UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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): January 23, 2024
__________________________________________
(Exact name of Registrant as specified in its charter)
__________________________________________
| (State of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| (Address of Principal Executive Offices) | ||||||||
| (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:
| 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 | ||||||||||||
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 2.02 Results of Operations and Financial Condition.
On January 23, 2024, First Busey Corporation (“Busey” or the “Company”) issued a press release (“Earnings Release”) disclosing financial results for the quarter ended December 31, 2023. A copy of the Earnings 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 Busey for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor will any of such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (“Securities Act”), or the Exchange Act.
Item 7.01 Regulation FD Disclosure.
On January 23, 2024, Busey published its Earnings Investor Presentation discussing financial results for the quarter ended December 31, 2023. 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 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 9.01. Financial Statements and Exhibits.
Exhibit Number | Description of Exhibit | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101) | |||||||
2
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 thereunto duly authorized.
FIRST BUSEY CORPORATION | |||||||||||||||||
| Date: | January 23, 2024 | By: | /s/ Jeffrey D. Jones | ||||||||||||||
| Jeffrey D. Jones | |||||||||||||||||
Chief Financial Officer | |||||||||||||||||
3
F I R S T B U S E Y C O R P O R A T I O N
A N N O U N C E S
2 0 2 3
F O U R T H
Q U A R T E R
F O U R T H
Q U A R T E R
E A R N I N G S
Q 4 | 2 0 2 3
January 23, 2024
First Busey Corporation Announces 2023 Fourth Quarter Earnings
CHAMPAIGN, IL – (GLOBE NEWSWIRE) – First Busey Corporation (Nasdaq: BUSE)
Net Income of $25.7 million
Diluted EPS of $0.46
Diluted EPS of $0.46
Fourth Quarter 2023 Highlights
•Adjusted net income1 at $29.1 million, or $0.52 per diluted common share
•Entered into a definitive agreement to acquire Merchants & Manufacturers Bank Corporation (“M&M”), the holding company for Merchants & Manufacturers Bank (“M&M Bank”)
•Executed a two-part balance sheet repositioning related to the securities portfolio, expected to be both capital and earnings accretive
•Non-performing assets declined 34.4% during the fourth quarter of 2023, to $7.9 million, now representing 0.06% of total assets
•Annualized quarterly net charge-off ratio of 0.02% and full year net charge-off ratio of 0.03%
•Tangible book value per common share1 of $16.62 at December 31, 2023, compared to $15.07 at September 30, 2023, and $14.14 at December 31, 2022, an increase of 17.5% year-over-year
For additional information, please refer to the 4Q23 Earnings Investor Presentation
Message from our Chairman & CEO
Fourth Quarter Financial Results
Net income for First Busey Corporation (“Busey,” “Company,” “we,” “us,” or “our”) was $25.7 million for the fourth quarter of 2023, or $0.46 per diluted common share, compared to $30.7 million, or $0.54 per diluted common share, for the third quarter of 2023, and $34.4 million, or $0.61 per diluted common share, for the fourth quarter of 2022. Adjusted net income1 was $29.1 million, or $0.52 per diluted common share, for the fourth quarter of 2023, compared to $30.7 million, or $0.55 per diluted common share, for the third quarter of 2023, and $36.3 million, or $0.65 per diluted common share, for the fourth quarter of 2022. Annualized return on average assets and annualized return on average tangible common equity1 were 0.83% and 12.06%, respectively, for the fourth quarter of 2023. Annualized adjusted return on average assets1 and annualized adjusted return on average tangible common equity1 were 0.94% and 13.64%, respectively, for the fourth quarter of 2023. Fourth quarter results included $0.8 million in net securities gains, a majority of which were unrealized. Excluding these gains, adjusted net income1 would have been $28.5 million, equating to adjusted diluted earnings per common share1 of $0.51.
Pre-provision net revenue1 was $32.9 million for the fourth quarter of 2023, compared to $38.1 million for the third quarter of 2023 and $46.4 million for the fourth quarter of 2022. Pre-provision net revenue to average assets1 was 1.06% for the fourth quarter of 2023, compared to 1.24% for the third quarter of 2023, and 1.49% for the fourth quarter of 2022. The decline in pre-provision net revenue in the fourth quarter, compared to the third quarter, was the result of a $0.7 million decrease in net interest income, which is primarily the result of deposits migrating into higher cost offerings, as well as an increase of $4.0 million in noninterest expense, resulting from $4.2 million in non-recurring expenses related to corporate restructuring and acquisition related activities.
Adjusted pre-provision net revenue1 was $40.2 million for the fourth quarter of 2023, compared to $40.5 million for the third quarter of 2023 and $50.0 million for the fourth quarter of 2022. Adjusted pre-provision net revenue to average assets1 was 1.30% for the fourth quarter of 2023, compared to 1.32% for the third quarter of 2023 and 1.61% for the fourth quarter of 2022.
1 See "Non-GAAP Financial Information" for a reconciliation.
First Busey Corporation | 2023 Q4 — 2
Taking into account our fourth quarter results, full year 2023 pre-provision net revenue2 and adjusted pre-provision net revenue2 were $158.5 million and $172.3 million, respectively. Net income and adjusted net income2 were $122.6 million, or $2.18 per diluted common share, and $126.0 million, or $2.24 per diluted common share, respectively. For the full year of 2023, return on average assets and return on average tangible common equity2 were 1.00% and 14.62%, respectively. Based on adjusted net income2, return on average assets was 1.03% and return on average tangible common equity2 was 15.03%. Full year 2023 net income and adjusted net income2 include the impact of net securities losses of $1.8 million3, which are primarily related to unrealized losses recognized on equity securities. Excluding the impact of these securities losses, adjusted net income2 would have been $127.8 million, equating to adjusted diluted earnings per common share2 of $2.27.
Our fee-based businesses continue to add revenue diversification. Noninterest income excluding net securities gains and losses2 was $30.8 million, or 28.5% of operating revenue4, during the fourth quarter of 2023, compared to $31.3 million, or 28.7% of total operating revenue, for the third quarter of 2023 and $28.9 million, or 24.1% of total operating revenue, for the fourth quarter of 2022. For the full year 2023, noninterest income excluding net securities gains and losses was $124.6 million, or 28.1% of operating revenue. Busey wealth management fees and FirsTech payment technology solutions contributed $57.3 million and $21.2 million, respectively, to our reported consolidated noninterest income for 2023, representing 64.1% on a combined basis. For FirsTech, both the fourth quarter 2023 and full-year 2023 represented record revenue quarterly and annual reporting periods for the company.
Busey 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 acquisition and other restructuring charges in the fourth quarter of 2023 were $4.2 million. Busey believes that non-GAAP measures—including pre-provision net revenue, adjusted pre-provision net revenue, pre-provision net revenue to average assets, adjusted pre-provision net revenue to average assets, adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, return on average tangible common equity, adjusted return on average tangible common equity, adjusted net interest income, adjusted net interest margin, adjusted noninterest expense, adjusted core expense, efficiency ratio, adjusted efficiency ratio, adjusted core efficiency ratio, tangible book value per common share, tangible common equity, tangible common equity to tangible assets, core loans, core loans to portfolio loans, core deposits, core deposits to total deposits, and core loans to core deposits—facilitate the assessment of its financial results and peer comparability. A reconciliation of these non-GAAP measures is included in tabular form at the end of this release (see "Non-GAAP Financial Information").
We have effectively managed our noninterest expense during a time of decades-high inflation, and have been purposeful in our efforts to rationalize our expense base given our economic outlook and our view on the future of banking. In the fourth quarter, Busey completed an executive reorganization and executed a targeted efficiency optimization plan, expected to generate annual salary and benefit savings of approximately $5.6 million. Busey incurred one-time pre-tax severance and other related restructuring costs of $4.0 million during the fourth quarter of 2023 related to the executive reorganization and targeted efficiency optimization plan. We expect to reinvest approximately half of the anticipated savings to support ongoing growth initiatives across our franchise over the next several quarters.
Noninterest expense was $75.0 million in the fourth quarter of 2023, compared to $70.9 million in the third quarter of 2023 and $73.7 million in the fourth quarter of 2022. Adjusted core expense2 decreased to $65.2 million in the fourth quarter of 2023, compared to $66.0 million in the third quarter of 2023 and $67.2 million in the fourth quarter of 2022. As we enter 2024, we expect to continue to prudently manage our expenses.
2 See "Non-GAAP Financial Information" for a reconciliation.
3 Tax effected measure. See “Non-GAAP Financial Information” for a reconciliation.
4 Operating revenue consists of net interest income plus noninterest income, net of securities gains and losses.
First Busey Corporation | 2023 Q4 — 3
Fourth quarter 2023 results were negatively impacted by an increase in income tax expense as a result of adjusting our estimated annual effective tax rate ("AETR"). Busey estimates income tax expense for the year based on amounts expected to be owed to federal and state tax jurisdictions. An estimated AETR is established based on this estimate and is used to calculate our quarterly income tax provision. The fourth quarter effective tax rate increased to 22.5% compared to 18.2% in the third quarter, bringing our effective tax rate for the full year 2023 to 20.4%.
Acquisition of Merchants and Manufacturers Bank Corporation Planned for The Second Quarter of 2024
On November 27, 2023, Busey announced the signing of a definitive agreement with M&M, pursuant to which Busey will acquire M&M and its wholly-owned subsidiary, M&M Bank, through a merger transaction. This partnership will add M&M’s Life Equity Loan® products to Busey’s existing suite of services, and expand Busey’s presence in the Chicago Metropolitan Statistical Area.
Under the terms of the merger agreement, M&M’s stockholders will have the right to receive for each share of M&M common stock, at the election of each stockholder and subject to proration, either (i) $117.74 in cash, (ii) 5.7294 shares of Busey common stock, or (iii) mixed consideration of $34.55 in cash and 4.0481 shares of Busey common stock, with total consideration to consist of approximately 71% stock and 29% cash. Based upon Busey’s 20‑day volume-weighted average closing price as of November 24, 2023, the aggregate implied transaction value is approximately $41.6 million.
The merger is expected to be finalized in the second quarter of 2024, subject to customary closing conditions and required approvals, including the approval of M&M’s stockholders. At the time of the merger, M&M Bank’s banking centers will become banking centers of Busey Bank. It is anticipated that M&M Bank will be merged with and into Busey Bank at a date following the completion of the merger. Busey incurred one-time acquisition-related expenses of $0.3 million in the fourth quarter of 2023.
Busey executed a two-part balance sheet repositioning strategy
During the fourth quarter of 2023, Busey sold all 16,878 shares of Visa Class B common stock it previously held (the “Visa Sale”) for a pre-tax gain of approximately $5.5 million.
Busey also executed a balance sheet repositioning of its available-for-sale securities portfolio (the “Repositioning”) during the fourth quarter of 2023. Busey sold securities with a carrying value of approximately $110 million yielding 1.56%, resulting in an approximate pre-tax loss of $5.3 million. The proceeds were deposited into an interest-bearing account at the Federal Reserve yielding 5.40%.
The increased net interest spread as a result of the Visa Sale and the Repositioning is expected to increase net interest income by approximately $4.3 million on an annualized basis and improve our net interest margin run rate by 4 basis points. In addition, execution of these transactions further bolsters Busey’s liquidity position and balance sheet flexibility, while also strengthening its capital position. Busey anticipates reinvesting the proceeds into loan and investment security opportunities over time.
The combined impact of the gain generated from the Visa Sale and the loss generated from the Repositioning will have an immediate positive impact on consolidated stockholders’ equity and book value per share. Risk-based regulatory capital ratios will increase modestly as a result of the Repositioning proceeds rotating into lower risk-weighted assets. Busey expects the above transactions to be accretive to capital and earnings per share in future periods.
First Busey Corporation | 2023 Q4 — 4
Busey’s Conservative Banking Strategy
Busey’s financial strength is built on a long-term conservative operating approach. That focus will not change now or in the future.
The quality of our core deposit franchise is a critical value driver of our institution. Since March 31, 2023, our deposit base has grown by $490.0 million, allowing us to reduce our higher cost Federal Home Loan Bank (“FHLB”) borrowings to zero. Our granular deposit base continues to position us well, and as of December 31, 2023, our estimated uninsured and uncollateralized deposits5 percentage was 27%, and 96.2% of our deposits were core deposits6. Our retail deposit base was comprised of more than 257,000 accounts with an average balance of $22 thousand and an average tenure of 16.5 years as of December 31, 2023. Our commercial deposit base was comprised of more than 33,000 accounts with an average balance of $102 thousand and an average tenure of 12.4 years as of December 31, 2023. We have sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of our customers.
Asset quality remains strong by both Busey’s historical and current industry trends. Non-performing assets saw a further 34.4% decline during the fourth quarter of 2023 to $7.9 million, now representing only 0.06% of total assets. Busey’s results for the fourth quarter of 2023 include a $0.5 million provision expense for credit losses and a $0.8 million provision expense for unfunded commitments. The allowance for credit losses was $91.7 million as of December 31, 2023, representing 1.20% of total portfolio loans outstanding, and 1,173.7% of non-performing loans. Busey recorded net charge offs of $0.4 million in the fourth quarter of 2023, which equates to 0.02% of average loans on an annualized basis. As of December 31, 2023, our commercial real estate loan portfolio of investor-owned office properties within Central Business District7 areas remained low at $9.4 million. Our credit performance continues to reflect our highly diversified, conservatively underwritten loan portfolio, which has been originated predominantly to established customers with tenured relationships with our company.
The strength of our balance sheet is also reflected in our capital foundation. In the fourth quarter, Common Equity Tier 1 and Total Capital to Risk Weighted Assets ratios8 increased to 13.09% and 17.44%, respectively. In fact, our regulatory capital ratios continue to provide a buffer of more than $520 million above levels required to be designated well-capitalized. Our Tangible Common Equity ratio6 increased to 7.75% during the fourth quarter of 2023, compared to 7.06% for the third quarter of 2023 and 6.60% for the fourth quarter of 2022. Busey’s tangible book value per common share6 increased to $16.62 at December 31, 2023, from $15.07 at September 30, 2023 and $14.14 at December 31, 2022, reflecting a 17.5% year-over-year increase. During the fourth quarter of 2023, we paid a common share dividend of $0.24 and repurchased 117,812 shares of our common stock at a weighted average price of $19.30 per share.
5 Estimated uninsured and uncollateralized deposits consist of account balances in excess of the $250 thousand FDIC insurance limit, less intercompany accounts and collateralized accounts (including preferred deposits).
6 See "Non-GAAP Financial Information" for a reconciliation.
7 Central Business District areas within Busey’s footprint include downtown St. Louis, downtown Indianapolis, and downtown Chicago.
8 Capital ratios for the fourth quarter of 2023 are not yet finalized, and are subject to change.
First Busey Corporation | 2023 Q4 — 5
Community Banking
Busey’s Community Banking team now offers new, second chance checking and savings products—which are proudly BankON certified—offering hassle-free, affordable options with digital banking access designed to provide peace of mind. With a suite of online tools that make it easy to track and manage money, these products offer qualified customers tools to build financial strength, improve banking history, and avoid monthly maintenance fees.
As we reflect back on 2023 and look ahead to 2024, we remain cognizant of the evolving economic outlook and extremely focused on balance sheet strength, profitability, and growth, in that order. The pending M&M transaction fits with our acquisition strategy and we are excited to welcome our M&M colleagues into the Busey family. We are grateful for the opportunities to earn the business of our customers, based on the contributions of our talented associates and the continued support of our loyal shareholders.
Van A. Dukeman | ||||||||
Chairman, President & Chief Executive Officer | ||||||||
First Busey Corporation | ||||||||
First Busey Corporation | 2023 Q4 — 6
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
(dollars in thousands, except per share amounts)
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
| EARNINGS & PER SHARE AMOUNTS | |||||||||||||||||||||||||||||
| Net income | $ | 25,749 | $ | 30,666 | $ | 34,387 | $ | 122,565 | $ | 128,311 | |||||||||||||||||||
| Diluted earnings per common share | 0.46 | 0.54 | 0.61 | 2.18 | 2.29 | ||||||||||||||||||||||||
| Cash dividends paid per share | 0.24 | 0.24 | 0.23 | 0.96 | 0.92 | ||||||||||||||||||||||||
Pre-provision net revenue1, 2 | 32,909 | 38,139 | 46,360 | 158,502 | 168,493 | ||||||||||||||||||||||||
Revenue3 | 107,888 | 109,084 | 120,037 | 444,034 | 452,374 | ||||||||||||||||||||||||
| Net income by operating segments: | |||||||||||||||||||||||||||||
| Banking | 25,164 | 31,189 | 37,564 | 123,853 | 131,596 | ||||||||||||||||||||||||
| FirsTech | 325 | 317 | (453) | 830 | 847 | ||||||||||||||||||||||||
| Wealth Management | 4,233 | 4,781 | 3,855 | 18,804 | 18,543 | ||||||||||||||||||||||||
| AVERAGE BALANCES | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 608,647 | $ | 252,730 | $ | 281,926 | $ | 330,952 | $ | 411,785 | |||||||||||||||||||
| Investment securities | 2,995,223 | 3,148,759 | 3,451,471 | 3,188,815 | 3,731,048 | ||||||||||||||||||||||||
| Loans held for sale | 1,679 | 2,267 | 1,623 | 1,885 | 5,178 | ||||||||||||||||||||||||
| Portfolio loans | 7,736,010 | 7,834,285 | 7,619,199 | 7,759,472 | 7,445,962 | ||||||||||||||||||||||||
| Interest-earning assets | 11,229,326 | 11,118,167 | 11,242,126 | 11,164,594 | 11,473,063 | ||||||||||||||||||||||||
| Total assets | 12,308,491 | 12,202,783 | 12,330,132 | 12,246,218 | 12,492,948 | ||||||||||||||||||||||||
| Noninterest bearing deposits | 2,827,696 | 2,925,244 | 3,494,001 | 3,018,563 | 3,550,517 | ||||||||||||||||||||||||
| Interest-bearing deposits | 7,545,234 | 7,217,463 | 6,843,688 | 7,052,370 | 6,958,436 | ||||||||||||||||||||||||
| Total deposits | 10,372,930 | 10,142,707 | 10,337,689 | 10,070,933 | 10,508,953 | ||||||||||||||||||||||||
| Securities sold under agreements to repurchase and federal funds purchased | 182,735 | 190,112 | 236,656 | 200,894 | 244,004 | ||||||||||||||||||||||||
| Interest-bearing liabilities | 8,054,663 | 7,864,355 | 7,500,294 | 7,825,459 | 7,583,331 | ||||||||||||||||||||||||
| Total liabilities | 11,106,074 | 10,994,376 | 11,207,585 | 11,048,707 | 11,297,777 | ||||||||||||||||||||||||
| Stockholders' equity - common | 1,202,417 | 1,208,407 | 1,122,547 | 1,197,511 | 1,195,171 | ||||||||||||||||||||||||
Tangible common equity2 | 846,948 | 850,382 | 756,420 | 838,164 | 824,747 | ||||||||||||||||||||||||
| PERFORMANCE RATIOS | |||||||||||||||||||||||||||||
Pre-provision net revenue to average assets1, 2,4 | 1.06 | % | 1.24 | % | 1.49 | % | 1.29 | % | 1.35 | % | |||||||||||||||||||
Return on average assets4 | 0.83 | % | 1.00 | % | 1.11 | % | 1.00 | % | 1.03 | % | |||||||||||||||||||
Return on average common equity4 | 8.50 | % | 10.07 | % | 12.15 | % | 10.23 | % | 10.74 | % | |||||||||||||||||||
Return on average tangible common equity2,4 | 12.06 | % | 14.31 | % | 18.04 | % | 14.62 | % | 15.56 | % | |||||||||||||||||||
Net interest margin2, 5 | 2.74 | % | 2.80 | % | 3.24 | % | 2.88 | % | 2.84 | % | |||||||||||||||||||
Efficiency ratio2 | 66.89 | % | 62.38 | % | 58.77 | % | 61.65 | % | 59.89 | % | |||||||||||||||||||
Noninterest revenue as a % of total revenues3 | 28.51 | % | 28.69 | % | 24.07 | % | 28.06 | % | 28.50 | % | |||||||||||||||||||
| NON-GAAP FINANCIAL INFORMATION | |||||||||||||||||||||||||||||
Adjusted pre-provision net revenue1, 2 | $ | 40,223 | $ | 40,491 | $ | 50,003 | $ | 172,290 | $ | 179,424 | |||||||||||||||||||
Adjusted net income2 | 29,123 | 30,730 | 36,290 | 126,012 | 131,910 | ||||||||||||||||||||||||
Adjusted diluted earnings per share2 | 0.52 | 0.55 | 0.65 | 2.24 | 2.35 | ||||||||||||||||||||||||
Adjusted pre-provision net revenue to average assets2,4 | 1.30 | % | 1.32 | % | 1.61 | % | 1.41 | % | 1.44 | % | |||||||||||||||||||
Adjusted return on average assets2,4 | 0.94 | % | 1.00 | % | 1.17 | % | 1.03 | % | 1.06 | % | |||||||||||||||||||
Adjusted return on average tangible common equity2,4 | 13.64 | % | 14.34 | % | 19.03 | % | 15.03 | % | 15.99 | % | |||||||||||||||||||
Adjusted net interest margin2, 5 | 2.73 | % | 2.79 | % | 3.22 | % | 2.87 | % | 2.81 | % | |||||||||||||||||||
Adjusted efficiency ratio2 | 62.98 | % | 62.31 | % | 56.75 | % | 60.68 | % | 58.89 | % | |||||||||||||||||||
___________________________________________
1.Net interest income plus noninterest income, excluding securities 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 securities gains and losses.
