Market Overview

UMB Financial Corporation Reports Third Quarter 2020 Net Income of $73.1 Million and Announces 3.2% Dividend Increase

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Third Quarter 2020 Highlights

  • GAAP net income of $73.1 million, or $1.52 per diluted share; net operating income of $76.4 million, or $1.59 per diluted share.
  • Pre-tax, pre-provision (PTPP) income of $99.4 million, an increase of 10.2% from the linked quarter.
  • Average loans increased 16.8% on a linked-quarter, annualized basis.
  • Average deposits grew $1.3 billion to $24.1 billion compared to the second quarter of 2020.
  • GAAP book value per share increased 13.8% to $59.43, and tangible book value per share increased 14.5% to $55.19, compared to a year ago.
  • Credit quality remained strong, with net charge-offs of just 0.13% of average loans.

UMB Financial Corporation (NASDAQ:UMBF), a financial services company, announced net income for the third quarter of 2020 of $73.1 million, or $1.52 per diluted share, compared to $60.5 million, or $1.26 per diluted share, in the second quarter of 2020 (linked quarter) and $62.4 million, or $1.27 per diluted share, in the third quarter of 2019.

Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $76.4 million, or $1.59 per diluted share, for the third quarter of 2020, compared to $63.8 million, or $1.33 per diluted share, for the linked quarter and $62.5 million, or $1.27 per diluted share, for the third quarter of 2019. Pre-tax, pre-provision income (PTPP), a non-GAAP measure reconciled to net income before taxes, the nearest comparable GAAP measure, later in this release, was $99.4 million, or $2.07 per diluted share, for the third quarter of 2020, compared to $90.2 million, or $1.88 per diluted share, for the linked quarter, and $80.5 million, or $1.64 per diluted share, for the third quarter of 2019. These PTPP results represent increases of 10.2% on a linked-quarter basis and 23.5% compared to the third quarter of 2019.

Summary of quarterly financial results

 

UMB Financial Corporation

 

(unaudited, dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

 

Q2

 

 

Q3

 

 

 

2020

 

 

2020

 

 

2019

 

Net income

 

$

73,092

 

 

$

60,529

 

 

$

62,382

 

Earnings per share (diluted)

 

 

1.52

 

 

 

1.26

 

 

 

1.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income

 

 

99,385

 

 

 

90,152

 

 

 

80,498

 

Pre-tax, pre-provision earnings per share (diluted)

 

 

2.07

 

 

 

1.88

 

 

 

1.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income

 

 

76,434

 

 

 

63,835

 

 

 

62,525

 

Operating earnings per share (diluted)

 

 

1.59

 

 

 

1.33

 

 

 

1.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.99

%

 

 

0.87

%

 

 

1.03

%

Return on average equity

 

 

10.23

 

 

 

8.95

 

 

 

9.69

 

Efficiency ratio

 

 

66.14

 

 

 

70.20

 

 

 

70.70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

1.03

%

 

 

0.91

%

 

 

1.04

%

Operating return on average equity

 

 

10.70

 

 

 

9.44

 

 

 

9.72

 

Operating efficiency ratio

 

 

64.69

 

 

 

68.76

 

 

 

70.63

 

Summary of year-to-date financial results

 

UMB Financial Corporation

 

(unaudited, dollars in thousands, except per share data)

 

September

 

 

September

 

 

 

YTD

 

 

YTD

 

 

 

2020

 

 

2019

 

Net income

 

$

130,182

 

 

$

177,085

 

Earnings per share (diluted)

 

 

2.69

 

 

 

3.61

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income

 

 

273,283

 

 

 

239,547

 

Pre-tax, pre-provision earnings per share (diluted)

 

 

5.65

 

 

 

4.88

 

 

 

 

 

 

 

 

 

 

Net operating income

 

 

138,388

 

 

 

177,978

 

Operating earnings per share (diluted)

 

 

2.86

 

 

 

3.63

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.62

%

 

 

1.01

%

Return on average equity

 

 

6.30

 

 

 

9.86

 

Efficiency ratio

 

 

68.40

 

 

 

70.34

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

0.66

%

 

 

1.02

%

Operating return on average equity

 

 

6.69

 

 

 

9.91

 

Operating efficiency ratio

 

 

67.18

 

 

 

70.20

 

"Our strong third quarter results were driven by several factors. Despite unprecedented circumstances, average loans, excluding Paycheck Protection Program (PPP) balances, increased 9.7% on a linked-quarter annualized basis and we saw a 47.2% decrease in modified loan balances from the prior quarter. These were modifications designed during the height of the crisis to assist our customers and provide financial relief," said Mariner Kemper, chairman, president and chief executive officer. "In addition, we saw a 23.5% year-over-year increase in pre-tax, pre-provision income. We had year-over-year double-digit growth on both sides of our balance sheet and launched a successful inaugural subordinated debt issuance at an attractive yield, which further bolsters our capital position. And finally, as disclosed in our SEC filing on October 19, our fourth quarter is off to a great start with expected gains from our investment in Tattooed Chef, Inc."

