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UMB Financial Corporation Reports Third Quarter 2015 Earnings of $22.5 Million, or $0.46 Per Diluted Share

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KANSAS CITY, Mo.--(BUSINESS WIRE)--

UMB Financial Corporation (Nasdaq: UMBF), a diversified financial holding company, announced earnings for the three months ended September 30, 2015 of $22.5 million or $0.46 per share ($0.46 diluted). This is a decrease of $13.2 million, or 37.0 percent, compared to third quarter 2014 earnings of $35.6 million or $0.79 per share ($0.78 diluted). Earnings for the nine months ended September 30, 2015, were $86.4 million or $1.85 per share ($1.84 diluted). This is a decrease of $7.3 million, or 7.8 percent, compared to the earnings for the nine months ended September 30, 2014 of $93.7 million or $2.09 per share ($2.06 diluted).

"The third quarter results are driven by three primary factors — improved net interest income due to increased loan balances and yields, a decrease in noninterest income largely related to continued headwinds at Scout, and increased noninterest expense, which included Marquette integration expense of $4.5 million," said Mariner Kemper, Chairman and Chief Executive Officer. "Loan balances increased year-over-year, both with the addition of the Marquette portfolio and our continued strategy to add higher-yielding earning assets. At quarter-end, loans stood at $9.0 billion, an increase of 27.4 percent or $1.9 billion compared to a year ago. Acquired loans plus production through legacy Marquette channels comprised $1.0 billion of the increase. The remaining increase of $937.9 million was generated through legacy UMB lenders, for a year-over-year increase of 13.2 percent. I am pleased with the integration efforts and the value Marquette brings to our banking franchise."

"In addition to the $3.6 million in annualized efficiencies we announced in July, we have identified another $29.3 million in cost savings, resulting in total estimated efficiencies of $32.9 million fully annualized beginning in 2017. While these initiatives involved difficult decisions, they are the right actions to take to get us closer to our efficiency goals and to operate in a leaner, healthier way. The total does not include efficiencies that may be identified through our normal course of business. These initiatives weren't merely a project, but a continued focus on growing our businesses in the most efficient and profitable way possible," added Kemper.

Net Interest Income and Margin

Net interest income for the third quarter of 2015 increased $22.4 million, or 25.6 percent, compared to the same period in 2014. Average earning assets increased $2.3 billion, or 15.5 percent, compared to the third quarter of 2014. This increase was primarily due to a $1.9 billion, or 27.7 percent, increase in average loans. Marquette added earning assets with an acquired value of $1.3 billion on May 31, 2015. Average loans from the legacy Marquette channel totaled $1.0 billion in the third quarter 2015. Net interest margin increased 20 basis points to 2.73 percent for the three months ended September 30, 2015, compared to the same quarter in 2014.

Noninterest Income and Expense

Noninterest income decreased $17.4 million, or 13.7 percent, for the three months ended September 30, 2015, compared to the same period in 2014. This decrease is largely attributable to decreased trust and securities processing income of $8.9 million, or 12.0 percent, for the three months ended September 30, 2015, compared to the same period in 2014. The decrease in trust and securities processing income was primarily due to a $10.4 million, or 44.7 percent, decrease in advisory fee income from the Scout Funds, partially offset by an increase in fees related to institutional and personal investment management services of $1.0 million, or 3.9 percent. Equity earnings on alternative investments had an unrealized loss of $5.0 million at September 30, 2015 compared to an unrealized gain of $2.5 million at September 30, 2014. This is a year-over-year decrease of $7.5 million.

Noninterest expense increased $24.1 million, or 15.0 percent, for the three months ended September 30, 2015, compared to the same period in 2014. Salary and benefits expense increased $14.7 million, or 16.3 percent, due to increases in salaries and wages of $10.9 million, or 19.2 percent, a $5.2 million, or 27.7 percent, increase in commissions and bonuses, offset by a decrease of $1.5 million, or 10.2 percent, in employee benefits expense. Included in the increase of salaries and benefits is $10.8 million of Marquette salaries and benefits, including $1.4 million in acquisition related severances, and $0.9 million of non-Marquette severances for the three months ended September 30, 2015. Equipment expense increased $3.8 million, or 28.5 percent, due to increased computer and hardware costs related to investments for regulatory requirements, cyber security and the ongoing modernization of our core systems. Legal and consulting expense increased by $4.2 million, or 92.3 percent for the third quarter of 2015 driven by $1.9 million of Marquette acquisition expenses incurred during the third quarter of 2015. These increases were offset by a decrease in processing fees of $1.3 million, or 9.2 percent, due to decreased fees paid to distributors of the Scout Funds.

