8-K
First Busey Corp /Nv/ (BUSE)
8-K
2022-05-20
For: 2022-05-20
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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): May 20, 2022
First
Busey Corporation
(Exact name of registrant as specified in its charter)
| Nevada | 0-15950 | 37-1078406 |
|---|---|---|
| (State or other jurisdiction of<br><br> <br>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 | The 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 7.01. | Regulation FD Disclosure. |
|---|
On May 20, 2022, First Busey Corporation (the “Company”) is filing an Investor Presentation, which is attached as Exhibit 99.1 to this report and incorporated herein by reference. The Investor Presentation will also be available on the Company’s website at ir.busey.com. The information included in the presentation provides an overview of the Company’s recent operating performance, financial condition and business strategy. The Company intends to use this presentation in connection with discussions between the Company’s executives and certain investors and potential investors in the Company.
The information in Item7.01 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being “furnished” and will not, exceptto the extent required by applicable law or regulation, be deemed “filed” by the Company for purposes of Section 18 ofthe Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section,nor will any of such information or exhibit be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended,or the Exchange Act.
| Item 9.01. | Financial Statements and Exhibits. |
|---|
(d) Exhibits.
| 99.1 | Investor Presentation |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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: May 20, 2022 | First Busey Corporation |
|---|---|
| By: | /s/ Jeffrey<br> D. Jones |
| --- | --- |
| Name: | Jeffrey D. Jones |
| Title: | Chief Financial Officer |
Exhibit 99.1
| May 2022<br>INVESTOR<br>PRESENTATION | |
|---|---|
| 2 2 Ticker: BUSE<br>Special Note Concerning Forward-Looking Statements<br>Statements made in this document, other than those concerning historical financial information, may be considered forward-<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-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,” “plan,”<br>“intend,” “estimate,” “may,” “will,” “would,” “could,” “should,” or other similar expressions. Additionally, all statements in this<br>document, including forward-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 beyond<br>the Company’s ability to control or predict, could cause actual results to differ materially from those in the Company’s forward-<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 any<br>future terrorist threats or attacks, widespread disease or pandemics (including the Coronavirus Disease 2019 pandemic), or other<br>adverse external events that could cause economic deterioration or instability in credit markets (including Russia’s invasion 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 Company’s<br>assets (including the impact of The London Inter-bank Offered Rate phase-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 maintain<br>secure and reliable electronic systems; (viii) the loss of key executives or associates; (ix) changes in consumer spending; (x)<br>unexpected results of current and/or future acquisitions, which may include failure to realize the anticipated benefits of any<br>acquisition and the possibility that transaction costs may be greater than anticipated; (xi) unexpected outcomes of existing 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-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 the Securities<br>and Exchange Commission. | |
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| 3 3 Ticker: BUSE<br>Non-GAAP Financial Information<br>This document contains certain financial information determined by methods other than U.S. Generally Accepted Accounting<br>Principles (“GAAP”). Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of the<br>Company’s performance and in making business decisions, as well as comparison to the Company’s peers. The Company believes<br>the adjusted measures are useful for investors and management to understand the effects of certain non-recurring noninterest<br>items and provide additional perspective on the Company’s performance over time.<br>A reconciliation to what management believes to be the most directly comparable GAAP financial measures—specifically, net<br>interest income, total noninterest income, net security gains and losses, and total noninterest expense in the case of pre-<br>provision net revenue, adjusted pre-provision net revenue, pre-provision net revenue to average assets, and adjusted pre-<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>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 tangible 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 case of<br>core deposits and core deposits to total deposits; and portfolio loans and total deposits in the case of core loans to core deposits—<br>appears below.<br>These non-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-GAAP performance<br>measures that may be presented by other companies. Tax effected numbers included in these non-GAAP disclosures are based<br>on estimated statutory rates or effective rates as appropriate. | |
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| 4 4 Ticker: BUSE<br>Table of Contents<br>Overview of First Busey Corporation (BUSE) 5<br>Investment Highlights 6<br>Experienced Management Team 7<br>Strong Regional Operating Model 8<br>Sizable Business Lines Provide for Innovative Solutions 9<br>High Quality & Growing Loan Portfolio 10<br>Top Tier Core Deposit Franchise 11<br>Fully Integrated Wealth Management Platform 12<br>FirsTech Growth and Expansion of Services 13<br>Diversified and Significant Sources of Fee Income 14<br>Quarterly Earnings Review 15<br>Earnings Performance 16<br>Net Interest Margin 17<br>Interest Rate Risk Management & Sensitivity 18<br>Focused Control on Expenses 19<br>Fortress Balance Sheet 20<br>Robust Capital Foundation 21<br>Balanced, Low-Risk, Short-Duration Investment Portfolio 22<br>Reserve Supports Credit & Growth Profile 23<br>Pristine Credit Quality 24<br>High Quality Loan Portfolio: C&I 25<br>High Quality Loan Portfolio: CRE 26<br>Appendix: Additional Detail, Use of Non-GAAP Financial Information 27 | |