Summary of revenue

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

 

Q2

 

 

Q3

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2020

 

 

2020

 

 

2019

 

 

LQ

 

 

PY

 

Net interest income

 

$

184,384

 

 

$

178,229

 

 

$

168,260

 

 

$

6,155

 

 

$

16,124

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust and securities processing

 

 

50,552

 

 

 

46,321

 

 

 

45,218

 

 

 

4,231

 

 

 

5,334

 

Trading and investment banking

 

 

8,678

 

 

 

12,851

 

 

 

5,712

 

 

 

(4,173

)

 

 

2,966

 

Service charges on deposit accounts

 

 

19,650

 

 

 

19,074

 

 

 

20,620

 

 

 

576

 

 

 

(970

)

Insurance fees and commissions

 

 

259

 

 

 

533

 

 

 

320

 

 

 

(274

)

 

 

(61

)

Brokerage fees

 

 

4,819

 

 

 

5,753

 

 

 

8,102

 

 

 

(934

)

 

 

(3,283

)

Bankcard fees

 

 

15,295

 

 

 

12,916

 

 

 

16,895

 

 

 

2,379

 

 

 

(1,600

)

Gains on sales of securities available for sale, net

 

 

311

 

 

 

4,006

 

 

 

3,057

 

 

 

(3,695

)

 

 

(2,746

)

Other

 

 

13,432

 

 

 

19,002

 

 

 

3,711

 

 

 

(5,570

)

 

 

9,721

 

Total noninterest income

 

$

112,996

 

 

$

120,456

 

 

$

103,635

 

 

$

(7,460

)

 

$

9,361

 

Total revenue

 

$

297,380

 

 

$

298,685

 

 

$

271,895

 

 

$

(1,305

)

 

$

25,485

 

Net interest income (FTE)

 

$

191,181

 

 

$

184,833

 

 

$

174,415

 

 

 

 

 

 

 

 

 

Net interest margin (FTE)

 

 

2.73

%

 

 

2.79

%

 

 

3.09

%

 

 

 

 

 

 

 

 

Total noninterest income as a % of total revenue

 

 

38.00

 

 

 

40.33

 

 

 

38.12

 

 

 

 

 

 

 

 

 

Net interest income

  • Net interest income totaled $184.4 million, an increase of $6.2 million, or 3.5%, from the linked quarter, driven by an increase of $1.2 billion, or 4.6%, in average earning assets. The increase in earning assets was driven by an increase of $638 million in securities and an increase of $633 million in loan balances.
  • Net interest margin for the third quarter was 2.73%, a decrease of six basis points from the linked quarter, due to loan repricing and mix changes, net changes to securities, and lower contribution of free funds. Earning asset yields declined 10 basis points from the linked quarter, driven by declining yields in the loan portfolio due to reductions in short-term interest rates and an unfavorable earning asset mix shift driven by excess liquidity. The cost of interest-bearing liabilities decreased six basis points to 0.28%, driven by a seven-basis-point decline in the cost of interest-bearing deposits and lower borrowing costs. Net interest spread decreased four basis points to 2.63% from the linked quarter and was one basis point lower than the third quarter of 2019.
  • On a year-over-year basis, net interest income increased $16.1 million, or 9.6%, driven by a $2.8 billion, or 22.0%, increase in average loans, and a $1.3 billion, or 15.8%, increase in securities. These increases were driven by organic loan growth and the company's participation in the PPP.
  • Average deposits increased 5.9% on a linked-quarter basis and 25.0% compared to the third quarter of 2019. Average noninterest-bearing demand deposit balances increased 7.8% on a linked-quarter basis and 35.8% compared to the third quarter of 2019.
  • During the third quarter, the company terminated a $750.0 million interest rate floor hedge for $34.1 million with a gain, net of unamortized premium, of $18.4 million to be amortized through September 2024.

Noninterest income

  • Third quarter 2020 noninterest income decreased $7.5 million, or 6.2%, on a linked-quarter basis, largely due to:
    • A decrease of $6.2 million in company-owned life insurance income, reflecting the impact of lower market valuations of the underlying investments, recorded in other income. The decrease in company-owned life insurance income is offset by a proportionate decrease in deferred compensation expense as noted below.
    • A decrease of $4.2 million in trading and investment banking, primarily due to moderation of trading volumes from strong linked quarter levels, as well as a decrease of $1.9 million in market valuation of investments in the company's trading portfolio.
    • A decrease of $3.7 million in gains on sales of available-for-sale securities.
    • These decreases were partially offset by increases of $4.2 million in trust and securities processing due to higher trust services and fund services income and $2.4 million in bankcard fees, primarily driven by increased interchange income.
  • Compared to the prior year, noninterest income in the third quarter of 2020 increased $9.4 million, or 9.0%, primarily driven by:
    • An increase of $5.3 million in trust and securities processing driven by increases of $3.7 million in fund services income and $1.6 million in corporate trust income.
    • Increases of $5.1 million in company-owned life insurance, $3.3 million in derivative income, and $1.2 million in equity earnings on alternative investments, all recorded in other income. The increase in company-owned life insurance income is offset by a proportionate increase in deferred compensation expense as noted below.
    • These increases were partially offset by decreases of $3.3 million in brokerage fees due to decreased 12b-1 income, and $2.7 million in gains on sales of available-for-sale securities.