Total acquisition expenses recognized in noninterest expense during the third quarter totaled $4.5 million primarily related to $1.4 million of severance expenses included in salaries and benefits and $1.9 million of consulting expense related to core system conversions projects.

Balance Sheet

Average total assets for the three months ended September 30, 2015 were $18.1 billion compared to $15.6 billion for the same period in 2014, an increase of $2.5 billion, or 15.9 percent. Average earning assets increased by $2.3 billion for the period, or 15.5 percent.

Average loan balances for the three months ended September 30, 2015, increased $1.9 billion, or 27.7 percent, to $8.9 billion compared to the same period in 2014. Actual loan balances on September 30, 2015, were $9.0 billion, an increase of $1.9 billion, or 27.4 percent, compared to September 30, 2014. The overall actual loan increase at September 30, 2015 was driven by a $685.0 million, or 37.9 percent, increase in commercial real estate loans, a $548.1 million, or 15.5 percent, increase in commercial loans, a $218.7 million, or 100.0 percent, increase in asset-based loans, a $157.6 million, or 49.7 percent, increase in residential real estate loans, a $121.3 million, or 49.4 percent, increase in construction real estate loans, and a $106.0 million, or 100.0 percent, increase in factoring loans.

A significant driver in the increase in loans was the acquisition of Marquette and its loan portfolio. These acquired Marquette loans and loans originated through the legacy Marquette channels had an actual balance at September 30, 2015 of $1.0 billion. This total includes $318.2 million in commercial real estate loans, $218.7 million in asset-based loans, $106.0 million in factoring loans, $111.7 million in commercial loans, and $107.8 million in residential real estate loans. The remaining increase in loans of $937.9 million compared to September 30, 2014 is comprised of loans originated through the legacy UMB channels. This increase was primarily driven by an increase in commercial loans of $436.5 million and a $366.8 million increase in commercial real estate loans.

Nonperforming loans increased to $50.0 million on September 30, 2015, from $32.7 million on September 30, 2014. Nonperforming loans are defined as nonaccrual loans and restructured loans. As a percentage of loans, nonperforming loans increased to 0.55 percent as of September 30, 2015, compared to 0.46 percent on September 30, 2014. The company's allowance for loan losses totaled $78.0 million, or 0.86 percent of loans, as of September 30, 2015, compared to $77.3 million, or 1.09 percent of loans, as of September 30, 2014.

For the three months ended September 30, 2015, average securities, including trading securities, totaled $7.3 billion. This is an increase of $326.8 million, or 4.7 percent, from the same period in 2014.

Average total deposits increased $1.8 billion, or 14.6 percent, to $14.3 billion for the three months ended September 30, 2015, compared to the same period in 2014. Deposit balances from the legacy Marquette channels totaled $881.9 million at September 30, 2015. Average noninterest-bearing demand deposits increased $740.2 million, or 14.6 percent, compared to the same period in 2014. Average interest-bearing deposits increased by $1.1 billion, or 14.6 percent, in the third quarter of 2015 as compared to the same period in 2014. Total actual deposits as of September 30, 2015, were $15.1 billion, compared to $12.8 billion as of September 30, 2014, an 18.1 percent increase. Additionally, for the three months ended September 30, 2015, average noninterest-bearing demand deposits were 40.5 percent of average total deposits.

As of September 30, 2015, UMB had total shareholders' equity of $1.9 billion, an increase of 17.7 percent as compared to September 30, 2014. This increase is primarily attributable to the common stock issuance associated with the acquisition of Marquette of $179.7 million at May 31, 2015.

Year-to-Date

Earnings for the nine months ended September 30, 2015, were $86.4 million or $1.85 per share ($1.84 diluted). This is a decrease of $7.3 million, or 7.8 percent, compared to earnings for the nine months ended September 30, 2014, of $93.7 million or $2.09 per share ($2.06 diluted).

Net interest income for the nine months ended September 30, 2015, increased $38.5 million, or 14.8 percent, compared to the same period in 2014. Net interest margin increased to 2.60 percent for the nine months ended September 30, 2015, as compared to 2.48 percent for the same period in 2014.

