 CHAMPAIGN, Ill., July 28, 2020 GLOBE NEWSWIRE -- Nasdaq: BUSE Message from our President CEOSecond Quarter Financial Results The net income for First Busey Corporation First Busey or the Company for the second quarter of 2020 was 25.8 million, or 0.47 per diluted common share, as compared to 15.4 million, or 0.28 per diluted common share, for the first quarter of 2020 and 24.1 million, or 0.43 per diluted common share, for the second quarter of 2019. Adjusted net income1 for the second quarter of 2020 was 26.2 million, or 0.48 per diluted common share, as compared to 15.5 million, or 0.28 per diluted common share, for the first quarter of 2020 and 29.5 million, or 0.53 per diluted common share, for the second quarter of 2019. Pre-provision net revenue1 for the second quarter of 2020 was 45.4 million as compared to 35.8 million for the first quarter of 2020 and 34.3 million for the second quarter of 2019. Adjusted pre-provision net revenue1 for the second quarter of 2020 was 46.4 million as compared to 38.2 million for the first quarter of 2020 and 42.8 million for the second quarter of 2019. For the second quarter of 2020, annualized return on average assets and annualized return on average tangible common equity1 were 1.00 and 12.02, respectively. Based on adjusted net income1, annualized return on average assets was 1.02 and annualized return on average tangible common equity1 was 12.20 for the second quarter of 2020.The Companys performance was solid during the quarter as it continued to navigate the Coronavirus disease 2019 COVID-19 pandemic and record appropriate reserves. During the quarter, due to Paycheck Protection Program PPP loans and other factors, the Companys total assets exceeded 10 billion. If the Company remains over 10 billion in assets at year-end, it will begin to face limitations on interchange fees and heightened supervision and regulation in 2021. In future quarters, COVID-19 is expected to have a complex and continued adverse impact on the economy, the banking industry and First Busey, all subject to a high degree of uncertainty as it relates to both timing and severity. Primary areas of potential future impact to the Company may include further margin compression, increased provision expense, lower wealth management and customer service fees and a deterioration in asset quality.On January 1, 2020, the Company adopted ASU 2016-13 Topic 326, Measurement of Credit Losses on Financial Instruments, commonly referenced as the Current Expected Credit Loss CECL model. Upon adoption of CECL, the Company recognized a 16.8 million increase in its allowance for credit losses, substantially attributable to the remaining loan fair value marks on prior acquisitions, and a 5.5 million increase in its reserve for unfunded commitments. Under accounting rules, the reserve for unfunded commitments is carried on the balance sheet in other liabilities rather than as a component of the allowance for credit losses. These one-time increases, net of tax, were 15.9 million and recorded as an adjustment to beginning retained earnings. Ongoing impacts of the CECL methodology will be dependent upon changes in economic conditions and forecasts, originated and acquired loan portfolio composition, credit performance trends, portfolio duration, and other factors. During the second quarter of 2020, the Company recorded provision for credit losses of 12.9 million and provision for unfunded commitments of 0.6 million primarily as a result of economic factors around COVID-19. The allowance increased from 53.7 million at December 31, 2019, to 84.4 million at March 31, 2020, to 96.0 million at June 30, 2020, representing 1.33 of portfolio loans outstanding, 1.48 of portfolio loans excluding PPP loans, and 378.43 of non-performing loans at June 30, 2020.The Company views certain non-operating items, including acquisition-related and restructuring charges, as adjustments to net income reported under U.S. generally accepted accounting principles GAAP. Non-operating pretax adjustments for the second quarter of 2020 were 0.1 million of expenses related to acquisitions and 0.3 million of restructuring expenses. The Company believes that non-GAAP measures including adjusted pre-provision net revenue, adjusted net income, adjusted earnings per share, adjusted return on average assets, adjusted net interest margin, adjusted efficiency ratio, tangible book value, tangible book value per share and return on average tangible common equity, facilitate the assessment of its financial results and peer comparability. A reconciliation of these non-GAAP measures is included in tabular form at the end of this release.COVID-19 Update First Busey continues to operate as an essential community resource during these unprecedented times resulting from COVID-19. The Company entered this crisis from a position of strength and remains resolute in its focus on serving its customers, communities and associates while protecting its balance sheet. 