UMBF UMB Financial Corporation

UMB investment community call today, Monday, April 29, at 7:30 a.m. (CT) / 8:30 a.m. (ET)

First Quarter 2024 Financial Highlights

• GAAP net income of $110.3 million, or $2.25 per diluted share.
• Net operating income(i) of $120.7 million, or $2.47 per diluted share.
• Average loans increased 4.2% on a linked-quarter, annualized basis, to $23.4 billion.
• Average loans increased $2.1 billion, or 9.8%, as compared to the first quarter of 2023.
• Average deposits increased 10.4% on a linked-quarter, annualized basis, to $33.5 billion.
• Net interest income increased 3.9% from the linked quarter.
• Net interest margin was 2.48%, an increase of two basis points from the linked quarter.
• Noninterest income increased 22.3% from the first quarter of 2023, equal to 39.9% of total revenue.
• Credit quality remained strong, with net charge-offs of just 0.05% of average loans.

UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the first quarter of 2024 of $110.3 million, or $2.25 per diluted share, compared to $70.9 million, or $1.45 per diluted share, in the fourth quarter of 2023 (linked quarter) and $92.4 million, or $1.90 per diluted share, in the first quarter of 2023. The results for the first quarter of 2024 and the fourth quarter of 2023 include pre-tax expense of $13.0 million and $52.8 million, respectively, 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 $120.7 million, or $2.47 per diluted share, for the first quarter of 2024, compared to $112.0 million, or $2.29 per diluted share, for the linked quarter and $92.8 million, or $1.91 per diluted share, for the first quarter of 2023. 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 $157.5 million, or $3.22 per diluted share, for the first quarter of 2024, compared to $134.9 million, or $2.76 per diluted share, for the linked quarter, and $135.4 million, or $2.78 per diluted share, for the first quarter of 2023. These operating PTPP results represent increases of 16.7% on a linked-quarter basis and 16.3% compared to the first quarter of 2023.

“Our 2024 is off to a great start, with strong first quarter financial results driven by balance sheet and net interest income growth, net interest margin expansion, double-digit growth in our fee income revenue, and stable credit metrics,” said Mariner Kemper, UMB Financial Corporation chairman and chief executive officer.

“Our performance validates the perspective I shared earlier this year that the dramatized and highly exaggerated regional bank crisis from a year ago—and similar frenzy over idiosyncratic commercial real estate headlines earlier this year—do not apply to the whole regional banking industry, which remains on strong footing. As students of history, we believe in gravity and that what goes up will eventually come down. We run the company based on this expectation.

“While indications suggest the economy is on reasonably stable footing, persistently high inflation, an upcoming presidential election cycle, and a potential 'No Landing' scenario may dictate a constrictive Federal Reserve monetary policy that could pose economic challenges.

“In the first quarter of 2024, average loans increased 9.8% to $23.4 billion, while average deposits increased $2.0 billion or 6.2%, from one year ago. Our financial metrics demonstrate our borrowers and depository clients remain cautiously optimistic and selective with their investments. The overall loan portfolio remains healthy as exemplified by net charge-offs averaging less than 10 basis points in each of the past seven quarters, and non-performing loans at a meager eight basis points of total loans. Also of note for the quarter is that we closed on the purchase of a co-branded credit card portfolio partnership with Rural King, a preeminent, family-owned general merchandise store with more than 130 locations in a 13-state footprint.”

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

First Quarter 2024 earnings discussion

Summary of quarterly financial results

 

UMB Financial Corporation

 

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

 

 

 

 

 

 

 

 

 

 

 

Q1

 

 

Q4

 

 

Q1

 

 

 

2024

 

 

2023

 

 

2023

 

Net income (GAAP)

 

$

110,258

 

 

$

70,923

 

 

$

92,437

 

Earnings per share - diluted (GAAP)

 

 

2.25

 

 

 

1.45

 

 

 

1.90

 

 

 

 

 

 

 

 

 

 

 

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

 

 

157,451

 

 

 

134,901

 

 

 

135,369

 

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

 

 

3.22

 

 

 

2.76

 

 

 

2.78

 

 

 

 

 

 

 

 

 

 

 

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

 

 

163,967

 

 

 

141,571

 

 

 

141,924

 

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

 

 

3.35

 

 

 

2.90

 

 

 

2.91

 

 

 

 

 

 

 

 

 

 

 

Net operating income (Non-GAAP)(i)

 

 

120,712

 

 

 

112,038

 

 

 

92,836

 

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

 

 

2.47

 

 

 

2.29

 

 

 

1.91

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.06

%

 

 

0.69

%

 

 

0.97

%

Return on average equity

 

 

14.11

 

 

 

9.52

 

 

 

13.76

 

Efficiency ratio

 

 

63.44

 

 

 

77.65

 

 

 

63.12

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP(i)

 

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

1.16

%

 

 

1.10

%

 

 

0.98

%

Operating return on average equity

 

 

15.44

 

 

 

15.04

 

 

 

13.82

 

Operating efficiency ratio

 

 

60.04

 

 

 

63.06

 

 

 

62.98

 

(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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

 

Q4

 

 

Q1

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2024

 

 

2023

 

 

2023

 

 

LQ

 

 

PY

 

Net interest income

 

$

239,434

 

 

$

230,522

 

 

$

241,696

 

 

$

8,912

 

 

$

(2,262

)

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust and securities processing

 

 

69,478

 

 

 

66,584

 

 

 

62,359

 

 

 

2,894

 