4.For quarterly periods, measures are annualized.
5.On a tax-equivalent basis, assuming a federal income tax rate of 21%.
First Busey Corporation | 2023 Q4 — 7
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(dollars in thousands, except per share amounts)
| As of | |||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 719,581 | $ | 337,919 | $ | 232,703 | $ | 275,569 | $ | 227,164 | |||||||||||||||||||
| Investment securities | 2,970,011 | 3,074,237 | 3,186,984 | 3,302,024 | 3,391,240 | ||||||||||||||||||||||||
| Loans held for sale | 2,379 | 3,051 | 1,545 | 2,714 | 1,253 | ||||||||||||||||||||||||
| Commercial loans | 5,635,048 | 5,824,800 | 5,793,426 | 5,815,703 | 5,766,496 | ||||||||||||||||||||||||
| Retail real estate and retail other loans | 2,015,986 | 2,031,360 | 2,011,858 | 1,968,105 | 1,959,206 | ||||||||||||||||||||||||
| Portfolio loans | 7,651,034 | 7,856,160 | 7,805,284 | 7,783,808 | 7,725,702 | ||||||||||||||||||||||||
| Allowance for credit losses | (91,740) | (91,710) | (91,639) | (91,727) | (91,608) | ||||||||||||||||||||||||
| Premises and equipment | 122,594 | 122,538 | 122,669 | 126,515 | 126,524 | ||||||||||||||||||||||||
| Goodwill and other intangible assets, net | 353,864 | 356,343 | 358,898 | 361,567 | 364,296 | ||||||||||||||||||||||||
| Right of use asset | 11,027 | 11,500 | 11,806 | 12,291 | 12,829 | ||||||||||||||||||||||||
| Other assets | 544,665 | 588,212 | 580,779 | 571,794 | 579,277 | ||||||||||||||||||||||||
| Total assets | $ | 12,283,415 | $ | 12,258,250 | $ | 12,209,029 | $ | 12,344,555 | $ | 12,336,677 | |||||||||||||||||||
| LIABILITIES & STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||||||
| Noninterest bearing deposits | $ | 2,834,655 | $ | 2,918,574 | $ | 3,086,885 | $ | 3,173,783 | $ | 3,393,666 | |||||||||||||||||||
| Interest checking, savings, and money market deposits | 5,637,227 | 5,747,136 | 5,504,255 | 5,478,715 | 5,822,239 | ||||||||||||||||||||||||
| Time deposits | 1,819,274 | 1,666,652 | 1,471,615 | 1,148,671 | 855,375 | ||||||||||||||||||||||||
| Total deposits | $ | 10,291,156 | $ | 10,332,362 | $ | 10,062,755 | $ | 9,801,169 | $ | 10,071,280 | |||||||||||||||||||
| Securities sold under agreements to repurchase | $ | 187,396 | $ | 183,702 | $ | 202,953 | $ | 210,977 | $ | 229,806 | |||||||||||||||||||
| Short-term borrowings | 12,000 | 12,000 | 212,000 | 615,881 | 351,054 | ||||||||||||||||||||||||
| Long-term debt | 240,882 | 243,666 | 246,454 | 249,245 | 252,038 | ||||||||||||||||||||||||
| Junior subordinated debt owed to unconsolidated trusts | 71,993 | 71,946 | 71,900 | 71,855 | 71,810 | ||||||||||||||||||||||||
| Lease liability | 11,308 | 11,783 | 12,059 | 12,515 | 12,995 | ||||||||||||||||||||||||
| Other liabilities | 196,699 | 212,633 | 198,960 | 184,355 | 201,717 | ||||||||||||||||||||||||
| Total liabilities | 11,011,434 | 11,068,092 | 11,007,081 | 11,145,997 | 11,190,700 | ||||||||||||||||||||||||
| Total stockholders' equity | 1,271,981 | 1,190,158 | 1,201,948 | 1,198,558 | 1,145,977 | ||||||||||||||||||||||||
| Total liabilities & stockholders' equity | $ | 12,283,415 | $ | 12,258,250 | $ | 12,209,029 | $ | 12,344,555 | $ | 12,336,677 | |||||||||||||||||||
| SHARE AND PER SHARE AMOUNTS | |||||||||||||||||||||||||||||
| Book value per common share | $ | 23.02 | $ | 21.51 | $ | 21.74 | $ | 21.68 | $ | 20.73 | |||||||||||||||||||
Tangible book value per common share1 | $ | 16.62 | $ | 15.07 | $ | 15.25 | $ | 15.14 | $ | 14.14 | |||||||||||||||||||
| Ending number of common shares outstanding | 55,244,119 | 55,342,017 | 55,290,847 | 55,294,455 | 55,279,124 | ||||||||||||||||||||||||
___________________________________________
1.See “Non-GAAP Financial Information” for reconciliation.
First Busey Corporation | 2023 Q4 — 8
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(dollars in thousands, except per share amounts)
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||||||||||
| Interest and fees on loans held for sale and portfolio | $ | 101,425 | $ | 99,844 | $ | 84,947 | $ | 385,848 | $ | 287,477 | |||||||||||||||||||
| Interest on investment securities | 20,634 | 21,234 | 19,560 | 82,994 | 69,412 | ||||||||||||||||||||||||
| Other interest income | 6,641 | 1,591 | 1,377 | 10,531 | 3,097 | ||||||||||||||||||||||||
| Total interest income | $ | 128,700 | $ | 122,669 | $ | 105,884 | $ | 479,373 | $ | 359,986 | |||||||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||||||||||
| Interest on deposits | $ | 45,409 | $ | 37,068 | $ | 8,277 | $ | 123,985 | $ | 16,112 | |||||||||||||||||||
| Interest on securities sold under agreements to repurchase and federal funds purchased | 1,431 | 1,327 | 810 | 5,203 | 1,475 | ||||||||||||||||||||||||
| Interest on short-term borrowings | 248 | 1,964 | 1,221 | 12,775 | 1,647 | ||||||||||||||||||||||||
| Interest on long-term debt | 3,475 | 3,528 | 3,546 | 14,106 | 14,285 | ||||||||||||||||||||||||
| Junior subordinated debt owed to unconsolidated trusts | 1,004 | 991 | 881 | 3,853 | 3,029 | ||||||||||||||||||||||||
| Total interest expense | $ | 51,567 | $ | 44,878 | $ | 14,735 | $ | 159,922 | $ | 36,548 | |||||||||||||||||||
| Net interest income | $ | 77,133 | $ | 77,791 | $ | 91,149 | $ | 319,451 | $ | 323,438 | |||||||||||||||||||
| Provision for credit losses | 455 | 364 | 859 | 2,399 | 4,623 | ||||||||||||||||||||||||
| Net interest income after provision for credit losses | $ | 76,678 | $ | 77,427 | $ | 90,290 | $ | 317,052 | $ | 318,815 | |||||||||||||||||||
| NONINTEREST INCOME | |||||||||||||||||||||||||||||
| Wealth management fees | $ | 13,715 | $ | 14,235 | $ | 12,956 | $ | 57,309 | $ | 55,378 | |||||||||||||||||||
| Fees for customer services | 7,484 | 7,502 | 6,989 | 29,044 | 33,111 | ||||||||||||||||||||||||
| Payment technology solutions | 5,420 | 5,226 | 5,022 | 21,192 | 20,067 | ||||||||||||||||||||||||
| Mortgage revenue | 218 | 311 | 198 | 1,089 | 1,895 | ||||||||||||||||||||||||
| Income on bank owned life insurance | 1,019 | 1,001 | 947 | 4,701 | 3,663 | ||||||||||||||||||||||||
| Net securities gains (losses) | 761 | (285) | 191 | (2,199) | (2,133) | ||||||||||||||||||||||||
| Other noninterest income | 2,899 | 3,018 | 2,776 | 11,248 | 14,822 | ||||||||||||||||||||||||
| Total noninterest income | $ | 31,516 | $ | 31,008 | $ | 29,079 | $ | 122,384 | $ | 126,803 | |||||||||||||||||||
| NONINTEREST EXPENSE | |||||||||||||||||||||||||||||
| Salaries, wages, and employee benefits | $ | 42,730 | $ | 39,677 | $ | 41,790 | $ | 162,597 | $ | 159,016 | |||||||||||||||||||
| Data processing expense | 6,236 | 5,930 | 5,848 | 23,708 | 21,648 | ||||||||||||||||||||||||
| Net occupancy expense | 4,318 | 4,594 | 4,638 | 18,214 | 19,130 | ||||||||||||||||||||||||
| Furniture and equipment expense | 1,694 | 1,638 | 1,771 | 6,759 | 7,645 | ||||||||||||||||||||||||
| Professional fees | 2,574 | 1,542 | 1,432 | 7,147 | 6,125 | ||||||||||||||||||||||||
| Amortization of intangible assets | 2,479 | 2,555 | 2,795 | 10,432 | 11,628 | ||||||||||||||||||||||||
| Interchange expense | 1,355 | 1,786 | 1,692 | 6,864 | 6,298 | ||||||||||||||||||||||||
| FDIC insurance | 1,167 | 1,475 | 950 | 5,650 | 4,058 | ||||||||||||||||||||||||
| Other operating expenses | 12,426 | 11,748 | 12,761 | 44,161 | 48,333 | ||||||||||||||||||||||||
| Total noninterest expense | $ | 74,979 | $ | 70,945 | $ | 73,677 | $ | 285,532 | $ | 283,881 | |||||||||||||||||||
| Income before income taxes | $ | 33,215 | $ | 37,490 | $ | 45,692 | $ | 153,904 | $ | 161,737 | |||||||||||||||||||
| Income taxes | 7,466 | 6,824 | 11,305 | 31,339 | 33,426 | ||||||||||||||||||||||||
| Net income | $ | 25,749 | $ | 30,666 | $ | 34,387 | $ | 122,565 | $ | 128,311 | |||||||||||||||||||
| SHARE AND PER SHARE AMOUNTS | |||||||||||||||||||||||||||||
| Basic earnings per common share | $ | 0.46 | $ | 0.55 | $ | 0.62 | $ | 2.21 | $ | 2.32 | |||||||||||||||||||
| Diluted earnings per common share | $ | 0.46 | $ | 0.54 | $ | 0.61 | $ | 2.18 | $ | 2.29 | |||||||||||||||||||
| Average common shares outstanding | 55,403,662 | 55,486,700 | 55,350,423 | 55,432,322 | 55,387,073 | ||||||||||||||||||||||||
| Diluted average common shares outstanding | 56,333,033 | 56,315,492 | 56,177,790 | 56,256,148 | 56,137,164 | ||||||||||||||||||||||||
First Busey Corporation | 2023 Q4 — 9
Balance Sheet Strength
Our balance sheet remains a source of strength. Total assets were $12.28 billion as of December 31, 2023, compared to $12.26 billion as of September 30, 2023, and $12.34 billion as of December 31, 2022.
As has been our practice, we remain steadfast in our conservative approach to underwriting and disciplined approach to pricing, particularly given our outlook for the economy in the coming quarters, and this approach has impacted loan growth as predicted. Portfolio loans totaled $7.65 billion at December 31, 2023, compared to $7.86 billion at September 30, 2023, and $7.73 billion at December 31, 2022. The $205.1 million decline in portfolio loans during the fourth quarter of 2023 resulted from customer payoffs, reduced customer line utilization, and lower new origination volume.
Average portfolio loans were $7.74 billion for the fourth quarter of 2023, compared to $7.83 billion for the third quarter of 2023 and $7.62 billion for the fourth quarter of 2022. Average interest-earning assets were $11.23 billion for the fourth quarter of 2023, compared to $11.12 billion for the third quarter of 2023, and $11.24 billion for the fourth quarter of 2022.
Total deposits were $10.29 billion at December 31, 2023, compared to $10.33 billion at September 30, 2023, and $10.07 billion at December 31, 2022. Average deposits were $10.37 billion for the fourth quarter of 2023, compared to $10.14 billion for the third quarter of 2023 and $10.34 billion for the fourth quarter of 2022. Deposit fluctuations over the last several quarters were driven by a number of elements, including (1) seasonal factors, including ordinary course public fund flows and fluctuations in the normal course of business operations of certain core commercial customers, (2) the macroeconomic environment, including prevailing interest rates and anticipated future Federal Open Market Committee (“FOMC”) rate moves, as well as inflationary pressures, (3) depositors moving some funds to accounts at competitors offering above-market rates, including state-sponsored investment programs that provide rates in excess of where we can borrow in the wholesale marketplace, and (4) deposits moving within the Busey ecosystem from deposit accounts to our wealth management group. Core deposits9 accounted for 96.2% of total deposits as of December 31, 2023. Cost of deposits was 1.74% in the fourth quarter of 2023, which represents a 29 basis point increase from the third quarter of 2023. Excluding time deposits, Busey’s cost of deposits was 1.31% in the fourth quarter of 2023, a 22 basis point increase from the third quarter of 2023.
Short term borrowings were $12.0 million at both December 31, 2023, and September 30, 2023, compared to $351.1 million at December 31, 2022. We had no borrowings from the FHLB at the end of the third or fourth quarter of 2023, compared to $339.1 million at the end of the fourth quarter of 2022. We have sufficient on- and off-balance sheet liquidity10 to manage deposit fluctuations and the liquidity needs of our customers. As of December 31, 2023, our available sources of on- and off-balance sheet liquidity totaled $6.77 billion. We increased deposit campaigns starting in the first quarter of 2023 to attract term funding and savings accounts at a lower rate than our marginal cost of funds. In addition, we instituted a company-wide incentive campaign to drive new customer account openings. Our time deposit campaigns generated increased traction and production beginning in the second quarter and we expect to continue to implement prudent and measured strategies to generate deposit growth. New certificate of deposit production in the fourth quarter of 2023 had a weighted average term of 9.3 months at a rate of 4.34%, 101 basis points below our average marginal wholesale funding cost during the quarter. In total, our deposit initiatives contributed $192 million of retail deposit growth in the fourth quarter of 2023 and $289 million for the full year 2023. Furthermore, our balance sheet liquidity profile continues to be aided by the cash flows we expect from our relatively short-duration securities portfolio. Those cash flows were $83.4 million in the fourth quarter of 2023. For 2024, cash flows from our securities portfolio are expected to be approximately $342.0 million with a yield of 1.57%.
9 See “Non-GAAP Financial Information” for a reconciliation.
10 On- and off-balance sheet liquidity is comprised of cash and cash equivalents, debt securities excluding those pledged as collateral, brokered deposits, and Busey’s borrowing capacity through its revolving credit facility, the FHLB, the Federal Reserve Bank, and federal funds purchased lines.
First Busey Corporation | 2023 Q4 — 10
Asset Quality
Credit quality continues to be exceptionally strong. Loans 30-89 days past due totaled $5.8 million as of December 31, 2023, compared to $5.9 million as of September 30, 2023, and $6.5 million as of December 31, 2022. Non-performing loans were $7.8 million as of December 31, 2023, compared to $12.0 million as of September 30, 2023, and $15.7 million as of December 31, 2022. Continued disciplined credit management resulted in non-performing loans as a percentage of portfolio loans of 0.10% as of December 31, 2023, 0.15% as of September 30, 2023, and 0.20% as of December 31, 2022. Non-performing assets were 0.06% of total assets for fourth quarter of 2023, compared to 0.10% for the third quarter of 2023 and 0.13% for the fourth quarter of 2022. Our total classified assets increased to $72.3 million at December 31, 2023, from $59.6 million at September 30, 2023, while remaining significantly below the level of $107.1 million reported at December 31, 2022.
Net charge-offs were $0.4 million for the fourth quarter of 2023, compared to $0.3 million for the third quarter of 2023, and net recoveries of an immaterial amount for the fourth quarter of 2022. Our ratio of net charge-offs to average loans was 0.02% during the fourth quarter of 2023 and 0.03% for the full year. The allowance as a percentage of portfolio loans was 1.20% as of December 31, 2023, compared to 1.17% as of September 30, 2023, and 1.19% as of December 31, 2022. The allowance as a percentage of non-performing loans was 1,173.7% as of December 31, 2023, compared to 763.8% as of September 30, 2023, and 582.0% as of December 31, 2022.
Busey maintains a well-diversified loan portfolio and, as a matter of policy and practice, limits concentration exposure in any particular loan segment.