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| 5 5 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-GAAP calculation, see Appendix<br>Among the Best<br>+ 150+ year old financial institution<br>headquartered in CHAMPAIGN, IL<br>Regional operating model serving 4 regions:<br>NORTHERN, CENTRAL, GATEWAY, FLORIDA<br>Commercial Banking<br>Payment Tech Solutions Wealth Management<br>$ in millions 2020 2021 Q1 2022<br>Total Assets $10,544 $12,860 $12,568<br>Total Loans (Exc. HFS) 6,814 7,189 7,273<br>Total Deposits 8,678 10,769 10,592<br>Total Equity 1,270 1,319 1,218<br>NPA/Assets 0.27% 0.17% 0.13%<br>NIM 3.03% 2.49% 2.45%<br>Adj. PPNR ROAA (1 ) 1.75% 1.35% 1.26%<br>Adj. ROAA (1 ) 1.06% 1.15% 0.93%<br>Adj. ROATCE (1 ) 12.47% 14.40% 13.02% | |
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| 6 6 Ticker: BUSE<br>Investment Highlights<br>▪ 58 branches across four states: Illinois, Missouri, Indiana, and Florida<br>▪ Premier commercial bank, wealth management, and payment technology solutions for<br>individuals and businesses<br>▪ Attractive core deposit to total deposit ratio (98.7%)(1) and low cost of non-time deposits<br>(4 bps) in 1Q22<br>▪ Substantial investments in technology enterprise-wide and next generation leadership talent<br>Attractive Franchise that<br>Provides Innovative<br>Financial Solutions<br>(1) Non-GAAP calculation, see Appendix; Core deposits include non-brokered transaction accounts, money market deposit accounts, and time deposits of $250,000 or less (2) Non-GAAP calculation, see Appendix (3) Non-GAAP;<br>FirsTech segment, excludes intracompany eliminations and consolidations (4) Revenue consists of net interest income plus noninterest income, excluding security gains and losses (5) Based on BUSE closing stock price on 5/19/22<br>Attractive<br>Profitability and Returns<br>▪ Adjusted ROAA & ROATCE 0.93%(2) and 13.02%(2) 1Q22<br>▪ Adjusted Efficiency Ratio 62.2%(2) 1Q22<br>▪ Adjusted diluted EPS $0.52(2) 1Q22<br>▪ Quarterly dividend of $0.23 (4.22% yield)(5)<br>Sound Growth Strategy<br>Driven by<br>Regional Operating Model<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>▪ Quarter-over-quarter core loan(2) growth (ex-PPP) of $127 million (1.8% QoQ growth) and<br>year-over-year core loan growth (ex-PPP, ex-GSB) of $588 million (9.4% YoY growth) as of<br>1Q2022<br>▪ Combined Wealth Management and FirsTech YoY revenue(3) growth of 21.4%<br>▪ Efficient and right-sized branch network (average deposits per branch of $183 million)<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>▪ Significant revenue derived from diverse and complementary fee income sources<br>▪ Noninterest income / revenue(4) of 34% for 1Q22<br>▪ Wealth management and payment technology solutions account for 58% of noninterest<br>income in 1Q22<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-capitalized minimums | |
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| 7 7 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-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-Chief Banking Officer<br>Joined Busey in 2011 and has over 15 years of experience in the banking industry. Before being named Co-Chief Banking<br>Officer in 2020, Mr. Jorstad served as Regional President for Commercial Banking—overseeing business banking efforts,<br>including Agricultural, Commercial, Construction and Real Estate financing.<br>Chip Jorstad<br>EVP & Co-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-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-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-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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| 8 8 Ticker: BUSE<br>Banking<br>Centers:<br>3<br>Deposits:<br>$442.5MM<br>Avg. Deposits<br>Per Branch:<br>$147.5MM<br>2022-27 Pop.<br>Growth:<br>5.9% versus<br>U.S. avg. 3.2%<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 Gateway<br>Central Florida<br>Note: Franchise data as of 1Q2022<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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| 9 9 Ticker: BUSE<br>(1) LTM total payments processed as of 1Q2022 (2) Busey Bank segment, excluding Wealth Management & FirsTech; excludes intracompany eliminations and consolidations as of 1Q2022 (3) Wealth Management segment as of<br>1Q2022 (4) FirsTech segment; Non-GAAP calculation, excludes intracompany eliminations and consolidations as of 1Q2022 (5) Consolidated; Non-GAAP calculation as of 1Q2022, 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 (1)<br>Diversified financial holding company with comprehensive and<br>innovative financial solutions for individuals and businesses<br>Sizable Business Lines Provide for Innovative Solutions<br>Full 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 (3)<br>$20.3<br>Million<br>LTM Revenue (4)<br>LTM Revenue (2)<br>13.0%<br>MRQ<br>47.6%<br>MRQ<br>Adj. ROATCE (5)<br>PT Margin<br>16.3%<br>YoY<br>Rev. Growth | |
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| 1010 Ticker: BUSE<br>$1,545 $1,664 $1,754 $1,869 $1,875<br>$2,913 $2,920 $3,069 $3,120 $3,135<br>$423 $501 $431 $386 $445 $1,376<br>$1,710 $1,719 $1,739 $1,786<br>$6,257<br>$6,795 $6,972 $7,114 $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>$8,000,000<br>1Q21 2Q21 3Q21 4Q21 1Q22<br>C&I CRE Construction Retail Real Estate & Other<br>$ in millions<br>$1,570 $1,659 $1,748 $1,701 $1,669<br>$329<br>$376 $375 $386 $354<br>$1,899<br>$2,035 $2,123 $2,087 $2,023<br>54% 55%<br>56%<br>53% 53%<br>$1<br>$501<br>$1,001<br>$1,501<br>$2,001<br>$2,501<br>1Q21 2Q21 3Q21 4Q21 1Q22<br>Retail Commercial % Utilized (total)<br>$ in millions<br>High Quality & Growing Loan Portfolio<br>(1) Based on loan origination (2) Busey loans ex-PPP growth and ex-GSB acquisition (3) Excludes credit card and overdraft protection and includes tranche loan commitments and associated sub notes<br>Loan Portfolio Composition – Q1 2022 Loan Portfolio Regional Segmentation – Q1 2022 (1)<br>Ex-PPP Loans Trends Funded Draws & Line Utilization Rate (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>LTM Core Growth(2)<br>9.4%<br>LTM Commercial Growth(2)<br>9.5% | |
