UMBF UMB Financial Corporation

Fourth Quarter 2023 Financial Highlights

• GAAP net income of $70.9 million, or $1.45 per diluted share.
• Net operating income(i) of $112.0 million, or $2.29 per diluted share.
• Average loans increased 6.3% on a linked-quarter, annualized basis, to $23.1 billion.
• Average loans increased $2.8 billion, or 13.9%, as compared to the fourth quarter of 2022.
• Average deposits increased 17.2% on a linked-quarter, annualized basis, to $32.7 billion.
• Net interest income increased 3.7% from the linked quarter.
• Noninterest income increased 11.8% from the fourth quarter of 2022, equal to 37.8% of total revenue.
• Net interest margin was 2.46%, an increase of three basis points from the linked quarter.
• Credit quality remained strong, with net charge-offs of just 0.02% of average loans.

UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the fourth quarter of 2023 of $70.9 million, or $1.45 per diluted share, compared to $96.6 million, or $1.98 per diluted share, in the third quarter of 2023 (linked quarter) and $100.2 million, or $2.06 per diluted share, in the fourth quarter of 2022. The results for the fourth quarter of 2023 include a pre-tax expense of $52.8 million for the industry-wide FDIC special assessment.

Net operating income, a non-GAAP financial measure reconciled later in this release to net income, the nearest comparable GAAP measure, was $112.0 million, or $2.29 per diluted share, for the fourth quarter of 2023, compared to $98.4 million, or $2.02 per diluted share, for the linked quarter and $101.1 million, or $2.07 per diluted share, for the fourth quarter of 2022. Operating pre-tax, pre-provision income (operating PTPP), a non-GAAP measure reconciled later in this release to the components of net income before taxes, the nearest comparable GAAP measure, was $134.9 million, or $2.76 per diluted share, for the fourth quarter of 2023, compared to $126.6 million, or $2.60 per diluted share, for the linked quarter, and $134.1 million, or $2.75 per diluted share, for the fourth quarter of 2022. These operating PTPP results represent increases of 6.6% on a linked-quarter basis and 0.6% compared to the fourth quarter of 2022.

“We closed 2023 with strong fourth quarter performance, demonstrating the power and resilience of our diversified business model. Results were accentuated by continued loan and deposit growth, expanding net interest margin and net interest income, solid fee income growth and exceptional asset quality,” said Mariner Kemper, chairman, president and chief executive officer. “Our strong business performance and financial results were unfortunately muted by our share of the FDIC special assessment levied on banks to recoup the losses related to two of the bank failures in March 2023. I am incredibly proud of our associates who drove this performance, and deeply grateful for our loyal client base that grew with us through the much-exaggerated industry noise following the bank failures. While this was a challenging time for the industry, it was extremely rewarding to see how our company and customers came together to support each other, and the resulting positive growth and performance.”

Mr. Kemper continued, “Key highlights from our fourth quarter results included a 3.7% increase in net interest income from the linked quarter, facilitated by a 6.3% annualized increase in average loans, three basis points of net interest margin expansion, a 4.3% linked-quarter increase in average deposits, a 5.2% increase in fee income, and just 0.02% in net charge-offs. At December 31, 2023, our total deposits – which we describe as our raw material for growth – increased $3.2 billion to $35.8 billion compared to year-end 2022, and were $2.4 billion above September 30, 2023 balances. Looking ahead into 2024, we see a muted but resilient macro-economic environment, and we remain well-positioned with an attractive average loan-to-deposit ratio of 70.7%, strong capital levels, and a high-quality loan portfolio.”

(i) A non-GAAP financial measure reconciled later in this release to net income, the nearest comparable GAAP measure.

Fourth Quarter 2023 earnings discussion

Summary of quarterly financial results

 

UMB Financial Corporation

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

 

 

 

 

 

 

 

 

Q4

 

Q3

 

Q4

 

 

2023

 

2023

 

2022

Net income (GAAP)

 

$

70,923

 

 

$

96,554

 

 

$

100,173

 

Earnings per share - diluted (GAAP)

 

 

1.45

 

 

 

1.98

 

 

 

2.06

 

 

 

 

 

 

 

 

Operating pre-tax, pre-provision income (Non-GAAP)(i)

 

 

134,901

 

 

 

126,592

 

 

 

134,054

 

Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP)(i)

 

 

2.76

 

 

 

2.60

 

 

 

2.75

 

 

 

 

 

 

 

 

Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i)

 

 

141,571

 

 

 

133,151

 

 

 

140,717

 

Operating pre-tax, pre-provision earnings per share - FTE - diluted (Non-GAAP)(i)

 

 

2.90

 

 

 

2.73

 

 

 

2.89

 

 

 

 

 

 

 

 

Net operating income (Non-GAAP)(i)

 

 

112,038

 

 

 

98,400

 

 

 

101,092

 

Operating earnings per share - diluted (Non-GAAP)(i)

 

 

2.29

 

 

 

2.02

 

 

 

2.07

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

Return on average assets

 

 

0.69

%

 

 

0.97

%

 

 

1.06

%

Return on average equity

 

 

9.52

 

 

 

13.25

 

 

 

15.16

 

Efficiency ratio

 

 

77.65

 

 

 

64.51

 

 

 

63.72

 

 

 

 

 

 

 

 

Non-GAAP(i)

 

 

 

 

 

 

Operating return on average assets

 

 

1.10

%

 

 

0.99

%

 

 

1.07

%

Operating return on average equity

 

 

15.04

 

 

 

13.50

 

 

 

15.30

 

Operating return on average tangible equity excluding AOCI

 

 

13.05

 

 

 

11.77

 

 

 

12.85

 

Operating efficiency ratio

 

 

63.06

 

 

 

63.83

 

 

 

63.39

 

(i) See reconciliation of Non-GAAP measures to their nearest comparable GAAP measures later in this release.

Summary of revenue

 

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q3

 

Q4

 

CQ vs.

 

CQ vs.

 

 

2023

 

2023

 

2022

 

LQ

 

PY

Net interest income

 

$

230,522

 

 

$

222,287

 

 

$

245,166

 

 

$

8,235

 

 

$

(14,644

)

Noninterest income:

 

 

 

 

 

 

 

 

 

 

Trust and securities processing

 

 

66,584

 

 

 

66,668

 

 

 

59,207

 

 

 

(84

)

 

 

7,377

 

Trading and investment banking

 

 

5,751

 

 

 

3,771

 

 

 

5,251

 

 

 

1,980

 

 

 

500

 

Service charges on deposit accounts

 

 

21,330

 

 

 

21,080

 

 

 

19,758

 

 

 

250

 

 

 

1,572

 

Insurance fees and commissions

 

 

238

 

 

 

272

 

 

 

459

 

 

 

(34

)

 

 

(221

)

Brokerage fees

 

 

13,439

 

 

 

13,400

 

 

 

13,332

 

 

 

39

 

 

 

107

 

Bankcard fees

 

 

18,672

 

 

 

19,296

 

 

 

19,597

 

 

 

(624

)

 

 

(925

)

Investment securities gains (losses), net

 

 

1,014

 

 

 

271

 

 

 

(409

)

 

 

743

 

 

 

1,423

 

Other

 

 

13,226

 

 

 

8,559

 

 

 

8,302

 

 

 

4,667

 

 

 

4,924

 

Total noninterest income

 

$

140,254

 

 

$

133,317

 

 

$

125,497

 

 

$

6,937

 

 

$

14,757

 

Total revenue

 

$

370,776

 

 

$

355,604

 

 

$

370,663

 

 

$

15,172

 

 

$

113

 

Net interest income (FTE)

 

$

237,192

 

 

$

228,846

 

 

$

251,829

 

 

 

 

 

Net interest margin (FTE)

 

 

2.46

%

 

 

2.43

%

 

 

2.83

%

 

 

 

 

Total noninterest income as a % of total revenue

 

 

37.8

 

 

 

37.5

 

 

 

33.9

 

 

 

 

 

