agreements to repurchase and federal funds purchased			271,095			262,004			221,813			204,417			184,694
Interest-bearing liabilities			7,654,661			7,898,627			7,842,805			6,966,046			6,521,195
Total liabilities			11,379,404			11,566,357			11,346,379			10,055,884			9,318,551
Stockholders' equity - common			1,281,535			1,328,692			1,351,416			1,342,771			1,275,694
Average tangible common equity^^^2^			906,724			950,867			970,531			974,062			913,001

PERFORMANCE RATIOS
Pre-provision net revenue to average assets^1, 2^			1.16	%		1.04	%		0.95	%		1.20	%		1.54	%
Return on average assets			0.91	%		0.92	%		0.81	%		1.05	%		1.45	%
Return on average common equity			9.00	%		8.94	%		7.62	%		8.89	%		12.02	%
Return on average tangible common equity^^^2^			12.72	%		12.49	%		10.60	%		12.26	%		16.80	%
Net interest margin^^^2,^^^^4^			2.45	%		2.36	%		2.41	%		2.50	%		2.72	%
Efficiency ratio^^^2^			62.97	%		64.42	%		67.27	%		61.68	%		54.67	%
Noninterest revenue as a % of total revenues^^^3^			34.18	%		32.93	%		31.94	%		33.22	%		31.47	%

NON-GAAP FINANCIAL INFORMATION
Adjusted pre-provision net revenue^1, 2^		$	39,354		$	41,144		$	39,409		$	37,486		$	42,753
Adjusted net income^2^			29,104			34,277			32,845			31,921			38,065
Adjusted diluted earnings per share^2^			0.52			0.61			0.58			0.57			0.69
Adjusted pre-provision net revenue to average assets^2^			1.26	%		1.27	%		1.23	%		1.32	%		1.64	%
Adjusted return on average assets^2^			0.93	%		1.05	%		1.03	%		1.12	%		1.46	%
Adjusted return on average tangible common equity^2^			13.02	%		14.30	%		13.43	%		13.14	%		16.91	%
Adjusted net interest margin^2, 4^			2.41	%		2.31	%		2.35	%		2.43	%		2.63	%
Adjusted efficiency ratio^2^			62.18	%		59.09	%		58.97	%		58.89	%		54.33	%

^1^^^Net interest income plus noninterest income, excluding security gains and losses, less noninterest expense.
^2^See “Non-GAAP Financial Information” for reconciliation.
^3^Revenue consists of net interest income plus noninterest income, excluding security gains and losses.
^4^On a tax-equivalent basis, assuming a federal income tax rate of 21%.


CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(dollars in thousands, except per share amounts)

		March 31,			December 31,			September 30,			June 30,			March 31,
	****	2022		****	2021		****	2021		****	2021		****	2021
ASSETS
Cash and cash equivalents		$	479,228		$	836,095		$	883,845		$	920,810		$	404,802
Investment securities			3,941,656			3,994,822			4,010,256			3,478,467			2,804,101

Loans held for sale			6,765			23,875			20,225			17,834			38,272

Commercial loans			5,486,817			5,449,689			5,431,342			5,475,461			5,402,970
Retail real estate and retail other loans			1,786,056			1,739,309			1,719,293			1,710,189			1,376,330
Portfolio loans			7,272,873			7,188,998			7,150,635			7,185,650			6,779,300

Allowance for credit losses			(88,213)			(87,887)			(92,802)			(95,410)			(93,943)
Premises and equipment			133,658			136,147			142,031			145,437			132,669
Goodwill and other intangibles			372,913			375,924			378,891			381,795			361,120
Right of use asset			9,014			10,533			11,068			8,228			7,333
Other assets			439,615			381,182			395,181			372,638			325,909
Total assets		$	12,567,509		$	12,859,689		$	12,899,330		$	12,415,449		$	10,759,563

LIABILITIES & STOCKHOLDERS' EQUITY
Noninterest bearing deposits		$	3,568,651		$	3,670,267		$	3,453,906		$	3,186,650		$	2,859,492
Interest checking, savings, and money market deposits			6,132,355			6,162,661			6,337,026			6,034,871			4,991,887
Time deposits			890,830			935,649			1,026,935			1,115,596			1,022,468
Total deposits		$	10,591,836		$	10,768,577		$	10,817,867		$	10,337,117		$	8,873,847

Securities sold under agreements to repurchase		$	255,668		$	270,139		$	241,242		$	207,266		$	210,132
Short-term borrowings			17,683			17,678			17,673			30,168			4,663
Long-term debt			265,769			268,773			271,780			274,788			226,797
Junior subordinated debt owed to unconsolidated trusts			71,678			71,635			71,593			71,551			71,509
Lease liability			9,067			10,591			11,120			8,280			7,380
Other liabilities			137,783			133,184			134,979			140,588			99,413
Total liabilities		$	11,349,484		$	11,540,577		$	11,566,254		$	11,069,758		$	9,493,741
Total stockholders' equity		$	1,218,025		$	1,319,112		$	1,333,076		$	1,345,691		$	1,265,822
Total liabilities & stockholders' equity		$	12,567,509		$	12,859,689		$	12,899,330		$	12,415,449		$	10,759,563

SHARE AND PER SHARE AMOUNTS
Book value per common share		$	22.03		$	23.80		$	23.88		$	23.89		$	23.29
Tangible book value per common share^^^1^		$	15.29		$	17.01		$	17.09		$	17.11		$	16.65
Ending number of common shares outstanding			55,278,785			55,434,910			55,826,984			56,330,616			54,345,379

^1^^^See "Non-GAAP Financial Information" for reconciliation.


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(dollars in thousands, except per share amounts)

		Three Months Ended
		March 31,			December 31,			March 31,
	****	2022		****	2021		****	2021
INTEREST INCOME
Interest and fees on loans held for sale and portfolio		$	60,882		$	62,965		$	62,565
Interest on investment securities			14,932			13,658			9,616
Other interest income			277			294			150
Total interest income		$	76,091		$	76,917		$	72,331

INTEREST EXPENSE
Interest on deposits		$	2,124		$	2,497		$	3,732
Interest on securities sold under agreements to repurchase and federal funds purchased			59			50			57
Interest on short-term borrowings			89			84			19
Interest on long-term debt			3,109			3,123			2,905
Junior subordinated debt owed to unconsolidated trusts			654			655			725
Total interest expense		$	6,035		$	6,409		$	7,438

Net interest income		$	70,056		$	70,508		$	64,893
Provision for credit losses			(253)			(4,736)			(6,796)
Net interest income after provision for credit losses		$	70,309		$	75,244		$	71,689

NONINTEREST INCOME
Wealth management fees		$	15,779		$	13,751		$	12,584
Fees for customer services			8,907			9,668			8,037
Payment technology solutions			5,077			4,576			4,621
Mortgage revenue			975			1,086			2,666
Income on bank owned life insurance			884			1,727			964
Net security gains (losses)			(614)			474			1,641
Other			4,764			3,807			932
Total noninterest income		$	35,772		$	35,089		$	31,445

NONINTEREST EXPENSE
Salaries, wages, and employee benefits		$	39,354		$	38,090		$	30,384
Data processing expense			4,978			4,981			4,280
Net occupancy expense			5,067			4,740			4,563
Furniture and equipment expense			2,030			2,001			2,026
Professional fees			1,507			1,932			1,945
Amortization of intangible assets			3,011			3,074			2,401
Interchange expense			1,545			1,432			1,484
Other operating expenses			12,884			14,919			7,416
Total noninterest expense		$	70,376		$	71,169		$	54,499

Income before income taxes		$	35,705		$	39,164		$	48,635
Income taxes			7,266			9,238			10,819
Net income		$	28,439		$	29,926		$	37,816

SHARE AND PER SHARE AMOUNTS
Basic earnings per common share		$	0.51		$	0.54		$	0.69
Fully-diluted earnings per common share		$	0.51		$	0.53		$	0.69
Average common shares outstanding			55,427,696			55,705,169			54,471,860
Diluted average common shares outstanding			56,194,946			56,413,026			55,035,806

Balance Sheet Growth

Our balance sheet remains a source of strength. Total assets were $12.57 billion at March 31, 2022, compared to $12.86 billion at December 31, 2021, and $10.76 billion at March 31, 2021. At March 31, 2022, portfolio loans were $7.27 billion, compared to $7.19 billion as of December 31, 2021, and $6.78 billion as of March 31, 2021. Amortized costs of Paycheck Protection Program (PPP) loans of $31.8 million, $75.0 million, and $522.1 million are included in the March 31, 2022, December 31, 2021, and March 31, 2021, portfolio loan balances, respectively. During the first quarter of 2022, Busey Bank experienced another strong quarter of core loan^1^ growth of $127.1 million, consisting of growth in commercial balances^2^ of $80.3 million and growth in retail real estate and retail other balances of $46.8 million. Growth was principally driven by our Northern Illinois, Central Illinois, and Florida regions. Historically, the Company has experienced slower loan growth during the first quarter as compared to other quarters of the year.

Average portfolio loans were $7.16 billion for the first quarter of 2022, compared to $7.11 billion for the fourth quarter of 2021 and $6.74 billion for the first quarter of 2021. The average balance of PPP loans for the first quarter of 2022 was $51.5 million, compared to $123.5 million for the fourth quarter of 2021 and $482.5 million for the first quarter of 2021. Average interest-earning assets for the first quarter of 2022 were $11.70 billion, compared to $11.95 billion for the fourth quarter of 2021, and $9.75 billion for the first quarter of 2021.

Total deposits were $10.59 billion at March 31, 2022, compared to $10.77 billion at December 31, 2021, and $8.87 billion at March 31, 2021. Fluctuations in deposit balances can be attributed to the retention of PPP loan funding in customer deposit accounts, the impacts of economic stimulus, other core deposit^1^ growth, and the seasonality of public funds. The Company remains funded substantially through core deposits^1^ with significant market share in its primary markets. Core deposits^1^ accounted for 98.7% of total deposits as of March 31, 2022. Cost of deposits declined to 0.08% in the first quarter of 2022, a one basis point reduction compared to December 31, 2021. Excluding time deposits, the Company’s cost of deposits was 0.04% in the first quarter of 2022.

During the first quarter of 2022 a portion of the investment portfolio comprised of commercial and residential mortgage-backed securities were transferred from available for sale (AFS) to held to maturity (HTM). At March 31, 2022, the amortized cost of the securities in HTM were $976.1 million. As a result of the transfer the overall duration of the AFS portfolio at March 31, 2022, was reduced by 0.4 years.

Net Interest Margin^1^ and Net Interest Income

Net interest margin^1^ for the first quarter of 2022 was 2.45%, compared to 2.36% for the fourth quarter of 2021 and 2.72% for the first quarter of 2021. Excluding purchase accretion, adjusted net interest margin^1^ was 2.41% for the first quarter of 2022, compared to 2.31% in the fourth quarter of 2021 and 2.63% in the first quarter of 2021. Net interest income was $70.1 million in the first quarter of 2022, compared to $70.5 million in the fourth quarter of 2021 and $64.9 million in the first quarter of 2021. Tax equivalent net interest income^1^ excluding PPP net fee contribution was $69.3 million in the first quarter of 2022, compared to $67.8 million in the fourth quarter of 2021, and $60.7 in the first quarter of 2021.

The Federal Open Market Committee (FOMC) raised rates during the first quarter of 2022, for the first time in three years, which is expected to have a positive impact on net interest margin^1^, as assets, in particular commercial loans, reprice more quickly and to a greater extent than liabilities. Given the timing of the FOMC meeting in March, the benefit of the associated movement in rates to our net interest margin will be largely realized in subsequent quarters. In general, net interest margins^1^ have been impacted over the last two years by PPP loans, significant growth in the Company’s liquidity position, and the issuance of debt. Factors contributing to the nine basis point increase in net interest margin during the first quarter of 2022 include:

●	Loan growth and higher new volume and repricing rates which contributed +6 basis points
●	Increases in the securities portfolio yield which contributed +6 basis points
---	---
●	Net interest income contributions from cash flow hedges which contributed +3 basis points
---	---
●	Funding cost improvements which contributed +1 basis point
---	---
●	Reduced volume of PPP loan forgiveness which contributed -6 basis points
---	---
●	Reduced recognition of purchase accounting accretion which contributed -1 basis point
---	---

^1^ See “Non-GAAP Financial Information” for reconciliation.

^2^ Commercial balances include commercial, commercial real estate, and real estate construction loans. 6

Asset Quality

Credit quality continues to be exceptionally strong. Loans 30-89 days past due declined to $3.9 million as of March 31, 2022, compared to $6.3 million as of December 31, 2021, and $9.9 million as of March 31, 2021. Non-performing loans totaled $12.7 million as of March 31, 2022, compared to $16.9 million as of December 31, 2021, and $22.9 million as of March 31, 2021. Continued disciplined credit management resulted in non-performing loans as a percentage of total loans of 0.17% at March 31, 2022, compared to 0.23% as of December 31, 2021, and 0.34% as of March 31, 2021. Excluding the amortized cost of PPP loans, non-performing loans as a percentage of total loans was 0.18% at March 31, 2022, compared to 0.24% at December 31, 2021, and 0.37% at March 31, 2021. Non-performing assets were 0.13% of total assets at the end of the first quarter of 2022, compared to 0.17% at December 31, 2021 and 0.25% at March 31, 2021. Non-performing assets at March 31, 2022 included a $2.0 million OREO property, the sale of which closed subsequent to quarter-end, although the associated impairment was recognized in the first quarter of 2022.

Net recoveries totaled $0.6 million for the quarter ended March 31, 2022, compared to net charge-offs of $0.2 million and $0.3 million for the quarters ended December 31, 2021, and March 31, 2021, respectively. The allowance as a percentage of portfolio loans was 1.21% at March 31, 2022, compared to 1.22% at December 31, 2021, and 1.39% at March 31, 2021. Excluding the amortized cost of PPP loans, the allowance as a percentage of portfolio loans was 1.22% at March 31, 2022, compared to 1.24% at December 31, 2021, and 1.50% at March 31, 2021. The allowance as a percentage of non-performing loans was 695.41% at March 31, 2022, compared to 521.52% at December 31, 2021, and 411.04% at March 31, 2021.

The Company maintains a well-diversified loan portfolio and, as a matter of policy and practice, limits concentration exposure in any particular loan segment.


