BUSINESS SEGMENT REPORTING

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

BUSINESS SEGMENT REPORTING

12. 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. Prior to 2020, the Company had the following four Business Segments:  Commercial Banking, Institutional Banking, Personal Banking, and Healthcare Services. In the first quarter of 2020, the Company merged the Healthcare Services segment into the Institutional Banking segment to better reflect how the core businesses, products and services are currently being evaluated by management.  The Company’s Healthcare Services leadership structure and financial performance assessments are now included in the Institutional Banking segment, and accordingly, the reportable segments were realigned to reflect these changes. 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 December 31, 2020. Previously reported results have been reclassified in this filing to conform to the current organizational structure.

The following summaries provide information about the activities of each segment:

Commercial Banking serves the commercial banking and treasury management needs of the Company’s small to mid-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, consultative services.  In addition, our specialty lending group offers a variety of business solutions including asset-based lending, accounts receivable financing, 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 UMBFS, which provides fund administration and accounting, investor services and transfer agency, marketing and distribution, custody, and alternative investment services.  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, residential mortgages, and small business loans.  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

Segment financial results were as follows (in thousands):

	Year Ended December 31, 2020
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	475,425	$	106,856	$	148,948		$	731,229
Provision for credit losses		119,424		882		10,194			130,500
Noninterest income		189,412		254,874		115,880			560,166
Noninterest expense		272,283		286,635		263,087			822,005
Income (loss) before taxes		273,130		74,213		(8,453	)		338,890
Income tax expense (benefit)		42,223		11,472		(1,307	)		52,388
Income (loss) from continuing operations	$	230,907	$	62,741	$	(7,146	)	$	286,502
Average assets	$	12,614,000	$	9,746,000	$	6,208,000		$	28,568,000

	Year Ended December 31, 2019
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	412,232	$	126,591	$	132,082		$	670,905
Provision for credit losses		26,159		975		5,716			32,850
Noninterest income		81,609		232,444		112,717			426,770
Noninterest expense		267,345		268,423		243,092			778,860
Income (loss) before taxes		200,337		89,637		(4,009	)		285,965
Income tax expense (benefit)		29,679		13,280		(594	)		42,365
Income (loss) from continuing operations	$	170,658	$	76,357	$	(3,415	)	$	243,600
Average assets	$	10,740,000	$	7,714,000	$	5,331,000		$	23,785,000

	Year Ended December 31, 2018
	Commercial Banking		Institutional Banking		Personal Banking		Total
Net interest income	$	380,266	$	105,135	$	125,045	$	610,446
Provision for credit losses		63,841		1,335		5,574		70,750
Noninterest income		74,931		208,423		118,344		401,698
Noninterest expense		253,740		238,654		225,406		717,800
Income before taxes		137,616		73,569		12,409		223,594
Income tax expense		16,824		8,993		1,517		27,334
Income from continuing operations	$	120,792	$	64,576	$	10,892	$	196,260
Average assets	$	9,858,000	$	6,184,000	$	4,958,000	$	21,000,000