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): October 26, 2021

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 October 26, 2021, First Busey Corporation (“First Busey”) issued a press release disclosing financial results for the quarter ended September 30, 2021. 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 (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 of 1933, as amended (the “Securities Act”), or the Exchange Act.

Item 7.01Regulation FD Disclosure.

On October 26, 2021, First Busey published supplemental slides discussing First Busey’s financial results for the quarter ended September 30, 2021, and coronavirus disease 2019 response. 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.


99.1	Press Release issued by First Busey Corporation, dated October 26, 2021.

99.2	Supplemental slides issued by First Busey Corporation, dated October 26, 2021.

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: October 26, 2021	First Busey Corporation


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

First Busey Announces 2021 Third Quarter Results

October 26, 2021

First Busey Announces 2021 Third Quarter Earnings

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

Message from our Chairman & CEO

Third Quarter 2021 Highlights:

●Third quarter 2021 net income of $25.9 million and diluted EPS of $0.46

●Third quarter 2021 adjusted net income^1^ of $32.8 million and adjusted diluted EPS^1^ of $0.58

●Core organic loan growth, excluding Paycheck Protection Program (“PPP”) loans, of $177.1 million, or 2.6%, in the third quarter. At September 30, 2021, and consistent with the second quarter, our loan pipeline is more than double what it was at the beginning of the year.

●Wealth management assets under care of $12.36 billion at September 30, 2021, up from $12.30 billion at June 30, 2021, and $9.50 billion at September 30, 2020, which represents 30.1% year-over-year growth

●Wealth management segment revenue growth of 5.7% in the third quarter, and 20.4% year-over-year growth on a YTD basis

●FirsTech, our remittance processing segment, revenue growth of 4.5% in the third quarter, and 19.3% year-over-year growth on a YTD basis

●Noninterest income, excluding security gains, accounted for 31.9% of total revenue in the third quarter of 2021 supported by continued growth in wealth management, customer service fees, and remittance processing

●Tangible book value per common share^1^ of $17.09 at September 30, 2021, compared to $17.11 at June 30, 2021, and $16.32 at September 30, 2020, an increase of 4.7% year-over-year

●Successfully merged Glenview State Bank into Busey Bank on August 14, 2021

●For additional information, please refer to the 3Q21 Quarterly Earnings Supplement

Third Quarter Financial Results

Net income for First Busey Corporation (“First Busey” or the “Company”) for the third quarter of 2021 was $25.9 million, or $0.46 per diluted common share, as compared to $29.8 million, or $0.53 per diluted common share, for the second quarter of 2021 and $30.8 million, or $0.56 per diluted common share, for the third quarter of 2020. Adjusted net income^1^ for the third quarter of 2021 was $32.8 million, or $0.58 per diluted common share, as compared to $31.9 million, or $0.57 per diluted common share, for the second quarter of 2021 and $32.8 million, or $0.60 per diluted common share, for the third quarter of 2020. For the third quarter of 2021, annualized return on average assets and annualized return on average tangible common equity^1^ were 0.81% and 10.60%, respectively. Based on adjusted net income^1^, annualized return on average assets was 1.03% and annualized return on average tangible common equity^1^ was 13.43% for the third quarter of 2021.

Pre-provision net revenue^1^ for the third quarter of 2021 was $30.5 million, compared to $34.0 million for the second quarter of 2021 and $45.9 million for the third quarter of 2020. Adjusted pre-provision net revenue^1^ for the third quarter of 2021 was $39.4 million, as compared to $37.5 million for the second quarter of 2021 and $48.7 million for the third quarter of 2020. Pre-provision net revenue to average assets^1^ for the third quarter of 2021 was 0.95%, as compared to 1.20% for the second quarter of 2021 and 1.71% for the third quarter of 2020. Adjusted pre-provision net revenue to average assets^1^ for the third quarter of 2021 was 1.23%, as compared to 1.32% for the second quarter of 2021 and 1.81% for the third quarter of 2020.

The Company experienced its second consecutive quarter of solid core organic loan growth, principally in commercial lending segments. The Company reported net interest income of $70.8 million in the third quarter of 2021, up from $64.5 million in the second quarter of 2021, and $69.8 million in the third quarter of 2020. While our net interest income increased, our reported net interest margin declined to 2.41% from 2.50% in the second quarter and 2.86% in the third quarter of 2020. The decline is attributable to the persistent dual pressures of loan interest rates and continued growth in excess liquidity, as well as the impact of the consolidation of our most recent acquisition into our financial results for a full quarter.

Third quarter 2021 results reflect a provision release, as compared to a reserve build at the onset of the coronavirus disease 2019 (“COVID-19”) pandemic. Specifically, the Company recorded a $1.9 million negative provision for credit losses and a $1.0 million negative provision for unfunded commitments amid continued improvements in the economic environment. The total allowance for credit losses

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

was $92.8 million at September 30, 2021, representing 1.30% of total portfolio loans outstanding and 1.33% of portfolio loans excluding PPP loans. Net charge-offs were $0.7 million in the third quarter of 2021, representing 0.04% of average loans on an annualized basis.

Our fee-based businesses continue to add dynamic revenue diversification. In the third quarter of 2021, wealth management fees were $13.7 million, an increase of 30.3% from the third quarter of 2020, while remittance processing revenue was $4.4 million, an increase of 9.0% from the same period last year. Fees for customer services were $9.3 million in the third quarter of 2021, a 15.9% increase from $8.0 million in the third quarter of 2020.

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 third quarter of 2021 included $8.7 million of expenses related to acquisitions and other restructuring. The Company believes that non-GAAP measures—including adjusted pre-provision net revenue, adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted net interest margin, efficiency ratio, adjusted efficiency ratio, tangible common equity, tangible common equity to tangible assets, tangible book value per share, and return on average tangible common equity—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.

Acquisition of Cummins-American Corp.

Effective May 31, 2021, the Company completed its acquisition of Cummins-American Corp. (“CAC”), the holding company for Glenview State Bank (“GSB”). The partnership enhances the Company’s existing deposit, commercial banking, and wealth management presence in the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area. First Busey operated GSB as a separate banking subsidiary from acquisition until it was merged with Busey Bank on August 14, 2021. At that time, GSB banking centers became banking centers of Busey Bank. As part of the acquisition integration plan, during the fourth quarter of 2021 the Company plans to close and consolidate two of the former GSB banking centers, which are in addition to the Personal Banking Transformation Plan outlined below. With GSB now merged and integrated, we expect to see the full contribution and synergies reflected in the Company’s financial performance in the quarters ahead.

Personal Banking Transformation Plan

After thoughtful consideration and analysis, in July 2021 the Company approved a plan to close and consolidate 15 Busey Bank banking centers to ensure a balance between the Company’s physical banking center network and its robust digital banking services. An efficient banking center footprint is necessary to keep First Busey competitive, responsive, and independent. The banking centers are expected to close in the fourth quarter of 2021. When fully realized, annualized expense savings net of expected associated revenue impacts are anticipated to be approximately $3.5 million, with the impact of these cost savings beginning to be realized in the fourth quarter of 2021. One-time expenses of $0.3 million were recorded in the third quarter of 2021, and an additional $3.6 to $4.2 million are anticipated to be incurred in the fourth quarter of 2021.

COVID-19 Update

The Company continues to navigate the economic environment caused by COVID-19 effectively and prudently and remains resolute in its focus on serving its customers, communities, and associates while protecting its balance sheet. To alleviate some of the financial hardships faced as a result of COVID-19, First Busey offered an internal Financial Relief Program to qualifying customers. As of September 30, 2021, the Company had no loans remaining on full payment deferral, and 27 commercial loans remaining on interest only payment deferrals representing $116.6 million in loans.

First Busey served as a bridge for the PPP, actively helping existing and new business clients sign up for this important financial resource. At September 30, 2021, First Busey had $183.1 million in total PPP loans outstanding, with an amortized cost of $178.2 million, down from $399.7 million in total PPP loans outstanding, with an amortized cost of $390.4 million, at June 30, 2021.

Community Banking

First Busey’s goal of being a strong community bank for the communities it serves begins with outstanding associates. The Company is honored to be named among the 2020 Best Banks to Work For by American Banker, the 2021 Best Places to Work in Illinois by Daily Herald Business Ledger, the 2021 Best Companies to Work For in Florida by Florida Trend magazine, the 2021 Best Place to Work in Indiana by the Indiana Chamber of Commerce, and the 2020 Best Places to Work in Money Management by Pensions and Investments.

The Company remains steadfast in its commitment to the customers and communities it serves. The third quarter results are reflective of our strategic growth plans and improving economic conditions. We feel confident that we are well positioned to continue to produce growth and profitability as we move into the final quarter of 2021 and into 2022.

/s/ Van A. Dukeman

Chairman, President & Chief Executive Officer

First Busey Corporation


SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
(dollars in thousands, except per share data)

		As of and for the																As of and for the
		Three Months Ended																Nine Months Ended
****		September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	****	2021		****	2021		****	2021		****	2020		****	2020		****	2021		****	2020		****
EARNINGS & PER SHARE DATA
Net income		$	25,941		$	29,766		$	37,816		$	28,345		$	30,829		$	93,523		$	71,999
Diluted earnings per share			0.46			0.53			0.69			0.52			0.56			1.67			1.31
Cash dividends paid per share			0.23			0.23			0.23			0.22			0.22			0.69			0.66
Pre-provision net revenue ^1,^^^^2^			30,470			34,030			40,198			38,507			45,922			104,698			127,165
Revenue ^3^			103,957			96,655			94,697			102,580			102,464			295,309			297,289

Net income by operating segments:
Banking			25,124			29,237			35,528			28,573			31,744			89,889			72,653
Remittance Processing			384			401			429			406			578			1,214			1,966
Wealth Management			4,718			4,885			4,682			3,334			3,166			14,285			9,847

AVERAGE BALANCES
Cash and cash equivalents		$	1,009,750		$	647,465		$	536,457		$	551,844		$	836,097		$	732,958		$	626,222
Investment securities			3,721,740			3,031,250			2,561,680			2,077,284			1,824,327			3,109,140			1,760,461
Loans held for sale			15,589			22,393			31,373			52,745			104,965			23,060			91,964
Portfolio loans			7,133,108			6,889,551			6,736,664			6,990,414			7,160,757			6,921,226			7,012,497
Interest-earning assets			11,730,637			10,448,417			9,752,294			9,557,265			9,805,948			10,651,386			9,371,157
Total assets			12,697,795			11,398,655			10,594,245			10,419,364			10,680,995			11,571,270			10,249,578

Noninterest bearing deposits			3,365,823			2,970,890			2,688,845			2,545,830			2,592,130			3,010,999			2,303,538
Interest-bearing deposits			7,253,242			6,432,336			6,033,613			5,985,020			6,169,377			6,577,531			6,108,605
Total deposits			10,619,065			9,403,226			8,722,458			8,530,850			8,761,507			9,588,530			8,412,143

Securities sold under agreements to repurchase			221,813			204,417			184,694			194,610			190,046			203,777			185,528
Interest-bearing liabilities			7,842,805			6,966,046			6,521,195			6,482,475			6,694,561			7,114,856			6,578,587
Total liabilities			11,346,379			10,055,884			9,318,551			9,158,066			9,432,547			10,247,699			9,016,230
Stockholders' equity - common			1,351,416			1,342,771			1,275,694			1,261,298			1,248,448			1,323,571			1,233,348
Tangible stockholders' equity - common ^2^			970,531			974,062			913,001			896,178			880,958			952,742			863,547

PERFORMANCE RATIOS
Pre-provision net revenue to average assets^1, 2^			0.95	%		1.20	%		1.54	%		1.47	%		1.71	%		1.21	%		1.66	%
Return on average assets			0.81	%		1.05	%		1.45	%		1.08	%		1.15	%		1.08	%		0.94	%
Return on average common equity			7.62	%		8.89	%		12.02	%		8.94	%		9.82	%		9.45	%		7.80	%
Return on average tangible common equity ^2^			10.60	%		12.26	%		16.80	%		12.58	%		13.92	%		13.12	%		11.14	%
Net interest margin ^2,^^^^4^			2.41	%		2.50	%		2.72	%		3.06	%		2.86	%		2.54	%		3.02	%
Efficiency ratio ^2^			67.27	%		61.68	%		54.67	%		59.70	%		52.42	%		61.40	%		54.30	%
Noninterest revenue as a % of total revenues ^3^			31.94	%		33.22	%		31.47	%		28.90	%		31.92	%		32.21	%		29.36	%

NON-GAAP FINANCIAL INFORMATION
Adjusted pre-provision net revenue^1, 2^		$	39,409		$	37,486		$	42,753		$	47,156		$	48,701		$	119,648		$	133,360
Adjusted net income^2^			32,845			31,921			38,065			34,255			32,803			102,831			74,473
Adjusted diluted earnings per share^2^			0.58			0.57			0.69			0.62			0.60			1.84			1.36
Adjusted pre-provision net revenue to average assets^2^			1.23	%		1.32	%		1.64	%		1.80	%		1.81	%		1.38	%		1.74	%
Adjusted return on average assets^2^			1.03	%		1.12	%		1.46	%		1.31	%		1.22	%		1.19	%		0.97	%
Adjusted return on average tangible common equity^2^			13.43	%		13.14	%		16.91	%		15.21	%		14.81	%		14.43	%		11.52	%
Adjusted net interest margin^2, 4^			2.35	%		2.43	%		2.63	%		2.96	%		2.75	%		2.46	%		2.91	%
Adjusted efficiency ratio^2^			58.97	%		58.89	%		54.33	%		52.39	%		49.97	%		57.46	%		53.24	%

^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 data)

		September 30,			June 30,			March 31,			December 31,			September 30,
	****	2021		****	2021		****	2021		****	2020		****	2020
ASSETS
Cash and cash equivalents		$	883,845		$	920,810		$	404,802		$	688,537		$	479,721
Investment securities			4,010,256			3,478,467			2,804,101			2,266,717			2,098,657

