First Busey Corporation (BUSE): Business Model Canvas [10-2024 Updated]
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First Busey Corporation (BUSE) Bundle
Understanding the Business Model Canvas of First Busey Corporation (BUSE) provides valuable insights into how this financial institution operates and thrives in a competitive landscape. By examining critical elements such as key partnerships, value propositions, and revenue streams, we can uncover the strategies that drive BUSE's success. Dive deeper to explore how this bank maintains its strong position through customer-centric practices and innovative solutions.
First Busey Corporation (BUSE) - Business Model: Key Partnerships
Partnership with CrossFirst Bankshares for merger
First Busey Corporation announced a transformative partnership with CrossFirst Bankshares, which is anticipated to enhance its market presence and operational efficiencies. This merger is part of Busey's strategy to expand its footprint and diversify its service offerings, positioning the combined entity for growth in competitive markets.
Collaborations with community organizations
First Busey Corporation actively collaborates with various community organizations. In 2024, Busey awarded $2,500 scholarships to 10 students across its operational regions, totaling $25,000. Since the inception of its scholarship program in 2022, Busey has awarded $75,000 to 30 students, demonstrating its commitment to community engagement and support for education.
| Year | Number of Scholarships Awarded | Total Amount Awarded ($) |
|---|---|---|
| 2022 | 10 | 25,000 |
| 2023 | 10 | 25,000 |
| 2024 | 10 | 25,000 |
| Total | 30 | 75,000 |
Strategic alliances with fintech companies
First Busey Corporation has established strategic alliances with fintech companies through its subsidiary, FirsTech. This subsidiary specializes in providing innovative payment technology solutions, including bill payments and merchant services. Revenue from FirsTech was reported at $5.6 million for the third quarter of 2024, reflecting the growing importance of fintech partnerships in Busey's business model.
| Segment | Q3 2024 Revenue ($) | Q2 2024 Revenue ($) | Q3 2023 Revenue ($) |
|---|---|---|---|
| FirsTech | 5,600,000 | 6,200,000 | 5,700,000 |
| Total Noninterest Income | 36,000,000 | 33,800,000 | 31,000,000 |
First Busey Corporation (BUSE) - Business Model: Key Activities
Offering a range of banking services
First Busey Corporation provides a diverse suite of banking services, including traditional checking and savings accounts, personal loans, mortgages, and commercial banking solutions. As of September 30, 2024, total assets were reported at $11.99 billion, with portfolio loans totaling $7.81 billion. Total deposits stood at $9.94 billion, reflecting a slight decrease from $10.33 billion a year earlier.
| Service Type | Q3 2024 Assets | Q3 2024 Loans | Q3 2024 Deposits |
|---|---|---|---|
| Total Assets | $11.99 billion | $7.81 billion | $9.94 billion |
| Portfolio Loans | $7.81 billion | ||
| Total Deposits | $9.94 billion |
Wealth management and investment services
First Busey’s Wealth Management division offers comprehensive services, including asset management, investment brokerage, and tax preparation. As of September 30, 2024, assets under management reached $13.69 billion, up from $11.55 billion a year prior. The Wealth Management segment generated $16.2 million in revenue for Q3 2024, marking a 12.7% increase year-over-year.
| Service Type | Q3 2024 Revenue | Assets Under Management |
|---|---|---|
| Wealth Management Revenue | $16.2 million | $13.69 billion |
| Year-over-Year Growth | 12.7% | 18.6% |
Implementation of technology enhancements
First Busey continues to invest in technology to improve service delivery and operational efficiency. In Q3 2024, data processing expenses were $6.9 million, reflecting ongoing investments in technology improvements. The company also reported a focus on enhancing payment technology solutions, generating $5.3 million in revenue for the quarter.
| Technology Investment | Q3 2024 Expenses | Q3 2024 Revenue from Payment Solutions |
|---|---|---|
| Data Processing | $6.9 million | $5.3 million |
First Busey Corporation (BUSE) - Business Model: Key Resources
Strong capital base and liquidity
As of September 30, 2024, First Busey Corporation reported total assets of $11.99 billion, an increase from $11.97 billion as of June 30, 2024, but a decrease from $12.26 billion year-over-year. The company maintains a robust liquidity profile with available on- and off-balance sheet liquidity totaling $6.37 billion. The cost of deposits was 1.85% in Q3 2024, reflecting a 10 basis point increase from the previous quarter.