Net interest income

• Fourth quarter 2023 net interest income totaled $230.5 million, an increase of $8.2 million, or 3.7%, from the linked quarter, driven primarily by continued growth in average loans and higher levels of liquidity, partially offset by higher interest expense.
• Average earning assets increased $933.7 million, or 2.5%, from the linked quarter, largely driven by an increase of $823.9 million in interest-bearing due from banks and $357.6 million in average loans, partially offset by a decrease of $179.2 million in average securities.
• Average interest-bearing liabilities increased $777.1 million, or 3.0%, from the linked quarter, primarily driven by an increase of $1.2 billion in interest-bearing deposits, partially offset by decreases of $319.6 million in borrowed funds and $144.0 million in federal funds and repurchase agreements. Average noninterest-bearing demand deposits increased $104.1 million, or 1.0%, as compared to the linked quarter.
• Net interest margin for the fourth quarter was 2.46%, an increase of three basis points from the linked quarter, driven by increased loan yields, the benefit of free funds, and earning asset mix changes, partially offset by the increased cost of interest-bearing liabilities. The cost of interest-bearing liabilities increased 13 basis points to 3.95%. Total cost of funds increased 12 basis points from the linked quarter to 2.87%. Both average loan yields and earning asset yields increased 13 basis points from the linked quarter.
• On a year-over-year basis, net interest income decreased $14.6 million, or 6.0%, driven by higher interest expense primarily due to an unfavorable mix shift in the composition of liabilities, as well as the impact of higher short-term interest rates on deposit costs. This decrease was partially offset by a $2.8 billion, or 13.9%, increase in average loans as well as the benefit from higher short-term interest rates on loan pricing and yields.
• Compared to the fourth quarter of 2022, average earning assets increased $3.0 billion, or 8.6%, largely driven by the increase in average loans noted above and an increase of $1.2 billion in interest-bearing due from banks, partially offset by a decrease of $611.9 million in average securities.
• Average deposits increased 4.1% compared to the fourth quarter of 2022. Average noninterest-bearing demand deposit balances decreased 18.8% compared to the fourth quarter of 2022, driven by migration to rate-bearing deposit categories, as expected in a higher interest rate environment. Average demand deposit balances comprised 31.0% of total deposits, compared to 32.0% in the linked quarter and 39.7% in the fourth quarter of 2022.
• Average borrowed funds decreased $319.6 million as compared to the linked quarter and increased $1.9 billion as compared to the fourth quarter of 2022, driven by short-term borrowings with the Federal Home Loan Bank and the Federal Reserve.

Noninterest income

• Fourth quarter 2023 noninterest income increased $6.9 million, or 5.2%, on a linked-quarter basis, largely due to:
  • Increases of $3.7 million in company-owned life insurance income and $0.6 million in derivative income, both recorded in other income. The increase in company-owned life insurance was offset by a proportionate increase in deferred compensation expense as noted below.
  • An increase of $2.0 million in trading and investment banking due to increased trading volume.
• Compared to the prior year, noninterest income in the fourth quarter of 2023 increased $14.8 million, or 11.8%, primarily driven by:
  • Increases of $4.9 million in fund services income, $2.0 million in corporate trust income, and $0.5 million in trust servicing income, all recorded in trust and securities processing.
  • Increases of $3.3 million in company-owned life insurance income and $0.6 million in bank-owned life insurance income, both recorded in other income. The increase in company-owned life insurance was offset by a proportionate increase in deferred compensation expense as noted below.
  • An increase of $1.6 million in service charges on deposits primarily due to increased corporate service charge income.
  • An increase of $1.4 million in investment securities gains, primarily driven by increased valuations in the company's non-marketable securities.

Noninterest expense

Summary of noninterest expense

 

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q3

 

Q4

 

CQ vs.

 

CQ vs.

 

 

2023

 

2023

 

2022

 

LQ

 

PY

Salaries and employee benefits

 

$

134,231

 

$

133,380

 

$

135,940

 

$

851

 

 

$

(1,709

)

Occupancy, net

 

 

12,296

 

 

 

12,283

 

 

 

12,409

 

 

 

13

 

 

 

(113

)

Equipment

 

 

16,579

 

 

 

17,204

 

 

 

18,969

 

 

 

(625

)

 

 

(2,390

)

Supplies and services

 

 

5,546

 

 

 

3,213

 

 

 

3,697

 

 

 

2,333

 

 

 

1,849

 

Marketing and business development

 

 

6,659

 

 

 

6,631

 

 

 

8,788

 

 

 

28

 

 

 

(2,129

)

Processing fees

 

 

27,271

 

 

 

26,016

 

 

 

23,545

 

 

 

1,255

 

 

 

3,726

 

Legal and consulting

 

 

8,424

 

 

 

7,230

 

 

 

10,664

 

 

 

1,194

 

 

 

(2,240

)

Bankcard

 

 

8,677

 

 

 

8,852

 

 

 

7,369

 

 

 

(175

)

 

 

1,308

 

Amortization of other intangible assets

 

 

2,048

 

 

 

2,124

 

 

 

1,649

 

 

 

(76

)

 

 

399

 

Regulatory fees

 

 

59,183

 

 

 

6,153

 

 

 

4,232

 

 

 

53,030

 

 

 

54,951

 

Other

 

 

9,060

 

 

 

8,355

 

 

 

10,556

 

 

 

705

 

 

 

(1,496

)

Total noninterest expense

 

$

289,974

 

 

$

231,441

 

 

$

237,818

 

 

$

58,533

 

 

$

52,156

 

• GAAP Noninterest expense for the fourth quarter of 2023 was $290.0 million, an increase of $58.5 million, or 25.3%, from the linked quarter and an increase of $52.2 million, or 21.9% from the fourth quarter of 2022. Operating noninterest expense, a non-GAAP financial measure reconciled later in this release to noninterest expense, the nearest comparable GAAP measure, was $235.9 million for the fourth quarter of 2023, an increase of $6.9 million, or 3.0%, from the linked quarter and a decrease of $0.7 million, or 0.3%, from the fourth quarter of 2022.
• The linked-quarter increase in GAAP noninterest expense was driven by:
  • An increase of $53.0 million in regulatory fees expense, primarily driven by the $52.8 million FDIC special assessment in the fourth quarter of 2023.
  • An increase of $2.7 million in deferred compensation expense, recorded in salaries and employee benefits. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above.
  • An increase of $2.3 million in supplies driven by purchases of computers during the fourth quarter.
  • An increase of $1.5 million in charitable contribution expense, recorded in other expense.
  • An increase of $1.3 million in processing fees expense due to the ongoing modernization of the company’s core systems and the timing of multiple software projects.
  • These increases were partially offset by decreases of $1.6 million in payroll taxes, insurance, and 401(k) expense and $0.5 million in bonus and commission expense, both recorded in salaries and employee benefits.
• The year-over-year increase in GAAP noninterest expense was driven by:
  • An increase of $55.0 million in regulatory fees, primarily driven by the $52.8 million FDIC special assessment recorded in the fourth quarter of 2023.
  • An increase of $3.7 million in processing fees expense due to the ongoing modernization of the company’s core systems and the timing of multiple software projects.
  • Increases of $2.4 million in deferred compensation expense and $0.7 million in salary and wage expense, both recorded in salaries and employee benefits. 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 $5.1 million in bonus and commission expense, recorded in salaries and employee benefits.
    • A decrease of $2.4 million in equipment expense driven by reduced software expense.
    • A decrease of $2.2 million in legal and consulting expense due to the timing of multiple projects.

Full Year 2023 earnings discussion

Net income for the year ended December 31, 2023 was $350.0 million, or $7.18 per diluted share, compared to $431.7 million, or $8.86 per diluted share in 2022. The results for 2023 include $52.8 million in pre-tax expense for the FDIC special assessment. Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $397.1 million, or $8.14 per diluted share, compared to $433.0 million, or $8.88 per diluted share in 2022. The decrease in net income from the prior year was driven by the pre-tax gain of $66.2 million recognized in 2022 on the sale of the company's Visa Inc. Class B common shares. Operating PTPP, a non-GAAP financial measure reconciled later in this release to the components of net income before taxes, the nearest comparable GAAP measure, was $524.8 million, or $10.76 per diluted share, compared to $571.7 million, or $11.73 per diluted share in 2022. These results represent a decrease of 8.2% as compared to 2022.

Summary of year-to-date financial results

 

UMB Financial Corporation

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

 

December

 

December

 

 

YTD

 

YTD

 

 

2023

 

2022

Net income (GAAP)

 

$

350,024

 

 

$

431,682

 

Earnings per share - diluted (GAAP)

 

 

7.18

 

 

 

8.86

 

 

 

 

 

 

Operating pre-tax, pre-provision income (Non-GAAP)(i)

 

 

524,791

 

 

 

571,671

 

Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP)(i)

 

 

10.76

 

 

 

11.73

 

 

 

 

 

 

Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i)

 

 

551,150

 

 

 

597,465

 

Operating pre-tax, pre-provision earnings per share - FTE - diluted (Non-GAAP)(i)

 

 

11.30

 

 

 

12.26

 

 

 

 

 

 

Net operating income (Non-GAAP)(i)

 

 

397,115

 

 

 

433,020

 

Operating earnings per share - diluted (Non-GAAP)(i)

 

 

8.14

 

 

 

8.88

 

 

 

 

 

 

GAAP

 

 

 

 

Return on average assets

 

 

0.88

%

 

 

1.15

%

Return on average equity

 

 

12.23

 

 

 

15.83

 

Efficiency ratio

 

 

67.76

 

 

 

60.84

 

 

 

 

 

 

Non-GAAP (i)

 

 

 

 

Operating return on average assets

 

 

1.00

%

 

 

1.15

%

Operating return on average equity

 

 

13.87

 

 

 

15.88

 

Operating return on average tangible equity excluding AOCI

 

 

12.17

 

 

 

14.38

 

Operating efficiency ratio

 

 

63.52

 

 

 

60.72

 

(i) See reconciliation of Non-GAAP measures to their nearest comparable GAAP measures later in this release.