Loans held for sale			20,225			17,834			38,272			42,813			87,772

Commercial loans			5,431,342			5,475,461			5,402,970			5,368,897			5,600,705
Retail real estate and retail other loans			1,719,293			1,710,189			1,376,330			1,445,280			1,520,606
Portfolio loans			7,150,635			7,185,650			6,779,300			6,814,177			7,121,311

Allowance for credit losses			(92,802)			(95,410)			(93,943)			(101,048)			(98,841)
Premises and equipment			142,031			145,437			132,669			135,191			144,001
Goodwill and other intangibles			378,891			381,795			361,120			363,521			365,960
Right of use asset			11,068			8,228			7,333			7,714			7,251
Other assets			395,181			372,638			325,909			326,425			333,796
Total assets		$	12,899,330		$	12,415,449		$	10,759,563		$	10,544,047		$	10,539,628

LIABILITIES & STOCKHOLDERS' EQUITY
Noninterest bearing deposits		$	3,453,906		$	3,186,650		$	2,859,492		$	2,552,039		$	2,595,075
Interest checking, savings, and money market deposits			6,337,026			6,034,871			4,991,887			5,006,462			4,819,859
Time deposits			1,026,935			1,115,596			1,022,468			1,119,348			1,227,767
Total deposits		$	10,817,867		$	10,337,117		$	8,873,847		$	8,677,849		$	8,642,701

Securities sold under agreements to repurchase		$	241,242		$	207,266		$	210,132		$	175,614		$	201,641
Short-term borrowings			17,673			30,168			4,663			4,658			4,651
Long-term debt			271,780			274,788			226,797			226,792			226,801
Junior subordinated debt owed to unconsolidated trusts			71,593			71,551			71,509			71,468			71,427
Lease liability			11,120			8,280			7,380			7,757			7,342
Other liabilities			134,979			140,588			99,413			109,840			129,360
Total liabilities		$	11,566,254		$	11,069,758		$	9,493,741		$	9,273,978		$	9,283,923
Total stockholders' equity		$	1,333,076		$	1,345,691		$	1,265,822		$	1,270,069		$	1,255,705
Total liabilities & stockholders' equity		$	12,899,330		$	12,415,449		$	10,759,563		$	10,544,047		$	10,539,628

SHARE DATA
Book value per common share		$	23.88		$	23.89		$	23.29		$	23.34		$	23.03
Tangible book value per common share ^1^		$	17.09		$	17.11		$	16.65		$	16.66		$	16.32
Ending number of common shares outstanding			55,826,984			56,330,616			54,345,379			54,404,379			54,522,231

^1^^^See "Non-GAAP Financial Information" for reconciliation, excludes tax effect of other intangible assets.


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(dollars in thousands, except per share data)

		Three Months Ended September 30,					Nine Months Ended September 30,
	****	2021		****	2020		2021		2020
INTEREST INCOME
Interest and fees on loans held for sale and portfolio		$	65,163		$	69,809	$	189,132	$	213,434
Interest on investment securities			12,239			9,607		31,894		30,265
Other interest income			462			213		857		1,596
Total interest income		$	77,864		$	79,629	$	221,883	$	245,295

INTEREST EXPENSE
Interest on deposits		$	3,059		$	6,105	$	10,086	$	26,053
Interest on securities sold under agreements to repurchase			60			88		177		596
Interest on short-term borrowings			112			30		195		215
Interest on long-term debt			3,150			2,913		9,050		6,212
Junior subordinated debt owed to unconsolidated trusts			728			740		2,185		2,220
Total interest expense		$	7,109		$	9,876	$	21,693	$	35,296

Net interest income		$	70,755		$	69,753	$	200,190	$	209,999
Provision for loan losses			(1,869)			5,549		(10,365)		35,656
Net interest income after provision for loan losses		$	72,624		$	64,204	$	210,555	$	174,343

NONINTEREST INCOME
Wealth management fees		$	13,749		$	10,548	$	39,335	$	32,296
Fees for customer services			9,288			8,014		25,936		23,400
Remittance processing			4,355			3,995		13,122		11,466
Mortgage revenue			1,740			5,793		6,153		9,879
Income on bank owned life insurance			999			1,022		3,439		4,361
Net security gains (losses)			57			(426)		2,596		476
Other			3,071			3,339		7,134		5,888
Total noninterest income		$	33,259		$	32,285	$	97,715	$	87,766

NONINTEREST EXPENSE
Salaries, wages, and employee benefits		$	41,949		$	32,839	$	107,222	$	95,397
Data processing expense			7,782			3,937		16,881		12,383
Net occupancy expense			4,797			4,256		13,606		13,419
Furniture and equipment expense			2,208			2,325		6,300		7,311
Professional fees			1,361			1,698		5,617		5,508
Amortization expense			3,149			2,493		8,200		7,569
Interchange expense			1,434			1,223		4,360		3,590
Other operating expenses			10,807			7,771		28,425		24,947
Total noninterest expense		$	73,487		$	56,542	$	190,611	$	170,124

Income before income taxes		$	32,396		$	39,947	$	117,659	$	91,985
Income taxes			6,455			9,118		24,136		19,986
Net income		$	25,941		$	30,829	$	93,523	$	71,999

SHARE DATA
Basic earnings per common share		$	0.46		$	0.56	$	1.69	$	1.32
Fully-diluted earnings per common share		$	0.46		$	0.56	$	1.67	$	1.31
Average common shares outstanding			56,227,816			54,585,998		55,256,348		54,579,088
Diluted average common shares outstanding			56,832,518			54,737,920		55,872,835		54,796,354

Balance Sheet Growth

Our balance sheet remains a source of strength. Total assets were $12.90 billion at September 30, 2021, $12.42 billion at June 30, 2021, and $10.54 billion at September 30, 2020. At September 30, 2021, portfolio loans were $7.15 billion, compared to $7.19 billion as of June 30, 2021, and $7.12 billion as of September 30, 2020. Amortized costs of PPP loans of $178.2 million, $390.4 million, and $736.4 million are included in the September 30, 2021, June 30, 2021, and September 30, 2020, portfolio loan balances, respectively. During the third quarter of 2021, Busey Bank experienced organic loan growth of $177.1 million, consisting of commercial balances (which includes commercial, commercial real estate and real estate construction loans), excluding PPP loans, of $168.0 million and retail real estate and retail other balances of $9.1 million.

Average portfolio loans were $7.13 billion for the third quarter of 2021, compared to $6.89 billion for the second quarter of 2021 and $7.16 billion for the third quarter of 2020. The average balance of PPP loans for the third quarter of 2021 was $291.8 million, compared to $496.2 million for the second quarter of 2021 and $734.2 million for the third quarter of 2020. Average interest-earning assets for the third quarter of 2021 were $11.73 billion, compared to $10.45 billion for the second quarter of 2021 and $9.81 billion for the third quarter of 2020.

Total deposits were $10.82 billion at September 30, 2021, compared to $10.34 billion at June 30, 2021, and $8.64 billion at September 30, 2020. 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 growth, and the seasonality of public funds. The Company remains funded substantially through core deposits with significant market share in its primary markets. Core deposits now account for 98.5% of total deposits. Cost of deposits declined to 0.11% in the third quarter.

Net Interest Margin^1^ and Net Interest Income

Net interest margin for the third quarter of 2021 was 2.41%, compared to 2.50% for the second quarter of 2021 and 2.86% for the third quarter of 2020. Excluding purchase accretion, adjusted net interest margin^1^ was 2.35% for the third quarter of 2021, compared to 2.43% in the second quarter of 2021 and 2.75% in the third quarter of 2020. Net interest income was $70.8 million in the third quarter of 2021 compared to $64.5 million in the second quarter of 2021 and $69.8 million in the third quarter of 2020.

The Federal Open Market Committee rate cuts during the first quarter of 2020 have contributed to the decline in net interest margin over the past year, as assets, in particular commercial loans, repriced more quickly and to a greater extent than liabilities. The net interest margin has also been negatively impacted by the sizeable balance of lower-yielding PPP loans, significant growth in the Company’s liquidity position, and the issuance of debt. Those impacts were partially offset by the Company’s efforts to lower deposit funding costs as well as the fees recognized related to PPP loans. Factors contributing to the 9 basis point decline in net interest margin during the third quarter of 2021 include:

●	Interest earning assets rate/volume mix contributed -12 basis points
●	Reduced recognition of purchase accounting accretion contributed -1 basis points
---	---
●	PPP contributions improved +1 basis points
---	---
●	Funding costs improved +3 basis points
---	---

The majority of the compression attributable to the interest earning assets rate/volume mix results from the consolidation of the GSB acquisition for a full quarter (approximately 9 basis points).

Asset Quality

Credit quality continues to be exceptionally strong. Loans 30-89 days past due were $6.4 million as of September 30, 2021, compared to $3.9 million as of June 30, 2021, and $6.7 million as of September 30, 2020. Non-performing loans totaled $25.9 million as of September 30, 2021, compared to $28.3 million as of June 30, 2021, and $24.2 million as of September 30, 2020, (2020 asset quality numbers do not include GSB). Continued disciplined credit management resulted in non-performing loans as a percentage of total loans of 0.36% at September 30, 2021, compared to 0.39% at June 30, 2021, and 0.34% at September 30, 2020. Excluding the amortized cost of PPP loans, non-performing loans as a percentage of total loans was 0.37% at September 30, 2021, compared to 0.42% at June 30, 2021, and 0.38% at September 30, 2020.

^1^ See “Non-GAAP Financial Information” for reconciliation. 7

Net charge-offs totaled $0.7 million for the quarter ended September 30, 2021, compared to $1.0 million and $2.8 million for the quarters ended June 30, 2021, and September 30, 2020, respectively. The annualized ratio of third quarter net charge-offs to average loans was 0.04%. The allowance as a percentage of portfolio loans was 1.30% at September 30, 2021, compared to 1.33% at June 30, 2021, and 1.39% at September 30, 2020. Excluding the amortized cost of PPP loans, the allowance as a percentage of portfolio loans was 1.33% at September 30, 2021. The allowance as a percentage of non-performing loans was 358.86% at September 30, 2021, compared to 336.96% at June 30, 2021, and 408.82% at September 30, 2020.

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


ASSET QUALITY (Unaudited)
(dollars in thousands)

		As of and for the Three Months Ended
****		September 30,			June 30,			March 31,			December 31,			September 30,
	****	2021		****	2021		****	2021		****	2020		****	2020		****

ASSET QUALITY
Portfolio loans		$	7,150,635		$	7,185,650		$	6,779,300		$	6,814,177		$	7,121,311
Portfolio loans excluding amortized cost of PPP loans			6,972,404			6,795,255			6,257,196			6,367,774			6,384,916
Loans 30-89 days past due			6,446			3,888			9,929			7,578			6,708
Non-performing loans:
Non-accrual loans			25,369			27,725			21,706			22,930			23,898
Loans 90+ days past due and still accruing			491			590			1,149			1,371			279
Total non-performing loans		$	25,860		$	28,315		$	22,855		$	24,301		$	24,177
Total non-performing loans, segregated by geography:
Illinois / Indiana		$	17,824		$	21,398		$	15,457		$	16,234		$	15,097
Missouri			6,736			5,645			6,170			6,764			6,867
Florida			1,300			1,272			1,228			1,303			2,213
Other non-performing assets			3,184			3,137			4,292			4,571			4,978
Total non-performing assets		$	29,044		$	31,452		$	27,147		$	28,872		$	29,155

Total non-performing assets to total assets			0.23	%		0.25	%		0.25	%		0.27	%		0.28	%
Total non-performing assets to portfolio loans and non-performing assets			0.41	%		0.44	%		0.40	%		0.42	%		0.41	%
Allowance for credit losses to portfolio loans			1.30	%		1.33	%		1.39	%		1.48	%		1.39	%
Allowance for credit losses to portfolio loans, excluding PPP			1.33	%		1.40	%		1.50	%		1.59	%		1.55	%
Allowance for credit losses as a percentage of non-performing loans			358.86	%		336.96	%		411.04	%		415.82	%		408.82	%
Net charge-offs (recoveries)		$	739		$	1,011		$	309		$	934		$	2,754
Provision			(1,869)			(1,700)			(6,796)			3,141			5,549

Noninterest Income

Total noninterest income increased to $33.3 million for the third quarter of 2021, compared to $33.0 million for the second quarter of 2021 and $32.3 million for the third quarter of 2020. Revenues from wealth management fees and remittance processing activities represented 54.4% of the Company’s noninterest income for the quarter ended September 30, 2021, providing a balance to spread-based revenue from traditional banking activities. On a combined basis, revenue from these two critical operating areas increased by 24.5% compared to the third quarter of 2020.

Wealth management fees were $13.7 million for the third quarter of 2021, an increase from $13.0 million for the second quarter of 2021 and $10.5 million for the third quarter of 2020, a 30.3% increase from the comparable period in 2020. Net income from the Wealth Management segment was $4.7 million for the third quarter of 2021, a decrease from $4.9 million for the second quarter of 2021 and a 49.0% increase from $3.2 million in the third quarter of 2020. First Busey’s Wealth Management division ended the third quarter of 2021 with $12.36 billion in assets under care, compared to $12.30 billion at the end of the second quarter of 2021 and $9.50 billion at the end of the third quarter of 2020, a 30.1% increase from the comparable period in 2020.

Remittance processing revenue from the Company’s subsidiary, FirsTech, Inc., was $4.4 million for the third quarter of 2021, compared to $4.3 million for the second quarter of 2021 and $4.0 million for the third quarter of 2020, a 9.0% increase from the comparable period in 2020. The Remittance Processing operating segment generated net income of $0.4 million in the third quarter of 2021, consistent with last quarter, and down from $0.6 million in the third quarter of 2020. FirsTech generated year-to-date revenue of $14.8 million^1^ compared to $12.4 million^1^ for 2020 year-to-date. This represents an increase of 19.3%. 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 API first cloud-based platform.