ASSET QUALITY (unaudited)
(dollars in thousands)
| As of | |||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
| Total assets | $ | 12,283,415 | $ | 12,258,250 | $ | 12,209,029 | $ | 12,344,555 | $ | 12,336,677 | |||||||||||||||||||
| Portfolio loans | 7,651,034 | 7,856,160 | 7,805,284 | 7,783,808 | 7,725,702 | ||||||||||||||||||||||||
| Loans 30 – 89 days past due | 5,779 | 5,934 | 5,169 | 5,472 | 6,548 | ||||||||||||||||||||||||
| Non-performing loans: | |||||||||||||||||||||||||||||
| Non-accrual loans | 7,441 | 11,298 | 15,209 | 14,714 | 15,067 | ||||||||||||||||||||||||
| Loans 90+ days past due and still accruing | 375 | 709 | 569 | 500 | 673 | ||||||||||||||||||||||||
| Non-performing loans | $ | 7,816 | $ | 12,007 | $ | 15,778 | $ | 15,214 | $ | 15,740 | |||||||||||||||||||
| Non-performing loans, segregated by geography: | |||||||||||||||||||||||||||||
| Illinois / Indiana | $ | 3,715 | $ | 7,951 | $ | 11,681 | $ | 10,416 | $ | 10,347 | |||||||||||||||||||
| Missouri | 3,836 | 3,747 | 3,928 | 4,103 | 4,676 | ||||||||||||||||||||||||
| Florida | 265 | 309 | 169 | 695 | 717 | ||||||||||||||||||||||||
| Other non-performing assets | 125 | 96 | 68 | 759 | 850 | ||||||||||||||||||||||||
| Non-performing assets | $ | 7,941 | $ | 12,103 | $ | 15,846 | $ | 15,973 | $ | 16,590 | |||||||||||||||||||
| Allowance for credit losses | $ | 91,740 | $ | 91,710 | $ | 91,639 | $ | 91,727 | $ | 91,608 | |||||||||||||||||||
| RATIOS | |||||||||||||||||||||||||||||
| Non-performing loans to portfolio loans | 0.10 | % | 0.15 | % | 0.20 | % | 0.20 | % | 0.20 | % | |||||||||||||||||||
| Non-performing assets to total assets | 0.06 | % | 0.10 | % | 0.13 | % | 0.13 | % | 0.13 | % | |||||||||||||||||||
| Non-performing assets to portfolio loans and other non-performing assets | 0.10 | % | 0.15 | % | 0.20 | % | 0.21 | % | 0.21 | % | |||||||||||||||||||
| Allowance for credit losses to portfolio loans | 1.20 | % | 1.17 | % | 1.17 | % | 1.18 | % | 1.19 | % | |||||||||||||||||||
| Allowance for credit losses as a percentage of non-performing loans | 1,173.75 | % | 763.80 | % | 580.80 | % | 602.91 | % | 582.01 | % | |||||||||||||||||||
First Busey Corporation | 2023 Q4 — 11
NET CHARGE-OFFS (RECOVERIES) AND PROVISION EXPENSE (RELEASE) (unaudited)
(dollars in thousands)
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
| Net charge-offs (recoveries) | $ | 425 | $ | 293 | $ | (27) | $ | 2,267 | $ | 902 | |||||||||||||||||||
| Provision expense (release) | 455 | 364 | 859 | 2,399 | 4,623 | ||||||||||||||||||||||||
| Net charge-offs, annualized | 1,686 | 1,162 | NM | 2,267 | 902 | ||||||||||||||||||||||||
| Average portfolio loans | 7,736,010 | 7,834,285 | 7,619,199 | 7,759,472 | 7,445,962 | ||||||||||||||||||||||||
| Net charge-off ratio | 0.02 | % | 0.01 | % | NM | 0.03 | % | 0.01 | % | ||||||||||||||||||||
Net Interest Margin11 and Net Interest Income
Net interest margin was 2.74% for the fourth quarter of 2023, compared to 2.80% for the third quarter of 2023 and 3.24% for the fourth quarter of 2022. Excluding purchase accounting accretion, adjusted net interest margin11 was 2.73% for the fourth quarter of 2023, compared to 2.79% in the third quarter of 2023 and 3.22% in the fourth quarter of 2022. Net interest income was $77.1 million in the fourth quarter of 2023, compared to $77.8 million in the third quarter of 2023 and $91.1 million in the fourth quarter of 2022.
The FOMC raised rates by a total of 525 basis points since the onset of the current FOMC tightening cycle that began in the first quarter of 2022, with no further increases during the fourth quarter of 2023. Rising rates initially have a positive impact on net interest margin, as assets, in particular commercial loans, reprice more quickly and to a greater extent than liabilities. As deposit and funding costs increase in response to the tightening rate cycle, and we experience deposit migration into higher cost offerings and funding alternatives, some of the net interest margin expansion is reversed, which we began to experience in the first quarter of 2023. Components of the 6 basis point decrease in net interest margin during the fourth quarter of 2023 include:
•Increases in the cash and securities portfolio yield contributed +15 basis points
•Reduced borrowing costs contributed +6 basis points
•Increased income from our held for sale and portfolio loans contributed +2 basis points
•Increased non-maturity deposit funding costs contributed -17 basis points
•Increased time deposit funding costs contributed -12 basis points
Based on our most recent Asset Liability Management Committee (“ALCO”) model, a 100 basis point parallel rate shock is expected to increase net interest income by 1.8% over the subsequent twelve-month period. Market competition for deposits continues and deposit betas are likely to rise marginally during the first half of 2024, which is factored into our ALCO model and margin forecast. Busey continues to evaluate off-balance sheet hedging and balance sheet restructuring strategies as well as embedding rate protection in our asset originations to provide stabilization to net interest income in lower rate environments. Time deposit specials and retail incentive campaigns continue to provide sufficient funding flows and we maintained excess earning cash levels throughout the quarter. Since the onset of the current FOMC tightening cycle that began in the first quarter of 2022, our cumulative interest-bearing non-maturity deposit beta has been 36%. Our cycle-to-date total deposit beta has been 31% through December 31, 2023. Deposit betas are calculated based on an average federal funds rate of 5.50% during the fourth quarter of 2023, which is a 7 basis point increase over the third quarter of 2023 average federal funds rate of 5.43%.
11 See “Non-GAAP Financial Information” for a reconciliation.
First Busey Corporation | 2023 Q4 — 12
Noninterest Income
Noninterest income was $31.5 million for the fourth quarter of 2023, as compared to $31.0 million for the third quarter of 2023 and $29.1 million for the fourth quarter of 2022. Revenues from wealth management fees and payment technology solutions activities represented 60.7% of Busey’s noninterest income for the quarter ended December 31, 2023, providing a balance to spread-based revenue from traditional banking activities.
Consolidated wealth management fees were $13.7 million for the fourth quarter of 2023, compared to $14.2 million for the third quarter of 2023 and $13.0 million for the fourth quarter of 2022. On a segment basis, Wealth Management generated $13.8 million in revenue during the fourth quarter of 2023, a 6.6% increase over the $13.0 million reported in the fourth quarter of 2022. The Wealth Management operating segment generated net income of $4.2 million in fourth quarter of 2023, compared to $4.8 million in the third quarter of 2023 and $3.9 million in the fourth quarter of 2022. Busey’s Wealth Management division ended the fourth quarter of 2023 with $12.1 billion in assets under care, compared to $11.5 billion at the end of the third quarter of 2023 and $11.1 billion at the end of the fourth quarter of 2022. Our portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets, and has outperformed its blended benchmark12 over the last three and five years.
Payment technology solutions revenue was $5.4 million for the fourth quarter of 2023, compared to $5.2 million for the third quarter of 2023 and $5.0 million for the fourth quarter of 2022. Excluding intracompany eliminations, the FirsTech operating segment generated revenue of $5.8 million during the fourth quarter of 2023, compared to $5.7 million in the third quarter of 2023 and $5.4 million in the fourth quarter of 2022. Fourth quarter of 2023 results marked a new record high reported quarterly revenue for FirsTech. The FirsTech operating segment generated net income of $0.3 million in both the third and fourth quarters of 2023 and net losses of $0.5 million in the fourth quarter of 2022.
Fees for customer services were $7.5 million for both the third and fourth quarters of 2023 and $7.0 million in the fourth quarter of 2022.
Net securities gains were $0.8 million for the fourth quarter of 2023, which were comprised of $0.2 million in realized net gains and a $0.6 million unrealized gain on equity securities.
Other noninterest income was $2.9 million in the fourth quarter of 2023, compared to $3.0 million in the third quarter of 2023 and $2.8 million in the fourth quarter of 2022. Primary contributors to other noninterest income include swap origination fees, gains on commercial loans sales, and changes in venture capital investment valuations.
Operating Efficiency
Noninterest expense was $75.0 million in the fourth quarter of 2023, compared to $70.9 million in the third quarter of 2023 and $73.7 million for the fourth quarter of 2022. The efficiency ratio13 was 66.9% for the fourth quarter of 2023, compared to 62.4% for the third quarter of 2023, and 58.8% for the fourth quarter of 2022. The adjusted core efficiency ratio13 was 60.1% for the fourth quarter of 2023, compared to 60.2% for the third quarter of 2023 and 55.8% for the fourth quarter of 2022. Busey remains focused on expense discipline.
12 The blended benchmark consists of 60% MSCI All Country World Index and 40% Bloomberg Intermediate US Government/Credit Total Return Index.
13 See “Non-GAAP Financial Information” for a reconciliation.
First Busey Corporation | 2023 Q4 — 13
Noteworthy components of noninterest expense are as follows:
•Salaries, wages, and employee benefits expenses were $42.7 million in the fourth quarter of 2023, compared to $39.7 million in the third quarter of 2023 and $41.8 million in the fourth quarter of 2022. Busey recorded $3.8 million of non-operating salaries, wages, and employee benefit expenses in the fourth quarter of 2023, as compared to none in the third quarter of 2023 and $2.4 million in the fourth quarter of 2022. Excluding these items, salaries, wages, and employee benefits expenses were $38.9 million in the fourth quarter of 2023, compared to $39.4 million in the fourth quarter of 2022. Our associate-base consisted of 1,479 full-time equivalents as of December 31, 2023, compared to 1,484 as of September 30, 2023, and 1,497 as of December 31, 2022.
•Data processing expense was $6.2 million in the fourth quarter of 2023, compared to $5.9 million in the third quarter of 2023 and $5.8 million in the fourth quarter of 2022. The year-over-year increase was related to Company-wide investments in technology enhancements, as well as inflation-driven price increases.
•Professional fees were $2.6 million in the fourth quarter of 2023, compared to $1.5 million in the third quarter of 2023 and $1.4 million in the fourth quarter of 2022. Busey recorded $0.4 million of non-operating Professional fees in the fourth quarter of 2023, as compared to $0.1 million in the third quarter of 2023 and an immaterial amount in the fourth quarter of 2022. The quarter-over-quarter increase was driven by seasonally higher audit and accounting fees and increased consulting expenses.
•Amortization of intangible assets was $2.5 million in the fourth quarter of 2023, compared to $2.6 million in the third quarter of 2023 and $2.8 million in the fourth quarter of 2022.
•FDIC insurance expense was $1.2 million in the fourth quarter of 2023, compared to $1.5 million in the third quarter of 2023 and $1.0 million in the fourth quarter of 2022. Increases in 2023 were a result of an FDIC final rule to increase the initial base deposit insurance assessment rate applicable to all FDIC-insured depository institutions by two basis points.
•Other operating expenses were $12.4 million for the fourth quarter of 2023, compared to $11.7 million in the third quarter of 2023 and $12.8 million in the fourth quarter of 2022. The quarter-over-quarter increase is attributable to multiple items, including increases in the provision for unfunded commitments, marketing, and business development expenses.
Busey's effective tax rate for the fourth quarter of 2023 was 22.5%, bringing the full year effective tax rate for 2023 to 20.4%, which was lower than the combined federal and state statutory rate of approximately 28.0% due to tax exempt interest income, such as municipal bond interest, bank owned life insurance income, and investments in various federal and state tax credits.
In January 2024, Busey adopted ASU 2023-02, which allows entities to elect to account for equity investments made primarily for the purpose of receiving income tax credits using the proportional amortization method, regardless of the tax credit program through which the investment earns income tax credits, if certain conditions are met. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense as opposed to being presented on a gross basis on the income statement as a component of noninterest expense and income tax expense.
First Busey Corporation | 2023 Q4 — 14
Capital Strength
Busey's strong capital levels, coupled with its earnings, have allowed the Company to provide a steady return to its stockholders through dividends. On January 26, 2024, Busey will pay a cash dividend of $0.24 per common share to stockholders of record as of January 19, 2024. Busey has consistently paid dividends to its common stockholders since the bank holding company was organized in 1980.
As of December 31, 2023, Busey continued to exceed the capital adequacy requirements necessary to be considered “well-capitalized” under applicable regulatory guidelines. Busey’s Common Equity Tier 1 ratio is estimated14 to be 13.09% at December 31, 2023, compared to 12.52% at September 30, 2023, and 11.96% at December 31, 2022. Our Total Capital to Risk Weighted Assets ratio is estimated14 to be 17.44% at December 31, 2023, compared to 16.72% at September 30, 2023, and 16.12% at December 31, 2022.
Busey’s tangible common equity15 was $925.0 million at December 31, 2023, compared to $841.2 million at September 30, 2023, and $790.5 million at December 31, 2022. Tangible common equity15 represented 7.75% of tangible assets at December 31, 2023, compared to 7.06% at September 30, 2023, and 6.60% at December 31, 2022. Busey’s tangible book value per common share15 increased to $16.62 at December 31, 2023, from $15.07 at September 30, 2023 and $14.14 at December 31, 2022, reflecting a 17.5% year-over-year increase. The ratios of tangible common equity to tangible assets15 and tangible book value per common share have been impacted by the fair market valuation adjustment of Busey’s securities portfolio as a result of the current rate environment, which is reflected in the accumulated other comprehensive income (loss) component of shareholder’s equity.
During the fourth quarter of 2023, Busey purchased 117,812 shares of its common stock at a weighted average price of $19.30 per share for a total of $2.3 million under the Company’s stock repurchase plan. Repurchases were executed due to favorable pricing of Busey’s shares during the fourth quarter of 2023. As of December 31, 2023, Busey had 1,919,275 shares remaining on its stock repurchase plan available for repurchase.
4Q23 Earnings Investor Presentation
For additional information on Busey’s financial condition and operating results, please refer to the 4Q23 Earnings Investor Presentation furnished via Form 8-K on January 23, 2024, in connection with this earnings release.
14 Capital ratios for the fourth quarter of 2023 are not yet finalized, and are subject to change.
15 See “Non-GAAP Financial Information” for a reconciliation.
First Busey Corporation | 2023 Q4 — 15
Corporate Profile
As of December 31, 2023, First Busey Corporation (Nasdaq: BUSE) was a $12.28 billion financial holding company headquartered in Champaign, Illinois.
Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation, had total assets of $12.25 billion as of December 31, 2023, and is headquartered in Champaign, Illinois. Busey Bank currently has 46 banking centers serving Illinois, eight banking centers serving Missouri, three banking centers serving southwest Florida, and one banking center in Indianapolis, Indiana. More information about Busey Bank can be found at busey.com.
Through Busey’s Wealth Management division, the Company provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations. Assets under care totaled $12.14 billion as of December 31, 2023. More information about Busey’s Wealth Management services can be found at busey.com/wealth-management.
Busey Bank’s wholly-owned subsidiary, FirsTech, specializes in the evolving financial technology needs of small and medium-sized businesses, highly regulated enterprise industries, and financial institutions. FirsTech provides comprehensive and innovative payment technology solutions including online, mobile, and voice-recognition bill payments; money and data movement; merchant services; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments at retail agents. Additionally, FirsTech simplifies client workflows through integrations enabling support with billing, reconciliation, bill reminders, and treasury services. More information about FirsTech can be found at firstechpayments.com.
Busey Bank is honored to be named among America’s Best Banks by Forbes magazine for the second consecutive year. Ranked 26th overall in 2023, compared to 52nd in 2022, Busey was once again the top-ranked bank headquartered in Illinois. Busey is humbled to be named among the 2023 Best Banks to Work For by American Banker, the 2023 Best Places to Work in Money Management by Pensions and Investments, the 2023 Best Places to Work in Illinois by Daily Herald Business Ledger, and the 2023 Best Companies to Work For in Florida by Florida Trend magazine. We are honored to be consistently recognized nationally and locally for our engaged culture of integrity and commitment to community development.
For more information about us, visit busey.com.
Category: Financial
Source: First Busey Corporation
Source: First Busey Corporation
Contacts:
Jeffrey D. Jones, Chief Financial Officer
217-365-4130
217-365-4130
First Busey Corporation | 2023 Q4 — 16
Non-GAAP Financial Information
This earnings release contains certain financial information determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of Busey’s performance and in making business decisions, as well as for comparison to the Company’s peers. Busey believes the adjusted measures are useful for investors and management to understand the effects of certain non-core and non-recurring noninterest items and provide additional perspective on the Company’s performance over time.
A reconciliation to what management believes to be the most directly comparable GAAP financial measures—specifically, net interest income, total noninterest income, net security gains and losses, and total noninterest expense in the case of pre-provision net revenue, adjusted pre-provision net revenue, pre-provision net revenue to average assets, and adjusted pre-provision net revenue to average assets; net income in the case of adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, average tangible common equity, return on average tangible common equity, and adjusted return on average tangible common equity; net income and net security gains and losses in the case of net income excluding net securities gains and losses and diluted earnings per share excluding net securities gains and losses; net interest income in the case of adjusted net interest income and adjusted net interest margin; net interest income, total noninterest income, and total noninterest expense in the case of adjusted noninterest expense, noninterest expense excluding non-operating adjustments, adjusted core expense, efficiency ratio, adjusted efficiency ratio, and adjusted core efficiency ratio; total assets and goodwill and other intangible assets in the case of tangible assets; total stockholders’ equity in the case of tangible book value per common share; total assets and total stockholders’ equity in the case of tangible common equity and tangible common equity to tangible assets; portfolio loans in the case of core loans and core loans to portfolio loans; total deposits in the case of core deposits and core deposits to total deposits; and portfolio loans and total deposits in the case of core loans to core deposits—appears below.
These non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for operating results reported in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Tax effected numbers included in these non-GAAP disclosures are based on estimated statutory rates or effective rates as appropriate.
First Busey Corporation | 2023 Q4 — 17
Reconciliation Of Non-GAAP Financial Measures (unaudited)
| Pre-Provision Net Revenue, Adjusted Pre-Provision Net Revenue, Pre-Provision Net Revenue to Average Assets, and Adjusted Pre-Provision Net Revenue to Average Assets | ||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
| PRE-PROVISION NET REVENUE | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 77,133 | $ | 77,791 | $ | 91,149 | $ | 319,451 | $ | 323,438 | ||||||||||||||||||||||
| Total noninterest income | 31,516 | 31,008 | 29,079 | 122,384 | 126,803 | |||||||||||||||||||||||||||
| Net security (gains) losses | (761) | 285 | (191) | 2,199 | 2,133 | |||||||||||||||||||||||||||
| Total noninterest expense | (74,979) | (70,945) | (73,677) | (285,532) | (283,881) | |||||||||||||||||||||||||||
| Pre-provision net revenue | 32,909 | 38,139 | 46,360 | 158,502 | 168,493 | |||||||||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
| Acquisition and other restructuring expenses | 4,237 | 79 | 2,442 | 4,328 | 4,537 | |||||||||||||||||||||||||||
| Provision for unfunded commitments | 818 | 13 | (464) | 461 | 61 | |||||||||||||||||||||||||||
| Amortization of New Markets Tax Credits | 2,259 | 2,260 | 1,665 | 8,999 | 6,333 | |||||||||||||||||||||||||||
| Adjusted pre-provision net revenue | $ | 40,223 | $ | 40,491 | $ | 50,003 | $ | 172,290 | $ | 179,424 | ||||||||||||||||||||||
| Pre-provision net revenue, annualized | [a] | $ | 130,563 | $ | 151,312 | $ | 183,928 | $ | 158,502 | $ | 168,493 | |||||||||||||||||||||
| Adjusted pre-provision net revenue, annualized | [b] | 159,580 | 160,644 | 198,381 | 172,290 | 179,424 | ||||||||||||||||||||||||||
| Average total assets | [c] | 12,308,491 | 12,202,783 | 12,330,132 | 12,246,218 | 12,492,948 | ||||||||||||||||||||||||||
Reported: Pre-provision net revenue to average assets1 | [a÷c] | 1.06 | % | 1.24 | % | 1.49 | % | 1.29 | % | 1.35 | % | |||||||||||||||||||||
Adjusted: Pre-provision net revenue to average assets1 | [b÷c] | 1.30 | % | 1.32 | % | 1.61 | % | 1.41 | % | 1.44 | % | |||||||||||||||||||||
___________________________________________
1.For quarterly periods, measures are annualized.
