BUSE
INVESTOR HIGHLIGHTS
May 7, 2024
Investor Highlights | First Busey Corporation | Ticker: BUSE |
Overview of First Busey Corporation (NASDAQ: BUSE)
2
155+ year old financial institution headquartered in Champaign, IL
Business Banking
Personal Banking
Wealth Management
Payment Tech Solutions | Regional |
operating | |
model serving | |
four regions |
Northern (IL)
Central (IL/IN)
Gateway (MO/IL)
Florida M&M Bank1
$11.9 Billion | $12.8 Billion | $11 Billion |
Assets 2 | Assets Under Care | LTM Payments Processed |
$372.7 Million | $58.6 Million | $23.1 Million |
LTM Revenue 3 | LTM Revenue 4 | LTM Revenue 5 |
- Pro Forma locations reflect acquisition of Merchants & Manufacturers Bank Corp. Acquisition closed 4/1/24, anticipated to merge banks in June 2024
-
Consolidated | 3 Busey Bank segment, excluding Wealth Management & FirsTech; excludes intracompany eliminations and consolidations | 4 Wealth Management segment
5 FirsTech segment, excludes intracompany eliminations
Investor Highlights | First Busey Corporation | Ticker: BUSE | 3 |
Forging the Franchise
2007 | 2015 |
First Busey and | Acquisition of |
Main Street Trust | Herget Bank in the |
finalize MOE in July | Peoria MSA closes |
- Main Street | in January. |
President & CEO | Herget |
Van A. Dukeman is | |
Assets: $0.3B | |
named President & | |
AUC: $0.2B | |
CEO of the | |
110 year-old institution | |
combined | |
institution. | 2016 |
Busey | BUSE expands into |
a major metro | |
Assets: $2.5B | |
AUC: $2.6B | market - the |
acquisition of | |
Main Street | Pulaski Bank of |
Assets: $1.5B | St. Louis closes in |
AUC: $2.2B | April. |
Pulaski | |
Assets: $1.5B | |
94 year-old institution |
1868
Busey Brothers
- Company Bank opens its doors on January 13 in Urbana, IL.
2017
First Community Financial Partners acquisition closes in July, giving BUSE reach into Chicagoland. Sean Gallagher joins the company via FCFP.
First Community
Assets: $1.3B
BUSE enhances presence in Peoria with the acquisition of South Side Bank in October.
South Side
Assets: $0.7B
AUC: $0.6B
95 year-old institution
2019 | 2020 | 2021 |
BUSE closes the | Following a | BUSE crosses |
acquisition of Bank | period of | $10B threshold by |
of Edwardsville in | significant | expanding into the |
January with | growth in | Northern suburbs |
operations focused | services and | of Chicago, closing |
on the IL-side of | geographic | acquisition of |
the St. Louis MSA. | footprint, the | Glenview State |
Bank of Edwardsville | regional | Bank in May. |
operating model | ||
Assets: $1.7B | Glenview State Bank | |
is officially | ||
AUC: $1.5B | Assets: $1.4B | |
launched. | ||
150 year-old institution | AUC: $1.3B | |
Chief Risk | 100 year-old institution | |
BUSE enhances its | ||
Officer Monica | During 3Q, | |
wealth-led | Bowe joins and | |
operations in Florida | begins building | Jeff Burgess, |
by acquiring | a risk | President of |
Investors' Security | management | Wealth |
Trust in August. | infrastructure | Management |
Investors' Security | positioned for | joined. |
future growth. | ||
Trust | Finalized | |
AUC: $0.5B | ||
consolidation of | ||
one-third of our | ||
Jeff Jones joins as | branch network. | |
CFO. |
2022 | 2023 | 2024 |
Regional | Steadily | On April 1, |
Operating | managed | completed |
Model begins | through | acquisition of |
to propel | Mar. 2023 | M&M Bank |
franchise, | banking | Corp., adding |
with a record | industry | their niche |
year of loan | turmoil, | life equity |
growth and | with | lending |
record year | minimal | products and |
of AUC gross | deposit | further |