Fees for customer services increased to $9.3 million for the third quarter of 2021, compared to $8.6 million in the second quarter of 2021 and $8.0 million in the third quarter of 2020, a 15.9% increase from the comparable period in 2020. Fees for customer services have been impacted since early 2020 by changing customer behaviors resulting from COVID-19 and related government stimulus programs, and continue to rebound with improving economic conditions and customer activity levels.

Mortgage revenue was $1.7 million in the third quarter of 2021, remaining consistent with the second quarter of 2021, while representing a decline from $5.8 million in the third quarter of 2020, as a result of declines in sold-loan mortgage volume.

Operating Efficiency

Total noninterest expense was $73.5 million in the third quarter of 2021 compared to $62.6 million in the second quarter of 2021 and $56.5 million in the third quarter of 2020. Noninterest expense including amortization of intangibles but excluding non-operating adjustment items^2^ was $64.8 million in the third quarter of 2021 compared to $59.9 million in the second quarter of 2021 and $54.0 million in the third quarter of 2020. As a result, the efficiency ratio^2^ was 67.27% for the quarter ended September 30, 2021, compared to 61.68% for the quarter ended June 30, 2021, and 52.42% for the quarter ended September 30, 2020. The adjusted efficiency ratio^2^ was 58.97% for the quarter ended September 30, 2021, 58.89% for the quarter ended June 30, 2021, and 49.97% for the quarter ended September 30, 2020. The Company remains focused on expense discipline and expects to see synergies from the GSB merger in the periods ahead.

Noteworthy components of noninterest expense are as follows:

●

Salaries, wages, and employee benefits were $41.9 million in the third quarter of 2021, an increase from $34.9 million in the second quarter of 2021 and $32.8 million from the third quarter of 2020. Total full-time equivalents at September 30, 2021, numbered 1,462 compared to 1,503 at June 30, 2021, and 1,371 at September 30, 2020. The Company recorded $4.7 million of non-operating salaries, wages, and employee benefit expenses in the third quarter of 2021, as compared to $1.1 million in the second quarter of 2021 and $2.0 million in the third quarter of 2020. The second quarter of 2021 included salaries, wages, and employee benefit expenses for GSB for one month, whereas the third quarter included these expenses for the full quarter, partially offset by the synergies beginning in August after the banks were merged.

●	Data processing expense increased to $7.8 million in the third quarter of 2021, compared to $4.8 million in the second quarter of 2021 and $3.9 million in the third quarter of 2020. The Company recorded $3.2 million of non-operating data processing expenses in the third quarter of 2021, compared to $0.4 million in the second quarter of 2021.

●	Professional fees decreased to $1.4 million in the third quarter of 2021, compared to $2.3 million in the second quarter of 2021 and $1.7 million in the third quarter of 2020. The Company recorded $0.1 million of non-operating professional fees in the third quarter of 2021, compared to $0.9 million in the second quarter of 2021 and $0.2 million in the third quarter of 2020.

●	Amortization expense increased to $3.1 million in the third quarter of 2021, compared to $2.7 million in the second quarter of 2021 and $2.5 million in the third quarter of 2020. The third quarter of 2021 includes a full quarter of amortization expense related to GSB.

●

Other operating expense increased to $10.8 million for the third quarter of 2021, compared to $10.2 million in the second quarter of 2021 and $7.8 million in the third quarter of 2020. The third quarter 2021 increase was across multiple expense categories. The Company recorded $0.6 million of non-operating expenses within the other operating expense line in the third quarter of 2021, compared to $0.2 million in the second quarter of 2021 and $0.4 million in the third quarter of 2020.

^1^ Revenue equates to all revenue sources tied to FirsTech (which includes professional service fees) and excludes intracompany eliminations and consolidations.

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

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 October 29, 2021, of $0.23 per common share to stockholders of record as of October 22, 2021. The Company has consistently paid dividends to its common stockholders since the bank holding company was organized in 1980.

As of September 30, 2021, the Company continued to exceed the capital adequacy requirements necessary to be considered “well-capitalized” under applicable regulatory guidelines. The Company’s tangible common equity^1^ (“TCE”) was $971.3 million at September 30, 2021, compared to $981.9 million at June 30, 2021, and $905.0 million at September 30, 2020. TCE represented 7.75% of tangible assets at September 30, 2021, compared to 8.15% at June 30, 2021, and 8.88% at September 30, 2020.^1^

During the third quarter of 2021, the Company purchased 625,000 shares of its common stock at a weighted average price of $23.66 per share for a total of $14.8 million under the Company’s stock repurchase plan. As of September 30, 2021, the Company had 953,824 shares remaining on its stock repurchase plan available for repurchase.

3Q21 Quarterly Earnings Supplement

For additional information on the Company’s response to COVID-19, financial condition, and operating results, please refer to the 3Q21 Quarterly Earnings Supplement presentation furnished via Form 8-K on October 26, 2021, in connection with this earnings release.

^1^ A Non-GAAP financial measure. See “Non-GAAP Financial Information” for reconciliation. 10

Corporate Profile

As of September 30, 2021, First Busey Corporation (Nasdaq: BUSE) was a $12.90 billion financial holding company headquartered in Champaign, Illinois.

Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation, had total assets of $12.86 billion as of September 30, 2021, and is headquartered in Champaign, Illinois. Busey Bank currently has 60 banking centers serving Illinois, 10 banking centers serving Missouri, four banking centers serving southwest Florida, and one banking center in Indianapolis, Indiana.

Busey Bank owns a retail payment processing subsidiary, FirsTech, Inc., which processes approximately 30 million transactions for a total of $9.0 billion on an annual basis. FirsTech, Inc. operates across the United States and Canada, providing payment solutions that include, but are not limited to, electronic payments, mobile payments, phone payments, remittance processing, in person payments, and merchant services. FirsTech, Inc. partners with 5,800+ agents across the U.S. More information about FirsTech, Inc. 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 September 30, 2021, assets under care were $12.36 billion.

First Busey has been named a Best Place to Work across the company footprint since 2016 by Best Companies Group. We are honored to be consistently recognized by national and local organizations 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

Non-GAAP Financial Information

This earnings release contains certain financial information determined by methods other than GAAP. These measures include adjusted pre-provision net revenue, adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted net interest margin, efficiency ratio, adjusted efficiency ratio, tangible common equity, tangible common equity to tangible assets, tangible book value per share, and return on average tangible common equity. Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of the Company’s performance and in making business decisions. Management also uses these measures for peer comparisons.

A reconciliation to what management believes to be the most direct compared GAAP financial measures, specifically total net interest income in the case of adjusted pre-provision net revenue; net income in the case of adjusted net income, adjusted diluted earnings per share, and adjusted return on average assets; total net interest income in the case of adjusted net interest margin; total noninterest income and total noninterest expense in the case of efficiency ratio and adjusted efficiency ratio; and total stockholders’ equity in the case of tangible common equity, tangible common equity to tangible assets, tangible book value per share, and return on average tangible common equity, appears below. 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 as well as comparison to the Company’s peers.

These non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for the 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 – Adjusted Pre-Provision Net Revenue (Unaudited)
(dollars in thousands, except per share data)

		Three Months Ended									Nine Months Ended
		September 30,			June 30,			September 30,			September 30,			September 30,
	****	2021		****	2021		****	2020			2021		****	2020		****
Net interest income		$	70,755		$	64,542		$	69,753		$	200,190		$	209,999
Noninterest income			33,259			33,011			32,285			97,715			87,766
Less securities (gains) and losses, net			(57)			(898)			426			(2,596)			(476)
Noninterest expense			(73,487)			(62,625)			(56,542)			(190,611)			(170,124)
Pre-provision net revenue			30,470			34,030			45,922			104,698			127,165

Adjustments to pre-provision net revenue:
Acquisition and other restructuring expenses			8,677			2,713			2,529			11,710			3,161
Provision for unfunded commitments			(978)			(496)			250			(1,068)			1,834
New Market Tax Credit amortization			1,240			1,239			—			4,308			1,200
Adjusted pre-provision net revenue		$	39,409		$	37,486		$	48,701		$	119,648		$	133,360

Average total assets		$	12,697,795		$	11,398,655		$	10,680,995		$	11,571,270		$	10,249,578

Reported: Pre-provision net revenue to average assets ^1^			0.95	%		1.20	%		1.71	%		1.21	%		1.66	%
Adjusted: Pre-provision net revenue to average assets ^1^			1.23	%		1.32	%		1.81	%		1.38	%		1.74	%

^1^^^Annualized measure.


Reconciliation of Non-GAAP Financial Measures – Adjusted Net Income, Adjusted Diluted Earnings Per Share, and Adjusted Return on Average Assets (Unaudited)
(dollars in thousands, except per share data)

		Three Months Ended									Nine Months Ended
		September 30,			June 30,			September 30,			September 30,			September 30,
	****	2021		****	2021		****	2020			2021		****	2020		****
Net income		$	25,941		$	29,766		$	30,829		$	93,523		$	71,999

Adjustments to net income:
Acquisition expenses:
Salaries, wages, and employee benefits			4,462			1,125			—			5,587			—
Data processing			3,182			368			—			3,557			—
Lease or fixed asset impairment			—			—			234			—			234
Professional fees, occupancy, and other			776			1,220			99			2,309			385
Other restructuring costs:
Salaries, wages, and employee benefits			257			—			2,011			257			2,357
Professional fees, occupancy, and other			—			—			185			—			185
Related tax benefit			(1,773)			(558)			(555)			(2,402)			(687)
Adjusted net income		$	32,845		$	31,921		$	32,803		$	102,831		$	74,473

Dilutive average common shares outstanding			56,832,518			55,730,883			54,737,920			55,872,835			54,796,354
Reported: Diluted earnings per share		$	0.46		$	0.53		$	0.56		$	1.67		$	1.31
Adjusted: Diluted earnings per share		$	0.58		$	0.57		$	0.60		$	1.84		$	1.36

Average total assets		$	12,697,795		$	11,398,655		$	10,680,995		$	11,571,270		$	10,249,578

Reported: Return on average assets ^1^			0.81	%		1.05	%		1.15	%		1.08	%		0.94	%
Adjusted: Return on average assets ^1^			1.03	%		1.12	%		1.22	%		1.19	%		0.97	%

^1^^^Annualized measure.


Reconciliation of Non-GAAP Financial Measures – Adjusted Net Interest Margin (Unaudited)
(dollars in thousands)

		Three Months Ended									Nine Months Ended
		September 30,			June 30,			September 30,			September 30,			September 30,
	****	2021		****	2021		****	2020			2021		****	2020		****
Net interest income		$	70,755		$	64,542		$	69,753		$	200,190		$	209,999

Adjustments to net interest income:
Tax-equivalent adjustment			598			579			638			1,778			2,085
Purchase accounting accretion related to business combinations			(1,799)			(1,726)			(2,618)			(5,682)			(7,922)
Adjusted net interest income		$	69,554		$	63,395		$	67,773		$	196,286		$	204,162

Average interest-earning assets		$	11,730,637		$	10,448,417		$	9,805,948		$	10,651,386		$	9,371,157

Reported: Net interest margin ^1^			2.41	%		2.50	%		2.86	%		2.54	%		3.02	%
Adjusted: Net interest margin ^1^			2.35	%		2.43	%		2.75	%		2.46	%		2.91	%

^1^^^Annualized measure.


Reconciliation of Non-GAAP Financial Measures – Efficiency Ratio and Adjusted Efficiency Ratio (Unaudited)
(dollars in thousands)

		Three Months Ended									Nine Months Ended
		September 30,			June 30,			September 30,			September 30,			September 30,
	****	2021		****	2021		****	2020			2021		****	2020
Net interest income		$	70,755		$	64,542		$	69,753		$	200,190		$	209,999
Tax-equivalent adjustment			598			579			638			1,778			2,085
Tax equivalent interest income		$	71,353		$	65,121		$	70,391		$	201,968		$	212,084

Noninterest income		$	33,259		$	33,011		$	32,285		$	97,715		$	87,766
Less security (gains) and losses, net			(57)			(898)			426			(2,596)			(476)
Adjusted noninterest income		$	33,202		$	32,113		$	32,711		$	95,119		$	87,290

Noninterest expense		$	73,487		$	62,625		$	56,542		$	190,611		$	170,124
Non-operating adjustments:
Salaries, wages, and employee benefits			(4,719)			(1,125)			(2,011)			(5,844)			(2,357)
Data processing			(3,182)			(368)			—			(3,557)			—
Impairment, professional fees, occupancy, and other			(776)			(1,220)			(518)			(2,309)			(804)
Noninterest expense, excluding non-operating adjustments			64,810			59,912			54,013			178,901			166,963
Amortization of intangible assets			(3,149)			(2,650)			(2,493)			(8,200)			(7,569)
Adjusted noninterest expense		$	61,661		$	57,262		$	51,520		$	170,701		$	159,394

Reported: Efficiency ratio			67.27	%		61.68	%		52.42	%		61.40	%		54.30	%
Adjusted: Efficiency ratio			58.97	%		58.89	%		49.97	%		57.46	%		53.24	%


Reconciliation of Non-GAAP Financial Measures – Tangible common equity, Tangible common equity to tangible assets, Tangible book value per share, Return on average tangible common equity (Unaudited)
(dollars in thousands)

		As of and for the Three Months Ended									For the Nine Months Ended
		September 30,			June 30,			September 30,			September 30,			September 30,
	****	2021		****	2021		****	2020			2021		****	2020		****
Total assets		$	12,899,330		$	12,415,449		$	10,539,628
Goodwill and other intangible assets, net			(378,891)			(381,795)			(365,960)
Tax effect of other intangible assets, net			17,115			17,997			15,239
Tangible assets		$	12,537,554		$	12,051,651		$	10,188,907

Total stockholders’ equity		$	1,333,076		$	1,345,691		$	1,255,705
Goodwill and other intangible assets, net			(378,891)			(381,795)			(365,960)
Tax effect of other intangible assets, net			17,115			17,997			15,239
Tangible common equity		$	971,300		$	981,893		$	904,984

Ending number of common shares outstanding			55,826,984			56,330,616			54,522,231

Tangible common equity to tangible assets ^1^			7.75	%		8.15	%		8.88	%
Tangible book value per share		$	17.09		$	17.11		$	16.32

Average common equity		$	1,351,416		$	1,342,771		$	1,248,448		$	1,323,571		$	1,233,348
Average goodwill and other intangible assets, net			(380,885)			(368,709)			(367,490)			(370,829)			(369,801)
Average tangible common equity		$	970,531		$	974,062		$	880,958		$	952,742		$	863,547

Reported: Return on average tangible common equity ^2^			10.60	%		12.26	%		13.92	%		13.12	%		11.14	%
Adjusted: Return on average tangible common equity ^2,^^^^3^			13.43	%		13.14	%		14.81	%		14.43	%		11.52	%

^1^^^Tax-effected measure, 28% estimated deferred tax rate.
^2^^^Annualized measure.
^3^^^Calculated using adjusted net income.