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| 11 11 Ticker: BUSE<br>Top Tier Core Deposit Franchise<br>Deposit Portfolio Composition – Q1 2022<br>Historical Cost of Deposits, 2015 - Q1 2022 (1)<br>Total Deposits & Loan to Deposit Ratio<br>Core Deposits (2) / Total Deposits<br>(1) Quarterly effective fed funds per FRED, avg during quarter, not seasonally adjusted (2) Non-GAAP calculation, see Appendix; Core deposits include non-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>C k<br><br><br><br><br><br>$8,874<br>$10,337<br>$10,818 $10,769 $10,592<br>76.4%<br>69.5% 66.1% 66.8% 68.7%<br>2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1<br> Total Deposits Loan to Deposit Ratio<br>$ in millions<br>$8,716<br>$10,206 $10,659 $10,629 $10,451<br>98.2% 98.7% 98.5% 98.7% 98.7%<br>2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1<br> Core Deposits Core/Total Deposits<br>$ 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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| 1212 Ticker: BUSE<br>Fully Integrated Wealth Management Platform<br>Six Distinct Teams<br>Our wealth management business provides effective and high-touch solutions for<br>high-net-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>▪ Concierge banking with one point of<br>contact<br>▪ Complete and simplified coordination<br>of all banking needs<br>▪ Tax-advantaged retirement savings<br>maximization<br>▪ Goal tracking, projections &<br>stress testing<br>▪ Deduction maximization & tax-<br>advantaged savings strategies<br>▪ 1040 & 1041 preparation by<br>in-house team<br>▪ Philanthropic advisory<br>▪ Tax-efficient wealth transfer & asset<br>protection<br>▪ Institutional approach<br>▪ Corporate retirement plan advisory<br>▪ Consistent track record of<br>outperformance<br>▪ Risk-return optimization<br>▪ Specialized strategies for tax efficiency | |
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| 1313 Ticker: BUSE<br>Multi-Layered<br>Payment Technology Solutions Platform<br>FirsTech Growth and Expansion of Services<br>Payment Technology Solutions Platform<br>▪ FirsTech’s payments platform provides custom<br>payment technology solutions through a<br>comprehensive suite of capabilities<br>▪ Mobile bill pay, walk-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>▪ Highest quarterly revenue(1) in the history of<br>FirsTech ($5.4 million) in 1Q22<br>▪ Rolled out API-based payments platform to<br>existing and new customers<br>▪ Launched new one-time payments platform<br>within the Busey Bank environment<br>Key Initiatives<br>▪ Continue to foster and grow relationships with<br>current clients utilizing the payments platform<br>▪ Expand existing and new product offerings with<br>current and future clients, including the BaaS<br>solution<br>▪ Enhance existing products and services with<br>new technology that will expand FirsTech’s<br>footprint in the fintech area<br>(1) Non-GAAP, revenue equates to all revenue sources tied to FirsTech and excludes intracompany eliminations and consolidations<br>Revenue Growth (1)<br>3/31/21 LTM 3/31/22 LTM<br>$20.3<br>million<br>+ 16.3%<br>$17.4<br>million | |
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| 1414 Ticker: BUSE<br>▪ Resilient, varied, and complimentary sources of fee<br>income provide revenue diversification with<br>heightened value amidst cycle of margin<br>compression<br>▪ Noninterest income represented 34.2% of revenue<br>(ex-securities losses) in 1Q22<br>▪ Key businesses of wealth management and<br>payment technology solutions contributed 57% of<br>noninterest income (ex-securities losses) in 1Q22<br>▪ YoY increase in fee income broad-based with<br>increases in wealth management, payment<br>technology solutions, and fees for customer services<br>Diversified and Significant Sources of Fee Income<br>Noninterest Income / Total Revenue (1)<br>YoY growth of Wealth Management Fees & Payment Tech Solutions: 21.2%<br>(1) Includes net security gains and losses<br>Sources of Noninterest Income – Q12022<br>$ in thousands<br>Noninterest Income Details 3/31/21 3/31/22 YOY Change<br>Wealth Management Fees $12,584 $15,779 25.4%<br>Fees for Customer Services $8,037 $8,907 10.8%<br>Payment Technology Solutions $4,621 $5,077 9.9%<br>Mortgage Revenue $2,666 $975 -63.4%<br>Income on Bank Owned Life Insurance $964 $884 -8.3%<br>Net Security Gains (Losses) $1,641 -$614 -137.4%<br>Other Noninterest Income $932 $4,764 411.2%<br>Total Noninterest Income $31,445 $35,772 13.8%<br>▪ Pie Chart excludes<br>net securities losses | |
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| 15 15 Ticker: BUSE<br>▪ Net interest income was $70.1 million in 1Q22 vs. $70.5 million in 4Q21 and $64.9 million in 1Q21<br>▪ $1.1 million less net interest income QoQ due to two fewer days in 1Q22 than 4Q21<br>▪ Net interest margin was 2.45% in 1Q22, an increase of 9 bps vs. 2.36% in 4Q21<br>▪ Adjusted net interest margin (1) (ex-purchase accounting accretion) was 2.41% in 4Q22, an increase of<br>10 bps vs. 2.31% in 4Q21<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>▪ Noninterest income (ex-securities losses) of $36.4 million in 1Q22, representing 34% of revenue<br>▪ Wealth management fees of $15.8 million in 1Q22, up 15% QoQ and up 25% YoY<br>▪ Payment technology solutions revenue of $5.1 million in 1Q22, up 11% QoQ and up 10% YoY<br>▪ Fees for customer services of $8.9 million in 1Q22, down from $9.7 million in 4Q21, and up 11% YoY<br>▪ Adjusted noninterest expense (1) (ex-amortization of intangibles, one-time acquisition and restructuring<br>related items) of $66.5 million in 1Q21, resulting in a 62.2% adjusted efficiency ratio (1)<br>▪ Core adjusted noninterest expense (1) of $64.1 million (ex-amortization of intangible assets, unfunded<br>commitment provision, NMTC amortization, and one-time items) in 1Q22, equating to 59.9% core<br>adjusted efficiency ratio (1)<br>▪ Adjusted net income of $29.1 million or $0.52 per diluted share (1)<br>▪ Adjusted pre-provision net revenue of $39.4 million (1.26% PPNR ROAA) (1)<br>▪ 0.93% Adjusted ROAA and 13.02% Adjusted ROATCE (1)<br>Earnings<br>Noninterest<br>Income<br>Net Interest<br>Income<br>Provision<br>▪ $0.3 million negative loan loss provision expense (reserve release) in 1Q22<br>▪ $1.1 million provision for unfunded commitments (captured in other noninterest expense) in 1Q22<br>▪ Net recovery of $0.6 million in 1Q22<br>(1) Non-GAAP as of 1Q22, see Appendix<br>Quarterly Earnings Review | |
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| 1616 Ticker: BUSE<br>$42.8<br>$37.5 $39.4 $41.1 $39.4<br>1.64%<br>1.32% 1.23% 1.27% 1.26%<br>2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1<br> Adj. PPNR Adj. PPNR / Avg Assets<br>$ in millions<br>Earnings Performance<br>(1) Non-GAAP calculation, see Appendix (2) Historical key rates per quarterly Stifel dispatch<br>Adjusted ROAA & ROATCE (1)<br>Adjusted Pre-Provision Net Revenue / Avg. Assets (1)<br>Adjusted Net Income & Earnings Per Share (1)<br>$38.1<br>$31.9 $32.8 $34.3<br>$29.1 $0.69<br>$0.57 $0.58 $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>$38.0<br>2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1<br> Adj. Net Income Adj. Earnings Per Share<br>$ in millions 16.9%<br>13.1% 13.4%<br>14.3%<br>13.0% 1.46%<br>1.12%<br>1.03% 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 2021 Q2 2021 Q3 2021 Q4 2022 Q1<br>Adj. ROATCE Adj. ROAA<br>Historical Key Rates (2)<br>0.12% 0.10% 0.08% 0.10%<br>0.46% 0.16% 0.25% 0.30%<br>0.73%<br>2.28%<br>0.92% 0.87%<br>1.01%<br>1.26%<br>2.42%<br>1.70%<br>1.45% 1.53% 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 6/30/21 9/30/21 12/31/21 3/31/22<br>1m LIBOR 2-yr UST 5-yr UST 10-Yr UST | |