• Net interest income increased $6.3 million, or 0.7%, year-over-year due to a $1.9 billion, or 5.3%, increase in average earning assets, coupled with the impacts from increased short-term and long-term interest rates. The increase in earning assets was driven by an increase of $3.5 billion, or 18.7%, in average loans, partially offset by decreases of $649.8 million in federal funds and resell agreements and $611.9 million in average securities from 2022. Average interest-bearing liabilities increased $4.5 billion, or 21.1%, while noninterest-bearing demand deposits decreased $2.6 billion, or 19.8%, as expected in a higher interest rate environment. The yield on earning assets increased 170 basis points, while the cost of interest-bearing liabilities increased 253 basis points. Net interest margin for 2023 was 2.52%, compared to 2.63% in 2022.
• Full-year noninterest income decreased $12.4 million, or 2.2%, due to:
  • A decrease of $61.6 million in investment securities gains, largely driven by the gain on the sale of the company's Visa Inc. Class B common shares during the second quarter of 2022, partially offset by an increase in valuation of the company's marketable securities.
  • A decrease of $3.6 million in trading and investment banking due to decreased trading volume.
  • These decreases were offset by the following increases:
    • Increases of $18.4 million in company-owned life insurance and $1.7 million in bank-owned life insurance income, both recorded in other income. The increase in company-owned life insurance was offset by a proportionate increase in deferred compensation expense as noted below.
    • Increases of $12.2 million in fund services income and $7.7 million in corporate trust income, both recorded in trust and securities processing.
    • An increase of $11.1 million in brokerage income, primarily driven by higher 12b-1 fees and money market income.
    • An increase of $1.3 million in bankcard income, driven by increased interchange income, partially offset by increased rewards and rebates expense.
• Full-year GAAP noninterest expense increased $101.0 million, or 11.2%, due to:
  • An increase of $61.6 million in regulatory fees, primarily driven by the $52.8 million industry-wide FDIC special assessment recorded in the fourth quarter of 2023.
  • An increase of $29.0 million in salaries and employee benefits, driven by increases of $23.8 million in salary and wage expense, $14.7 million in deferred compensation expense, and $6.5 million in payroll taxes, insurance, and 401(k) expense, partially offset by a decrease of $15.3 million in bonus and commission expense. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above.
  • An increase of $20.9 million in processing fees due to the ongoing modernization of the company’s core systems and the timing of multiple software projects.
  • These increases were partially offset by a decrease of $9.1 million in legal and consulting expense due to the timing of multiple projects.

Income taxes

• The company’s effective tax rate was 17.0% for the year ended December 31, 2023, compared to 18.9% for the same period in 2022. The decrease in the effective tax rate in 2023 is primarily attributable to a larger portion of income being earned from tax-exempt municipal securities and excludable life insurance policy gains.

Balance sheet

• Average total assets for the fourth quarter of 2023 were $40.5 billion compared to $39.5 billion for the linked quarter and $37.3 billion for the same period in 2022.

Summary of average loans and leases - QTD Average

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q3

 

Q4

 

CQ vs.

 

CQ vs.

 

 

2023

 

2023

 

2022

 

LQ

 

PY

Commercial and industrial

 

$

9,825,043

 

$

9,852,335

 

$

8,891,356

 

$

(27,292

)

 

$

933,687

 

Specialty lending

 

 

496,816

 

 

 

526,711

 

 

 

559,200

 

 

 

(29,895

)

 

 

(62,384

)

Commercial real estate

 

 

8,890,057

 

 

 

8,545,206

 

 

 

7,323,877

 

 

 

344,851

 

 

 

1,566,180

 

Consumer real estate

 

 

2,945,114

 

 

 

2,922,753

 

 

 

2,678,771

 

 

 

22,361

 

 

 

266,343

 

Consumer

 

 

153,791

 

 

 

139,384

 

 

 

145,811

 

 

 

14,407

 

 

 

7,980

 

Credit cards

 

 

495,502

 

 

 

477,904

 

 

 

457,043

 

 

 

17,598

 

 

 

38,459

 

Leases and other

 

 

302,740

 

 

 

287,174

 

 

 

238,603

 

 

 

15,566

 

 

 

64,137

 

Total loans

 

$

23,109,063

 

 

$

22,751,467

 

 

$

20,294,661

 

 

$

357,596

 

 

$

2,814,402

 

• Average loans for the fourth quarter of 2023 increased $357.6 million, or 1.6%, on a linked-quarter basis and $2.8 billion, or 13.9%, compared to the fourth quarter of 2022.

Summary of average securities - QTD Average

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q3

 

Q4

 

CQ vs.

 

CQ vs.

 

 

2023

 

2023

 

2022

 

LQ

 

PY

Securities available for sale:

 

 

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

859,114

 

$

786,136

 

$

752,339

 

$

72,978

 

 

$

106,775

 

U.S. Agencies

 

 

169,723

 

 

 

172,832

 

 

 

171,171

 

 

 

(3,109

)

 

 

(1,448

)

Mortgage-backed

 

 

3,466,152

 

 

 

3,611,305

 

 

 

4,027,120

 

 

 

(145,153

)

 

 

(560,968

)

State and political subdivisions

 

 

1,218,176

 

 

 

1,275,591

 

 

 

1,353,307

 

 

 

(57,415

)

 

 

(135,131

)

Corporates

 

 

345,634

 

 

 

345,026

 

 

 

366,131

 

 

 

608

 

 

 

(20,497

)

Collateralized loan obligations

 

 

349,149

 

 

 

346,426

 

 

 

328,475

 

 

 

2,723

 

 

 

20,674

 

Total securities available for sale

 

$

6,407,948

 

 

$

6,537,316

 

 

$

6,998,543

 

 

$

(129,368

)

 

$

(590,595

)

Securities held to maturity:

 

 

 

 

 

 

 

 

 

 

U.S. Agencies

 

$

123,195

 

 

$

123,165

 

 

$

123,077

 

 

$

30

 

 

$

118

 

Mortgage-backed

 

 

2,756,528

 

 

 

2,814,467

 

 

 

2,983,489

 

 

 

(57,939

)

 

 

(226,961

)

State and political subdivisions

 

 

2,825,138

 

 

 

2,828,029

 

 

 

2,765,717

 

 

 

(2,891

)

 

 

59,421

 

Total securities held to maturity

 

$

5,704,861

 

 

$

5,765,661

 

 

$

5,872,283

 

 

$

(60,800

)

 

$

(167,422

)

Trading securities

 

$

16,880

 

 

$

17,327

 

 

$

11,799

 

 

$

(447

)

 

$

5,081

 

Other securities

 

 

456,758

 

 

 

445,380

 

 

 

315,748

 

 

 

11,378

 

 

 

141,010

 

Total securities

 

$

12,586,447

 

 

$

12,765,684

 

 

$

13,198,373

 

 

$

(179,237

)

 

$

(611,926

)

• Average total securities decreased 1.4% on a linked-quarter basis and 4.6% compared to the fourth quarter of 2022.
• At December 31, 2023, the unrealized pre-tax net loss on the available-for-sale securities portfolio was $624.2 million, or 8.1% of the $7.7 billion amortized cost balance. At December 31, 2023, the unrealized pre-tax net loss on the securities designated as held to maturity was $508.5 million, or 8.9% of the $5.7 billion amortized cost value.
• During 2022, the company transferred securities with an amortized cost balance of $4.1 billion and a fair value of $3.8 billion from the available-for-sale category to the held-to-maturity category. The remaining balance of unrealized pre-tax net losses related to transferred securities was $207.2 million as of December 31, 2023 and was included in the amortized cost balance of held-to-maturity securities.
• At December 31, 2023, an after-tax gain of $55.0 million was included in accumulated other comprehensive income (AOCI) related to the company’s fair value hedges of municipal securities. During 2021, the company entered into ten of these hedge transactions, all of which have since been terminated. The gain on the terminated hedges is being amortized over the remaining life of the underlying bonds.

Summary of average deposits - QTD Average

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q3

 

Q4

 

CQ vs.