new inflows. | attrition | expanding |
During 2Q, | showing | footprint in |
stability of | the Chicago | |
Joe Sheils | our deposit | MSA. |
joins as | franchise. | |
President of | Merchants & | |
Consumer & | Record | Manufacturers |
Digital | Assets: $0.5B | |
year for | ||
Banking. | New lending | |
FirsTech | ||
vertical | ||
revenue. |
Total Assets ($B) | Total Wealth AUC ($B)
2007 | 2017 | 2024 |
Note: Total Assets and AUC for acquired institutions are as of acquisition close date
Investor Highlights | First Busey Corporation | Ticker: BUSE | 4 |
Fortress Balance Sheet at Attractive Valuation
Financial Highlights
$ in millions | 2022 | 2023 | 2024 YTD |
Total Assets | $12,337 | $12,283 | $11,887 |
Total Loans | $7,726 | $7,651 | $7,588 |
Total Deposits | $10,071 | $10,291 | $9,960 |
Total Equity | $1,146 | $1,272 | $1,283 |
Total Wealth AUC | $11,062 | $12,137 | $12,763 |
NPA/Assets | 0.13 % | 0.06 % | 0.15 % |
Net Interest Margin 1 | 2.84 % | 2.88 % | 2.79 % |
Adj. Nonint. Income % | 28.5 % | 28.1 % | 30.9 % |
of Total Revenue 1 | |||
Adj. PPNR ROAA 1 | 1.44 % | 1.41 % | 1.29 % |
Adj. ROAA 1 | 1.06 % | 1.03 % | 0.89 % |
Adj. ROATCE 1 | 15.99 % | 15.03 % | 11.56 % |
BUSE Stock 2
Market Cap | Price Per Share | Dividend Yield | Price/TBV | Price/2024E 3 |
$1.3B | $23.72 | 4.0% | 1.4x | 11.6x |
$26 | ||||
$24 | ||||
$22 | ||||
$20 | ||||
$18 | ||||
$16 | ||||
Mar--23 | Jun--23 | Sep--23 | Dec--23 | Mar--24 |
1-Year Total Shareholder Return ⁶
+42.5%
+34.7% +30.5% +28.3% +28.2%
BUSE | KRE | Selected | Proxy Peers | KRX |
Regional Peers⁴ |
BUSE Tangible Book Value / Share (ex-AOCI)7
$25 | +7.0% CAGR | ||||||||||||||
$20.86 | |||||||||||||||
$20 | |||||||||||||||
$15 | |||||||||||||||
$10 | $7.94 | ||||||||||||||
$5 | |||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 |
- Non-GAAPcalculation, see Appendix | 2 Market Data for BUSE updated to close on 5/3/24, per Nasdaq | 3 Based on consensus median net income of covering analysts as of 5/3/2024
- Selected peers based in BUSE's current operating regions include: WTFC, ONB, ASB, CBSH, SFNC, HTLF, FRME, FFBC, SBCF, EFSC, BY, SRCE, SYBT, HBNC, MSBI, FMBH, MOFG, LKFN, OSBC
5 All metrics as of 3/31/24 except for Core Deposits/Total Deposits which is as of 12/31/23, as not fully reported by peer group until 10-Q filings | 6 1-year total shareholder return from 5/3/24; median 1-year TSR of peer group is used for Selected Regional Peers and Proxy Peers | 7 TBV per share as reported in quarterly filings with add-back of after-tax AOCI at each period-end
Investor Highlights | First Busey Corporation | Ticker: BUSE | 5 |
One Busey
As of 3/31/24
$11.9 Billion | $372.7 Million | 76.2% |
Total Assets | Revenue LTM 1 | Loan-to-Deposit Ratio |
- Focus on leaning on the power of commercial, wealth, and payment tech to promote a broad set of solutions to well-capitalized individuals and the companies they own & operate
- This consistent go-to-market strategy provides ample opportunities for building a holistic customer relationship and accelerating organic growth
- Incentives are fully aligned to promote a cohesive sales structure across all products
- Relationship managers are equipped with knowledge to provide service excellence for every solution the enterprise offers
- Business Leadership Development Institute that trains selected new hires on a 24-month track of Commercial Banking & Wealth Management
- Busey Bank segment, excluding Wealth Management & FirsTech; excludes intracompany eliminations and consolidations
Investor Highlights | First Busey Corporation | Ticker: BUSE | 6 |