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 the impact of the current presidential administration); (ii) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics (including the COVID-19 pandemic), or other adverse external events that could cause economic deterioration or instability in credit markets; (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

October 26, 2021<br>3Q21 QUARTERLY<br>EARNINGS<br>SUPPLEMENT
2 2<br>Special Note Concerning Forward-LookingStatements<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,”<br>“plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all state ments in<br>this 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 beyon d<br>the Company’s ability to control or predict, could cause actual results to differ materially from those in the Company’s forw ard-<br>looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and<br>international economy (including the impact of the current presidential administration); (ii) the economic impact of any futu re<br>terrorist threats or attacks, widespread disease or pandemics (including the COVID -19 pandemic), or other adverse external<br>events that could cause economic deterioration or instability in credit markets; (iii) changes in state and federal laws, reg ulations<br>and governmental policies concerning the Company’s general business; (iv) changes in accounting policies and practice; (v)<br>changes in interest rates and prepayment rates of the Company’s assets (including the impact of The London Inter -bank Offered<br>Rate phase-out); (vi) increased competition in the financial services sector and the inability to attract new customers; (vii)<br>changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) the loss of key<br>executives or associates; (ix) changes in consumer spending; (x) unexpected results of current and/or future acquisitions, wh ich<br>may include failure to realize the anticipated benefits of any acquisition and the possibility that transaction costs may be greater<br>than anticipated; (xi) unexpected outcomes of existing or new litigation involving the Company; and (xii) the economic impactof<br>exceptional weather occurrences such as tornadoes, hurricanes, floods, and blizzards. These risks and uncertainties should be<br>considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional<br>information concerning the Company and its business, including additional factors that could materially affect its financial results,<br>is included in the Company’s filings with the Securities and Exchange Commission.
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3 3<br>Non-GAAP Financial Measures<br>This document contains financial information determined other than in accordance with accounting principles generally<br>accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the<br>Company’s performance. Management also believes that these non-GAAP financial measures allow for better comparability<br>of period to period operating performance. Additionally, the Company believes this information is utilized by regulators and<br>market analysts to evaluate a company’s financial condition, and therefore, such information is useful to investors. These<br>disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they<br>necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of<br>the non-GAAP measures used in this document to the most directly comparable GAAP measures is provided beginning on<br>page 37 of this document. For more details on the Company’s non-GAAP measures, refer to the Company’s Quarterly<br>Report on Form 10-Q for the quarter ended June 30, 2021.
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4 4<br>Table of Contents<br>Overview of First Busey Corporation (BUSE) 5<br>Diversified Business Model 6<br>Attractive Geographic Footprint 7<br>Experienced Management Team 8<br>Investment Highlights 9<br>Fortress Balance Sheet 10<br>Robust Capital Foundation 11<br>High Quality Loan Portfolio 12<br>Participating in the CARES Act Paycheck Protection Program 15<br>Navigating Credit Cycle from Position of Strength 16<br>Reserve Supports Credit & Growth Profile 17<br>Ample Sources of Liquidity 18<br>Quarterly Earnings Review 19<br>Core Earnings Performance 20<br>Net Interest Margin 21<br>Diversified and Significant Sources of Fee Income 22<br>Resilient Wealth Management Platform 23<br>FirsTech Growth and Expansion of Services 24<br>Continued Investment in Technology 26<br>Focused Control on Expenses 27<br>Personal Banking Transformation Plan 28<br>Appendix: Additional Loan Portfolio Detail & Update on COVID 30<br>Appendix: Use of Non-GAAP Financial Measures 37
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5 5<br>Overview of First Busey Corporation (BUSE)<br>Company Overview Branch Map<br>Primary Business Segments Financial Highlights<br>Commercial<br>Banking<br>Wealth<br>Management<br>Paym ent Technology<br>Solutions<br>• I llinois state chartered<br>bank, organized in<br>1 8 68<br>• Bank offers full suite of<br>diversified financial<br>products and services<br>for consumers and<br>bus inesses<br>• 7 5 branch locations,<br>s erving four state<br>footprint(2)<br>• P rovides premier<br>wealth and asset<br>management services<br>for individuals and<br>bus inesses<br>• $1 2.4bn Assets Under<br>C are (AUC) at<br>September 30, 2021<br>• P rovides comprehensive<br>and innovative payment<br>tec hnology solutions<br>• Solutions tailored for<br>online, mobile, walk-in,<br>C SR, direct debit,<br>loc kbox, auto phone<br>pay, V erID<br>• 30 million transactions<br>& $ 9 billion payments<br>proc essed per year<br>• 150+ year old bank headquartered in Champaign, IL<br>• Full service community bank serving Illinois, St. Louis,<br>Indianapolis, and Southwest Florida markets<br>• Diversified lending portfolio across real estate,<br>commercial, and retail products<br>• Named among the 2020 Best Banks to Work For by<br>American Banker, the 2021 Best Places to Work in Illinois<br>by Daily Herald Business Ledger, and the 2020 Best<br>Places to Work in Money Management by Pensions and<br>Investments<br>• First Busey maintains an unwavering focus on its 4 Pillars<br>– associates, customers, communities and shareholders<br>• Successfully merged Glenview State Bank into Busey<br>Bank on August 14, 2021<br>(1) Non-GAAP calculation, see Appendix (2) Does not reflect branch consolidation actions expected to occur in 4Q21<br>$ in millions 2019 2020 2021 YTD<br>Total Assets $9,696 $10,544 $12,899<br>Total Loans (Exc. HFS) 6,687 6,814 7,151<br>Total Deposits 7,902 8,678 10,818<br>Total Equity 1,220 1,270 1,333<br>NPA/Assets 0.34% 0.27% 0.23%<br>NIM 3.38% 3.03% 2.54%<br>Core PPNR ROAA(1 ) 1.76% 1.75% 1.38%<br>Core ROAA(1 ) 1.25% 1.06% 1.19%<br>Core ROATCE(1 ) 14.54% 12.47% 14.43%
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6 6<br>Online Banking<br>Credit and Debit Cards<br>Checking Services<br>Consumer Loans<br>Commercial Lending<br>Business Saving Services<br>Personal<br>Business<br>Mortgage Banking<br>Mobile Banking<br>Diversified Business Model<br>Investment Services<br>Investment Management<br>Financial Goals<br>Private Client<br>Business Planning<br>Business Checking Services<br>Merchant Services Solutions<br>Custom Consulting<br>Lockbox Processing<br>Payment Concentrator Processing<br>Verid<br>Walk-In Payments<br>Online Bill Payments<br>Mobile Payments<br>Direct Debit<br>Business Solutions<br>Payment Solutions<br>Investment Advisory<br>Banking the intersection of commercial and wealth<br>$12.9 Billion Assets $12.4 Billion AUC $9.0 Billion Payments Processed(1)<br>(1) Annual payments processed
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7 7<br>Banking<br>Centers:<br>4<br>Deposits:<br>$442.5MM<br>Avg. Deposits<br>Per Branch:<br>$110.6MM<br>2021-26 Pop.<br>Growth:<br>5.9% versus<br>U.S. avg. 2.9%<br>Banking<br>Centers:<br>24<br>Deposits:<br>$2.9B<br>Avg. Deposits<br>Per Branch:<br>$119.3MM<br>2021 Pop:<br>2.8 Million<br>Attractive Geographic Footprint<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>US Census Claritas data as of 9.30.20. 2021 FDIC Summary of Deposits<br>Exhibits above depict the First Busey franchise as of 9.30.21 and does not reflect branch consolidation actions expected to occur in 4Q21. Upon completion of the anticipated branch consolidation we estimate<br>that our average deposits per branch will increase to $187 million from $144 million (see page 28 for more detail)<br>Banking<br>Centers:<br>15<br>Deposits:<br>$2.4B<br>Avg. Deposits<br>Per Branch:<br>$161.0MM<br>Median HHI:<br>$76,758<br>Banking<br>Centers:<br>32<br>Deposits:<br>$4.7B<br>Avg. Deposits<br>Per Branch:<br>$147.2MM<br>DMS Rank:<br>Top 5 in 7 out of<br>8 IL Markets
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8 8<br>Experienced Management Team<br>Van A. Dukeman<br>Chairman, President & Chief Executive Officer, First Busey Corporation<br>Robin N. Elliott<br>President & CEO,<br>Busey Bank<br>Jeffrey D. Jones<br>EVP & CFO<br>Robert F. Plecki, Jr.<br>EVP, Chief Banking Officer<br>John J. Powers<br>EVP & General Counsel<br>Monica L. Bowe<br>EVP & Chief Risk Officer<br>Has served as President & CEO of First Busey since 2007. Mr. Dukeman was<br>President & CEO of Main Street Trust from 1998 until its merger with First<br>Busey in 2007.<br>In addition to his role as President & CEO, Mr. Dukeman became Chairman of<br>the Holding Company Board effective July 22, 2020.<br>Mr. Dukeman’s 40 years of diverse financial services experience and extensive<br>board involvement throughout his career brings a conservative operating<br>philosophy and a management style that focus on Busey’s associates,<br>customers, communities and shareholders.<br>Joined Busey in 2006 and<br>led various finance functions<br>prior to serving as CFO/COO<br>and now Bank<br>President/CEO.<br>Mr. Elliott has played<br>instrumental roles in<br>executing various strategic<br>and growth initiatives.<br>Before joining Busey, Mr.<br>Elliott worked for various<br>national public accounting<br>firms, including Ernst &<br>Young.<br>Joined Busey in August 2019,<br>bringing his nearly 20 years<br>of investment banking and<br>financial services experience<br>to Busey.<br>Mr. Jones previously served<br>as Managing Director and Co-<br>Head of Financial Institutions<br>at Stephens Inc.<br>Mr. Jones began his career in<br>the Banking Supervision and<br>Regulation division of the<br>Federal Reserve.<br>Joined Busey in 1984 and has<br>served in the role of Chief Credit<br>Officer or Chief Banking Officer of<br>First Busey since 2010 as well as<br>serving as the Chair of Credit<br>Committees.<br>Mr. Plecki previously served as<br>President & CEO of Busey Wealth<br>Management, COO, and EVP of the<br>Florida and Champaign market.<br>Prior to the 2007 merger with First<br>Busey, Bob served in various<br>management roles at Main Street<br>Trust.<br>Highly experienced board with<br>nearly 150 years of combined<br>director experience<br>Management aligned with<br>shareholders (insider<br>ownership of 7.2%)<br>Amy L. Randolph<br>Chief of Staff & EVP of<br>Pillar Relations