 

CQ vs.

 

 

2023

 

2023

 

2022

 

LQ

 

PY

Deposits:

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

10,118,748

 

 

$

10,014,686

 

 

$

12,454,413

 

 

$

104,062

 

 

$

(2,335,665

)

Interest-bearing demand and savings

 

 

19,457,878

 

 

 

18,142,212

 

 

 

17,952,568

 

 

 

1,315,666

 

 

 

1,505,310

 

Time deposits

 

 

3,098,636

 

 

 

3,173,549

 

 

 

966,969

 

 

 

(74,913

)

 

 

2,131,667

 

Total deposits

 

$

32,675,262

 

 

$

31,330,447

 

 

$

31,373,950

 

 

$

1,344,815

 

 

$

1,301,312

 

Noninterest bearing deposits as % of total

 

 

31.0

%

 

 

32.0

%

 

 

39.7

%

 

 

 

 

• Average deposits increased 4.3% on a linked-quarter basis and 4.1% compared to the fourth quarter of 2022.
• As of December 31, 2023, total estimated uninsured deposits were $24.4 billion, or approximately 68.2% of total deposits. Estimated uninsured deposits, when adjusted to exclude affiliate (company-owned) and collateralized deposits, were $16.2 billion, and represented approximately 45.3% of total deposits.

Capital

Capital information

 

UMB Financial Corporation

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

 

 

 

 

 

 

 

 

December 31,

2023

 

September 30,

2023

 

December 31,

2022

Total equity

 

$

3,100,419

 

 

$

2,806,659

 

 

$

2,667,093

 

Accumulated other comprehensive loss, net

 

 

(556,935

)

 

 

(792,371

)

 

 

(702,735

)

Book value per common share

 

 

63.85

 

 

 

57.83

 

 

 

55.20

 

Tangible book value per common share (Non-GAAP)(i)

 

 

58.12

 

 

 

52.06

 

 

 

49.28

 

 

 

 

 

 

 

 

Regulatory capital:

 

 

 

 

 

 

Common equity Tier 1 capital

 

$

3,418,676

 

 

$

3,357,986

 

 

$

3,129,030

 

Tier 1 capital

 

 

3,418,676

 

 

 

3,357,986

 

 

 

3,129,030

 

Total capital

 

 

4,014,910

 

 

 

3,955,093

 

 

 

3,682,619

 

 

 

 

 

 

 

 

Regulatory capital ratios:

 

 

 

 

 

 

Common equity Tier 1 capital ratio

 

 

10.94

%

 

 

10.77

%

 

 

10.62

%

Tier 1 risk-based capital ratio

 

 

10.94

 

 

 

10.77

 

 

 

10.62

 

Total risk-based capital ratio

 

 

12.85

 

 

 

12.68

 

 

 

12.50

 

Tier 1 leverage ratio

 

 

8.49

 

 

 

8.55

 

 

 

8.43

 

(i) See reconciliation of Non-GAAP measures to their nearest comparable GAAP measures later in this release.

• At December 31, 2023, the regulatory capital ratios presented in the foregoing table exceeded all “well-capitalized” regulatory thresholds.

Asset Quality

Credit quality

 

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q3

 

Q2

 

Q1

 

Q4

 

 

2023

 

2023

 

2023

 

2023

 

2022

Net charge-offs (recoveries) - total loans

 

$

1,352

 

 

$

4,618

 

 

$

(139

)

 

$

4,643

 

 

$

2,189

 

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

 

 

0.02

%

 

 

0.08

%

 

 

(0.00

)%

 

 

0.09

%

 

 

0.04

%

Loans over 90 days past due

 

$

3,111

 

 

$

3,044

 

 

$

10,675

 

 

$

1,723

 

 

$

1,617

 

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

 

 

0.01

%

 

 

0.01

%

 

 

0.05

%

 

 

0.01

%

 

 

0.01

%

Nonaccrual and restructured loans

 

$

13,212

 

 

$

17,042

 

 

$

19,347

 

 

$

15,480

 

 

$

19,269

 

Nonaccrual and restructured loans as a % of total loans

 

 

0.06

%

 

 

0.07

%

 

 

0.09

%

 

 

0.07

%

 

 

0.09

%

Provision for credit losses

 

$

—

 

 

$

4,977

 

 

$

13,000

 

 

$

23,250

 

 

$

9,000

 

• Provision for credit losses for the fourth quarter decreased $5.0 million from the linked quarter and $9.0 million from the fourth quarter of 2022. These decreases were driven largely by favorable changes in macro-economic variables and credit metrics in the current period as compared to the prior periods, partially offset by loan growth.
• Net charge-offs for the fourth quarter totaled $1.4 million, or 0.02%, of average loans, compared to $4.6 million, or 0.08% of average loans in the linked quarter, and $2.2 million, or 0.04% of average loans for the fourth quarter of 2022. On a year-to-date basis, net charge-offs totaled $10.5 million, or 0.05% of average loans, compared to $39.9 million, or 0.21% of average loans, for the same period in 2022.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors declared a $0.39 per share quarterly cash dividend, payable on April 1, 2024, to shareholders of record at the close of business on March 11, 2024.

Conference Call

The company plans to host a conference call to discuss its fourth quarter 2023 earnings results on Wednesday, January 31, 2024, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 833-470-1428 or (international) 404-975-4839 and requesting to join the UMB Financial call with access code 269364. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 4Q 2023 Conference Call

A replay of the conference call may be heard through February 14, 2024, by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 190379. The call replay may also be accessed at investorrelations.umb.com.

Non-GAAP Financial Information

In this release, we may 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, operating pre-tax, pre-provision income (operating PTPP), operating pre-tax, pre-provision earnings per share – diluted (operating PTPP EPS), operating pre-tax, pre-provision income on a fully tax equivalent basis (operating PTPP-FTE), operating pre-tax, pre-provision FTE earnings per share – diluted (operating PTPP-FTE EPS), tangible shareholders’ equity, tangible book value per share, and operating return on average tangible equity excluding AOCI, 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, operating PTPP, operating PTPP EPS, operating PTPP-FTE, operating PTPP-FTE EPS, tangible shareholders’ equity, tangible book value per share, and operating return on average tangible equity excluding AOCI – 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- and severance-related items, and the FDIC special assessment that management does not believe reflect the company’s fundamental operating performance.

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, the FDIC special assessment, 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, divided by the company’s average total shareholders’ equity for the relevant period. Operating ROA is calculated as net operating income, 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).

Operating PTPP income for the relevant period is defined as GAAP net interest income plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions, severance expense, and the FDIC special assessment.

Operating PTPP-FTE for the relevant period is defined as GAAP net interest income on a fully tax equivalent basis plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions, severance expense, and the FDIC special assessment.

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.

Operating return on average tangible equity excluding AOCI is calculated as net operating income, divided by the company’s average tangible shareholders’ equity exclusive of AOCI for the relevant period.

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, 2022, 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: macroeconomic and adverse developments and uncertainties related to the collateral effects of the collapse of, and challenges for, domestic and international banks, including the impacts to the U.S. and global economies; sustained levels of high inflation and the potential for an economic recession on the heels of aggressive quantitative tightening by the Federal Reserve, and impacts related to or resulting from instability in the Middle East and Russia’s military action in Ukraine, such as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. 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. As the company’s reach continues to grow, it also serves business clients nationwide and institutional clients in several countries. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn.