Regional Operating Model
- Enterprise-widesales structure is organized by region - bringing the complete Busey experience to each community through local leadership and autonomy
- This regional operating model is built to deliver the customer experience of a smaller community bank with all the efficiencies, products, technology and resources of the nation's largest banks - uniquely consolidating our strengths for the benefit of our clients
- Each region has their own dedicated regional teams - the regional presidents have full responsibility for the P&L of their region
Other financial institutions have competing components by segment - our regionalization plan broadens the view for each business segment and increases collaboration. Expertise is leveraged across teams - because everyone shares in the success
Regions | Central | Gateway | Northern | Florida |
Central IL, Joliet, Indiana | St. Louis MSA | Chicago suburbs | Southwest Florida | |
As of 3/31/24 | ||||
Deposits | $5.3 billion | $2.4 billion | $1.8 billion | $0.5 billion |
Loans | $3.2 billion | $1.9 billion | $2.1 billion | $0.4 billion |
AUC | $9.0 billion | $1.5 billion | $1.2 billion | $1.1 billion |
Note: Regions do not include Merchants & Manufacturers Bank ($0.4B loans, $0.4B deposits). Acquisition closed 4/1/2024 and bank merger anticipated to be completed in June 2024
Investor Highlights | First Busey Corporation | Ticker: BUSE | 7 |
Fully Integrated Wealth Platform
$12.8 Billion | |||
As of 3/31/24 | Assets Under Care | ||
Wealth Client Segments | |||
PERSONAL SERVICES | INSTITUTIONAL SERVICES | ||
▪ | Family Office | ▪ | Retirement Plans |
▪ | High Net Worth | ▪ | Corporations & Municipalities |
▪ Mass Affluent and Emerging Wealth | ▪ | Foundations and Endowments | |
▪ Not-for-Profit Organizations |
Comprehensive and Integrated Core Capabilities
to Serve Personal & Institutional Clients
INVESTMENT MANAGEMENT
▪ Preserving and growing wealth with
enhanced asset allocation & tax | |
efficient strategies | |
RETIREMENT PLANNING | |
▪ Goal-based advisory including life | |
insurance, long-term care, | |
executive stock option strategies | |
PRIVATE CLIENT | TAX PLANNING & PREPARATION |
▪ Concierge banking with one | ▪ Deduction maximization, capital |
point of contact that | event planning, tax-advantaged |
coordinates all banking needs | savings & investment strategies |
AG SERVICES | FIDUCIARY ADMINISTRATION |
▪ Farm management and | ▪ Trust services, estate planning, |
brokerage | and philanthropic advisory |
$58.6 Million | 42.5% |
Revenue LTM 1 | PT Margin LTM |
- Uniquely positioned with ability to provide comprehensive solutions similar to larger advisory firms while maintaining the tailored, client-focused approach of boutique investment firms
- Bank + Wealth partnership allows us to better keep customer funds inside our overall ecosystem depending on client needs
- Our fully internalized investment team continues to produce excellent returns, focused on long-term outperformance of benchmarks
7
- Wealth Management segment
Investor Highlights | First Busey Corporation | Ticker: BUSE | 8 |
Wealth Management Quarterly Trends
-
Assets Under Care (AUC) of $12.8 billion, a QoQ increase of $0.6 billion and a YoY increase of $1.6 billion,
or +13.9% - 1Q24 Wealth segment revenue of $15.7 million, the second-best quarterly revenue in company history, a YoY increase of +5.3%
- Pre-taxnet income of $6.6 million in 1Q24, a YoY increase of +2.9%
- Pre-taxprofit margin of 41.9% in 1Q24 and 42.5% over the last twelve months