Noninterest expense

Summary of noninterest expense

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

 

Q2

 

 

Q3

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2020

 

 

2020

 

 

2019

 

 

LQ

 

 

PY

 

Salaries and employee benefits

 

$

124,194

 

 

$

130,938

 

 

$

110,153

 

 

$

(6,744

)

 

$

14,041

 

Occupancy, net

 

 

12,027

 

 

 

11,411

 

 

 

12,240

 

 

 

616

 

 

 

(213

)

Equipment

 

 

20,968

 

 

 

21,502

 

 

 

19,775

 

 

 

(534

)

 

 

1,193

 

Supplies and services

 

 

3,442

 

 

 

3,785

 

 

 

4,261

 

 

 

(343

)

 

 

(819

)

Marketing and business development

 

 

3,038

 

 

 

3,284

 

 

 

5,655

 

 

 

(246

)

 

 

(2,617

)

Processing fees

 

 

12,812

 

 

 

13,603

 

 

 

13,619

 

 

 

(791

)

 

 

(807

)

Legal and consulting

 

 

7,244

 

 

 

6,220

 

 

 

8,374

 

 

 

1,024

 

 

 

(1,130

)

Bankcard

 

 

4,834

 

 

 

4,549

 

 

 

4,643

 

 

 

285

 

 

 

191

 

Amortization of other intangible assets

 

 

1,524

 

 

 

1,658

 

 

 

1,335

 

 

 

(134

)

 

 

189

 

Regulatory fees

 

 

2,309

 

 

 

3,211

 

 

 

2,749

 

 

 

(902

)

 

 

(440

)

Other

 

 

5,603

 

 

 

8,372

 

 

 

8,593

 

 

 

(2,769

)

 

 

(2,990

)

Total noninterest expense

 

$

197,995

 

 

$

208,533

 

 

$

191,397

 

 

$

(10,538

)

 

$

6,598

 

  • GAAP noninterest expense for the third quarter of 2020 was $198.0 million, a decrease of $10.5 million, or 5.1%, from the linked quarter and an increase of $6.6 million, or 3.4%, from the third quarter of 2019.
  • The linked quarter decrease in noninterest expense was driven by:
    • A decrease of $6.7 million in salaries and employee benefits, largely driven by an $8.0 million decrease in deferred compensation expense, and a decrease of $1.9 million in bonus and commission expense. These decreases were partially offset by an increase of $2.7 million in severance expense. The decrease in deferred compensation expense is offset by the decrease in company-owned life insurance income noted above.
    • A $3.0 million decrease in operational losses, recorded in other noninterest expense.
    • A $0.9 million decrease in regulatory fees due to decreased federal deposit insurance expense.
  • The year-over-year increase in noninterest expense was driven by:
    • A $14.0 million increase in salaries and employee benefits, primarily due to increases of $7.3 million in bonus and commission expense, including an increase of $2.7 million in severance expense. Additional increases include $4.2 million in employee benefits expense, including an increase of $3.4 million in deferred compensation expense, and an increase of $2.5 million in salary and wage expense, which included compensation expense tied to the company's COVID-19 response. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above.
    • These increases were partially offset by the following decreases:
      • A decrease of $2.6 million in marketing and development expense primarily due to a decline in travel and entertainment expense due to the pandemic.
      • Decreases of $1.3 million in operational losses and $1.1 million in derivative expense, both recorded in other noninterest expense.
      • A decrease of $1.8 million in consulting expense, recorded in legal and professional expense, due to timing of multiple technology initiatives.

Income taxes

  • The company's effective tax rate was 11.9% for the nine months ended September 30, 2020, compared to 15.1% for the same period in 2019. The decrease in the effective tax rate for 2020 is primarily attributable to a larger portion of pre-tax income being earned from tax-exempt municipal securities.

Balance sheet

  • Average total assets for the third quarter of 2020 were $29.5 billion compared to $28.1 billion for the linked quarter and $23.9 billion for the same period in 2019.
  • During the third quarter, the company completed its inaugural public offering of $200 million in subordinated notes. These notes carry a rate of 3.7%, mature in September 2030, and are callable in September 2025.

Summary of average loans and leases - QTD Average

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

 

Q2

 

 

Q3

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2020

 

 

2020

 

 

2019

 

 

LQ

 

 

PY

 

Commercial and industrial

 

$

7,043,780

 

 

$

6,970,223

 

 

$

5,303,309

 

 

$

73,557

 

 

$

1,740,471

 

Specialty lending

 

 

456,847

 

 

 

471,571

 

 

 

630,768

 

 

 

(14,724

)

 

 

(173,921

)

Commercial real estate

 

 

5,744,344

 

 

 

5,435,428

 

 

 

4,957,810

 

 

 

308,916

 

 

 

786,534

 

Consumer real estate

 

 

1,755,249

 

 

 

1,528,501

 

 

 

1,286,776

 

 

 

226,748

 

 

 

468,473

 

Consumer

 

 

150,814

 

 

 

146,120

 

 

 

136,117

 

 

 

4,694

 

 

 

14,697

 

Credit cards

 

 

371,444

 

 

 

353,424

 

 

 

425,268

 

 

 

18,020

 

 

 

(53,824

)

Leases and other

 

 

209,238

 

 

 

193,099

 

 

 

150,830

 

 

 

16,139

 

 

 

58,408

 

Total loans

 

$

15,731,716

 

 

$

15,098,366

 

 

$

12,890,878

 

 

$

633,350

 

 

$

2,840,838

 

  • Average loans for the third quarter of 2020 increased 4.2% on a linked-quarter basis and 22.0% compared to the third quarter of 2019 due to increased commercial real estate and consumer real estate loans and the company's participation in PPP, which had an average balance of $1.5 billion in the third quarter.

