FIRST BUSEY CORP /NV/

Changes in noninterest income are summarized as follows:

Total noninterest income was $21.2 million for the three months ended March 31, 2025, a decrease of 39.2% from the comparable period in 2024, primarily due to net securities losses that were recorded in connection with a strategic balance sheet repositioning.

Wealth management fees were $17.4 million for the three months ended March 31, 2025, an 11.7% increase from the comparable period for 2024, primarily due to increases in trust fee income. On a segment basis, Busey’s Wealth Management division contributed $17.6 million for the three months ended March 31, 2025, which included approximately $0.2 million reported as other noninterest income. Busey’s Wealth Management division ended the first quarter of 2025 with $13.68 billion in assets under care, an increase of 7.2% compared to the balance on March 31, 2024. Busey’s portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets.

Income from payment technology solutions relates to Busey’s payment processing company, FirsTech. Payment technology solutions income was $5.1 million for the three months ended March 31, 2025, an 11.1% decrease from the comparable period in 2024, primarily due to decreases in income from electronic payments, online bill payments, and interactive voice response payments, partially offset by increases in income from lockbox processing and merchant services. On a segment basis, FirsTech contributed $5.4 million for the three months ended March 31, 2025.

On a segment basis, noninterest income generated from Busey’s Wealth Management and FirsTech operating segments contributed $23.0 million for the three months ended March 31, 2025, adding revenue diversification and providing a balance to spread-based revenue from traditional banking activities. For additional information about Busey’s operating segments, see“Note 16. Operating Segments and Related Information.”

Fees for customer services were $8.1 million for the three months ended March 31, 2025, a 15.2% increase from the comparable period in 2024, primarily due to increases in analysis charges, automated teller machine fees, and interchange fees, partially offset by lower non-sufficient funds charges. Increases in fees for customer services are primarily attributable to the inclusion of one month of CrossFirst’s income in operating results.

Mortgage revenue was $0.3 million for the three months ended March 31, 2025, a 55.9% decrease from the comparable period in 2024. Decreases were primarily based on sold-loan mortgage volume and decreased servicing income. General economic conditions and interest rate volatility may impact future mortgage revenue.

Income on bank owned life insurance was $1.4 million for the three months ended March 31, 2025, a 1.9% increase from the comparable period in 2024, which included a $0.2 million increase in the cash surrender value of the policies and a $0.2 million decrease in earnings on death proceeds.

During the three months ended March 31, 2025, Busey did not record any realized gains on the sale of mortgage servicing rights. In comparison, during the three months ended March 31, 2024, Busey recognized a $7.5 million gain on the sale of mortgage servicing rights in connection with a strategic two-part balance sheet repositioning.

Net securities losses of $15.8 million were realized during the three months ended March 31, 2025, a 147.3% increase over the net securities losses realized during the comparable period in 2024. Losses for the three months ended March 31, 2025, were comprised of $15.5 million of realized net losses on securities associated with a strategic balance sheet repositioning and $0.2 million of unrealized net losses recognized on equity securities. Proceeds from the balance sheet repositioning were used to purchase higher-yielding securities.

Other noninterest income was $4.7 million for the three months ended March 31, 2025, a 39.1% increase from the comparable period in 2024. The increase was primarily driven by increases in swap origination fees, gains on commercial loan sales, Life Equity Loan® servicing income, and OREO income, offset by decreases in venture capital income.