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9 9<br>Investment Highlights<br>• Established in 1868, with more than 150 years of commitment to local communities and businesses<br>• Operating with 75 branches across four states: Illinois, Missouri, Indiana, and Florida<br>• Experienced and proven management team<br>• Attractive and diverse business strategy with premier commercial bank, wealth management, and payment<br>technology solutions for individuals and businesses<br>Attractive<br>Franchise<br>Sound Growth<br>Strategy<br>Valuable Core<br>Deposit Base<br>Fortress<br>Balance Sheet<br>Growth in<br>High Quality<br>Loan Portfolio<br>Diversified<br>Revenue<br>• Drive organic growth through regional operating model with highly aligned commercial and wealth<br>relationship focused strategies coupled with accelerating growth in FirstTech operations<br>• Leverage track record as proven successful acquirer to expand through disciplined M&A<br>• Attractive core deposit to total deposit ratio (98.5%) (1 )<br>• Low cost of total deposits (11 bps) and cost of non-time deposits (6 bps) in 3Q21<br>• Strengths in commercial & industrial, commercial real estate, and residential real estate lending<br>• Highly diversified loan portfolio without material loan concentrations and strong asset quality<br>• Q/Q core loan growth (ex-PPP) of $177 million (2.6% Q/Q growth). This follows second quarter Q/Q core<br>loan growth (ex-PPP) of $142 million (2.3% Q/Q growth)<br>• Loan pipelines at 9/30/21 more than double where they were at the beginning of the year<br>• Significant revenue derived from diverse and complementary fee income sources<br>• Noninterest income / revenue of 32% 3Q21<br>• Wealth management and payment technology solutions account for 54% of noninterest income<br>• Capital levels significantly in excess of well-capitalized requirements<br>• Strong asset quality metrics<br>• High quality, short duration securities portfolio and asset sensitive balance sheet<br>(1) Core Deposits include non-brokered transaction accounts, money market deposit accounts, and time deposits of $250,000 or less<br>(2) Non-GAAP calculation, see Appendix (3) Based on BUSE closing stock price on October 25, 2021<br>Attractive<br>Profitability<br>and Returns<br>• Adjusted ROAA & ROATCE 1.03%(2 ) and 13.43%(2 ) 3Q21<br>• Adjusted Efficiency Ratio 59.0%(2 ) 3Q21<br>• Adjusted diluted EPS $0.58(2 ) 3Q21 and quarterly dividend of $0.23 (3.49% yield)(3 )
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10 10<br>• TCE/TA ratio of 7.75% at 9/30/21(1 )<br>• Capital ratios significantly in excess of well-capitalized minimums<br>- Total RBC of 15.9% and CET1 ratio of 11.9% at 9/30/21<br>• TBV per share of $17.09 at 9/30/21(1 ), representing 3-year CAGR of 7.6%<br>• Diversified portfolio, conservatively underwritten with low levels of concentration<br>• Non-performing (0.23% of total assets) and classified assets (6.1% of capital) both at<br>multi-year lows<br>• Substantial reserve build under CECL → ACL/Loans: 1.33%(2 ) ACL/NPLs: 358.86%<br>• No remaining full-payment deferrals under COVID-related modification programs<br>• 100 / 300 Test: 33% C&D 205% CRE<br>• Robust holding company and bank-level liquidity<br>• Strong core deposit franchise further bolstered by recently closed GSB acquisition<br>– 66.1% loan-to-deposit ratio, 98.5% core deposits (3 )<br>• Borrowings accounted for approximately 5.2% of total funding at 9/30/21<br>• Substantial sources of off-balance sheet contingent funding ($3.4 billion)<br>Fortress Balance Sheet<br>(1) Non-GAAP calculation, see Appendix<br>(2) Excluding amortized cost of PPP loans<br>(3) Core Deposits include non-brokered transaction accounts, money market deposit accounts, and time deposits of $250,000 or less<br>Robust<br>Capital<br>Foundation<br>High Quality,<br>Resilient<br>Loan<br>Portfolio<br>Strong Core<br>Deposit<br>Franchise &<br>Ample<br>Liquidity
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11 11<br>Leverage Ratio (2)<br>$964<br>$983<br>$1,008<br>$1,062 $1,061<br>9.4% 9.8% 9.8% 9.6%<br>8.6%<br>4%<br>2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br> Tier 1 Capital Leverage Ratio Min Ratio<br>$ in millions<br>Robust Capital Foundation<br>(1) Non-GAAP calculation, see Appendix<br>(2) 3Q21 Capital Ratios are preliminary estimates<br>$ in millions<br>Capital Ratio (9/30/21) 15.9% 12.8% 11.9%<br>Minimum Well Capitalized Ratio 10.0% 8.0% 6.5%<br>Amount of Capital $1,321 $1,065 $991<br>Well Capitalized Minimum $826 $661 $537<br>Excess Amount over Well-Capitalized Min $488 $400 $450<br>Total<br>Capital<br>Ratio<br>Tier 1<br>Capital<br>Ratio<br>Common<br>Equity Tier<br>1 Ratio<br>Consolidated Capital as of 9/30/2021 ⁽²⁾<br>Total Capital Ratio (2)<br>$ in millions<br>$737 $731 $728 $806 $826<br>$489 $515 $538 $517 $488<br>16.6% 17.0% 17.4%<br>16.4% 15.9%<br>10%<br>2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br> Well Cap Min Excess over Min Total Capital Ratio Min Ratio<br>$ in millions ($ in millions)<br>Tangible Common Equity Ratio (1)<br>$905<br>$921 $919<br>$982<br>$971<br>8.9% 9.0% 8.8%<br>8.2% 7.8%<br>2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br> TCE TCE Ratio<br>$ in millions
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12 12<br>High Quality Loan Portfolio<br>(1) Based on loan origination (2) Excludes Credit Card and Overdraft Protection and includes tranche loan commitments and associated sub notes (3) 2Q21 Busey ex-PPP growth ex-GSB acquisition<br>2Q21 CAGR<br>9.1%<br>Loan Portfolio Geographic Segmentation (1)<br>Missouri<br>21%<br>Indiana<br>4%<br>Illinois<br>69%<br>Florida<br>6%<br>Ex-PPP Loan Trends<br>$1,545 $1,664 $1,754<br>$2,913 $2,920 $3,069<br>$423 $501 $431<br>$1,376<br>$1,710 $1,719<br>$6,257<br>$6,795 $6,972<br>1Q21 2Q21 3Q21<br>C&I Coml RE RE Construction Retail RE & Other Ex-PPP CAGR %<br>$ in millions<br>MRQ Yield on Loans = 3.64%<br>Total Loan Portfolio = $7.2 billion<br>Loan Portfolio Composition as of 9/30/2021<br>Commercial<br>& Industrial<br>27%<br>Owner<br>Occupied<br>CRE<br>13%<br>Non-Owner<br>Occupied<br>CRE<br>30%<br>Construction &<br>Development<br>6%<br>1-4 Family<br>Residential<br>17%<br>HELOCs<br>4%<br>Other<br>3%<br>Funded Draws & Line Utilization Rate (2)<br>$1,617 $1,626 $1,570 $1,659 $1,748<br>$372 $351 $329<br>$376 $375<br>$1,989 $1,977 $1,899<br>$2,035 $2,123<br>56% 55% 54% 55%<br>56%<br>$1<br>$501<br>$1,001<br>$1,501<br>$2,001<br>$2,501<br>Sep-20 Dec-20 Mar-21 Jun-21 Sep-21<br>Commercial Retail % Utilized (total)<br>$ in millions<br>3Q21 CAGR<br>10.3% 2Q21 CAGR<br>9.1%(3)
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13 13<br>High Quality Loan Portfolio: C&I<br>C&I Portfolio Overview<br>▪ 25.1% 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 16% of C&I loans,<br>or 4% of total loans<br>▪ Only 2.1% of C&I loans are classified<br>▪ YTD growth of C&I loans (ex-PPP) of $207<br>million (includes $66 million of acquired C&I<br>loans from Glenview State Bank)<br>(1) (ex-PPP) loan totals include purchase accounting, FASB, overdrafts, etc.<br>Total C&I Loans (1)<br>$1,545 $1,569 $1,546<br>$1,664<br>$1,753<br>2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br>$ in millions<br>$ in thousands<br>NAICS Sector<br>9/30/21<br> Balances<br>(ex-PPP)<br>% of Total<br>Loans<br>(ex-PPP)<br>9/30/21<br>Classified<br>Balances<br>Manufacturing $288,492 4.1% $6,522<br>Finance and Insurance $205,215 2.9% $0<br>Wholesale Trade $176,479 2.5% $289<br>Construction $175,627 2.5% $3,553<br>Educational Services $166,401 2.4% $122<br>Real Estate Rental & Leasing $150,686 2.2% $1,367<br>Health Care and Social Assistance $134,835 1.9% $5,676<br>Agriculture, Forestry, Fishing and Hunting $99,479 1.4% $1,627<br>Public Administration $82,009 1.2% $0<br>Retail Trade $67,549 1.0% $4,516<br>Food Services and Drinking Places $43,733 0.6% $271<br>Professional, Scientific, and Technical Services $37,621 0.5% $5,904<br>Transportation $31,340 0.4% $1,836<br>Other Services (except Public Administration) $30,825 0.4% $55<br>Administrative and Support Services $18,252 0.3% $2,459<br>Arts, Entertainment, and Recreation $17,130 0.2% $2,066<br>Information $9,229 0.1% $0<br>Waste Management Services $6,484 0.1% $0<br>Mining, Quarrying, and Oil and Gas Extraction $5,625 0.1% $0<br>Accommodation $3,809 0.1% $0<br>Management of Companies and Enterprises $1,521 0.0% $0<br>Utilities $987 0.0% $0<br>Warehousing and Storage $113 0.0% $0<br>Grand Total $1,753,442 25.1% $36,264<br>C&I Loans by Sector (ex-PPP)
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14 14<br>High Quality Loan Portfolio: CRE<br>CRE Portfolio Overview<br>▪ 50% of total loan portfolio (ex-PPP)<br>▪ 26% of CRE loans are owner-occupied<br>▪ Only 0.8% of total CRE loans and 0.4% of non-owner<br>occupied CRE loans are classified<br>▪ Low Levels of Concentrated Exposure<br>▪ Office CRE top concentration at 16% of total<br>CRE portfolio<br>Investor Owned CRE Loans by Industry (1) Owner Occupied CRE Loans by Industry<br>Multifamily - Apartments & Student Housing by State<br>$ in thousands<br>• 62.1% Weighted Avg.<br>LTV<br>• $13.6MM as of 9/30/21<br>in active deferrals,<br>representing 1.6% of the<br>category balance<br>• 63.5% are long-term<br>Busey customers (4+ yrs)<br>• 0.2% Classified Loans in<br>Segment<br>(1) Investor owned CRE includes C&D, Multifamily and non-owner occupied CRE<br>Property Type<br>9/30/21<br>Balances<br>% of Total<br>Loans<br>(ex-PPP)<br>9/30/21<br>Classified<br>Balances<br>Industrial/Warehouse $311,102 4.5% $8,338<br>Specialty CRE $249,390 3.6% $2,812<br>Office CRE $205,652 2.9% $1,906<br>Retail CRE $71,013 1.0% $839<br>Restaurant CRE $60,645 0.9% $2,668<br>Nursing Homes $1,623 0.0% $0<br>Health Care $1,201 0.0% $0<br>Apartments $1,038 0.0% $0<br>Hotel $630 0.0% $0<br>Student Housing $109 0.0% $0<br>Other CRE $665 0.0% $0<br>Grand Total $903,067 13.0% $16,564<br>Missouri<br>11% Florida<br>4%<br>Indiana<br>14%<br>Illinois<br>61%<br>Other<br>10%<br>Property Type<br>9/30/21<br>Balances<br>% of Total<br>Loans<br>(ex-PPP)<br>9/30/21<br>Classified<br>Balances<br>Retail CRE $475,748 6.8% $1,210<br>Apartments $461,108 6.6% $1,609<br>Office CRE $367,554 5.3% $48<br>Student Housing $362,356 5.2% $0<br>Industrial/Warehouse $250,137 3.6% $115<br>Senior Housing $187,558 2.7% $0<br>Hotel $168,222 2.4% $505<br>Land Acquisition & Dev. $91,247 1.3% $2,400<br>Specialty CRE $74,952 1.1% $47<br>Nursing Homes $63,289 0.9% $5,487<br>Restaurant CRE $26,970 0.4% $0<br>Health Care $20,000 0.3% $0<br>1-4 Family $19,418 0.3% $0<br>Continuing Care Facilities $14,601 0.2% $0<br>Other CRE $787 0.0% $0<br>Grand Total $2,583,947 37.1% $11,421
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15 15<br>▪ As part of the CARES Act, Congress appropriated approximately $349 billion for the creation of the Paycheck<br>Protection Program (PPP) as well as approving on April 24, 2020 an additional $310 billion for the PPP<br>▪ On December 27, 2020, the Economic Aid Act became law, extending the authority to make PPP loans through<br>March 31, 2021, and revising certain PPP requirements and program provisions<br>▪ On March 30, 2021, the President signed the PPP Extension Act of 2021, which extended the application deadline to<br>May 31, 2021<br>▪ Busey originated $749.4 million in first round PPP<br>loans and acquired an additional $15.8 million GSB<br>first round loans representing 4,595 new and<br>existing customers<br>▪ Busey originated $296.9 million in second round<br>PPP loans and acquired an additional $27.7 million<br>GSB second round loans representing 2,753 new<br>and existing customers<br>▪ $183.1 million PPP loans outstanding as of<br>9/30/2021 ($178.2 million, net of deferred fees and<br>costs)<br>▪ $895.5 million of borrower forgiveness funds<br>received from SBA as of 9/30/2021<br>▪ Generated fees of approximately $25.4 million in<br>2020 related to the CARES Act<br>• Remaining deferred fees of $0.06 million and<br>$0.02 million deferred costs as of 9/30/2021<br>▪ Fees generated of approximately $13.5 million<br>related to the Economic Aid Act<br>• Remaining deferred fees of $6.1 million and<br>$1.3 million deferred costs as of 9/30/2021<br>Participating in the CARES Act Paycheck Protection Program<br>Summary Impact<br>Small Business Applications & Loan Funding<br>Industry $ in t h ou sands<br>PPP<br>Balances<br># of PPP<br>Loans<br>Average<br>Loan Size<br>Construction $32,465 180 $180<br>Food Services and Drinking Places $24,551 185 $133<br>Professional, Scientific, and Technical Services $19,380 175 $111<br>Health Care and Social Assistance $17,325 143 $121<br>Manufacturing $16,766 77 $218<br>Other Services (except Public Administration) $15,234 197 $77<br>Retail Trade $14,013 116 $121<br>Accommodation $7,241 22 $329<br>Administrative and Support Services $6,542 72 $91<br>Wholesale Trade $6,195 43 $144<br>Arts, Entertainment, and Recreation $5,491 69 $80<br>Transportation $4,952 53 $93<br>Agriculture, Forestry, Fishing and Hunting $2,489 113 $22<br>Real Estate Rental & Leasing $2,480 69 $36<br>Finance and Insurance $2,169 40 $54<br>Information $2,011 16 $126<br>Educational Services $1,860 25 $74<br>Other $946 13 $73<br>Mining, Quarrying, and Oil and Gas Extraction $728 2 $364<br>Public Administration $129 2 $65<br>Management of Companies and Enterprises $101 1 $101<br>Waste Management Services $40 2 $20<br>Grand Total $183,110 1,615 $113