Summary of average securities - QTD Average

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

 

Q2

 

 

Q3

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2020

 

 

2020

 

 

2019

 

 

LQ

 

 

PY

 

Securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

30,881

 

 

$

31,150

 

 

$

250,552

 

 

$

(269

)

 

$

(219,671

)

U.S. Agencies

 

 

242,504

 

 

 

403,290

 

 

 

93,440

 

 

 

(160,786

)

 

 

149,064

 

Mortgage-backed

 

 

4,829,586

 

 

 

4,284,374

 

 

 

3,987,463

 

 

 

545,212

 

 

 

842,123

 

State and political subdivisions

 

 

3,407,508

 

 

 

3,108,661

 

 

 

2,795,210

 

 

 

298,847

 

 

 

612,298

 

Corporates

 

 

58,866

 

 

 

98,089

 

 

 

155,656

 

 

 

(39,223

)

 

 

(96,790

)

Commercial Paper

 

 

3,478

 

 

 

2,040

 

 

 

 

 

 

1,438

 

 

 

3,478

 

Total securities available for sale

 

$

8,572,823

 

 

$

7,927,604

 

 

$

7,282,321

 

 

$

645,219

 

 

$

1,290,502

 

Securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and political subdivisions

 

$

1,085,297

 

 

$

1,100,843

 

 

$

1,105,397

 

 

$

(15,546

)

 

$

(20,100

)

Trading securities

 

 

32,894

 

 

 

37,816

 

 

 

44,571

 

 

 

(4,922

)

 

 

(11,677

)

Other securities

 

 

156,816

 

 

 

148,918

 

 

 

90,008

 

 

 

7,898

 

 

 

66,808

 

Total securities

 

$

9,847,830

 

 

$

9,215,181

 

 

$

8,522,297

 

 

$

632,649

 

 

$

1,325,533

 

  • Average securities available for sale increased 8.1% on a linked-quarter basis and 17.7% compared to the third quarter of 2019.

Summary of average deposits - QTD Average

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

 

Q2

 

 

Q3

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2020

 

 

2020

 

 

2019

 

 

LQ

 

 

PY

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

8,260,170

 

 

$

7,662,836

 

 

$

6,082,498

 

 

$

597,334

 

 

$

2,177,672

 

Interest-bearing demand and savings

 

 

15,125,267

 

 

 

14,160,722

 

 

 

12,214,570

 

 

 

964,545

 

 

 

2,910,697

 

Time deposits

 

 

741,750

 

 

 

957,007

 

 

 

1,011,862

 

 

 

(215,257

)

 

 

(270,112

)

Total deposits

 

$

24,127,187

 

 

$

22,780,565

 

 

$

19,308,930

 

 

$

1,346,622

 

 

$

4,818,257

 

Noninterest bearing deposits as % of total

 

 

34.24

%

 

 

33.64

%

 

 

31.50

%

 

 

 

 

 

 

 

 

  • Average deposits increased 5.9% on a linked-quarter basis and 25.0% compared to the third quarter of 2019.
  • Average noninterest-bearing demand deposits increased 7.8% on a linked-quarter basis to $8.3 billion.

Capital

Capital information

 

UMB Financial Corporation

 

(unaudited, dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

2020

 

 

June 30,

2020

 

 

September 30,

2019

 

Total equity

 

$

2,854,180

 

 

$

2,777,395

 

 

$

2,563,866

 

Book value per common share

 

 

59.43

 

 

 

57.84

 

 

 

52.23

 

Tangible book value per common share

 

 

55.19

 

 

 

53.57

 

 

 

48.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory capital:

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital

 

$

2,402,785

 

 

$

2,335,625

 

 

$

2,284,417

 

Tier 1 capital

 

 

2,402,785

 

 

 

2,335,625

 

 

 

2,284,417

 

Total capital

 

 

2,854,598

 

 

 

2,580,849

 

 

 

2,464,698

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio

 

 

11.93

%

 

 

11.92

%

 

 

12.53

%

Tier 1 risk-based capital ratio

 

 

11.93

 

 

 

11.92

 

 

 

12.53

 

Total risk-based capital ratio

 

 

14.17

 

 

 

13.17

 

 

 

13.51

 

Tier 1 leverage ratio

 

 

8.19

 

 

 

8.35

 

 

 

9.62

 

  • At September 30, 2020, the regulatory capital ratios presented in the foregoing table exceeded all "well-capitalized" regulatory thresholds.
  • Total risk-based capital was favorably impacted by the $200 million subordinated note issuance during the third quarter. Additionally, the company contributed $100 million of capital to UMB Bank, n.a. during the third quarter.