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| 17 17 Ticker: BUSE<br>$58.6 $59.1<br>$64.4 $66.4 $68.1<br>$2.2 $1.7<br>$1.8<br>$1.5<br>$1.2<br>$4.8 $4.3<br>$5.2 $3.3 $1.3<br>$65.5 $65.1<br>$71.4 $71.1 $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>$75.0<br>2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1<br>Net Interest Income Accretion PPP Income (Net fees + coupon)<br>$ 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>Net Interest Margin<br>Net Interest Margin Bridge<br>(1) Tax-equivalent adjusted amounts; Non-GAAP, see Appendix (2) Non-GAAP; Ex-PPP NIM removes the balance of PPP loans and associated income as well as the equivalent amount of self-funding noninterest bearing deposits<br>Factors contributing to 9 bps increase in NIM during 2022Q1<br>(-) RATE ROLL Existing loans amortize and paydown at higher rates than new<br>loan production, but difference continues to compress<br>(+) NEW LOAN VOLUME YIELDS Yields 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>(-) PPP INCOME 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>(-) ACCRETION Purchase accounting accretion recognition declined from $1.5<br>million to $1.2 million during 1Q22<br>(+) SECURITIES PORTFOLIO YIELD Increases in the securities portfolio<br>yield contributed 6 bps of NIM expansion<br>(+) FUNDING COSTS / CASH FLOW HEDGES 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 (1)<br>3.03%<br>2.77% 2.65% 2.57% 2.66%<br>0.33% 0.29% 0.25% 0.22% 0.22%<br>2.72%<br>2.50% 2.41% 2.36% 2.45%<br>0.09% 0.06% 0.06% 0.05% 0.04%<br>2.66%<br>2.45%<br>2.30% 2.28%<br>2.41%<br>2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1<br>Earning Assets Cost of Funds NIM Accretion Ex-PPP NIM(2)<br>NIM ex-PPP up 13 bps<br>vs. 4Q21 | |
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| 1818 Ticker: BUSE<br>▪ First Busey has an asset-liability committee, whose policy is to meet at least quarterly, to review current market conditions and<br>to structure the Consolidated Balance Sheets to optimize stability in net interest income in consideration of projected future<br>changes in interest rates. As interest rate changes do not impact all categories of assets and liabilities equally or simultaneously,<br>the asset-liability committee primarily relies on balance sheet and income simulation analysis to determine the potential impact<br>of changes in market interest rates on net interest income.<br>▪ In these standard simulation models, the balance sheet is<br>projected over a one-year and a two-year time horizon and<br>net interest income is calculated under current market rates<br>and assuming permanent instantaneous shifts of +/-100,<br>+200 and +300 basis points. Due to the current low interest<br>rate environment, a downward adjustment in federal fund<br>rates was not meaningful as of March 31, 2022.<br>▪ The model assumes immediate and sustained shifts in the<br>federal funds rate and other market rate indices and<br>corresponding shifts in other non-market rate indices based<br>on their historical changes relative to changes in the federal<br>funds rate and other market indices. Assets and liabilities are<br>assumed to remain constant as of the measurement date;<br>variable-rate assets and liabilities are repriced based on<br>repricing frequency; and prepayment speeds on loans are<br>projected for both declining and rising rate environments.<br>Interest Rate Risk Management & Sensitivity<br><br><br><br><br><br><br><br><br><br><br><br><br><br>( bps move in FF)<br><br>( bps move in FF)<br>Loan Repricing/Maturity<br>Segmentation<br>IB Non-Maturity Deposit Betas in<br>Last Tightening Cycle v. Current<br>ALCO Model<br>Annual % Change in<br>Net Interest Income | |
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| 1919 Ticker: BUSE<br>54.7<br>61.7<br>67.3<br>64.4<br>63.0<br>54.3<br>58.9 59.0 59.1<br>62.2<br>52.0<br>58.1 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 2021 Q2 2021 Q3 2021 Q4 2022 Q1<br> Reported Efficiency Ratio Adjusted Efficiency Ratio Core Adj. Efficiency Ratio<br>$54.5<br>$62.6<br>$73.5<br>$71.2 $70.4<br>$49.5<br>$56.5<br>$61.4 $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 2021 Q2 2021 Q3 2021 Q4 2022 Q1<br>Noninterest Exp. $54.5 $62.6 $73.5 $71.2 $70.4<br>Unfunded Provision $0.4 -$0.5 -$1.0 $0.3 $1.1<br>Acq./Restructuring Exp. $0.3 $2.7 $8.7 $5.6 $0.8<br>Intangible Amort. $2.4 $2.7 $3.1 $3.1 $3.0<br>NMTC Amort. $1.8 $1.2 $1.2 $1.3 $1.3<br>Core Adj. Exp. (1) $49.5 $56.5 $61.4 $60.9 $64.1<br>Noninterest Exp.<br>Core Adj. Exp. (1)<br>$ in millions<br>Focused Control on Expenses<br>(1) Non-GAAP, see Appendix<br>▪ Core adjusted expenses(1) 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>▪ Taking advantage of market dislocation to attract new<br>talent across our platform and balancing wage<br>inflation across our markets<br>▪ 1Q22 other noninterest expense included a<br>$0.6 million impairment of OREO that sold subsequent<br>to quarter-end<br>▪ Over the past 7 quarters, consolidated 33% of our<br>branch footprint<br>▪ Reduced count from 87 (proforma for GSB) to 58<br>▪ Increasing average deposits per branch from<br>$113 million at 9/30/20 to $183 million at 3/31/22<br>Noninterest Expense<br>Efficiency Ratio (1) Full-Time Equivalents (FTE) | |
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| 2020 Ticker: BUSE<br>▪ TCE/TA ratio of 7.01% at 3/31/22 (1)<br>▪ Capital ratios significantly in excess of well-capitalized minimums<br>▪ Total RBC of 15.8% and CET1 ratio of 11.9% at 3/31/22 (2)<br>▪ TBV per share of $15.29 at 3/31/22 (1)<br>▪ Diversified portfolio, conservatively underwritten with low levels of concentration<br>▪ Non-performing (0.13% of total assets) and classified assets (7.2% of capital) both at<br>historically low levels at 3/31/22<br>▪ Reserves remain well above initial Day 1 CECL estimate of 1.06% → ACL/Loans: 1.22% (3)<br>ACL/NPLs: 695.41% at 3/31/22<br>▪ No remaining full-payment deferrals under COVID-related modification programs<br>▪ 100 / 300 Test: 34% C&D 205% CRE at 3/31/22<br>▪ Robust holding company and bank-level liquidity<br>▪ Strong core deposit franchise<br>▪ 68.7% loan-to-deposit ratio, 98.7% core deposits (4) at 3/31/22<br>▪ Borrowings accounted for approximately 5.4% of total funding at 3/31/22<br>▪ Substantial sources of off-balance sheet contingent funding ($3.7 billion) at 3/31/22<br>(1) Non-GAAP calculation, see Appendix (2) 1Q22 capital ratios are preliminary estimates (3) Excluding amortized cost of PPP loans (4) Non-GAAP calculation, see Appendix; Core deposits include non-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 as of<br>1Q 2022<br>Fortress Balance Sheet | |