Noninterest income decreased $29.6 million, or 7.7 percent, to $353.9 million for the nine months ended September 30, 2015, as compared to the same period in 2014. The decrease in noninterest income is primarily driven by decreased trust and securities processing income of $19.1 million, or 8.7 percent. The decrease in trust and securities processing income was primarily due to a $27.8 million, or 38.2 percent, decrease in advisory fee income from the Scout Funds, partially offset by an increase of $4.7 million, or 6.6 percent, in fees related to institutional and personal investment management services and a $2.7 million, or 4.1 percent, increase in fund administration and custody services. Equity earnings on alternative investments decreased $15.5 million compared to the same period in 2014. Other noninterest income decreased $2.3 million, or 17.7 percent, primarily due to a $2.8 million gain on the sale of a branch property during the first nine months of 2014. Gains on securities available for sale of $8.4 million were recognized in the first nine months of 2015 compared to $4.1 million for the same period in 2014, a $4.3 million increase.

Noninterest expense increased $22.4 million, or 4.5 percent, for the nine months ended September 30, 2015, compared to the same period in 2014. Salaries and employee benefits increased $34.4 million, or 12.8 percent, compared to the same period in 2014, driven by an increase in salary and wage expense of $23.1 million, or 14.1 percent, and an increase in bonus and commission expense of $10.3 million, or 18.5 percent. Marquette salary and benefits expense, including $1.4 million of Marquette-related severance, totaled $14.2 million and non-Marquette severance totaled $1.3 million for the nine months ended September 30, 2015. The increase in salaries and benefits expense was partially offset by a $20.3 million contingency reserve expense recognized in 2014 in conjunction with the settlement agreement entered into on June 30, 2014, to resolve the PCM dispute.

Acquisition expenses recognized in noninterest expense during the first nine months of 2015 totaled $6.0 million including $1.4 million of severance and $2.8 million legal and consulting fees.

Efficiency Initiatives

In July 2015, the company announced an efficiency initiative that is expected to remove an estimated $3.6 million in annualized costs. During the third quarter, an in-depth review of the organization resulted in the identification of an estimated $29.3 million in additional efficiencies. We expect to recognize the combined savings as follows: $6.8 million in 2015, $22.6 million in 2016, and $32.9 million in annualized savings in 2017 and beyond. For more detail, please see the third quarter earnings call presentation on umbfinancial.com, or at the following link: UMB Financial Presentations

Dividend Declaration

The Board of Directors declared during the company's quarterly board meeting a $0.245 quarterly cash dividend, which represents a 4.3 percent increase compared to the last quarterly dividend, payable on Jan. 4, 2016, to shareholders of record at the close of business on Dec. 10, 2015.

2016 Annual Meeting of Shareholders

As provided in the bylaws of the company, the 2016 annual meeting of the company's shareholders will be held on April 26, 2016, at 9:00 a.m. CDT, at the principal executive offices of the company located at 1010 Grand Boulevard, Kansas City, Mo.

Conference Call

The company plans to host a conference call to discuss its 2015 third quarter earnings results on Oct. 28, 2015, at 9:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 877-267-8760 or (U.S.) 412-542-4148 and requesting to join the UMB Financial call. The live call can also be accessed by visiting the investor relations area of umbfinancial.com or by using the following the link:

UMB Financial 3Q 2015 Conference Call

A replay of the conference call may be heard through Nov. 11, 2015, by calling (toll-free) 877-344-7529 or (U.S.) 412-317-0088. The replay pass code required for playback is 10073618. The call replay may also be accessed via the company's website umbfinancial.com by visiting the investor relations area.

Forward-Looking Statements:

This release contains, and our other communications may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts—such as our statements about expected cost savings and other results of efficiency initiatives and our statements about asset sensitivity. Forward-looking statements often use words such as "believe," "expect," "anticipate," "intend," "estimate," "project," "outlook," "forecast," "target," "trend," "plan," "goal," or other words of comparable meaning or future-tense or conditional verbs such as "may," "will," "should," "would," or "could." Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, results, or aspirations. All forward-looking statements are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Our actual future objectives, strategies, plans, prospects, performance, condition, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events, circumstances, or aspirations to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2014, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the SEC. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K, or other applicable document that is filed or furnished with the SEC.