Consolidated Balance Sheets

 

UMB Financial Corporation

(dollars in thousands)

 

 

 

 

 

 

December 31,

 

 

2023

 

2022

 

 

(unaudited)

 

(audited)

ASSETS

 

 

 

 

Loans

 

$

23,172,484

 

 

$

21,031,189

 

Allowance for credit losses on loans

 

 

(219,738

)

 

 

(191,836

)

Net loans

 

 

22,952,746

 

 

 

20,839,353

 

Loans held for sale

 

 

4,420

 

 

 

1,978

 

Securities:

 

 

 

 

Available for sale

 

 

7,068,613

 

 

 

7,006,347

 

Held to maturity, net of allowance for credit losses

 

 

5,688,610

 

 

 

5,859,192

 

Trading securities

 

 

18,093

 

 

 

17,980

 

Other securities

 

 

492,935

 

 

 

349,758

 

Total securities

 

 

13,268,251

 

 

 

13,233,277

 

Federal funds sold and resell agreements

 

 

245,344

 

 

 

958,597

 

Interest-bearing due from banks

 

 

5,159,802

 

 

 

1,179,105

 

Cash and due from banks

 

 

447,201

 

 

 

500,682

 

Premises and equipment, net

 

 

241,700

 

 

 

263,649

 

Accrued income

 

 

220,306

 

 

 

189,231

 

Goodwill

 

 

207,385

 

 

 

207,385

 

Other intangibles, net

 

 

71,012

 

 

 

78,724

 

Other assets

 

 

1,193,507

 

 

 

1,060,480

 

Total assets

 

$

44,011,674

 

 

$

38,512,461

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Deposits:

 

 

 

 

Noninterest-bearing demand

 

$

12,130,662

 

 

$

13,260,363

 

Interest-bearing demand and savings

 

 

20,588,606

 

 

 

18,461,632

 

Time deposits under $250,000

 

 

2,292,899

 

 

 

379,087

 

Time deposits of $250,000 or more

 

 

780,692

 

 

 

538,051

 

Total deposits

 

 

35,792,859

 

 

 

32,639,133

 

Federal funds purchased and repurchase agreements

 

 

2,119,644

 

 

 

2,222,167

 

Short-term debt

 

 

1,800,000

 

 

 

—

 

Long-term debt

 

 

383,247

 

 

 

381,311

 

Accrued expenses and taxes

 

 

389,860

 

 

 

239,624

 

Other liabilities

 

 

425,645

 

 

 

363,133

 

Total liabilities

 

 

40,911,255

 

 

 

35,845,368

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

Common stock

 

 

55,057

 

 

 

55,057

 

Capital surplus

 

 

1,134,363

 

 

 

1,125,949

 

Retained earnings

 

 

2,810,824

 

 

 

2,536,086

 

Accumulated other comprehensive loss, net

 

 

(556,935

)

 

 

(702,735

)

Treasury stock

 

 

(342,890

)

 

 

(347,264

)

Total shareholders' equity

 

 

3,100,419

 

 

 

2,667,093

 

Total liabilities and shareholders' equity

 

$

44,011,674

 

 

$

38,512,461

 

Consolidated Statements of Income

 

UMB Financial Corporation

(dollars in thousands except share and per share data)

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2023

 

2022

 

2023

 

2022

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

INTEREST INCOME

 

 

 

 

 

 

 

 

Loans

 

$

381,041

 

$

273,648

 

$

1,399,961

 

$

810,007

Securities:

 

 

 

 

 

 

 

 

Taxable interest

 

 

53,890

 

 

 

51,441

 

 

 

214,981

 

 

 

192,121

 

Tax-exempt interest

 

 

25,637

 

 

 

25,105

 

 

 

102,197

 

 

 

97,190

 

Total securities income

 

 

79,527

 

 

 

76,546

 

 

 

317,178

 

 

 

289,311

 

Federal funds and resell agreements

 

 

3,540

 

 

 

7,106

 

 

 

17,647

 

 

 

19,109

 

Interest-bearing due from banks

 

 

32,267

 

 

 

9,373

 

 

 

103,190

 

 

 

18,582

 

Trading securities

 

 

227

 

 

 

139

 

 

 

729

 

 

 

511

 

Total interest income

 

 

496,602

 

 

 

366,812

 

 

 

1,838,705

 

 

 

1,137,520

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

Deposits

 

 

213,842

 

 

 

97,484

 

 

 

704,210

 

 

 

167,553

 

Federal funds and repurchase agreements

 

 

21,903

 

 

 

18,848

 

 

 

93,026

 

 

 

40,703

 

Other

 

 

30,335

 

 

 

5,314

 

 

 

121,353

 

 

 

15,467

 

Total interest expense

 

 

266,080

 

 

 

121,646

 

 

 

918,589

 

 

 

223,723

 

Net interest income

 

 

230,522

 

 

 

245,166

 

 

 

920,116

 

 

 

913,797

 

Provision for credit losses

 

 

—

 

 

 

9,000

 

 

 

41,227

 

 

 

37,900

 

Net interest income after provision for credit losses

 

 

230,522

 

 

 

236,166

 

 

 

878,889

 

 

 

875,897

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

Trust and securities processing

 

 

66,584

 

 

 

59,207

 

 

 

257,200

 

 

 

237,207

 

Trading and investment banking

 

 

5,751

 

 

 

5,251

 

 

 

19,630

 

 

 

23,201

 

Service charges on deposit accounts

 

 

21,330

 

 

 

19,758

 

 

 

84,950

 

 

 

85,167

 

Insurance fees and commissions

 

 

238

 

 

 

459

 

 

 

1,009

 

 

 

1,338

 

Brokerage fees

 

 

13,439

 

 

 

13,332

 

 

 

54,119

 

 

 

43,019

 

Bankcard fees

 

 

18,672

 

 

 

19,597

 

 

 

74,719

 

 

 

73,451

 

Investment securities gains (losses), net

 

 

1,014

 

 

 

(409

)

 

 

(3,139

)

 

 

58,444

 

Other

 

 

13,226

 

 

 

8,302

 

 

 

53,365

 

 

 

32,406

 

Total noninterest income

 

 

140,254

 

 

 

125,497

 

 

 

541,853

 

 

 

554,233

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

134,231

 

 

 

135,940

 

 

 

553,421

 

 

 

524,431

 

Occupancy, net

 

 

12,296

 

 

 

12,409

 

 

 

48,502

 

 

 

48,848

 

Equipment

 

 

16,579

 

 

 

18,969

 

 

 

68,718

 

 

 

74,259

 

Supplies and services

 

 

5,546

 

 

 

3,697

 

 

 

16,829

 

 

 

13,590

 

Marketing and business development

 

 

6,659

 

 

 

8,788

 

 

 

25,749

 

 

 

25,699

 

Processing fees

 

 

27,271

 

 

 

23,545

 

 

 

103,099

 

 

 

82,227

 

Legal and consulting

 

 

8,424

 

 

 

10,664

 

 

 

29,998

 

 

 

39,095

 

Bankcard

 

 

8,677

 

 

 

7,369

 

 

 

32,969

 

 

 

26,367

 

Amortization of other intangible assets

 

 

2,048

 

 

 

1,649

 

 

 

8,587

 

 

 

5,037

 

Regulatory fees

 

 

59,183

 

 

 

4,232

 

 

 

77,010

 

 

 

15,378

 

Other

 

 

9,060

 

 

 

10,556

 

 

 

34,258

 

 

 

43,188

 

Total noninterest expense

 

 

289,974

 

 

 

237,818

 

 

 

999,140

 

 

 

898,119

 

Income before income taxes

 

 

80,802

 

 

 

123,845

 

 

 

421,602

 

 

 

532,011

 

Income tax expense

 

 

9,879

 

 

 

23,672

 

 

 

71,578

 

 

 

100,329

 

NET INCOME

 

$

70,923

 

 

$

100,173

 

 

$

350,024

 

 

$

431,682

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

Net income – basic

 

$

1.46

 

 

$

2.07

 

 

$

7.22

 

 

$

8.93

 

Net income – diluted

 

 

1.45

 

 

 

2.06

 

 

 

7.18

 

 

 

8.86

 

Dividends

 

 

0.39

 

 

 

0.38

 

 

 

1.53

 

 

 

1.49

 

Weighted average shares outstanding – basic

 

 

48,538,127

 

 

 

48,310,993

 

 

 

48,503,643

 

 

 

48,340,922

 

Weighted average shares outstanding – diluted

 

 

48,860,020

 

 

 

48,735,088

 

 

 

48,763,820

 

 

 

48,747,399

 

Consolidated Statements of Comprehensive Income

 

UMB Financial Corporation

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2023

 

2022

 

2023

 

2022

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

Net income

 

$

70,923

 

 

$

100,173

 

 

$

350,024

 

 

$

431,682

 

Other comprehensive income (loss), before tax:

 

 

 

 

 

 

 

 

Unrealized gains and losses on debt securities:

 

 

 

 

 

 

 

 

Change in unrealized holding gains and losses, net

 

 

293,578

 

 

 

64,924

 

 

 

147,977

 

 

 

(1,137,417

)

Less: Reclassification adjustment for net losses included in net income

 

 

—

 

 

 

—

 

 

 

279

 

 

 

—

 

Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity

 

 

9,288

 

 

 

11,186

 

 

 

39,851

 

 

 

36,894

 

Change in unrealized gains and losses on debt securities

 

 

302,866

 

 

 

76,110

 

 

 

188,107

 

 

 

(1,100,523

)

Unrealized gains and losses on derivative hedges:

 

 

 

 

 

 

 

 

Change in unrealized gains and losses on derivative hedges, net

 

 

10,767

 

 

 

170

 

 

 

15,015

 

 

 

12,608

 

Less: Reclassification adjustment for net gains included in net income

 

 

(2,589

)

 

 

(1,942

)

 

 

(10,654

)

 

 

(5,353

)