Asset Quality

Credit quality

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

 

Q2

 

 

Q1

 

 

Q4

 

 

Q3

 

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

 

2019

 

Net charge-offs - Total loans

 

$

5,111

 

 

$

5,541

 

 

$

7,672

 

 

$

7,618

 

 

$

2,186

 

Net loan charge-offs as a % of total average loans

 

 

0.13

%

 

 

0.15

%

 

 

0.23

%

 

 

0.23

%

 

 

0.07

%

Loans over 90 days past due

 

$

1,372

 

 

$

4,588

 

 

$

2,211

 

 

$

2,069

 

 

$

2,466

 

Loans over 90 days past due as a % of total loans

 

 

0.01

%

 

 

0.03

%

 

 

0.02

%

 

 

0.02

%

 

 

0.02

%

Nonaccrual and restructured loans

 

$

93,695

 

 

$

82,245

 

 

$

97,029

 

 

$

56,347

 

 

$

71,838

 

Nonaccrual and restructured loans as a % of total loans

 

 

0.59

%

 

 

0.54

%

 

 

0.70

%

 

 

0.42

%

 

 

0.55

%

Provision for credit losses

 

$

16,000

 

 

$

21,500

 

 

$

88,000

 

 

$

2,000

 

 

$

7,500

 

  • Provision for credit losses for the third quarter totaled $16.0 million, a decrease of $5.5 million from the linked quarter, and an increase of $8.5 million from the third quarter of 2019.
  • Net charge-offs totaled $5.1 million, or 0.13%, of average loans, compared to $5.5 million, or 0.15%, of average loans in the linked quarter.

Dividend Declaration

At the company's quarterly board meeting, the Board of Directors declared a $0.32 per share quarterly cash dividend, an increase of 3.2% or $0.01 per share. The cash dividend will be payable on January 4, 2021, to shareholders of record at the close of business on December 10, 2020.

Conference Call

The company plans to host a conference call to discuss its third quarter 2020 earnings results on Wednesday, October 28, 2020, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 877-267-8760 or (international) 412-542-4148 and requesting to join the UMB Financial call. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 3Q 2020 Conference Call

A replay of the conference call may be heard through November 11, 2020 by calling (toll-free) 877-344-7529 or (international) 412-317-0088. The replay access code required for playback is 10148456. The call replay may also be accessed at investorrelations.umb.com.

Non-GAAP Financial Information

In this release, we provide information about net operating income, operating earnings per share - diluted (operating EPS), operating return on average equity (operating ROE), operating return on average assets (operating ROA), operating noninterest expense, operating efficiency ratio, pre-tax, pre-provision income, pre-tax, pre-provision earnings per share – diluted (PTPP EPS), tangible shareholders' equity, and tangible book value per share, all of which are non-GAAP financial measures. This information supplements the results that are reported according to generally accepted accounting principles in the United States (GAAP) and should not be viewed in isolation from, or as a substitute for, GAAP results. The differences between the non-GAAP financial measures – net operating income, operating EPS, operating ROE, operating ROA, operating noninterest expense, operating efficiency ratio, PTPP, PTPP EPS, tangible shareholders' equity, and tangible book value per share – and the nearest comparable GAAP financial measures are reconciled later in this release. The company believes that these non-GAAP financial measures and the reconciliations may be useful to investors because they adjust for acquisition-, severance-, and COVID-19 related items that management does not believe reflect the company's fundamental operating performance. COVID-19 related expense includes hazard pay for branch associates, computer hardware expense to support associates working remotely, and additional equipment, cleaning, and janitorial supplies to protect the well-being of our associates and customers while on the company's premises.

Net operating income for the relevant period is defined as GAAP net income, adjusted to reflect the impact of excluding expenses related to acquisitions, severance expense, COVID-19 related expense, and the cumulative tax impact of these adjustments.

Operating EPS (diluted) is calculated as earnings per share as reported, adjusted to reflect, on a per share basis, the impact of excluding the non-GAAP adjustments described above for the relevant period. Operating ROE is calculated as net operating income from continuing operations, divided by the company's average total shareholders' equity for the relevant period. Operating ROA is calculated as net operating income from continuing operations, divided by the company's average assets for the relevant period. Operating noninterest expense for the relevant period is defined as GAAP noninterest expense, adjusted to reflect the pre-tax impact of non-GAAP adjustments described above. Operating efficiency ratio is calculated as the company's operating noninterest expense, net of amortization of other intangibles, divided by the company's total non-GAAP revenue (calculated as net interest income plus noninterest income, less gains on sales of securities available for sale, net).

Pre-tax, pre-provision income for the relevant period is defined as GAAP net income, adjusted to reflect the impact of excluding income tax and provision expenses.

Tangible shareholders' equity for the relevant period is defined as GAAP shareholders' equity, net of intangible assets. Tangible book value per share is defined as tangible shareholders' equity divided by the Company's total shares outstanding.

Forward-Looking Statements:

This press 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. 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, 2019, 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 U.S. Securities and Exchange Commission (SEC). In addition to such factors that have been disclosed previously, the COVID-19 pandemic (the pandemic) may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. The pandemic has created a global public-health crisis that has resulted in widespread volatility and deteriorations in household, business, economic, and market conditions. It is currently adversely affecting the company and its customers, counterparties, employees, and third-party service providers, and the continued adverse impacts on our business, financial position, results of operations, and prospects could be significant. We are not able to accurately predict the extent of the impact of the pandemic on our capital, liquidity, and other financial positions and on our business, results of operations, and prospects at this time, and we believe it will depend on a number of evolving factors, including: (i) the duration, extent and severity of the pandemic; (ii) the response of governmental and non-governmental authorities to the pandemic, which is rapidly changing and not always coordinated or consistent across jurisdictions; (iii) the effect of the pandemic on our customers, counterparties, employees and third-party service providers, which may vary widely, and which is generally expected to increase our credit, counterparty, operational, and other risks; and (iv) the effect of the pandemic on economies and markets, which in turn could adversely affect, among other things, the origination of new loans and the performance of our existing loans. The pandemic is also expected to have a significant impact on our CECL calculation and related provision under a new accounting standard that we were required to adopt in January 2020. The CECL calculation includes periodic estimates of the net amount expected to be collected over the contractual term of certain financial assets, and requires us to take into account, among other things, economic conditions forecasted over the life of the financial asset, including the current and anticipated effects of the pandemic. Any forward-looking statement should be evaluated in light of these considerations. 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, except to the extent required by applicable securities laws. 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 financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, and serves business and institutional clients nationwide. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn, or follow us on Twitter at @UMBBank. For information about UMB's operations, approach and relief measures during the COVID-19 pandemic, please visit umb.com/COVID-19.