About UMB:

UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors. For more information, visit umb.com, umbfinancial.com, blog.umb.com or follow us on Twitter at @UMBBank, Facebook at facebook.com/UMBBank and LinkedIn at linkedin.com/company/umb-bank.

   
Consolidated Balance Sheets       UMB Financial Corporation
(unaudited, dollars in thousands)    
September 30,

Assets

  2015         2014  
 
Loans $ 9,046,126 $ 7,103,163
Allowance for loan losses   (78,030 )       (77,316 )
Net loans   8,968,096         7,025,847  
Loans held for sale 1,013 1,718
Investment securities:
Available for sale 6,671,745 6,759,803
Held to maturity 588,478 237,961
Trading securities 23,699 31,790
Other securities   68,371         71,192  
Total investment securities   7,352,293         7,100,746  
Federal funds and resell agreements 98,762 65,255
Interest-bearing due from banks 847,077 986,428
Cash and due from banks 339,592 395,956
Bank premises and equipment, net 281,704 257,341
Accrued income 87,863 77,263
Goodwill 227,962 209,758
Other intangibles 50,065 46,966
Other assets   343,538         116,750  
Total assets $ 18,597,965       $ 16,284,028  
 
 

Liabilities

Deposits:
Noninterest-bearing demand $ 6,257,944 $ 5,467,810
Interest-bearing demand and savings 7,547,822 6,324,535
Time deposits under $100,000 465,629 434,863
Time deposits of $100,000 or more   790,164         526,229  
Total deposits   15,061,559         12,753,437  
Federal funds and repurchase agreements 1,342,600 1,711,809
Short-term debt 5,000 -
Long-term debt 83,534 7,067
Accrued expenses and taxes 168,716 161,194
Other liabilities   35,699         35,172  
Total liabilities   16,697,108         14,668,679  
 

Shareholders' Equity

Common stock 55,057 55,057
Capital surplus 1,015,383 891,353
Retained earnings 1,016,206 947,664
Accumulated other comprehensive income 26,530 1,827
Treasury stock   (212,319 )       (280,552 )
Total shareholders' equity   1,900,857         1,615,349  
Total liabilities and shareholders' equity $ 18,597,965       $ 16,284,028  
 
           
Consolidated Statements of Income                       UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)    
Three Months Ended Nine Months Ended
September 30, September 30,

Interest Income

  2015         2014         2015         2014
Loans $ 84,686 $ 61,636 $ 220,314 $ 180,845
Securities:
Taxable interest 18,498 18,884 56,469 56,866
Tax-exempt interest 11,320         9,745         31,842         29,450
Total securities income 29,818 28,629 88,311 86,316
Federal funds and resell agreements 175 87 377 166
Interest-bearing due from banks 475 426 1,761 2,015
Trading securities 75         39         303         311
Total interest income 115,229         90,817         311,066         269,653
 

Interest Expense

Deposits 3,863 3,015 10,433 9,166
Federal funds and repurchase agreements 427 358 1,389 1,293
Other 1,044         (82 )       1,631         53
Total interest expense 5,334         3,291         13,453         10,512
Net interest income 109,895 87,526 297,613 259,141
Provision for loan losses 2,500         4,500         10,500         14,000
Net interest income after provision for loan losses 107,395         83,026         287,113         245,141
 

Noninterest Income

Trust and securities processing 65,182 74,062 199,862 218,982
Trading and investment banking 2,969 3,826 14,659 14,558
Service charges on deposits 21,663 21,634 64,829 63,819
Insurance fees and commissions 480 911 1,636 2,246
Brokerage fees 2,958 3,276 8,748 8,166
Bankcard fees 17,624 17,121 51,842 49,929
Gains on sale of securities available for sale, net 101 26 8,404 4,065
Equity (loss) earnings on alternative investments (5,032 ) 2,470 (6,999 ) 8,462
Other 3,153         3,149         10,874         13,213
Total noninterest income 109,098         126,475         353,855         383,440
 

Noninterest Expense

Salaries and employee benefits 104,733 90,041 302,855 268,454
Occupancy, net 11,748 10,475 32,070 29,885
Equipment 17,228 13,408 46,810 38,991
Supplies, postage and telephone 5,371 4,817 14,299 15,008
Marketing and business development 5,766 6,057 16,914 16,966
Processing fees 12,795 14,085 38,232 42,553
Legal and consulting 8,648 4,496 18,943 12,500
Bankcard 5,266 4,097 14,987 12,782
Amortization of other intangibles 3,483 3,043 8,807 9,219
Regulatory fees 3,176 2,577 8,805 7,802
Contingency reserve - - - 20,272
Other 7,065         8,055         18,934         24,851
Total noninterest expense 185,279 161,151 521,656 499,283
 