1 A Non-GAAP financial measure. See Non-GAAP Financial Information below for reconciliation.To alleviate some of the financial hardships qualifying customers may face as a result of COVID-19, First Busey is offering an internal Financial Relief Program. The program includes options for short-term loan payment deferrals and certain fee waivers. As of June 30, 2020, the Company had 1,122 commercial loan payment deferrals representing 1.12 billion in loans, 949 mortgagepersonal loan payment deferrals representing 130.2 million in loans and an additional 638 deferrals for 80.9 million of mortgage loans in the serviced portfolio. An update on the deferral program as of July 24, 2020 is provided in the 2Q20 Quarterly Earnings Supplement presentation.As part of the Coronavirus Aid, Relief, and Economic Security Act CARES Act, Congress appropriated approximately 349 billion for the creation of the PPP and then authorized a second phase for another 310 billion in PPP loans. The program provided payroll assistance for the nations nearly 30 million small businessesand select nonprofitsin the form of 100 government-guaranteed low-interest loans from the U.S. Small Business Administration. First Busey served as a bridge for the program, actively helping existing and new business clients sign up for this important financial resource. At June 30, 2020, First Busey had 746.4 million in PPP loans outstanding, with an amortized cost of 729.3 million, representing 4,445 new and existing customers.Subordinated Debt Issuance To further enhance the Companys strong capital and liquidity positions, First Busey completed a successful public offering of 125.0 million 5.25 Fixed-to-Floating Rate Subordinated Notes due 2030 during the quarter. This issuance of regulatory capital qualifying subordinated debt contributed to an increase in the First Busey total risk based capital ratio, which was 16.23 at June 30, 2020, compared to 13.85 at March 31, 2020, while also significantly bolstering the cash reserves held at the holding company.Banking Center Consolidation Plan After careful consideration and analysis, the Company decided in July 2020 its plan to consolidate 12 branches to ensure a balance between the Companys physical banking center network and robust digital banking services. An efficient banking center footprint and strategic service models are necessary to keep First Busey competitive, responsive and independent. The banking centers will close in October 2020. When fully realized, annualized expense savings net of expected associated revenue impacts are anticipated to be approximately 3.3 million with the impact of these cost savings beginning to be realized in the fourth quarter of 2020. One-time expenses expected in relation to the banking centers closings are anticipated to be incurred during the third and fourth quarters of 2020.First Buseys goal of being a strong community bank for the communities it serves begins with outstanding associates. The Company is honored to be named among the 2020 Best Places to Work in Illinois by Daily Herald Business Ledger, the 2020 Best Companies to Work For in Florida by Florida Trend magazine, the 2020 Best Place to Work in Indiana by the Indiana Chamber of Commerce, 2019 Best Banks to Work For by American Banker, the 2019 Best-In-State Banks for Illinois by Forbes and Statista, the 2019 Best Places to Work in St. Louis by the St. Louis Business Journal and the 2019 Best Places to Work in Money Management by Pensions and Investments.First Busey takes pride in its culture and is thankful for the exceptional work over the past few months carried out by its associates. In todays fluid, ever-evolving landscape, the Company remains steadfast in its commitment to the customers and communities it serves.s Van A. Dukeman President Chief Executive Officer First Busey CorporationSELECTED FINANCIAL HIGHLIGHTS1 dollars in thousands, except per share data As of and for the Three Months EndedAs of and for the Six Months Ended June 30,March 31,December 31,June 30,June 30,June 30, 202020202019201920202019 EARNINGS PER SHARE DATA Pre-provision net revenue2,4 45,394 35,849 37,479 34,330 81,243 71,453 Revenue3 98,462 96,363 102,969 102,350 194,825 196,636 Net income 25,806 15,364 28,571 24,085 41,170 49,554 Diluted earnings per share 0.47 0.28 0.52 0.43 0.75 0.90 Cash dividends paid per share 0.22 0.22 0.21 0.21 0.44 0. 