First Busey Corporation | 2023 Q4 — 18
Reconciliation Of Non-GAAP Financial Measures (unaudited)
| Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Return on Average Assets, Average Tangible Common Equity, Return on Average Tangible Common Equity, and Adjusted Return on Average Tangible Common Equity | ||||||||||||||||||||||||||||||||
| (dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
| NET INCOME ADJUSTED FOR NON-OPERATING ITEMS | ||||||||||||||||||||||||||||||||
| Net income | [a] | $ | 25,749 | $ | 30,666 | $ | 34,387 | $ | 122,565 | $ | 128,311 | |||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
| Acquisition expenses: | ||||||||||||||||||||||||||||||||
| Salaries, wages, and employee benefits | — | — | — | — | 587 | |||||||||||||||||||||||||||
| Data processing | — | — | — | — | 214 | |||||||||||||||||||||||||||
| Professional fees, occupancy, and other | 266 | 79 | 16 | 357 | 258 | |||||||||||||||||||||||||||
| Other restructuring expenses: | ||||||||||||||||||||||||||||||||
| Salaries, wages, and employee benefits | 3,760 | — | 2,409 | 3,760 | 2,409 | |||||||||||||||||||||||||||
| Loss on leases or fixed asset impairment | — | — | 10 | — | 986 | |||||||||||||||||||||||||||
| Professional fees, occupancy, and other | 211 | — | 7 | 211 | 83 | |||||||||||||||||||||||||||
Related tax benefit1 | (863) | (15) | (539) | (881) | (938) | |||||||||||||||||||||||||||
| Adjusted net income | [b] | $ | 29,123 | $ | 30,730 | $ | 36,290 | $ | 126,012 | $ | 131,910 | |||||||||||||||||||||
| DILUTED EARNINGS PER SHARE | ||||||||||||||||||||||||||||||||
| Diluted average common shares outstanding | [c] | 56,333,033 | 56,315,492 | 56,177,790 | 56,256,148 | 56,137,164 | ||||||||||||||||||||||||||
Reported: Diluted earnings per share | [a÷c] | $ | 0.46 | $ | 0.54 | $ | 0.61 | $ | 2.18 | $ | 2.29 | |||||||||||||||||||||
Adjusted: Diluted earnings per share | [b÷c] | $ | 0.52 | $ | 0.55 | $ | 0.65 | $ | 2.24 | $ | 2.35 | |||||||||||||||||||||
| RETURN ON AVERAGE ASSETS | ||||||||||||||||||||||||||||||||
| Net income, annualized | [d] | $ | 102,156 | $ | 121,664 | $ | 136,427 | $ | 122,565 | $ | 128,311 | |||||||||||||||||||||
| Adjusted net income, annualized | [e] | 115,542 | 121,918 | 143,977 | 126,012 | 131,910 | ||||||||||||||||||||||||||
| Average total assets | [f] | 12,308,491 | 12,202,783 | 12,330,132 | 12,246,218 | 12,492,948 | ||||||||||||||||||||||||||
Reported: Return on average assets2 | [d÷f] | 0.83 | % | 1.00 | % | 1.11 | % | 1.00 | % | 1.03 | % | |||||||||||||||||||||
Adjusted: Return on average assets2 | [e÷f] | 0.94 | % | 1.00 | % | 1.17 | % | 1.03 | % | 1.06 | % | |||||||||||||||||||||
| RETURN ON AVERAGE TANGIBLE COMMON EQUITY | ||||||||||||||||||||||||||||||||
| Average common equity | $ | 1,202,417 | $ | 1,208,407 | $ | 1,122,547 | $ | 1,197,511 | $ | 1,195,171 | ||||||||||||||||||||||
| Average goodwill and other intangible assets, net | (355,469) | (358,025) | (366,127) | (359,347) | (370,424) | |||||||||||||||||||||||||||
| Average tangible common equity | [g] | $ | 846,948 | $ | 850,382 | $ | 756,420 | $ | 838,164 | $ | 824,747 | |||||||||||||||||||||
Reported: Return on average tangible common equity2 | [d÷g] | 12.06 | % | 14.31 | % | 18.04 | % | 14.62 | % | 15.56 | % | |||||||||||||||||||||
Adjusted: Return on average tangible common equity2 | [e÷g] | 13.64 | % | 14.34 | % | 19.03 | % | 15.03 | % | 15.99 | % | |||||||||||||||||||||
___________________________________________
1.Full year tax benefits were calculated by multiplying full year acquisition expenses and other restructuring expenses by the annual effective tax rates for the full year periods. The annual effective tax rates used in these calculations were 20.4% for the year ended December 31, 2023, and 20.7% for the year ended December 31, 2022. Quarterly tax benefits were calculated as the full year amounts less the sum of amounts applied to previous quarters within the year.
2.For quarterly periods, measures are annualized.
First Busey Corporation | 2023 Q4 — 19
Reconciliation Of Non-GAAP Financial Measures (unaudited)
| Adjusted Net Income Excluding Net Securities Gains and Losses and Adjusted Diluted Earnings Per Share Excluding Net Securities Gains and Losses | ||||||||||||||||||||||||||||||||
| (dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
Adjusted net income1 | [a] | $ | 29,123 | $ | 30,730 | $ | 36,290 | $ | 126,012 | $ | 131,910 | |||||||||||||||||||||
| Further non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
| Net securities (gains) losses | (761) | 285 | (191) | 2,199 | 2,133 | |||||||||||||||||||||||||||
Tax effect for net securities (gains) losses2 | 171 | (52) | 47 | (448) | (441) | |||||||||||||||||||||||||||
Tax effected net securities (gains) losses3 | (590) | 233 | (144) | 1,751 | 1,692 | |||||||||||||||||||||||||||
Net income excluding net securities (gains) losses3 | [b] | $ | 28,533 | $ | 30,963 | $ | 36,146 | $ | 127,763 | $ | 133,602 | |||||||||||||||||||||
| Diluted average common shares outstanding | [c] | 56,333,033 | 56,315,492 | 56,177,790 | 56,256,148 | 56,137,164 | ||||||||||||||||||||||||||
Adjusted: Diluted earnings per share | [a÷c] | $ | 0.52 | $ | 0.55 | $ | 0.65 | $ | 2.24 | $ | 2.35 | |||||||||||||||||||||
Adjusted: Diluted earnings per share, excluding net securities (gains) losses3 | [b÷c] | $ | 0.51 | $ | 0.55 | $ | 0.64 | $ | 2.27 | $ | 2.38 | |||||||||||||||||||||
___________________________________________
1.Adjusted net income is a non-GAAP measure. See the table on the previous page for a reconciliation to the nearest GAAP measure.
2.Tax effects for net securities gains and losses were calculated by multiplying net securities gains and losses by the effective income tax rates for the periods indicated. Effective tax rates were 22.5%, 18.2%, and 24.7% for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, respectively, and were 20.4% and 20.7% for the years ended December 31, 2023, and December 31, 2022, respectively.
3.Tax-effected measure.
| Adjusted Net Interest Income and Adjusted Net Interest Margin | ||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
| Net interest income | $ | 77,133 | $ | 77,791 | $ | 91,149 | $ | 319,451 | $ | 323,438 | ||||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
Tax-equivalent adjustment1 | 501 | 553 | 564 | 2,173 | 2,199 | |||||||||||||||||||||||||||
| Tax-equivalent net interest income | 77,634 | 78,344 | 91,713 | 321,624 | 325,637 | |||||||||||||||||||||||||||
| Purchase accounting accretion related to business combinations | (384) | (277) | (546) | (1,477) | (3,134) | |||||||||||||||||||||||||||
| Adjusted net interest income | $ | 77,250 | $ | 78,067 | $ | 91,167 | $ | 320,147 | $ | 322,503 | ||||||||||||||||||||||
| Tax-equivalent net interest income, annualized | [a] | $ | 308,004 | $ | 310,821 | $ | 363,861 | $ | 321,624 | $ | 325,637 | |||||||||||||||||||||
| Adjusted net interest income, annualized | [b] | 306,481 | 309,722 | 361,695 | 320,147 | 322,503 | ||||||||||||||||||||||||||
| Average interest-earning assets | [c] | 11,229,326 | 11,118,167 | 11,242,126 | 11,164,594 | 11,473,063 | ||||||||||||||||||||||||||
Reported: Net interest margin2 | [a÷c] | 2.74 | % | 2.80 | % | 3.24 | % | 2.88 | % | 2.84 | % | |||||||||||||||||||||
Adjusted: Net interest margin2 | [b÷c] | 2.73 | % | 2.79 | % | 3.22 | % | 2.87 | % | 2.81 | % | |||||||||||||||||||||
___________________________________________
1.Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
2.For quarterly periods, measures are annualized.
First Busey Corporation | 2023 Q4 — 20
Reconciliation Of Non-GAAP Financial Measures (unaudited)
| Noninterest Expense Excluding Amortization of Intangible Assets, Adjusted Noninterest Expense, Adjusted Core Expense, Noninterest Expense Excluding Non-operating Adjustments, Efficiency Ratio, Adjusted Efficiency Ratio, and Adjusted Core Efficiency Ratio | ||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
| Net interest income | $ | 77,133 | $ | 77,791 | $ | 91,149 | $ | 319,451 | $ | 323,438 | ||||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
Tax-equivalent adjustment1 | 501 | 553 | 564 | 2,173 | 2,199 | |||||||||||||||||||||||||||
| Tax-equivalent net interest income | 77,634 | 78,344 | 91,713 | 321,624 | 325,637 | |||||||||||||||||||||||||||
| Total noninterest income | 31,516 | 31,008 | 29,079 | 122,384 | 126,803 | |||||||||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
| Net security (gains) losses | (761) | 285 | (191) | 2,199 | 2,133 | |||||||||||||||||||||||||||
| Noninterest income excluding net securities gains and losses | 30,755 | 31,293 | 28,888 | 124,583 | 128,936 | |||||||||||||||||||||||||||
| Tax-equivalent revenue | [a] | $ | 108,389 | $ | 109,637 | $ | 120,601 | $ | 446,207 | $ | 454,573 | |||||||||||||||||||||
| Total noninterest expense | $ | 74,979 | $ | 70,945 | $ | 73,677 | $ | 285,532 | $ | 283,881 | ||||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
| Amortization of intangible assets | [b] | (2,479) | (2,555) | (2,795) | (10,432) | (11,628) | ||||||||||||||||||||||||||
| Noninterest expense excluding amortization of intangible assets | [c] | 72,500 | 68,390 | 70,882 | 275,100 | 272,253 | ||||||||||||||||||||||||||
| Non-operating adjustments: | ||||||||||||||||||||||||||||||||
| Salaries, wages, and employee benefits | (3,760) | — | (2,409) | (3,760) | (2,996) | |||||||||||||||||||||||||||
| Data processing | — | — | — | — | (214) | |||||||||||||||||||||||||||
| Impairment, professional fees, occupancy, and other | (477) | (79) | (33) | (568) | (1,327) | |||||||||||||||||||||||||||
| Adjusted noninterest expense | [f] | 68,263 | 68,311 | 68,440 | 270,772 | 267,716 | ||||||||||||||||||||||||||
| Provision for unfunded commitments | (818) | (13) | 464 | (461) | (61) | |||||||||||||||||||||||||||
| Amortization of New Markets Tax Credits | (2,259) | (2,260) | (1,665) | (8,999) | (6,333) | |||||||||||||||||||||||||||
| Adjusted core expense | [g] | $ | 65,186 | $ | 66,038 | $ | 67,239 | $ | 261,312 | $ | 261,322 | |||||||||||||||||||||
| Noninterest expense, excluding non-operating adjustments | [f-b] | $ | 70,742 | $ | 70,866 | $ | 71,235 | $ | 281,204 | $ | 279,344 | |||||||||||||||||||||
Reported: Efficiency ratio | [c÷a] | 66.89 | % | 62.38 | % | 58.77 | % | 61.65 | % | 59.89 | % | |||||||||||||||||||||
Adjusted: Efficiency ratio | [f÷a] | 62.98 | % | 62.31 | % | 56.75 | % | 60.68 | % | 58.89 | % | |||||||||||||||||||||
Adjusted: Core efficiency ratio | [g÷a] | 60.14 | % | 60.23 | % | 55.75 | % | 58.56 | % | 57.49 | % | |||||||||||||||||||||
___________________________________________
1.Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
First Busey Corporation | 2023 Q4 — 21
Reconciliation Of Non-GAAP Financial Measures (unaudited)
| Tangible Book Value and Tangible Book Value Per Common Share | ||||||||||||||||||||||||||||||||
| (dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
| As of | ||||||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
| Total stockholders' equity | $ | 1,271,981 | $ | 1,190,158 | $ | 1,201,948 | $ | 1,198,558 | $ | 1,145,977 | ||||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
| Goodwill and other intangible assets, net | (353,864) | (356,343) | (358,898) | (361,567) | (364,296) | |||||||||||||||||||||||||||
| Tangible book value | [a] | $ | 918,117 | $ | 833,815 | $ | 843,050 | $ | 836,991 | $ | 781,681 | |||||||||||||||||||||
| Ending number of common shares outstanding | [b] | 55,244,119 | 55,342,017 | 55,290,847 | 55,294,455 | 55,279,124 | ||||||||||||||||||||||||||
| Tangible book value per common share | [a÷b] | $ | 16.62 | $ | 15.07 | $ | 15.25 | $ | 15.14 | $ | 14.14 | |||||||||||||||||||||
| Tangible Assets, Tangible Common Equity, and Tangible Common Equity to Tangible Assets | ||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||
| As of | ||||||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
| Total assets | $ | 12,283,415 | $ | 12,258,250 | $ | 12,209,029 | $ | 12,344,555 | $ | 12,336,677 | ||||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
| Goodwill and other intangible assets, net | (353,864) | (356,343) | (358,898) | (361,567) | (364,296) | |||||||||||||||||||||||||||
Tax effect of other intangible assets1 | 6,888 | 7,354 | 7,833 | 8,335 | 8,847 | |||||||||||||||||||||||||||
Tangible assets2 | [a] | $ | 11,936,439 | $ | 11,909,261 | $ | 11,857,964 | $ | 11,991,323 | $ | 11,981,228 | |||||||||||||||||||||
| Total stockholders' equity | $ | 1,271,981 | $ | 1,190,158 | $ | 1,201,948 | $ | 1,198,558 | $ | 1,145,977 | ||||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
| Goodwill and other intangible assets, net | (353,864) | (356,343) | (358,898) | (361,567) | (364,296) | |||||||||||||||||||||||||||
Tax effect of other intangible assets1 | 6,888 | 7,354 | 7,833 | 8,335 | 8,847 | |||||||||||||||||||||||||||
Tangible common equity2 | [b] | $ | 925,005 | $ | 841,169 | $ | 850,883 | $ | 845,326 | $ | 790,528 | |||||||||||||||||||||
Tangible common equity to tangible assets2 | [b÷a] | 7.75 | % | 7.06 | % | 7.18 | % | 7.05 | % | 6.60 | % | |||||||||||||||||||||
___________________________________________
1.Net of estimated deferred tax liability, calculated using the estimated statutory tax rate of 28%.
2.Tax-effected measure.
First Busey Corporation | 2023 Q4 — 22
Reconciliation Of Non-GAAP Financial Measures (unaudited)
| Core Loans, Core Loans to Portfolio Loans, Core Deposits, Core Deposits to Total Deposits, and Core Loans to Core Deposits | ||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||
| As of | ||||||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
| Portfolio loans | [a] | $ | 7,651,034 | $ | 7,856,160 | $ | 7,805,284 | $ | 7,783,808 | $ | 7,725,702 | |||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
| PPP loans amortized cost | (313) | (598) | (667) | (750) | (845) | |||||||||||||||||||||||||||
| Core loans | [b] | $ | 7,650,721 | $ | 7,855,562 | $ | 7,804,617 | $ | 7,783,058 | $ | 7,724,857 | |||||||||||||||||||||
| Total deposits | [c] | $ | 10,291,156 | $ | 10,332,362 | $ | 10,062,755 | $ | 9,801,169 | $ | 10,071,280 | |||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
| Brokered transaction accounts | (6,001) | (6,055) | (6,055) | (6,005) | (1,303) | |||||||||||||||||||||||||||
| Time deposits of $250,000 or more | (386,286) | (350,276) | (297,967) | (200,898) | (120,377) | |||||||||||||||||||||||||||
| Core deposits | [d] | $ | 9,898,869 | $ | 9,976,031 | $ | 9,758,733 | $ | 9,594,266 | $ | 9,949,600 | |||||||||||||||||||||
| RATIOS | ||||||||||||||||||||||||||||||||
| Core loans to portfolio loans | [b÷a] | 100.00 | % | 99.99 | % | 99.99 | % | 99.99 | % | 99.99 | % | |||||||||||||||||||||
| Core deposits to total deposits | [d÷c] | 96.19 | % | 96.55 | % | 96.98 | % | 97.89 | % | 98.79 | % | |||||||||||||||||||||
| Core loans to core deposits | [b÷d] | 77.29 | % | 78.74 | % | 79.98 | % | 81.12 | % | 77.64 | % | |||||||||||||||||||||
First Busey Corporation | 2023 Q4 — 23
Special Note Concerning Forward-Looking Statements
This document may contain 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 Busey and M&M. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of Busey’s and M&M’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 neither Busey nor M&M undertakes any obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond the ability of Busey and M&M to control or predict, could cause actual results to differ materially from those in any forward-looking statements. These factors include, among others, the following: (1) the possibility that any of the anticipated benefits of the proposed transaction between Busey and M&M will not be realized or will not be realized within the expected time period; (2) the risk that integration of operations of M&M with those of Busey will be materially delayed or will be more costly or difficult than expected; (3) the inability to complete the proposed transaction due to the failure of the required approval of M&M’s stockholders; (4) the failure to satisfy other conditions to completion of the proposed transaction, including receipt of required regulatory and other approvals; (5) the failure of the proposed transaction to close for any other reason; (6) the effect of the announcement of the transaction on customer relationships and operating results; (7) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (8) the strength of the local, state, national, and international economy (including effects of inflationary pressures and supply chain constraints); (9) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics (including the Coronavirus Disease 2019 pandemic), or other adverse external events that could cause economic deterioration or instability in credit markets (including Russia’s invasion of Ukraine and the Israeli-Palestinian conflict); (10) changes in state and federal laws, regulations, and governmental policies concerning Busey's or M&M's general business (including changes in response to the recent failures of other banks); (11) changes in accounting policies and practices; (12) changes in interest rates and prepayment rates of Busey’s or M&M's assets (including the impact of the London Interbank Offered Rate phase-out and the recent and potential additional rate increases by the Federal Reserve); (13) increased competition in the financial services sector (including from non-bank competitors such as credit unions and fintech companies) and the inability to attract new customers; (14) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (15) the loss of key executives or associates; (16) changes in consumer spending; (17) unexpected results of acquisitions, including the acquisition of M&M and the performance of M&M’s life equity loan business; (18) unexpected outcomes of existing or new litigation involving Busey or M&M; (19) fluctuations in the value of securities held in Busey’s or M&M’s securities portfolio; (20) concentrations within Busey’s or M&M’s loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (21) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (22) the level of non-performing assets on Busey’s or M&M’s balance sheets; (23) interruptions involving information technology and communications systems or third-party servicers; (24) breaches or failures of information security controls or cybersecurity-related incidents; and (25) the economic impact of exceptional weather occurrences such as tornadoes, hurricanes, floods, blizzards, and droughts. 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 Busey and its business, including additional factors that could materially affect Busey’s financial results, is included in Busey’s filings with the Securities and Exchange Commission (“SEC”).
Additional Information
Busey filed a registration statement on Form S-4 with the SEC on January 12, 2024, in connection with the proposed transaction. The registration statement includes a proxy statement of M&M that also constitutes a prospectus of Busey, which will be sent to the stockholders of M&M. M&M’s stockholders are advised to read the proxy statement/prospectus because it contains important information about Busey, M&M, and the proposed transaction. This document and other documents relating to the proposed transaction filed by Busey and M&M can be obtained free of charge from the SEC’s website at sec.gov.