Consolidated Balance Sheets

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

Loans

 

$

15,950,177

 

 

$

13,043,840

 

Allowance for credit losses on loans

 

 

(211,688

)

 

 

(107,406

)

Net loans

 

 

15,738,489

 

 

 

12,936,434

 

Loans held for sale

 

 

10,978

 

 

 

11,025

 

Securities:

 

 

 

 

 

 

 

 

Available for sale

 

 

8,719,246

 

 

 

7,411,908

 

Held to maturity, net of allowance for credit losses

 

 

1,067,501

 

 

 

1,102,005

 

Trading securities

 

 

49,154

 

 

 

86,074

 

Other securities

 

 

159,994

 

 

 

88,176

 

Total securities

 

 

9,995,895

 

 

 

8,688,163

 

Federal funds sold and resell agreements

 

 

1,101,313

 

 

 

463,392

 

Interest-bearing due from banks

 

 

1,613,675

 

 

 

158,339

 

Cash and due from banks

 

 

440,659

 

 

 

658,198

 

Premises and equipment, net

 

 

295,090

 

 

 

290,273

 

Accrued income

 

 

132,574

 

 

 

119,024

 

Goodwill

 

 

180,867

 

 

 

180,867

 

Other intangibles, net

 

 

22,657

 

 

 

17,190

 

Other assets

 

 

718,775

 

 

 

620,187

 

Total assets

 

$

30,250,972

 

 

$

24,143,092

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

8,752,882

 

 

$

6,652,887

 

Interest-bearing demand and savings

 

 

15,298,562

 

 

 

11,689,871

 

Time deposits under $250,000

 

 

491,378

 

 

 

618,301

 

Time deposits of $250,000 or more

 

 

195,085

 

 

 

348,286

 

Total deposits

 

 

24,737,907

 

 

 

19,309,345

 

Federal funds purchased and repurchase agreements

 

 

1,929,004

 

 

 

1,791,000

 

Short-term debt

 

 

15,000

 

 

 

 

Long-term debt

 

 

269,044

 

 

 

70,091

 

Accrued expenses and taxes

 

 

255,720

 

 

 

223,210

 

Other liabilities

 

 

190,117

 

 

 

185,580

 

Total liabilities

 

 

27,396,792

 

 

 

21,579,226

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Common stock

 

 

55,057

 

 

 

55,057

 

Capital surplus

 

 

1,085,375

 

 

 

1,069,510

 

Retained earnings

 

 

1,750,389

 

 

 

1,621,198

 

Accumulated other comprehensive income, net

 

 

299,103

 

 

 

96,021

 

Treasury stock

 

 

(335,744

)

 

 

(277,920

)

Total shareholders' equity

 

 

2,854,180

 

 

 

2,563,866

 

Total liabilities and shareholders' equity

 

$

30,250,972

 

 

$

24,143,092

 

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,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

142,441

 

 

$

162,243

 

 

$

433,471

 

 

$

481,342

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable interest

 

 

26,393

 

 

 

26,966

 

 

 

79,475

 

 

 

79,057

 

Tax-exempt interest

 

 

25,377

 

 

 

23,202

 

 

 

74,393

 

 

 

65,887

 

Total securities income

 

 

51,770

 

 

 

50,168

 

 

 

153,868

 

 

 

144,944

 

Federal funds and resell agreements

 

 

2,248

 

 

 

2,817

 

 

 

9,273

 

 

 

8,968

 

Interest-bearing due from banks

 

 

299

 

 

 

3,450

 

 

 

3,360

 

 

 

10,117

 

Trading securities

 

 

259

 

 

 

425

 

 

 

1,225

 

 

 

1,701

 

Total interest income

 

 

197,017

 

 

 

219,103

 

 

 

601,197

 

 

 

647,072

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

9,284

 

 

 

41,144

 

 

 

50,259

 

 

 

118,494

 

Federal funds and repurchase agreements

 

 

1,730

 

 

 

8,313

 

 

 

10,061

 

 

 

25,924

 

Other

 

 

1,619

 

 

 

1,386

 

 

 

4,323

 

 

 

4,112

 

Total interest expense

 

 

12,633

 

 

 

50,843

 

 

 

64,643

 

 

 

148,530

 

Net interest income

 

 

184,384

 

 

 

168,260

 

 

 

536,554

 

 

 

498,542

 

Provision for credit losses

 

 

16,000

 

 

 

7,500

 

 

 

125,500

 

 

 

30,850

 

Net interest income after provision for credit losses

 

 

168,384

 

 

 

160,760

 

 

 

411,054

 

 

 

467,692

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust and securities processing

 

 

50,552

 

 

 

45,218

 

