FIRST BUSEY CORP NV

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

Total noninterest income was $36.0 million for the three months ended September 30, 2024, an increase of 15.9% from the comparable period in 2023, and was $104.8 million for the nine months ended September 30, 2024, an increase of 15.3% from the comparable period in 2023.

Wealth management fees were $15.4 million for the three months ended September 30, 2024, an 8.0% increase from the comparable period in 2023, and were $46.8 million for the nine months ended September 30, 2024, a 7.5% increase from the comparable period for 2023. On a segment basis, Busey’s Wealth Management division contributed $16.2 million, or 45.0%, of our noninterest income for the three months ended September 30, 2024, which included approximately $0.8 million reported as other noninterest income, and contributed $48.0 million, or 45.8%, of our noninterest income for the nine months ended September 30, 2024. Busey’s Wealth Management division ended the third quarter of 2024 with $13.69 billion in assets under care, an increase of 18.6% compared to the balance on September 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 relates to our payment processing company, FirsTech. Payment technology solutions was $5.3 million for the three months ended September 30, 2024, a 0.7% increase from the comparable period in 2023, and was $16.9 million for the nine months ended September 30, 2024, a 7.1% increase from the comparable period in 2023. On a segment basis, FirsTech contributed $5.6 million, or 15.4% of our noninterest income for the three months ended September 30, 2024, and $17.7 million, or 16.9%, of our noninterest income for the nine months ended September 30, 2024. Increased merchant processing, lockbox processing, online bill payment income, and programming income drove the increases.

Combined, noninterest income from wealth management fees and payment technology solutions represented 57.4% and 60.8% of Busey’s noninterest income for the three and nine months ended September 30, 2024, respectively, providing a complement to spread-based revenue from traditional banking activities. On a combined basis, noninterest income from these two critical operating activities was $20.6 million for the three months ended September 30, 2024, a 6.1% increase from the comparable period in 2023, and was $63.7 million for the nine months ended September 30, 2024, a 7.4% increase from the comparable period in 2023.

On a segment basis, noninterest income generated from our Wealth Management and FirsTech operating segments contributed $21.7 million, or 60.4%, of our total noninterest income for the three months ended September 30, 2024, and contributed $65.7 million, or 62.7%, of our total noninterest income for the nine months ended September 30, 2024, providing a balance to spread-based revenue from traditional banking activities. For additional information about our operating segments, see“Note 16. Operating Segments and Related Information.”

Fees for customer services were $8.2 million for the three months ended September 30, 2024, an 8.9% increase from the comparable period in 2023, and were $23.0 million for the nine months ended September 30, 2024, a 6.8% increase from the comparable period in 2023.

Mortgage revenue was $0.4 million for the three months ended September 30, 2024, a 14.1% increase from the comparable period in 2023, and was $1.6 million for the nine months ended September 30, 2024, an 81.3% 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 $1.2 million for the three months ended September 30, 2024, an 18.8% increase from the comparable period in 2023, as a result of a $0.1 million increase in the cash surrender value of the policies and a $0.1 million increase in earnings on death proceeds. Income on bank owned life insurance was $4.1 million for the nine months ended September 30, 2024, a 10.0% increase from the comparable period in 2023, as a result of a $0.2 million increase in the cash surrender value of the policies and a $0.1 million increase in earnings on death proceeds.

During the nine months ended September 30, 2024, a $7.7 million 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 gains were $0.8 million for the three months ended September 30, 2024, a 388.4% increase over the net securities losses experienced during the comparable period in 2023. Gains were comprised primarily of unrealized net gains recognized on equity securities. Net securities losses were $5.9 million for the nine months ended September 30, 2024, a 99.5% increase from the comparable period in 2023. Losses for the nine months ended September 30, 2024, were comprised of $6.8 million of realized net losses on securities associated with the above mentioned two-part balance sheet repositioning and $0.9 million of unrealized net gains recognized on equity securities.

Other noninterest income was $4.8 million for the three months ended September 30, 2024, a 58.8% increase from the comparable period in 2023, and was $10.6 million for the nine months ended September 30, 2024, a 26.4% increase from the comparable period in 2023. Income associated with certain wealth management activities reported as other noninterest income on a consolidated basis was $0.8 million and $1.1 million for the three and nine months ended September 30, 2024, respectively, compared to $0.1 million and $0.4 million for the three and nine months ended September 30, 2023, respectively. Other fluctuations were primary attributable to income recognized on venture capital investments, Life Equity Loan® servicing income, gains on commercial loan sales, swap origination fees, and dividend income on FHLB stock.