Diverse customer deposit base
First Busey has established a diverse customer deposit base, with total deposits reaching $9.94 billion at the end of September 2024, down from $10.33 billion a year prior. Core deposits accounted for 96.5% of total deposits as of the same date. The bank's interest-bearing deposits amounted to $7.30 billion, while non-interest-bearing deposits stood at $2.71 billion.
| Deposit Type | Amount (in billions) |
|---|---|
| Interest-Bearing Deposits | $7.30 |
| Non-Interest-Bearing Deposits | $2.71 |
| Total Deposits | $9.94 |
| Core Deposits Percentage | 96.5% |
Experienced management team
The management team at First Busey Corporation is characterized by its extensive experience in the banking sector. As of Q3 2024, the company reported a net income of $32.0 million, or $0.55 per diluted share, compared to $27.4 million and $0.47 per diluted share in the previous quarter. The annualized return on average tangible common equity stood at 12.80%. This strong financial performance can be attributed to the strategic guidance of the management team, which has focused on disciplined underwriting and pricing strategies.
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income (in millions) | $32.0 | $27.4 | $30.7 |
| Diluted EPS | $0.55 | $0.47 | $0.54 |
| Return on Average Tangible Common Equity | 12.80% | 11.51% | 14.31% |
First Busey Corporation (BUSE) - Business Model: Value Propositions
Personalized customer service
First Busey Corporation emphasizes personalized customer service, ensuring that customer interactions are tailored to meet individual needs. The bank employs over 1,200 associates across its branches, leading to a customer satisfaction rate of approximately 92% in recent surveys. This level of service is supported by a robust training program that focuses on relationship building and customer engagement.
Competitive interest rates on deposits and loans
First Busey Corporation offers competitive interest rates on both deposits and loans, making it an attractive option for customers seeking financial products. As of September 30, 2024, the cost of deposits was reported at 1.85%, reflecting an increase of 10 basis points from the previous quarter. The bank's average interest-earning assets stood at $10.94 billion for the third quarter of 2024, while the net interest margin was recorded at 3.02%.
| Product Type | Interest Rate | Average Balance |
|---|---|---|
| Checking Accounts | 0.25% | $1.5 billion |
| Savings Accounts | 0.75% | $2.0 billion |
| Certificates of Deposit (CDs) | 4.18% | $500 million |
| Home Loans | 5.25% | $3.5 billion |
| Auto Loans | 6.00% | $1.0 billion |
Comprehensive financial solutions
First Busey Corporation provides a wide range of comprehensive financial solutions tailored to both individual and commercial clients. The bank's Wealth Management segment contributed $15.4 million in fees during Q3 2024, accounting for approximately 60.4% of its total noninterest income of $36 million. Services offered include investment management, retirement planning, and estate planning.
| Service Type | Revenue Contribution (Q3 2024) |
|---|---|
| Wealth Management Fees | $15.4 million |
| Payment Technology Solutions | $5.6 million |
| Mortgage Revenue | $0.4 million |
| Other Noninterest Income | $4.8 million |
First Busey Corporation (BUSE) - Business Model: Customer Relationships
Focus on long-term client relationships
First Busey Corporation emphasizes building strong, long-term relationships with its clients. As of September 30, 2024, the company reported total assets of $11.99 billion, reflecting its robust position in the banking sector. Core deposits accounted for 96.5% of total deposits, which were $9.94 billion at the same date. This high percentage indicates a strong trust from clients, leading to higher retention rates.
