FIRST BUSEY CORP NV

Changes in noninterest income are summarized as follows for the periods presented(dollars in thousands):

Total noninterest income was $33.8 million for the three months ended June 30, 2024, an increase of 20.7% from the comparable period in 2023, and was $68.8 million for the six months ended June 30, 2024, an increase of 14.9% from the comparable period in 2023.

Combined, revenues from wealth management fees and payment technology solutions represented 64.6% and 62.6% of Busey’s noninterest income for the three and six months ended June 30, 2024, respectively, providing a complement to spread-based revenue from traditional banking activities. On a combined basis, revenue from these two critical operating areas was $21.8 million for the three months ended June 30, 2024, a 10.3% increase from the comparable period in 2023, and was $43.1 million for the six months ended June 30, 2024, an 8.0% increase from the comparable period in 2023.

Wealth management fees were $15.9 million for the three months ended June 30, 2024, a 9.3% increase from the comparable period in 2023, and were $31.5 million for the six months ended June 30, 2024, a 7.2% increase from the comparable period for 2023. Busey’s Wealth Management division ended the second quarter of 2024 with $13.0 billion in assets under care, an increase of 13.4% compared to the balance on June 30, 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 $5.9 million for the three months ended June 30, 2024, a 13.1% increase from the comparable period in 2023, and was $11.6 million for the six months ended June 30, 2024, a 10.2% increase from the comparable period in 2023. Increased merchant processing, lockbox processing, online bill payment income, and programming income drove the increases.

Fees for customer services were $7.8 million for the three months ended June 30, 2024, a 7.7% increase from the comparable period in 2023, and were $14.9 million for the six months ended June 30, 2024, a 5.7% increase from the comparable period in 2023.

Mortgage revenue was $0.5 million for the three months ended June 30, 2024, a 75.7% increase from the comparable period in 2023, and was $1.2 million for the six months ended June 30, 2024, a 118.6% increase from the comparable period in 2023. Increases were primarily based on sold-loan mortgage volume. General economic conditions and interest rate volatility may impact future fee income.

Income on bank owned life insurance was $1.4 million for the three months ended June 30, 2024, a 40.1% increase from the comparable period in 2023, and was $2.9 million for the six months ended June 30, 2024, a 6.7% increase from the comparable period in 2023. Quarter to date increases is primarily attributable to a $0.3 million increase in earnings on death proceeds.

A realized gain on the sale of mortgage servicing rights was recognized in connection with our strategic two-part balance sheet repositioning. For more information, see“Busey executed a two-part balance sheet repositioning strategy” in the Management Discussion and Analysis included in our Quarterly Report for the first quarter of 2024.

Net securities losses were $0.4 million for the three months ended June 30, 2024, an 82.9% decrease from the comparable period in 2023. Losses for the three months ended June 30, 2024, were comprised primarily of unrealized net losses recognized on equity securities. Net securities losses were $6.7 million for the six months ended June 30, 2024, a 151.5% increase from the comparable period in 2023, comprised of $6.8 million of realized net losses on securities associated with the above mentioned two-part balance sheet repositioning and $0.1 million of unrealized net losses recognized on equity securities.

Other noninterest income was $2.3 million for the three months ended June 30, 2024, a 33.9% increase from the comparable period in 2023, and was $5.8 million for the six months ended June 30, 2024, an 8.0% increase from the comparable period in 2023. Fluctuations are primary attributable to income recognized on venture capital investments, gains on commercial loan sales, swap origination fees, fixed asset disposals, and dividend income on FHLB stock.