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16 16<br>Navigating Credit Cycle from Position of Strength<br>Overview<br>▪ Conservative underwriting and strong asset<br>quality allowed the Company to enter the<br>economic downturn well-prepared<br>▪ Non-performing asset and classified asset ratios<br>have declined to multi-year lows<br>▪ Net charge-off experience has remained stable<br>in range of 0.04% to 0.13% over the last three<br>years<br>• 3Q21 annualized NCO ratio of 0.04%<br>(1) Capital calculated as Busey Bank Tier 1 Capital + Allowance for credit losses (2) 9/30/2021 NCOs/Average Loans is annualized (quarterly NCO ratio is 0.01%)<br>NPAs / Assets<br>$7,702<br>$9,696<br>$10,544<br>$12,899<br>0.48%<br>0.34% 0.27% 0.23%<br>2018 Q4 2019 Q4 2020 Q4 2021 Q3<br>Assets %NPAs/Assets<br>Classifieds / Capital (1) NCOs / Average Loans (2)<br>$854<br>$1,099 $1,155<br>$1,314<br>14.3%<br>9.7%<br>8.5%<br>6.1%<br>2018 Q4 2019 Q4 2020 Q4 2021 Q3<br> Capital Classified/Capital<br>$5,534<br>$6,470<br>$7,007 $6,921<br>0.13% 0.11% 0.12%<br>0.04%<br>2018 2019 2020 2021 Q3 YTD<br> Avg Loans NCOs/Avg Loans
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17 17<br>Reserve Supports Credit & Growth Profile<br>Allowance / NPLs<br>Allowance / NPAs Allowance / Loans (ex-PPP)<br>$5,568<br>$6,687 $6,368<br>$6,972<br>0.91%<br>0.80%<br>1.59%<br>1.33%<br>2018 Q4 2019 Q4 2020 Q4 2021 Q3<br>Ex-PPP Loans (EOM) Allowance/Ex-PPP Loans<br>$36,598<br>$29,507<br>$24,301<br>$25,860<br>138%<br>182%<br>416% 359%<br>2018 Q4 2019 Q4 2020 Q4 2021 Q3<br> NPLs Allowance/NPLs<br>$36,974<br>$32,564<br>$28,872 $29,044<br>137%<br>165%<br>350%<br>320%<br>2018 Q4 2019 Q4 2020 Q4 2021 Q3<br> NPAs Allowance/NPAs<br>Overview<br>▪ Reserve level of 1.33% (ex-PPP), clean<br>credit profile, and anticipated growth should<br>enable the ability to grow into our current<br>reserve levels<br>• Day 1 CECL estimate was 1.06%<br>▪ Approximately $4.4 million of NPLs were<br>acquired in the GSB acquisition<br>▪ Excluding acquired NPLs, non-performing<br>loan balances have continued to decline
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18 18<br>Ample Sources of Liquidity<br>(1) Core Deposits include non-brokered transaction accounts, money market deposit accounts, and time deposits of $250,000 or less<br>Total Deposits & Loan to Deposit Ratio<br>$8,643 $8,678 $8,874<br>$10,337 $10,818<br>82.4% 78.5% 76.4%<br>69.5% 66.1%<br>2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br> Total Deposits Loan to Deposit Ratio<br>$ in millions<br>($ in millions)<br>Core Deposits(1) / Total Deposits<br>$8,392 $8,478 $8,711<br>$10,203 $10,656<br>97.1%<br>97.7% 98.2% 98.7% 98.5%<br>2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br> Core Deposits Core/Total Deposits<br>$ in millions $ in millions<br>Unpledged Securities $3,563<br>Available FHLB $1,216<br>FRB Discount $604<br>Fed Funds Lines $467<br>Brokered Availability (10% deposits) $1,079<br>Total $6,929<br>Contingency Liquidity as of 9/30/21<br>2021 Q3 Average Deposit Composition<br>Non-Int<br>DDA<br>32%<br>Int<br>DDA<br>26%<br>Savings<br>& MMDA<br>32%<br>CD <<br>250k<br>9%<br>CD ><br>250k<br>1%<br>2021 Q3 Average Cost of Deposits = 0.11%<br>2021 Q3 Average Cost of Non-Time Deposits = 0.06%
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19 19<br>• Net Interest Income increased from $64.5 million in 2Q21 to $70.8 million in 3Q21<br>• The 3rd quarter represented a full quarter contribution to net interest income from the Glenview State<br>Bank transaction<br>• Loan interest income and fees (net of deferred costs) attributable to PPP increased to $5.2 million in<br>3Q21 from $4.3 million in 2Q21<br>• Net Interest Margin decreased 9 bps vs 2Q21 from 2.50% to 2.41% in 3Q21<br>Noninterest<br>Expense<br>• Noninterest income of $33.3 million in 3Q21, equated to 32.0% of revenue in 3Q21<br>• Wealth Management fees rose to $13.7 million in 3Q21, up 30.3% Y-o-Y, with record AUC of $12.4 billion<br>• Remittance processing revenue of $4.4 million in 3Q21, up 9.0% Y-o-Y<br>• Fees for customer services were $9.3 million in 3Q21, an increase from $8.6 million in 2Q21 and $8.0<br>million in 3Q20<br>• Mortgage revenue of $1.7 million in 3Q21 was flat compared to $1.7 million in 2Q21 consistent with<br>expectations given higher on-balance sheet retention<br>• Adjusted noninterest expense (1) (excluding amortization of intangibles, one-time acquisition and<br>restructuring related items) of $61.7 million in 3Q21, equating to 59.0% adjusted efficiency ratio (1)<br>• Core adjusted noninterest expense (2) of $61.4 million (excluding amortization of intangible assets, unfunded<br>commitment provision, NMTC amortization, and one-time items) in 3Q21, equating to 58.7% core adjusted<br>efficiency ratio(2)<br>• Adjusted net income of $32.8 million or $0.58 per diluted share (1)<br>• Adjusted pre-provision net revenue of $39.4 million (1.23% PPNR ROAA) (1)<br>• 1.03% Adjusted ROAA and 13.4% Adjusted ROATCE (1)<br>Earnings<br>Noninterest<br>Income<br>Net Interest<br>Income<br>Quarterly Earnings Review<br>Provision<br>• $1.9 million negative loan loss provision expense<br>• $1.0 million negative provision for unfunded commitments (captured in other noninterest expense)<br>• NCOs in 3Q21 of $0.7 million (0.04% annualized NCOs / Avg. Loans)<br>(1) Non-GAAP, see Appendix (2) Non-GAAP, see Appendix, further adjusted for negative provision for unfunded commitments and NMTC amortization
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20 20<br>Earnings Performance<br>(1) Non-GAAP calculation, see Appendix<br>Adjusted ROAA & ROATCE (1)<br>Adjusted Pre-Provision Net Revenue / Avg. Assets (1)<br>Adjusted Net Income & Earnings Per Share (1)<br>14.8% 15.2%<br>16.9%<br>13.1% 13.4%<br>1.22%<br>1.31%<br>1.46%<br>1.12%<br>1.03%<br>2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br>Adj. ROATCE Adj. ROAA<br>$32,803 $34,255<br>$38,065<br>$31,921 $32,845<br>$0.60 $0.62<br>$0.69<br>$0.57 $0.58<br>2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br> Adj. Net Income Adj. Earnings Per Share<br>$48,701 $47,156<br>$42,753<br>$37,486 $39,409<br>1.81% 1.80% 1.64%<br>1.32% 1.23%<br>2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br> Adj. PPNR Adj. PPNR / Avg Assets<br>Historical Key Rates<br>0.15% 0.14% 0.12%<br>0.10% 0.08% 0.13% 0.13% 0.16%<br>0.25% 0.30% 0.28%<br>0.36%<br>0.92% 0.87%<br>1.01%<br>0.72%<br>0.92%<br>1.70%<br>1.45% 1.53%<br>9/30/20 12/31/20 3/31/21 6/30/21 9/30/21<br>1m LIBOR 2-yr UST 5-yr UST 10-Yr UST
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21 21<br>Net Interest Margin<br>$64,579 $61,705 $61,620 $58,574 $59,090<br>$64,378<br>$2,477<br>$2,618 $2,469<br>$2,157 $1,726<br>$1,799<br>$4,474<br>$6,068 $9,502<br>$4,763 $4,306<br>$5,175<br>$71,530 $70,391<br>$73,591<br>$65,494 $65,121<br>$71,353<br>2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br>Net Interest Income Accretion PPP Income (Net fees + coupon)<br>$ in thousands<br>Net Interest Margin Bridge Net Interest Margin<br>3.26% 3.41%<br>3.03%<br>2.77% 2.65%<br>0.42% 0.37% 0.33% 0.29% 0.25%<br>2.86% 3.06% 2.72%<br>2.50% 2.41%<br>0.11% 0.10% 0.09% 0.06% 0.06%<br>2.82% 2.85% 2.66% 2.45%<br>2.30%<br>2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br>Earning Assets Cost of Funds NIM Accretion Ex-PPP NIM(2)<br>Net Interest Income(1)<br>2.41%<br>- Existing loans amortize and paydown at higher rates than new loan<br>production<br>Rate Roll<br>- Full quarter of Glenview State Bank drove the 9 bps reduction in NIM<br>compared to 2Q21<br>Contribution from GSB<br>+ New loan volume yields in 3Q21 were 17 bps higher than in 2Q21,<br>while net new funding yields (inclusive of line utilization changes)<br>were 6 bps higher<br>New Loan Volume Yields<br>+ PPP contribution increased $0.9 million mainly due to full forgiveness of<br>loans as average balances declined to $292mm from $496mm in 2Q21<br>PPP Income<br>+ Portfolio yield stabilized in 3Q21 (1.33% v. 1.36% in 2Q21) while $480<br>million of deposit-driven excess liquidity growth pressured NIM<br>Securities Portfolio & Excess Liquidity<br>(1) Tax-Equivalent adjusted amounts (2) Ex-PPP NIM removes the balance of PPP loans and associated income as well as the equivalent amount of self-funding noninterest bearing deposits
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22 22<br>Overview<br>▪ Resilient, varied, and complimentary sources of fee<br>income provide revenue diversification with<br>heightened value amidst cycle of margin<br>compression<br>▪ Noninterest income represented 32.0% of revenue<br>in 3Q21 (31.9% excl. securities gains)<br>▪ Key businesses of wealth management and<br>payment processing contributed 54% of noninterest<br>income in 3Q21<br>▪ Y-o-Y increase in 3Q fee income broad-based with<br>increases in wealth management, remittance<br>processing and fees for customer services<br>Diversified and Significant Sources of Fee Income<br>(1) Non-GAAP calculation, see Appendix<br>Noninterest Income / Total Revenue<br>$ in thousands<br>9/30/20 9/30/21 Change (%)<br>Wealth Management Fees $32,296 $39,335 21.8%<br>Fees for Customer Services $23,400 $25,936 10.8%<br>Remittance Processing $11,466 $13,122 14.4%<br>Mortgage Revenue $9,879 $6,153 -37.7%<br>Income on Bank Owned Life Insurance $4,361 $3,439 -21.1%<br>Net Security Gains $476 $2,596 445.4%<br>Other Noninterest Income $5,888 $7,134 21.2%<br>Total Noninterest Income $87,766 $97,715 11.3%<br>Noninterest Income Details<br>Sources of Noninterest Income (YTD)<br>Wealth<br>Management<br>Fees<br>40%<br>Fees for<br>Customer<br>Services<br>27%<br>Remittance<br>Processing<br>13%<br>Mortgage<br>Revenue<br>6%<br>Income on<br>Bank Owned<br>Life Insurance<br>4%<br>Net Security<br>Gains<br>3%<br>Other<br>Noninterest<br>Income<br>7%<br>Y-o-Y growth: Wealth Management, Customer Service, and Remittance Fees 16.7%<br>$32.3 $30.5 $31.4 $33.0 $33.3<br>$102.0 $103.4<br>$96.3 $97.6<br>$104.0<br>31.6% 29.5%<br>32.6% 33.8% 32.0%<br>2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br>Non-Interest Income Net Interest Income Non-Int Inc / Total Income
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23 23<br>Resilient Wealth Management Platform<br>Overview<br>▪ Provides a full range of asset management,<br>investment and fiduciary services to<br>individuals, businesses and foundations, tax<br>preparation, philanthropic advisory services<br>and farm and brokerage services<br>Third Quarter 2021 Summary<br>▪ Consolidated assets under care reached an<br>all-time high of $12.4 billion, representing a<br>Y-o-Y increase of $2.9 billion, or 30.1%, due<br>to the acquisition of Glenview State Bank’s<br>$1.28 billion of AUC and organic and market<br>related growth of over $1.6 billion<br>▪ Wealth Management brought in $205 million<br>of new assets during 3Q21, bringing the<br>YTD total to $856 million, representing a<br>114% increase over the like period in 2020<br>▪ Consolidated Wealth revenue of $13.7<br>million in 3Q21, a 28.9% Y-o-Y increase<br>over 3Q20, represents annualized run-rate<br>of $55 million in revenue<br>▪ Consolidated Wealth pre-tax net income of<br>$6.1 million in 3Q21, a 45.7% Y-o-Y<br>increase over 3Q20<br>(1) Wealth Management Segment<br>Wealth - Assets Under Care<br>$9,503<br>$10,228<br>$10,692<br>$12,303 $12,364<br>2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br>Wealth – Revenue & Pre-tax Income (1)<br>$10,662 $10,748<br>$12,587 $13,000<br>$13,746<br>$4,165 $4,387<br>$6,022 $6,283 $6,068<br>39.1%<br>40.8%<br>47.8% 48.3%<br>44.1%<br>2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br> Revenue Pre-Tax Net Income Pre-Tax Profit Margin
