Business Segment Reporting

6 Months Ended

Jun. 30, 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 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 June 30, 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 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 six months ended June 30, 2024 and June 30, 2023 were as follows (in thousands):

	Three Months Ended June 30, 2024
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	160,487	$	51,502	$	33,119		$	245,108
Provision for credit losses		11,480		846		1,724			14,050
Noninterest income		27,720		95,092		22,107			144,919
Noninterest expense		85,780		95,531		67,756			249,067
Income (loss) before taxes		90,947		50,217		(14,254	)		126,910
Income tax expense (benefit)		17,858		9,297		(1,590	)		25,565
Net income (loss)	$	73,089	$	40,920	$	(12,664	)	$	101,345
Average assets	$	21,153,000	$	14,367,000	$	6,956,000		$	42,476,000

	Three Months Ended June 30, 2023
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	144,389	$	50,397	$	30,825		$	225,611
Provision for credit losses		11,055		234		1,711			13,000
Noninterest income		25,666		86,813		25,603			138,082
Noninterest expense		85,896		91,591		63,186			240,673
Income (loss) before taxes		73,104		45,385		(8,469	)		110,020
Income tax expense (benefit)		12,996		8,011		(1,097	)		19,910
Net income (loss)	$	60,108	$	37,374	$	(7,372	)	$	90,110
Average assets	$	20,888,000	$	12,756,000	$	6,721,000		$	40,365,000

	Six Months Ended June 30, 2024
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	317,734	$	101,362	$	65,446		$	484,542
Provision for credit losses		19,000		1,325		3,725			24,050
Noninterest income		70,686		187,808		45,669			304,163
Noninterest expense		178,199		195,907		129,765			503,871
Income (loss) before taxes		191,221		91,938		(22,375	)		260,784
Income tax expense (benefit)		35,153		16,828		(2,800	)		49,181
Net income (loss)	$	156,068	$	75,110	$	(19,575	)	$	211,603
Average assets	$	21,314,000	$	13,984,000	$	6,948,000		$	42,246,000

	Six Months Ended June 30, 2023
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	295,416	$	105,482	$	66,409		$	467,307
Provision for credit losses		32,099		331		3,820			36,250
Noninterest income		48,568		171,051		48,663			268,282
Noninterest expense		169,900		180,962		126,863			477,725
Income (loss) before taxes		141,985		95,240		(15,611	)		221,614
Income tax expense (benefit)		24,638		16,523		(2,094	)		39,067
Net income (loss)	$	117,347	$	78,717	$	(13,517	)	$	182,547
Average assets	$	20,209,000	$	12,603,000	$	6,631,000		$	39,443,000