FIRST BUSEY CORP NV
For the period ended Dec 31, 2024. Filed Feb 27, 2025.
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FY2024 · Filed Feb 27, 2025
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Noninterest Income
Changes in noninterest income are summarized in the tables below for the periods presented(dollars in thousands):
| Years Ended December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | Change | % Change | |
| Noninterest income | ||||
| Wealth management and payment technology solutions income: | ||||
| Wealth management fees | $63,630 | $57,309 | $6,321 | 11.0% |
| Payment technology solutions | 21,983 | 21,192 | 791 | 3.7% |
| Combined, wealth management fees and payment technology solutions | 85,613 | 78,501 | 7,112 | 9.1% |
| Fees for customer services | 30,933 | 29,044 | 1,889 | 6.5% |
| Mortgage revenue | 2,075 | 1,089 | 986 | 90.5% |
| Income on bank owned life insurance | 5,130 | 4,701 | 429 | 9.1% |
| Realized net gains (losses) on the sale of mortgage servicing rights | 7,724 | — | 7,724 | 100.0% |
| Securities income: | ||||
| Realized net gains (losses) on securities | (7,033) | (28) | (7,005) | NM |
| Unrealized net gains (losses) recognized on equity securities | 931 | (2,171) | 3,102 | 142.9% |
| Net securities gains (losses) | (6,102) | (2,199) | (3,903) | (177.5)% |
| Other noninterest income | 14,309 | 10,078 | 4,231 | 42.0% |
| Total noninterest income | $139,682 | $121,214 | $18,468 | 15.2% |
| Assets under care as of period end | $13,833,654 | $12,136,869 | $1,696,785 | 14.0% |
First Busey Corporation(BUSE) | 2024 —60
Total noninterest income was $139.7 million for the year ended December 31, 2024, an increase of 15.2% when compared with $121.2 million for the year ended December 31, 2023. Total noninterest income represented 30.2% of total revenue 2 in 2024, compared to 27.4% in 2023.
Wealth management fees increased by 11.0% to $63.6 million in 2024, compared to $57.3 million in 2023. Busey’s Wealth Management division had $13.83 billion in assets under care as of December 31, 2024, compared to $12.14 billion as of December 31, 2023. Busey’s 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 Busey’s payment processing company, FirsTech. Payment technology solutions revenue increased by 3.7% to $22.0 million in 2024, compared to $21.2 million in 2023. Results for 2024 marked a new record high reported annual revenue for FirsTech.
Combined, revenues from wealth management fees and payment technology solutions represented 61.3% and 64.8% of Busey’s noninterest income for the years ended December 31, 2024, and December 31, 2023, respectively, providing a complement to spread-based revenue from traditional banking activities. On a combined basis, revenue from these two critical operating areas was $85.6 million for the year ended December 31, 2024, a 9.1% increase from $78.5 million for the year ended December 31, 2023.
Fees for customer services increased by 6.5% to $30.9 million in 2024, compared to $29.0 million in 2023.
Mortgage revenue was $2.1 million in 2024, compared to $1.1 million in 2023. Increases were primarily related to sold-loan mortgage volume. General economic conditions and interest rate volatility may impact future mortgage revenue.
Income on bank owned life insurance increased by 9.1% to $5.1 million in 2024, compared to $4.7 million in 2023, resulting from a $0.1 million increase in earnings on death proceeds and a $0.3 million increase in the cash surrender value of the insurance policies.
A realized gain on the sale of mortgage servicing rights of $7.7 million was recognized in connection with Busey’s strategic two-part balance sheet repositioning completed during 2024. Busey sold the mortgage servicing rights on approximately $923.5 million of one- to four-family mortgage loans, which enabled Busey to sell available for sale investment securities with a book value of approximately $108.2 million for a pre-tax loss of $6.8 million with no resulting negative impact to tangible capital.
Other income increased by 42.0% to $14.3 million in 2024, compared to $10.1 million in 2023. Increases in other income were primarily attributable to increases in commercial loan sales gains and venture capital income, as well as the addition of Life Equity Loan® servicing income beginning in the second quarter of 2024.
2 Total revenue consists of net interest income plus noninterest income.
First Busey Corporation(BUSE) | 2024 —61
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