Operating Segments and Related Information

6 Months Ended

Jun. 30, 2022

Operating Segments and Related Information

Operating Segments and Related Information

Note 14:  Operating Segments and Related Information

The Company has three reportable operating segments:  Banking, FirsTech, and Wealth Management.  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 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 Indianapolis, Indiana.  The FirsTech operating segment provides solutions for online, mobile, and voice-recognition bill payments; lockbox; and walk-in payments.  The Wealth Management operating segment provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations.

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” in the Company’s 2021 Annual Report.  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.  The “other” category included in the tables below consists of the parent company, First Busey Risk Management, and the elimination of intercompany transactions (dollars in thousands):

	Goodwill				Total Assets
	As of				As of
	June 30,		December 31,		June 30,		December 31,
	2022		2021		2022		2021
Operating segment
Banking	$	294,773	$	294,773	$	12,226,414	$	12,746,833
FirsTech		8,992		8,992		47,209		47,481
Wealth Management		14,108		14,108		75,985		65,587
Other		—		—		6,825		(212)
Consolidated total	$	317,873	$	317,873	$	12,356,433	$	12,859,689

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net interest income
Banking	$	80,072	$	68,250	$	153,904	$	136,705
FirsTech		17		21		35		41
Other		(4,161)		(3,729)		(7,955)		(7,311)
Total net interest income	$	75,928	$	64,542	$	145,984	$	129,435
Noninterest income
Banking	$	13,982	$	14,938	$	29,268	$	27,822
FirsTech		5,336		4,809		10,755		9,670
Wealth Management		14,135		13,000		29,911		25,587
Other		(2,434)		264		(3,143)		1,377
Total noninterest income	$	31,019	$	33,011	$	66,791	$	64,456
Noninterest expense
Banking	$	54,380	$	48,421	$	109,947	$	90,512
FirsTech		4,809		4,277		9,492		8,567
Wealth Management		7,586		6,717		15,851		13,282
Other		2,317		3,210		4,178		4,763
Total noninterest expense	$	69,092	$	62,625	$	139,468	$	117,124
Income before income taxes
Banking	$	38,021	$	36,467	$	71,825	$	82,511
FirsTech		544		553		1,298		1,144
Wealth Management		6,549		6,283		14,060		12,305
Other		(8,912)		(6,675)		(15,276)		(10,697)
Total income before income taxes	$	36,202	$	36,628	$	71,907	$	85,263
Net income
Banking	$	30,499	$	29,238	$	56,950	$	64,766
FirsTech		397		401		947		830
Wealth Management		5,092		4,884		10,932		9,566
Other		(6,164)		(4,757)		(10,566)		(7,580)
Total net income	$	29,824	$	29,766	$	58,263	$	67,582