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Business Segment Information | 6 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
Business Segment Information | Business Segment Information The Company’s reportable business segments are: Private Banks – Provides outsourced investment processing and investment management platforms to banks and trust institutions, independent wealth advisers, and financial advisors worldwide; Investment Advisors – Provides investment management and investment processing platforms to affluent investors through a network of independent registered investment advisors, financial planners and other investment professionals in the United States; Institutional Investors – Provides Outsourced Chief Investment Officer solutions, including investment management and administrative outsourcing platforms to retirement plan sponsors, healthcare systems, higher education and other not-for-profit organizations worldwide; Investment Managers – Provides investment operations outsourcing platforms to fund companies, banking institutions, traditional and non-traditional investment managers worldwide; and Investments in New Businesses – Focuses on providing investment management solutions to ultra-high-net-worth families residing in the United States, hosted technology services to family offices and financial institutions; developing network and data protection services; entering new markets; and conducting other research and development activities. The information in the following tables is derived from internal financial reporting used for corporate management purposes. There are no inter-segment revenues for the three and six months ended June 30, 2024 and 2023. Assets are not allocated to segments for internal reporting purposes. The accounting policies of the reportable business segments are the same as those described in Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. During the first quarter 2024 and made effective January 1, 2024, the Company made a determination to reorganize some of its business segments based on how its current Chief Operating Decision Maker (CODM) manages its businesses, including with respect to resource allocation and performance assessment. As a result, one of the Company's client relationships formerly reported in the Private Banks segment will be reported in the Investment Managers segment and the Company’s family office services business, formerly reported in the Investment Managers segment, will be reported in the Investments in New Businesses segment. The business segment financial presentation was reclassified in 2024 to conform to this reorganization. Prior year amounts have been reclassified to conform to current year presentation. The following tables highlight certain financial information about each of the business segments for the three months ended June 30, 2024 and 2023:
| Private Banks |  | Investment Advisors |  | Institutional Investors |  | Investment Managers |  | Investments In New Businesses |  | Total
| For the Three Months Ended June 30, 2024
Revenues | $ | 132,401 |  |  | $ | 120,587 |  |  | $ | 71,507 |  |  | $ | 179,868 |  |  | $ | 14,623 |  |  | $ | 518,986 |
Expenses | 111,890 |  |  | 68,953 |  |  | 38,426 |  |  | 111,287 |  |  | 18,580 |  |  | 349,136 |
Operating profit (loss) | $ | 20,511 |  |  | $ | 51,634 |  |  | $ | 33,081 |  |  | $ | 68,581 |  |  | $ | (3,957) |  |  | $ | 169,850 |
| Private Banks |  | Investment Advisors |  | Institutional Investors |  | Investment Managers |  | Investments In New Businesses |  | Total
| For the Three Months Ended June 30, 2023
Revenues | $ | 132,414 |  |  | $ | 109,580 |  |  | $ | 75,145 |  |  | $ | 159,204 |  |  | $ | 12,714 |  |  | $ | 489,057 |
Expenses | 114,165 |  |  | 64,178 |  |  | 45,516 |  |  | 103,213 |  |  | 17,015 |  |  | 344,087 |
Operating profit (loss) | $ | 18,249 |  |  | $ | 45,402 |  |  | $ | 29,629 |  |  | $ | 55,991 |  |  | $ | (4,301) |  |  | $ | 144,970 |
A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the three months ended June 30, 2024 and 2023 is as follows:
| 2024 |  | 2023
Total operating profit from segments | $ | 169,850 |  |  | $ | 144,970 |
Corporate overhead expenses | (33,336) |  |  | (32,369) |
Income from operations | $ | 136,514 |  |  | $ | 112,601 |
The following tables provide additional information for the three months ended June 30, 2024 and 2023 pertaining to the business segments:
| Capital Expenditures (1) |  | Depreciation
| 2024 |  | 2023 |  | 2024 |  | 2023
Private Banks | $ | 4,586 |  |  | $ | 8,001 |  |  | $ | 2,832 |  |  | $ | 5,450 |
Investment Advisors | 1,987 |  |  | 3,615 |  |  | 2,190 |  |  | 549 |
Institutional Investors | 730 |  |  | 457 |  |  | 598 |  |  | 303 |
Investment Managers | 6,389 |  |  | 2,592 |  |  | 1,636 |  |  | 2,049 |
Investments in New Businesses | 173 |  |  | 202 |  |  | 170 |  |  | 224 |
Total from business segments | $ | 13,865 |  |  | $ | 14,867 |  |  | $ | 7,426 |  |  | $ | 8,575 |
Corporate overhead | 265 |  |  | 362 |  |  | 941 |  |  | 206 |
| $ | 14,130 |  |  | $ | 15,229 |  |  | $ | 8,367 |  |  | $ | 8,781 |
(1) Capital expenditures include additions to property and equipment and capitalized software.