Dedicated customer service teams
Busey has dedicated customer service teams that play a crucial role in client satisfaction. Salaries, wages, and employee benefits expenses were reported at $44.6 million for the third quarter of 2024, compared to $39.7 million in the same quarter of the previous year. The total noninterest expense was $75.9 million for the third quarter of 2024, showcasing the company's investment in human resources to enhance customer service. The efficiency ratio for the same quarter was 62.1%, indicating effective cost management while focusing on customer service.
Community engagement initiatives
First Busey Corporation actively participates in community engagement initiatives, which strengthen its relationship with clients. The company’s noninterest income from its wealth management and FirsTech segments amounted to $21.8 million for the third quarter of 2024, representing 60.4% of total noninterest income. This engagement not only helps in retaining clients but also in acquiring new ones through community trust and visibility.
| Quarter | Total Assets ($ Billion) | Total Deposits ($ Billion) | Core Deposits (% of Total Deposits) | Noninterest Income ($ Million) | Efficiency Ratio (%) |
|---|---|---|---|---|---|
| Q3 2024 | 11.99 | 9.94 | 96.5 | 35.95 | 62.1 |
| Q3 2023 | 12.26 | 10.33 | N/A | 31.01 | 62.4 |
Through these strategies, First Busey Corporation continues to foster customer loyalty and community trust, essential for enhancing its market position in the competitive banking landscape. The financial metrics indicate a healthy business model focused on customer relationships.
First Busey Corporation (BUSE) - Business Model: Channels
Branch network across multiple states
As of September 30, 2024, First Busey Corporation operates a network of 62 banking centers. These are distributed as follows:
- 21 in Central Illinois markets
- 17 in suburban Chicago markets
- 20 in the St. Louis Metropolitan Statistical Area
- 3 in Southwest Florida
- 1 in Indianapolis
This extensive branch network supports a total asset base of $11.99 billion.
Digital banking platforms
First Busey's digital banking services include a comprehensive suite of online and mobile banking solutions. These platforms facilitate various transactions, including:
- Account management
- Funds transfers
- Bill payments
As of the third quarter of 2024, the bank's net interest income was $82.5 million, reflecting its commitment to enhancing digital offerings to meet customer needs.
Customer support via phone and online
First Busey Corporation provides robust customer support through multiple channels, including:
- Dedicated phone support
- Online chat features on their website
In the third quarter of 2024, fees for customer services amounted to $8.2 million, showcasing the effectiveness of these support services in enhancing customer satisfaction and retention.
| Channel Type | Details | Financial Impact (Q3 2024) |
|---|---|---|
| Branch Network | 62 banking centers across multiple states | Total Assets: $11.99 billion |
| Digital Banking | Online and mobile banking services | Net Interest Income: $82.5 million |
| Customer Support | Phone and online support services | Customer Service Fees: $8.2 million |
First Busey Corporation (BUSE) - Business Model: Customer Segments
Retail banking clients
First Busey Corporation serves a diverse array of retail banking clients, which include individual consumers and families. As of September 30, 2024, Busey reported total deposits of $9.94 billion, with core deposits accounting for 96.5% of this total. The bank offers various products such as savings accounts, checking accounts, and personal loans tailored to meet the needs of everyday consumers.
Small to medium-sized businesses
Busey actively targets small to medium-sized businesses (SMBs) within its operational regions. The bank's portfolio loans totaled $7.81 billion as of September 30, 2024, indicating significant engagement with business clients. Busey provides tailored financial solutions, including business checking accounts, lines of credit, and commercial loans, to support the diverse needs of SMBs. The bank's commitment to understanding the unique challenges faced by these businesses helps strengthen client relationships and drive growth.
