Note 15: Operating Segments and Related Information

The Company has three reportable operating segments, Banking, Remittance Processing and Wealth Management. The Banking operating segment provides a full range of banking services to individual and corporate customers through its banking center network in Illinois, St. Louis, Missouri metropolitan area, southwest Florida and through its banking center in Indianapolis, Indiana. The Remittance Processing operating segment provides for online bill payments, lockbox and walk-in payments. The Wealth Management operating segment provides a full range of asset management, investment and fiduciary services to individuals, businesses and foundations, tax preparation, philanthropic advisory services and farm and brokerage services.

The Company’s three operating segments are strategic business units that are separately managed as they offer different products and services and have different marketing strategies. The “other” category consists of the parent company and the elimination of intercompany transactions.

The segment financial information provided below has been derived from information used by management to monitor and manage the financial performance of the Company. The accounting policies of the three segments are the same as those described in the summary of significant accounting policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Following is a summary of selected financial information for the Company’s operating segments (dollars in thousands):

	Goodwill				Total Assets
	June 30, 2018		December 31, 2017		June 30, 2018			December 31, 2017
Banking	$	246,999	$	248,660	$	7,719,424		$	7,809,738
Remittance Processing	8,992		8,992		36,572			34,646
Wealth Management	11,694		11,694		32,103			32,077
Other	—		—		(12,555		)	(15,821		)

Totals	$	267,685	$	269,346	$	7,775,544		$	7,860,640

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Net interest income:
Banking	$	62,109		$	43,365		$	123,525		$	85,907
Remittance Processing	16			15			32			29
Wealth Management	100			90			194			146
Other	(1,853		)	(1,104		)	(3,622		)	(1,703		)

Total net interest income	$	60,372		$	42,366		$	120,129		$	84,379


Non-interest income:
Banking	$	11,734		$	10,758		$	22,631		$	21,212
Remittance Processing	3,987			3,005			7,770			6,029
Wealth Management	7,808			6,691			16,449			13,708
Other	(727		)	(392		)	(1,562		)	(873		)

Total non-interest income	$	22,802		$	20,062		$	45,288		$	40,076


Non-interest expense:
Banking	$	37,855		$	29,331		$	79,241		$	58,621
Remittance Processing	2,624			2,174			5,090			4,286
Wealth Management	4,703			3,980			9,614			7,944
Other	2,123			1,283			4,400			3,536

Total non-interest expense	$	47,305		$	36,768		$	98,345		$	74,387


Income before income taxes:
Banking	$	33,730		$	24,292		$	63,649		$	47,498
Remittance Processing	1,379			847			2,712			1,773
Wealth Management	3,205			2,801			7,029			5,910
Other	(4,703		)	(2,780		)	(9,584		)	(6,113		)

Total income before income taxes	$	33,611		$	25,160		$	63,806		$	49,068


Net income:
Banking	$	24,904		$	15,855		$	46,749		$	30,604
Remittance Processing	986			508			1,939			1,062
Wealth Management	2,288			1,675			5,052			3,523
Other	(3,316		)	(1,559		)	(6,961		)	(3,540		)

Total net income	$	24,862		$	16,479		$	46,779		$	31,649