ASSET QUALITY (unaudited)
(dollars in thousands)

		As of and for the Three Months Ended
****		March 31,			December 31,			September 30,			June 30,			March 31,
	****	2022		****	2021		****	2021		****	2021		****	2021		****
ASSET QUALITY
Portfolio loans		$	7,272,873		$	7,188,998		$	7,150,635		$	7,185,650		$	6,779,300
Portfolio loans excluding amortized cost of PPP loans			7,241,104			7,114,040			6,972,404			6,795,255			6,257,196
Loans 30 – 89 days past due			3,916			6,261			6,446			3,888			9,929
Non-performing loans:
Non-accrual loans			12,488			15,946			25,369			27,725			21,706
Loans 90+ days past due and still accruing			197			906			491			590			1,149
Non-performing loans		$	12,685		$	16,852		$	25,860		$	28,315		$	22,855
Non-performing loans, segregated by geography:
Illinois / Indiana		$	6,467		$	10,450		$	17,824		$	21,398		$	15,457
Missouri			5,263			5,349			6,736			5,645			6,170
Florida			955			1,053			1,300			1,272			1,228
Other non-performing assets			3,606			4,416			3,184			3,137			4,292
Non-performing assets		$	16,291		$	21,268		$	29,044		$	31,452		$	27,147

Non-performing assets to total assets			0.13	%		0.17	%		0.23	%		0.25	%		0.25	%
Non-performing assets to portfolio loans and non-performing assets			0.22	%		0.30	%		0.41	%		0.44	%		0.40	%
Allowance for credit losses to portfolio loans			1.21	%		1.22	%		1.30	%		1.33	%		1.39	%
Allowance for credit losses to portfolio loans, excluding PPP			1.22	%		1.24	%		1.33	%		1.40	%		1.50	%
Allowance for credit losses as a percentage of non-performing loans			695.41	%		521.52	%		358.86	%		336.96	%		411.04	%
Net charge-offs (recoveries)		$	(579)		$	179		$	739		$	1,011		$	309
Provision			(253)			(4,736)			(1,869)			(1,700)			(6,796)

Noninterest Income

Noninterest income increased to $35.8 million for the first quarter of 2022, compared to $35.1 million for the fourth quarter of 2021 and $31.4 million for the first quarter of 2021. Revenues from wealth management fees and payment technology solutions activities represented 58.3% of the Company’s noninterest income for the quarter ended March 31, 2022, providing a balance to spread-based revenue from traditional banking activities. On a combined basis, revenue from these two critical operating areas increased by 21.2% compared to the first quarter of 2021.

Wealth management fees were $15.8 million for the first quarter of 2022, compared to $13.8 million for the fourth quarter of 2021 and $12.6 million for the first quarter of 2021, a 25.4% increase from the comparable period in 2021. Net income from the Wealth Management segment was $5.8 million for the first quarter of 2022, compared to $4.3 million for the fourth quarter of 2021, and $4.7 million in the first quarter of 2021, a 24.7% increase from the comparable period in 2021. First Busey’s Wealth Management division ended the first quarter of 2022 with $12.33 billion in assets under care, a decrease from $12.73 billion at the end of the fourth quarter of 2021 principally due to a reduction in market valuations, and a 15.3% increase from $10.69 billion at the end of the first quarter of 2021, comprised of organic and market related growth, as well as increases resulting from the acquisition of CAC.

Payment technology solutions revenue from FirsTech was $5.1 million for the first quarter of 2022, compared to $4.6 million for both the fourth quarter of 2021 and the first quarter of 2021. Excluding intracompany eliminations and consolidations, FirsTech generated revenue of $5.4 million during the first quarter of 2022, compared to $4.9 million during both the fourth quarter of 2021 and the first quarter of 2021. The FirsTech operating segment generated net income of $0.6 million in the first quarter of 2022, an increase from $0.3 million in the fourth quarter of 2021 and $0.4 million in the first quarter of 2021. The Company is currently making strategic investments in FirsTech to further enhance future growth including further upgrades to the product and engineering teams to build an application programming interface (API) first cloud-based platform to provide for fully integrated payment capabilities as well as the continued development of our Banking as a Service (BaaS) platform.

Fees for customer services were $8.9 million for the first quarter of 2022, compared to $9.7 million in the fourth quarter of 2021 and $8.0 million in the first quarter of 2021, a 10.8% increase from the comparable period in 2021.

Mortgage revenue was $1.0 million in the first quarter of 2022, a decrease from $1.1 million in the fourth quarter of 2021 and $2.7 million in the first quarter of 2021. Sold-loan mortgage volume declined in the first quarter of 2022 compared to the same quarter in 2021 due to a higher share of portfolio loan production in 2022.

Other noninterest income was $4.8 million in the first quarter of 2022, an increase from $3.8 million in the fourth quarter of 2021 and $0.9 million in the first quarter of 2021. Other noninterest income benefited from higher income recognized on venture capital investments and gains on disposal of fixed assets, partially offset by lower swap fees and SBA loan sale gains recorded during the first quarter of 2022.

Operating Efficiency

Noninterest expense was $70.4 million in the first quarter of 2022, compared to $71.2 million in the fourth quarter of 2021 and $54.5 million in the first quarter of 2021. Noninterest expense excluding non-operating adjustments^1^ was $69.5 million in the first quarter of 2022, compared to $65.5 million in the fourth quarter of 2021 and $54.2 million in the first quarter of 2021. As a result, the efficiency ratio^1^ was 62.97% for the quarter ended March 31, 2022, compared to 64.42% for the quarter ended December 31, 2021, and 54.67% for the quarter ended March 31, 2021. The adjusted efficiency ratio^1^ was 62.18%, 59.09%, and 54.33% for the quarters ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively. The Company remains focused on expense discipline, while making necessary investments to support the organic growth of our key business lines and related support and risk management functions.

Noteworthy components of noninterest expense are as follows:

●

Salaries, wages, and employee benefits were $39.4 million in the first quarter of 2022, an increase from $38.1 million in the fourth quarter of 2021, and $30.4 million in the first quarter of 2021. Total full-time equivalents numbered 1,465 at March 31, 2022, compared to 1,463 at December 31, 2021, and 1,332 at March 31, 2021. The Company recorded $0.6 million of non-operating salaries, wages, and employee benefit expenses in the first quarter of 2022, compared to $2.0 million in the fourth quarter of 2021. There was no non-operating salaries, wages, and employee benefit expense recorded in the first quarter of 2021.

●

Data processing expense was $5.0 million in the first quarter of 2022, steady with the fourth quarter of 2021, and an increase from $4.3 million in the first quarter of 2021. The Company recorded $0.2 million of non-operating data processing expenses in the first quarter of 2022, compared to $0.1 million in the fourth quarter of 2021 and an immaterial amount in the first quarter of 2021. Non-operating data processing costs related to the integration of GSB.

^1^ A Non-GAAP financial measure. See “Non-GAAP Financial Information” for reconciliation. 8

●	Professional fees were $1.5 million in the first quarter of 2022, a decrease from $1.9 million in both the fourth quarter of 2021 and the first quarter of 2021. The Company recorded an immaterial amount of non-operating professional fees in the first quarter of 2022, compared to $0.2 million in the fourth quarter of 2021 and $0.3 million in the first quarter of 2021.

●	Amortization expense was $3.0 million in the first quarter of 2022, a decrease from $3.1 million in the fourth quarter of 2021 and an increase from $2.4 million in the first quarter of 2021. The year-over-year increase is attributable to the acquisition of GSB, completed in the second quarter of 2021.

●

Other operating expenses were $12.9 million for the first quarter of 2022, a decrease from $14.9 million in the fourth quarter of 2021, and an increase from $7.4 million in the first quarter of 2021. We realized a $0.6 million impairment on OREO during the first quarter of 2022. The Company recorded an immaterial amount of non-operating expenses within the other operating expense line in the first quarter of 2022, compared to $3.3 million in the fourth quarter of 2021 and an immaterial amount in the first quarter of 2021. Other operating expense fluctuations primarily relate to the provision for unfunded commitments which was $1.1 million for the first quarter of 2022, amortization of New Markets Tax Credits which was $1.3 million for the first quarter of 2022, regulatory costs, and business development expenses.

Capital Strength

The Company's strong capital levels, coupled with its earnings, have allowed First Busey to provide a steady return to its stockholders through dividends. The Company will pay a cash dividend on April 29, 2022, of $0.23 per common share to stockholders of record as of April 22, 2022. The Company has consistently paid dividends to its common stockholders since the bank holding company was organized in 1980.

As of March 31, 2022, the Company continued to exceed the capital adequacy requirements necessary to be considered “well-capitalized” under applicable regulatory guidelines. The Company’s Common Equity Tier 1 ratio is estimated to be 11.89% at March 31, 2022^1^, compared to 11.85% at December 31, 2021, and 12.83% at March 31, 2021. The Company’s tangible common equity^2^ was $855.6 million at March 31, 2022, compared to $959.4 million at December 31, 2021, and $918.6 million at March 31, 2021. Tangible common equity^2^ represented 7.01% of tangible assets at March 31, 2022, compared to 7.68% at December 31, 2021, and 8.82% at March 31, 2021. The reduction in tangible common equity for the first quarter of 2022 was primarily driven by movement in interest rates and the resulting impact on accumulated other comprehensive income (loss).

During the first quarter of 2022, the Company purchased 188,614 shares of its common stock at a weighted average price of $27.68 per share for a total of $5.2 million under the Company’s stock repurchase plan. As of March 31, 2022, the Company had 347,210 shares remaining on its stock repurchase plan available for repurchase.

1Q22 Quarterly Earnings Supplement

For additional information on the Company’s financial condition and operating results, please refer to the 1Q22 Quarterly Earnings Supplement presentation furnished via Form 8-K on April 26, 2022, in connection with this earnings release.

^1^ The Common Equity Tier 1 Capital ratio is not yet finalized for the first quarter of 2022, and is subject to change.

^2^ A Non-GAAP financial measure. See “Non-GAAP Financial Information” for reconciliation. 9

Corporate Profile

As of March 31, 2022, First Busey Corporation (Nasdaq: BUSE) was a $12.57 billion financial holding company headquartered in Champaign, Illinois.

Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation, had total assets of $12.54 billion as of March 31, 2022, and is headquartered in Champaign, Illinois. Busey Bank currently has 46 banking centers serving Illinois, eight banking centers serving Missouri, three banking centers serving southwest Florida, and one banking center in Indianapolis, Indiana.

Busey Bank’s wholly-owned subsidiary, FirsTech, is a payments platform specializing in the evolving financial technology needs of small and medium-sized businesses, highly regulated enterprise industries, and financial institutions. With associates across the United States, FirsTech provides comprehensive and innovative payment technology solutions that enable businesses to connect with their customers in a multitude of ways on a single, highly configurable, secure platform. Fast, secure payment modes include, but are not limited to, text-based payments; electronic payments concentration delivered to Automated Clearing House networks; internet voice recognition (IVR); credit cards; in-store payments for customers at retail pay agents; direct debit services; and lockbox remittance processing for customers to make payments by mail. Once these payments are processed through integration with our customers’ financial systems, FirsTech provides its customers with reconciliation and settlement services to ensure payment confirmation. Additionally, FirsTech provides consulting and technology services through its Professional Services Division, assisting clients in identifying and implementing payment technologies to meet their evolving needs. FirsTech launched its innovative BaaS platform at the beginning of 2022, helping community banks and their commercial customers build modernized payment solutions, which include online payment technologies and automated file transfers. More information about FirsTech can be found at firstechpayments.com.

Through the Company’s Wealth Management division, the Company provides asset management, investment, and fiduciary services to individuals, businesses, and foundations. As of March 31, 2022, assets under care were $12.33 billion.

Busey Bank has been named among America’s Best Banks for 2022, a first-ever recognition by Forbes magazine. Ranked 52nd overall, Busey was the top-ranked bank headquartered in Illinois; only three other Illinois-based banks were included on the list. We are honored to be consistently recognized nationally and locally for our engaged culture of integrity and commitment to community development.

For more information about us, visit busey.com.

Category: Financial

Source: First Busey Corporation

Contacts:

Jeffrey D. Jones, Chief Financial Officer

217-365-4130

Ted Rosinus, EVP Investor Relations & Corporate Development

847-832-0392

Non-GAAP Financial Information

This earnings release 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 in making business decisions, as well as for comparison to the Company’s peers. The Company believes the adjusted measures are useful for investors and management to understand the effects of certain non-recurring noninterest items and provide additional perspective on the Company’s performance over time.

A reconciliation to what management believes to be the most directly comparable GAAP financial measures—specifically, net interest income, total noninterest income, net security gains and losses, and total noninterest expense in the case of 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; net income in the case of adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, return on average tangible common equity, and adjusted return on average tangible common equity; net interest income in the case of adjusted net interest income and adjusted net interest margin; net interest income, total noninterest income, and total noninterest expense in the case of adjusted noninterest expense, core adjusted expense, efficiency ratio, adjusted efficiency ratio, and adjusted core efficiency ratio; total stockholders’ equity in the case of tangible book value per common share; total assets and total stockholders’ equity in the case of tangible common equity and tangible common equity to tangible assets; portfolio loans in the case of core loans and core loans to portfolio loans; total deposits in the case of core deposits and core deposits to total deposits; and portfolio loans and total deposits in the case of core loans to core deposits—appears below.

These non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for operating results reported in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Tax effected numbers included in these non-GAAP disclosures are based on estimated statutory rates or effective rates as appropriate.

Reconciliation Of Non-GAAP Financial Measures (unaudited)


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)

			Three Months Ended
			March 31,			December 31,			March 31,
		****	2022		****	2021		****	2021		****
PRE-PROVISION NET REVENUE ****
Net interest income			$	70,056		$	70,508		$	64,893
Total noninterest income				35,772			35,089			31,445
Net security (gains) losses				614			(474)			(1,641)
Total noninterest expense				(70,376)			(71,169)			(54,499)
Pre-provision net revenue				36,066			33,954			40,198
Non-GAAP adjustments:
Acquisition and other restructuring expenses				835			5,641			320
Provision for unfunded commitments				1,112			294			406
Amortization of New Markets Tax Credit				1,341			1,255			1,829
Adjusted pre-provision net revenue			$	39,354		$	41,144		$	42,753

Pre-provision net revenue, annualized	[a]		$	146,268		$	134,709		$	163,025
Adjusted pre-provision net revenue, annualized	[b]		$	159,602		$	163,234		$	173,387
Average total assets	[c]		$	12,660,939		$	12,895,049		$	10,594,245

Reported: Pre-provision net revenue to average assets^1^	[a÷c]			1.16	%		1.04	%		1.54	%
Adjusted: Pre-provision net revenue to average assets ^1^	[b÷c]			1.26	%		1.27	%		1.64	%

^1^^^Annualized measure.

Reconciliation Of Non-GAAP Financial Measures (unaudited)


Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Return on Average Assets, Return on Average Tangible Common Equity, and Adjusted Return on Average Tangible Common Equity
(dollars in thousands, except per share amounts)

			Three Months Ended
			March 31,			December 31,			March 31,
		****	2022		****	2021		****	2021		****
NET INCOME ADJUSTED FOR NON-OPERATING ITEMS
Net income	[a]		$	28,439		$	29,926		$	37,816
Non-GAAP adjustments:
Acquisition expenses:
Salaries, wages, and employee benefits				587			1,760			—
Data processing				214			143			7
Professional fees, occupancy, and other				34			290			313
Other restructuring expenses:
Salaries, wages, and employee benefits				—			215			—
Lease or fixed asset impairment				—			3,227			—
Professional fees, occupancy, and other				—			6			—
Related tax benefit				(170)			(1,290)			(71)
Adjusted net income	[b]		$	29,104		$	34,277		$	38,065

DILUTED EARNINGS PER SHARE
Dilutive average common shares outstanding	[c]			56,194,946			56,413,026			55,035,806

Reported: Diluted earnings per share	[a÷c]		$	0.51		$	0.53		$	0.69
Adjusted: Diluted earnings per share	[b÷c]		$	0.52		$	0.61		$	0.69

RETURN ON AVERAGE ASSETS
Net income, annualized	[d]		$	115,336		$	118,728		$	153,365
Adjusted net income, annualized	[e]		$	118,033		$	135,990		$	154,375
Average total assets	[f]		$	12,660,939		$	12,895,049		$	10,594,245

Reported: Return on average assets ^1^	[d÷f]			0.91	%		0.92	%		1.45	%
Adjusted: Return on average assets ^1^	[e÷f]			0.93	%		1.05	%		1.46	%

RETURN ON AVERAGE TANGIBLE COMMON EQUITY
Average common equity			$	1,281,535		$	1,328,692		$	1,275,694
Average goodwill and other intangible assets, net				(374,811)			(377,825)			(362,693)
Average tangible common equity	[g]		$	906,724		$	950,867		$	913,001

Reported: Return on average tangible common equity ^1^	[d÷g]			12.72	%		12.49	%		16.80	%
Adjusted: Return on average tangible common equity ^1^	[e÷g]			13.02	%		14.30	%		16.91	%

^1^^^Annualized measure.

