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Business Segment Reporting
 3 Months Ended
Mar. 31, 2026
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). These segments reflect the type of customer served, how products and services are provided, how executive management responsibilities are assigned, and reflect the manner in which financial information is evaluated by the chief operating decision maker (CODM). The Company’s CODM is comprised of a group of senior executive officers led by the Company’s chief executive officer, chief administrative officer, chief financial officer, and the Bank’s chief executive officer.

Business Segment financial information is produced using an internal reporting system which is based on a series of management estimates for funds transfer pricing (FTP), and allocations of noninterest expense and income taxes. The process for determining FTP is based on a number of factors and assumptions, including prevailing market interest rates, the expected lives of various assets and liabilities, and the Company’s broader funding profile. These estimates and allocations are periodically reviewed and refined. The CODM uses the Business Segment net income in deciding how to allocate resources and assess performance for individual Business Segments, including evaluating the cost or opportunity value of funds within each Business Segment and identifying areas of focus for organic growth or acquisition. For comparability purposes, amounts in all periods are based on methodologies in effect at March 31, 2026. 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 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 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 UMB Fund Services, which provides fund administration and accounting, investor services and transfer agency, and other services to mutual funds 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, private banking, 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 months ended March 31, 2026 and March 31, 2025 were as follows (in thousands):

 

 

 

Three Months Ended March 31, 2026

 

 

 

Commercial Banking

 

 

Institutional Banking

 

 

Personal Banking

 

 

Total

 

Net interest income

 

$

365,342

 

 

$

77,287

 

 

$

91,737

 

 

$

534,366

 

Provision for credit losses

 

 

23,777

 

 

 

497

 

 

 

2,726

 

 

 

27,000

 

Noninterest income

 

 

46,289

 

 

 

121,829

 

 

 

36,675

 

 

 

204,793

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

56,426

 

 

 

50,637

 

 

 

39,924

 

 

 

146,987

 

Processing fees

 

 

4,028

 

 

 

10,670

 

 

 

4,382

 

 

 

19,080

 

Bankcard

 

 

2,848

 

 

 

6,512

 

 

 

2,510

 

 

 

11,870

 

Amortization of other intangible assets

 

 

—

 

 

 

1,972

 

 

 

75

 

 

 

2,047

 

Allocated technology, service, overhead

 

 

85,636

 

 

 

33,876

 

 

 

44,404

 

 

 

163,916

 

Other segment items*

 

 

16,514

 

 

 

9,264

 

 

 

11,205

 

 

 

36,983

 

Noninterest expense

 

 

165,452

 

 

 

112,931

 

 

 

102,500

 

 

 

380,883

 

Income before taxes

 

 

222,402

 

 

 

85,688

 

 

 

23,186

 

 

 

331,276

 

Income tax expense

 

 

46,886

 

 

 

18,064

 

 

 

4,888

 

 

 

69,838

 

Net income

 

$

175,516

 

 

$

67,624

 

 

$

18,298

 

 

$

261,438

 

Average assets

 

$

34,938,000

 

 

$

21,498,000

 

 

$

13,992,000

 

 

$

70,428,000

 

*Other segment items include occupancy, equipment, supplies and services, marketing and business development costs, legal and consulting, and regulatory fees.

 

 

 

Three Months Ended March 31, 2025

 

 

 

Commercial Banking

 

 

Institutional Banking

 

 

Personal Banking

 

 

Total

 

Net interest income

 

$

273,916

 

 

$

61,159

 

 

$

62,564

 

 

$

397,639

 

Provision for credit losses

 

 

66,751

 

 

 

435

 

 

 

18,814

 

 

 

86,000

 

Noninterest income

 

 

37,218

 

 

 

103,797

 

 

 

25,183

 

 

 

166,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

53,586

 

 

 

47,186

 

 

 

35,999

 

 

 

136,771

 

Processing fees

 

 

3,664

 

 

 

10,649

 

 

 

4,443

 

 

 

18,756

 

Bankcard

 

 

3,173

 

 

 

6,037

 

 

 

3,585

 

 

 

12,795

 

Amortization of other intangible assets

 

 

—

 

 

 

1,786

 

 

 

103

 

 

 

1,889

 

Allocated technology, service, overhead

 

 

101,125

 

 

 

32,245

 

 

 

52,464

 

 

 

185,834

 

Other segment items*

 

 

11,463

 

 

 

9,365

 

 

 

7,914

 

 

 

28,742

 

Noninterest expense

 

 

173,011

 

 

 

107,268

 

 

 

104,508

 

 

 

384,787

 

Income (loss) before taxes

 

 

71,372

 

 

 

57,253

 

 

 

(35,575

)

 

 

93,050

 

Income tax expense (benefit)

 

 

8,987

 

 

 

7,210

 

 

 

(4,480

)

 

 

11,717

 

Net income (loss)

 

$

62,385

 

 

$

50,043

 

 

$

(31,095

)

 

$

81,333

 

Average assets

 

$

30,029,000

 

 

$

18,324,000

 

 

$

11,624,000

 

 

$

59,977,000