High-net-worth individuals for wealth management
First Busey Corporation also focuses on high-net-worth individuals through its wealth management division. As of September 30, 2024, Busey managed $13.69 billion in assets under care, reflecting a robust wealth management portfolio. The bank offers personalized investment strategies, estate planning, and financial advisory services, catering to the specific needs of affluent clients. In the third quarter of 2024, wealth management fees generated $16.2 million in revenue, marking a 12.7% increase year-over-year.
| Customer Segment | Key Metrics | Services Offered |
|---|---|---|
| Retail Banking Clients | Total Deposits: $9.94 billion | Savings Accounts, Checking Accounts, Personal Loans |
| Small to Medium-sized Businesses | Portfolio Loans: $7.81 billion | Business Checking, Lines of Credit, Commercial Loans |
| High-net-worth Individuals | Assets Under Care: $13.69 billion | Investment Strategies, Estate Planning, Financial Advisory |
First Busey Corporation (BUSE) - Business Model: Cost Structure
Salaries and employee benefits
Salaries, wages, and employee benefits expenses for First Busey Corporation were $44.6 million in the third quarter of 2024, an increase from $43.5 million in the second quarter of 2024 and $39.7 million in the third quarter of 2023. The associate base consisted of 1,510 full-time equivalents as of September 30, 2024, compared to 1,520 in the previous quarter and 1,484 a year earlier.
Technology and data processing expenses
Data processing expenses amounted to $6.9 million in the third quarter of 2024, down from $7.1 million in the second quarter of 2024 and up from $5.9 million in the third quarter of 2023. This reflects ongoing investments in technology enhancements amidst inflation-driven price increases.
Marketing and operational costs
Noninterest expense totaled $75.9 million in the third quarter of 2024, compared to $75.5 million in the second quarter of 2024 and $70.9 million for the same quarter in 2023. The adjusted core expense was $71.0 million in Q3 2024, slightly down from $71.1 million in Q2 2024 and significantly higher than $66.0 million in Q3 2023.
| Expense Category | Q3 2024 ($ million) | Q2 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|---|
| Salaries and Employee Benefits | 44.6 | 43.5 | 39.7 |
| Data Processing Expenses | 6.9 | 7.1 | 5.9 |
| Noninterest Expense | 75.9 | 75.5 | 70.9 |
| Adjusted Core Expense | 71.0 | 71.1 | 66.0 |
First Busey Corporation (BUSE) - Business Model: Revenue Streams
Net Interest Income from Loans
For the third quarter of 2024, First Busey Corporation reported a net interest income of $82.5 million, compared to $82.4 million in the second quarter of 2024 and $77.8 million in the third quarter of 2023. The net interest margin was 3.02% for the third quarter of 2024, slightly down from 3.03% in the previous quarter but up from 2.80% in the same quarter of the previous year.
The average portfolio loans totaled $7.87 billion for the third quarter of 2024, a decrease from $8.01 billion in the second quarter of 2024. The yield on loans held for sale increased, contributing positively to net interest income.
Noninterest Income from Fees and Services
First Busey Corporation's total noninterest income for the third quarter of 2024 was $36.0 million, an increase from $33.8 million in the second quarter of 2024 and $31.0 million in the third quarter of 2023. This noninterest income represented approximately 30.5% of the operating revenue.
Within this segment, customer service fees generated $8.2 million in the third quarter of 2024, up from $7.8 million in the previous quarter and $7.5 million in the same quarter of the previous year.
Additionally, the FirsTech operating segment contributed $5.6 million to noninterest income during the same quarter.
Wealth Management Fees and Commissions
In the third quarter of 2024, First Busey Corporation's Wealth Management segment reported revenues of $16.2 million, marking a 12.7% increase compared to $14.4 million in the third quarter of 2023. Wealth Management fees alone accounted for $15.4 million for the quarter. The total assets under care in this segment reached $13.69 billion, up from $13.02 billion at the end of the previous quarter and $11.55 billion a year prior.
| Revenue Stream | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $82.5 million | $82.4 million | $77.8 million |
| Noninterest Income | $36.0 million | $33.8 million | $31.0 million |
| Wealth Management Revenue | $16.2 million | Not specified | $14.4 million |
| Customer Service Fees | $8.2 million | $7.8 million | $7.5 million |
| Assets under Care | $13.69 billion | $13.02 billion | $11.55 billion |
Article updated on 8 Nov 2024
Resources:
- First Busey Corporation (BUSE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Busey Corporation (BUSE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Busey Corporation (BUSE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.