FIRST BUSEY CORP NV
For the period ended Mar 31, 2024. Filed May 7, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 7, 2024
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Noninterest Income
Changes in noninterest income are summarized as follows for the periods presented(dollars in thousands):
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | Change | % Change | |
| Noninterest income | ||||
| Wealth management and payment technology solutions income: | ||||
| Wealth management fees | $15,549 | $14,797 | $752 | 5.1% |
| Payment technology solutions | 5,709 | 5,315 | 394 | 7.4% |
| Combined, wealth management fees and payment technology solutions | 21,258 | 20,112 | 1,146 | 5.7% |
| Fees for customer services | 7,056 | 6,819 | 237 | 3.5% |
| Mortgage revenue | 746 | 288 | 458 | 159.0% |
| Income on bank owned life insurance | 1,419 | 1,652 | (233) | (14.1)% |
| Realized gain on the sale of mortgage servicing rights | 7,465 | — | 7,465 | NM |
| Securities income: | ||||
| Realized net gains (losses) on securities | (6,802) | 4 | (6,806) | NM |
| Unrealized net gains (losses) recognized on equity securities | 427 | (620) | 1,047 | 168.9% |
| Net securities gains (losses) | (6,375) | (616) | (5,759) | NM |
| Other income | 3,431 | 3,593 | (162) | (4.5)% |
| Total noninterest income | $35,000 | $31,848 | $3,152 | 9.9% |
| Assets under care as of period end | $12,762,786 | $11,208,308 | $1,554,478 | 13.9% |
Total noninterest income was $35.0 million for the three months ended March 31, 2024, an increase of 9.9% from the comparable period in 2023. Total noninterest income represented 31.6% of total revenue 2 for the three months ended March 31, 2024, compared to 27.1% for the comparable period in 2023.
Combined, revenues from wealth management fees and payment technology solutions represented 60.7% of Busey’s noninterest income for the three months ended March 31, 2024, providing a complement to spread-based revenue from traditional banking activities. On a combined basis, revenue from these two critical operating areas was $21.3 million for the three months ended March 31, 2024, a 5.7% increase from the comparable period in 2023.
Wealth management fees were $15.5 million for the three months ended March 31, 2024, a 5.1% increase from the comparable period in 2023. Busey’s Wealth Management division ended the first quarter of 2024 with $12.8 billion in assets under care, an increase of 13.9% from the comparable period in 2023. 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 was $5.7 million for the three months ended March 31, 2024, a 7.4% increase from the comparable period in 2023.
2 Total revenue consists of net interest income plus noninterest income.
Fees for customer services were $7.1 million for the three months ended March 31, 2024, a 3.5% increase from the comparable period in 2023.
Mortgage revenue was $0.7 million for the three months ended March 31, 2024, a 159.0% increase from the comparable period in 2023, primarily based on sold-loan mortgage volume. General economic conditions and interest rate volatility may impact future fee income. The sale of the mortgage servicing rights completed during the first quarter of 2024 is expected to reduce mortgage revenue by an average of $0.2 million per quarter for the remainder of the year.
Income on bank owned life insurance was $1.4 million for the three months ended March 31, 2024, a 14.1% decrease from the comparable period in 2023, as a result of a $0.3 million decrease in earnings on death proceeds and a $0.1 million increase in the cash surrender value of the insurance policies.
A realized gain on the sale of mortgage servicing rights was recognized in connection with our strategic two-part balance sheet repositioning completed during the first quarter of 2024. For more information, see“Management’s Discussion and Analysis of Financial Condition and Results of Operations—
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