 

 

7,119

 

Trading and investment banking

 

 

5,462

 

 

 

5,751

 

 

 

5,308

 

 

 

(289

)

 

 

154

 

Service charges on deposit accounts

 

 

20,757

 

 

 

21,330

 

 

 

21,159

 

 

 

(573

)

 

 

(402

)

Insurance fees and commissions

 

 

283

 

 

 

238

 

 

 

274

 

 

 

45

 

 

 

9

 

Brokerage fees

 

 

13,160

 

 

 

13,439

 

 

 

13,676

 

 

 

(279

)

 

 

(516

)

Bankcard fees

 

 

21,968

 

 

 

18,672

 

 

 

18,172

 

 

 

3,296

 

 

 

3,796

 

Investment securities gains (losses), net

 

 

9,371

 

 

 

1,014

 

 

 

(5,324

)

 

 

8,357

 

 

 

14,695

 

Other

 

 

18,765

 

 

 

13,226

 

 

 

14,576

 

 

 

5,539

 

 

 

4,189

 

Total noninterest income

 

$

159,244

 

 

$

140,254

 

 

$

130,200

 

 

$

18,990

 

 

$

29,044

 

Total revenue

 

$

398,678

 

 

$

370,776

 

 

$

371,896

 

 

$

27,902

 

 

$

26,782

 

Net interest income (FTE)

 

$

245,950

 

 

$

237,192

 

 

$

248,251

 

 

 

 

 

 

 

Net interest margin (FTE)

 

 

2.48

%

 

 

2.46

%

 

 

2.76

%

 

 

 

 

 

 

Total noninterest income as a % of total revenue

 

 

39.9

 

 

 

37.8

 

 

 

35.0

 

 

 

 

 

 

 

Net interest income

• First quarter 2024 net interest income totaled $239.4 million, an increase of $8.9 million, or 3.9%, from the linked quarter, driven primarily by continued growth in average loans and higher levels of liquidity, $1.4 million in municipal bond hedge gain amortization, partially offset by higher interest expense.
• Average earning assets increased $1.6 billion, or 4.1%, from the linked quarter, largely driven by an increase of $931.4 million in interest-bearing due from banks, an increase of $428.4 million in average securities, and an increase of $245.0 million in average loans.
• Average interest-bearing liabilities increased $1.3 billion, or 4.9%, from the linked quarter, primarily driven by increases of $903.2 million in interest-bearing deposits and $501.4 million in federal funds and repurchase agreements, partially offset by a decrease of $102.8 million in borrowed funds. Average noninterest-bearing demand deposits decreased $52.3 million, or 0.5%, as compared to the linked quarter.
• Net interest margin for the first quarter was 2.48%, an increase of two basis points from the linked quarter, driven by increased loan yields, the benefit of free funds, favorable impact of bond hedge gain amortization, and earning asset mix changes, partially offset by the increased cost of interest-bearing liabilities. The cost of interest-bearing liabilities increased eight basis points to 4.03%. Total cost of funds increased nine basis points from the linked quarter to 2.96%. Both average loan yields and earning asset yields increased 10 basis points from the linked quarter.
• On a year-over-year basis, net interest income decreased $2.3 million, or 0.9%, driven by higher interest expense, primarily due to an unfavorable mix shift in the composition of liabilities and new deposit client acquisitions at prevailing market rates. This decrease was partially offset by a $2.1 billion, or 9.8%, increase in average loans as well as the benefit from higher short-term interest rates on loan pricing and yields.
• Compared to the first quarter of 2023, average earning assets increased $3.4 billion, or 9.4%, largely driven by the increase in average loans noted above and an increase of $1.8 billion in interest-bearing due from banks, partially offset by a decrease of $244.7 million in federal funds sold and resell agreements.
• Average deposits increased 6.2% compared to the first quarter of 2023. Average noninterest-bearing demand deposit balances decreased 15.5% compared to the first quarter of 2023, driven by migration to rate-bearing deposit categories, as expected in a higher interest rate environment. Average demand deposit balances comprised 30.0% of total deposits, compared to 31.0% in the linked quarter and 37.8% in the first quarter of 2023.
• Average borrowed funds decreased $102.8 million as compared to the linked quarter and increased $983.1 million as compared to the first quarter of 2023, driven by short-term borrowings with the Federal Home Loan Bank and the Federal Reserve.

Noninterest income

• First quarter 2024 noninterest income increased $19.0 million, or 13.5%, on a linked-quarter basis, largely due to:
  • $8.4 million in higher investment securities gains, primarily driven by a net $8.6 million gain on disposition of two of the company's non-marketable securities. The company recognized a gain of $10.7 million and a loss of $2.1 million, respectively, on these two securities.
  • An increase of $5.8 million in other miscellaneous income, recorded in other income, related to a $4.0 million legal settlement and a $1.8 million gain on sale of land, both recorded during the first quarter of 2024.
  • An increase of $3.3 million in bankcard income primarily driven by higher interchange revenue and lower rebates and rewards expense as compared to the linked quarter.
  • Increases of $1.1 million in trust income, $1.0 million in fund services income, and $0.8 million in corporate trust income, all recorded in trust and securities processing.
  • These increases were partially offset by decreases of $0.8 million in derivative income, recorded in other income, and $0.6 million in service charges on deposits.
• Compared to the prior year, noninterest income in the first quarter of 2024 increased $29.0 million, or 22.3%, primarily driven by:
  • An increase of $14.7 million in investment securities gains, primarily driven by a $10.7 million gain on disposition of one of the company's non-marketable securities during the first quarter of 2024, coupled with the impairment loss on an available-for-sale subordinated debt security recorded in the prior year.
  • An increase of $5.7 million in other miscellaneous income, recorded in other income, related to a $4.0 million legal settlement and a $1.8 million gain on sale of land, both recorded during the first quarter of 2024.
  • Increases of $5.0 million in fund services income, $1.1 million in trust income, and $1.0 million in corporate trust income, all recorded in trust and securities processing.
  • An increase of $3.8 million in bankcard income primarily driven by higher interchange revenue and lower rebates and rewards expense as compared to the prior year.
  • These increases were partially offset by a decrease of $2.4 million in derivative income, recorded in other income.

