Operating Segments and Related Information

6 Months Ended

Jun. 30, 2019

Operating Segments and Related Information

Operating Segments and Related Information

Note 12: 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. Banking services for Busey Bank and TheBANK are aggregated into the banking operating segment as they have similar operations and activities. 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 “Note 1. Significant Accounting Policies” to Form 10-K. The Company accounts for intersegment revenue and transfers at current market value.

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

	Goodwill				Total Assets
	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Banking	$	293,657	$	246,999	$	9,568,148	$	7,656,709
Remittance Processing		8,992		8,992		42,083		39,278
Wealth Management		11,694		11,694		26,015		20,992
Other		—		—		(23,579)		(14,622)
Totals	$	314,343	$	267,685	$	9,612,667	$	7,702,357

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Net interest income:
Banking	$	75,944	$	62,109	$	146,582	$	123,525
Remittance Processing		18		16		36		32
Wealth Management		—		100		—		194
Other		(2,534)		(1,853)		(4,807)		(3,622)
Total net interest income	$	73,428	$	60,372	$	141,811	$	120,129
Non-interest income:
Banking	$	15,659	$	11,734	$	28,442	$	22,631
Remittance Processing		4,117		3,987		8,298		7,770
Wealth Management		9,594		7,808		18,727		16,449
Other		(1,474)		(727)		(1,626)		(1,562)
Total non-interest income	$	27,896	$	22,802	$	53,841	$	45,288
Non-interest expense:
Banking	$	56,895	$	37,855	$	102,066	$	79,241
Remittance Processing		2,589		2,624		5,353		5,090
Wealth Management		5,749		4,703		11,313		9,614
Other		2,787		2,123		6,451		4,400
Total non-interest expense	$	68,020	$	47,305	$	125,183	$	98,345
Income before income taxes:
Banking	$	32,191	$	33,730	$	68,330	$	63,649
Remittance Processing		1,546		1,379		2,981		2,712
Wealth Management		3,845		3,205		7,414		7,029
Other		(6,795)		(4,703)		(12,884)		(9,584)
Total income before income taxes	$	30,787	$	33,611	$	65,841	$	63,806
Net income:
Banking	$	24,441	$	24,904	$	51,106	$	46,749
Remittance Processing		1,105		986		2,130		1,939
Wealth Management		2,845		2,288		5,486		5,052
Other		(4,306)		(3,316)		(9,168)		(6,961)
Total net income	$	24,085	$	24,862	$	49,554	$	46,779