 

 

143,873

 

 

 

130,078

 

Trading and investment banking

 

 

8,678

 

 

 

5,712

 

 

 

23,252

 

 

 

16,746

 

Service charges on deposit accounts

 

 

19,650

 

 

 

20,620

 

 

 

63,805

 

 

 

62,648

 

Insurance fees and commissions

 

 

259

 

 

 

320

 

 

 

1,051

 

 

 

1,123

 

Brokerage fees

 

 

4,819

 

 

 

8,102

 

 

 

20,432

 

 

 

22,422

 

Bankcard fees

 

 

15,295

 

 

 

16,895

 

 

 

44,756

 

 

 

50,401

 

Gains on sales of securities available for sale, net

 

 

311

 

 

 

3,057

 

 

 

5,544

 

 

 

2,463

 

Other

 

 

13,432

 

 

 

3,711

 

 

 

29,163

 

 

 

30,534

 

Total noninterest income

 

 

112,996

 

 

 

103,635

 

 

 

331,876

 

 

 

316,415

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

124,194

 

 

 

110,153

 

 

 

366,192

 

 

 

340,639

 

Occupancy, net

 

 

12,027

 

 

 

12,240

 

 

 

35,618

 

 

 

35,522

 

Equipment

 

 

20,968

 

 

 

19,775

 

 

 

63,711

 

 

 

58,283

 

Supplies and services

 

 

3,442

 

 

 

4,261

 

 

 

11,412

 

 

 

12,419

 

Marketing and business development

 

 

3,038

 

 

 

5,655

 

 

 

10,962

 

 

 

17,872

 

Processing fees

 

 

12,812

 

 

 

13,619

 

 

 

39,805

 

 

 

38,847

 

Legal and consulting

 

 

7,244

 

 

 

8,374

 

 

 

19,574

 

 

 

21,503

 

Bankcard

 

 

4,834

 

 

 

4,643

 

 

 

14,243

 

 

 

13,689

 

Amortization of other intangible assets

 

 

1,524

 

 

 

1,335

 

 

 

4,916

 

 

 

3,913

 

Regulatory fees

 

 

2,309

 

 

 

2,749

 

 

 

7,886

 

 

 

8,549

 

Other

 

 

5,603

 

 

 

8,593

 

 

 

20,828

 

 

 

24,174

 

Total noninterest expense

 

 

197,995

 

 

 

191,397

 

 

 

595,147

 

 

 

575,410

 

Income before income taxes

 

 

83,385

 

 

 

72,998

 

 

 

147,783

 

 

 

208,697

 

Income tax expense

 

 

10,293

 

 

 

10,616

 

 

 

17,601

 

 

 

31,612

 

NET INCOME

 

$

73,092

 

 

$

62,382

 

 

$

130,182

 

 

$

177,085

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income – basic

 

$

1.52

 

 

$

1.28

 

 

$

2.70

 

 

$

3.63

 

Net income – diluted

 

 

1.52

 

 

 

1.27

 

 

 

2.69

 

 

 

3.61

 

Dividends

 

 

0.31

 

 

 

0.30

 

 

 

0.93

 

 

 

0.90

 

Weighted average shares outstanding – basic

 

 

47,947,056

 

 

 

48,797,182

 

 

 

48,208,447

 

 

 

48,762,667

 

Weighted average shares outstanding – diluted

48,068,438

 

49,096,196

48,352,145

49,052,329

 

Consolidated Statements of Comprehensive Income

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income

 

$

73,092

 

 

$

62,382

 

 

$

130,182

 

 

$

177,085

 

Other comprehensive income, before tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized holding gains and losses, net

 

 

20,975

 

 

 

54,182

 

 

 

269,976

 

 

 

268,100

 

Less: Reclassification adjustment for gains included in net income

 

 

(311

)

 

 

(3,057

)

 

 

(5,544

)

 

 

(2,463

)

Change in unrealized gains and losses on debt securities

 

 

20,664

 

 

 

51,125

 

 

 

264,432

 

 

 

265,637

 

Unrealized gains and losses on derivative hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized gains and losses on derivative hedges, net

 

 

(122

)

 

 

(7,469

)

 

 

19,015

 

 

 

(12,618

)

Less: Reclassification adjustment for (gains) losses included in net income

 

 

(1,123

)

 

 

280

 

 

 

(869

)

 

 

295

 

Change in unrealized gains and losses on derivative hedges

 

 

(1,245

)

 

 

(7,189

)

 

 

18,146

 

 

 

(12,323

)

Other comprehensive income, before tax

 

 

19,419

 

 

 

43,936

 

 

 

282,578

 

 

 

253,314

 

Income tax expense

 

 

(4,578

)

 

 

(10,532

)

 

 

(66,655

)

 

 

(61,511

)

Other comprehensive income

 

 

14,841

 

 

 

33,404

 

 

 

215,923

 

 

 

191,803

 

Comprehensive income

 

$

87,933

 

 

$

95,786

 

 

$

346,105

 

 

$

368,888

 

Consolidated Statements of Shareholders' Equity

UMB Financial Corporation

 

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common

Stock

 

 

Capital

Surplus

 

 

Retained

Earnings

 

 

Accumulated

Other

Comprehensive

(Loss) Income

 

 

Treasury

Stock

 

 

Total

 

Balance - January 1, 2019

 

$

55,057

 

 