Change in unrealized gains and losses on derivative hedges

 

 

8,178

 

 

 

(1,772

)

 

 

4,361

 

 

 

7,255

 

Other comprehensive income (loss), before tax

 

 

311,044

 

 

 

74,338

 

 

 

192,468

 

 

 

(1,093,268

)

Income tax (expense) benefit

 

 

(75,608

)

 

 

(17,813

)

 

 

(46,668

)

 

 

264,219

 

Other comprehensive income (loss)

 

 

235,436

 

 

 

56,525

 

 

 

145,800

 

 

 

(829,049

)

Comprehensive income (loss)

 

$

306,359

 

 

$

156,698

 

 

$

495,824

 

 

$

(397,367

)

Consolidated Statements of Shareholders' Equity

UMB Financial Corporation

(dollars in thousands except per share data)

 

 

 

 

 

 

(audited)

 

Common

Stock

 

Capital

Surplus

 

Retained

Earnings

 

Accumulated

Other

Comprehensive

Income (Loss)

 

Treasury

Stock

 

Total

Balance - January 1, 2022

 

$

55,057

 

$

1,110,520

 

 

$

2,176,998

 

 

$

126,314

 

 

$

(323,465

)

 

$

3,145,424

 

Total comprehensive income (loss)

 

 

—

 

 

 

—

 

 

 

431,682

 

 

 

(829,049

)

 

 

—

 

 

 

(397,367

)

Dividends ($1.49 per share)

 

 

—

 

 

 

—

 

 

 

(72,594

)

 

 

—

 

 

 

—

 

 

 

(72,594

)

Purchase of treasury stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(31,997

)

 

 

(31,997

)

Issuances of equity awards, net of forfeitures

 

 

—

 

 

 

(6,143

)

 

 

—

 

 

 

—

 

 

 

6,822

 

 

 

679

 

Recognition of equity-based compensation

 

 

—

 

 

 

20,812

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20,812

 

Sale of treasury stock

 

 

—

 

 

 

351

 

 

 

—

 

 

 

—

 

 

 

245

 

 

 

596

 

Exercise of stock options

 

 

—

 

 

 

409

 

 

 

—

 

 

 

—

 

 

 

1,131

 

 

 

1,540

 

Balance - December 31, 2022

 

$

55,057

 

 

$

1,125,949

 

 

$

2,536,086

 

 

$

(702,735

)

 

$

(347,264

)

 

$

2,667,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Balance - January 1, 2023

 

$

55,057

 

 

$

1,125,949

 

 

$

2,536,086

 

 

$

(702,735

)

 

$

(347,264

)

 

$

2,667,093

 

Total comprehensive income

 

 

—

 

 

 

—

 

 

 

350,024

 

 

 

145,800

 

 

 

—

 

 

 

495,824

 

Dividends ($1.53 per share)

 

 

—

 

 

 

—

 

 

 

(75,286

)

 

 

—

 

 

 

—

 

 

 

(75,286

)

Purchase of treasury stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,367

)

 

 

(8,367

)

Issuances of equity awards, net of forfeitures

 

 

—

 

 

 

(10,385

)

 

 

—

 

 

 

—

 

 

 

11,104

 

 

 

719

 

Recognition of equity-based compensation

 

 

—

 

 

 

17,975

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17,975

 

Sale of treasury stock

 

 

—

 

 

 

220

 

 

 

—

 

 

 

—

 

 

 

296

 

 

 

516

 

Exercise of stock options

 

 

—

 

 

 

604

 

 

 

—

 

 

 

—

 

 

 

1,341

 

 

 

1,945

 

Balance - December 31, 2023

 

$

55,057

 

 

$

1,134,363

 

 

$

2,810,824

 

 

$

(556,935

)

 

$

(342,890

)

 

$

3,100,419

 

Average Balances / Yields and Rates

 

UMB Financial Corporation

(tax - equivalent basis)

 

 

 

 

 

 

 

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

2023

 

2022

 

 

Average

 

Average

 

Average

 

Average

 

 

Balance

 

Yield/Rate

 

Balance

 

Yield/Rate

Assets

 

 

 

 

 

 

 

 

Loans, net of unearned interest

 

$

23,109,063

 

 

 

6.54

%

 

$

20,294,661

 

 

 

5.35

%

Securities:

 

 

 

 

 

 

 

 

Taxable

 

 

8,853,426

 

 

 

2.41

 

 

 

9,382,837

 

 

 

2.18

 

Tax-exempt

 

 

3,716,141

 

 

 

3.44

 

 

 

3,803,737

 

 

 

3.31

 

Total securities

 

 

12,569,567

 

 

 

2.72

 

 

 

13,186,574

 

 

 

2.50

 

Federal funds and resell agreements

 

 

235,284

 

 

 

5.97

 

 

 

656,092

 

 

 

4.30

 

Interest bearing due from banks

 

 

2,372,767

 

 

 

5.40

 

 

 

1,135,356

 

 

 

3.28

 

Trading securities

 

 

16,880

 

 

 

5.83

 

 

 

11,799

 

 

 

5.31

 

Total earning assets

 

 

38,303,561

 

 

 

5.21

 

 

 

35,284,482

 

 

 

4.20

 

Allowance for credit losses

 

 

(223,668

)

 

 

 

 

(188,299

)

 

 

Other assets

 

 

2,435,687

 

 

 

 

 

2,243,437

 

 

 

Total assets

 

$

40,515,580

 

 

 

 

$

37,339,620

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

22,556,514

 

 

 

3.76

%

 

$

18,919,537

 

 

 

2.04

%

Federal funds and repurchase agreements

 

 

1,883,392

 

 

 

4.61

 

 

 

2,424,171

 

 

 

3.08

 

Borrowed funds

 

 

2,286,271

 

 

 

5.26

 

 

 

396,874

 

 

 

5.31

 

Total interest-bearing liabilities

 

 

26,726,177

 

 

 

3.95

 

 

 

21,740,582

 

 

 

2.22

 

Noninterest-bearing demand deposits

 

 

10,118,748

 

 

 

 

 

12,454,413

 

 

 

Other liabilities

 

 

715,688

 

 

 

 

 

522,932

 

 

 

Shareholders' equity

 

 

2,954,967

 

 

 

 

 

2,621,693

 

 

 

Total liabilities and shareholders' equity

 

$

40,515,580

 

 

 

 

$

37,339,620

 

 

 

Net interest spread

 

 

 

 

1.26

%

 

 

 

 

1.98

%

Net interest margin

 

 

 

 

2.46

 

 

 

 

 

2.83

 

Average Balances / Yields and Rates

 

UMB Financial Corporation

(tax - equivalent basis)

 

 

 

 

 

 

 

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2023

 

2022

 

 

Average

 

Average

 

Average

 

Average

 

 

Balance

 

Yield/Rate

 

Balance

 

Yield/Rate

Assets

 

 

 

 

 

 

 

 

Loans, net of unearned interest

 

$

22,337,119

 

 

 

6.27

%

 

$

18,823,810

 

 

 

4.30

%

Securities:

 

 

 

 

 

 

 

 

Taxable

 

 

9,097,110

 

 

 

2.36

 

 

 

9,616,691

 

 

 

2.00

 

Tax-exempt

 

 

3,790,921

 

 

 

3.38

 

 

 

3,885,153

 

 

 

3.16

 

Total securities

 

 

12,888,031

 

 

 

2.66

 

 

 

13,501,844

 

 

 

2.33

 

Federal funds and resell agreements

 

 

316,072

 

 

 

5.58

 

 

 

965,911

 

 

 

1.98

 

Interest bearing due from banks

 

 

2,046,349

 

 

 

5.04

 

 

 

2,408,468

 

 

 

0.77

 

Trading securities

 

 

14,030

 

 

 

5.65

 

 

 

12,076

 

 

 

4.96

 

Total earning assets

 

 

37,601,601

 

 

 

4.96

 

 

 

35,712,109

 

 

 

3.26

 

Allowance for credit losses

 

 

(216,245

)

 

 

 

 

(184,072

)

 

 

Other assets

 

 

2,344,911

 

 

 

 

 

2,050,976

 

 

 

Total assets

 

$

39,730,267

 

 

 

 

$

37,579,013

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

21,122,305

 

 

 

3.33

%

 

$

18,063,498

 

 

 

0.93

%

Federal funds and repurchase agreements

 

 

2,175,415

 

 

 

4.28

 

 

 

2,777,089

 

 

 

1.47

 

Borrowed funds

 

 

2,311,238

 

 

 

5.25

 

 

 

309,204

 

 

 

5.00

 

Total interest-bearing liabilities

 

 

25,608,958

 

 

 

3.59

 

 

 

21,149,791

 