Reconciliation Of Non-GAAP Financial Measures (unaudited)


Adjusted Net Interest Margin
(dollars in thousands)

			Three Months Ended
			March 31,			December 31,			March 31,
		****	2022		****	2021		****	2021		****
Net interest income			$	70,056		$	70,508		$	64,893
Non-GAAP adjustments:
Tax-equivalent adjustment				546			577			601
Tax equivalent net interest income				70,602			71,085			65,494
Purchase accounting accretion related to business combinations				(1,159)			(1,469)			(2,157)
Adjusted net interest income			$	69,443		$	69,616		$	63,337

Tax equivalent net interest income, annualized	[a]		$	286,330		$	282,022		$	265,615
Adjusted net interest income, annualized	[b]		$	281,630		$	276,194		$	256,867
Average interest-earning assets	[c]		$	11,703,947		$	11,947,653		$	9,752,294

Reported: Net interest margin ^1^	[a÷c]			2.45	%		2.36	%		2.72	%
Adjusted: Net interest margin ^1^	[b÷c]			2.41	%		2.31	%		2.63	%

^1^^^Annualized measure.


Adjusted Noninterest Expense, Core Adjusted Expense, Efficiency Ratio, Adjusted Efficiency Ratio, and Adjusted Core Efficiency Ratio
(dollars in thousands)

			Three Months Ended
			March 31,			December 31,			March 31,
		****	2022		****	2021		****	2021		****
Net interest income			$	70,056		$	70,508		$	64,893
Non-GAAP adjustments:
Tax-equivalent adjustment				546			577			601
Tax equivalent net interest income				70,602			71,085			65,494

Total noninterest income				35,772			35,089			31,445
Non-GAAP adjustments:
Net security (gains) losses				614			(474)			(1,641)
Noninterest income excluding net security gains and losses				36,386			34,615			29,804

Tax equivalent net interest income plus noninterest income excluding net security gains and losses	[a]		$	106,988		$	105,700		$	95,298

Total noninterest expense			$	70,376		$	71,169		$	54,499
Non-GAAP adjustments:
Amortization of intangible assets	[b]			(3,011)			(3,074)			(2,401)
Non-interest expense excluding amortization of intangible assets	[c]			67,365			68,095			52,098
Non-operating adjustments:
Salaries, wages, and employee benefits				(587)			(1,975)			—
Data processing				(214)			(143)			(7)
Impairment, professional fees, occupancy, and other				(34)			(3,523)			(313)
Adjusted noninterest expense	[d]			66,530			62,454		$	51,778
Provision for unfunded commitments				(1,112)			(294)			(406)
Amortization of New Markets Tax Credit				(1,341)			(1,255)			(1,829)
Core adjusted expense	[e]		$	64,077		$	60,905		$	49,543

Noninterest expense, excluding non-operating adjustments	[d-b]		$	69,541		$	65,528		$	54,179

Reported: Efficiency ratio	[c÷a]			62.97	%		64.42	%		54.67	%
Adjusted: Efficiency ratio	[d÷a]			62.18	%		59.09	%		54.33	%
Adjusted: Core efficiency ratio	[e÷a]			59.89	%		57.62	%		51.99	%

Reconciliation Of Non-GAAP Financial Measures (unaudited)


Tangible Book Value Per Common Share
(dollars in thousands, except per share amounts)

			As of
			March 31,			December 31,			March 31,
		****	2022		****	2021		****	2021		****
Total stockholders’ equity			$	1,218,025		$	1,319,112		$	1,265,822
Goodwill and other intangible assets, net				(372,913)			(375,924)			(361,120)
Tangible book value	[a]		$	845,112		$	943,188		$	904,702

Ending number of common shares outstanding	[b]			55,278,785			55,434,910			54,345,379

Tangible book value per common share	[a÷b]		$	15.29		$	17.01		$	16.65


Tangible Common Equity and Tangible Common Equity to Tangible Assets
(dollars in thousands)

			As of
			March 31,			December 31,			March 31,
		****	2022		****	2021		****	2021		****
Total assets			$	12,567,509		$	12,859,689		$	10,759,563
Non-GAAP adjustments:
Goodwill and other intangible assets, net				(372,913)			(375,924)			(361,120)
Tax effect of other intangible assets^^^1^				10,456			16,254			13,883
Tangible assets	[a]		$	12,205,052		$	12,500,019		$	10,412,326

Total stockholders’ equity			$	1,218,025		$	1,319,112		$	1,265,822
Non-GAAP adjustments:
Goodwill and other intangible assets, net				(372,913)			(375,924)			(361,120)
Tax effect of other intangible assets^^^1^				10,456			16,254			13,883
Tangible common equity	[b]		$	855,568		$	959,442		$	918,585

Tangible common equity to tangible assets ^2^	[b÷a]			7.01	%		7.68	%		8.82	%

^1^^^Net of estimated deferred tax liability.
^2^^^Tax-effected measure.


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,			March 31,
		****	2022		****	2021		****	2021		****
Portfolio loans	[a]		$	7,272,873		$	7,188,998		$	6,779,300
Non-GAAP adjustments:
PPP Loans amortized cost				(31,769)			(74,958)			(522,104)
Core loans	[b]		$	7,241,104		$	7,114,040		$	6,257,196

Total deposits	[c]		$	10,591,836		$	10,768,577		$	8,873,847
Non-GAAP adjustments:
Brokered transaction accounts				(2,002)			(2,248)			(2,699)
Time deposits of $250,000 or more				(139,245)			(137,449)			(155,401)
Core deposits	[d]		$	10,450,589		$	10,628,880		$	8,715,747

RATIOS
Core loans to portfolio loans	[b÷a]			99.56	%		98.96	%		92.30	%
Core deposits to total deposits	[d÷c]			98.67	%		98.70	%		98.22	%
Core loans to core deposits	[b÷d]			69.29	%		66.93	%		71.79	%

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 condition, results of operations, plans, objectives, future performance, and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations, and assumptions of the Company’s management, and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should,” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond the Company’s ability to control or predict, could cause actual results to differ materially from those in the Company’s forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national, and international economy (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics (including the Coronavirus Disease 2019 pandemic), or other adverse external events that could cause economic deterioration or instability in credit markets (including Russia’s invasion of Ukraine); (iii) changes in state and federal laws, regulations, and governmental policies concerning the Company’s general business; (iv) changes in accounting policies and practices; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of The London Inter-bank Offered Rate phase-out); (vi) increased competition in the financial services sector and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) the loss of key executives or associates; (ix) changes in consumer spending; (x) unexpected results of current and/or future acquisitions, which may include failure to realize the anticipated benefits of any acquisition and the possibility that transaction costs may be greater than anticipated; (xi) unexpected outcomes of existing or new litigation involving the Company; and (xii) the economic impact of exceptional weather occurrences such as tornadoes, hurricanes, floods, and blizzards. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect its financial results, is included in the Company’s filings with the Securities and Exchange Commission.

