Summary of Accounting Policies

9 Months Ended

Sep. 30, 2012

Summary of Accounting Policies

2. Summary of Accounting Policies

The Company is a multi-bank financial holding company, which offers a wide range of banking and other financial services to its customers through its branches and offices in the states of Missouri, Kansas, Colorado, Illinois, Oklahoma, Arizona, Nebraska, Pennsylvania, South Dakota, Indiana, Wisconsin, New Jersey, and Massachusetts. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions also impact reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A summary of the significant accounting policies to assist the reader in understanding the financial presentation is listed in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

Interest-bearing Due From Banks

Amounts due from the Federal Reserve Bank which are interest-bearing for all periods presented, and amounts due from certificates of deposits held at other financial institutions are included in interest-bearing due from banks. The amount due from the Federal Reserve Bank totaled $144.1 million and $187.4 million at September 30, 2012 and September 30, 2011, respectively, and is considered cash and cash equivalents. The amounts due from certificates of deposit totaled $29.9 million and $135.6 million at September 30, 2012 and September 30, 2011, respectively.

This table provides a summary of cash and due from banks as presented on the Consolidated Statement of Cash Flows as of September 30, 2012 and September 30, 2011 (in thousands):

	September 30,
	2012		2011
Due from the Federal Reserve	$	144,135	$	187,443
Cash and due from banks		397,339		383,757
Cash and due from banks at end of period	$	541,474	$	571,200

Per Share Data

Basic income per share is computed based on the weighted average number of shares of common stock outstanding during each period. Diluted quarterly per share data includes the dilutive effect of 517,430 and 299,465 shares issuable upon the exercise of options granted by the Company and outstanding at September 30, 2012 and 2011, respectively. Diluted year-to-date income per share includes the dilutive effect of 431,418 and 307,866 shares issuable upon the exercise of stock options granted by the Company and outstanding at September 30, 2012 and 2011, respectively.

Options issued under employee benefit plans to purchase 510,850 shares of common stock were outstanding at September 30, 2012, but were not included in the computation of year-to-date diluted EPS because the options were anti-dilutive. Options issued under employee benefit plans to purchase 883,294 shares of common stock were outstanding at September 30, 2011, but were not included in the computation of quarterly and year-to-date diluted EPS because the options were anti-dilutive.