Noninterest expense

Summary of noninterest expense

 

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q4

 

Q1

 

CQ vs.

 

CQ vs.

 

 

2024

 

2023

 

2023

 

LQ

 

PY

Salaries and employee benefits

 

$

143,006

 

$

134,231

 

$

142,498

 

$

8,775

 

 

$

508

 

Occupancy, net

 

 

12,270

 

 

12,296

 

 

12,177

 

 

(26

)

 

 

93

 

Equipment

 

 

16,503

 

 

16,579

 

 

17,849

 

 

(76

)

 

 

(1,346

)

Supplies and services

 

 

3,301

 

 

5,546

 

 

3,875

 

 

(2,245

)

 

 

(574

)

Marketing and business development

 

 

6,025

 

 

6,659

 

 

5,335

 

 

(634

)

 

 

690

 

Processing fees

 

 

27,936

 

 

27,271

 

 

23,240

 

 

665

 

 

 

4,696

 

Legal and consulting

 

 

7,894

 

 

8,424

 

 

7,285

 

 

(530

)

 

 

609

 

Bankcard

 

 

10,567

 

 

8,677

 

 

7,133

 

 

1,890

 

 

 

3,434

 

Amortization of other intangible assets

 

 

1,960

 

 

2,048

 

 

2,298

 

 

(88

)

 

 

(338

)

Regulatory fees

 

 

19,395

 

 

59,183

 

 

5,551

 

 

(39,788

)

 

 

13,844

 

Other

 

 

5,947

 

 

9,060

 

 

9,811

 

 

(3,113

)

 

 

(3,864

)

Total noninterest expense

 

$

254,804

 

$

289,974

 

$

237,052

 

$

(35,170

)

 

$

17,752

 

• GAAP noninterest expense for the first quarter of 2024 was $254.8 million, a decrease of $35.2 million, or 12.1%, from the linked quarter and an increase of $17.8 million, or 7.5% from the first quarter of 2023. Operating noninterest expense, a non-GAAP financial measure reconciled later in this release to noninterest expense, the nearest comparable GAAP measure, was $241.2 million for the first quarter of 2024, an increase of $5.4 million, or 2.3%, from the linked quarter and an increase of $4.7 million, or 2.0%, from the first quarter of 2023.
• The linked-quarter decrease in GAAP noninterest expense was driven by:
  • A decrease of $39.8 million in regulatory fees expense, driven by the lower FDIC special assessment levied on banks to recoup the losses related to two of the bank failures in March 2023. The results for the first quarter of 2024 and the fourth quarter of 2023 include pre-tax expense of $13.0 million and $52.8 million, respectively, for the industry-wide FDIC special assessment.
  • A decrease of $2.2 million in supplies driven by purchases of computers during the linked quarter.
  • Decreases of $1.5 million in operational losses and $1.3 million in charitable contribution expense, both recorded in other expense.
  • These decreases were partially offset by a seasonal increase of $9.1 million in payroll taxes, insurance, and 401(k) expense recognized in the first quarter.
• The year-over-year increase in GAAP noninterest expense was driven by:
  • An increase of $13.8 million in regulatory fees, primarily driven by the aforementioned $13.0 million FDIC special assessment recorded in the first quarter of 2024.
  • An increase of $4.7 million in processing fees expense due to the ongoing modernization of the company’s core systems and the timing of multiple software projects.
  • An increase of $3.4 million in bankcard expense driven by higher administrative expenses and fraud losses.
  • These increases were partially offset by decreases of $3.5 million in operational losses, recorded in other expense, and $1.3 million in equipment expense, driven by reduced software expense.

Income taxes

• The company’s effective tax rate was 17.6% for the three months ended March 31, 2024, compared to 17.2% for the same period in 2023.

Balance sheet

• Average total assets for the first quarter of 2024 were $42.0 billion compared to $40.5 billion for the linked quarter and $38.5 billion for the same period in 2023.

Summary of average loans and leases - QTD Average

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

 

Q4

 

 

Q1

 

 

CQ vs.

CQ vs.