Income before income taxes 31,214 48,350 119,312 129,298
Income tax provision 8,763         12,720         32,882         35,583
Net income $ 22,451       $ 35,630       $ 86,430       $ 93,715
 

Per Share Data

Net income - basic $ 0.46 $ 0.79 $ 1.85 $ 2.09
Net income – diluted 0.46 0.78 1.84 2.06
Dividends 0.235 0.225 0.705 0.675
Weighted average shares outstanding - basic 48,577,282 44,890,309 46,619,428 44,819,125
Weighted average shares outstanding - diluted 49,036,332 45,441,983 47,080,009 45,420,385
 
   
Consolidated Statements of Comprehensive Income     UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)          

Three Months Ended
September 30,

Nine Months Ended
September 30,

2015       2014   2015   2014  
Net Income $ 22,451 $ 35,630 $ 86,430 $ 93,715
Other comprehensive income, net of tax:
Unrealized gains (losses) on securities:
Change in unrealized holding gains (losses), net 46,166 (24,213 ) 33,289 59,156
Less: Reclassifications adjustment for gains included in net income   (101 )       (26 )       (8,404 )       (4,065 )
Change in unrealized gains (losses) on securities during the period 46,065 (24,239 ) 24,885 55,091
Income tax (expense) benefit   (17,394 )       9,165         (9,361 )       (20,624 )
Other comprehensive income (loss)   28,671         (15,074 )       15,524         34,467  
Comprehensive income $ 51,122       $ 20,556       $ 101,954       $ 128,182  
 
                       
Consolidated Statements of
Shareholders' Equity                               UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
 
 
Accumulated
Other
Common Capital Retained Comprehensive Treasury
  Stock       Surplus       Earnings       (Loss) Income       Stock       Total
Balance - January 1, 2014 $ 55,057 $ 882,407 $ 884,630 $ (32,640 ) $ (283,389 ) $ 1,506,065
Total comprehensive income - - 93,715 34,467 - 128,182
Cash dividends ($0.675 per share) - - (30,681 ) - - (30,681 )
Purchase of treasury stock - - - - (3,858 ) (3,858 )
Issuance of equity awards - (2,624 ) - - 3,114 490
Recognition of equity based compensation - 7,224 - - - 7,224
Net tax benefit related to equity compensation plans - 1,507 - - - 1,507
Sale of treasury stock - 455 - - 244 699
Exercise of stock options   -       2,384         -         -         3,337         5,721  
Balance – September 30, 2014 $ 55,057     $ 891,353       $ 947,664       $ 1,827       $ (280,552 )     $ 1,615,349  
 
Balance - January 1, 2015 $ 55,057 $ 894,602 $ 963,911 $ 11,006 $ (280,818 ) $ 1,643,758
Total comprehensive income - - 86,430 15,524 - 101,954
Cash dividends ($0.705 per share) - - (34,135 ) - - (34,135 )
Purchase of treasury stock - - - - (6,172 ) (6,172 )
Issuance of equity awards - (4,180 ) - - 4,639 459
Recognition of equity based compensation - 9,030 - - - 9,030
Net tax benefit related to equity compensation plans - 732 - - - 732
Sale of treasury stock - 475 - - 315 790
Exercise of stock options - 2,089 - - 2,615 4,704
Common stock issuance for

Acquisition

  -       112,635         -         -         67,102         179,737  
Balance – September 30, 2015 $ 55,057     $ 1,015,383       $ 1,016,206       $ 26,530       $ (212,319 )     $ 1,900,857  
 
Average Balances / Yields and Rates               UMB Financial Corporation  
(tax - equivalent basis)                
(unaudited, dollars in thousands) Three Months Ended September 30,
  2015   2014
Average Average Average Average
Assets   Balance Yield/Rate   Balance Yield/Rate
Loans, net of unearned interest $ 8,933,775 3.76 % $ 6,996,363 3.50 %
Securities:
Taxable 4,750,122 1.54 4,864,337 1.54
Tax-exempt 2,557,629   2.70 2,128,281   2.80  
Total securities 7,307,751 1.95 6,992,618 1.92
Federal funds and resell agreements 83,048 0.84 61,161 0.56
Interest-bearing due from banks 481,575 0.39 501,157 0.34
Trading securities 36,171   1.04 24,550   0.95  
Total earning assets 16,842,320 2.86 14,575,849 2.62
Allowance for loan losses (78,419 ) (77,347 )
Other assets   1,356,548     1,139,820  
Total assets $ 18,120,449   $ 15,638,322  
 
