First Busey Results Presentation Deck slide image

First Busey Results Presentation Deck

4Q23 Earnings Investor Presentation Actively Managing Asset-Sensitive Balance Sheet ■ ■ 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 Repricing / Maturity Structures of Portfolio Loans Within 1 Year 38% 5+ Years 27% 1-2 Years 6% 2-3 Years 10% 3-5 Years 19% 1 Deposit betas are calculated based on an average fed funds target rate of 5.50% during 4Q23 Annual % Change in Net Interest Income under Shock Scenarios Rate Shock +200 bps +100 bps -100 bps -200 bps 21% Year 1 26% +3.6% +1.8% -1.9% -3.9% Balance sheet is projected over one- & two-year time horizons and net interest income is calculated under current market rates assuming permanent instantaneous shifts Deposit Betasin last Tightening Cycle vs. Current ALCO Model Forecast ALCO Model Forecast - Peak NM Deposits Beta, 46% ALCO Model Forecast - Peak Total Deposits Beta, 35% 3Q15 - 2019 (+225 bps move in FF) IB Non-Maturity Beta Year 2 36% 31% +4.2% +2.1% -3.0% -6.1% 1Q22 - 4Q23 (+525 bps move in FF) Total Deposit Beta 24 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 B
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