 

 

 

2024

 

 

2023

 

 

2023

 

 

LQ

PY

 

Commercial and industrial

 

$

9,942,457

 

 

$

9,825,043

 

 

$

9,287,319

 

 

$

117,414

 

$

655,138

 

Specialty lending

 

 

485,989

 

 

 

496,816

 

 

 

564,633

 

 

 

(10,827

)

 

(78,644

)

Commercial real estate

 

 

9,026,511

 

 

 

8,890,057

 

 

 

7,812,140

 

 

 

136,454

 

 

1,214,371

 

Consumer real estate

 

 

2,968,320

 

 

 

2,945,114

 

 

 

2,738,184

 

 

 

23,206

 

 

230,136

 

Consumer

 

 

154,062

 

 

 

153,791

 

 

 

136,571

 

 

 

271

 

 

17,491

 

Credit cards

 

 

489,546

 

 

 

495,502

 

 

 

453,704

 

 

 

(5,956

)

 

35,842

 

Leases and other

 

 

287,158

 

 

 

302,740

 

 

 

279,049

 

 

 

(15,582

)

 

8,109

 

Total loans

 

$

23,354,043

 

 

$

23,109,063

 

 

$

21,271,600

 

 

$

244,980

 

$

2,082,443

 

• Average loans for the first quarter of 2024 increased $245.0 million, or 1.1%, on a linked-quarter basis and $2.1 billion, or 9.8%, compared to the first quarter of 2023.

Summary of average securities - QTD Average

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

 

Q4

 

 

Q1

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2024

 

 

2023

 

 

2023

 

 

LQ

 

 

PY

 

Securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

1,127,611

 

 

$

859,114

 

 

$

783,170

 

 

$

268,497

 

 

$

344,441

 

U.S. Agencies

 

 

199,719

 

 

 

169,723

 

 

 

171,825

 

 

 

29,996

 

 

 

27,894

 

Mortgage-backed

 

 

3,595,619

 

 

 

3,466,152

 

 

 

3,938,137

 

 

 

129,467

 

 

 

(342,518

)

State and political subdivisions

 

 

1,254,148

 

 

 

1,218,176

 

 

 

1,356,785

 

 

 

35,972

 

 

 

(102,637

)

Corporates

 

 

341,142

 

 

 

345,634

 

 

 

364,854

 

 

 

(4,492

)

 

 

(23,712

)

Collateralized loan obligations

 

 

347,063

 

 

 

349,149

 

 

 

348,477

 

 

 

(2,086

)

 

 

(1,414

)

Total securities available for sale

 

$

6,865,302

 

 

$

6,407,948

 

 

$

6,963,248

 

 

$

457,354

 

 

$

(97,946

)

Securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Agencies

 

$

123,225

 

 

$

123,195

 

 

$

123,106

 

 

$

30

 

 

$

119

 

Mortgage-backed

 

 

2,707,780

 

 

 

2,756,528

 

 

 

2,934,113

 

 

 

(48,748

)

 

 

(226,333

)

State and political subdivisions

 

 

2,821,799

 

 

 

2,825,138

 

 

 

2,814,912

 

 

 

(3,339

)

 

 

6,887

 

Total securities held to maturity

 

$

5,652,804

 

 

$

5,704,861

 

 

$

5,872,131

 

 

$

(52,057

)

 

$

(219,327

)

Trading securities

 

$

17,893

 

 

$

16,880

 

 

$

9,258

 

 

$

1,013

 

 

$

8,635

 

Other securities

 

 

478,805

 

 

 

456,758

 

 

 

359,238

 

 

 

22,047

 

 

 

119,567

 

Total securities

 

$

13,014,804

 

 

$

12,586,447

 

 

$

13,203,875

 

 

$

428,357

 

 

$

(189,071

)

• Average total securities increased 3.4% on a linked-quarter basis and decreased 1.4% compared to the first quarter of 2023.
• At March 31, 2024, the unrealized pre-tax net loss on the available-for-sale securities portfolio was $665.9 million, or 9.2% of the $7.2 billion amortized cost balance. At March 31, 2024, the unrealized pre-tax net loss on the securities designated as held to maturity was $601.3 million, or 10.7% of the $5.6 billion amortized cost value.

Summary of average deposits - QTD Average

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

 

Q4

 

 

Q1

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2024

 

 

2023

 

 

2023

 

 

LQ

 

 

PY

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

10,066,409

 

 

$

10,118,748

 

 

$

11,919,277

 

 

$

(52,339

)

 

$

(1,852,868

)

Interest-bearing demand and savings

 

 

20,701,659

 

 

 

19,457,878

 

 

 

18,427,662

 

 

 

1,243,781

 

 

 

2,273,997

 

Time deposits

 

 

2,758,064

 

 

 

3,098,636

 

 

 

1,215,506

 

 

 

(340,572

)

 

 

1,542,558

 

Total deposits

 

$

33,526,132

 

 

$

32,675,262

 

 

$

31,562,445

 

 

$

850,870

 

 

$

1,963,687

 

Noninterest bearing deposits as % of total

 

 

30.0

%

 

 

31.0

%

 

 

37.8

%

 

 

 

 

 

 

• Average deposits increased 2.6% on a linked-quarter basis and 6.2% compared to the first quarter of 2023.
• As of March 31, 2024, total estimated uninsured deposits were $25.3 billion, or approximately 68.4% of total deposits. Estimated uninsured deposits, when adjusted to exclude affiliate (company-owned) and collateralized deposits, were $17.9 billion, and represented approximately 48.6% of total deposits. During the quarter, estimated adjusted uninsured deposits averaged $14.4 billion, or approximately 43.0% of total average deposits.