| Amortization
| 2024 |  | 2023
Private Banks | $ | 5,089 |  |  | $ | 4,718 |
Investment Advisors | 2,148 |  |  | 1,945 |
Institutional Investors | 1,876 |  |  | 1,829 |
Investment Managers | 81 |  |  | 181 |
Investments in New Businesses | 1,183 |  |  | 892 |
Total from business segments | $ | 10,377 |  |  | $ | 9,565 |
Corporate overhead | 108 |  |  | 65 |
| $ | 10,485 |  |  | $ | 9,630 |
The following tables highlight certain financial information about each of business segment for the six months ended June 30, 2024 and 2023:
| Private Banks |  | Investment Advisors |  | Institutional Investors |  | Investment Managers |  | Investments In New Businesses |  | Total
| For the Six Months Ended June 30, 2024
Revenues | $ | 262,538 |  |  | $ | 243,305 |  |  | $ | 143,285 |  |  | $ | 352,521 |  |  | $ | 28,916 |  |  | $ | 1,030,565 |
Expenses | 224,864 |  |  | 135,911 |  |  | 78,535 |  |  | 220,837 |  |  | 36,963 |  |  | 697,110 |
Operating profit (loss) | $ | 37,674 |  |  | $ | 107,394 |  |  | $ | 64,750 |  |  | $ | 131,684 |  |  | $ | (8,047) |  |  | $ | 333,455 |
| Private Banks |  | Investment Advisors |  | Institutional Investors |  | Investment Managers |  | Investments In New Businesses |  | Total
| For the Six Months Ended June 30, 2023
Revenues | $ | 253,316 |  |  | $ | 216,118 |  |  | $ | 149,435 |  |  | $ | 313,701 |  |  | $ | 25,606 |  |  | $ | 958,176 |
Expenses | 226,627 |  |  | 127,724 |  |  | 86,384 |  |  | 204,898 |  |  | 34,654 |  |  | 680,287 |
Operating profit (loss) | $ | 26,689 |  |  | $ | 88,394 |  |  | $ | 63,051 |  |  | $ | 108,803 |  |  | $ | (9,048) |  |  | $ | 277,889 |
A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the six months ended June 30, 2024 and 2023:
| 2024 |  | 2023
Total operating profit from segments | $ | 333,455 |  |  | $ | 277,889 |
Corporate overhead expenses | (71,090) |  |  | (63,521) |
Income from operations | $ | 262,365 |  |  | $ | 214,368 |
The following tables provide additional information for the six months ended June 30, 2024 and 2023:
| Capital Expenditures (2) |  | Depreciation
| 2024 |  | 2023 |  | 2024 |  | 2023
Private Banks | $ | 11,018 |  |  | $ | 17,072 |  |  | $ | 5,736 |  |  | $ | 10,804 |
Investment Advisors | 5,152 |  |  | 7,954 |  |  | 4,371 |  |  | 1,017 |
Institutional Investors | 1,849 |  |  | 1,105 |  |  | 1,202 |  |  | 585 |
Investment Managers | 14,064 |  |  | 7,158 |  |  | 3,215 |  |  | 4,041 |
Investments in New Businesses | 589 |  |  | 584 |  |  | 342 |  |  | 455 |
Total from business segments | $ | 32,672 |  |  | $ | 33,873 |  |  | $ | 14,866 |  |  | $ | 16,902 |
Corporate Overhead | 807 |  |  | 977 |  |  | 1,890 |  |  | 410 |
| $ | 33,479 |  |  | $ | 34,850 |  |  | $ | 16,756 |  |  | $ | 17,312 |
(2) Capital expenditures include additions to property and equipment and capitalized software.
| Amortization
| 2024 |  | 2023
Private Banks | $ | 10,200 |  |  | $ | 9,364 |
Investment Advisors | 4,270 |  |  | 3,763 |
Institutional Investors | 3,768 |  |  | 3,653 |
Investment Managers | 81 |  |  | 358 |
Investments in New Businesses | 2,365 |  |  | 1,787 |
Total from business segments | $ | 20,684 |  |  | $ | 18,925 |
Corporate Overhead | 187 |  |  | 129 |
| $ | 20,871 |  |  | $ | 19,054 |

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- Definition The entire disclosure for reporting segments including data and tables. 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