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24 24<br>FirsTech Growth and Expansion of Services<br>Overview<br>▪ FirsTech provides custom payment processing<br>solutions through a comprehensive suite of<br>capabilities including mobile bill pay, walk-in<br>payment processing, lockbox, online bill pay,<br>IVR; and electronic concentration of payments<br>delivered via ACH, money management<br>software and credit card networks<br>2021 YTD Summary<br>▪ FirsTech revenue of $14.8(1 ) million during<br>2021 YTD, an increase of 19.3% over linked<br>period 2020<br>▪ Exceptional customer retention continues to<br>solidify core relationships (98%)<br>Key Initiatives<br>▪ Recent hiring of seasoned technology and<br>software executives has paved the way for a<br>strategy focused on growth through expansion<br>of services across FirsTech’s enterprise client<br>base and innovation in the payments space<br>enabling businesses to connect with<br>consumers through multiple payment methods<br>▪ Continue to foster and grow relationships with<br>current clients<br>▪ Expand existing and new product offerings<br>with current and future clients<br>▪ Enhance existing products and services with<br>new technology that will expand FirsTech’s<br>footprint in Fin-Tech area<br>Revenue Growth(1)<br>Multi-Layered Payment Technology<br>Solutions Platform<br>(1) Revenue equates to all revenue sources tied to FirstTech (which includes professional service fees) and excludes intraco mpany eliminations and consolidations<br>3Q20 YTD 3Q21 YTD<br>$12.4<br>million<br>$14.8<br>million<br>+ 19.3%
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25 25<br>Scalable Payment Technology Solutions Platform<br>Customer Overview FirstTech Today<br>Total Addressable Market(1)<br>(1) Total addressable market per The 2019 Federal Reserve Payment Study.<br>500<br>years<br>Combined years of experience<br>in technology / payments<br>Transactions processed<br>per year<br>30<br>Million<br>$9.0<br>Billion<br>Payments processed<br>annually<br>Customers across<br>numerous industries<br>and growing<br>150+<br>Large utilities<br>Insurance<br>Banks<br>Credit Unions<br>Number of non-cash<br>payment transactions in<br>United States per year<br>174<br>Billion<br>Value of non-cash<br>payments in United<br>States per year<br>$97<br>Trillion<br>The Opportunity<br>Telecom<br>Average FirstTech customer utilizes only 1.9<br>payment solutions out of an available 9<br>< 5% of current commercial bank customers<br>utilize a specific FirstTech payment solution<br>Near<br>Term<br>Intermediate<br>Term<br>Expand outside the Busey ecosystem with<br>Pay Anywhere and Banking as a Service<br>(BaaS) initiatives – business development<br>recently hired to drive this initiative
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26 26<br>Continued Investment in Technology<br>Enterprise project<br>management tool<br>2Q 2018<br>4Q 2018<br>Interactive board portal<br>software<br>Cloud-based software to<br>manage / secure identities<br>1Q 2019<br>3Q 2019<br>nCino Treasury<br>Management implemented<br>Core Operating Platform<br>Conversion<br>4Q 2019<br>4Q 2019<br>Enterprise-wide CRM system<br>installed<br>Upgraded Treasury<br>Management software<br>4Q 2019<br>4Q 2019<br>Enterprise-wide electronic<br>knowledge management<br>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 banking<br>team formed<br>4Q 2020<br>4Q 2020<br>Online retail loan origination<br>capabilities<br>Zelle implementation<br>Digital workflow software<br>1Q 2021<br>3Q 2021<br>GSB Conversion<br>completed<br>PPP online customer loan<br>application portal<br>2Q 2020<br>Complete<br>transition of ATM<br>fleet<br>4Q 2021 / 2022<br>3Q 2020<br>PPP online forgiveness<br>application portal<br>▪ Continued investment in technology, automation, and data analytics<br>▪ Seeing tangible results as we continue to adapt to our customers’ needs<br>• Digital relationship banking team formed in 4Q20<br>• At 9/30/2021 Digital Preferred Banking(1) consisted of 39,000 deposit accounts (13.6% of retail DDA &<br>Savings accounts) with more than $410 million in deposits managed by 5 digital banking relationship<br>managers<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, us ing eBank, a debit card or ATM<br>at least 90% of the time, with five or more banking transactions annually.
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27 27<br>Focused Control on Expenses<br>(1) Non-GAAP, see Appendix, further adjusted for negative provision for unfunded commitments and NMTC amortization (2) Non-GAAP, see Appendix<br>Overview<br>▪ Core adjusted expenses(1) of $61.4<br>million in 3Q21 excluding amortization of<br>intangible assets, provision for unfunded<br>commitments, acquisition / restructuring<br>related charges, and NMTC amortization<br>▪ Glenview State Bank merged into Busey<br>Bank on August 14, 2021<br>• Cost savings realization expected to<br>accelerate over the next two<br>quarters<br>Noninterest Expense<br>Efficiency Ratio<br>52.4%<br>59.7%<br>54.7%<br>61.7%<br>67.3%<br>50.0%<br>52.4%<br>54.3%<br>58.9% 59.0%<br>49.7%<br>51.3% 52.0%<br>58.1% 58.7%<br>2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3<br> Reported Eff Ratio Adjusted Eff Ratio(2) Core Adj. Eff Ratio(1)<br>1,531<br>1,346<br>1,462<br>YE 2019 YE 2020 3Q21<br>Full-Time Equivalents (FTE)
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28 28<br>Personal Banking Transformation Plan<br>Financial Impact Summary<br>▪ Annualized expense savings net of<br>expected associated revenue<br>impacts are anticipated to be<br>approximately $3.5 million with the<br>impact of these costs savings<br>beginning to be realized in the fourth<br>quarter of 2021<br>▪ One-time expenses of $0.3 million<br>were realized in 3Q21 with the<br>balance of $3.6 - $4.2 million<br>anticipated to be incurred during<br>4Q21<br>▪ Average deposits per branch will<br>increase from $144 million per<br>branch to $187 million per branch<br>Overview of Planned Branch Consolidation<br>▪ Based on thoughtful consideration and analysis, the Company decided in July 2021 on a plan to close and<br>consolidate 15 Busey Bank banking centers to ensure a balance between the Company’s physical banking<br>center network and robust digital banking services. This initiative does not include 2 additional branches<br>anticipated to be consolidated as part of Glenview State Bank integration.<br>▪ Both the Busey and Glenview banking centers are expected to close in November 2021<br>(1) Proforma depiction reflects closure of 15 branches from the retail consolidation plan and 2 branches consolidated from GSB acquisition Deposits as of 9/30/21.<br>Branch Consolidation(1)<br>75<br>58<br>$144<br>$187<br>Current Proforma<br> # of Branches Avg Deposits Per Branch ($ millions)
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29 29<br>APPENDIX
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30 30<br>Loan Portfolio: Low Levels of Concentrated Exposure<br>Manufacturing Loans<br>Total<br>Manufacturing<br>Loans: $288<br>Million or 4.1%<br>of Loan Portfolio<br>(ex-PPP loans)<br>2.3% Classified<br>Loans down<br>from 2.6% in<br>2Q21<br>Diversified<br>exposure across<br>20 industry<br>subsectors<br>results in no<br>single level of<br>high<br>concentration<br>No subsector<br>accounts for<br>more than 1%<br>of the total<br>portfolio<br>$ in thousands<br>(1) Active deferrals represent interest-only modifications, there are no remaining full-payment deferrals at 9/30/21. Please see page 33 for additional detail.<br>Subsector<br>9/30/21<br>Balances<br>(ex-PPP)<br>% of Total<br>Loans<br>(ex-PPP)<br>9/30/21<br>Active<br>Deferral<br>Balances ⁽¹⁾<br>9/30/21<br>Classified<br>Balances<br>% of<br>Category<br>Classified<br>9/30/21<br>PPP<br>Balances<br>Machinery $69,326 1.0% $0 $42 0.1% $3,649<br>Transportation Equipment $58,471 0.8% $0 $30 0.1% $159<br>Food $55,482 0.8% $0 $327 0.6% $3,468<br>Miscellaneous $39,300 0.6% $0 $0 0.0% $2,312<br>Plastics and Rubber Products $15,529 0.2% $0 $602 3.9% $191<br>Chemical $10,598 0.2% $0 $0 0.0% $998<br>Fabricated Metal Product $8,658 0.1% $0 $1,580 18.2% $1,276<br>Primary Metal $7,058 0.1% $0 $0 0.0% $1,372<br>Electrical Equipment, Appliance, and Component $4,722 0.1% $0 $0 0.0% $353<br>Nonmetallic Mineral Product $4,295 0.1% $0 $0 0.0% $0<br>Beverage and Tobacco Product $3,218 0.0% $1,804 $1,804 56.1% $86<br>Paper $3,039 0.0% $0 $0 0.0% $105<br>Printing and Related Support Activities $2,654 0.0% $0 $0 0.0% $328<br>Computer and Electronic Product $2,141 0.0% $0 $2,138 99.8% $74<br>Wood Product $1,614 0.0% $0 $0 0.0% $805<br>Petroleum and Coal Products $1,511 0.0% $0 $0 0.0% $185<br>Textile Mills $368 0.0% $0 $0 0.0% $0<br>Furniture and Related Product $360 0.0% $0 $0 0.0% $80<br>Apparel $149 0.0% $0 $0 0.0% $102<br>Textile Product Mills $0 0.0% $0 $0 0.0% $1,221<br>Grand Total $288,492 4.1% $1,804 $6,522 2.3% $16,766
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31 31<br>Loan Portfolio: Low Levels of Concentrated Exposure<br>$ in thousands<br>Retail Trade & Retail CRE Loans<br>Traveler Accommodation Loans<br>Strip<br>Center<br>47%<br>Retail<br>Single-<br>Tenant<br>17%<br>Mixed<br>Use -<br>Retail<br>11%<br>Retail Trade<br>(C&I)<br>11%<br>Shopping<br>Center<br>10%<br>Neighborhood<br>Retail Center<br>4% Retail Flag<br>9/30/21<br>Balances<br>(ex-PPP)<br>% of Total<br>Loans<br>(ex-PPP)<br>9/30/21<br>Active<br>Deferral<br>Balances⁽¹⁾<br>Weighted<br>Avg LTV<br>% of<br>Classified<br>Loans in<br>Segment<br>9/30/21<br>PPP<br>Balances<br>Strip Center $286,281 4.1% $2,585 61.3% 0.4% $0<br>Retail Single-Tenant $101,993 1.5% $0 59.2% 0.8% $0<br>Mixed Use - Retail $70,138 1.0% $0 61.4% 0.0% $0<br>Retail Trade (C&I) $67,549 1.0% $0 6.7% $14,013<br>Shopping Center $62,421 0.9% $0 61.6% 0.0% $0<br>Neighborhood Retail Center $25,929 0.4% $0 41.7% 0.0% $0<br>Grand Total $614,310 8.8% $2,585 62.1% 1.1% $14,013<br>Hotel -<br>Boutique<br>30%<br>Hotel Ops. (C&I)<br>2%<br>Hotel -<br>Large Chain<br>68%<br>Other<br>0%<br>Total Retail Loans: $614 Million or 8.8% of Loan Portfolio<br>Subsector<br>9/30/21<br>Balances<br>(ex-PPP)<br>% of Total<br>Loans<br>(ex-PPP)<br>9/30/21<br>Active<br>Deferral<br>Balances⁽¹⁾<br>Weighted<br>Avg LTV<br>% of<br>Classified<br>Loans in<br>Segment<br>9/30/21<br>PPP<br>Balances<br>Hotel - Limited Service Large Chain $58,801 0.8% $19,654 61.4% 0.0% $0<br>Hotel - Full Service Large Chain $57,821 0.8% $12,208 65.4% 0.0% $0<br>Hotel - Full Service Boutique $41,561 0.6% $30,908 65.3% 0.0% $0<br>Hotel - Limited Service Boutique $10,163 0.1% $0 47.4% 0.0% $0<br>Hotel Operations (C&I) $3,751 0.1% $0 0.0% $7,126<br>Motel $505 0.0% $505 67.4% 100.0% $0<br>RV Parks and Campgrounds (C&I) $58 0.0% $0 0.0% $0<br>Other $0 0.0% $0 0.0% $116<br>Grand Total $172,661 2.5% $63,276 62.9% 0.3% $7,241<br>Total Traveler Accommodation Loans: $173 Million or 2.5% of Loan Portfolio<br>(1) Active deferrals represent interest-only modifications, there are no remaining full-payment deferrals at 9/30/21. Please see page 33 for additional detail.