Capital

Capital information

 

UMB Financial Corporation

 

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

 

 

 

 

 

 

 

 

 

 

 

March 31, 2024

 

 

December 31, 2023

 

 

March 31, 2023

 

Total equity

 

$

3,152,816

 

 

$

3,100,419

 

 

$

2,814,659

 

Accumulated other comprehensive loss, net

 

 

(594,538

)

 

 

(556,935

)

 

 

(626,776

)

Book value per common share

 

 

64.68

 

 

 

63.85

 

 

 

58.03

 

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

 

 

59.01

 

 

 

58.12

 

 

 

52.17

 

 

 

 

 

 

 

 

 

 

 

Regulatory capital:

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital

 

$

3,503,837

 

 

$

3,418,676

 

 

$

3,196,111

 

Tier 1 capital

 

 

3,503,837

 

 

 

3,418,676

 

 

 

3,196,111

 

Total capital

 

 

4,115,097

 

 

 

4,014,910

 

 

 

3,776,407

 

 

 

 

 

 

 

 

 

 

 

Regulatory capital ratios:

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio

 

 

11.09

%

 

 

10.94

%

 

 

10.57

%

Tier 1 risk-based capital ratio

 

 

11.09

 

 

 

10.94

 

 

 

10.57

 

Total risk-based capital ratio

 

 

13.03

 

 

 

12.85

 

 

 

12.49

 

Tier 1 leverage ratio

 

 

8.39

 

 

 

8.49

 

 

 

8.35

 

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

• At March 31, 2024, 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

 

 

2024

 

 

2023

 

 

2023

 

 

2023

 

 

2023

 

Net charge-offs (recoveries) - total loans

 

$

3,017

 

 

$

1,352

 

 

$

4,618

 

 

$

(139

)

 

$

4,643

 

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

 

 

0.05

%

 

 

0.02

%

 

 

0.08

%

 

 

(0.00

)%

 

 

0.09

%

Loans over 90 days past due

 

$

3,076

 

 

$

3,111

 

 

$

3,044

 

 

$

10,675

 

 

$

1,723

 

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

 

 

0.01

%

 

 

0.01

%

 

 

0.01

%

 

 

0.05

%

 

 

0.01

%

Nonaccrual and restructured loans

 

$

17,756

 

 

$

13,212

 

 

$

17,042

 

 

$

19,347

 

 

$

15,480

 

Nonaccrual and restructured loans as a % of total loans

 

 

0.08

%

 

 

0.06

%

 

 

0.07

%

 

 

0.09

%

 

 

0.07

%

Provision for credit losses

 

$

10,000

 

 

$

—

 

 

$

4,977

 

 

$

13,000

 

 

$

23,250

 

• Provision for credit losses for the first quarter increased $10.0 million from the linked quarter and decreased $13.3 million from the first quarter of 2023. This quarter's provision included approximately $6.7 million related to the purchase of $109.4 million in co-branded credit card receivables. Excluding this, the variances in provision expense were driven largely by changes in macro-economic variables and credit metrics in the current period as compared to the prior periods.
• Net charge-offs for the first quarter totaled $3.0 million, or 0.05% of average loans, compared to $1.4 million, or 0.02% of average loans in the linked quarter, and $4.6 million, or 0.09% of average loans for the first quarter of 2023.

Dividend Declaration and Share Repurchase Authorization

At the company’s quarterly board meeting, the Board of Directors declared a $0.39 per share quarterly cash dividend, payable on July 1, 2024, to shareholders of record at the close of business on June 10, 2024.

The Board also approved the repurchase of up to 1,000,000 shares of the company's common stock. Share repurchases may occur from time to time at any point until the regular meeting of the Board that immediately follows the 2025 annual meeting of the company’s shareholders. Shares acquired under the repurchase program may be available for reissuance or resale, including in connection with the company's compensation plans and dividend reinvestment plan. Under the repurchase program, the company may acquire the shares from time to time in open market or privately negotiated transactions, at the discretion of management.

Conference Call

The company will host a call for the investment community on Monday, April 29, 2024, at 7:30 a.m. (CT). This call has been rescheduled from the previously announced date and time.

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 397231. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial Conference Call

A replay of the conference call may be heard through May 13, 2024, by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 182605. 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, 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, 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, operating PTPP, operating PTPP EPS, operating PTPP-FTE, operating PTPP-FTE 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- 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 and severance, 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 and severance, 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.

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, 2023, 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

(unaudited, dollars in thousands)

 

 

 

 

 

 

March 31,

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

Loans

 

$

23,637,649

 

 

$

21,812,972

 

Allowance for credit losses on loans

 

 

(226,159

)

 

 

(210,509

)

Net loans

 

 

23,411,490

 

 

 

21,602,463

 

Loans held for sale

 

 

4,415

 

 

 

1,422

 

Securities:

 

 

 

 

Available for sale

 

 

6,541,391

 

 

 

6,907,897

 

Held to maturity, net of allowance for credit losses

 

 

5,622,617

 

 

 

5,859,323

 

Trading securities

 

 

40,187

 

 

 

19,823

 

Other securities

 

 

473,434

 

 

 

416,337

 

Total securities

 

 

12,677,629

 

 

 

13,203,380

 

Federal funds sold and resell agreements

 

 

180,275

 

 

 

368,158

 

Interest-bearing due from banks

 

 

6,673,104

 

 

 

3,121,323

 

Cash and due from banks

 

 

356,963

 

 

 

472,248

 

Premises and equipment, net

 

 

231,918

 

 

 

260,623

 

Accrued income

 

 

221,447

 

 

 

181,586

 

Goodwill

 

 

207,385

 

 

 

207,385

 

Other intangibles, net

 

 

69,052

 

 

 

76,426

 

Other assets

 

 

1,309,697

 

 

 

1,112,176

 

Total assets

 

$

45,343,375

 

 

$

40,607,190

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Deposits:

 

 

 

 

Noninterest-bearing demand

 

$

13,251,090

 

