Operating Segments and Related Information

6 Months Ended

Jun. 30, 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
	June 30, 2020		December 31, 2019		June 30, 2020		December 31, 2019
Banking	$	288,436	$	288,436	$	10,765,956	$	9,632,368
Remittance Processing		8,992		8,992		45,334		44,209
Wealth Management		14,108		14,108		40,361		32,760
Other		—		—		(15,686)		(13,608)
Totals	$	311,536	$	311,536	$	10,835,965	$	9,695,729

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Net interest income:
Banking	$	73,318	$	75,944	$	144,891	$	146,582
Remittance Processing		19		18		38		36
Wealth Management		—		—		—		—
Other		(2,524)		(2,534)		(4,683)		(4,807)
Total net interest income	$	70,813	$	73,428	$	140,246	$	141,811
Non-interest income:
Banking	$	14,026	$	15,659	$	27,194	$	28,442
Remittance Processing		3,962		4,117		8,031		8,298
Wealth Management		10,310		9,594		22,019		18,727
Other		(334)		(1,474)		(1,763)		(1,626)
Total non-interest income	$	27,964	$	27,896	$	55,481	$	53,841
Non-interest expense:
Banking	$	41,659	$	56,895	$	90,174	$	102,066
Remittance Processing		3,243		2,589		6,146		5,353
Wealth Management		6,254		5,749		13,228		11,313
Other		1,912		2,787		4,034		6,451
Total non-interest expense	$	53,068	$	68,020	$	113,582	$	125,183
Income before income taxes:
Banking	$	32,794	$	32,191	$	51,804	$	68,330
Remittance Processing		738		1,546		1,923		2,981
Wealth Management		4,056		3,845		8,791		7,414
Other		(4,770)		(6,795)		(10,480)		(12,884)
Total income before income taxes	$	32,818	$	30,787	$	52,038	$	65,841
Net income:
Banking	$	25,985	$	24,441	$	40,909	$	51,106
Remittance Processing		528		1,105		1,388		2,130
Wealth Management		3,082		2,845		6,681		5,486
Other		(3,789)		(4,306)		(7,808)		(9,168)
Total net income	$	25,806	$	24,085	$	41,170	$	49,554