Operating Segments and Related Information

9 Months Ended

Sep. 30, 2019

Operating Segments and Related Information

Operating Segments and Related Information

Note 13: 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
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Banking	$	293,431	$	246,999	$	9,704,121	$	7,656,709
Remittance Processing		8,992		8,992		43,138		39,278
Wealth Management		20,276		11,694		28,587		20,992
Other		—		—		(22,086)		(14,622)
Totals	$	322,699	$	267,685	$	9,753,760	$	7,702,357

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net interest income:
Banking	$	75,955	$	62,578	$	222,537	$	186,103
Remittance Processing		20		17		56		49
Wealth Management		—		110		—		304
Other		(2,499)		(1,931)		(7,306)		(5,553)
Total net interest income	$	73,476	$	60,774	$	215,287	$	180,903
Non-interest income:
Banking	$	18,301	$	11,196	$	46,743	$	33,827
Remittance Processing		4,088		4,042		12,386		11,812
Wealth Management		8,994		7,391		27,721		23,840
Other		(447)		(776)		(2,073)		(2,338)
Total non-interest income	$	30,936	$	21,853	$	84,777	$	67,141
Non-interest expense:
Banking	$	56,593	$	37,034	$	158,659	$	116,275
Remittance Processing		2,746		2,718		8,099		7,808
Wealth Management		6,043		4,307		17,356		13,921
Other		2,739		1,870		9,190		6,270
Total non-interest expense	$	68,121	$	45,929	$	193,304	$	144,274
Income before income taxes:
Banking	$	34,252	$	35,982	$	102,582	$	99,631
Remittance Processing		1,362		1,341		4,343		4,053
Wealth Management		2,951		3,194		10,365		10,223
Other		(5,685)		(4,577)		(18,569)		(14,161)
Total income before income taxes	$	32,880	$	35,940	$	98,721	$	99,746
Net income:
Banking	$	25,731	$	26,486	$	76,837	$	73,235
Remittance Processing		972		957		3,102		2,896
Wealth Management		2,184		2,280		7,670		7,332
Other		(4,059)		(2,864)		(13,227)		(9,825)
Total net income	$	24,828	$	26,859	$	74,382	$	73,638