$

1,054,601

 

 

$

1,488,421

 

 

$

(95,782

)

 

$

(273,827

)

 

$

2,228,470

 

Total comprehensive income

 

 

 

 

 

 

 

 

177,085

 

 

 

191,803

 

 

 

 

 

 

368,888

 

Dividends ($0.90 per share)

 

 

 

 

 

 

 

 

(44,308

)

 

 

 

 

 

 

 

 

(44,308

)

Purchase of treasury stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,335

)

 

 

(4,335

)

Forfeitures of equity awards, net of issuances

 

 

 

 

 

3,113

 

 

 

 

 

 

 

 

 

(2,497

)

 

 

616

 

Recognition of equity-based compensation

 

 

 

 

 

10,918

 

 

 

 

 

 

 

 

 

 

 

 

10,918

 

Sale of treasury stock

 

 

 

 

 

265

 

 

 

 

 

 

 

 

 

380

 

 

 

645

 

Exercise of stock options

 

 

 

 

 

613

 

 

 

 

 

 

 

 

 

2,359

 

 

 

2,972

 

Balance - September 30, 2019

 

$

55,057

 

 

$

1,069,510

 

 

$

1,621,198

 

 

$

96,021

 

 

$

(277,920

)

 

$

2,563,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance - January 1, 2020

 

$

55,057

 

 

$

1,073,764

 

 

$

1,672,438

 

 

$

83,180

 

 

$

(277,999

)

 

$

2,606,440

 

Total comprehensive income

 

 

 

 

 

 

 

 

130,182

 

 

 

215,923

 

 

 

 

 

 

346,105

 

Dividends ($0.93 per share)

 

 

 

 

 

 

 

 

(45,192

)

 

 

 

 

 

 

 

 

(45,192

)

Purchase of treasury stock

 

 

 

 

 

615

 

 

 

 

 

 

 

 

 

(60,180

)

 

 

(59,565

)

Forfeitures of equity awards, net of issuances

 

 

 

 

 

565

 

 

 

 

 

 

 

 

 

43

 

 

 

608

 

Recognition of equity-based compensation

 

 

 

 

 

9,834

 

 

 

 

 

 

 

 

 

 

 

 

9,834

 

Sale of treasury stock

 

 

 

 

 

158

 

 

 

 

 

 

 

 

 

311

 

 

 

469

 

Exercise of stock options

 

 

 

 

 

439

 

 

 

 

 

 

 

 

 

2,081

 

 

 

2,520

 

Cumulative effect adjustment

 

 

 

 

 

 

 

 

(7,039

)

 

 

 

 

 

 

 

 

(7,039

)

Balance - September 30, 2020

 

$

55,057

 

 

$

1,085,375

 

 

$

1,750,389

 

 

$

299,103

 

 

$

(335,744

)

 

$

2,854,180

 

Average Balances / Yields and Rates

 

UMB Financial Corporation

 

(tax - equivalent basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

 

Average

 

 

Average

 

 

Average

 

 

Average

 

 

 

Balance

 

 

Yield/Rate

 

 

Balance

 

 

Yield/Rate

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned interest

 

$

15,731,716

 

 

 

3.60

%

 

$

12,890,878

 

 

 

4.99

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

5,478,397

 

 

 

1.92

 

 

 

4,636,243

 

 

 

2.31

 

Tax-exempt

 

 

4,336,539

 

 

 

2.95

 

 

 

3,841,483

 

 

 

3.03

 

Total securities

 

 

9,814,936

 

 

 

2.37

 

 

 

8,477,726

 

 

 

2.63

 

Federal funds and resell agreements

 

 

1,177,590

 

 

 

0.76

 

 

 

394,587

 

 

 

2.83

 

Interest bearing due from banks

 

 

1,087,838

 

 

 

0.11

 

 

 

582,116

 

 

 

2.35

 

Trading securities

 

 

32,894

 

 

 

3.54

 

 

 

44,571

 

 

 

4.32

 

Total earning assets

 

 

27,844,974

 

 

 

2.91

 

 

 

22,389,878

 

 

 

3.99

 

Allowance for credit losses

 

 

(211,221

)

 

 

 

 

 

 

(104,795

)

 

 

 

 

Other assets

 

 

1,846,919

 

 

 

 

 

 

 

1,652,033

 

 

 

 

 

Total assets

 

$

29,480,672

 

 

 

 

 

 

$

23,937,116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

15,867,017

 

 

 

0.23

%

 

$

13,226,432

 

 

 

1.23

%

Federal funds and repurchase agreements

 

 

1,964,161

 

 

 

0.35

 

 

 

1,683,072

 

 

 

1.96

 

Borrowed funds

 

 

115,943

 

 

 

5.56

 

 

 

69,927

 

 

 

7.86

 

Total interest-bearing liabilities

 

 

17,947,121

 

 

 

0.28

 

 

 

14,979,431

 

 

 

1.35

 

Noninterest-bearing demand deposits

 

 

8,260,170

 

 

 

 

 

 

 

6,082,498

 

 

 

 

 

Other liabilities

 

 

431,528

 

 

 

 

 

 

 

321,909

 

 

 

 

 

Shareholders' equity

 

 

2,841,853

 

 

 

 

 

 

 

2,553,278

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

29,480,672

 

 

 

 

 

 

$

23,937,116

 

 

 

 

 

Net interest spread