Operating Segments and Related Information

12 Months Ended

Dec. 31, 2019

Operating Segments and Related Information

Operating Segments and Related Information

Note 21. 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 “Note 1. Significant Accounting Policies”. 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
	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018
Banking	$	288,436	$	246,999	$	9,632,368	$	7,656,709
Remittance Processing		8,992		8,992		44,209		39,278
Wealth Management		14,108		11,694		32,760		20,992
Other		—		—		(13,608)		(14,622)
Totals	$	311,536	$	267,685	$	9,695,729	$	7,702,357

	Years ended December 31,
	2019		2018		2017
Net interest income:
Banking	$	296,754	$	248,291	$	208,184
Remittance Processing		76		67		60
Wealth Management		—		327		321
Other		(9,607)		(7,279)		(5,199)
Total net interest income	$	287,223	$	241,406	$	203,366
Non-interest income:
Banking	$	63,613	$	43,197	$	47,524
Remittance Processing		16,450		15,876		12,137
Wealth Management		39,075		31,621		27,270
Other		(2,723)		(701)		(2,457)
Total non-interest income	$	116,415	$	89,993	$	84,474
Non-interest expense:
Banking	$	211,559	$	154,455	$	139,521
Remittance Processing		10,990		10,749		8,704
Wealth Management		24,534		19,283		17,079
Other		11,711		8,556		9,122
Total non-interest expense	$	258,794	$	193,043	$	174,426
Income before income taxes:
Banking	$	138,401	$	132,604	$	110,884
Remittance Processing		5,536		5,194		3,493
Wealth Management		14,541		12,665		10,512
Other		(24,040)		(16,536)		(16,778)
Total income before income taxes	$	134,438	$	133,927	$	108,111
Net income:
Banking	$	106,409	$	97,369	$	65,704
Remittance Processing		4,060		3,710		2,007
Wealth Management		11,135		9,372		6,229
Other		(18,651)		(11,523)		(11,214)
Total net income	$	102,953	$	98,928	$	62,726