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| 2121 Ticker: BUSE<br>$919<br>$982 $971 $959<br>$856 8.8%<br>8.2% 7.8% 7.7%<br>7.0%<br>12.8% 12.3% 12.0% 11.8% 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>$1,050<br>2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1<br> TCE TCE Ratio CET1 Ratio<br>$ in millions<br>$1,008<br>$1,062 $1,061 $1,070<br>$1,086<br>9.8% 9.6%<br>8.6% 8.5% 8.8%<br>4%<br>2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1<br> Tier 1 Capital Leverage Ratio Min Ratio<br>$ in millions<br>Robust Capital Foundation<br>(1) Non-GAAP calculation, see Appendix (2) 1Q22 capital ratios are preliminary estimates<br>...<br>Tangible Common Equity (1) & CET1 Ratios Total Capital Ratio (2)<br>Leverage Ratio (2) Consolidated Capital as of 3/31/22 (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 11.9% 12.8% 15.8%<br>Minimum Well Capitalized Ratio 6.5% 8.0% 10.0%<br>Amount of Capital $1,012 $1,086 $1,345<br>Well Capitalized Minimum $553 $681 $851<br>Excess Amount over Min $459 $405 $494 | |
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| 2222 Ticker: BUSE<br>$2,797<br>$3,461<br>$4,010 $4,027 $4,078<br>1.60%<br>1.40% 1.37% 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 2021 Q2 2021 Q3 2021 Q4 2022 Q1<br>Book Value Tax Equivalent Yield $ in millions<br>Balanced, Low-Risk, Short-Duration Investment Portfolio<br>▪ BUSE carried $976MM in held-to-maturity (HTM) securities<br>as of 3/31/22<br>▪ Transferred a portion of the portfolio comprised of<br>Agency RMBS & CMBS from available-for-sale (AFS)<br>to HTM during 1Q22<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>▪ After-tax net AFS unrealized loss position of $97.7 million<br>▪ Carrying value of investment portfolio is 31% of total assets<br>▪ Allowance for credit losses for investments is $0<br>▪ Projected remaining 2022 roll off cash flow (based on static<br>rates) of $405 million at ~1.85% yield<br>▪ 1Q22 new purchases of $275 million at avg yield of 2.36%<br>Deploying Excess Liquidity into Attractive Securities<br>All Mortgage-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>Investment Portfolio Composition – Q1 2022<br>Note: Financial data as of 1Q 2022 | |
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| 2323 Ticker: BUSE<br>Reserve Supports Credit & Growth Profile<br>Allowance / NPLs<br>Allowance / NPAs Allowance / Loans (ex-PPP)<br>▪ Reserve to loans of 1.22% (ex-PPP)<br>as of Q1 2022<br>▪ Day 1 CECL coverage was 1.06%<br>as of Q1 2022<br>▪ Non-performing loan balances have<br>continued to decline<br>▪ Reserves to NPLs now equal to 695%<br>as of Q1 2022<br>$5,568<br>$6,687<br>$6,368<br>$7,114 $7,241<br>0.91%<br>0.80%<br>1.59%<br>1.24% 1.22%<br>2018 YE 2019 YE 2020 YE 2021 YE 2022 Q1<br>Ex-PPP Loans Allowance/Ex-PPP Loans<br>$ 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>$40,000<br>2018 YE 2019 YE 2020 YE 2021 YE 2022 Q1<br> NPLs Allowance/NPLs<br>$ 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>$35,000<br>2018 YE 2019 YE 2020 YE 2021 YE 2022 Q1<br> NPAs Allowance/NPAs<br>$ in thousands | |
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| 2424 Ticker: BUSE<br>Pristine Credit Quality<br>▪ Conservative underwriting continues to result in pristine<br>credit quality performance<br>▪ Strong portfolio management that identifies early warning<br>indicators and includes proactive engagement of the special<br>assets group early in the credit review process<br>▪ Non-performing asset, classified asset, and net<br>charge-off ratios have declined to historically low levels<br>▪ NPAs/Assets of 0.13% at 3/31/22<br>▪ Non-performing assets at 3/31/22 included a<br>$2.0 million OREO property, the sale of which closed<br>subsequent to quarter-end<br>▪ Net recovery of $0.6 million in 1Q22<br>▪ Net charge-offs over the LTM total $1.35 million, which<br>equates to less than 0.02% of 1Q22 avg loans<br>(1) Capital calculated as Busey Bank Tier 1 Capital + Allowance for credit losses<br>NPAs / Assets<br>Classifieds / Capital (1) NCOs / Average Loans<br>$9,696<br>$10,544<br>$12,860 $12,568<br>0.34%<br>0.27%<br>0.17% 0.13%<br>2019 YE 2020 YE 2021 YE 2022 Q1<br>Assets %NPAs/Assets<br>$ in millions<br>$1,099 $1,155<br>$1,329 $1,336<br>9.7%<br>8.5%<br>6.9% 7.2%<br>2019 YE 2020 YE 2021 YE 2022 Q1<br> Capital Classified/Capital<br>$ in millions<br>$6,470<br>$7,007 $6,970 $7,161<br>0.11% 0.12%<br>0.03%<br>-0.03%<br>2019 YE 2020 YE 2021 YE 2022 Q1<br> Avg Loans NCOs/Avg Loans<br>$ in millions<br>$0.6<br>Net<br>Recovery | |
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| 2525 Ticker: BUSE<br>High Quality Loan Portfolio: C&I<br>▪ 25.9% of total loan portfolio (ex-PPP loans)<br>▪ Diversified portfolio results in low levels of<br>concentrated exposure<br>▪ Top concentration in one industry<br>(manufacturing) is 17% of C&I loans, or<br>4% of total loans<br>▪ Only 1.7% of C&I loans are classified<br>▪ YoY growth of C&I loans (ex-PPP) of $329<br>million (includes $66 million of acquired C&I<br>loans from Glenview State Bank)<br>Note: Loan data as of Q1 2022<br>(1) ex-PPP loan totals include purchase accounting, FASB, overdrafts, etc.<br>C&I Loans by Sector (ex-PPP)<br>$ 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 $316,247 4.4% $6,848<br>Finance and Insurance $262,606 3.6% $0<br>Wholesale Trade $172,526 2.4% $428<br>Real Estate Rental & Leasing $167,061 2.3% $1,368<br>Educational Services $165,856 2.3% $0<br>Construction $164,126 2.3% $1,736<br>Health Care and Social Assistance $130,662 1.8% $6,265<br>Agriculture, Forestry, Fishing, Hunting $87,715 1.2% $1,466<br>Public Administration $82,334 1.1% $0<br>Retail Trade $76,562 1.1% $4,940<br>Food Services and Drinking Places $74,993 1.0% $820<br>Professional, Scientific, & Tech. Svcs. $49,440 0.7% $5,434<br>Other Services (except Public Admin.) $35,722 0.5% $91<br>Transportation $32,519 0.4% $250<br>Arts, Entertainment, and Recreation $19,536 0.3% $2,230<br>Administrative and Support Services $15,289 0.2% $912<br>Information $9,387 0.1% $0<br>Waste Management Services $6,212 0.1% $0<br>Mining, Quarrying, Oil & Gas Extraction $4,164 0.1% $0<br>Mgmt of Companies & Enterprises $1,223 0.0% $0<br>Utilities $917 0.0% $0<br>Grand Total $1,875,098 25.9% $32,788<br>Total C&I Loans (1) | |