 
Liabilities and Shareholders' Equity
Interest-bearing deposits $ 8,532,814 0.18 % $ 7,444,093 0.16 %
Federal funds and repurchase agreements 1,634,394 0.10 1,347,665 0.11
Borrowed funds 88,468   4.68 5,728   (5.68 )
Total interest-bearing liabilities 10,255,676 0.21 8,797,486 0.15
Noninterest-bearing demand deposits 5,800,870 5,060,662
Other liabilities 176,040 167,704
Shareholders' equity   1,887,863     1,612,470  
Total liabilities and shareholders' equity $ 18,120,449   $ 15,638,322  
Net interest spread 2.65 % 2.47 %
Net interest margin 2.73 2.53
 
 
Nine Months Ended September 30,
  2015   2014
Average Average Average Average
Assets   Balance Yield/Rate   Balance Yield/Rate
Loans, net of unearned interest $ 8,163,984 3.61 % $ 6,858,874 3.53 %
Securities:
Taxable 4,864,016 1.55 4,862,439 1.56
Tax-exempt 2,407,653   2.72 2,114,251   2.87  
Total securities 7,271,669 1.94 6,976,690 1.96
Federal funds and resell agreements 62,326 0.81 40,461 0.55
Interest-bearing due from banks 665,667 0.35 934,532 0.29
Trading securities 34,507   1.51 33,257   1.46  
Total earning assets 16,198,153 2.71 14,843,814 2.57
Allowance for loan losses (77,560 ) (76,100 )
Other assets   1,339,262     1,153,074  
Total assets $ 17,459,855   $ 15,920,788  
 
 
Liabilities and Shareholders' Equity
Interest-bearing deposits $ 8,023,331 0.17 % $ 7,511,115 0.16 %
Federal funds and repurchase agreements 1,686,766 0.11 1,534,966 0.11
Borrowed funds 49,169   4.43 5,735   1.24  
Total interest-bearing liabilities 9,759,266 0.18 9,051,816 0.16
Noninterest-bearing demand deposits 5,655,878 5,126,660
Other liabilities 274,845 160,140
Shareholders' equity   1,769,866     1,582,172  
Total liabilities and shareholders' equity $ 17,459,855   $ 15,920,788  
Net interest spread 2.53 % 2.41 %
Net interest margin 2.60 2.48
 
               
THIRD QUARTER 2015
FINANCIAL HIGHLIGHTS       UMB Financial Corporation
(unaudited, dollars in thousands, except share and per share data)
 
Nine Months Ended September 30       2015               2014    
Net interest income $ 297,613 $ 259,141
Provision for loan losses 10,500 14,000
Noninterest income 353,855 383,440
Noninterest expense 521,656 499,283
Income before income taxes 119,312 129,298
Net income 86,430 93,715
Net income per share - Basic 1.85 2.09
Net income per share - Diluted 1.84 2.06
Return on average assets 0.66 % 0.79 %
Return on average equity 6.53 % 7.92 %
 
Three Months Ended September 30
Net interest income $ 109,895 $ 87,526
Provision for loan losses 2,500 4,500
Noninterest income 109,098 126,475
Noninterest expense 185,279 161,151
Income before income taxes 31,214 48,350
Net income 22,451 35,630
Net income per share - Basic 0.46 0.79
Net income per share - Diluted 0.46 0.78
Return on average assets 0.49 % 0.90 %
Return on average equity 4.72 % 8.77 %
 