 

$

12,488,803

 

Interest-bearing demand and savings

 

 

21,018,911

 

 

 

16,760,603

 

Time deposits under $250,000

 

 

2,044,280

 

 

 

456,129

 

Time deposits of $250,000 or more

 

 

599,329

 

 

 

2,226,369

 

Total deposits

 

 

36,913,610

 

 

 

31,931,904

 

Federal funds purchased and repurchase agreements

 

 

2,225,474

 

 

 

2,160,808

 

Short-term debt

 

 

1,800,000

 

 

 

2,800,000

 

Long-term debt

 

 

383,742

 

 

 

381,796

 

Accrued expenses and taxes

 

 

374,888

 

 

 

207,633

 

Other liabilities

 

 

492,845

 

 

 

310,390

 

Total liabilities

 

 

42,190,559

 

 

 

37,792,531

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

Common stock

 

 

55,057

 

 

 

55,057

 

Capital surplus

 

 

1,127,806

 

 

 

1,120,877

 

Retained earnings

 

 

2,903,106

 

 

 

2,609,928

 

Accumulated other comprehensive loss, net

 

 

(594,538

)

 

 

(626,776

)

Treasury stock

 

 

(338,615

)

 

 

(344,427

)

Total shareholders' equity

 

 

3,152,816

 

 

 

2,814,659

 

Total liabilities and shareholders' equity

 

$

45,343,375

 

 

$

40,607,190

 

Consolidated Statements of Income

 

UMB Financial Corporation

 

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

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2024

 

 

2023

 

INTEREST INCOME

 

 

 

 

 

 

Loans

 

$

385,566

 

 

$

308,441

 

Securities:

 

 

 

 

 

 

Taxable interest

 

 

61,111

 

 

 

53,049

 

Tax-exempt interest

 

 

25,333

 

 

 

25,306

 

Total securities income

 

 

86,444

 

 

 

78,355

 

Federal funds and resell agreements

 

 

3,062

 

 

 

5,651

 

Interest-bearing due from banks

 

 

44,688

 

 

 

16,166

 

Trading securities

 

 

305

 

 

 

134

 

Total interest income

 

 

520,065

 

 

 

408,747

 

INTEREST EXPENSE

 

 

 

 

 

 

Deposits

 

 

223,875

 

 

 

127,899

 

Federal funds and repurchase agreements

 

 

27,662

 

 

 

23,302

 

Other

 

 

29,094

 

 

 

15,850

 

Total interest expense

 

 

280,631

 

 

 

167,051

 

Net interest income

 

 

239,434

 

 

 

241,696

 

Provision for credit losses

 

 

10,000

 

 

 

23,250

 

Net interest income after provision for credit losses

 

 

229,434

 

 

 

218,446

 

NONINTEREST INCOME

 

 

 

 

 

 

Trust and securities processing

 

 

69,478

 

 

 

62,359

 

Trading and investment banking

 

 

5,462

 

 

 

5,308

 

Service charges on deposit accounts

 

 

20,757

 

 

 

21,159

 

Insurance fees and commissions

 

 

283

 

 

 

274

 

Brokerage fees

 

 

13,160

 

 

 

13,676

 

Bankcard fees

 

 

21,968

 

 

 

18,172

 

Investment securities gains (losses), net

 

 

9,371

 

 

 

(5,324

)

Other

 

 

18,765

 

 

 

14,576

 

Total noninterest income

 

 

159,244

 

 

 

130,200

 

NONINTEREST EXPENSE

 

 

 

 

 

 

Salaries and employee benefits

 

 

143,006

 

 

 

142,498

 

Occupancy, net

 

 

12,270

 

 

 

12,177

 

Equipment

 

 

16,503

 

 

 

17,849

 

Supplies and services

 

 

3,301

 

 

 

3,875

 

Marketing and business development

 

 

6,025

 

 

 

5,335

 

Processing fees

 

 

27,936

 

 

 

23,240

 

Legal and consulting

 

 

7,894

 

 

 

7,285

 

Bankcard

 

 

10,567

 

 

 

7,133

 

Amortization of other intangible assets

 

 

1,960

 

 

 

2,298

 

Regulatory fees

 

 

19,395

 

 

 

5,551

 

Other

 

 

5,947

 

 

 

9,811

 

Total noninterest expense

 

 

254,804

 

 

 

237,052

 

Income before income taxes

 

 

133,874

 

 

 

111,594

 

Income tax expense

 

 

23,616

 

 

 

19,157

 

NET INCOME

 

$

110,258

 

 

$

92,437

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

Net income – basic

 

$

2.27

 

 

$

1.91

 

Net income – diluted

 

 

2.25

 

 

 

1.90

 

Dividends

 

 

0.39

 

 

 

0.38

 

Weighted average shares outstanding – basic

 

 

48,663,515

 

 

 

48,435,016

 

Weighted average shares outstanding – diluted

 

 

48,920,863

 

 

 

48,746,562

 

Consolidated Statements of Comprehensive Income

 

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

2024

 

 

2023

 

Net income

 

$

110,258

 

 

$

92,437

 

Other comprehensive (loss) income, before tax:

 

 

 

 

Unrealized gains and losses on debt securities:

 

 

 

 

Change in unrealized holding gains and losses, net

 

 

(41,553

)

 

 

93,657

 

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

 

 

(139

)

 

 

433

 

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

 

 

8,789

 

 

 

9,983

 

Change in unrealized gains and losses on debt securities

 

 

