Operating Segments and Related Information

3 Months Ended

Mar. 31, 2020

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, the 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 “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
	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
Banking	$	288,436	$	288,436	$	9,654,171	$	9,632,368
Remittance Processing		8,992		8,992		44,744		44,209
Wealth Management		14,108		14,108		36,204		32,760
Other		—		—		(13,714)		(13,608)
Totals	$	311,536	$	311,536	$	9,721,405	$	9,695,729

	Three Months Ended March 31,
	2020		2019
Net interest income:
Banking	$	71,573	$	70,638
Remittance Processing		19		18
Wealth Management		—		—
Other		(2,159)		(2,273)
Total net interest income	$	69,433	$	68,383
Non-interest income:
Banking	$	13,168	$	12,783
Remittance Processing		4,069		4,181
Wealth Management		11,709		9,133
Other		(1,429)		(152)
Total non-interest income	$	27,517	$	25,945
Non-interest expense:
Banking	$	48,515	$	45,171
Remittance Processing		2,903		2,764
Wealth Management		6,974		5,564
Other		2,122		3,664
Total non-interest expense	$	60,514	$	57,163
Income before income taxes:
Banking	$	19,010	$	36,139
Remittance Processing		1,185		1,435
Wealth Management		4,735		3,569
Other		(5,710)		(6,089)
Total income before income taxes	$	19,220	$	35,054
Net income:
Banking	$	14,924	$	26,665
Remittance Processing		860		1,025
Wealth Management		3,599		2,641
Other		(4,019)		(4,862)
Total net income	$	15,364	$	25,469