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| 2626 Ticker: BUSE<br>High Quality Loan Portfolio: CRE<br>Total CRE: CRE-I and OOCRE Portfolio<br>▪ 49% of total loan portfolio (ex-PPP)<br>▪ 27% of CRE loans are owner-occupied properties that are<br>underwritten to operating cash flow<br>▪ Only 1.5% of total CRE loans and 1.6% of CRE-I loans are classified<br>▪ Low levels of concentrated exposure<br>▪ Office is top concentration at 19% of total CRE portfolio<br>▪ Apartments & Student Housing represents 29% of CRE-I<br>▪ 61.4% WAvg LTV & 61.8% long-term customers (4+ yrs)<br>Office Composition by Type – Q1 2022<br>▪ 39% of balances are Medical<br>Office, a segment minimally<br>impacted by work-from-home<br>trends<br>▪ 64.4% Weighted Avg LTV of total<br>Office portfolio<br>▪ 0.2% of Office balances are risk<br>rated classified<br>▪ 37% of Office is owner-occupied<br>(1) Investor owned CRE (CRE-I) includes C&D, Multifamily and non-owner occupied CRE<br>Investor Owned CRE Loans by Property Type (1) Owner Occupied CRE Loans by Property Type<br>$ 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 $462,009 6.4% $1,701<br>Retail $437,897 6.0% $1,167<br>Office $428,160 5.9% $568<br>Student Housing $288,743 4.0% $0<br>Industrial/Warehouse $272,777 3.8% $115<br>Hotel $215,229 3.0% $505<br>Senior Housing $183,330 2.5% $0<br>LAD $98,067 1.4% $2,400<br>Specialty $79,955 1.1% $42<br>Nursing Homes $62,491 0.9% $36,287<br>Restaurant $28,342 0.4% $0<br>Health Care $20,000 0.3% $0<br>1-4 Family $19,653 0.3% $0<br>Continuing Care Facilities $14,426 0.2% $0<br>Other $583 0.0% $0<br>Grand Total $2,611,663 36.1% $42,784<br>$ 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 $324,762 4.5% $3,873<br>Office $252,895 3.5% $680<br>Specialty $246,744 3.4% $2,768<br>Retail $69,241 1.0% $833<br>Restaurant $56,621 0.8% $1,634<br>Nursing Homes $1,538 0.0% $0<br>Health Care $1,101 0.0% $0<br>Hotel $621 0.0% $0<br>Apartments $455 0.0% $0<br>Other $199 0.0% $0<br>Student Housing $107 0.0% $0<br>Grand Total $954,285 13.2% $9,788 | |
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| 2727 Ticker: BUSE<br>APPENDIX | |
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| 2828 Ticker: BUSE<br>$12.6 $13.0<br>$13.7 $13.7<br>$15.8<br>$6.0 $6.3 $6.1 $5.5<br>$7.5<br>47.8% 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>$15.0<br>2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1<br> Revenue Pre-Tax Net Income Pre-Tax Profit Margin<br>$ in millions<br>Growing Wealth Management Business<br>Q1 2022 Summary<br>▪ Assets under care of $12.3 billion, a year-over-year increase of $1.6 billion, or 15%, which was impacted by<br>the acquisition of Glenview State Bank in 2021<br>▪ Decline in AUC from 4Q21 principally due to a reduction in market valuations during 1Q22<br>▪ Wealth revenue of $15.8 million, a 25.4% year-over-year increase<br>▪ Wealth pre-tax net income of $7.5 million, a 24.7% year-over-year increase<br>▪ Pre-tax profit margin of 47.6%, and a 45.6% average profit margin over last 5 quarters<br>▪ The investment team continues to produce excellent returns, outperforming benchmarks over multiple<br>measurement periods<br>▪ YT return for the team’s blended portfolio outperformed the blended benchmark(1) by 93 bps<br>(1) Blended benchmark consists of 60% MSCI All-Country World Index / 40% Bloomberg Intermediate Govt/Credit Index (2) Wealth Management segment<br>Wealth - Assets Under Care Wealth – Revenue & Pre-tax Income (2)<br>$10,692<br>$12,303 $12,364<br>$12,731<br>$12,329<br>2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1<br>$ in millions | |
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| 2929 Ticker: BUSE<br>Scalable Payment Technology Solutions Platform<br>Customer Overview<br>FirsTech Today<br>Transactions<br>processed per year (3)<br>34<br>Million<br>$10.3<br>Billion<br>Payments processed<br>annually (2)<br>Customers across<br>numerous industries<br>and growing<br>150+<br>Number of non-cash<br>payment transactions<br>in the United States<br>per year (1)<br>174<br>Billion<br>Value of non-cash<br>payments<br>in the United States<br>per year (1)<br>$97<br>Trillion<br>The Opportunity<br>Average FirsTech customer utilizes<br>only 1.9 payment solutions out of<br>an available 9<br>< 5% of current commercial bank<br>customers utilize a specific<br>FirsTech payment solution<br>Near<br>Term<br>Intermediate<br>Term<br>Expand outside the Busey ecosystem<br>with our complete payments<br>platform model and Banking as a<br>Service (BaaS) initiatives –<br>business development recently<br>hired to drive this initiative<br>Large Utilities<br>Insurance<br>Banks<br>Credit Unions<br>Telecom<br>(1) Total addressable market per the 2019 Federal Reserve Payments Study (2) LTM total payments processed as of 1Q2022 (3) LTM total transactions<br>processed as of 1Q2022 | |
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| 3030 Ticker: BUSE<br>Bank Liquidity<br>▪ As of March 31, 2022 management believed that<br>adequate liquidity existed to meet all projected cash flow<br>obligations<br>▪ First Busey’s primary sources of funds consist of deposits,<br>investment maturities and sales, loan principal<br>repayments and capital funds<br>Holding Company Liquidity<br>▪ As of March 31, 2022, there was no balance outstanding<br>on the Company’s revolving credit facility and a total of<br>$ . million outstanding on the Company’s term loan, of<br>which $12.0 million was short-term and $39.0 million was<br>long-term.<br>▪ In addition, the Company has existing senior debt and<br>subordinated debt at the holding company:<br>▪ $40.0 million of 3.75% senior notes maturing May<br>25, 2022<br>▪ $60.0 million of fixed-to-floating rate subordinated<br>notes that mature on May 25, 2027, callable<br>beginning May 25, 2022 and bear interest at an<br>annual rate of 4.75% for the first five years after<br>issuance and thereafter bear interest at a floating<br>rate equal to three-month LIBOR plus a spread of<br>2.919%<br>▪ $125.0 million of fixed-to-floating rate<br>subordinated notes that mature on June 1, 2030,<br>are callable beginning June 1, 2025 and bear<br>interest at an annual rate of 5.25% for the first five<br>years after issuance and thereafter bear interest at<br>a floating rate equal to a three-month benchmark<br>rate plus a spread of 5.11%<br>(1) Net of unamortized issuance costs<br>Contingency Liquidity<br>Holding Company Detail<br>$ in millions<br>$ in millions 3/31/22<br>Amount<br>Outstanding Available<br>Cash & Due from Banks $91.6<br>Securities $13.6<br>Term Loan $51.0 –<br>Senior Debt(1 ) $40.0 –<br>Subordinated Debt(1 ) $182.9 –<br>Trust Preferred $71.7 –<br>3/31/22<br>Balances<br>Unpledged Securities $3,190<br>Available FHLB $1,445<br>FRB Discount $745<br>Fed Funds Lines $483<br>Brokered Availability $1,066<br>Total $6,928<br>Liquidity Detail | |
