Business Segment Reporting

9 Months Ended

Sep. 30, 2023

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 the 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. For comparability purposes, amounts in all periods are based on methodologies in effect at September 30, 2023. 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 funds 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, Inc., which provides fund administration and accounting, transfer agency services, and other services to mutual fund 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, 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 and nine months ended September 30, 2023 and September 30, 2022 were as follows (in thousands):

	Three Months Ended September 30, 2023
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	148,666	$	43,133	$	30,488		$	222,287
Provision for credit losses		3,010		423		1,544			4,977
Noninterest income		23,091		86,521		23,705			133,317
Noninterest expense		81,767		87,502		62,172			231,441
Income (loss) before taxes		86,980		41,729		(9,523	)		119,186
Income tax expense (benefit)		16,311		7,866		(1,545	)		22,632
Net income (loss)	$	70,669	$	33,863	$	(7,978	)	$	96,554
Average assets	$	20,838,000	$	12,232,000	$	6,454,000		$	39,524,000

	Three Months Ended September 30, 2022
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	150,080	$	43,382	$	40,023		$	233,485
Provision for credit losses		20,156		162		1,682			22,000
Noninterest income		16,785		89,386		22,552			128,723
Noninterest expense		87,120		82,073		62,203			231,396
Income (loss) before taxes		59,589		50,533		(1,310	)		108,812
Income tax expense		12,859		7,735		228			20,822
Net income (loss)	$	46,730	$	42,798	$	(1,538	)	$	87,990
Average assets	$	17,658,000	$	11,999,000	$	6,653,000		$	36,310,000

	Nine Months Ended September 30, 2023
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	444,083	$	148,615	$	96,896		$	689,594
Provision for credit losses		35,110		754		5,363			41,227
Noninterest income		71,658		257,573		72,368			401,599
Noninterest expense		251,667		268,464		189,035			709,166
Income (loss) before taxes		228,964		136,970		(25,134	)		340,800
Income tax expense (benefit)		41,114		24,558		(3,973	)		61,699
Net income (loss)	$	187,850	$	112,412	$	(21,161	)	$	279,101
Average assets	$	20,425,000	$	12,476,000	$	6,571,000		$	39,472,000

	Nine Months Ended September 30, 2022
	Commercial Banking		Institutional Banking		Personal Banking		Total
Net interest income	$	444,176	$	104,615	$	119,840	$	668,631
Provision for credit losses		25,183		402		3,315		28,900
Noninterest income		100,379		243,740		84,617		428,736
Noninterest expense		246,230		234,185		179,886		660,301
Income before taxes		273,142		113,768		21,256		408,166
Income tax expense		52,001		22,353		2,303		76,657
Net income	$	221,141	$	91,415	$	18,953	$	331,509
Average assets	$	17,122,000	$	13,396,000	$	7,148,000	$	37,666,000