FIRST BUSEY CORP NV
For the period ended Dec 31, 2023. Filed Feb 23, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Feb 23, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Noninterest Income
Changes in noninterest income are summarized in the tables below for the periods presented(dollars in thousands):
| Years Ended December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | Change | % Change | |
| Noninterest income | ||||
| Wealth management and payment technology solutions income: | ||||
| Wealth management fees | $57,309 | $55,378 | $1,931 | 3.5% |
| Payment technology solutions | 21,192 | 20,067 | 1,125 | 5.6% |
| Combined, wealth management fees and payment technology solutions | 78,501 | 75,445 | 3,056 | 4.1% |
| Fees for customer services | 29,044 | 33,111 | (4,067) | (12.3)% |
| Mortgage revenue | 1,089 | 1,895 | (806) | (42.5)% |
| Income on bank owned life insurance | 4,701 | 3,663 | 1,038 | 28.3% |
| Securities income: | ||||
| Realized net gains (losses) on securities | (28) | 50 | (78) | (156.0)% |
| Unrealized net gains (losses) recognized on equity securities | (2,171) | (2,183) | 12 | 0.5% |
| Net securities gains (losses) | (2,199) | (2,133) | (66) | (3.1)% |
| Other income | 11,248 | 14,822 | (3,574) | (24.1)% |
| Total noninterest income | $122,384 | $126,803 | $(4,419) | (3.5)% |
| Assets under care as of period end | $12,136,869 | $11,061,831 | $1,075,038 | 9.7% |
First Busey Corporation | 2023 — 62
| Years Ended December 31, | ||||
|---|---|---|---|---|
| 2022 | 2021 | Change | % Change | |
| Noninterest income | ||||
| Wealth management and payment technology solutions income: | ||||
| Wealth management fees | $55,378 | $53,086 | $2,292 | 4.3% |
| Payment technology solutions | 20,067 | 18,347 | 1,720 | 9.4% |
| Combined, wealth management fees and payment technology solutions | 75,445 | 71,433 | 4,012 | 5.6% |
| Fees for customer services | 33,111 | 35,604 | (2,493) | (7.0)% |
| Mortgage revenue | 1,895 | 7,239 | (5,344) | (73.8)% |
| Income on bank owned life insurance | 3,663 | 5,166 | (1,503) | (29.1)% |
| Securities income: | ||||
| Realized net gains (losses) on securities | 50 | 29 | 21 | 72.4% |
| Unrealized net gains (losses) recognized on equity securities | (2,183) | 3,041 | (5,224) | (171.8)% |
| Net securities gains (losses) | (2,133) | 3,070 | (5,203) | (169.5)% |
| Other income | 14,822 | 10,292 | 4,530 | 44.0% |
| Total noninterest income | $126,803 | $132,804 | $(6,001) | (4.5)% |
| Assets under care | $11,061,831 | $12,731,319 | $(1,669,488) | (13.1)% |
Total noninterest income was $122.4 million for the year ended December 31, 2023, a decrease of 3.5% when compared with $126.8 million for the year ended December 31, 2022. The year-over-year decrease in non-interest income is substantially attributable to Durbin Amendment impacts as described in further detail below. Total noninterest income represented 27.7% of total revenue 2 in 2023, compared to 28.2% in 2022.
Combined, revenues from wealth management fees and payment technology solutions represented 64.1% and 59.5% of Busey’s noninterest income for the years ended December 31, 2023, and December 31, 2022, respectively, providing a complement to spread-based revenue from traditional banking activities. On a combined basis, revenue from these two critical operating areas was $78.5 million for the year ended December 31, 2023, a 4.1% increase from $75.4 million for the year ended December 31, 2022.
Wealth management fees increased by 3.5% to $57.3 million in 2023, compared to $55.4 million in 2022. Busey’s Wealth Management division had $12.1 billion in assets under care as of December 31, 2023, compared to $11.1 billion as of December 31, 2022. Our portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets.
Payment technology solutions revenue relates to our payment processing company, FirsTech. Payment technology solutions revenue increased by 5.6% to $21.2 million in 2023, compared to $20.1 million in 2022. Results for 2023 marked a new record high reported annual revenue for FirsTech.
2 Total revenue consists of net interest income plus noninterest income.
First Busey Corporation | 2023 — 63
Fees for customer services decreased by 12.3% to $29.0 million in 2023, compared to $33.1 million in 2022. Beginning on July 1, 2022, we became subject to the Durbin Amendment, which requires the Federal Reserve to establish a maximum permissible interchange fee for many types of debit transactions. Reduced fee income is primarily attributable to the impact of the Durbin Amendment for all of 2023 versus only half of 2022, as well to modifications implemented to overdraft and non-sufficient funds fee structures.
Mortgage revenue was $1.1 million in 2023, compared to $1.9 million in 2022. Decreases primarily resulted from declines in mortgage origination and sold-loan mortgage volume. General economic conditions and interest rate volatility may impact future fee income.
Income on bank owned life insurance increased by 28.3% to $4.7 million in 2023, compared to $3.7 million in 2022, resulting from a $0.8 million increase in earnings on death proceeds and a $0.2 million increase in the cash surrender value of the insurance policies.
Other income decreased by 24.1% to $11.2 million in 2023, compared to $14.8 million in 2022. Primary contributors to other income include swap origination fees, gains on commercial loans sales, and changes in venture capital investment valuations.
First Busey Corporation | 2023 — 64
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.