Business Segment Reporting

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Business Segment Reporting

8. Business Segment Reporting

The Company has strategically aligned its operations into the following three reportable segments: Commercial Banking, Institutional Banking, and Personal Banking (collectively, the Business Segments, and each, a Business Segment). The Company’s senior executive officers regularly evaluate Business Segment financial results produced by the Company’s internal reporting system in deciding how to allocate resources and assess performance for individual Business Segments. The Company’s reportable Business Segments include certain corporate overhead, technology and service costs that are allocated based on methodologies that are applied consistently between periods. For comparability purposes, amounts in all periods are based on methodologies in effect at March 31, 2024. Previously reported results have been reclassified in this Form 10-Q to conform to the Company’s current organizational structure.

The following summaries provide information about the activities of each Business Segment:

Commercial Banking serves the commercial banking and treasury management needs of the Company’s small to middle-market businesses through a variety of products and services. Such services include commercial loans, commercial real estate financing, commercial credit cards, letters of credit, loan syndication services, and consultative services. In addition, the Company’s specialty lending group offers a variety of business solutions including asset-based lending, mezzanine debt and minority equity investments. Treasury management services include depository services, account reconciliation and cash management tools such as, accounts payable and receivable solutions, electronic fund transfer and automated payments, controlled disbursements, lockbox services and remote deposit capture services.

Institutional Banking is a combination of banking services, fund services, asset management services and healthcare services provided to institutional clients. This segment also provides fixed income sales, trading and underwriting, corporate trust and escrow services, as well as institutional custody. Institutional Banking includes UMB Fund Services, which provides fund administration and accounting, investor services and transfer agency, and other services to mutual funds and alternative investment groups. Healthcare services provides healthcare payment solutions including custodial services for health savings accounts (HSAs) and private label, multipurpose debit cards to insurance carriers, third-party administrators, software companies, employers, and financial institutions.

Personal Banking combines consumer banking and wealth management services offered to clients and delivered through personal relationships and the Company’s bank branches, ATM network and internet banking. Products offered include deposit accounts, retail credit cards, private banking, installment loans, home equity lines of credit, and residential mortgages. The range of client services extends from a basic checking account to estate planning and trust services and includes private banking, brokerage services, and insurance services in addition to a full spectrum of investment advisory, trust, and custody services.

Business Segment Information

Business Segment financial results for the three months ended March 31, 2024 and March 31, 2023 were as follows (in thousands):

	Three Months Ended March 31, 2024
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	157,247	$	49,860	$	32,327		$	239,434
Provision for credit losses		7,520		479		2,001			10,000
Noninterest income		42,966		92,716		23,562			159,244
Noninterest expense		92,420		100,376		62,008			254,804
Income (loss) before taxes		100,273		41,721		(8,120	)		133,874
Income tax expense (benefit)		17,223		7,656		(1,263	)		23,616
Net income (loss)	$	83,050	$	34,065	$	(6,857	)	$	110,258
Average assets	$	21,488,000	$	13,589,000	$	6,940,000		$	42,017,000

	Three Months Ended March 31, 2023
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	151,027	$	55,085	$	35,584		$	241,696
Provision for credit losses		21,045		96		2,109			23,250
Noninterest income		22,902		84,238		23,060			130,200
Noninterest expense		84,002		89,372		63,678			237,052
Income (loss) before taxes		68,882		49,855		(7,143	)		111,594
Income tax expense (benefit)		11,646		8,504		(993	)		19,157
Net income (loss)	$	57,236	$	41,351	$	(6,150	)	$	92,437
Average assets	$	19,521,000	$	12,443,000	$	6,539,000		$	38,503,000