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32 32<br>Loan Portfolio: Low Levels of Concentrated Exposure<br>$ in thousands<br>Agriculture Loans<br>Food Services Loans<br>Full Serv<br>Restaurant<br>CRE<br>41%<br>Limited-Serv<br>Restaurant CRE<br>26%<br>Full Serv<br>Restaurant Ops<br>6%<br>Limited-Serv<br>Restaurant Ops<br>26%<br>Other<br>1%<br>Food Services<br>9/30/21<br>Balances<br>(ex-PPP)<br>% of Total<br>Loans<br>(ex-PPP)<br>9/30/21<br>Active<br>Deferral<br>Balances⁽¹⁾<br>Weighted<br>Avg LTV<br>% of<br>Classified<br>Loans in<br>Segment<br>9/30/21<br>PPP<br>Balances<br>Full-Service Restaurant CRE $53,852 0.8% $8,501 56.4% 5.0% $0<br>Limited-Service Restaurant CRE $33,763 0.5% $0 65.1% 0.0% $0<br>Limited-Service Restaurant Operations $34,018 0.5% $1,345 0.0% $4,171<br>Full-Service Restaurant Operations $8,586 0.1% $3,030 3.0% $16,804<br>Drinking Place Operations $969 0.0% $0 0.0% $2,165<br>Other Food Services $159 0.0% $0 0.0% $1,410<br>Grand Total $131,347 1.9% $12,876 59.5% 2.2% $24,551<br>Illinois<br>91%<br>Indiana<br>8%<br>Other<br>1%<br>Total Food Services Loans: $131 Million or 1.9% of Loan Portfolio<br>Geographic Location by State<br>9/30/21<br>Balances<br>(ex-PPP)<br>% of Total<br>Loans<br>(ex-PPP)<br>9/30/21<br>Active<br>Deferral<br>Balances⁽¹⁾<br>Farmland<br>WAVG LTV<br>% of<br>Classified<br>Loans in<br>Segment<br>% of Long-<br>Term<br>Customers<br>(4+ Yrs)<br>Illinois $69,646 1.0% $0 43.4% 0.0% 83.9%<br>Indiana $4,216 0.1% $0 46.7% 0.0% 75.0%<br>Other State $422 0.0% $0 34.2% 0.0% 100.0%<br>Missouri $295 0.0% $0 39.3% 0.0% 100.0%<br>Florida $163 0.0% $0 50.0% 0.0% 0.0%<br>Total Farmland $74,742 1.1% $0 43.6% 0.0% 83.5%<br>Illinois $40,354 0.6% $0 4.0% 90.6%<br>Indiana $5,150 0.1% $0 0.0% 100.0%<br>Missouri $76 0.0% $0 0.0% 0.0%<br>Total Farm Operating Line $45,580 0.7% $0 3.6% 89.9%<br>Grand Total $120,322 1.7% $0 43.6% 1.4% 86.2%<br>Total Agriculture Loans: $120 Million or 1.7% of Loan Portfolio<br>(1) Active deferrals represent interest-only modifications, there are no remaining full-payment deferrals at 9/30/21. Please see page 33 for additional detail.
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33 33<br>Update on COVID –Related Deferral & Modification Trends<br>Commercial and Small Business Clients<br>▪ Busey announced on March 26, 2020 a six-month modification program, including up to two 90-day<br>deferrals of payments or interest only payment options. This program expired on September 30, 2020 and<br>all deferrals granted from this original opt-in program are no longer active<br>▪ While our formal program expired, Busey continues to offer support to customers clearly impacted by<br>COVID-19 with deferrals approved after September 30, 2020 on a special request basis<br>▪ Of the current active commercial loan deferral balance, 100% are interest-only deferrals. There are no full<br>payment deferrals remaining at September 30, 2021<br>Commercial Payment Relief Program 9/30/21<br># of Loans<br>9/30/21<br>$ Net Balances<br>% of All Deferral<br>Balances % of Total Net<br>Total Commercial Loans: 7,428 $5,480,185<br>Loans with deferrals granted after 9/30/20<br>Loans with aggregate deferral period exceeding 6 months<br>Active Full Pmt Deferrals (ex-SBA loans) 0 $0 0.0% 0.0%<br>Active I/O Deferrals 26 $104,990 10.7% 1.9%<br>Total 26 $104,990 10.7% 1.9%<br>Loans with aggregate deferral period less than 6 months<br>Active Full Pmt Deferrals (ex-SBA) 0 $0 0.0% 0.0%<br>Active I/O Deferrals 1 $11,609 1.2% 0.2%<br>Total 1 $11,609 1.2% 0.2%<br>A Total Active Deferral Loans 27 $116,599 11.9% 2.1%<br>B Expired Payment Relief, regular pmt not yet received 2 $1,190 0.1% 0.0%<br>C Exited Payment Relief Program 841 $859,232 87.9% 15.7%<br>Loans currently in the Payment Relief Program (A) 27 $116,599<br>Loans no longer in deferral (B + C) 843 $860,422<br>870 $977,021 100% 17.8%<br>$ in thousands
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34 34<br>Update on COVID –Related Deferral & Modification Trends<br>Commercial and Small Business Clients<br>▪ Deferrals have declined in the current outstanding commercial book from 8.4% at<br>9/30/2020 to 2.1% as of 9/30/2021 with none remaining on full-payment deferral<br>Commercial Active Deferrals Timeline # of Loans $ Balances<br>Proportion of Net<br>Commercial<br>Loans (%)<br>% on Full<br>Payment<br>Deferral<br>Active Deferrals at 6/30/20 1122 $1,178,577 23.1% 16.1%<br>Active Deferrals at 9/30/20 301 $426,372 8.4% 6.4%<br>Active Deferrals at 12/31/20 98 $208,624 4.1% 0.9%<br>Active Deferrals at 3/31/21 72 $197,119 3.9% 0.6%<br>Active Deferrals at 6/30/21 49 $143,489 2.8% 0.2%<br>Active Deferrals at 9/30/21 27 $116,599 2.1% 0.0%<br>Projected Quarterly Roll-off of Active Commercial Deferrals # of Loans $ Balances<br>Loans currently in the Payment Relief Program 27 $116,599<br># of Loans $ Balances EOQ # of Loans EOQ Balances<br>Q4 2021 4 $8,186 23 $108,413<br>Q1 2022 17 $91,607 6 $16,806<br>Q2 2022 4 $5,452 2 $11,354<br>Q3 2022 2 $11,354 0 $0<br>$ in thousands<br>$ in thousands
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35 35<br>Update on COVID –Related Deferral & Modification Trends<br>$ in thousands<br>Property/Industry<br>9/30/21<br>Balances<br>(ex-PPP)<br> Classified<br>Loan Balances<br>9/30/21<br>Active<br>Deferrals<br>− Full Pmts<br>9/30/21<br>Active<br>I/O<br>Modifications<br>% of Segment<br>in Active<br>Deferral<br>Hotel CRE $168,852 $505 $0 $63,276 37.5%<br>Student Housing $362,465 $0 $0 $13,094 3.6%<br>Senior Housing $187,558 $0 $0 $9,713 5.2%<br>Restaurant CRE $87,615 $2,668 $0 $8,501 9.7%<br>Specialty CRE $324,341 $2,859 $0 $5,778 1.8%<br>Food Services and Drinking Places $43,733 $271 $0 $4,376 10.0%<br>Office CRE $573,206 $1,954 $0 $4,189 0.7%<br>Retail CRE $546,762 $2,049 $0 $2,585 0.5%<br>Manufacturing $288,492 $6,522 $0 $1,804 0.6%<br>Health Care and Social Assistance $134,835 $5,676 $0 $1,641 1.2%<br>Land Acquisition and Development $91,247 $2,400 $0 $499 0.5%<br>Administrative and Support Services $18,252 $2,459 $0 $499 2.7%<br>Apartments $462,146 $1,609 $0 $495 0.1%<br>1-4 Family $194,063 $3,273 $0 $149 0.1%<br>Grand Total $0 $116,599<br>Active Commercial Deferrals by Sectors
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36 36<br>Update on COVID –Related Deferral & Modification Trends<br>Personal Loan and Mortgage Customers<br>Retail Payment Relief Program<br>$ in thousands<br>9/30/21<br># of Loans<br>9/30/21<br>$ Balances<br>% of All<br>Deferral<br>Balances<br>% of Total<br>Consumer<br>Balances<br>Total Consumer Portfolio Loans (1) 21,606 $1,299,261<br>A Total Active Deferral Loans 3 $383 0.4% 0.0%<br>B Exited Payment Relief Program 718 $93,920 99.6% 7.2%<br>Total loans outstanding that received a deferral (A + B): 721 $94,303 7.3%<br>Retail Active Deferrals Timeline(1) # of Loans $ Balances<br>% of Net<br>Consumer<br>Loans<br>Active Deferrals at 6/30/20 892 $124,901 9.7%<br>Active Deferrals at 9/30/20 559 $81,922 6.7%<br>Active Deferrals at 12/31/20 351 $47,671 4.1%<br>Active Deferrals at 3/31/21 178 $24,893 2.2%<br>Active Deferrals at 6/30/21 8 $844 0.1%<br>Active Deferrals at 9/30/21 3 $383 0.0%<br>(1) Table does not include GSE servicing-retained loans or purchased HELOC pool<br>$ in thousands
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37 37<br>Use of Non-GAAP Financial Measures<br>(1) Annualized measure<br>($ in thousands)<br>(Unaudited results) September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020<br>Net interest income $70,755 $64,542 $64,893 $72,936 $69,753<br>Non-interest income 33,259 33,011 31,445 30,499 32,285<br>Less securities (gains) and losses, net (57) (898) (1,641) (855) 426<br>Non-interest expense (73,487) (62,625) (54,499) (64,073) (56,542)<br>Pre-provision net revenue $30,470 $34,030 $40,198 $38,507 $45,922<br>Acquisition and other restructuring expenses 8,677 2,713 320 7,550 2,529<br>Provision for unfunded commitments (978) (496) 406 (12) 250<br>New Market Tax Credit amortization 1,240 1,239 1,829 1,111 —<br>Adjusted: pre-provision net revenue $39,409 $37,486 $42,753 $47,156 $48,701<br>Average total assets $12,697,795 $11,398,655 $10,594,245 $10,419,364 $10,680,995<br>Reported: Pre-provision net revenue to average assets(1) 0.95 % 1.20 % 1.54 % 1.47 % 1.71 %<br>Adjusted: Pre-provision net revenue to average assets(1) 1.23 % 1.32 % 1.64 % 1.80 % 1.81 %<br>Three Months Ended<br> September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020<br>Reported: Net income $25,941 $29,766 $37,816 $28,345 $30,829<br>Acquisition expenses:<br>Salaries, wages, and employee benefits 4,462 1,125 — — —<br>Data processing 3,182 368 7 56 —<br>Lease or fixed asset impairment — — — 245 234<br>Professional fees and other 776 1,220 313 479 99<br>Other restructuring costs:<br>Salaries, wages, and employee benefits 257 — — 113 2,011<br>Fixed asset impairment — — — 6,657 —<br>Professional fees and other — — — — 185<br>Related tax benefit (1,773) (558) (71) (1,640) (555)<br>Adjusted: Net income $32,845 $31,921 $38,065 $34,255 $32,803<br>Dilutive average common shares outstanding 56,832,518 55,730,883 55,035,806 54,911,458 54,737,920<br>Reported: Diluted earnings per share $0.46 $0.53 $0.69 $0.52 $0.56<br>Adjusted: Diluted earnings per share $0.58 $0.57 $0.69 $0.62 $0.60<br>Average total assets $12,697,795 $11,398,655 $10,594,245 $10,419,364 $10,680,995<br>Reported: Return on average assets(1) 0.81 % 1.05 % 1.45 % 1.08 % 1.15 %<br>Adjusted: Return on average assets(1) 1.03 % 1.12 % 1.46 % 1.31 % 1.22 %<br>Three Months Ended
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38 38<br>Use of Non-GAAP Financial Measures<br>(1) Tax-effected measure. 28% estimated deferred tax rate (2) Annualized measure (3) Calculated using adjusted net income<br>($ in thousands)<br>(Unaudited results) September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020<br>Total assets $12,899,330 $12,415,449 $10,759,563 $10,544,047 $10,539,628<br>Goodwill and other intangible assets, net (378,891) (381,795) (361,120) (363,521) (365,960)<br>Tax effect of other intangible assets, net 17,115 17,997 13,883 14,556 15,239<br>Tangible assets $12,537,554 $12,051,651 $10,412,326 $10,195,082 $10,188,907<br>Total stockholders’ equity $1,333,076 $1,345,691 $1,265,822 $1,270,069 $1,255,705<br>Goodwill and other intangible assets, net (378,891) (381,795) (361,120) (363,521) (365,960)<br>Tax effect of other intangible assets, net 17,115 17,997 13,883 14,556 15,239<br>Tangible common equity $971,300 $981,893 $918,585 $921,104 $904,984<br>Ending number of common shares outstanding 55,826,984 56,330,616 54,345,379 54,404,379 54,522,231<br>Tangible common equity to tangible assets(1) 7.75 % 8.15 % 8.82 % 9.03 % 8.88 %<br>Tangible book value per share $17.09 $17.11 $16.65 $16.66 $16.32<br>Average common equity $1,351,416 $1,342,771 $1,275,694 $1,261,298 $1,248,448<br>Average goodwill and other intangible assets, net (380,885) (368,709) (362,693) (365,120) (367,490)<br>Average tangible common equity $970,531 $974,062 $913,001 $896,178 $880,958<br>Reported: Return on average tangible common equity(2) 10.60 % 12.26 % 16.80 % 12.58 % 13.92 %<br>Adjusted: Return on average tangible common equity(2)(3) 13.43 % 13.14 % 16.91 % 15.21 % 14.81 %<br>As of and for the Three Months Ended<br>($ in thousands)<br>(Unaudited results) September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020<br>Reported: Net Interest income $70,755 $64,542 $64,893 $72,936 $69,753<br>Tax-equivalent adjustment 598 579 601 655 638<br>Tax-equivalent interest income $71,353 $65,121 $65,494 $73,591 $70,391<br>Reported: Non-interest income $33,259 $33,011 $31,445 $30,499 $32,285<br> Less securities (gains) and losses, net (57) (898) (1,641) (855) 426<br>Adjusted: Non-interest income $33,202 $32,113 $29,804 $29,644 $32,711<br>Reported: Non-interest expense $73,487 $62,625 $54,499 $64,073 $56,542<br>Non-operating adjustments:<br>Salaries, wages, and employee benefits (4,719) (1,125) — (113) (2,011)<br>Data processing (3,182) (368) (7) (56) —<br>Impairment, professional fees and other (776) (1,220) (313) (7,381) (518)<br>Noninterest expense, excluding non-operating adjustments 64,810 59,912 54,179 56,523 54,013<br>Amortization of intangible assets (3,149) (2,650) (2,401) (2,439) (2,493)<br>Adjusted: Non-interest expense 61,661 57,262 51,778 54,084 51,520<br>Reported: Efficiency ratio 67.27 % 61.68 % 54.67 % 59.70 % 52.42 %<br>Adjusted: Efficiency ratio 58.97 % 58.89 % 54.33 % 52.39 % 49.97 %<br>Three Months Ended
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