First Busey Corporation | 2023 Q4 — 24
These documents also can be obtained free of charge by accessing the Investor Relations page on Busey’s website at ir.busey.com, then under the tab “SEC Filings.” Alternatively, these documents, when available, can be obtained free of charge from Busey upon written request to First Busey Corporation, Attention: Corporate Secretary, 100 W. University Avenue, Champaign, Illinois 61820 or by calling (217) 365‑4630, or from M&M, upon written request to M&M and Manufacturers Bank Corporation, Attention: Brad Butler, 25140 W. Channon Dr., P.O. Box 200, Channahon, Illinois 60410 or by calling (630) 575‑9700.
This document shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Participants in this Transaction
Busey, M&M, and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from stockholders in connection with the proposed transaction under the rules of the SEC. Information about these participants may be found in Busey’s definitive proxy statement relating to its 2023 Annual Meeting of Stockholders filed with the SEC on April 14, 2023. This definitive proxy statement can be obtained free of charge from the sources indicated above. Additional information regarding the interests of these participants are included in the proxy statement/prospectus regarding the proposed transaction.
First Busey Corporation | 2023 Q4 — 25
First Busey Corporation
100 W. University Ave., Champaign, IL 61820
NASDAQ: BUSE
Busey 2023 | All Rights Reserved
Busey’s Financial Suite of Services
Member FDIC busey.com
Q4 2023 EARNINGS INVESTOR PRESENTATION January 23, 2024
2 24Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE This presentation may contain 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 First Busey Corporation (“Busey”) and Merchants and Manufacturers Bank Corporation (“M&M”). Forward-looking statements, which may be based upon beliefs, expectations and assumptions of Busey’s and Merchants’ 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 presentation, including forward-looking statements, speak only as of the date they are made, and neither Busey nor M&M undertakes any obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond the ability of Busey and M&M to control or predict, could cause actual results to differ materially from those in Busey’s forward-looking statements. These factors include, among others, the following: (1) the possibility that any of the anticipated benefits of the proposed transaction between Busey and M&M will not be realized or will not be realized within the expected time period; (2) the risk that integration of operations of M&M with those of Busey will be materially delayed or will be more costly or difficult than expected; (3) the inability to complete the proposed transaction due to the failure of the required approval of M&M’s stockholders; (4) the failure to satisfy other conditions to completion of the proposed transaction, including receipt of required regulatory and other approvals; (5) the failure of the proposed transaction to close for any other reason; (6) the effect of the announcement of the transaction on customer relationships and operating results; (7) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (8) the strength of the local, state, national, and international economy (including effects of inflationary pressures and supply chain constraints); (9) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics (including the Coronavirus Disease 2019 pandemic), or other adverse external events that could cause economic deterioration or instability in credit markets (including Russia’s invasion of Ukraine and the Israeli-Palestinian conflict); (10) changes in state and federal laws, regulations, and governmental policies concerning Busey's or M&M's general business (including changes in response to the recent failures of other banks); (11) changes in accounting policies and practices; (12) changes in interest rates and prepayment rates of Busey’s or M&M's assets (including the impact of the London Interbank Offered Rate phase-out and the recent and potential additional rate increases by the Federal Reserve); (13) increased competition in the financial services sector (including from non-bank competitors such as credit unions and fintech companies) and the inability to attract new customers; (14) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (15) the loss of key executives or associates; (16) changes in consumer spending; (17) unexpected results of acquisitions, including the acquisition of M&M and the performance of M&M’s life equity loan business; (18) unexpected outcomes of existing or new litigation involving Busey or M&M; (19) fluctuations in the value of securities held in Busey’s or M&M’s securities portfolio; (20) concentrations within Busey’s or M&M’s loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (21) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (22) the level of non-performing assets on Busey’s or M&M’s balance sheets; (23) interruptions involving information technology and communications systems or third-party servicers; (24) breaches or failures of information security controls or cybersecurity-related incidents; and (25) the economic impact of exceptional weather occurrences such as tornadoes, hurricanes, floods, blizzards, and droughts. 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 Busey and its business, including additional factors that could materially affect its financial results, is included in Busey’s filings with the Securities and Exchange Commission (“SEC”). Forward-Looking Statements and Additional Information Special Note Concerning Forward-Looking Statements Additional Information Participants in the Transaction Busey filed a registration statement on Form S-4 with the SEC on January 12, 2024, in connection with the proposed transaction. The registration statement includes a proxy statement of M&M that also constitutes a prospectus of Busey, which will be sent to the stockholders of M&M. M&M’s stockholders are advised to read the proxy statement/ prospectus because it contains important information about Busey, M&M and the proposed transaction. This presentation and other documents relating to the proposed transaction filed by Busey and M&M can be obtained free of charge from the SEC’s website at www.sec.gov. These documents also can be obtained free of charge by accessing Busey’ website at www.busey.com under the tab “Investors Relations” and then under “SEC Filings.” Alternatively, these documents, when available, can be obtained free of charge from Busey upon written request to First Busey Corporation, Attention: Corporate Secretary, 100 W. University Avenue, Champaign, Illinois 61820 or by calling (217) 365-4630, or from M&M, upon written request to Merchants and Manufacturers Bank Corporation, Attention: Brad Butler, 25140 W. Channon Dr., P.O. Box 200, Channahon, Illinois 60410 or by calling (630) 575-9700. This presentation shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. Busey, M&M and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from stockholders in connection with the proposed transaction under the rules of the SEC. Information about these participants may be found in the definitive proxy statement of Busey relating to its 2023 Annual Meeting of Stockholders filed with the SEC on April 14, 2023. This definitive proxy statement can be obtained free of charge from the sources indicated above. Additional information regarding the interests of these participants are included in the proxy statement/prospectus regarding the proposed transaction.
3 34Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Non-GAAP Financial Information This presentation contains certain financial information determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of Busey’s performance and in making business decisions, as well as for comparison to the Company’s peers. Busey believes the adjusted measures are useful for investors and management to understand the effects of certain non-core and non-recurring noninterest items and provide additional perspective on the Company’s performance over time. A reconciliation to what management believes to be the most directly comparable GAAP financial measures—specifically, net interest income, total noninterest income, net security gains and losses, and total noninterest expense in the case of pre-provision net revenue, adjusted pre-provision net revenue, pre-provision net revenue to average assets, and adjusted pre-provision net revenue to average assets; net income in the case of adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, average tangible common equity, return on average tangible common equity, and adjusted return on average tangible common equity; net income and net security gains and losses in the case of net income excluding net securities gains and losses and diluted earnings per share excluding net securities gains and losses; net interest income in the case of adjusted net interest income and adjusted net interest margin; net interest income, total noninterest income, and total noninterest expense in the case of adjusted noninterest expense, noninterest expense excluding non-operating adjustments, adjusted core expense, efficiency ratio, adjusted efficiency ratio, and adjusted core efficiency ratio; total assets and goodwill and other intangible assets in the case of tangible assets; total stockholders’ equity in the case of tangible book value per common share; total assets and total stockholders’ equity in the case of tangible common equity and tangible common equity to tangible assets; portfolio loans in the case of core loans and core loans to portfolio loans; total deposits in the case of core deposits and core deposits to total deposits; and portfolio loans and total deposits in the case of core loans to core deposits—appears in the appendix of this presentation. These non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for operating results reported in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Tax effected numbers included in these non-GAAP disclosures are based on estimated statutory rates or effective rates as appropriate.
4 44Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Table of Contents Overview of First Busey Corporation (BUSE) 5 Diversified Company with Comprehensive & Innovative Financial Solutions 6 Appendix: 31 Compelling Regional Operating Model 7 Experienced Management Team 32 Acquisition of Merchants & Manufacturers Bank Corp. 8 Fully Integrated Wealth Platform 33 Investment Highlights 9 FirsTech, A Uniquely Positioned Payment Technology Company 34 Fortress Balance Sheet 10 Continued Investment in Technology Enterprise-Wide 36 High Quality Loan Portfolio 11 Digital Banking Adoption 37 High Quality Portfolio: CRE 12 Busey Impact 38 Office Investor Owned CRE Portfolio 13 Non-GAAP Financial Information 39 High Quality Portfolio: C&I 14 Pristine Credit Quality 15 Credit Profile Bolstered by Strong Reserves 16 Top Tier Core Deposit Franchise 17 Granular, Stable Deposit Base 18 Deposit Cost Trends 19 Diversified and Significant Sources of Fee Income 20 Wealth Management 21 FirsTech 22 Net Interest Margin 23 Actively Managing Asset-Sensitive Balance Sheet 24 Focused Control on Expenses 25 Robust Capital Foundation 26 Balanced, Low-Risk, Short-Duration Investment Portfolio 27 Previously Announced Balance Sheet Repositioning 28 4Q23 Earnings Review 29 Earnings Performance 30
5 54Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Overview of First Busey Corporation (NASDAQ: BUSE) Regional operating model serving four regions Northern (IL) Central (IL/IN) Gateway (MO/IL) Florida M&M Bank4 Among the Best 155+ year old financial institution headquartered in Champaign, IL Price Per Share $24.22 Market Cap $1.3B Dividend Yield 4.0% Price/TBV 1.5x Price/2024E 3 11.8x Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 $16 $18 $20 $22 $24 $26 $ in millions 2021 2022 2023 Total Assets $12,860 $12,337 $12,283 Total Loans $7,189 $7,726 $7,651 Total Deposits $10,769 $10,071 $10,291 Total Equity $1,319 $1,146 $1,272 NPA/Assets 0.17 % 0.13 % 0.06 % Net Interest Margin 1 2.49 % 2.84 % 2.88 % Adj. PPNR ROAA 1 1.35 % 1.44 % 1.41 % Adj. ROAA 1 1.15 % 1.06 % 1.03 % Adj. ROATCE 1 14.40 % 15.99 % 15.03 % BUSE Stock Price 2Financial Highlights 1 Non-GAAP calculation, see Appendix | 2 Market Data for BUSE updated to close on 1/22/24, per Nasdaq | 3 Based on consensus median net income of covering analysts as of 1/22/24 4 Pro Forma locations reflecting announced acquisition of Merchants & Manufacturers Bank Corp. on 11/27/23. Pending approvals, anticipated to close during 2Q24.
6 64Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE 1 Consolidated | 2 Busey Bank segment, excluding Wealth Management & FirsTech; excludes intracompany eliminations and consolidations | 3 Consolidated; Non-GAAP calculation, see Appendix 4 Wealth Management segment | 5 LTM total payments processed | 6 FirsTech segment, excludes intracompany eliminations $11 Billion +11% Payments Processed 5 3-Year CAGR Quarterly Revenue 6 Full suite of diversified financial products for individuals and businesses Wealth & asset management services for individuals and businesses Payment platform that enables the collection of payments across a variety of modules $12.3 Billion Assets 1 15.0% Adj. ROATCE (FY 2023) 3 $12.1 Billion Assets Under Care 42.8% PT Margin (FY 2023) $382.0 Million 2023 Revenue 2 $57.8 Million 2023 Revenue 4 $22.8 Million 2023 Revenue 6 Diversified Company with Comprehensive & Innovative Financial Solutions
7 74Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Compelling Regional Operating Model Loans Banking Centers Legacy Institutions Deposits NorthernGatewayCentral Florida 1025 20 3 $5.4 billion $1.8 billion$2.6 billion $438 million $3.3 billion Busey Main Street Herget South Side As of 12/31/23 AUC $8.5 billion $1.1 billion$1.4 billion $1.1 billion $1.9 billion $2.0 billion $448 million Pulaski Bank of Edwardsville First Community Glenview State Bank Busey Investors’ Security Trust Regions Integrated enterprise-wide go-to-market strategy focused on combining the power of commercial & wealth to provide a broad set of financial solutions to well-capitalized individuals and the companies they own & operate Note: Does not include pending acquisition of Merchants & Manufacturers Bank Corp. Pending approvals, anticipated to close during 2Q24.
8 84Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Merchants and Manufacturers Bank Corp. ▪ Defensible, scalable niche as established market leader in providing loans secured by cash value life insurance policies and related credit products ▪ Enhances the unique product set offered to Busey’s well-capitalized client base ▪ Attractive economics – strong yield (7.69% MRQ) and no historical loss experience ▪ Busey’s strong balance sheet position and investments in technology will enhance Life Equity Loan capabilities and financial outcomes Next StepsActions Taken 11/27/23 M&M Acquisition Announced [8-K] 12/18/23 Filed applications with regulators 1/12/24 Filed S-4 March 2024 Projected M&M shareholder meeting/vote April/May 2024 Expected legal & financial close of transaction June 2024 Anticipated bank merger & core system conversion $12.7 Billion Assets Loans $8.1 Billion Deposits $10.7 Billion As of 12/31/23 Compelling Life Equity Loan® Line of Business ▪ Complements and extends Busey’s growing Chicagoland market presence ▪ Bolsters Busey’s deposit position among regional and community banks to #4 in M&M’s markets of operation and #8 in the Chicago MSA ¹ ▪ Adds presence in attractive and commercially important Oak Brook market Further Enhances Key Market Profile 1 Deposit data as of 6/30/23 per the 2023 FDIC Summary of Deposits and excludes banks with $100 billion+ in consolidated assets | 2 Metrics as announced 11/27/23 Note: Illustrative timeline only. Subject to regulatory and shareholder approvals, and customary closing conditions. BUSE announced acquisition of Chicagoland-based Merchants & Manufacturers Bank Corp. during 4Q23 Pro Forma Busey + M&M ▪ < 1.5% TBV dilution ▪ 2.0 year TBV earnback ▪ 6%+ EPS accretion in 2025 & 2026; long-term GAAP & Cash EPS accretion of ~5.5% ▪ Pro Forma capital & liquidity positions remain robust Attractive Deal Metrics 2
9 94Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE ▪ 58 branches across four states: Illinois, Missouri, Indiana, and Florida ▪ Premier commercial bank, wealth management, and payment technology solutions for individuals and businesses ▪ Attractive core deposit to total deposit ratio (96.2%)1, low cost non-time deposits (131 bps) in 4Q23, and low level of uninsured & uncollateralized deposits2 (27%) at 12/31/23 ▪ Substantial investments in technology enterprise-wide, deep leadership bench, and risk management infrastructure Attractive Franchise that Provides Innovative Financial Solutions Attractive Profitability and Returns ▪ Adjusted ROAA of 0.94% 1 & Adjusted ROATCE of 13.64% 1 for 4Q23 ▪ 4Q23 NIM of 2.74% 1 ▪ Adjusted Core Efficiency Ratio of 60.1% 1 for 4Q23 ▪ Adjusted diluted EPS of $0.52 1 for 4Q23 ▪ Quarterly dividend of $0.24 (4.0% yield) 4 Disciplined Growth Strategy Driven by Regional Operating Model ▪ Organic growth across key business lines driven by regional operating model that aligns commercial, wealth and FirsTech operations ▪ Efficient and right-sized branch network (average deposits per branch of $177 million) ▪ Leverage track record as proven successful acquirer to expand through disciplined M&A; announced acquisition of Merchants & Manufacturers Bank Corp. on 11/27/23 Powerful Combination of Three Business Lines Drives Strong Noninterest Income ▪ Significant revenue derived from diverse and complementary fee income sources ▪ Noninterest income / revenue (ex-securities gains/losses)3 of 28.5% for 4Q23 ▪ Wealth management and payment technology solutions account for 62.2% of noninterest income (ex-securities gains/losses) in 4Q23 ▪ Sizable business lines provide for a full suite of solutions for our clients across their lifecycle 1 Non-GAAP calculation, see Appendix | 2 Estimated uninsured & uncollateralized deposits consists of the excess of accounts over $250K FDIC insurance limit, less internal accounts and fully-collateralized accounts (incl. preferred deposits) | 3 Non-GAAP, revenue consists of net interest income plus noninterest income, excluding security gains and losses | 4 Based on BUSE closing stock price on 1/22/24 Investment Highlights BUILT ON A FORTRESS BALANCE SHEET Pristine asset quality, highly diversified loan portfolio, & capital levels significantly in excess of well-capitalized minimums