 

 

1.06

 

Noninterest-bearing demand deposits

 

 

10,640,344

 

 

 

 

 

13,264,146

 

 

 

Other liabilities

 

 

618,230

 

 

 

 

 

438,772

 

 

 

Shareholders' equity

 

 

2,862,735

 

 

 

 

 

2,726,304

 

 

 

Total liabilities and shareholders' equity

 

$

39,730,267

 

 

 

 

$

37,579,013

 

 

 

Net interest spread

 

 

 

 

1.37

%

 

 

 

 

2.20

%

Net interest margin

 

 

 

 

2.52

 

 

 

 

 

2.63

 

Business Segment Information

 

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2023

 

 

Commercial

Banking

 

Institutional

Banking

 

Personal

Banking

 

Total

Net interest income

 

$

154,289

 

 

$

44,150

 

$

32,083

 

 

$

230,522

Provision for credit losses

 

 

(1,926

)

 

 

653

 

 

 

1,273

 

 

 

—

 

Noninterest income

 

 

25,956

 

 

 

90,361

 

 

 

23,937

 

 

 

140,254

 

Noninterest expense

 

 

114,190

 

 

 

114,306

 

 

 

61,478

 

 

 

289,974

 

Income (loss) before taxes

 

 

67,981

 

 

 

19,552

 

 

 

(6,731

)

 

 

80,802

 

Income tax expense

 

 

5,321

 

 

 

2,913

 

 

 

1,645

 

 

 

9,879

 

Net income (loss)

 

$

62,660

 

 

$

16,639

 

 

$

(8,376

)

 

$

70,923

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2022

 

 

Commercial

Banking

 

Institutional

Banking

 

Personal

Banking

 

Total

Net interest income

 

$

151,856

 

 

$

55,063

 

 

 

38,247

 

 

$

245,166

 

Provision for credit losses

 

 

7,668

 

 

 

93

 

 

 

1,239

 

 

 

9,000

 

Noninterest income

 

 

22,233

 

 

 

80,055

 

 

 

23,209

 

 

 

125,497

 

Noninterest expense

 

 

86,682

 

 

 

86,791

 

 

 

64,345

 

 

 

237,818

 

Income (loss) before taxes

 

 

79,739

 

 

 

48,234

 

 

 

(4,128

)

 

 

123,845

 

Income tax expense (benefit)

 

 

15,176

 

 

 

9,264

 

 

 

(768

)

 

 

23,672

 

Net income (loss)

 

$

64,563

 

 

$

38,970

 

 

$

(3,360

)

 

$

100,173

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2023

 

 

Commercial

Banking

 

Institutional

Banking

 

Personal

Banking

 

Total

Net interest income

 

$

598,371

 

 

$

192,765

 

 

$

128,980

 

 

$

920,116

 

Provision for credit losses

 

 

33,184

 

 

 

1,406

 

 

 

6,637

 

 

 

41,227

 

Noninterest income

 

 

97,614

 

 

 

347,933

 

 

 

96,306

 

 

 

541,853

 

Noninterest expense

 

 

365,856

 

 

 

382,770

 

 

 

250,514

 

 

 

999,140

 

Income (loss) before taxes

 

 

296,945

 

 

 

156,522

 

 

 

(31,865

)

 

 

421,602

 

Income tax expense (benefit)

 

 

48,403

 

 

 

26,838

 

 

 

(3,663

)

 

 

71,578

 

Net income (loss)

 

$

248,542

 

 

$

129,684

 

 

$

(28,202

)

 

$

350,024

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2022

 

 

Commercial

Banking

 

Institutional

Banking

 

Personal

Banking

 

Total

Net interest income

 

$

596,031

 

 

$

159,679

 

 

$

158,087

 

 

$

913,797

 

Provision for credit losses

 

 

32,851

 

 

 

495

 

 

 

4,554

 

 

 

37,900

 

Noninterest income

 

 

122,614

 

 

 

323,794

 

 

 

107,825

 

 

 

554,233

 

Noninterest expense

 

 

332,912

 

 

 

320,976

 

 

 

244,231

 

 

 

898,119

 

Income before taxes

 

 

352,882

 

 

 

162,002

 

 

 

17,127

 

 

 

532,011

 

Income tax expense

 

 

67,134

 

 

 

31,889

 

 

 

1,306

 

 

 

100,329

 

Net income

 

$

285,748

 

 

$

130,113

 

 

$

15,821

 

 

$

431,682

 

 

The company has strategically aligned its operations into the following three reportable segments: Commercial Banking, Institutional Banking, and Personal Banking. Senior executive officers regularly evaluate business segment financial results produced by the company’s internal reporting system in deciding how to allocate resources and assess performance for individual business segments. The company’s reportable segments include certain corporate overhead, technology and service costs that are allocated based on methodologies that are applied consistently between periods. For comparability purposes, amounts in all periods are based on methodologies in effect at December 31, 2023.

Non-GAAP Financial Measures

Net operating income Non-GAAP reconciliations:

 

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2023

 

2022

 

2023

 

2022

Net income (GAAP)

 

$

70,923

 

 

$

100,173

 

 

$

350,024

 

 

$

431,682

 

Adjustments:

 

 

 

 

 

 

 

 

Acquisition expense

 

 

52

 

 

 

851

 

 

 

179

 

 

 

922

 

Severance expense

 

 

1,207

 

 

 

358

 

 

 

8,943

 

 

 

838

 

FDIC special assessment

 

 

52,840

 

 

 

—

 

 

 

52,840

 

 

 

—

 

Tax-impact of adjustments (i)

 

 

(12,984

)

 

 

(290

)

 

 

(14,871

)

 

 

(422

)

Total Non-GAAP adjustments (net of tax)

 

 

41,115

 

 

 

919

 

 

 

47,091

 

 

 

1,338

 

Net operating income (Non-GAAP)

 

$

112,038

 

 

$

101,092

 

 

$

397,115

 

 

$

433,020

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted (GAAP)

 

$

1.45

 

 

$

2.06

 

 

$

7.18

 

 

$

8.86

 

Acquisition expense

 

 

—

 

 

 

0.02

 

 

 

—

 

 

 

0.02

 

Severance expense

 

 

0.02

 

 

 

0.01

 

 

 

0.18

 

 

 

0.02

 

FDIC special assessment

 

 

1.08

 

 

 

—

 

 

 

1.08

 

 

 

—

 

Tax-impact of adjustments (i)

 

 

(0.26

)

 

 

(0.02

)

 

 

(0.30

)

 

 

(0.02

)

Operating earnings per share - diluted (Non-GAAP)

 

$

2.29

 

 

$

2.07

 

 

$

8.14

 

 

$

8.88

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.69

%

 

 

1.06

%

 

 

0.88

%

 

 

1.15

%

Return on average equity

 

 

9.52

 

 

 

15.16

 

 

 

12.23

 

 

 

15.83

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

1.10

%

 

 

1.07

%

 

 

1.00

%

 

 

1.15

%

Operating return on average equity

 

 

15.04

 

 

 

15.30

 

 

 

13.87

 

 

 

15.88

 

 

(i) Calculated using the company’s marginal tax rate of 24.0%.

Operating noninterest expense and operating efficiency ratio Non-GAAP reconciliations:

 

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2023

 

2022

 

2023

 

2022

Noninterest expense

 

$

289,974

 

 

$

237,818

 

 

$

999,140

 

 

$

898,119

 

Adjustments to arrive at operating noninterest expense (pre-tax):

 

 

 

 

 

 

 

 

Acquisition expense

 

 

52

 

 

 

851

 

 

 

179

 

 

 

922

 

Severance expense

 

 

1,207

 

 

 

358

 

 

 

8,943

 

 

 

838

 

FDIC special assessment

 

 

52,840

 

 

 

—

 

 

 

52,840

 

 

 

—

 

Total Non-GAAP adjustments (pre-tax)

 

 

54,099

 

 

 

1,209

 

 

 

61,962

 

 

 

1,760

 

Operating noninterest expense (Non-GAAP)

 

$

235,875

 

 

$

236,609

 

 

$

937,178

 

 

$

896,359

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

$

289,974

 

 

$

237,818

 

 

$

999,140

 

 

$

898,119

 

Less: Amortization of other intangibles

 

 

2,048

 

 

 

1,649

 

 

 

8,587

 

 

 

5,037

 

Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A)

 

$

287,926

 

 

$

236,169

 

 

$

990,553

 

 

$

893,082

 

 

 

 

 

 

 

 

 

 

Operating noninterest expense

 

$

235,875

 

 

$

236,609

 

 

$

937,178

 

 

$

896,359

 

Less: Amortization of other intangibles

 

 

2,048

 

 