Exhibit 99.2

April 26, 2022<br>1Q22 QUARTERLY<br>EARNINGS<br>SUPPLEMENT
2<br>2<br>Ticker: BUSE<br>Special<br>Note<br>Concerning Forward<br>-<br>Looking<br>Statements<br>Statements made in this document, other than those concerning historical financial information, may be considered forward<br>-<br>looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial<br>condition, results of operations, plans, objectives, future performance, and business of the Company. Forward<br>-<br>looking<br>statements, which may be based upon beliefs, expectations, and assumptions of the Company’s management, and on information<br>currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,”<br>“pl<br>an,”<br>“intend,” “estimate,” “may,” “will,” “would,” “could,” “should,” or other similar expressions. Additionally, all statements<br>in<br>this<br>document, including forward<br>-<br>looking statements, speak only as of the date they are made, and the Company undertakes no<br>obligation to update any statement in light of new information or future events. A number of factors, many of which are beyo<br>nd<br>the Company’s ability to control or predict, could cause actual results to differ materially from those in the Company’s forw<br>ard<br>-<br>looking statements. These factors include, among others, the following: (i) the strength of the local, state, national, and<br>international economy (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of<br>an<br>y<br>future terrorist threats or attacks, widespread disease or pandemics (including the Coronavirus Disease 2019 pandemic), or ot<br>her<br>adverse external events that could cause economic deterioration or instability in credit markets (including Russia’s invasion<br>of<br>Ukraine); (iii) changes in state and federal laws, regulations, and governmental policies concerning the Company’s general<br>business; (iv) changes in accounting policies and practices; (v) changes in interest rates and prepayment rates of the Compan<br>y’s<br>assets (including the impact of The London Inter<br>-<br>bank Offered Rate phase<br>-<br>out); (vi) increased competition in the financial<br>services sector and the inability to attract new customers; (vii) changes in technology and the ability to develop and mainta<br>in<br>secure and reliable electronic systems; (viii) the loss of key executives or associates; (ix) changes in consumer spending; (<br>x)<br>unexpected results of current and/or future acquisitions, which may include failure to realize the anticipated benefits of an<br>y<br>acquisition and the possibility that transaction costs may be greater than anticipated; (xi) unexpected outcomes of existing<br>or<br>new litigation involving the Company; and (xii) the economic impact of exceptional weather occurrences such as tornadoes,<br>hurricanes, floods, and blizzards. These risks and uncertainties should be considered in evaluating forward<br>-<br>looking statements<br>and undue reliance should not be placed on such statements. Additional information concerning the Company and its business,<br>including additional factors that could materially affect its financial results, is included in the Company’s filings with th<br>e S<br>ecurities<br>and Exchange Commission.
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3<br>3<br>Ticker: BUSE<br>Non<br>-<br>GAAP Financial Information<br>This document contains certain financial information determined by methods other than GAAP. Management uses these non<br>-<br>GAAP measures, together with the related GAAP measures, in analysis of the Company’s performance and in making business<br>decisions, as well as comparison to the Company’s peers. The Company believes the adjusted measures are useful for investors<br>and management to understand the effects of certain non<br>-<br>recurring noninterest items and provide additional perspective on the<br>Company’s performance over time.<br>A reconciliation to what management believes to be the most directly comparable GAAP financial measures<br>—<br>specifically, net<br>interest income, total noninterest income, net security gains and losses, and total noninterest expense in the case of pre<br>-<br>provision net revenue, adjusted pre<br>-<br>provision net revenue, pre<br>-<br>provision net revenue to average assets, and adjusted pre<br>-<br>provision net revenue to average assets; net income in the case of adjusted net income, adjusted diluted earnings per share,<br>adjusted return on average assets, return on average tangible common equity, and adjusted return on average tangible common<br>equity; net interest income in the case of adjusted net interest income and adjusted net interest margin; net interest income<br>,<br>total noninterest income, and total noninterest expense in the case of adjusted noninterest expense, core adjusted expense,<br>efficiency ratio, adjusted efficiency ratio, and adjusted core efficiency ratio; total stockholders’ equity in the case of ta<br>ngi<br>ble book<br>value per common share; total assets and total stockholders’ equity in the case of tangible common equity and tangible common<br>equity to tangible assets; portfolio loans in the case of core loans and core loans to portfolio loans; total deposits in the<br>ca<br>se of<br>core deposits and core deposits to total deposits; and portfolio loans and total deposits in the case of core loans to core d<br>epo<br>sits<br>—<br>appears below.<br>These non<br>-<br>GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a<br>substitute for operating results reported in accordance with GAAP, nor are they necessarily comparable to non<br>-<br>GAAP performance<br>measures that may be presented by other companies. Tax effected numbers included in these non<br>-<br>GAAP disclosures are based<br>on estimated statutory rates or effective rates as appropriate.
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4<br>4<br>Ticker: BUSE<br>Table of Contents<br>Overview of First Busey Corporation (BUSE)<br>5<br>Sizable Business Lines Provide for Innovative Solutions<br>6<br>Investment Highlights<br>7<br>Experienced Management Team<br>8<br>Strong Regional Operating Model<br>9<br>High Quality & Growing Loan Portfolio<br>10<br>Top Tier Core Deposit Franchise<br>11<br>Diversified and Significant Sources of Fee Income<br>12<br>Fully Integrated Wealth Management Platform<br>13<br>Growing<br>Wealth Management Business<br>14<br>Scalable Payment Technology Solutions Platform<br>15<br>FirsTech Growth and Expansion of Services<br>16<br>Net Interest Margin<br>17<br>Focused Control on Expenses<br>18<br>Continued Investment in Technology Enterprise<br>-<br>Wide<br>19<br>Fortress Balance Sheet<br>20<br>Robust Capital Foundation<br>21<br>Pristine Credit Quality<br>22<br>Reserve Supports Credit & Growth Profile<br>23<br>Balanced, Low<br>-<br>Risk, Short<br>-<br>Duration<br>Investment Portfolio<br>24<br>Quarterly Earnings Review<br>25<br>Earnings Performance<br>26<br>Environmental, Social, and Governance Responsibility<br>27<br>Appendix: Loan Portfolio Detail<br>, Use of Non<br>-<br>GAAP Financial Information<br>28
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5<br>5<br>Ticker: BUSE<br>Unwavering Focus on 4 Pillars:<br>ASSOCIATES, CUSTOMERS,<br>COMMUNITIES AND SHAREHOLDERS<br>Overview of First Busey Corporation (BUSE)<br>Company Overview<br>Financial Highlights<br>(1) Non<br>-<br>GAAP calculation, see Appendix (2) Market Data for BUSE updated to close on 4/25/22 (3) Based on FY 2022 consensus med<br>ian net income of covering analysts as of 4/25/22<br>BUSE Stock Price<br>(2)<br>Price Per Share<br>$23.75<br>Market Cap<br>$1.32B<br>Dividend Yield<br>3.87%<br>Price/TBV<br>1.55x<br>Price/NTM<br>(3)<br>10.8x<br>AMONG THE BEST<br>+<br>150+ year old financial institution<br>headquartered in CHAMPAIGN, IL<br>$ in millions<br>2020<br>2021<br>2022 YTD<br>Total Assets<br>$10,544<br>$12,860<br>$12,568<br>Total Loans (Exc. HFS)<br>6,814<br><br><br>7,189<br><br><br>7,273<br><br><br>Total Deposits<br>8,678<br><br><br>10,769<br><br><br>10,592<br><br><br>Total Equity<br>1,270<br><br><br>1,319<br><br><br>1,218<br><br><br>NPA/Assets<br>0.27%<br>0.17%<br>0.13%<br>NIM<br>3.03%<br>2.49%<br>2.45%<br>Adj. PPNR ROAA<br>(1)<br>1.75%<br>1.35%<br>1.26%<br>Adj. ROAA<br>(1)<br>1.06%<br>1.15%<br>0.93%<br>Adj. ROATCE<br>(1)<br>12.47%<br>14.40%<br>13.02%<br>$20<br>$22<br>$24<br>$26<br>$28<br>$30<br>Mar-21<br>Jun-21<br>Sep-21<br>Dec-21<br>Mar-22<br>Regional operating model serving 4 regions:<br>NORTHERN, CENTRAL, GATEWAY, FLORIDA<br>Commercial Banking<br>Payment Tech Solutions<br>Wealth Management
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6<br>6<br>Ticker: BUSE<br>(1) LTM total payments processed (2) Busey Bank segment, excluding Wealth Management & FirsTech; excludes intracompany elimi<br>nat<br>ions and consolidations (3) Wealth Management segment<br>(4) FirsTech segment; Non<br>-<br>GAAP calculation, excludes intracompany eliminations and consolidations (5) Consolidated; Non<br>-<br>GAAP ca<br>lculation, see Appendix<br>$12.6<br>Billion<br>$12.3<br>Billion<br>$10.3<br>Billion<br>Assets<br>Assets Under Care<br>Payments<br>Processed<br>(1)<br>Diversified financial holding company with comprehensive and<br>innovative financial solutions for individuals<br>and<br>businesses<br>Sizable Business Lines Provide for<br>Innovative Solutions<br>Full<br>suite of diversified financial products<br>for individuals and businesses<br>Wealth & asset management services for<br>individuals and businesses<br>Payment platform that enables the collection of<br>payments across a variety of modules<br>$352.9<br>Million<br>$56.3<br>Million<br>LTM Revenue<br>(3)<br>$20.3<br>Million<br>LTM Revenue<br>(4)<br>LTM Revenue<br>(2)<br>13.0%<br>MRQ<br>47.6%<br>MRQ<br>Adj. ROATCE<br>(5)<br>PT Margin<br>16.3%<br>YoY<br>Rev. Growth
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7<br>7<br>Ticker: BUSE<br>Investment Highlights<br>▪<br>58 branches across four states: Illinois<br>, Missouri, Indiana, and Florida<br>▪<br>Premier commercial bank, wealth management, and payment technology solutions for<br>individuals and businesses<br>▪<br>Attractive core deposit to total deposit ratio (98.7%)<br>(1)<br>and low cost of non<br>-<br>time deposits<br>(4 bps) in 1Q22<br>▪<br>Substantial investments in technology enterprise<br>-<br>wide and next generation leadership talent<br>Attractive Franchise that<br>Provides Innovative<br>Financial Solutions<br>(1) Non<br>-<br>GAAP calculation, see Appendix; Core deposits include non<br>-<br>brokered transaction accounts, money market deposit accounts,<br>and time deposits of $250,000 or less (2) Non<br>-<br>GAAP calculation, see Appendix (3) Non<br>-<br>GAAP;<br>FirsTech segment, excludes intracompany eliminations and consolidations (4) Revenue consists of net interest income plus non<br>int<br>erest income, excluding security gains and losses (5) Based on BUSE closing stock price on 4/25/22<br>Attractive<br>Profitability and Returns<br>▪<br>Adjusted ROAA & ROATCE 0.93%<br>(2)<br>and 13.02%<br>(2)<br>1Q22<br>▪<br>Adjusted Efficiency Ratio 62.2%<br>(2)<br>1Q22<br>▪<br>Adjusted diluted EPS $0.52<br>(2)<br>1Q22<br>▪<br>Quarterly dividend of $0.23 (3.87% yield)<br>(5)<br>Sound Growth Strategy<br>Driven by<br>Regional Operating Model<br>▪<br>Organic growth across key business lines driven by regional operating model that aligns<br>commercial and wealth with accelerating growth in FirsTech operations<br>▪<br>Quarter<br>-<br>over<br>-<br>quarter core loan<br>(2)<br>growth (ex<br>-<br>PPP) of $127 million (1.8% QoQ growth) and<br>year<br>-<br>over<br>-<br>year core loan growth (ex<br>-<br>PPP, ex<br>-<br>GSB) of $588 million (9.4% YoY growth)<br>▪<br>Combined Wealth Management and FirsTech YoY revenue<br>(3)<br>growth of 21.4%<br>▪<br>Efficient and right<br>-<br>sized branch network (average deposits per branch of $183 million)<br>▪<br>Leverage track record as proven successful acquirer to expand through disciplined M&A<br>Powerful Combination of<br>Three Business Lines Drives<br>Strong Noninterest Income<br>▪<br>Significant revenue derived from diverse and complementary fee income sources<br>▪<br>Noninterest income / revenue<br>(4)<br>of 34% for 1Q22<br>▪<br>Wealth management and payment technology solutions account for 58% of noninterest<br>income in 1Q22<br>▪<br>Sizable business lines provide for a full suite of solutions for our clients across their lifecycle<br>Built on a Fortress Balance Sheet<br>Pristine asset quality, highly diversified loan portfolio, and capital levels significantly in excess of well<br>-<br>capitalized minimu<br>ms