10 104Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE ▪ Capital ratios significantly in excess of well-capitalized minimums ▪ Total RBC of 17.4% and CET1 ratio of 13.1% at 12/31/234 ▪ TCE/TA ratio of 7.75% at 12/31/232, up from 6.60% at 12/31/2022 ▪ TBV per share of $16.62 at 12/31/232, an increase of 17.5% from $14.14 at 12/31/2022 Robust Capital Foundation High Quality, Resilient Loan Portfolio ▪ Diversified portfolio, conservatively underwritten with low levels of concentration ▪ Non-performing (0.06% of total assets) and classified assets (5.0% of capital1) both remain near historically low levels ▪ Classified assets reduced $35 million, or 32%, from 12/31/22 to 12/31/23 ▪ Reserves remain above initial Day 1 CECL coverage of 1.06%: ACL/Loans: 1.20% | ACL/NPLs: 1,174% ▪ 100 / 300 Test: 32% C&D | 213% CRE-I ▪ Minimal office CRE-I located in metro central business districts; substantial majority of office properties are in suburban locations and 41% of the office CRE-I portfolio is medical office ▪ Robust holding company and bank-level liquidity ▪ Strong core deposit franchise ▪ 74.3% loan-to-deposit ratio, 96.2% core deposits2 ▪ 27.5% of total deposits are noninterest-bearing ▪ Low level of estimated uninsured & uncollateralized deposits3 at 27% of total deposits at 12/31/23 ▪ Cash & Equivalents + Available-For-Sale Securities carrying value represents 100% of estimated uninsured & uncollateralized deposits3 ▪ Substantial sources of available off-balance sheet contingent funding totaling $4.0 billion, representing an additional 1.4x coverage of estimated uninsured & uncollateralized deposits3 at 12/31/23 ▪ Untapped borrowing capacity ($4.0 billion in aggregate): $1.9 billion with FHLB, $0.6 billion with FRB discount window, $0.5 billion with Unsecured Fed Funds lines, and $1.0 billion brokered deposit capacity ▪ Brokered deposit market continues to remain untapped ▪ No borrowings from FHLB as of 12/31/23 ▪ No utilization of the Fed’s Bank Term Funding Program Strong Core Deposit Franchise & Ample Liquidity 1 Capital calculated as Bank Tier 1 Capital + Allowance for credit losses | 2 Non-GAAP calculation, see Appendix | 3 Estimated uninsured & uncollateralized deposits consists of the excess of accounts over $250K FDIC insurance limit, less internal accounts and fully-collateralized accounts (including preferred deposits) | 4 Capital ratios are preliminary estimates Fortress Balance Sheet
11 114Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE $1,721 $1,628 $1,568 $1,590 $1,509 $360 $345 $347 $344 $336 53% 51% 49% 49% 48% Commercial Retail % Utilized (total) 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 Commercial & Industrial 24% Owner Occupied CRE 12% Non-Owner Occupied CRE 32% C&D 6% 1-4 Family Residential 19% HELOC 3% Other 4% 1 Capital is Bank Tier 1 Capital + Allowance for credit losses | 2 Based on loan origination | 3 Excludes credit card & overdraft protection & includes tranche loan commitments/associated sub notes Central 43% Gateway 25% Northern 26% Florida 6% $1,974 $1,936 $1,899 $1,943 $1,836 $3,262 $3,325 $3,362 $3,354 $3,337 $530 $554 $532 $528 $462 $1,959 $1,968 $2,012 $2,031 $2,016 C&I CRE Construction Retail Real Estate & Other 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 $ in millions$ in millionsLTM Core Growth 3 LTM Commercial Growth 3 -1.0% -2.3% Total Loan Portfolio: $7.7 Billion MRQ Yield on Loans 5.22% 4Q23 Net New Funding Yield 7.40% Classified Loans / Capital 1 5.0% New Originations during 2023 ▪ Dec. net new funding yield of 7.47% (typically a 60-day lag from rate/loan approval to funding) ▪ ▪ Approx. 71% of new commercial production was due to growth within existing bank relationships ▪ New CRE-I originations during 2023 had a weighted-avg LTV of 59% High Quality Loan Portfolio Funded Draws & Line Utilization Rate 3Ex-PPP Loans Trends Loan Portfolio Regional Segmentation 2Loan Portfolio Composition | 4Q23 Line utilization declined $236 million during 2023. Excluding this decline, LTM loan growth would be $162 million, or +2.1% LTM Growth -1.0% Loan growth has softened in the current environment $7,725 $7,783 $7,805 $7,856 $7,651 $2,081 $1,973 $1,915 $1,934 $1,845
12 124Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE 1 Investor owned CRE includes C&D, Multifamily and non-owner occupied CRE $ in thousands Property Type 12/31/23 Balances % of Total Loans 12/31/23 Classified Balances Apartments $611,403 8.0 % $0 Retail 510,696 6.7 % 5,335 Industrial/Warehouse 339,032 4.4 % 475 Traditional Office 267,759 3.5 % 18,654 Student Housing 263,638 3.4 % 3,811 Hotel 189,184 2.5 % 0 Medical Office 183,664 2.4 % 0 Senior Housing 169,679 2.2 % 0 LAD 129,999 1.7 % 0 Specialty 105,645 1.4 % 131 Restaurant 24,649 0.3 % 79 Nursing Homes 24,102 0.3 % 85 Health Care 20,000 0.3 % 0 1-4 Family 17,977 0.2 % 0 Other 544 0.0 % 0 Grand Total $2,857,971 37.4 % $28,570 Investor Owned CRE Portfolio 1 (CRE-I) ▪ Only 1.0% of total CRE-I loans are classified ▪ Low levels of concentrated exposure - continue to actively monitor CRE-I concentrations vs. internally-defined appetite thresholds ▪ 100/300 Test: 32% C&D | 213% CRE-I ▪ Apartments & Student Housing represents 31% of CRE-I ▪ 59% WAvg LTV & 58% long-term customers (4+ years) $ in thousands Property Type 12/31/23 Balances % of Total Loans 12/31/23 Classified Balances Industrial/Warehouse $365,527 4.8 % $4,552 Specialty 233,022 3.0 % 532 Traditional Office 111,612 1.5 % 437 Medical Office 93,930 1.2 % 0 Retail 61,879 0.8 % 1,523 Restaurant 46,178 0.6 % 47 Nursing Homes 1,498 0.0 % 0 Health Care 737 0.0 % 0 Hotel 601 0.0 % 0 Other 200 0.0 % 0 Grand Total $915,184 12.0 % $7,091 Owner Occupied CRE Portfolio (OOCRE) ▪ Only 0.8% of total OOCRE loans are classified ▪ Owner occupied loans are not considered regulatory CRE ▪ OOCRE properties are underwritten to operating cash flow and guidance requires a 1.20x FCCR ▪ OOCRE have lower risk profiles as they are underwritten to the primary occupying business and are not as exposed to lease turnover risks ▪ Industrial/Warehouse properties are the largest OOCRE segment, comprising 40% of the OOCRE portfolio while only 4.8% of total loans Owner Occupied CRE Loans by Property Type High Quality Loan Portfolio: CRE Investor Owned CRE Loans by Property Type 1
13 134Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Weighted Average DSCR: Weighted Average Debt Yield: WAvg 1-Year Lease Rollover: WAvg 2-Year Lease Rollover: Top Ten Largest Office Loans 1.39 10.3% 8.0% 12.0% Downtown St. Louis 4 Properties with $9.0 million in balances Limited Metro Central Business District Exposure Downtown Chicago No outstanding Office CRE-I in Downtown Chicago Downtown Indy 1 Property with $0.4 million in balances All data as of 12/31/23 $ in thousands Metric Traditional Office Medical Office Top Ten Largest Office Loans CBD Office Exposure Total Balances $267,759 $183,664 $122,281 $9,369 % of CRE-I Portfolio 9.4 % 6.4 % 4.3 % 0.3 % % of Office CRE-I Portfolio 59.3 % 40.7 % 27.1 % 2.1 % # of Loans 197 77 10 5 Average Loan Size $1,359 $2,385 $12,228 $1,874 Total Classified Balances $18,654 $0 $17,999 $0 Weighted Avg Current LTV 57 % 65 % 66% 43% Office Investor Owned CRE Portfolio
14 144Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE $1,974 $1,936 $1,899 $1,943 $1,836 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 ▪ 23.9% of total loan portfolio ▪ All C&I loans are underwritten to 1.20x FCCR requirement and RLOCs greater than $1 million require a monthly borrowing base ▪ Diversified portfolio results in low levels of concentrated exposure ▪ Top concentration in one industry (manufacturing) is 15% of C&I loans, or 4% of total loans ▪ Only 1.7% of C&I loans are classified ▪ Retail trade classified declined by $2.6 million during 4Q23 due to payoff of one legacy Glenview State Bank credit that was identified as impaired during the due diligence process 1 Ex-PPP loan totals include purchase accounting, FASB, overdrafts, etc. | 2 Difference in C&I balances from chart on left primarily attributable to one large technical overdraft that was subsequently cleared on Jan. 2 High Quality Loan Portfolio: C&I C&I Loans by Sector Total C&I Loans Trend 1 $ in thousands NAICS Sector 12/31/23 Balances % of Total Loans 12/31/23 Classified Balances Manufacturing $273,221 3.6 % $16,226 Finance and Insurance 273,046 3.6 % 0 Real Estate Rental & Leasing 222,893 2.9 % 1,902 Wholesale Trade 185,218 2.4 % 0 Construction 162,048 2.1 % 828 Educational Services 129,054 1.7 % 78 Agriculture, Forestry, Fishing, Hunting 92,481 1.2 % 1,269 Transportation 82,105 1.1 % 0 Food Services and Drinking Places 76,662 1.0 % 0 Health Care and Social Assistance 72,668 0.9 % 5,433 Other Services (except Public Admin.) 57,737 0.8 % 105 Public Administration 56,461 0.7 % 0 Arts, Entertainment, and Recreation 42,999 0.6 % 214 Retail Trade 41,254 0.5 % 226 Professional, Scientific, & Tech. Svcs. 33,811 0.4 % 2,509 Administrative and Support Services 11,747 0.2 % 223 Mining, Quarrying, Oil & Gas Extract. 7,503 0.1 % 0 Waste Management Services 4,407 0.1 % 1,323 Information 3,300 0.0 % 0 Management of Cos. and Enterprises 1,125 0.0 % 0 Utilities 565 0.0 % 0 Grand Total 2 $1,830,305 23.9 % $30,336
15 154Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE $6,470 $7,007 $6,970 $7,446 $7,759 0.11% 0.12% 0.03% 0.01% 0.03% Avg Loans NCOs/Avg Loans 2019 YE 2020 YE 2021 YE 2022 YE 2023 YE $1,099 $1,155 $1,329 $1,398 $1,455 9.7% 8.5% 6.9% 7.7% 5.0% Bank Tier 1 Capital + ALLL Classified/Capital 2019 YE 2020 YE 2021 YE 2022 YE 2023 YE ▪ Conservative underwriting leads to pristine credit quality ▪ CRE factors of DSCR, Debt Yield, & LTV stressed for effective gross income decline and interest & cap rate stress ▪ C&I factors including core, operating, traditional cash flows, working capital, and leverage ratios that each are stressed for rate hikes, historical revenue volatility, and a rigorous breakeven analysis ▪ Strong portfolio management that identifies early warning indicators and proactively engages the special assets group early in the credit review process (special assets group has remained intact since the 2008-2009 recession) ▪ Company-wide attention to changing economic environment and potential impact on credit ▪ NPAs reduced to $7.9 million (0.06% of assets) during 4Q23 and classified assets declined $35.0 million YoY to 5.0% of Bank Tier 1 Capital + ALLL ▪ 4Q23 net charge-offs totaled $0.4 million, an annualized rate of 0.02% of average loans1 1 Average loans was calculated as the average of the ending portfolio loans balances over the most recent four quarters | 2 Capital calculated as Busey Bank Tier 1 Capital + Allowance for credit losses Pristine Credit Quality NPAs/ Assets Classifieds / Capital 2 NCOs / Average Loans $9,696 $10,544 $12,860 $12,337 $12,283 0.34% 0.27% 0.17% 0.13% 0.06% Assets % NPAs/Assets 2019 YE 2020 YE 2021 YE 2022 YE 2023 YE $ in millions $ in millions $ in millions NPAs $32.6 $28.9 $21.3 $16.6 $7.9 NCOs $7.3 $8.3 $2.2 $0.9 $2.3Classified Assets $106.9 $97.8 $91.8 $107.1 $72.3
16 164Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE $6,687 $6,368 $7,114 $7,725 $7,651 0.80% 1.59% 1.24% 1.19% 1.20% Ex-PPP Loans Allowance/Ex-PPP Loans 2019 YE 2020 YE 2021 YE 2022 YE 2023 YE $29,507 $24,301 $16,852 $15,740 $7,816 182% 416% 522% 582% 1174% NPLs Allowance/NPLs 2019 YE 2020 YE 2021 YE 2022 YE 2023 YE $32,564 $28,872 $21,268 $16,590 $7,941 165% 350% 413% 552% 1155% NPAs Allowance/NPAs 2019 YE 2020 YE 2021 YE 2022 YE 2023 YE ▪ Reserve to loans of 1.20% (ex-PPP) ▪ Day 1 CECL coverage was 1.06% ▪ Non-performing loan balances decreased by $4.2 million QoQ and $7.9 million YoY ▪ OREO balances total $0.1 million ▪ Continued decline in total NPAs, declining by $4.2 million QoQ and $8.6 million YoY to end 2023 at $7.9 million ▪ 4Q23 reduction driven primarily by payoff of one legacy Glenview State Bank credit that was identified as impaired during the due diligence process ▪ Reserves now equate to 1,174% of NPLs and 1,155% of NPAs Credit Profile Bolstered by Strong Reserves Allowance / Loans (ex-PPP) Allowance / NPLs Allowance / NPAs $ in millions $ in thousands$ in thousands
17 174Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE 1 Other deposits include brokered MMA, brokered CDs, ICS Demand & Savings, CDAR CDs | 2 Non-GAAP calculation, see Appendix 4Q23 Deposit Flows ▪ Significant inflow from retail (up $192 million QoQ) ▪ Public deposits were down $120 million QoQ and up $70 million YoY, demonstrating stability as well as typical seasonality. Historically would expect a continued seasonal decline in 1Q24 before net inflows in 2Q24 and 3Q24 ▪ Experienced other typical 4Q23 outflows related to normal business operations for certain commercial customers ▪ Had net deposit outflows into Busey Wealth Management as we continue to adapt to client needs while keeping clients in the Busey ecosystem ▪ Strong production from CD campaigns continued, with time deposit balances up $153 million QoQ. New production in 4Q23 had a weighted average term of 9.3 months at a rate of 4.34%, 101 bps below our marginal wholesale funding cost during the quarter ▪ At 12/31/23, our spot deposit cost was 1.28% for non-maturity deposits and 1.76% for total deposits Non-Int DDA 28% Int DDA 26% Savings & MMDA 28% CD < 250k 14% CD > 250k 4% Core Deposits 96% MRQ Avg Cost of Total Deposits 1.74% MRQ Avg Cost of Non-Time Deposits 1.31% Avg Deposits per Branch $177 million Avg Non Maturity Acct Balance at 12/31/23 $35 thousand Total Deposits: $10.3 Billion $10,577 $10,338 $9,910 $9,852 $10,143 $10,373 72.4% 76.7% 79.4% 77.6% 76.0% 74.4% Retail Commercial Public Other ¹ Avg Deposits LDR 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 $10,496 $9,950 $9,594 $9,759 $9,976 $9,899 $10,468 $10,225 $9,760 $9,587 $9,812 $10,002 99.0% 98.8% 97.9% 97.0% 96.6% 96.2% Core Deposits Avg Core Deposits Core/Total Deposits 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 $ in millions Top Tier Core Deposit Franchise Deposit Portfolio Composition | 4Q23 Total Deposits & Loan-to-Deposit Ratio Core Deposits 2 / Total Deposits $10,601 $10,071 $9,801 $10,063 $10,332 $10,291 $ in millions
18 184Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE $5,313 $3,438 $794 $256 $5,312 $3,399 $1,065 $287 $5,410 $3,584 $1,091 $247 $5,602 $3,482 $971 $236 3/31/2023 6/30/2023 9/30/2023 12/31/2023 Retail Commercial Public Other² 1 Estimated uninsured & uncollateralized deposits consists of the excess of accounts over $250K FDIC insurance limit, less internal accounts and fully-collateralized accounts (including preferred deposits) | 2 Other deposits include brokered MMA, brokered CDs, ICS Demand & Savings, CDAR CDs Customers with Account Balances totaling $250K+ Since 3/31/23, total deposits up +$490 million, or +5.0% 2023 Q4 Number of customers 5,825 Median account balance $400 thousand Median customer tenure 13.8 years 2023 Q4 Estimated Uninsured & Uncollateralized Deposits1 $2.8 billion Estimated Uninsured & Uncollateralized Deposits1 / Total Deposits 27% As of 12/31/23 Retail Commercial Number of Accounts 257,000+ 33,000+ Avg Balance per Account $22 thousand $102 thousand Avg Customer Tenure 16.5 years 12.4 years Granular, Stable Deposit Base Long-tenured Deposit Relationships that are very granular Deposit Flows by Type
19 194Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE 1 Quarterly effective fed funds per FRED, Federal Reserve Bank of St. Louis. Average during quarter, not seasonally adjusted | 2 Deposit betas are calculated based on an average fed funds target rate of 0.92% during 2Q22, 2.35% (3Q22), 3.82% (4Q22), 4.69% (1Q23), 5.16% (2Q23), and 5.50% (4Q23). BUSE Cost of Deposits Effective Fed Funds Rate (Quarter Average) 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% C os t of D ep os it s (b p s) 167 147 279 196 131 Retail Commercial Public All IB Non-Maturity All Non-Time Deposits 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 — 20 40 60 80 100 120 140 160 180 200 220 240 260 280 +10% +16% +24% +31% +36% +10% +17% +29% +37% +43% +6% +12% +20% +26% +31% IB Non-Maturity All IB Deposits Total Deposits 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 Retail +1% +6% +16% +24% +29% Commercial +7% +12% +18% +21% +27% Public +27% +33% +46% +48% +52% IB Non- Maturity +10% +16% +24% +31% +36% All IB Deposits +10% +17% +29% +37% +43% Total Deposits +6% +12% +20% +26% +31% Historical Cost of Deposits, 2015 - 4Q23 1 Cumulative Deposit Betas 2 for Tightening Cycle-to-Date Quarterly Average Cost of Deposits Deposit Cost Trends IB Non- Maturity 0.44% 0.78% 1.27% 1.65% 1.96% Non-Time Deposits 0.28% 0.49% 0.81% 1.09% 1.31% Total Deposits 0.32% 0.60% 1.09% 1.45% 1.74%
20 204Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE ▪ Noninterest income represented 29% of revenue in 4Q23 ▪ Key businesses of wealth management and payment technology solutions contributed 62.2% of noninterest income (ex-securities gains/losses) in 4Q23 ▪ On a combined basis, 6.9% YoY growth in quarterly consolidated revenue from 4Q22 to 4Q23 in these two critical fee income business lines ▪ Primary contributors to other noninterest income include swap origination fees, gains on commercial loan sales, and changes in venture capital investment valuations ▪ Solid growth delivered in all key fee income businesses during 4Q23 over comparable period in 4Q22 1 Includes net security gains and losses $29.1 $31.8 $28.0 $31.0 $31.5 $91.1 $85.9 $78.7 $77.8 $77.1 24.2% 27.1% 26.3% 28.5% 29.0% Noninterest Income Net Interest Income Nonint. Inc. / Total Revenue 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 $ in millions Noninterest Income Detail 2022 Q4 2023 Q4 YoY Change Wealth Management Fees $12,956 $13,715 +6 % Fees for Customer Services 6,989 7,484 +7 % Payment Technology Solutions 5,022 5,420 +8 % Mortgage Revenue 198 218 +10 % Income on Bank Owned Life Insurance 947 1,019 +8 % Other Noninterest Income 2,776 2,899 +4 % Noninterest Income (ex-securities gains/losses) $28,888 $30,755 +6 % Net Securities Gains (Losses) 191 761 NM Total Noninterest Income $29,079 $31,516 +8 % $ in thousands Wealth Mgmt Fees 45% Payment Tech 18% Customer Service Fees 24% Mortgage Rev. 1% BOLI 3% Other Nonint. Inc. 9% Noninterest Income (ex-securities gains/losses) $30.8 Million Noninterest Income / Total Revenue 1 Sources of Noninterest Income Diversified and Significant Sources of Fee Income $120.2 $117.7 $106.7 $108.8 $108.6
21 214Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE $13.0 $14.9 $14.7 $14.4 $13.8 $5.0 $6.4 $6.5 $6.3 $5.6 38.2% 42.8% 44.1% 43.8% 40.3% Revenue Pre-Tax Net Income Pre-Tax Profit Margin 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 $11,062 $11,208 $11,478 $11,548 $12,137 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 ▪ Assets Under Care (AUC) of $12.1 billion, a QoQ increase of $589 million and a YoY increase of $1.08 billion, or +9.7% ▪ Wealth revenue1 of $13.8 million, a YoY increase of 6.6% and pre-tax net income of $5.6 million, a YoY increase of 12.3% ▪ Pre-tax profit margin of 40.3% in 4Q23 and 42.8% over the last twelve months ▪ Our fully internalized investment team continues to produce excellent returns, focused on long-term outperformance of benchmarks ▪ The team’s blended portfolio has outperformed the blended benchmark2 over the last 3 years and over the last 5 years ▪ Rate environment attracting more fixed income assets – our fixed income management capabilities are very deep and a real differentiator ▪ Bank + Wealth partnership allows us to better keep customer funds inside our overall ecosystem depending on client needs 1 Wealth Management segment | 2 Blended benchmark consists of 60% MSCI All-Country World Index / 40% Bloomberg Intermediate Govt/Credit Index $ in millions $ in millions Wealth Management Assets Under Care Wealth - Revenue and Pre-tax Income 1 Trust Brokerage Tax Planning Estate Settlement Ag Services Other 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 Wealth Revenue Composition $ in millions $13.0 $14.9 $14.7 $14.4 $13.8
22 224Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE ▪ 2023 segment revenue of $22.8 million, an increase of 5% over 2022, and the highest annual revenue in company history ▪ 4Q23 revenue of $5.8 million was the highest quarterly revenue in company history ▪ Key competencies of online payments and merchant services were the primary drivers of growth in 2023 ▪ Targeted initiatives to improve profitability include shifting customers to fully integrate into the merchant services platform and optimization of existing customer fee structures ▪ Have built a solid pipeline aligned with go-to- market focus on enterprise, financial institution, and merchant services clients ▪ The value of customized payments-enabled software platforms from an ODFI2-sponsored company resonates with potential customers ▪ Deployed new capabilities to Loan Pay module, adding features that provide for advanced customer communications 1 Revenue equates to all revenue sources tied to FirsTech and excludes intracompany eliminations | 2 Originating Depository Financial Institution Revenue Growth 1 $22.8 million YE 2023 +4.7%$21.8 million YE 2022 Transactions processed in last twelve months 41 million $11 billion Payments processed in last twelve months Average Revenue Per Processing Day Trend $67.1K $79.6K $75.0K $78.5K $78.2K $87.5K $84.0K $87.2K $88.3K $91.5K $89.1K $89.9K $93.4K 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 +12% 3-Year CAGR FirsTech