At September 30
Assets $ 18,597,965 $ 16,284,028
Loans, net of unearned interest 9,046,126 7,103,163
Securities 7,352,293 7,100,746
Deposits 15,061,559 12,753,437
Shareholders' equity 1,900,857 1,615,349
Book value per share 38.56 35.51
Market price per share 50.81 54.55
Equity to assets 10.22 % 9.92 %
Allowance for loan losses $ 78,030 $ 77,316
As a % of loans 0.86 % 1.09 %
Nonaccrual and restructured loans $ 49,955 $ 32,662
As a % of loans 0.55 % 0.46 %
Loans over 90 days past due $ 2,552 $ 4,678
As a % of loans 0.03 % 0.07 %
Other real estate owned $ 2,586 $ 1,369
Net loan charge-offs quarter-to-date $ 2,192 $ 3,985
As a % of average loans 0.10 % 0.23 %
Net loan charge-offs year-to-date $ 8,611 $ 11,434
As a % of average loans 0.14 % 0.22 %
 
Common shares outstanding 49,296,991 45,485,313
 
Average Balances
Nine Months Ended September 30
Assets $ 17,459,855 $ 15,920,788
Loans, net of unearned interest 8,163,984 6,858,874
Securities 7,306,176 7,009,947
Deposits 13,679,209 12,637,775
Shareholders' equity 1,769,866 1,582,172
 
 
Business Segment Information UMB Financial Corporation
(unaudited, dollars in thousands)    
    Three Months Ended September 30, 2015
Bank    

Payment

Solutions

   

Institutional
Investment
Management

   

Asset
Servicing

      Total
Net interest income $ 93,960     $ 14,627     $ -     $ 1,308 $ 109,895
Provision for loan losses 1,333 1,167 - - 2,500
Noninterest income 42,999 22,038 21,449 22,612 109,098
Noninterest expense   122,165       27,053       16,512       19,549       185,279
Income before taxes 13,461 8,445 4,937 4,371 31,214
Income tax expense   3,731       2,393       1,408       1,231       8,763
Net income $ 9,730     $ 6,052     $ 3,529     $ 3,140     $ 22,451
 
Average assets $ 14,120,000 $ 2,943,000 $ 66,000 $ 991,000 $ 18,120,000
 
 
Three Months Ended September 30, 2014
Bank    

Payment
Solutions

   

Institutional
Investment
Management

   

Asset
Servicing

      Total
Net interest income $ 72,893 $ 13,469 $ - $ 1,164 $ 87,526
Provision for loan losses 2,446 2,054 - - 4,500
Noninterest income 48,385 21,579 33,919 22,592 126,475
Noninterest expense   99,084       21,995       20,913       19,159       161,151
Income before taxes 19,748 10,999 13,006 4,597 48,350
Income tax expense   5,364       2,818       3,350       1,188       12,720
Net income $ 14,384     $ 8,181     $ 9,656     $ 3,409     $ 35,630
 
Average assets $ 11,752,000 $ 2,744,000 $ 72,000 $ 1,070,000 $ 15,638,000
 
   
Nine Months Ended September 30, 2015
Bank    

Payment
Solutions

   

Institutional
Investment
Management

   

Asset
Servicing

      Total
Net interest income $ 252,044     $ 42,260     $ 1     $ 3,308     $ 297,613
Provision for loan losses 5,545 4,955 - - 10,500
Noninterest income 142,099 68,469 74,217 69,070 353,855
Noninterest expense   329,951       78,131       52,768       60,806       521,656
Income before taxes 58,647 27,643 21,450 11,572 119,312
Income tax expense   16,037       7,770       5,921       3,154       32,882
Net income $ 42,610     $ 19,873     $ 15,529     $ 8,418     $ 86,430
 
Average assets $ 13,440,000 $ 2,998,000 $ 70,000 $ 952,000 $ 17,460,000
 
Nine Months Ended September 30, 2014

Bank

   

Payment
Solutions

   

Institutional
Investment
Management

 

 

Asset
Servicing

      Total
Net interest income $ 216,495 $ 38,248 $ (3) $ 4,401 $ 259,141
Provision for loan losses 7,558 6,442 - - 14,000
Noninterest income 151,843 62,999 102,014 66,584 383,440
Noninterest expense   307,400       67,451       68,862       55,570       499,283
Income before taxes 53,380 27,354 33,149 15,415 129,298
Income tax expense   15,167   7,342   8,883   4,191   35,583
Net income $ 38,213 $ 20,012 $ 24,266 $ 11,224 $ 93,715
 
Average assets $ 12,023,000 $ 2,287,000 $ 72,000 $ 1,539,000 $ 15,921,000
 

UMB Financial Corporation
Media Contact:
Kelli Christman, 816-860-5088
or
Investor Relations Contact:
Kay Gregory, 816-860-7106

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