 

1,649

 

 

 

8,587

 

 

 

5,037

 

Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B)

 

$

233,827

 

 

$

234,960

 

 

$

928,591

 

 

$

891,322

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

230,522

 

 

$

245,166

 

 

$

920,116

 

 

$

913,797

 

Noninterest income

 

 

140,254

 

 

 

125,497

 

 

 

541,853

 

 

 

554,233

 

Less: Gains on sales of securities available for sale, net

 

 

—

 

 

 

—

 

 

 

152

 

 

 

—

 

Total Non-GAAP Revenue (denominator A)

 

$

370,776

 

 

$

370,663

 

 

$

1,461,817

 

 

$

1,468,030

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (numerator A/denominator A)

 

 

77.65

%

 

 

63.72

%

 

 

67.76

%

 

 

60.84

%

Operating efficiency ratio (Non-GAAP) (numerator B/denominator A)

 

 

63.06

 

 

 

63.39

 

 

 

63.52

 

 

 

60.72

 

Operating pre-tax, pre-provision income non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2023

 

2022

 

2023

 

2022

Net interest income (GAAP)

 

$

230,522

 

$

245,166

 

$

920,116

 

$

913,797

Noninterest income (GAAP)

 

 

140,254

 

 

 

125,497

 

 

 

541,853

 

 

 

554,233

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

 

289,974

 

 

 

237,818

 

 

 

999,140

 

 

 

898,119

 

Adjustments to arrive at operating noninterest expense:

 

 

 

 

 

 

 

 

Acquisition expense

 

 

52

 

 

 

851

 

 

 

179

 

 

 

922

 

Severance expense

 

 

1,207

 

 

 

358

 

 

 

8,943

 

 

 

838

 

FDIC special assessment

 

 

52,840

 

 

 

—

 

 

 

52,840

 

 

 

—

 

Total Non-GAAP adjustments

 

 

54,099

 

 

 

1,209

 

 

 

61,962

 

 

 

1,760

 

Operating noninterest expense (Non-GAAP)

 

 

235,875

 

 

 

236,609

 

 

 

937,178

 

 

 

896,359

 

Operating pre-tax, pre-provision income (Non-GAAP)

 

$

134,901

 

 

$

134,054

 

 

$

524,791

 

 

$

571,671

 

 

 

 

 

 

 

 

 

 

Net interest income earnings per share - diluted (GAAP)

 

$

4.72

 

 

$

5.03

 

 

$

18.87

 

 

$

18.75

 

Noninterest income (GAAP)

 

 

2.87

 

 

 

2.57

 

 

 

11.11

 

 

 

11.37

 

Noninterest expense (GAAP)

 

 

5.93

 

 

 

4.88

 

 

 

20.48

 

 

 

18.43

 

Acquisition expense

 

 

—

 

 

 

0.02

 

 

 

—

 

 

 

0.02

 

Severance expense

 

 

0.02

 

 

 

0.01

 

 

 

0.18

 

 

 

0.02

 

FDIC special assessment

 

 

1.08

 

 

 

—

 

 

 

1.08

 

 

 

—

 

Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP)

 

$

2.76

 

 

$

2.75

 

 

$

10.76

 

 

$

11.73

 

Operating pre-tax, pre-provision income - FTE Non-GAAP reconciliations:

 

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2023

 

2022

 

2023

 

2022

Net interest income (GAAP)

 

$

230,522

 

$

245,166

 

$

920,116

 

$

913,797

Adjustments to arrive at net interest income - FTE:

 

 

 

 

 

 

 

 

Tax equivalent interest

 

 

6,670

 

 

 

6,663

 

 

 

26,359

 

 

 

25,794

 

Net interest income - FTE (Non-GAAP)

 

 

237,192

 

 

 

251,829

 

 

 

946,475

 

 

 

939,591

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

 

 

140,254

 

 

 

125,497

 

 

 

541,853

 

 

 

554,233

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

 

289,974

 

 

 

237,818

 

 

 

999,140

 

 

 

898,119

 

Adjustments to arrive at operating noninterest expense:

 

 

 

 

 

 

 

 

Acquisition expense

 

 

52

 

 

 

851

 

 

 

179

 

 

 

922

 

Severance expense

 

 

1,207

 

 

 

358

 

 

 

8,943

 

 

 

838

 

FDIC special assessment

 

 

52,840

 

 

 

—

 

 

 

52,840

 

 

 

—

 

Total Non-GAAP adjustments

 

 

54,099

 

 

 

1,209

 

 

 

61,962

 

 

 

1,760

 

Operating noninterest expense (Non-GAAP)

 

 

235,875

 

 

 

236,609

 

 

 

937,178

 

 

 

896,359

 

Operating pre-tax, pre-provision income - FTE (Non-GAAP)

 

$

141,571

 

 

$

140,717

 

 

$

551,150

 

 

$

597,465

 

 

 

 

 

 

 

 

 

 

Net interest income earnings per share - diluted (GAAP)

 

$

4.72

 

 

$

5.03

 

 

$

18.87

 

 

$

18.75

 

Tax equivalent interest

 

 

0.14

 

 

 

0.14

 

 

 

0.54

 

 

 

0.53

 

Net interest income - FTE (Non-GAAP)

 

 

4.86

 

 

 

5.17

 

 

 

19.41

 

 

 

19.28

 

Noninterest income (GAAP)

 

 

2.87

 

 

 

2.57

 

 

 

11.11

 

 

 

11.37

 

Noninterest expense (GAAP)

 

 

5.93

 

 

 

4.88

 

 

 

20.48

 

 

 

18.43

 

Acquisition expense

 

 

—

 

 

 

0.02

 

 

 

—

 

 

 

0.02

 

Severance expense

 

 

0.02

 

 

 

0.01

 

 

 

0.18

 

 

 

0.02

 

FDIC special assessment

 

 

1.08

 

 

 

—

 

 

 

1.08

 

 

 

—

 

Operating pre-tax, pre-provision income - FTE earnings per share - diluted (Non-GAAP)

 

$

2.90

 

 

$

2.89

 

 

$

11.30

 

 

$

12.26

 

Tangible book value non-GAAP reconciliations:

UMB Financial Corporation

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

 

 

 

 

 

 

As of December 31,

 

 

2023

 

2022

Total shareholders' equity (GAAP)

 

$

3,100,419

 

$

2,667,093

Less: Intangible assets

 

 

 

 

Goodwill

 

 

207,385

 

 

 

207,385

 

Other intangibles, net

 

 

71,012

 

 

 

78,724

 

Total intangibles, net

 

 

278,397

 

 

 

286,109

 

Total tangible shareholders' equity (Non-GAAP)

 

$

2,822,022

 

 

$

2,380,984

 

 

 

 

 

 

Total shares outstanding

 

 

48,554,127

 

 

 

48,319,404

 

 

 

 

 

 

Ratio of total shareholders' equity (book value) per share

 

$

63.85

 

 

$

55.20

 

Ratio of total tangible shareholders' equity (tangible book value) per share (Non-GAAP)

 

 

58.12

 

 

 

49.28

 

Operating return on average tangible equity excluding AOCI non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2023

 

2022

 

2023

 

2022

Average total shareholders' equity (GAAP)

 

$

2,954,967

 

 

$

2,621,693

 

 

$

2,862,735

 

 

$

2,726,304

 

Less: Average intangible assets

 

 

 

 

 

 

 

 

Average goodwill

 

 

207,385

 

 

 

194,805

 

 

 

207,385

 

 

 

183,512

 

Average other intangibles, net

 

 

72,322

 

 

 

46,243

 

 

 

74,868

 

 

 

22,414

 

Average total intangibles, net

 

 

279,707

 

 

 

241,049

 

 

 

282,254

 

 

 

205,926

 

Average total tangible shareholders' equity (Non-GAAP)

 

 

2,675,260

 

 

 

2,380,644

 

 

 

2,580,481

 

 

 

2,520,378

 

Less: Average accumulated other comprehensive loss (AOCI)

 

 

(730,891

)

 

 

(741,438

)

 

 

(681,436

)

 

 

(490,058

)

Average total tangible shareholders' equity excluding AOCI (Non-GAAP)

 

$

3,406,151

 

 

$

3,122,082

 

 

$

3,261,918

 

 

$

3,010,436

 

 

 

 

 

 

 

 

 

 

Net operating income (Non-GAAP)

 

$

112,038

 

 

$

101,092

 

 

$

397,115

 

 

$

433,020

 

 

 

 

 

 

 

 

 

 

Operating return on average tangible equity excluding AOCI (Non-GAAP)

 

 

13.05

%

 

 

12.85

%

 

 

12.17

%

 

 

14.38

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240125163449/en/

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