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8<br>8<br>Ticker: BUSE<br>Joined Busey in 2006 and led various finance functions prior to serving as CFO/COO and now Bank President/CEO. Mr. Elliott<br>has played instrumental roles in executing various strategic and growth initiatives. Before joining Busey, Mr. Elliott worked<br>for Ernst & Young.<br>Has served as President & CEO of First Busey since 2007 and became Chairman of the Board effective July 2020. Mr.<br>Dukeman was President & CEO of Main Street Trust from 1998 until its merger with First Busey in 2007. His 40 years of<br>diverse financial services experience and extensive board involvement brings a conservative operating philosophy and a<br>management style that focus on Busey’s associates, customers, communities and shareholders.<br>Van A. Dukeman<br>Chairman, President & CEO, First Busey Corp.<br>Robin N. Elliott<br>President & CEO, Busey Bank<br>Experienced Management Team<br>Joined Busey in January 2020 with nearly 25 years of financial leadership experience. Previously, Ms. Bowe served as Senior<br>Director of Operational Risk Program Management at KeyBank. Ms. Bowe offers experience in M&A due diligence, effective<br>navigation of key risk areas and dedication to continuous improvement towards enterprise<br>-<br>wide risk management strategies.<br>Monica L. Bowe<br>EVP & Chief Risk Officer<br>Joined Busey in December 2011 and has over 40 years of legal experience. Prior to joining Busey, he was a partner in the<br>law firm of Meyer Capel, where he specialized in serving the financial services industry.<br>John J. Powers<br>EVP & General Counsel<br>Joined Busey in 2008 and now leads many areas, including: operations, corporate strategy, marketing and communications,<br>community relations, customer experience, human resources, as well as M&A integration and other key projects and<br>strategic initiatives. Prior to joining Busey, Mrs. Randolph worked for 10+ years with CliftonLarsonAllen LLP.<br>Amy L. Randolph<br>Chief of Staff & EVP of Pillar Relations<br>Joined Busey in 1984, serving in the role of Chief Banking Officer or Chief Credit Officer since 2010 and chairing all Credit<br>Committees. Mr. Plecki previously served as COO, President & CEO of Busey Wealth Management, and EVP of the Florida and<br>Champaign markets. Prior to the 2007 merger with First Busey, he served in various management roles at Main Street Trust.<br>Robert F. Plecki, Jr.<br>EVP & Co<br>-<br>Chief Banking Officer<br>Joined Busey in 2011 and has over 15 years of experience in the banking industry. Before being named Co<br>-<br>Chief Banking<br>Officer in 2020, Mr. Jorstad served as Regional President for Commercial Banking<br>—<br>overseeing business banking efforts,<br>including Agricultural, Commercial, Construction and Real Estate financing.<br>Chip Jorstad<br>EVP & Co<br>-<br>Chief Banking Officer<br>Joined Busey in 2021 where he focuses on developing strategic growth opportunities and product development with an<br>emphasis on well<br>-<br>capitalized banking. Prior to Busey, Mr. Mayberry was with PNC, serving as EVP & Director of Strategy and<br>Planning for the Commercial Bank. With 30<br>-<br>plus years of financial and commercial banking experience, he previously served<br>as the Midwest Business Banking Regional Executive and National Sales Leader of Treasury Services for JPMorgan Chase.<br>Willie B. Mayberry<br>EVP & President of Regional Banking<br>Joined Busey in 2021, leading the team that provides asset management, investment and fiduciary services to individuals,<br>businesses and foundations. Mr. Burgess formerly served as President of Commerce Brokerage Services, Inc., and was<br>Director of Business Development for the east region of Commerce Trust Company. Previously, he served as Vice President<br>of Sales Operations for Fisher Investments in Woodside, California.<br>Jeff D. Burgess<br>EVP & President of Busey Wealth Management<br>Joined Busey in 2020 in his current role. Mr. Yasin is a seasoned technology operator, founder, investor and advisor, working<br>with technology companies across the globe. His experience includes working with Groupon, CareerBuilder, Accenture, and<br>KKR. Mr. Yasin has been a member of the Illinois Bar Association since 2003.<br>Farhan Yasin<br>President & CEO, FirsTech	CTO, Busey Bank<br>Joined Busey in August 2019, bringing his nearly 20 years of investment banking and financial services experience to Busey.<br>Mr. Jones previously served as Managing Director and Co<br>-<br>Head of Financial Institutions at Stephens Inc. Mr. Jones began his<br>career in the Banking Supervision and Regulation division of the Federal Reserve.<br>Jeffrey D. Jones<br>EVP & CFO
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9<br>9<br>Ticker: BUSE<br>Banking<br>Centers:<br>3<br>Deposits:<br>$442.5MM<br>Avg. Deposits<br>Per Branch:<br>$147.5MM<br>2022<br>-<br>27 Pop.<br>Growth:<br>5<br>..9% versus<br>U.S. avg.<br>3<br>..2%<br>Banking<br>Centers:<br>20<br>Deposits:<br>$2.9B<br>Avg. Deposits<br>Per Branch:<br>$143.2MM<br>2022 Pop:<br>2.8 Million<br>Four distinct operating regions provide for attractive mix of customers and<br>demographics, providing compelling business and market opportunities<br>Northern<br>Gateway<br>Central<br>Florida<br>Source: US Census Claritas data as of most recent date available & 2021 FDIC Summary of Deposits<br>Banking<br>Centers:<br>10<br>Deposits:<br>$1.9B<br>Avg. Deposits<br>Per Branch:<br>$192.4MM<br>Median HHI:<br>$83,335<br>Banking<br>Centers:<br>25<br>Deposits:<br>$5.2B<br>Avg. Deposits<br>Per Branch:<br>$208.1MM<br>DMS Rank:<br>Top 5 in 5 out of<br>7 IL Markets<br>Strong Regional Operating Model
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10<br>10<br>Ticker: BUSE<br>$1,545<br>$1,664<br>$1,754<br>$1,869<br>$1,875<br>$2,913<br>$2,920<br>$3,069<br>$3,120<br>$3,135<br>$423<br>$501<br>$431<br>$386<br>$445<br>$1,376<br>$1,710<br>$1,719<br>$1,739<br>$1,786<br>$6,257<br>$6,795<br>$6,972<br>$7,114<br>$7,241<br>$0<br>$1,000,000<br>$2,000,000<br>$3,000,000<br>$4,000,000<br>$5,000,000<br>$6,000,000<br>$7,000,000<br>$8,000,000<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>C&I<br>CRE<br>Construction<br>Retail Real Estate & Other<br>$ in millions<br>$1,570<br>$1,659<br>$1,748<br>$1,701<br>$1,669<br>$329<br>$376<br>$375<br>$386<br>$354<br>$1,899<br>$2,035<br>$2,123<br>$2,087<br>$2,023<br>54%<br>55%<br>56%<br>53%<br>53%<br>$1<br>$501<br>$1,001<br>$1,501<br>$2,001<br>$2,501<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>Retail<br>Commercial<br>% Utilized (total)<br>$ in millions<br>High Quality & Growing Loan Portfolio<br>(1) Based on loan origination (2) Busey loans ex<br>-<br>PPP growth and ex<br>-<br>GSB acquisition (3) Excludes credit card and overdraft prot<br>ection and includes tranche loan commitments and associated sub notes<br>Loan Portfolio Composition<br>–<br>Q1 202<br>2<br>Loan Portfolio Regional<br>Segmentation<br>(1)<br>Ex<br>-<br>PPP Loans Trends<br>Funded Draws & Line Utilization<br>Rate<br>(3)<br>MRQ Yield on<br>Loans<br>3.46%<br>Central<br>43%<br>Gateway<br>29%<br>Northern<br>23%<br>Florida<br>5%<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>LTM Core Growth<br>(2)<br>9.4%<br>LTM Commercial Growth<br>(2)<br>9.5%
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11<br>11<br>Ticker: BUSE<br>Top Tier Core Deposit Franchise<br>Deposit Portfolio Composition<br>–<br>Q1<br>2022<br>Historical Cost of Deposits, 2015<br>-<br>Q1 2022<br>(1)<br>Total Deposits & Loan to Deposit Ratio<br>Core Deposits<br>(2)<br>/ Total Deposits<br>(1) Quarterly effective fed funds per FRED, avg during quarter, not seasonally adjusted (2) Non<br>-<br>GAAP calculation, see Appendix;<br>Core deposits include non<br>-<br>brokered transaction accounts, money market deposit accounts, and time<br>deposits of $250,000 or less<br>0.0%<br>0.5%<br>1.0%<br>1.5%<br>2.0%<br>2.5%<br>BUSE Cost of Deposits<br>Effective Fed Funds Rate<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>C<br><br><br>k<br><br><br><br><br><br><br><br><br><br><br>$8,874<br>$10,337<br>$10,818<br>$10,769<br>$10,592<br>76.4%<br>69.5%<br>66.1%<br>66.8%<br>68.7%<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br> Total Deposits<br>Loan to Deposit Ratio<br>$ in millions<br>$8,716<br>$10,206<br>$10,659<br>$10,629<br>$10,451<br>98.2%<br>98.7%<br>98.5%<br>98.7%<br>98.7%<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br> Core Deposits<br> Core/Total Deposits<br>$ in millions<br>MRQ Avg Cost of<br>Deposits<br>0.08%<br>MRQ Avg Cost of<br>Non-Time Deposits<br>0.04%<br>Avg Deposits<br>per Branch<br>$183 million
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12<br>12<br>Ticker: BUSE<br>▪<br>Resilient, varied, and complimentary sources of fee<br>income provide revenue diversification with<br>heightened value amidst cycle of margin<br>compression<br>▪<br>Noninterest income represented 34.2% of revenue<br>(ex<br>-<br>securities losses) in 1Q22<br>▪<br>Key businesses of wealth management and<br>payment technology solutions contributed<br>57<br>% of<br>noninterest income<br>(ex<br>-<br>securities losses)<br>in 1Q22<br>▪<br>YoY increase in fee income broad<br>-<br>based with<br>increases in wealth management, payment<br>technology solutions, and fees for customer services<br>Diversified and Significant Sources of Fee Income<br>Noninterest Income / Total Revenue<br>(1)<br>YoY growth of Wealth Management Fees & Payment Tech Solutions: 21.2%<br>(1) Includes net security gains and losses<br>Sources of Noninterest Income (YTD)<br>$ in thousands<br>Noninterest Income Details<br>3/31/21<br>3/31/22<br>YOY Change<br>Wealth Management Fees<br>$12,584<br>$15,779<br>25.4%<br>Fees for Customer Services<br>$8,037<br>$8,907<br>10.8%<br>Payment Technology Solutions<br>$4,621<br>$5,077<br>9.9%<br>Mortgage Revenue<br>$2,666<br>$975<br>-63.4%<br>Income on Bank Owned Life Insurance<br>$964<br>$884<br>-8.3%<br>Net Security Gains (Losses)<br>$1,641<br>-$614<br>-137.4%<br>Other Noninterest Income<br>$932<br>$4,764<br>411.2%<br>Total Noninterest Income<br>$31,445<br>$35,772<br>13.8%<br>$31.4<br>$33.0<br>$33.3<br>$35.1<br>$35.8<br>$64.9<br>$64.5<br>$70.8<br>$70.5<br>$70.1<br>$96.3<br>$97.6<br>$104.0<br>$105.6<br>$105.8<br>32.6%<br>33.8%<br>32.0%<br>33.2%<br>33.8%<br>10.0%<br>20.0%<br>30.0%<br>40.0%<br>50.0%<br>60.0%<br>70.0%<br>80.0%<br>90.0%<br>$0.0<br>$20.0<br>$40.0<br>$60.0<br>$80.0<br>$100.0<br>$120.0<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br>Noninterest Income<br>Net Interest Income<br>Nonint. Inc. / Total Income<br>$ in<br>millions<br>▪<br>Pie Chart excludes<br>net securities losses
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13<br>13<br>Ticker: BUSE<br>Fully Integrated Wealth Management Platform<br>Six Distinct Teams<br>Our wealth management business provides effective and high<br>-<br>touch solutions for<br>high<br>-<br>net<br>-<br>worth individuals. Our clients work with a dedicated team of financial<br>professionals, with each team member bringing their specialized focus to add<br>value to each client’s personal situation. With financial planning at the core of our<br>client experience, we leverage the collective expertise of the team to streamline<br>the delivery of our investment strategy and holistic wealth services, in a cohesive,<br>consolidated manner.<br>Private Wealth Advisor<br>Wealth Planning<br>Private Client<br>Legacy Planning<br>Tax Planning & Preparation<br>Portfolio Management<br>▪<br>Concierge banking with one point of<br>contact<br>▪<br>Complete and simplified coordination<br>of all banking needs<br>▪<br>Tax<br>-<br>advantaged retirement savings<br>maximization<br>▪<br>Goal tracking, projections &<br>stress testing<br>▪<br>Deduction maximization & tax<br>-<br>advantaged savings strategies<br>▪<br>1040 & 1041 preparation by<br>in<br>-<br>house team<br>▪<br>Philanthropic advisory<br>▪<br>Tax<br>-<br>efficient wealth transfer & asset<br>protection<br>▪<br>Institutional approach<br>▪<br>Corporate retirement plan advisory<br>▪<br>Consistent track record of<br>outperformance<br>▪<br>Risk<br>-<br>return optimization<br>▪<br>Specialized strategies for tax efficiency
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14<br>14<br>Ticker: BUSE<br>$12.6<br>$13.0<br>$13.7<br>$13.7<br>$15.8<br>$6.0<br>$6.3<br>$6.1<br>$5.5<br>$7.5<br>47.8%<br>48.3%<br>44.1%<br>40.1%<br>47.6%<br>20.0%<br>25.0%<br>30.0%<br>35.0%<br>40.0%<br>45.0%<br>50.0%<br>$1.0<br>$3.0<br>$5.0<br>$7.0<br>$9.0<br>$11.0<br>$13.0<br>$15.0<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br> Revenue<br> Pre-Tax Net Income<br>Pre-Tax Profit Margin<br>$ in millions<br>Growing Wealth Management Business<br>Q1 2022 Summary<br>▪<br>Assets under care of $12.3 billion, a year<br>-<br>over<br>-<br>year increase of $1.6 billion, or 15%, which was impacted by<br>the acquisition of Glenview State Bank in 2021<br>▪<br>Decline in AUC from 4Q21 principally due to a reduction in market valuations during 1Q22<br>▪<br>Wealth revenue of $15.8 million, a 25.4% year<br>-<br>over<br>-<br>year increase<br>▪<br>Wealth pre<br>-<br>tax net income of $7.5 million, a 24.7% year<br>-<br>over<br>-<br>year increase<br>▪<br>Pre<br>-<br>tax profit margin of 47.6%, and a 45.6% average profit margin over last 5 quarters<br>▪<br>The investment team continues to produce excellent returns, outperforming benchmarks over multiple<br>measurement periods<br>▪<br>YT return for the team’s blended portfolio outperformed the blended benchmark<br>(1)<br>by 93 bps<br>(1) Blended benchmark consists of 60% MSCI All<br>-<br>Country World Index / 40% Bloomberg Intermediate Govt/Credit Index (2) Wealth Ma<br>nagement segment<br>Wealth<br>-<br>Assets Under Care<br>Wealth<br>–<br>Revenue & Pre<br>-<br>tax Income<br>(2)<br>$10,692<br>$12,303<br>$12,364<br>$12,731<br>$12,329<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br>$ in<br>millions
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15<br>15<br>Ticker: BUSE<br>Scalable Payment Technology Solutions Platform<br>Customer Overview<br>FirsTech Today<br>Transactions<br>processed per year<br>(3)<br>34<br>Million<br>$10.3<br>Billion<br>Payments processed<br>annually<br>(2)<br>Customers across<br>numerous industries<br>and growing<br>150<br>+<br>Number of non<br>-<br>cash<br>payment transactions<br>in the United States<br>per year<br>(1)<br>174<br>Billion<br>Value of non<br>-<br>cash<br>payments<br>in the United States<br>per year<br>(1)<br>$97<br>Trillion<br>The Opportunity<br>Average FirsTech<br>customer utilizes<br>only<br>1.9 payment solutions<br>out of<br>an<br>available 9<br>< 5%<br>of current commercial bank<br>customers utilize a specific<br>FirsTech payment solution<br>Near<br>Term<br>Intermediate<br>Term<br>Expand<br>outside the Busey ecosystem<br>with<br>our complete payments<br>platform model<br>and<br>Banking as a<br>Service<br>(BaaS) initiatives<br>–<br>business development<br>recently<br>hired to drive this initiative<br>Large Utilities<br>Insurance<br>Banks<br>Credit Unions<br>Telecom<br>(1) Total addressable market per the 2019 Federal Reserve Payments Study (2) LTM total payments processed (3) LTM total tra<br>nsa<br>ctions processed