23 234Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE $91.2 $86.0 $78.8 $78.0 $77.2 $0.5 $0.4 $0.4 $0.3 $0.4 Net Interest Income ¹ Accretion 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 3.76% 4.05% 4.23% 4.40% 4.57% 0.53% 0.94% 1.42% 1.65% 1.88% 3.24% 3.13% 2.86% 2.80% 2.74% 0.02% 0.01% 0.02% 0.01% 0.01% Earning Assets Cost of Funds NIM Accretion 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 +2.80% +0.15% -0.17% -0.12% +0.06% +0.02% +2.74% 3Q23 NIM Loan Rate/ Volume Non-Maturity Deposit Funding Costs Time Deposit Funding Costs Borrowing Costs Securities & Earning Cash 4Q23 NIM 1 Tax-equivalent adjusted amounts; Non-GAAP, see Appendix $ in millions Yield on new loan volume was 11 bps higher than in 3Q23, while net new funding yield (inclusive of line utilization changes) was 16 bps higher Reduced borrowing needs due to increased deposits and investment cash flows, along with muted loan growth Continued rate pressure on interest-bearing deposits as the tightening cycle advances Continued rotation from securities book into higher yield earning cash Time deposit specials provided sufficient funding flows. Special rates were scaled back during Jan. 2024 Net Interest Margin Bridge - Factors contributing to 6 bps NIM compression during quarter Net Interest Margin Trend 1Net Interest Income Trend 1 Net Interest Margin NIM & COF stabilized during Dec. 2023 $91.7 $86.4 $79.2 $78.3 $77.6
24 244Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE ▪ Balance sheet remains asset-sensitive ▪ A +100 bps rate shock for Year 1 is slightly up to +1.8% from +1.6% in 3Q23 ▪ A -100 bps rate shock for Year 1 is -1.9%; unchanged from 3Q23 ▪ Continue to evaluate off-balance sheet hedging strategies as well as embedding rate protection in our asset originations to provide stabilization to net interest income in lower rate environments ▪ Vigilant focus on pricing discipline for both loans and deposits ▪ 7% of deposits are indexed/floating rate ▪ 38% of loan portfolio reprices in less than one year Balance sheet is projected over one- & two-year time horizons and net interest income is calculated under current market rates assuming permanent instantaneous shifts 1 Deposit betas are calculated based on an average fed funds target rate of 5.50% during 4Q23 Actively Managing Asset-Sensitive Balance Sheet Annual % Change in Net Interest Income under Shock Scenarios Repricing / Maturity Structures of Portfolio Loans Deposit Betas 1 in last Tightening Cycle vs. Current ALCO Model Forecast Rate Shock Year 1 Year 2 +200 bps +3.6 % +4.2 % +100 bps +1.8 % +2.1 % -100 bps -1.9 % -3.0 % -200 bps -3.9 % -6.1 % Within 1 Year 38% 1-2 Years 6% 2-3 Years 10% 3-5 Years 19% 5+ Years 27% 21% 36% 26% 31% IB Non-Maturity Beta Total Deposit Beta 3Q15 - 2Q19 (+225 bps move in FF) 1Q22 - 4Q23 (+525 bps move in FF) ALCO Model Forecast - Peak NM Deposits Beta, 46% ALCO Model Forecast - Peak Total Deposits Beta, 35% ▪ Compared to prior quarter, Peak IB NM deposit beta increased from 41% to 46% and peak total deposit beta was unchanged at 35% ▪ Change in projected betas driven by expected rotation of time deposits into NM and persistent deposit competition ▪ Peak beta expected to occur in late 2024
25 254Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE 1 Non-GAAP, see Appendix; adjusted core expenses exclude amortization of intangible assets, provision for unfunded commitments, acquisition/restructuring related charges, and NMTC amortization ▪ Adjusted core expenses1 of $65.2 million in 4Q23, down from $67.2 million in 4Q22, a decrease of 3.1%, and down from $66.0 million in 3Q23 ▪ Continue to be mindful and diligent on expenses, restricting new hires by targeting critical replacements and selective adds; focusing on harvesting investments made over the last several quarters ▪ Managed to a YoY decrease in adjusted core expense despite higher FDIC insurance costs (FDIC rule that increased assessment rate by 2 bps), data processing costs (investments in tech enhancements and inflation- driven price increases), and reduced FAS 91 offset to compensation expense as a result of lower loan volumes ▪ $4.2 million of one-time acquisition and restructuring related costs in 4Q23; primarily tied to executive reorganization and targeted efficiency optimization plan ▪ Executive reorganization and efficiency optimization plan projected to generate annual salary & benefits savings of $5.6 million ▪ Anticipate reinvesting approximately half of the projected annual savings ▪ $7.6 million of average earning assets per employee for 4Q23 Full-Time Equivalents (FTE) 55.8% 55.6% 58.6% 60.2% 60.1% Expenses ex-Acq. Acq./Restructuring Exp. Adj. Core Efficiency Ratio¹ 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 $ in millions 1,531 1,346 1,463 1,497 1,479 2019 YE 2020 YE 2021 YE 2022 YE 2023 YE Noninterest Exp. $73.7 $70.4 $69.2 $70.9 $75.0 Unfunded Provision -$0.5 -$0.6 $0.3 $0.0 $0.8 Acq./Restructuring Exp. $2.4 $0.0 $0.0 $0.1 $4.2 Intangible Amort. $2.8 $2.7 $2.7 $2.6 $2.5 NMTC Amort. $1.7 $2.2 $2.3 $2.3 $2.3 Adj. Core Exp.(1) $67.2 $66.1 $64.0 $66.0 $65.2 Noninterest Expense Focused Control on Expenses $73.7 $70.4 $69.2 $70.9 $75.0
26 264Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Tangible Common Equity 1 & CET1 Ratios 2 1 Non-GAAP calculation, see Appendix | 2 4Q23 capital ratios are preliminary estimates $791 $845 $851 $841 $925 6.6% 7.1% 7.2% 7.1% 7.8% 12.0% 12.2% 12.4% 12.5% 13.1% TCE TCE Ratio CET1 Ratio 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 $904 $907 $910 $914 $883 $554 $580 $597 $614 $657 16.1% 16.4% 16.6% 16.7% 17.4% 10.0% Well Cap Min Excess over Min Total Capital Ratio Min Ratio 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 $1,156 $1,178 $1,198 $1,218 $1,230 9.5% 9.7% 9.9% 10.1% 10.1% 4.0% Tier 1 Capital Leverage Ratio Min Ratio 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 $ in millions Common Equity Tier 1 Ratio Tier 1 Capital Ratio Total Capital Ratio Capital Ratio 13.1 % 13.9 % 17.4 % Minimum Well Capitalized Ratio 6.5 % 8.0 % 10.0 % Amount of Capital $1,156 $1,230 $1,540 Well Capitalized Minimum $574 $706 $883 Excess over Well Capitalized Minimum $582 $524 $657 $ in millions $ in millions $ in millions Robust Capital Foundation Total Capital Ratio 2 Leverage Ratio 2 Consolidated Capital as of 12/31/23 2 Manual rounding on oldest period needs to be cleared for 1Q24 deck $1,458 $1,487 $1,507 $1,528 $1,540
27 274Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE $2,784 $2,674 $2,590 $2,526 $2,344 $918 $908 $894 $883 $873 2.34% 2.48% 2.60% 2.67% 2.71% Amortized Cost AFS Amortized Cost HTM Tax Equivalent Yield 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 ▪ BUSE carried $873 million in held-to-maturity (HTM) securities as of 12/31/23 ▪ $110 million of available-for-sales securities sold during 4Q23 as portion of two-part balance sheet repositioning (detailed on next page) ▪ The duration of the securities portfolio including HTM is 4.0 years and our fair value duration, which excludes the HTM portfolio, is 3.7 years ▪ After-tax net AFS unrealized loss position of $177 million ▪ Projected AOCI burn down through the end of 2024 is $45 million, or 21% of total AOCI at 12/31/23 ▪ Carrying value of investment portfolio is 24% of total assets ▪ Projected 2024 roll off cash flow (based on static rates) of $342 million at ~1.57% yield. ▪ Over the last four quarters, the size of the investment portfolio has decreased by $485 million as balance sheet rotation continues Balanced, Low-Risk, Short Duration Investment Portfolio Securities Portfolio - Amortized Cost vs. TE Yield Investment Portfolio Composition | 4Q23 ■All Mortgage-Backed Securities & Collateralized Mortgage Obligations are Agency ■91% of Municipal holdings rated AA or better and 8% rated A ■99% of Corporate holdings are investment grade ■Collateralized Loan Obligation portfolio consists of 86% rated AAA and 14% rated AA U.S. Treasuries & Agencies 1% Municipals 6% CMOs 33% Residential MBS 22% Commercial MBS 17% CLOs 14% Corporate 7% Total Securities (Amortized Cost): $3.2 Billion $ in millions AFS % of Amortized Cost 73% HTM % of Amortized Cost 27% $3,702 $3,582 $3,484 $3,409 $3,217
28 284Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE ▪ $110 million of available-for-sales securities sold ▪ Pre-tax loss of $5.3 million ▪ Approximate yield of 1.56% Securities Sold Visa Class B Common Shares Sold ▪ Sold all 16,878 of previously held shares of Visa Class B common stock ▪ Pre-tax gain of $5.5 million ▪ Immediate positive impact on consolidated stockholders’ equity and book value per share ▪ Expected to be accretive to capital and earnings per share in future periods Net Gain from combined transactions Use of Proceeds ▪ Proceeds deposited into an interest-bearing account at the Federal Reserve yielding 5.40% ▪ Anticipate reinvesting the proceeds into loan and investment security opportunities over time 1 Non-GAAP, see Appendix Net Interest Income Impact ▪ Expected to increase net interest income by approximately $4.3 million on annualized run rate basis ▪ Repositioning actions improves net interest margin run rate by approximately 4 bps Previously Announced 4Q23 Balance Sheet Repositioning BUSE announced a two-part balance sheet repositioning strategy during 4Q23 Regulatory Capital Impact ▪ Risk-based regulatory capital ratios will increase modestly as a result of the proceeds rotating into lower risk-weighted assets
29 294Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE ▪ Net interest income was $77.1 million in 4Q23 vs. $77.8 million in 3Q23 and $91.1 million in 4Q22 ▪ Net interest margin1 was 2.74% in 4Q23, a decrease of 6 bps vs. 2.80% in 3Q23. Net interest margin did stabilize in Dec. 2023 ▪ The primary factor contributing to the quarter’s NIM compression was increased funding costs on interest-bearing deposits (29 bps decrease), offset partially by higher new volume rates & repricing rates (15 bps increase) and reduced borrowing costs (6 bps increase) Net Interest Income Noninterest Income ▪ Noninterest income (ex-securities gains/losses)1 of $31 million in 4Q23, representing 29% of revenue ▪ Wealth management fees of $13.7 million in 4Q23, a decrease from $14.2 million in 3Q23 but +6% YoY ▪ Payment tech solutions revenue of $5.4 million in 4Q23, an increase from $5.2 million in 3Q23 and +8% YoY ▪ Fees for customer services of $7.5 million in 4Q23, flat from $7.5 million in 3Q23 and +7% YoY ▪ Adjusted noninterest expense1 (ex-amortization of intangibles, one-time acquisition and restructuring related items) of $68.3 million in 4Q23, resulting in a 63.0% adjusted efficiency ratio1 ▪ Adjusted core expense1 of $65.2 million (ex-amortization of intangible assets, one-time items, unfunded commitment provision, and NMTC amortization) in 4Q23, equating to 60.1% adjusted core efficiency ratio1 Noninterest Expense Provision ▪ $0.5 million loan loss provision expense ▪ $0.8 million provision for unfunded commitments (captured in other noninterest expense) ▪ Net charge offs of $0.4 million in 4Q23 ▪ Adjusted net income of $29.1 million or $0.52 per diluted share1 ($0.51 ex-securities gains) ▪ Adjusted pre-provision net revenue of $40.2 million (1.30% PPNR ROAA) in 4Q23 1 ▪ 0.94% Adjusted ROAA and 13.64% Adjusted ROATCE in 4Q23 1 Earnings 1 Non-GAAP, see Appendix Taxes ▪ 4Q23 earnings were negatively impacted by an increase to income tax expense as a result of adjusting our annual tax provision ▪ 4Q23 effective tax rate increased to 22.5% compared to 18.2% in 3Q23 (20.4% for full year 2023 vs. combined federal and state statutory rate of approximately 28.0%) 4Q23 Earnings Review
30 304Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE $36.3 $36.8 $29.4 $30.7 $29.1 $0.65 $0.65 $0.52 $0.55 $0.52 Adj. Net Income Adj. EPS 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 $50.0 $49.5 $42.1 $40.5 $40.2 1.61% 1.64% 1.38% 1.32% 1.30% Adj. PPNR Adj. PPNR / Avg Assets 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 19.0% 18.5% 13.9% 14.3% 13.6% 1.17% 1.22% 0.96% 1.00% 0.94% Adj. ROATCE Adj. ROAA 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 1 Non-GAAP calculation, see Appendix | 2 Per FRED, Federal Reserve Bank of St. Louis Earnings Performance Adjusted Net Income & Earnings Per Share 1 Adjusted ROAA & Adjusted ROATCE 1 Adjusted Pre-Provision Net Revenue / Avg. Assets 1 Historical Key Rates 2 $ in millions $ in millions 4.30% 4.87% 5.09% 5.31% 5.38% 4.41% 4.06% 4.87% 5.03% 4.23% 3.99% 3.60% 4.13% 4.60% 3.84%3.88% 3.48% 3.81% 4.59% 3.88% SOFR 2-yr UST 5-yr UST 10-Yr UST 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23
Appendix
32 324Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Has served as Chairman & CEO of First Busey since 2007 and became Chairman of the Board effective July 2020. Also serves as Chairman & CEO of Busey Bank, along with a director of FirsTech. Offers 40 years of diverse financial services experience and extensive board involvement with a conservative operating philosophy and management style that focuses on Busey’s associates, customers, communities and shareholders. Joined Busey in January 2020 with nearly 25 years of financial leadership experience. Previously, Ms. Bowe served as Senior Director of Operational Risk Program Management at KeyBank. Ms. Bowe offers experience in M&A due diligence, effective navigation of key risk areas and dedication to continuous improvement towards enterprise-wide risk management strategies. Monica L. Bowe EVP & Chief Risk Officer Joined Busey in December 2011 and has over 40 years of legal experience. Prior to joining Busey, he was a partner in the law firm of Meyer Capel, where he specialized in serving the financial services industry. John J. Powers EVP & General Counsel Joined Busey in 2008 and now leads many areas, including: human resources, marketing, corporate communications and the overall Busey experience, consumer & digital banking, executive administration, as well as all technology and business services & systems. Additionally, she serves as Chairperson and oversees FirsTech. Prior to Busey, Mrs. Randolph worked for 10+ years with CliftonLarsonAllen LLP. Amy L. Randolph EVP & COO Joined Busey in 1984, serving in the role of Vice Chairman of Credit, Chief Banking Officer or Chief Credit Officer since 2010 and chairing all Credit Committees. Mr. Plecki previously served as COO, President & CEO of Busey Wealth Management, and EVP of the Florida and Champaign markets. Prior to the 2007 merger with First Busey, he served in various management roles at Main Street Trust. Joined Busey in 2011 and has over 15 years of experience in the banking industry. Before being named President of Credit and Bank Administration in 2022, he served as Co-Chief Banking Officer for two years. Mr. Jorstad has also held the role of Regional President for Commercial Banking – overseeing business banking efforts, including Agricultural, Commercial, Construction and Real Estate financing. Chip Jorstad EVP & President of Credit and Bank Admin. Joined Busey in 2021, leading the team that provides asset management, investment and fiduciary services to individuals, businesses and foundations. Mr. Burgess formerly served as President of Commerce Brokerage Services, Inc., and was Director of Business Development for the east region of Commerce Trust Company. Jeff D. Burgess EVP & President of Busey Wealth Management Joined Busey in August 2019, bringing nearly 20 years of investment banking and financial services experience. Also serves as a board member of FirsTech. Previously served as Managing Director and Co-Head of Financial Institutions at Stephens Inc. Mr. Jones began his career in the Banking Supervision and Regulation division of the Federal Reserve. Jeffrey D. Jones EVP & CFO Joined Busey in June 2022 to lead the Consumer, Community, Mortgage and Digital Banking teams. Mr. Sheils’ nearly 25 years of banking experience includes serving as the Head of Retail Banking at MB Financial. Prior to his shift to retail, he led teams in Commercial Banking at MB Financial and LaSalle Bank. Joseph A. Sheils EVP & President of Consumer and Digital Banking Van A. Dukeman Chairman, President & CEO Experienced Management Team Robert F. Plecki, Jr. EVP & Vice Chairman of Credit Joined Busey in 2014 as a Commercial Relationship Manager before taking on increasing leadership responsibilities and becoming Regional President of Busey’s Central Illinois Region in May of 2020. He then took on the Indianapolis Region in Q4 2023. Joined FirsTech and Busey in 2020, leading the organization’s Products & Technology efforts. In 2023, he moved into the role of President and CEO with FirsTech and EVP of Technology at Busey. Mr. Ghauri is a proven executive leader with 20-plus years of experience building and leading high growth products and technology organizations. Tenure includes working with CareerBuilder, ADP, Skillsoft and Oracle. Humair Ghauri EVP of Technology, Busey Bank President & CEO, FirsTech Joined Busey in 2016 with the First Community Financial Bank partnership. His career in banking spans 30 years, previously working at LaSalle Bank, First Chicago Bank & Trust, and Inland Bank & Trust prior to moving to First Community. Mr. Gallagher served as Commercial Market President for Busey until moving to Regional President of the Northern Region in 2020. He took on leadership of the Gateway and Florida Regions in Q4 2023, while also assuming responsibility for Busey’s Treasury Management division. Sean Gallagher EVP & Regional President for Northern Illinois, Gateway and Florida Regions Martin O’Donnell EVP & Regional President for Central Illinois and Indiana Regions
33 334Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE $12.1 Billion Assets Under Care LTM Revenue $57.8 Million PT Margin MRQ 40.3% Core Principles I. Client-Focused Strategy Trusted fiduciaries that identify prudent financial solutions to meet client-specific needs and objectives and help clients make better decisions about their wealth II. Team-Based Approach Collaborative team of experienced, credentialed professionals with broad resources that excels in developing unique solutions for clients III. Comprehensive Wealth Management Fully internalized investment office and an investment philosophy that uses a tailored approach to provide proactive advice, empowering clients to make appropriate financial choices to meet their goals in every aspect of their financial health INVESTMENT MANAGEMENT ▪ Preserving and growing wealth with enhanced asset allocation & tax efficient strategies As of 12/31/23 Fully Integrated Wealth Platform PERSONAL SERVICES ▪ Family Office ▪ High Net Worth ▪ Mass Affluent and Emerging Wealth INSTITUTIONAL SERVICES ▪ Retirement Plans ▪ Corporations & Municipalities ▪ Foundations and Endowments ▪ Not-for-Profit Organizations Wealth Client Segments TAX PLANNING & PREPARATION ▪ Deduction maximization, capital event planning, tax-advantaged savings & investment strategies FIDUCIARY ADMINISTRATION ▪ Trust services, estate planning, and philanthropic advisory PRIVATE CLIENT ▪ Concierge banking with one point of contact that coordinates all banking needs AG SERVICES ▪ Farm management and brokerage RETIREMENT PLANNING ▪ Goal-based advisory including life insurance, long-term care, executive stock option strategies Integrated Core Capabilities to Service Personal & Institutional Clients