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| 3131 Ticker: BUSE<br>▪ Continued investment in technology, automation, and data analytics across the company<br>▪ Seeing tangible results as we continue to adapt to our customers’ needs<br>▪ Digital relationship banking team formed in 4Q20 to manage Digital Preferred Banking (1) deposit accounts<br>▪ Five digital relationship bankers manage . of Busey’s total retail A & Savings accounts (2)<br>(1) Digital Preferred is defined as Retail, deposit-only customers with their first account opened before 2020, who bank outside of 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 (2) As of 3/31/22<br>Continued Investment in Technology Enterprise-Wide<br>RPA solution for<br>FirsTech<br>4Q 2021<br>Cloud-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-wide<br>CRM system<br>installed<br>Upgraded Treasury<br>Management software<br>4Q 2019<br>4Q 2019<br>Enterprise-wide<br>electronic knowledge<br>management solution<br>AI-driven marketing data<br>analytics tool established<br>4Q 2019<br>1Q 2020<br>Mobile and e-banking upgraded<br>Data warehouse build-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 eClosing to<br>go live<br>FirsTech launched new<br>one-time payments<br>platform for Busey Bank<br>customers<br>1Q 2022 | |
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| 3232 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>• 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>• Recycled nearly 500 tons of paper and<br>saving nearly 2 million kilowatts of<br>energy in 2021 alone.<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>• Donating more than $1 million<br>annually and volunteered over 10,000<br>hours in 2021.<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>• Building upon a legacy of corporate<br>responsibility through an Enterprise<br>Community Banking program.<br>Commitment to<br>Strong Governance<br>• Leading at the Board and Executive<br>level with a team of diverse<br>backgrounds and experiences.<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>• 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 (3)<br>(1-10 Range,<br>lower is better)<br>Sustainalytics Score (4)<br>(Lower is better –<br>Proxy Peers average 30.4)<br>Environmental<br>Disclosures 3 Social<br>Disclosures 4 Governance<br>Risk 2<br>New role of Director of Environmental, Social, and Governance Strategy & Reporting hired in January 2022.<br>95% participation in<br>wellness program (1)<br>Associates are 61% female (1)<br>8 years average tenure<br>40,000+ training hours<br>provided annually<br>11 Good Governance metrics (1)<br>including internal auditing,<br>whistleblower hotline, and<br>diverse leadership<br>Strong 7%<br>insider ownership (2)<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) Per 2021 Corporate Social Responsibility Report (2) Per Definitive Proxy filed April 14, 2022 (3) Last ISS Governance data profile update: 2/18/22; Last ISS E&S data profile update: 9/10/21<br>(4) Sustainalytics Scores updated through 4/8/22. Reporting peer 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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| 3333 Ticker: BUSE<br>Non-GAAP Financial Information<br>Pre-Provision Net Revenue, Adjusted Pre-Provision Net Revenue,<br>Pre-Provision Net Revenue to Average Assets, and Adjusted Pre-Provision Net Revenue to Average Assets<br>(dollars in thousands)<br>Three Months Ended<br>March 31, December 31, September 30, June 30, March 31,<br>2022 2021 2021 2021 2021<br>PRE-PROVISION NET REVENUE<br>Net interest income $ 70,056 $ 70,508 $ 70,755 $ 64,542 $ 64,893<br>Total noninterest income 35,772 35,089 33,259 33,011 31,445<br>Net security (gains) losses 614 (474) (57) (898) (1,641)<br>Total noninterest expense (70,376) (71,169) (73,487) (62,625) (54,499)<br>Pre-provision net revenue 36,066 33,954 30,470 34,030 40,198<br>Non-GAAP adjustments:<br>Acquisition and other restructuring expenses 835 5,641 8,677 2,713 320<br>Provision for unfunded commitments 1,112 294 (978) (496) 406<br>Amortization of New Markets Tax Credit 1,341 1,255 1,240 1,239 1,829<br>Adjusted pre-provision net revenue $ 39,354 $ 41,144 $ 39,409 $ 37,486 $ 42,753<br>Pre-provision net revenue, annualized [a] $ 146,268 $ 134,709 $ 120,886 $ 136,494 $ 163,025<br>Adjusted pre-provision net revenue, annualized [b] $ 159,602 $ 163,234 $ 156,351 $ 150,356 $ 173,387<br>Average total assets [c] $ 12,660,939 $ 12,895,049 $ 12,697,795 $ 11,398,655 $ 10,594,245<br>Reported: Pre-provision net revenue to average assets 1 [a÷c] 1.16 % 1.04 % 0.95 % 1.20 % 1.54 %<br>Adjusted: Pre-provision net revenue to average assets 1 [b÷c] 1.26 % 1.27 % 1.23 % 1.32 % 1.64 %<br>1 Annualized measure. | |
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| 3434 Ticker: BUSE<br>Non-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 31, December 31, September 30, June 30, March 31,<br>2022 2021 2021 2021 2021<br>NET INCOME ADJUSTED FOR NON-OPERATING ITEMS<br>Net income [a] $ 28,439 $ 29,926 $ 25,941 $ 29,766 $ 37,816<br>Non-GAAP adjustments:<br>Acquisition expenses:<br>Salaries, wages, and employee benefits 587 1,760 4,462 1,125 —<br>Data processing 214 143 3,182 368 7<br>Professional fees, occupancy, and other 34 290 776 1,220 313<br>Other restructuring expenses:<br>Salaries, wages, and employee benefits — 215 257 ——<br>Lease or fixed asset impairment — 3,227 ———<br>Professional fees, occupancy, and other — 6 ———<br>Related tax benefit (170) (1,290) (1,773) (558) (71)<br>Adjusted net income [b] $ 29,104 $ 34,277 $ 32,845 $ 31,921 $ 38,065<br>DILUTED EARNINGS PER SHARE<br>Dilutive average common shares outstanding [c] 56,194,946 56,413,026 56,832,518 55,730,883 55,035,806<br>Reported: Diluted earnings per share [a÷c] $ 0.51 $ 0.53 $ 0.46 $ 0.53 $ 0.69<br>Adjusted: Diluted earnings per share [b÷c] $ 0.52 $ 0.61 $ 0.58 $ 0.57 $ 0.69<br>RETURN ON AVERAGE ASSETS<br>Net income, annualized [d] $ 115,336 $ 118,728 $ 102,918 $ 119,391 $ 153,365<br>Adjusted net income, annualized [e] $ 118,033 $ 135,990 $ 130,309 $ 128,035 $ 154,375<br>Average total assets [f] $ 12,660,939 $ 12,895,049 $ 12,697,795 $ 11,398,655 $ 10,594,245<br>Reported: Return on average assets 1 [d÷f] 0.91 % 0.92 % 0.81 % 1.05 % 1.45 %<br>Adjusted: Return on average assets 1 [e÷f] 0.93 % 1.05 % 1.03 % 1.12 % 1.46 %<br>RETURN ON AVERAGE TANGIBLE COMMON EQUITY<br>Average common equity $ 1,281,535 $ 1,328,692 $ 1,351,416 $ 1,342,771 $ 1,275,694<br>Average goodwill and other intangible assets, net (374,811) (377,825) (380,885) (368,709) (362,693)<br>Average tangible common equity [g] $ 906,724 $ 950,867 $ 970,531 $ 974,062 $ 913,001<br>Reported: Return on average tangible common equity 1 [d÷g] 12.72 % 12.49 % 10.60 % 12.26 % 16.80 %<br>Adjusted: Return on average tangible common equity 1 [e÷g] 13.02 % 14.30 % 13.43 % 13.14 % 16.91 %<br>1 Annualized measure. | |