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16<br>16<br>Ticker: BUSE<br>Multi<br>-<br>Layered<br>Payment Technology Solutions Platform<br>FirsTech Growth and Expansion of Services<br>Payment Technology Solutions Platform<br>▪<br>FirsTech’s payments platform provides custom<br>payment technology solutions through a<br>comprehensive suite of capabilities<br>▪<br>Mobile bill pay, walk<br>-<br>in payment processing,<br>lockbox, online bill pay, IVR; and electronic<br>concentration of payments delivered via ACH,<br>money management software and credit card<br>networks<br>Q1 2022 Highlights<br>▪<br>Highest quarterly revenue<br>(1)<br>in the history of<br>FirsTech ($5.4 million) in 1Q22<br>▪<br>Rolled out API<br>-<br>based payments platform to<br>existing and new customers<br>▪<br>Launched new one<br>-<br>time payments platform<br>within the Busey Bank environment<br>Key Initiatives<br>▪<br>Continue to foster and grow relationships with<br>current clients utilizing the payments platform<br>▪<br>Expand existing and new product offerings with<br>current and future clients, including the BaaS<br>solution<br>▪<br>Enhance existing products and services with<br>new technology that will expand FirsTech’s<br>footprint in the fintech area<br>(1) Non<br>-<br>GAAP, revenue equates to all revenue sources tied to FirsTech and excludes intracompany eliminations and consolidations<br>Revenue Growth<br>(1)<br>3/31/21 LTM<br>3/31/22 LTM<br>$20.3<br>million<br>+ 16.3%<br>$17.4<br>million
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17<br>17<br>Ticker: BUSE<br>$58.6<br>$59.1<br>$64.4<br>$66.4<br>$68.1<br>$2.2<br>$1.7<br>$1.8<br>$1.5<br>$1.2<br>$4.8<br>$4.3<br>$5.2<br>$3.3<br>$1.3<br>$65.5<br>$65.1<br>$71.4<br>$71.1<br>$70.6<br>$62.0<br>$63.0<br>$64.0<br>$65.0<br>$66.0<br>$67.0<br>$68.0<br>$69.0<br>$70.0<br>$71.0<br>$72.0<br>$45.0<br>$50.0<br>$55.0<br>$60.0<br>$65.0<br>$70.0<br>$75.0<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br>Net Interest Income<br>Accretion<br>PPP Income (Net fees + coupon)<br>$ in millions<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Net Interest Margin<br>Net Interest Margin Bridge<br>(1) Tax<br>-<br>equivalent adjusted amounts; Non<br>-<br>GAAP, see Appendix (2) Non<br>-<br>GAAP; Ex<br>-<br>PPP NIM removes the balance of PPP loans and assoc<br>iated income as well as the equivalent amount of self<br>-<br>funding noninterest bearing deposits<br>Factors contributing to 9 bps increase in NIM during quarter<br>(<br>-<br>) RATE ROLL<br>Existing loans amortize and paydown at higher rates than new<br>loan production, but difference continues to compress<br>(+) NEW LOAN VOLUME YIELDS<br>Yields<br>on new loan volume were 6 bps<br>higher than in 4Q21, while net new funding yields (inclusive of line utilization<br>changes) were 7 bps higher<br>(<br>-<br>) PPP INCOME<br>PPP contribution decreased by $1.9 million due to further<br>shrinking of the PPP loan portfolio as forgiveness continues and the associated<br>net deferred fee recognition<br>(<br>-<br>) ACCRETION<br>Purchase accounting accretion recognition declined from $1.5<br>million to $1.2 million during 1Q22<br>(+) SECURITIES PORTFOLIO YIELD<br>Increases in the securities portfolio<br>yield contributed 6 bps of NIM expansion<br>(+) FUNDING COSTS / CASH FLOW HEDGES<br>Continued success lowering<br>funding costs contributed 1 bps of NIM expansion and net interest income from<br>cash flow hedges contributed 3 bps of NIM expansion<br>Net Interest Margin<br>2.45%<br>Net Interest Income<br>(1)<br>3.03%<br>2.77%<br>2.65%<br>2.57%<br>2.66%<br>0.33%<br>0.29%<br>0.25%<br>0.22%<br>0.22%<br>2.72%<br>2.50%<br>2.41%<br>2.36%<br>2.45%<br>0.09%<br>0.06%<br>0.06%<br>0.05%<br>0.04%<br>2.66%<br>2.45%<br>2.30%<br>2.28%<br>2.41%<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br>Earning Assets<br>Cost of Funds<br>NIM<br>Accretion<br>Ex-PPP NIM(2)<br>NIM ex<br>-<br>PPP up 13 bps<br>vs. 4Q21
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18<br>18<br>Ticker: BUSE<br>54.7<br>61.7<br>67.3<br>64.4<br>63.0<br>54.3<br>58.9<br>59.0<br>59.1<br>62.2<br>52.0<br>58.1<br>58.7<br>57.6<br>59.9<br>50.0<br>52.0<br>54.0<br>56.0<br>58.0<br>60.0<br>62.0<br>64.0<br>66.0<br>68.0<br>70.0<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br> Reported Efficiency Ratio<br> Adjusted Efficiency Ratio<br>Core Adj. Efficiency Ratio<br>1,531<br>1,346<br>1,463<br>1,465<br>YE 2019<br>YE 2020<br>YE 2021<br>YTD 2022<br>$54.5<br>$62.6<br>$73.5<br>$71.2<br>$70.4<br>$49.5<br>$56.5<br>$61.4<br>$60.9<br>$64.1<br>$30.0<br>$35.0<br>$40.0<br>$45.0<br>$50.0<br>$55.0<br>$60.0<br>$65.0<br>$70.0<br>$75.0<br>$80.0<br>$30.0<br>$35.0<br>$40.0<br>$45.0<br>$50.0<br>$55.0<br>$60.0<br>$65.0<br>$70.0<br>$75.0<br>$80.0<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br>Noninterest Exp.<br>$54.5<br>$62.6<br>$73.5<br>$71.2<br>$70.4<br>Unfunded Provision<br>$0.4<br>-$0.5<br>-$1.0<br>$0.3<br>$1.1<br>Acq./Restructuring Exp.<br>$0.3<br>$2.7<br>$8.7<br>$5.6<br>$0.8<br>Intangible Amort.<br>$2.4<br>$2.7<br>$3.1<br>$3.1<br>$3.0<br>NMTC Amort.<br>$1.8<br>$1.2<br>$1.2<br>$1.3<br>$1.3<br>Core Adj. Exp. (1)<br>$49.5<br>$56.5<br>$61.4<br>$60.9<br>$64.1<br>Noninterest Exp.<br>Core Adj. Exp. (1)<br>$ in millions<br>Focused Control on Expenses<br>(1) Non<br>-<br>GAAP, see Appendix<br>▪<br>Core adjusted expenses<br>(1)<br>of $64.1 million in 1Q22<br>excluding amortization of intangible assets, provision<br>for unfunded commitments, acquisition / restructuring<br>related charges, and NMTC amortization<br>▪<br>Taking advantage of market dislocation to attract new<br>talent across our platform and balancing wage<br>inflation across our markets<br>▪<br>1Q22 other noninterest expense included a<br>$0.6 million impairment of OREO that sold subsequent<br>to quarter<br>-<br>end<br>▪<br>Over the past 7 quarters<br>, consolidated 33% of our<br>branch footprint<br>▪<br>Re<br>duced<br>count from 87 (proforma for GSB) to 58<br>▪<br>Increasing average deposits per branch from<br>$<br>113<br>million at 9/30/20 to $183 million at 3/31/22<br>Noninterest Expense<br>Efficiency Ratio<br>(1)<br>Full<br>-<br>Time Equivalents (FTE)
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19<br>19<br>Ticker: BUSE<br>▪<br>Continued investment in technology, automation, and data analytics across the company<br>▪<br>Seeing tangible results as we continue to adapt to our customers’ needs<br>▪<br>Digital relationship banking team formed in 4Q20 to manage Digital Preferred Banking<br>(1)<br>deposit accounts<br>▪<br>Five digital relationship bankers manage 3. of Busey’s total retail A & Savings accounts<br>(2)<br>(1)<br>Digital Preferred is defined as Retail, deposit<br>-<br>only customers with their first account opened before 2020, who bank outside of<br>a physical Service Center, using eBank, a debit card or ATM at least 90% of the time, with five or<br>more banking transactions annually<br>(2) As of 3/31/22<br>Continued<br>Investment in Technology Enterprise<br>-<br>Wide<br>RPA solution for<br>FirsTech<br>4Q 2021<br>Cloud<br>-<br>based software<br>to manage / secure<br>identities<br>1Q 2019<br>3Q 2019<br>Treasury Management<br>sales & onboarding solution<br>implemented<br>Core Operating Platform<br>Conversion<br>4Q 2019<br>4Q 2019<br>Enterprise<br>-<br>wide<br>CRM system<br>installed<br>Upgraded Treasury<br>Management software<br>4Q 2019<br>4Q 2019<br>Enterprise<br>-<br>wide<br>electronic knowledge<br>management solution<br>AI<br>-<br>driven marketing data<br>analytics tool established<br>4Q 2019<br>1Q 2020<br>Mobile and e<br>-<br>banking upgraded<br>Data warehouse build<br>-<br>out<br>Secure online chat<br>1Q 2020<br>1Q 2020<br>Debit card<br>on/off functionality<br>3Q 2020<br>Online deposit<br>account origination<br>Hired New Chief<br>Technology Officer<br>3Q 2020<br>Digital relationship<br>banking team formed<br>4Q 2020<br>4Q 2020<br>Online retail loan<br>origination capabilities<br>Zelle implementation<br>Digital workflow software<br>1Q 2021<br>3Q 2021<br>GSB Conversion<br>completed<br>PPP online<br>customer loan<br>application portal<br>2Q 2020<br>4Q 2021 / 2022<br>Complete transition<br>of ATM fleet<br>3Q 2020<br>PPP online forgiveness<br>application portal<br>Upgrade to core<br>Wealth platform<br>3Q 2022<br>2Q 2022<br>Mortgage<br>eClosing<br>to<br>go live<br>FirsTech<br>launched new<br>one<br>-<br>time payments<br>platform for Busey Bank<br>customers<br>1Q 2022
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20<br>20<br>Ticker: BUSE<br>▪<br>TCE/TA ratio of 7.01% at 3/31/22<br>(1)<br>▪<br>Capital ratios significantly in excess of well<br>-<br>capitalized minimums<br>▪<br>Total RBC of 15.8% and CET1 ratio of 11.9% at 3/31/22<br>(2)<br>▪<br>TBV per share of $15.29 at<br>3/31/22<br>(1)<br>▪<br>Diversified portfolio, conservatively underwritten with low levels of concentration<br>▪<br>Non<br>-<br>performing (0.13% of total assets) and classified assets (7.2% of capital) both at<br>historically low levels<br>▪<br>Reserves remain well above initial Day 1 CECL estimate of 1.06%<br>→<br>ACL/Loans: 1.22%<br>(3)<br>ACL/NPLs: 695.41%<br>▪<br>No remaining full<br>-<br>payment deferrals under COVID<br>-<br>related modification programs<br>▪<br>100 / 300 Test: 34% C&D 205% CRE<br>▪<br>Robust holding company and bank<br>-<br>level liquidity<br>▪<br>Strong core deposit franchise<br>▪<br>68.7% loan<br>-<br>to<br>-<br>deposit ratio,<br>98.7% core deposits<br>(4)<br>▪<br>Borrowings accounted for approximately<br>5.4%<br>of total funding at 3/31/22<br>▪<br>Substantial sources of off<br>-<br>balance sheet contingent funding<br>($3.7 billion)<br>(1) Non<br>-<br>GAAP calculation, see Appendix (2) 1Q22 capital ratios are preliminary estimates (3) Excluding amortized cost of PPP l<br>oans (4) Non<br>-<br>GAAP calculation, see Appendix; Core deposits include non<br>-<br>brokered transaction<br>accounts, money market deposit accounts, and time deposits of $250,000 or less<br>Robust<br>Capital<br>Foundation<br>High Quality,<br>Resilient Loan<br>Portfolio<br>Strong Core<br>Deposit<br>Franchise &<br>Ample<br>Liquidity<br>Fortress<br>Balance Sheet
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21<br>21<br>Ticker: BUSE<br>$1,008<br>$1,062<br>$1,061<br>$1,070<br>$1,086<br>9.8%<br>9.6%<br>8.6%<br>8.5%<br>8.8%<br>4%<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br> Tier 1 Capital<br>Leverage Ratio<br>Min Ratio<br>$ in<br>millions<br>$919<br>$982<br>$971<br>$959<br>$856<br>8.8%<br>8.2%<br>7.8%<br>7.7%<br>7.0%<br>12.8%<br>12.3%<br>12.0%<br>11.8%<br>11.9%<br>2.0%<br>4.0%<br>6.0%<br>8.0%<br>10.0%<br>12.0%<br>14.0%<br>$600<br>$650<br>$700<br>$750<br>$800<br>$850<br>$900<br>$950<br>$1,000<br>$1,050<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br> TCE<br>TCE Ratio<br>CET1 Ratio<br>$ in<br>millions<br>Robust Capital Foundation<br>(1) Non<br>-<br>GAAP calculation, see Appendix (2) 1Q22 capital ratios are preliminary estimates<br>...<br>Tangible Common Equity<br>(1)<br>& CET1 Ratios<br>Total Capital Ratio<br>(2)<br>Leverage Ratio<br>(2)<br>Consolidated Capital as of 3/31/22<br>(2)<br>$ in millions<br>Common<br>Equity<br>Tier 1 Ratio<br>Tier 1<br>Capital<br>Ratio<br>Total<br>Capital<br>Ratio<br>Capital Ratio<br>11.9%<br>12.8%<br>15.8%<br>Minimum Well Capitalized Ratio<br>6.5%<br>8.0%<br>10.0%<br>Amount of Capital<br>$1,012<br>$1,086<br>$1,345<br>Well Capitalized Minimum<br>$553<br>$681<br>$851<br>Excess Amount over Min<br>$459<br>$405<br>$494<br>$728<br>$806<br>$826<br>$841<br>$851<br>$538<br>$517<br>$488<br>$494<br>$494<br>17.4%<br>16.4%<br>15.9%<br>15.7%<br>15.8%<br>10%<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br> Well Cap Min<br>Excess over Min<br>Total Capital Ratio<br>Min Ratio<br>$ in<br>millions
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22<br>22<br>Ticker: BUSE<br>Pristine Credit Quality<br>▪<br>C<br>onservative underwriting<br>continues to result in pristine<br>credit quality performance<br>▪<br>Non<br>-<br>performing<br>asset, classified asset, and net<br>charge<br>-<br>off ratios have declined to historically low levels<br>▪<br>NPAs/Assets of 0.13% at 3/31/22<br>▪<br>Non<br>-<br>performing assets at 3/31/22 included a<br>$2.0 million OREO property, the sale of which closed<br>subsequent to<br>quarter<br>-<br>end<br>▪<br>Net recovery of $0.6 million in 1Q22<br>▪<br>Net charge<br>-<br>offs over the LTM total $1.35 million,<br>which equates to less than 0.02% of 1Q22 avg loans<br>(1) Capital calculated as Busey Bank Tier 1 Capital + Allowance for credit<br>losses<br>NPAs / Assets<br>Classifieds<br>/ Capital<br>(1)<br>NCOs / Average Loans<br>$9,696<br>$10,544<br>$12,860<br>$12,568<br>0.34%<br>0.27%<br>0.17%<br>0.13%<br>2019 YE<br>2020 YE<br>2021 YE<br>2022 Q1<br>Assets<br>%NPAs/Assets<br>$ in millions<br>$1,099<br>$1,155<br>$1,320<br>$1,345<br>9.7%<br>8.5%<br>7.0%<br>7.2%<br>2019 YE<br>2020 YE<br>2021 YE<br>2022 Q1<br> Capital<br>Classified/Capital<br>$ in millions<br>$6,470<br>$7,007<br>$6,970<br>$7,161<br>0.11%<br>0.12%<br>0.03%<br>-<br>0.03%<br>2019 YE<br>2020 YE<br>2021 YE<br>2022 Q1<br> Avg Loans<br>NCOs/Avg Loans<br>$ in millions<br>$0.6<br>Net<br>Recovery