(32,903

)

 

 

104,073

 

Unrealized gains and losses on derivative hedges:

 

 

 

 

Change in unrealized gains and losses on derivative hedges, net

 

 

(13,658

)

 

 

(1,527

)

Less: Reclassification adjustment for net gains included in net income

 

 

(3,660

)

 

 

(2,561

)

Change in unrealized gains and losses on derivative hedges

 

 

(17,318

)

 

 

(4,088

)

Other comprehensive (loss) income, before tax

 

 

(50,221

)

 

 

99,985

 

Income tax benefit (expense)

 

 

12,618

 

 

 

(24,026

)

Other comprehensive (loss) income

 

 

(37,603

)

 

 

75,959

 

Comprehensive income

 

$

72,655

 

 

$

168,396

 

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, 2023

 

$

55,057

 

 

$

1,125,949

 

 

$

2,536,086

 

 

$

(702,735

)

 

$

(347,264

)

 

$

2,667,093

 

Total comprehensive income

 

 

—

 

 

 

—

 

 

 

92,437

 

 

 

75,959

 

 

 

—

 

 

 

168,396

 

Dividends ($0.38 per share)

 

 

—

 

 

 

—

 

 

 

(18,595

)

 

 

—

 

 

 

—

 

 

 

(18,595

)

Purchase of treasury stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,902

)

 

 

(7,902

)

Issuances of equity awards, net of forfeitures

 

 

—

 

 

 

(9,764

)

 

 

—

 

 

 

—

 

 

 

10,483

 

 

 

719

 

Recognition of equity-based compensation

 

 

—

 

 

 

4,516

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,516

 

Sale of treasury stock

 

 

—

 

 

 

71

 

 

 

—

 

 

 

—

 

 

 

56

 

 

 

127

 

Exercise of stock options

 

 

—

 

 

 

105

 

 

 

—

 

 

 

—

 

 

 

200

 

 

 

305

 

Balance - March 31, 2023

 

$

55,057

 

 

$

1,120,877

 

 

$

2,609,928

 

 

$

(626,776

)

 

$

(344,427

)

 

$

2,814,659

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance - January 1, 2024

 

$

55,057

 

 

$

1,134,363

 

 

$

2,810,824

 

 

$

(556,935

)

 

$

(342,890

)

 

$

3,100,419

 

Total comprehensive income (loss)

 

 

—

 

 

 

—

 

 

 

110,258

 

 

 

(37,603

)

 

 

—

 

 

 

72,655

 

Dividends ($0.39 per share)

 

 

—

 

 

 

—

 

 

 

(17,976

)

 

 

—

 

 

 

—

 

 

 

(17,976

)

Purchase of treasury stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,537

)

 

 

(7,537

)

Issuances of equity awards, net of forfeitures

 

 

—

 

 

 

(10,964

)

 

 

—

 

 

 

—

 

 

 

11,667

 

 

 

703

 

Recognition of equity-based compensation

 

 

—

 

 

 

4,271

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,271

 

Sale of treasury stock

 

 

—

 

 

 

70

 

 

 

—

 

 

 

—

 

 

 

60

 

 

 

130

 

Exercise of stock options

 

 

—

 

 

 

66

 

 

 

—

 

 

 

—

 

 

 

85

 

 

 

151

 

Balance - March 31, 2024

 

$

55,057

 

 

$

1,127,806

 

 

$

2,903,106

 

 

$

(594,538

)

 

$

(338,615

)

 

$

3,152,816

 

Average Balances / Yields and Rates

 

UMB Financial Corporation

 

(tax - equivalent basis)

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

 

 

Average

 

 

Average

 

 

Average

 

 

Average

 

 

 

Balance

 

 

Yield/Rate

 

 

Balance

 

 

Yield/Rate

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned interest

 

$

23,354,043

 

 

 

6.64

%

 

$

21,271,600

 

 

 

5.88

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

9,264,789

 

 

 

2.65

 

 

 

9,349,351

 

 

 

2.30

 

Tax-exempt

 

 

3,732,122

 

 

 

3.42

 

 

 

3,845,266

 

 

 

3.35

 

Total securities

 

 

12,996,911

 

 

 

2.87

 

 

 

13,194,617

 

 

 

2.61

 

Federal funds and resell agreements

 

 

206,443

 

 

 

5.97

 

 

 

451,188

 

 

 

5.08

 

Interest bearing due from banks

 

 

3,304,142

 

 

 

5.44

 

 

 

1,533,704

 

 

 

4.27

 

Trading securities

 

 

17,893

 

 

 

7.33

 

 

 

9,258

 

 

 

6.31

 

Total earning assets

 

 

39,879,432

 

 

 

5.31

 

 

 

36,460,367

 

 

 

4.62

 

Allowance for credit losses

 

 

(222,116

)

 

 

 

 

 

(196,128

)

 

 

 

Other assets

 

 

2,360,092

 

 

 

 

 

 

2,239,140

 

 

 

 

Total assets

 

$

42,017,408

 

 

 

 

 

$

38,503,379

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

23,459,723

 

 

 

3.84

%

 

$

19,643,168

 

 

 

2.64

%

Federal funds and repurchase agreements

 

 

2,384,754

 

 

 

4.67

 

 

 

2,461,942

 

 

 

3.84

 

Borrowed funds

 

 

2,183,494

 

 

 

5.36

 

 

 

1,200,346

 

 

 

5.36

 

Total interest-bearing liabilities

 

 

28,027,971

 

 