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| 3535 Ticker: BUSE<br>Non-GAAP Financial Information<br>Adjusted Net Interest Margin<br>(dollars in thousands)<br>Three Months Ended<br>March 31, December 31, September 30, June 30, March 31,<br>2022 2021 2021 2021 2021<br>Net interest income $ 70,056 $ 70,508 $ 70,755 $ 64,542 $ 64,893<br>Non-GAAP adjustments:<br>Tax-equivalent adjustment 546 577 598 579 601<br>Tax equivalent net interest income 70,602 71,085 71,353 65,121 65,494<br>Purchase accounting accretion related to business combinations (1,159) (1,469) (1,799) (1,726) (2,157)<br>Adjusted net interest income $ 69,443 $ 69,616 $ 69,554 $ 63,395 $ 63,337<br>Tax equivalent net interest income, annualized [a] $ 286,330 $ 282,022 $ 283,085 $ 261,200 $ 265,615<br>Adjusted net interest income, annualized [b] $ 281,630 $ 276,194 275,948 254,277 $ 256,867<br>Average interest-earning assets [c] $ 11,703,947 $ 11,947,653 11,730,637 10,448,417 $ 9,752,294<br>Reported: Net interest margin 1 [a÷c] 2.45% 2.36% 2.41% 2.50% 2.72%<br>Adjusted: Net interest margin 1 [b÷c] 2.41% 2.31% 2.35% 2.43% 2.63%<br>1 Annualized measure. | |
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| 3636 Ticker: BUSE<br>Non-GAAP Financial Information<br>Adjusted Noninterest Expense, Core Adjusted Expense, Efficiency Ratio, Adjusted Efficiency Ratio, and Adjusted Core Efficiency Ratio<br>(dollars in thousands)<br>Three Months Ended<br>March 31, December 31, September 30, June 30, March 31,<br>2022 2021 2021 2021 2021<br>Net interest income $ 70,056 $ 70,508 $ 70,755 $ 64,542 $ 64,893<br>Non-GAAP adjustments:<br>Tax-equivalent adjustment 546 577 598 579 601<br>Tax equivalent net interest income 70,602 71,085 71,353 65,121 65,494<br>Total noninterest income 35,772 35,089 33,259 33,011 31,445<br>Non-GAAP adjustments:<br>Net security (gains) losses 614 (474) (57) (898) (1,641)<br>Noninterest income excluding net security gains and losses 36,386 34,615 33,202 32,113 29,804<br>Tax equivalent net interest income plus noninterest income excluding net security gains and losses [a] $ 106,988 $ 105,700 $ 104,555 $ 97,234 $ 95,298<br>Total noninterest expense $ 70,376 $ 71,169 $ 73,487 $ 62,625 $ 54,499<br>Non-GAAP adjustments:<br>Amortization of intangible assets [b] (3,011) (3,074) (3,149) (2,650) (2,401)<br>Non-interest expense excluding amortization of intangible assets [c] 67,365 68,095 70,338 59,975 52,098<br>Non-operating adjustments:<br>Salaries, wages, and employee benefits (587) (1,975) (4,719) (1,125) —<br>Data processing (214) (143) (3,182) (368) (7)<br>Impairment, professional fees, occupancy, and other (34) (3,523) (776) (1,220) (313)<br>Adjusted noninterest expense [d] 66,530 62,454 61,661 57,262 $ 51,778<br>Provision for unfunded commitments (1,112) (294) 978 496 (406)<br>Amortization of New Markets Tax Credit (1,341) (1,255) (1,240) (1,239) (1,829)<br>Core adjusted expense [e] $ 64,077 $ 60,905 $ 61,399 $ 56,519 $ 49,543<br>Noninterest expense, excluding non-operating adjustments [d-b] $ 69,541 $ 65,528 $ 64,810 $ 59,912 $ 54,179<br>Reported: Efficiency ratio [c÷a] 62.97 % 64.42 % 67.27 % 61.68 % 54.67 %<br>Adjusted: Efficiency ratio [d÷a] 62.18 % 59.09 % 58.97 % 58.89 % 54.33 %<br>Adjusted: Core efficiency ratio [e÷a] 59.89 % 57.62 % 58.72 % 58.13 % 51.99 % | |
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| 3737 Ticker: BUSE<br>Non-GAAP Financial Information<br>Tangible Book Value Per Common Share<br>(dollars in thousands, except per share amounts)<br>As of<br>March 31, December 31, September 30, June 30, March 31,<br>2022 2021 2021 2021 2021<br>Total stockholders’ equity $ 1,218,025 $ 1,319,112 $ 1,333,076 $ 1,345,691 $ 1,265,822<br>Goodwill and other intangible assets, net (372,913) (375,924) (378,891) (381,795) (361,120)<br>Tangible book value [a] $ 845,112 $ 943,188 $ 954,185 $ 963,896 $ 904,702<br>Ending number of common shares outstanding [b] 55,278,785 55,434,910 55,826,984 56,330,616 54,345,379<br>Tangible book value per common share [a÷b] $ 15.29 $ 17.01 $ 17.09 $ 17.11 $ 16.65<br>Tangible Common Equity and Tangible Common Equity to Tangible Assets<br>(dollars in thousands)<br>As of<br>March 31, December 31, September 30, June 30, March 31,<br>2022 2021 2021 2021 2021<br>Total assets $ 12,567,509 $ 12,859,689 $ 12,899,330 $ 12,415,449 $ 10,759,563<br>Non-GAAP adjustments:<br>Goodwill and other intangible assets, net (372,913) (375,924) (378,891) (381,795) (361,120)<br>Tax effect of other intangible assets 1 10,456 16,254 17,115 17,997 13,883<br>Tangible assets [a] $ 12,205,052 $ 12,500,019 $ 12,537,554 $ 12,051,651 $ 10,412,326<br>Total stockholders’ equity $ 1,218,025 $ 1,319,112 $ 1,333,076 $ 1,345,691 $ 1,265,822<br>Non-GAAP adjustments:<br>Goodwill and other intangible assets, net (372,913) (375,924) (378,891) (381,795) (361,120)<br>Tax effect of other intangible assets 1 10,456 16,254 17,115 17,997 13,883<br>Tangible common equity [b] $ 855,568 $ 959,442 $ 971,300 $ 981,893 $ 918,585<br>Tangible common equity to tangible assets 2 [b÷a] 7.01 % 7.68 % 7.75 % 8.15 % 8.82 %<br>1 Net of estimated deferred tax liability.<br>2 Tax-effected measure. | |
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| 3838 Ticker: BUSE<br>Non-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 31, December 31, September 30, June 30, March 31,<br>2022 2021 2021 2021 2021<br>Portfolio loans [a] $ 7,272,873 $ 7,188,998 $ 7,150,635 $ 7,185,650 $ 6,779,300<br>Non-GAAP adjustments:<br>PPP Loans amortized cost (31,769) (74,958) (178,231) (390,395) (522,104)<br>Core loans [b] $ 7,241,104 $ 7,114,040 $ 6,972,404 $ 6,795,255 $ 6,257,196<br>Total deposits [c] $ 10,591,836 $ 10,768,577 $ 10,817,867 $ 10,337,117 $ 8,873,847<br>Non-GAAP adjustments:<br>Brokered transaction accounts (2,002) (2,248) (2,002) (2,002) (2,699)<br>Time deposits of $250,000 or more (139,245) (137,449) (156,419) (129,026) (155,401)<br>Core deposits [d] $ 10,450,589 $ 10,628,880 $ 10,659,446 $ 10,206,089 $ 8,715,747<br>RATIOS<br>Core loans to portfolio loans [b÷a] 99.56 % 98.96 % 97.51 % 94.57 % 92.30 %<br>Core deposits to total deposits [d÷c] 98.67 % 98.70 % 98.54 % 98.73 % 98.22 %<br>Core loans to core deposits [b÷d] 69.29 % 66.93 % 65.41 % 66.58 % 71.79 % | |
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