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23<br>23<br>Ticker: BUSE<br>Reserve Supports Credit & Growth Profile<br>Allowance / NPLs<br>Allowance / NPAs<br>Allowance / Loans (ex<br>-<br>PPP)<br>▪<br>Reserve to loans of 1.22% (ex<br>-<br>PPP)<br>▪<br>Day 1 CECL coverage was 1.06%<br>▪<br>Non<br>-<br>performing loan balances have<br>continued to decline<br>▪<br>Reserves to NPLs now equal to 695%<br>$5,568<br>$6,687<br>$6,368<br>$7,114<br>$7,241<br>0.91%<br>0.80%<br>1.59%<br>1.24%<br>1.22%<br>2018 YE<br>2019 YE<br>2020 YE<br>2021 YE<br>2022 Q1<br>Ex-PPP Loans<br>Allowance/Ex-PPP Loans<br>$ in millions<br>$36,598<br>$29,507<br>$24,301<br>$16,852<br>$12,685<br>138%<br>182%<br>416%<br>522%<br>695%<br>100%<br>200%<br>300%<br>400%<br>500%<br>600%<br>700%<br>800%<br>$0<br>$5,000<br>$10,000<br>$15,000<br>$20,000<br>$25,000<br>$30,000<br>$35,000<br>$40,000<br>2018 YE<br>2019 YE<br>2020 YE<br>2021 YE<br>2022 Q1<br> NPLs<br>Allowance/NPLs<br>$ in thousands<br>$36,974<br>$32,564<br>$28,872<br>$21,268<br>$16,291<br>137%<br>165%<br>350%<br>413%<br>541%<br>90%<br>140%<br>190%<br>240%<br>290%<br>340%<br>390%<br>440%<br>490%<br>540%<br>$0<br>$5,000<br>$10,000<br>$15,000<br>$20,000<br>$25,000<br>$30,000<br>$35,000<br>2018 YE<br>2019 YE<br>2020 YE<br>2021 YE<br>2022 Q1<br> NPAs<br>Allowance/NPAs<br>$ in thousands
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24<br>24<br>Ticker: BUSE<br>$2,797<br>$3,461<br>$4,010<br>$4,027<br>$4,078<br>1.60%<br>1.40%<br>1.37%<br>1.42%<br>1.80%<br>0.00%<br>0.50%<br>1.00%<br>1.50%<br>2.00%<br>2.50%<br>$00<br>$500<br>$1,000<br>$1,500<br>$2,000<br>$2,500<br>$3,000<br>$3,500<br>$4,000<br>$4,500<br>$5,000<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br>Book Value<br>Tax Equivalent Yield<br>$ in millions<br>Balanced, Low<br>-<br>Risk, Short<br>-<br>Duration Investment Portfolio<br>▪<br>BUSE carried $976MM in held<br>-<br>to<br>-<br>maturity (HTM) securities<br>as of 3/31/22<br>▪<br>Transferred a portion of the portfolio comprised of<br>Agency RMBS & CMBS from available<br>-<br>for<br>-<br>sale (AFS)<br>to HTM during 1Q22<br>▪<br>The duration of the securities portfolio including HTM is<br>4.5 years and our fair value duration, which excludes the<br>HTM portfolio, is 4.1 years<br>▪<br>After<br>-<br>tax net AFS unrealized loss position of $97.7 million<br>▪<br>Carrying value of investment portfolio is 31% of total assets<br>▪<br>Allowance for credit losses for investments is $0<br>▪<br>Projected remaining 2022 roll off cash flow (based on static<br>rates) of $405 million at ~1.85% yield<br>▪<br>1Q22 new purchases of $275 million at avg yield of 2.36%<br>Deploying Excess Liquidity into Attractive<br>Securities<br>All Mortgage<br>-<br>Backed Securities &<br>Collateralized Mortgage Obligations are Agency<br>89% of Municipal holdings rated AA or better and<br>10% rated A<br>100% of Corporate holdings are investment grade<br>Collateralized Loan Obligation portfolio consists of<br>86% rated AAA and 14% rated AA<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Investment Portfolio Composition<br>–<br>Q1 2022
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25<br>25<br>Ticker: BUSE<br>▪<br>Net interest income was $70.1 million in 1Q22 vs. $70.5 million in 4Q21 and $64.9 million in 1Q21<br>▪<br>$1.1 million less net interest income QoQ due to two fewer days in 1Q22 than 4Q21<br>▪<br>Net interest margin was 2.45% in 1Q22, an increase of 9 bps vs. 2.36% in 4Q21<br>▪<br>Adjusted net interest margin<br>(1)<br>(ex<br>-<br>purchase accounting accretion) was 2.41% in 4Q22, an increase of<br>10 bps vs. 2.31% in 4Q21<br>▪<br>Primary factors contributing to the quarter’s NIM expansion was the growth of the loan portfolio<br>combined with higher new volume rates & repricing rates (6 bps increase) and securities portfolio yield<br>(6 bps increase), which helped to offset reduced volume of PPP forgiveness (6 bps decrease)<br>Noninterest<br>Expense<br>▪<br>Noninterest income (ex<br>-<br>securities losses) of $36.4 million in 1Q22, representing 34% of revenue<br>▪<br>Wealth management fees of $15.8 million in 1Q22, up 15%<br>QoQ<br>and up 25% YoY<br>▪<br>Payment technology solutions revenue of $5.1 million in 1Q22, up 11%<br>QoQ<br>and up 10% YoY<br>▪<br>Fees for customer services of $8.9 million in 1Q22, down from $9.7 million in 4Q21, and up 11% YoY<br>▪<br>Adjusted noninterest expense<br>(1)<br>(ex<br>-<br>amortization of intangibles, one<br>-<br>time acquisition and restructuring<br>related items) of $66.5 million in 1Q21, resulting in a 62.2% adjusted efficiency ratio<br>(1)<br>▪<br>Core adjusted noninterest expense<br>(1)<br>of $64.1 million (ex<br>-<br>amortization of intangible assets, unfunded<br>commitment provision, NMTC amortization, and one<br>-<br>time items) in 1Q22, equating to 59.9% core<br>adjusted efficiency ratio<br>(1)<br>▪<br>Adjusted net income of $29.1 million or $0.52 per diluted share<br>(1)<br>▪<br>Adjusted pre<br>-<br>provision net revenue of $39.4 million (1.26% PPNR ROAA)<br>(1)<br>▪<br>0.93% Adjusted ROAA and 13.02% Adjusted ROATCE<br>(1)<br>Earnings<br>Noninterest<br>Income<br>Net Interest<br>Income<br>Provision<br>▪<br>$0.3 million negative loan loss provision expense (reserve release)<br>▪<br>$1.1 million provision for unfunded commitments (captured in other noninterest expense)<br>▪<br>Net recovery of $0.6 million in 1Q22<br>(1) Non<br>-<br>GAAP, see Appendix<br>Quarterly Earnings Review
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26<br>26<br>Ticker: BUSE<br>$42.8<br>$37.5<br>$39.4<br>$41.1<br>$39.4<br>1.64%<br>1.32%<br>1.23%<br>1.27%<br>1.26%<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br> Adj. PPNR<br> Adj. PPNR / Avg Assets<br>$ in millions<br>Earnings Performance<br>(1) Non<br>-<br>GAAP calculation, see Appendix (2) Historical key rates per quarterly Stifel dispatch<br>Adjusted ROAA & ROATCE<br>(1)<br>Adjusted Pre<br>-<br>Provision Net Revenue / Avg. Assets<br>(1)<br>Adjusted Net Income & Earnings Per Share<br>(1)<br>$38.1<br>$31.9<br>$32.8<br>$34.3<br>$29.1<br>$0.69<br>$0.57<br>$0.58<br>$0.61<br>$0.52<br>$0.00<br>$0.10<br>$0.20<br>$0.30<br>$0.40<br>$0.50<br>$0.60<br>$0.70<br>$0.80<br>$0.90<br>$1.00<br>$3.0<br>$8.0<br>$13.0<br>$18.0<br>$23.0<br>$28.0<br>$33.0<br>$38.0<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br> Adj. Net Income<br> Adj. Earnings Per Share<br>$ in millions<br>16.9%<br>13.1%<br>13.4%<br>14.3%<br>13.0%<br>1.46%<br>1.12%<br>1.03%<br>1.05%<br>0.93%<br>0.30%<br>0.50%<br>0.70%<br>0.90%<br>1.10%<br>1.30%<br>1.50%<br>1.70%<br>0.0%<br>2.0%<br>4.0%<br>6.0%<br>8.0%<br>10.0%<br>12.0%<br>14.0%<br>16.0%<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br>Adj. ROATCE<br> Adj. ROAA<br>Historical Key Rates<br>(2)<br>0.12%<br>0.10%<br>0.08%<br>0.10%<br>0.46%<br>0.16%<br>0.25%<br>0.30%<br>0.73%<br>2.28%<br>0.92%<br>0.87%<br>1.01%<br>1.26%<br>2.42%<br>1.70%<br>1.45%<br>1.53%<br>1.50%<br>2.32%<br>-0.25%<br>0.25%<br>0.75%<br>1.25%<br>1.75%<br>2.25%<br>2.75%<br>3/31/21<br>6/30/21<br>9/30/21<br>12/31/21<br>3/31/22<br>1m LIBOR<br>2-yr UST<br>5-yr UST<br>10-Yr UST
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27<br>27<br>Ticker: BUSE<br>Environmental, Social and Governance Responsibility<br>Building on 150 Years of Excellence	Advancing a Comprehensive ESG Strategy<br>Busey’s Corporate Social Responsibility work continues within the broader context of our new ESG strategic<br>focus and framework as we build on a legacy of purposeful action, civic responsibility and positive impacts.<br>Commitment to Environment<br>•<br>Helping our clients reduce their<br>footprint from sustainable agriculture<br>to green construction, financing for<br>solar arrays, energy efficiency<br>improvements, and more.<br>•<br>Recycled nearly 500 tons of paper and<br>saving nearly 2 million kilowatts of<br>energy in 2021 alone.<br>•<br>Providing all associates training on<br>how to reduce their environmental<br>impact at home and in the office.<br>Commitment to People<br>•<br>Donating more than $1 million<br>annually and volunteered over 10,000<br>hours in 2021.<br>•<br>Attracting and retaining talent across a<br>diverse set of backgrounds and<br>experiences and investing in associate<br>wellness and training and<br>development.<br>•<br>Building upon a legacy of corporate<br>responsibility through an Enterprise<br>Community Banking program.<br>Commitment to<br>Strong Governance<br>•<br>Leading at the Board and Executive<br>level with a team of diverse<br>backgrounds and experiences.<br>•<br>Adhering to a stringent code of ethics<br>set forth standards that all Executives,<br>Directors and Officers are expected to<br>follow.<br>•<br>Prioritizing strong corporate<br>governance, exceeding all good<br>governance metrics.<br>To view the full Corporate Social Responsibility Report, visit busey.com/CSR.<br>ISS Score<br>(1)<br>(1<br>-<br>10 Range,<br>lower is better)<br>Sustainalytics Score<br>(2)<br>(Lower is better<br>–<br>Proxy Peers average 30.4)<br>Environmental<br>Disclosures<br>3<br>Social<br>Disclosures<br>4<br>Governance<br>Risk<br>2<br>New role of Director of Environmental, Social, and Governance Strategy & Reporting hired in January 2022.<br>95%<br>participation in<br>wellness program<br>Associates<br>are<br>61% female<br>8<br>years average tenure<br>40,000+ training hours<br>provided annually<br>11 Good Governance metrics<br>including internal auditing,<br>whistleblower hotline, and<br>diverse leadership<br>Strong<br>7%<br>insider ownership<br>First bank<br>to be Illinois Green Business<br>Association certified in 2012<br>Over $16 million<br>in commitments to<br>new green construction<br>(1) Last ISS Governance data profile update: 2/18/22; Last ISS E&S data profile update: 9/10/21<br>(2)<br>Sustainalytics Scores updated through 4/8/22.<br>Reporting p<br>eer<br>group is: ABCB, BANF, CUBI, EFSC, FFBC, FIBK, FRME, GBCI, HOMB, HTLF, LCNB, ONB, PRK, RNST, SFBS, SFNC, STBA, TRMK, WSBC
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28<br>28<br>Ticker: BUSE<br>APPENDIX
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29<br>29<br>Ticker: BUSE<br>$1,546<br>$1,664<br>$1,753<br>$1,869<br>$1,875<br>$1,000<br>$1,100<br>$1,200<br>$1,300<br>$1,400<br>$1,500<br>$1,600<br>$1,700<br>$1,800<br>$1,900<br>$2,000<br>2021 Q1<br>2021 Q2<br>2021 Q3<br>2021 Q4<br>2022 Q1<br>$ in<br>millions<br>High Quality Loan Portfolio: C&I<br>▪<br>25.9% of total loan portfolio (ex<br>-<br>PPP loans)<br>▪<br>Diversified portfolio results in low levels of<br>concentrated exposure<br>▪<br>Top concentration in one industry<br>(manufacturing) is 17% of C&I loans, or<br>4% of total loans<br>▪<br>Only 1.7% of C&I loans are classified<br>▪<br>YoY growth of C&I loans (ex<br>-<br>PPP) of $329<br>million (includes $66 million of acquired C&I<br>loans from Glenview State Bank)<br>(1) ex<br>-<br>PPP loan totals include purchase accounting, FASB, overdrafts, etc.<br>C&I Loans by Sector (ex<br>-<br>PPP)<br>$ in thousands<br>NAICS Sector<br>3/31/22<br> Balances<br>(ex-PPP)<br>% of Total<br>Loans<br>(ex-PPP)<br>3/31/22<br>Classified<br>Balances<br>Manufacturing<br>$316,247<br>4.4%<br>$6,848<br>Finance and Insurance<br>$262,606<br>3.6%<br>$0<br>Wholesale Trade<br>$172,526<br>2.4%<br>$428<br>Real Estate Rental & Leasing<br>$167,061<br>2.3%<br>$1,368<br>Educational Services<br>$165,856<br>2.3%<br>$0<br>Construction<br>$164,126<br>2.3%<br>$1,736<br>Health Care and Social Assistance<br>$130,662<br>1.8%<br>$6,265<br>Agriculture, Forestry, Fishing, Hunting<br>$87,715<br>1.2%<br>$1,466<br>Public Administration<br>$82,334<br>1.1%<br>$0<br>Retail Trade<br>$76,562<br>1.1%<br>$4,940<br>Food Services and Drinking Places<br>$74,993<br>1.0%<br>$820<br>Professional, Scientific, & Tech. Svcs.<br>$49,440<br>0.7%<br>$5,434<br>Other Services (except Public Admin.)<br>$35,722<br>0.5%<br>$91<br>Transportation<br>$32,519<br>0.4%<br>$250<br>Arts, Entertainment, and Recreation<br>$19,536<br>0.3%<br>$2,230<br>Administrative and Support Services<br>$15,289<br>0.2%<br>$912<br>Information<br>$9,387<br>0.1%<br>$0<br>Waste Management Services<br>$6,212<br>0.1%<br>$0<br>Mining, Quarrying, Oil & Gas Extraction<br>$4,164<br>0.1%<br>$0<br>Mgmt of Companies & Enterprises<br>$1,223<br>0.0%<br>$0<br>Utilities<br>$917<br>0.0%<br>$0<br>Grand Total<br>$1,875,098<br>25.9%<br>$32,788<br>Total C&I Loans<br>(1)
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30<br>30<br>Ticker: BUSE<br>High Quality Loan Portfolio: CRE<br>Total<br>CRE (OOCRE & CRE<br>-<br>I) Portfolio<br>▪<br>49% of total loan portfolio (ex<br>-<br>PPP)<br>▪<br>27% of CRE loans are owner<br>-<br>occupied<br>▪<br>Only 1.5% of total CRE loans and 1.6% of investor<br>-<br>owned<br>CRE loans are classified<br>▪<br>Low levels of concentrated exposure<br>▪<br>Office top concentration at 19% of total CRE portfolio<br>Multifamily<br>-<br>Apartments<br>& Student Housing<br>by<br>State<br>▪<br>61.4% Weighted<br>Avg. LTV<br>▪<br>61.8% are long<br>-<br>term<br>Busey customers<br>(4+<br>yrs<br>)<br>▪<br>0.2% c<br>lassified<br>l<br>oans<br>in Segment<br>(1) Investor owned CRE includes C&D, Multifamily<br>and non<br>-<br>owner occupied CRE<br>Investor Owned CRE Loans by Property Type<br>(1)<br>Owner Occupied CRE Loans by Property Type<br>$ in thousands<br>Property Type<br>3/31/22<br>Balances<br>% of Total<br>Loans<br>(ex-PPP)<br>3/31/22<br>Classified<br>Balances<br>Apartments<br>$462,009<br>6.4%<br>$1,701<br>Retail<br>$437,897<br>6.0%<br>$1,167<br>Office<br>$428,160<br>5.9%<br>$568<br>Student Housing<br>$288,743<br>4.0%<br>$0<br>Industrial/Warehouse<br>$272,777<br>3.8%<br>$115<br>Hotel<br>$215,229<br>3.0%<br>$505<br>Senior Housing<br>$183,330<br>2.5%<br>$0<br>LAD<br>$98,067<br>1.4%<br>$2,400<br>Specialty<br>$79,955<br>1.1%<br>$42<br>Nursing Homes<br>$62,491<br>0.9%<br>$36,287<br>Restaurant<br>$28,342<br>0.4%<br>$0<br>Health Care<br>$20,000<br>0.3%<br>$0<br>1-4 Family<br>$19,653<br>0.3%<br>$0<br>Continuing Care Facilities<br>$14,426<br>0.2%<br>$0<br>Other<br>$583<br>0.0%<br>$0<br>Grand Total<br>$2,611,663<br>36.1%<br>$42,784<br>$ in thousands<br>Property Type<br>3/31/22<br>Balances<br>% of Total<br>Loans<br>(ex-PPP)<br>3/31/22<br>Classified<br>Balances<br>Industrial/Warehouse<br>$324,762<br>4.5%<br>$3,873<br>Office<br>$252,895<br>3.5%<br>$680<br>Specialty<br>$246,744<br>3.4%<br>$2,768<br>Retail<br>$69,241<br>1.0%<br>$833<br>Restaurant<br>$56,621<br>0.8%<br>$1,634<br>Nursing Homes<br>$1,538<br>0.0%<br>$0<br>Health Care<br>$1,101<br>0.0%<br>$0<br>Hotel<br>$621<br>0.0%<br>$0<br>Apartments<br>$455<br>0.0%<br>$0<br>Other<br>$199<br>0.0%<br>$0<br>Student Housing<br>$107<br>0.0%<br>$0<br>Grand Total<br>$954,285<br>13.2%<br>$9,788<br>Illinois<br>65%<br>Indiana<br>15%<br>Other<br>State<br>10%<br>Missouri<br>9%<br>Florida<br>1%