- Substantial growth in assets under care during 1Q24 was the result of both market appreciation and net new asset generation
Wealth - Revenue and Pre-tax Income 1
$ in millions | |||
$14.9 | $14.7 | $14.4 | $15.7 |
$13.8 | |||
42.8% | 44.1% | 43.8% | 41.9% |
40.3% | |||
$6.4 | $6.5 | $6.3 | $6.6 |
$5.6 |
2023 Q1 | 2023 Q2 | 2023 Q3 | 2023 Q4 | 2024 Q1 | |||||
Revenue | Pre-Tax Net Income | Pre-Tax | Profit Margin | ||||||
Assets Under Care
$ in millions
$12,763
$12,137
$11,208 $11,478 $11,548
2023 Q1 | 2023 Q2 | 2023 Q3 | 2023 Q4 | 2024 Q1 |
Wealth Revenue 1 Composition
$ in millions | |||
$14.9 | $14.7 | $15.7 | |
$14.4 | |||
$13.8 | |||
2023 Q1 | 2023 Q2 | 2023 Q3 | 2023 Q4 | 8 | 2024 Q1 | ||||
Trust | Brokerage | Tax Planning | |||||||
Estate Settlement | Ag Services | Other | |||||||
- Wealth Management segment
Investor Highlights | First Busey Corporation | Ticker: BUSE | 9 |
FirsTech Story
As of 3/31/24
$11 Billion | 41 Million | $23.1 Million |
Payments Processed LTM | Transactions Processed LTM | Revenue LTM 1 |
- Founded in 1984 as a lockbox processing facility that has evolved into eLockbox, now providing online banking & bill payment for customers 40 years after founding
- Initially acquired as part of First Decatur Bancshares acquisition completed in March 2000
- In 2009, FirsTech became a wholly-owned subsidiary of Busey Bank
Key Leadership
Humair Ghauri
President & CEO, FirsTech
EVP of Technology, Busey Bank
Joined FirsTech and Busey in 2020, leading the organization's Products & Technology efforts. In 2023, Humair moved into the role of President & CEO with FirsTech and EVP of Technology at Busey Bank.
Mr. Ghauri is a proven executive leader with 20+ years of experience building and leading high growth products and technology organizations. Humair's tenure includes working with CareerBuilder, ADP, Skillsoft and Oracle.
Payments Segments
Traditional Receivables (lockbox, eLockbox)
Electronic Payments (online, mobile, interactive voice response, etc.)
Merchant Services (point of sale, online)
Revenue Growth 1
$22.8 million
$21.8 million
$19.7 million
$16.6 million
2020 | 2021 | 2022 | 2023 |
1Q24 revenue of $6.0 million was the highest9 quarterly revenue in company history
- Revenue equates to all revenue sources tied to FirsTech and excludes intracompany eliminations
Investor Highlights | First Busey Corporation | Ticker: BUSE | 10 |
FirsTech Priorities
FirsTech is poised to build on its technology expertise to deepen relationships with existing FirsTech and Busey Bank clients as well as create innovative solutions to grow the business
- Strengthen collaboration with Busey Bank, building on existing relationships to expand delivery of FirsTech capabilities, increasing revenue through deeper Busey customer penetration
- Expand and refine profitable core products (merchant services, traditional receivables, electronic payment services), clarifying marketing messaging and growing revenue opportunities
- Increased focus on profitability through the continued migration to merchant processor providing better economics for FirsTech and our customers, while also reviewing enterprise contracts and cost structures to improve margins relative to services provided
- Innovate in the consumer platform to continue enhancements of our configurable SaaS platform for financial institutions and enterprise customers
Focused on innovating to double-digit annual growth and
$50 million in annual revenue
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Disclaimer
First Busey Corporation published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 May 2024 08:01:23 UTC.