34 344Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE FirsTech, A Uniquely Positioned Payment Technology Company Traditional Receivables Electronic Payments Merchant Services Services Services Services Sales Channels Sales Channels Sales Channels Lines of Business Lines of BusinessLines of Business ▪ Lockbox ▪ eLockbox ▪ Online (PA/Core) ▪ CSR, IVR, Mobile ▪ IAS/Walk-in ▪ SOW/T&M ▪ PoS ▪ Online ▪ Enterprise Sales Team ▪ FI Sales Team ▪ FI Reseller Sales ▪ Partnerships ▪ Enterprise Sales Team ▪ FI Sales Team ▪ FI Reseller Sales ▪ Partnerships ▪ Merchant Sales Team ▪ Agent Referrals ▪ FI Reseller Sales ▪ Partnerships ▪ FIs ▪ Munis/Gov ▪ Utilities/Telecom/ Insurance ▪ Health ▪ FIs ▪ Munis/Gov ▪ Utilities/Telecom/ Insurance ▪ Health ▪ SMB ▪ FIs ▪ Munis/Gov ▪ Utilities/Telecom/ Insurance ▪ Health ▪ SMB Payments Segments
35 354Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE FirsTech, A Uniquely Positioned Payment Technology Company Through continued growth of the Busey/FirsTech relationship and new opportunities for collaboration, FirsTech is uniquely positioned to leverage our relationship to grow in both Enterprise and FI verticals. Verticals & Products
36 364Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Enhanced Customer Experience Investment Legend Scale & Efficiency Upgrades Future Pending Projects Completed final phase of disaster recovery environment migration to the cloud Deploy robotic process automation tool to automate manual & repetitive processes, freeing up resources and improving associate & customer experience Migrated all telephony infrastructure to the cloud, enhancing video & audio quality and reducing telecom expenses & the amount of internal hardware/resources needed to support our telephony system Continued Investment in Technology Enterprise-Wide 2023 Tech Investment Highlights Implement new Human Resource Information System platform that has enhanced features, functionality, reporting and data analytics Launched “always on” VPN for associates, streamlining computer remote worker onboarding and software update processes enterprise-wide Implemented automated doc, imaging, & indexing solution that further reduces reliance on manual intervention for organizing documents Completed Phase 1 enhancements for nCino platform optimization, continually improving our commercial lending and treasury management processes Consolidated ATM fleet to a single hardware and service provider, which included updating ATMs to a modern user interface, further enhancing security and functionality Upgraded 117 network switches, achieving a substantial reduction in power consumption that translates into approximately $30 thousand in annual cost savings, while also supporting our continuing commitment to environmental sustainability Expanded feature set of IT service desk platform to support robust automation and self-service capabilities Deployed enhanced sales team dashboards that aggregate a client's data from all Busey systems to capture a holistic view of recent activity and current products Launch virtual service agent to proactively engage with our customers, providing 24/7 support and expanding customer service capabilities to include video chat and co-browsing/screen sharing from the customer's device
37 374Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Online Banking MAU 110,689 112,230 111,486111,757112,236 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 Total Consumer 1,048,859 1,061,547 1,096,214 1,091,092 1,107,389 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 Online Banking QAU 2,526 2,538 2,508 2,521 2,535 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 Mobile QAU 618 671 714 717 662 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 Mobile MAU 86,762 88,358 88,862 95,287 96,220 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 Total Consumer Mobile & Online activity includes remote deposits, transfers, bill pay, and Zelle transactions Customer base increasingly relying on self-service features 1 Customer has logged in at least once in the 30 days preceding period-end | 2 Customer has logged in at least once in the 90 days preceding period-end +7% Mobile engagement of customers continues growth trajectory as online banking reaches maturity stage +1% +6% —% 490 thousand total IVR calls over the last 12 months, handling a wide array of customer inquires immediately & efficiently 62% of mortgage closings completed via eClose since launch of offering in 2Q22 - eClosings greatly enhance CX, reducing avg closing time to 10 minutes vs. 1 hour Digital Banking Adoption Commercial Quarterly Active Users 2 Consumer Monthly Active Users 1 Consumer Mobile & Online Transaction Activity (counts, actual) Interactive Voice Response Activity Mortgage eClosings +11%
38 384Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Building on 155 Years of Civic Engagement, Corporate Responsibility and Positive Impacts ▪ Providing over $25 million in green financing since 2021, including energy efficiency improvements, historic preservation and commercial solar development. ▪ Through its robust Corporate Sustainability Program, between 2021 and 2022 Busey recycled over 16,000 pounds of waste and conserved over 60,000 gallons of water. ▪ Busey participated in several climate change initiatives, including installing solar panel systems at 11 Busey facilities, avoiding over 800 tons of carbon emissions over the past decade. ▪ Through many philanthropic efforts, including many associate-driven initiatives, annual charitable donations total over $1.6 million. ▪ Busey boasts a high level of associate engagement, scoring a 4.28 (out of 5) in 2022 based on 12 critical measures of engagement. ▪ Busey launched the Busey Bank Bridge in 2022, a community collective in Peoria, IL, offering fundamental access to economic opportunity for all individuals and small businesses. ▪ Leadership at the Board and Executive level includes a team of diverse backgrounds. Women comprise one- third of the executive team. ▪ Executives, Directors and Officers are expected to follow a stringent code of ethics. ▪ Leadership prioritizes strong corporate governance, employing processes, policies, and customs that exceed industry metrics on risk management, data security and more. ▪ Busey boasts over 7% of Busey common stock beneficially owned by directors and insiders. To view the full 2022 Busey Impact Report, visit busey.com/impact *Further information on all cited metrics can be found in the 2022 Busey Impact Report With a strong and unwavering commitment to our Pillars — associates, customers, shareholders and communities — Busey is committed to strong ethics and governance, social responsibility and environmental sustainability. Volunteer Impact in 2023 Through expanded efforts and consistent emphasis on charitable involvement, Busey is proud to report record volunteer hours logged in 2023 by our talented associate base. Team Busey volunteered over 15,000 hours to over 950 organizations in 2023, in part using their paid volunteer time awarded by Busey. Commitment to our Planet Commitment to our People Commitment to Strong Governance Busey Impact: ESG and Corporate Responsibility
39 394Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Pre-Provision Net Revenue, Adjusted Pre-Provision Net Revenue, Pre-Provision Net Revenue to Average Assets, and Adjusted Pre-Provision Net Revenue to Average Assets (dollars in thousands) Three Months Ended Years Ended December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 PRE-PROVISION NET REVENUE Net interest income $ 77,133 $ 77,791 $ 91,149 $ 319,451 $ 323,438 Total noninterest income 31,516 31,008 29,079 122,384 126,803 Net security (gains) losses (761) 285 (191) 2,199 2,133 Total noninterest expense (74,979) (70,945) (73,677) (285,532) (283,881) Pre-provision net revenue 32,909 38,139 46,360 158,502 168,493 Non-GAAP adjustments: Acquisition and other restructuring expenses 4,237 79 2,442 4,328 4,537 Provision for unfunded commitments 818 13 (464) 461 61 Amortization of New Markets Tax Credits 2,259 2,260 1,665 8,999 6,333 Adjusted pre-provision net revenue $ 40,223 $ 40,491 $ 50,003 $ 172,290 $ 179,424 Pre-provision net revenue, annualized [a] $ 130,563 $ 151,312 $ 183,928 $ 158,502 $ 168,493 Adjusted pre-provision net revenue, annualized [b] 159,580 160,644 198,381 172,290 179,424 Average total assets [c] 12,308,491 12,202,783 12,330,132 12,246,218 12,492,948 Reported: Pre-provision net revenue to average assets1 [a÷c] 1.06 % 1.24 % 1.49 % 1.29 % 1.35 % Adjusted: Pre-provision net revenue to average assets1 [b÷c] 1.30 % 1.32 % 1.61 % 1.41 % 1.44 % ___________________________________________ 1. For quarterly periods, measures are annualized measure. Non-GAAP Financial Information
40 404Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Return on Average Assets, Average Tangible Common Equity, Return on Average Tangible Common Equity, and Adjusted Return on Average Tangible Common Equity (dollars in thousands, except per share amounts) Three Months Ended Years Ended December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 NET INCOME ADJUSTED FOR NON-OPERATING ITEMS Net income [a] $ 25,749 $ 30,666 $ 34,387 $ 122,565 $ 128,311 Non-GAAP adjustments: Acquisition expenses: Salaries, wages, and employee benefits — — — — 587 Data processing — — — — 214 Professional fees, occupancy, and other 266 79 16 357 258 Other restructuring expenses: Salaries, wages, and employee benefits 3,760 — 2,409 3,760 2,409 Loss on leases or fixed asset impairment — — 10 — 986 Professional fees, occupancy, and other 211 — 7 211 83 Related tax benefit1 (863) (15) (539) (881) (938) Adjusted net income [b] $ 29,123 $ 30,730 $ 36,290 $ 126,012 $ 131,910 DILUTED EARNINGS PER SHARE Diluted average common shares outstanding [c] 56,333,033 56,315,492 56,177,790 56,256,148 56,137,164 Reported: Diluted earnings per share [a÷c] $ 0.46 $ 0.54 $ 0.61 $ 2.18 $ 2.29 Adjusted: Diluted earnings per share [b÷c] $ 0.52 $ 0.55 $ 0.65 $ 2.24 $ 2.35 RETURN ON AVERAGE ASSETS Net income, annualized [d] $ 102,156 $ 121,664 $ 136,427 $ 122,565 $ 128,311 Adjusted net income, annualized [e] 115,542 121,918 143,977 126,012 131,910 Average total assets [f] 12,308,491 12,202,783 12,330,132 12,246,218 12,492,948 Reported: Return on average assets2 [d÷f] 0.83 % 1.00 % 1.11 % 1.00 % 1.03 % Adjusted: Return on average assets2 [e÷f] 0.94 % 1.00 % 1.17 % 1.03 % 1.06 % RETURN ON AVERAGE TANGIBLE COMMON EQUITY Average common equity $ 1,202,417 $ 1,208,407 $ 1,122,547 $ 1,197,511 $ 1,195,171 Average goodwill and other intangible assets, net (355,469) (358,025) (366,127) (359,347) (370,424) Average tangible common equity [g] $ 846,948 $ 850,382 $ 756,420 $ 838,164 $ 824,747 Reported: Return on average tangible common equity2 [d÷g] 12.06 % 14.31 % 18.04 % 14.62 % 15.56 % Adjusted: Return on average tangible common equity2 [e÷g] 13.64 % 14.34 % 19.03 % 15.03 % 15.99 % ___________________________________________ 1. Full year tax benefits were calculated by multiplying full year acquisition expenses and other restructuring expenses by the annual effective tax rates for the full year periods. The annual effective tax rates used in these calculations were 20.4% for the year ended December 31, 2023, and 20.7% for the year ended December 31, 2022. Quarterly tax benefits were calculated as the full year amounts less the sum of amounts applied to previous quarters within the year. 2. For quarterly periods, measures are annualized. Non-GAAP Financial Information
41 414Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Non-GAAP Financial Information Adjusted Net Income Excluding Net Securities Gains and Losses and Adjusted Diluted Earnings Per Share Excluding Net Securities Gains and Losses (dollars in thousands, except per share amounts) Three Months Ended Years Ended December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Adjusted net income1 [a] $ 29,123 $ 30,730 $ 36,290 $ 126,012 $ 131,910 Further non-GAAP adjustments: Net securities (gains) losses (761) 285 (191) 2,199 2,133 Tax effect for net securities (gains) losses2 171 (52) 47 (448) (441) Net income excluding net securities (gains) losses3 [b] $ 28,533 $ 30,963 $ 36,146 $ 127,763 $ 133,602 Diluted average common shares outstanding [c] 56,333,033 56,315,492 56,177,790 56,256,148 56,137,164 Adjusted: Diluted earnings per share [a÷c] $ 0.52 $ 0.55 $ 0.65 $ 2.24 $ 2.35 Adjusted: Diluted earnings per share, excluding net securities (gains) losses3 [b÷c] $ 0.51 $ 0.55 $ 0.64 $ 2.27 $ 2.38 ___________________________________________ 1. Adjusted net income is a non-GAAP measure. See the table on the previous slide for a reconciliation to the nearest GAAP measure. 2. Tax effects for net securities gains and losses were calculated by multiplying net securities gains and losses by the effective income tax rates for the periods indicated. Effective tax rates were 22.5%, 18.2%, and 24.7% for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, respectively, and were 20.4% and 20.7% for the years ended December 31, 2023, and December 31, 2022, respectively. 3. Tax-effected measure.
42 424Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Adjusted Net Interest Income and Adjusted Net Interest Margin (dollars in thousands) Three Months Ended Years Ended December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net interest income $ 77,133 $ 77,791 $ 91,149 $ 319,451 $ 323,438 Non-GAAP adjustments: Tax-equivalent adjustment1 501 553 564 2,173 2,199 Tax-equivalent net interest income 77,634 78,344 91,713 321,624 325,637 Purchase accounting accretion related to business combinations (384) (277) (546) (1,477) (3,134) Adjusted net interest income $ 77,250 $ 78,067 $ 91,167 $ 320,147 $ 322,503 Tax-equivalent net interest income, annualized [a] $ 308,004 $ 310,821 $ 363,861 $ 321,624 $ 325,637 Adjusted net interest income, annualized [b] 306,481 309,722 361,695 320,147 322,503 Average interest-earning assets [c] 11,229,326 11,118,167 11,242,126 11,164,594 11,473,063 Reported: Net interest margin2 [a÷c] 2.74 % 2.80 % 3.24 % 2.88 % 2.84 % Adjusted: Net interest margin2 [b÷c] 2.73 % 2.79 % 3.22 % 2.87 % 2.81 % ___________________________________________ 1. Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans. 2. For quarterly periods, measures are annualized. Non-GAAP Financial Information
43 434Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Noninterest Expense Excluding Amortization of Intangible Assets, Adjusted Noninterest Expense, Adjusted Core Expense, Noninterest Expense Excluding Non-operating Adjustments, Efficiency Ratio, Adjusted Efficiency Ratio, and Adjusted Core Efficiency Ratio (dollars in thousands) Three Months Ended Years Ended December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net interest income $ 77,133 $ 77,791 $ 91,149 $ 319,451 $ 323,438 Non-GAAP adjustments: Tax-equivalent adjustment1 501 553 564 2,173 2,199 Tax-equivalent net interest income 77,634 78,344 91,713 321,624 325,637 Total noninterest income 31,516 31,008 29,079 122,384 126,803 Non-GAAP adjustments: Net security (gains) losses (761) 285 (191) 2,199 2,133 Noninterest income excluding net securities gains and losses 30,755 31,293 28,888 124,583 128,936 Tax-equivalent revenue [a] $ 108,389 $ 109,637 $ 120,601 $ 446,207 $ 454,573 Total noninterest expense $ 74,979 $ 70,945 $ 73,677 $ 285,532 $ 283,881 Non-GAAP adjustments: Amortization of intangible assets [b] (2,479) (2,555) (2,795) (10,432) (11,628) Noninterest expense excluding amortization of intangible assets [c] 72,500 68,390 70,882 275,100 272,253 Non-operating adjustments: Salaries, wages, and employee benefits (3,760) — (2,409) (3,760) (2,996) Data processing — — — — (214) Impairment, professional fees, occupancy, and other (477) (79) (33) (568) (1,327) Adjusted noninterest expense [f] 68,263 68,311 68,440 270,772 267,716 Provision for unfunded commitments (818) (13) 464 (461) (61) Amortization of New Markets Tax Credits (2,259) (2,260) (1,665) (8,999) (6,333) Adjusted core expense [g] $ 65,186 $ 66,038 $ 67,239 $ 261,312 $ 261,322 Noninterest expense, excluding non-operating adjustments [f-b] $ 70,742 $ 70,866 $ 71,235 $ 281,204 $ 279,344 Reported: Efficiency ratio [c÷a] 66.89 % 62.38 % 58.77 % 61.65 % 59.89 % Adjusted: Efficiency ratio [f÷a] 62.98 % 62.31 % 56.75 % 60.68 % 58.89 % Adjusted: Core efficiency ratio [g÷a] 60.14 % 60.23 % 55.75 % 58.56 % 57.49 % Non-GAAP Financial Information ___________________________________________ 1. Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
44 444Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Tangible Book Value and Tangible Book Value Per Common Share (dollars in thousands, except per share amounts) As of December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Total stockholders' equity $ 1,271,981 $ 1,190,158 $ 1,201,948 $ 1,198,558 $ 1,145,977 Goodwill and other intangible assets, net (353,864) (356,343) (358,898) (361,567) (364,296) Tangible book value [a] $ 918,117 $ 833,815 $ 843,050 $ 836,991 $ 781,681 Ending number of common shares outstanding [b] 55,244,119 55,342,017 55,290,847 55,294,455 55,279,124 Tangible book value per common share [a÷b] $ 16.62 $ 15.07 $ 15.25 $ 15.14 $ 14.14 Tangible Assets, Tangible Common Equity, and Tangible Common Equity to Tangible Assets (dollars in thousands) As of December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Total assets $ 12,283,415 $ 12,258,250 $ 12,209,029 $ 12,344,555 $ 12,336,677 Non-GAAP adjustments: Goodwill and other intangible assets, net (353,864) (356,343) (358,898) (361,567) (364,296) Tax effect of other intangible assets1 6,888 7,354 7,833 8,335 8,847 Tangible assets2 [a] $ 11,936,439 $ 11,909,261 $ 11,857,964 $ 11,991,323 $ 11,981,228 Total stockholders' equity $ 1,271,981 $ 1,190,158 $ 1,201,948 $ 1,198,558 $ 1,145,977 Non-GAAP adjustments: Goodwill and other intangible assets, net (353,864) (356,343) (358,898) (361,567) (364,296) Tax effect of other intangible assets1 6,888 7,354 7,833 8,335 8,847 Tangible common equity2 [b] $ 925,005 $ 841,169 $ 850,883 $ 845,326 $ 790,528 Tangible common equity to tangible assets2 [b÷a] 7.75 % 7.06 % 7.18 % 7.05 % 6.60 % ___________________________________________ 1. Net of estimated deferred tax liability, calculated using the estimated statutory tax rate of 28%. 2. Tax-effected measure. Non-GAAP Financial Information
45 454Q23 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE Core Loans, Core Loans to Portfolio Loans, Core Deposits, Core Deposits to Total Deposits, and Core Loans to Core Deposits (dollars in thousands) As of December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Portfolio loans [a] $ 7,651,034 $ 7,856,160 $ 7,805,284 $ 7,783,808 $ 7,725,702 Non-GAAP adjustments: PPP loans amortized cost (313) (598) (667) (750) (845) Core loans [b] $ 7,650,721 $ 7,855,562 $ 7,804,617 $ 7,783,058 $ 7,724,857 Total deposits [c] $ 10,291,156 $ 10,332,362 $ 10,062,755 $ 9,801,169 $ 10,071,280 Non-GAAP adjustments: Brokered transaction accounts (6,001) (6,055) (6,055) (6,005) (1,303) Time deposits of $250,000 or more (386,286) (350,276) (297,967) (200,898) (120,377) Core deposits [d] $ 9,898,869 $ 9,976,031 $ 9,758,733 $ 9,594,266 $ 9,949,600 RATIOS Core loans to portfolio loans [b÷a] 100.00 % 99.99 % 99.99 % 99.99 % 99.99 % Core deposits to total deposits [d÷c] 96.19 % 96.55 % 96.98 % 97.89 % 98.79 % Core loans to core deposits [b÷d] 77.29 % 78.74 % 79.98 % 81.12 % 77.64 % Non-GAAP Financial Information