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31<br>31<br>Ticker: BUSE<br>Non<br>-<br>GAAP Financial Information<br>Pre<br>-<br>Provision Net Revenue, Adjusted Pre<br>-<br>Provision Net Revenue,<br>Pre<br>-<br>Provision Net Revenue to Average Assets, and Adjusted Pre<br>-<br>Provision Net Revenue to Average Assets<br>(dollars in thousands)<br>Three Months Ended<br>March<br>31,<br>December<br>31,<br>September<br>30,<br>June<br>30,<br>March<br>31,<br>2022<br>2021<br>2021<br>2021<br>2021<br>PRE<br>-<br>PROVISION NET REVENUE<br>Net interest income<br>$<br>70,056<br>$<br>70,508<br>$<br>70,755<br>$<br>64,542<br>$<br>64,893<br>Total noninterest income<br>35,772<br>35,089<br>33,259<br>33,011<br>31,445<br>Net security (gains) losses<br>614<br>(474)<br>(57)<br>(898)<br>(1,641)<br>Total noninterest expense<br>(70,376)<br>(71,169)<br>(73,487)<br>(62,625)<br>(54,499)<br>Pre<br>-<br>provision net revenue<br>36,066<br>33,954<br>30,470<br>34,030<br>40,198<br>Non<br>-<br>GAAP adjustments:<br>Acquisition and other restructuring expenses<br>835<br>5,641<br>8,677<br>2,713<br>320<br>Provision for unfunded commitments<br>1,112<br>294<br>(978)<br>(496)<br>406<br>Amortization of New Markets Tax Credit<br>1,341<br>1,255<br>1,240<br>1,239<br>1,829<br>Adjusted pre<br>-<br>provision net revenue<br>$<br>39,354<br>$<br>41,144<br>$<br>39,409<br>$<br>37,486<br>$<br>42,753<br>Pre<br>-<br>provision<br>net<br>revenue,<br>annualized<br>[a]<br>$<br>146,268<br>$<br>134,709<br>$<br>120,886<br>$<br>136,494<br>$<br>163,025<br>Adjusted<br>pre<br>-<br>provision<br>net<br>revenue,<br>annualized<br>[b]<br>$<br>159,602<br>$<br>163,234<br>$<br>156,351<br>$<br>150,356<br>$<br>173,387<br>Average total assets<br>[c]<br>$<br>12,660,939<br>$<br>12,895,049<br>$<br>12,697,795<br>$<br>11,398,655<br>$<br>10,594,245<br>Reported<br>: Pre<br>-<br>provision net revenue to average assets<br>1<br>[a<br>÷<br>c]<br>1.16<br>%<br>1.04<br>%<br>0.95<br>%<br>1.20<br>%<br>1.54<br>%<br>Adjusted<br>: Pre<br>-<br>provision net revenue to average assets<br>1<br>[b<br>÷<br>c]<br>1.26<br>%<br>1.27<br>%<br>1.23<br>%<br>1.32<br>%<br>1.64<br>%<br>1<br>Annualized measure.
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32<br>32<br>Ticker: BUSE<br>Non<br>-<br>GAAP Financial Information<br>Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Return on Average Assets,<br>Return on Average Tangible Common Equity, and Adjusted Return on Average Tangible Common Equity<br>(dollars in thousands, except per share amounts)<br>Three Months Ended<br>March<br>31,<br>December<br>31,<br>September<br>30,<br>June<br>30,<br>March<br>31,<br>2022<br>2021<br>2021<br>2021<br>2021<br>NET INCOME ADJUSTED FOR NON<br>-<br>OPERATING ITEMS<br>Net income<br>[a]<br>$<br>28,439<br>$<br>29,926<br>$<br>25,941<br>$<br>29,766<br>$<br>37,816<br>Non<br>-<br>GAAP adjustments:<br>Acquisition expenses:<br>Salaries, wages, and employee benefits<br>587<br>1,760<br>4,462<br>1,125<br>—<br>Data processing<br>214<br>143<br>3,182<br>368<br>7<br>Professional fees, occupancy, and other<br>34<br>290<br>776<br>1,220<br>313<br>Other restructuring expenses:<br>Salaries, wages, and employee benefits<br>—<br>215<br>257<br>—<br>—<br>Lease or fixed asset impairment<br>—<br>3,227<br>—<br>—<br>—<br>Professional fees, occupancy, and other<br>—<br>6<br>—<br>—<br>—<br>Related tax benefit<br>(170)<br>(1,290)<br>(1,773)<br>(558)<br>(71)<br>Adjusted net income<br>[b]<br>$<br>29,104<br>$<br>34,277<br>$<br>32,845<br>$<br>31,921<br>$<br>38,065<br>DILUTED EARNINGS PER SHARE<br>Dilutive average common shares outstanding<br>[c]<br>56,194,946<br>56,413,026<br>56,832,518<br>55,730,883<br>55,035,806<br>Reported<br>: Diluted earnings per share<br>[a<br>÷<br>c]<br>$<br>0.51<br>$<br>0.53<br>$<br>0.46<br>$<br>0.53<br>$<br>0.69<br>Adjusted<br>: Diluted earnings per share<br>[b<br>÷<br>c]<br>$<br>0.52<br>$<br>0.61<br>$<br>0.58<br>$<br>0.57<br>$<br>0.69<br>RETURN ON AVERAGE ASSETS<br>Net income, annualized<br>[d]<br>$<br>115,336<br>$<br>118,728<br>$<br>102,918<br>$<br>119,391<br>$<br>153,365<br>Adjusted net income, annualized<br>[e]<br>$<br>118,033<br>$<br>135,990<br>$<br>130,309<br>$<br>128,035<br>$<br>154,375<br>Average total assets<br>[f]<br>$<br>12,660,939<br>$<br>12,895,049<br>$<br>12,697,795<br>$<br>11,398,655<br>$<br>10,594,245<br>Reported<br>: Return on average assets<br>1<br>[d<br>÷<br>f]<br>0.91<br>%<br>0.92<br>%<br>0.81<br>%<br>1.05<br>%<br>1.45<br>%<br>Adjusted<br>: Return on average assets<br>1<br>[e<br>÷<br>f]<br>0.93<br>%<br>1.05<br>%<br>1.03<br>%<br>1.12<br>%<br>1.46<br>%<br>RETURN ON AVERAGE TANGIBLE COMMON EQUITY<br>Average common equity<br>$<br>1,281,535<br>$<br>1,328,692<br>$<br>1,351,416<br>$<br>1,342,771<br>$<br>1,275,694<br>Average goodwill and other intangible assets, net<br>(374,811)<br>(377,825)<br>(380,885)<br>(368,709)<br>(362,693)<br>Average tangible common equity<br>[g]<br>$<br>906,724<br>$<br>950,867<br>$<br>970,531<br>$<br>974,062<br>$<br>913,001<br>Reported:<br>Return on average tangible common equity<br>1<br>[d<br>÷<br>g]<br>12.72<br>%<br>12.49<br>%<br>10.60<br>%<br>12.26<br>%<br>16.80<br>%<br>Adjusted:<br>Return on average tangible common equity<br>1<br>[e<br>÷<br>g]<br>13.02<br>%<br>14.30<br>%<br>13.43<br>%<br>13.14<br>%<br>16.91<br>%<br>1<br>Annualized measure.
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33<br>33<br>Ticker: BUSE<br>Non<br>-<br>GAAP Financial Information<br>Adjusted Net Interest Margin<br>(dollars in thousands)<br>Three Months Ended<br>March<br>31,<br>December<br>31,<br>September<br>30,<br>June<br>30,<br>March<br>31,<br>2022<br>2021<br>2021<br>2021<br>2021<br>Net interest income<br>$<br>70,056<br>$<br>70,508<br>$<br>70,755<br>$<br>64,542<br>$<br>64,893<br>Non<br>-<br>GAAP adjustments:<br>Tax<br>-<br>equivalent adjustment<br>546<br>577<br>598<br>579<br>601<br>Tax equivalent net interest income<br>70,602<br>71,085<br>71,353<br>65,121<br>65,494<br>Purchase accounting accretion related to business combinations<br>(1,159)<br>(1,469)<br>(1,799)<br>(1,726)<br>(2,157)<br>Adjusted net interest income<br>$<br>69,443<br>$<br>69,616<br>$<br>69,554<br>$<br>63,395<br>$<br>63,337<br>Tax equivalent net interest income, annualized<br>[a]<br>$<br>286,330<br>$<br>282,022<br>$<br>283,085<br>$<br>261,200<br>$<br>265,615<br>Adjusted net interest income, annualized<br>[b]<br>$<br>281,630<br>$<br>276,194<br>275,948<br>254,277<br>$<br>256,867<br>Average interest<br>-<br>earning assets<br>[c]<br>$<br>11,703,947<br>$<br>11,947,653<br>11,730,637<br>10,448,417<br>$<br>9,752,294<br>Reported:<br>Net interest margin<br>1<br>[a<br>÷<br>c]<br>2.45%<br>2.36%<br>2.41%<br>2.50%<br>2.72%<br>Adjusted:<br>Net interest margin<br>1<br>[b<br>÷<br>c]<br>2.41%<br>2.31%<br>2.35%<br>2.43%<br>2.63%<br>1<br>Annualized measure.
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34<br>34<br>Ticker: BUSE<br>Non<br>-<br>GAAP Financial Information<br>Adjusted Noninterest Expense, Core Adjusted Expense, Efficiency Ratio, Adjusted Efficiency Ratio, and Adjusted Core Efficienc<br>y R<br>atio<br>(dollars in thousands)<br>Three Months Ended<br>March<br>31,<br>December<br>31,<br>September<br>30,<br>June<br>30,<br>March<br>31,<br>2022<br>2021<br>2021<br>2021<br>2021<br>Net interest income<br>$<br>70,056<br>$<br>70,508<br>$<br>70,755<br>$<br>64,542<br>$<br>64,893<br>Non<br>-<br>GAAP adjustments:<br>Tax<br>-<br>equivalent adjustment<br>546<br>577<br>598<br>579<br>601<br>Tax equivalent net interest income<br>70,602<br>71,085<br>71,353<br>65,121<br>65,494<br>Total noninterest income<br>35,772<br>35,089<br>33,259<br>33,011<br>31,445<br>Non<br>-<br>GAAP adjustments:<br>Net security (gains) losses<br>614<br>(474)<br>(57)<br>(898)<br>(1,641)<br>Noninterest income excluding net security gains and losses<br>36,386<br>34,615<br>33,202<br>32,113<br>29,804<br>Tax equivalent net interest income plus noninterest income excluding net security gains and losses<br>[a]<br>$<br>106,988<br>$<br>105,700<br>$<br>104,555<br>$<br>97,234<br>$<br>95,298<br>Total noninterest expense<br>$<br>70,376<br>$<br>71,169<br>$<br>73,487<br>$<br>62,625<br>$<br>54,499<br>Non<br>-<br>GAAP adjustments:<br>Amortization of intangible assets<br>[b]<br>(3,011)<br>(3,074)<br>(3,149)<br>(2,650)<br>(2,401)<br>Non<br>-<br>interest expense excluding amortization of intangible assets<br>[c]<br>67,365<br>68,095<br>70,338<br>59,975<br>52,098<br>Non<br>-<br>operating adjustments:<br>Salaries, wages, and employee benefits<br>(587)<br>(1,975)<br>(4,719)<br>(1,125)<br>—<br>Data processing<br>(214)<br>(143)<br>(3,182)<br>(368)<br>(7)<br>Impairment, professional fees, occupancy, and other<br>(34)<br>(3,523)<br>(776)<br>(1,220)<br>(313)<br>Adjusted noninterest expense<br>[d]<br>66,530<br>62,454<br>61,661<br>57,262<br>$<br>51,778<br>Provision for unfunded commitments<br>(1,112)<br>(294)<br>978<br>496<br>(406)<br>Amortization of New Markets Tax Credit<br>(1,341)<br>(1,255)<br>(1,240)<br>(1,239)<br>(1,829)<br>Core adjusted expense<br>[e]<br>$<br>64,077<br>$<br>60,905<br>$<br>61,399<br>$<br>56,519<br>$<br>49,543<br>Noninterest expense, excluding non<br>-<br>operating adjustments<br>[d<br>-<br>b]<br>$<br>69,541<br>$<br>65,528<br>$<br>64,810<br>$<br>59,912<br>$<br>54,179<br>Reported:<br>Efficiency ratio<br>[c<br>÷<br>a]<br>62.97<br>%<br>64.42<br>%<br>67.27<br>%<br>61.68<br>%<br>54.67<br>%<br>Adjusted<br>: Efficiency ratio<br>[d<br>÷<br>a]<br>62.18<br>%<br>59.09<br>%<br>58.97<br>%<br>58.89<br>%<br>54.33<br>%<br>Adjusted:<br>Core efficiency ratio<br>[e<br>÷<br>a]<br>59.89<br>%<br>57.62<br>%<br>58.72<br>%<br>58.13<br>%<br>51.99<br>%
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35<br>35<br>Ticker: BUSE<br>Non<br>-<br>GAAP Financial Information<br>Tangible Book Value Per Common Share<br>(dollars in thousands, except per share amounts)<br>As of<br>March<br>31,<br>December<br>31,<br>September<br>30,<br>June<br>30,<br>March<br>31,<br>2022<br>2021<br>2021<br>2021<br>2021<br>Total stockholders’ equity<br>$<br>1,218,025<br>$<br>1,319,112<br>$<br>1,333,076<br>$<br>1,345,691<br>$<br>1,265,822<br>Goodwill and other intangible assets, net<br>(372,913)<br>(375,924)<br>(378,891)<br>(381,795)<br>(361,120)<br>Tangible book value<br>[a]<br>$<br>845,112<br>$<br>943,188<br>$<br>954,185<br>$<br>963,896<br>$<br>904,702<br>Ending number of common shares outstanding<br>[b]<br>55,278,785<br>55,434,910<br>55,826,984<br>56,330,616<br>54,345,379<br>Tangible book value per common share<br>[a<br>÷<br>b]<br>$<br>15.29<br>$<br>17.01<br>$<br>17.09<br>$<br>17.11<br>$<br>16.65<br>Tangible Common Equity and Tangible Common Equity to Tangible Assets<br>(dollars in thousands)<br>As of<br>March<br>31,<br>December<br>31,<br>September<br>30,<br>June<br>30,<br>March<br>31,<br>2022<br>2021<br>2021<br>2021<br>2021<br>Total assets<br>$<br>12,567,509<br>$<br>12,859,689<br>$<br>12,899,330<br>$<br>12,415,449<br>$<br>10,759,563<br>Non<br>-<br>GAAP adjustments:<br>Goodwill and other intangible assets, net<br>(372,913)<br>(375,924)<br>(378,891)<br>(381,795)<br>(361,120)<br>Tax effect of other intangible assets<br>1<br>10,456<br>16,254<br>17,115<br>17,997<br>13,883<br>Tangible assets<br>[a]<br>$<br>12,205,052<br>$<br>12,500,019<br>$<br>12,537,554<br>$<br>12,051,651<br>$<br>10,412,326<br>Total stockholders’ equity<br>$<br>1,218,025<br>$<br>1,319,112<br>$<br>1,333,076<br>$<br>1,345,691<br>$<br>1,265,822<br>Non<br>-<br>GAAP adjustments:<br>Goodwill and other intangible assets, net<br>(372,913)<br>(375,924)<br>(378,891)<br>(381,795)<br>(361,120)<br>Tax effect of other intangible assets<br>1<br>10,456<br>16,254<br>17,115<br>17,997<br>13,883<br>Tangible common equity<br>[b]<br>$<br>855,568<br>$<br>959,442<br>$<br>971,300<br>$<br>981,893<br>$<br>918,585<br>Tangible common equity to tangible assets<br>2<br>[b<br>÷<br>a]<br>7.01<br>%<br>7.68<br>%<br>7.75<br>%<br>8.15<br>%<br>8.82<br>%<br>1<br>Net of estimated deferred tax liability.<br>2<br>Tax<br>-<br>effected measure.
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36<br>36<br>Ticker: BUSE<br>Non<br>-<br>GAAP Financial Information<br>Core Loans, Core Loans to Portfolio Loans,<br>Core Deposits, Core Deposits to Total Deposits, and Core Loans to Core Deposits<br>(dollars in thousands)<br>As of<br>March<br>31,<br>December<br>31,<br>September<br>30,<br>June<br>30,<br>March<br>31,<br>2022<br>2021<br>2021<br>2021<br>2021<br>Portfolio loans<br>[a]<br>$<br>7,272,873<br>$<br>7,188,998<br>$<br>7,150,635<br>$<br>7,185,650<br>$<br>6,779,300<br>Non<br>-<br>GAAP adjustments:<br>PPP Loans amortized cost<br>(31,769)<br>(74,958)<br>(178,231)<br>(390,395)<br>(522,104)<br>Core loans<br>[b]<br>$<br>7,241,104<br>$<br>7,114,040<br>$<br>6,972,404<br>$<br>6,795,255<br>$<br>6,257,196<br>Total deposits<br>[c]<br>$<br>10,591,836<br>$<br>10,768,577<br>$<br>10,817,867<br>$<br>10,337,117<br>$<br>8,873,847<br>Non<br>-<br>GAAP adjustments:<br>Brokered transaction accounts<br>(2,002)<br>(2,248)<br>(2,002)<br>(2,002)<br>(2,699)<br>Time deposits of $250,000 or more<br>(139,245)<br>(137,449)<br>(156,419)<br>(129,026)<br>(155,401)<br>Core deposits<br>[d]<br>$<br>10,450,589<br>$<br>10,628,880<br>$<br>10,659,446<br>$<br>10,206,089<br>$<br>8,715,747<br>RATIOS<br>Core loans to portfolio loans<br>[b<br>÷<br>a]<br>99.56<br>%<br>98.96<br>%<br>97.51<br>%<br>94.57<br>%<br>92.30<br>%<br>Core deposits to total deposits<br>[d<br>÷<br>c]<br>98.67<br>%<br>98.70<br>%<br>98.54<br>%<br>98.73<br>%<br>98.22<br>%<br>Core loans to core deposits<br>[b<br>÷<br>d]<br>69.29<br>%<br>66.93<br>%<br>65.41<br>%<br>66.58<br>%<br>71.79<br>%
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