Business Segment Reporting

3 Months Ended

Mar. 31, 2022

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 March 31, 2022.  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, 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 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, 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, 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

Business Segment financial results for the three months ended March 31, 2022 and March 31, 2021 were as follows (in thousands):

	Three Months Ended March 31, 2022
	Commercial Banking			Institutional Banking		Personal Banking		Total
Net interest income	$	145,002		$	26,253	$	39,100	$	210,355
Provision for credit losses		(7,040	)		151		389		(6,500	)
Noninterest income		26,707			73,262		23,709		123,678
Noninterest expense		79,596			75,592		59,590		214,778
Income before taxes		99,153			23,772		2,830		125,755
Income tax expense		15,606			3,741		445		19,792
Net income	$	83,547		$	20,031	$	2,385	$	105,963
Average assets	$	16,827,000		$	14,677,000	$	7,650,000	$	39,154,000

	Three Months Ended March 31, 2021
	Commercial Banking			Institutional Banking		Personal Banking		Total
Net interest income	$	136,410		$	22,138	$	35,567	$	194,115
Provision for credit losses		(8,178	)		220		458		(7,500	)
Noninterest income		8,176			68,421		32,300		108,897
Noninterest expense		69,725			71,282		59,939		200,946
Income before taxes		83,039			19,057		7,470		109,566
Income tax expense		12,826			2,943		1,154		16,923
Net income	$	70,213		$	16,114	$	6,316	$	92,643
Average assets	$	14,204,000		$	11,603,000	$	7,245,000	$	33,052,000