 

4.03

 

 

 

23,305,456

 

 

 

2.91

 

Noninterest-bearing demand deposits

 

 

10,066,409

 

 

 

 

 

 

11,919,277

 

 

 

 

Other liabilities

 

 

779,510

 

 

 

 

 

 

554,211

 

 

 

 

Shareholders' equity

 

 

3,143,518

 

 

 

 

 

 

2,724,435

 

 

 

 

Total liabilities and shareholders' equity

 

$

42,017,408

 

 

 

 

 

$

38,503,379

 

 

 

 

Net interest spread

 

 

 

 

 

1.28

%

 

 

 

 

 

1.71

%

Net interest margin

 

 

 

 

 

2.48

 

 

 

 

 

 

2.76

 

Business Segment Information

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2024

 

 

 

Commercial Banking

 

 

Institutional Banking

 

 

Personal Banking

 

 

Total

 

Net interest income

 

$

157,247

 

 

$

49,860

 

 

$

32,327

 

 

$

239,434

 

Provision for credit losses

 

 

7,520

 

 

 

479

 

 

 

2,001

 

 

 

10,000

 

Noninterest income

 

 

42,966

 

 

 

92,716

 

 

 

23,562

 

 

 

159,244

 

Noninterest expense

 

 

92,420

 

 

 

100,376

 

 

 

62,008

 

 

 

254,804

 

Income (loss) before taxes

 

 

100,273

 

 

 

41,721

 

 

 

(8,120

)

 

 

133,874

 

Income tax expense (benefit)

 

 

17,223

 

 

 

7,656

 

 

 

(1,263

)

 

 

23,616

 

Net income (loss)

 

$

83,050

 

 

$

34,065

 

 

$

(6,857

)

 

$

110,258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2023

 

 

 

Commercial Banking

 

 

Institutional Banking

 

 

Personal Banking

 

 

Total

 

Net interest income

 

$

151,027

 

 

$

55,085

 

 

 

35,584

 

 

$

241,696

 

Provision for credit losses

 

 

21,045

 

 

 

96

 

 

 

2,109

 

 

 

23,250

 

Noninterest income

 

 

22,902

 

 

 

84,238

 

 

 

23,060

 

 

 

130,200

 

Noninterest expense

 

 

84,002

 

 

 

89,372

 

 

 

63,678

 

 

 

237,052

 

Income (loss) before taxes

 

 

68,882

 

 

 

49,855

 

 

 

(7,143

)

 

 

111,594

 

Income tax expense (benefit)

 

 

11,646

 

 

 

8,504

 

 

 

(993

)

 

 

19,157

 

Net income (loss)

 

$

57,236

 

 

$

41,351

 

 

$

(6,150

)

 

$

92,437

 

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 March 31, 2024.

Non-GAAP Financial Measures

Net operating income Non-GAAP reconciliations:

 

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2024

 

 

2023

 

Net income (GAAP)

 

$

110,258

 

 

$

92,437

 

Adjustments:

 

 

 

 

Acquisition expense

 

 

431

 

 

 

39

 

Severance expense

 

 

146

 

 

 

486

 

FDIC special assessment

 

 

13,000

 

 

 

—

 

Tax-impact of adjustments (i)

 

 

(3,123

)

 

 

(126

)

Total Non-GAAP adjustments (net of tax)

 

 

10,454

 

 

 

399

 

Net operating income (Non-GAAP)

 

$

120,712

 

 

$

92,836

 

 

 

 

 

 

Earnings per share - diluted (GAAP)

 

$

2.25

 

 

$

1.90

 

Acquisition expense

 

 

0.01

 

 

 

—

 

Severance expense

 

 

—

 

 

 

0.01

 

FDIC special assessment

 

 

0.27

 

 

 

—

 

Tax-impact of adjustments (i)

 

 

(0.06

)

 

 

—

 

Operating earnings per share - diluted (Non-GAAP)

 

$

2.47

 

 

$

1.91

 

 

 

 

 

 

GAAP

 

 

 

 

Return on average assets

 

 

1.06

%

 

 

0.97

%

Return on average equity

 

 

14.11

 

 

 

13.76

 

 

 

 

 

 

Non-GAAP

 

 

 

 

Operating return on average assets

 

 

1.16

%

 

 

0.98

%

Operating return on average equity

 

 

15.44

 

 

 

13.82

 

   

(i) Calculated using the company’s marginal tax rate of 23.0% for 2024 and 24.0% for 2023.

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

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

Noninterest expense

 

$

254,804

 

 

$

237,052

 

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

 

 

 

 

 

 

Acquisition expense

 

 

431

 

 

 

39

 

Severance expense

 

 

146

 

 

 

486

 

FDIC special assessment

 

 

13,000

 

 

 

—

 

Total Non-GAAP adjustments (pre-tax)

 

 

13,577

 

 

 

525

 

Operating noninterest expense (Non-GAAP)

 

$

241,227

 

 

$

236,527

 

 

 

 

 

 

 

 

Noninterest expense

 

$

254,804

 

 

$

237,052

 

Less: Amortization of other intangibles

 

 

1,960

 

 

 

2,298

 

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

 

$

252,844

 

 

$

234,754

 

 

 

 

 

 

 

 

Operating noninterest expense

 

$

241,227

 

 

$

236,527

 

Less: Amortization of other intangibles

 

 

1,960

 

 

 

2,298

 

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

 

$

239,267

 

 

$

234,229

 

 

 

 

 

 

 

 

Net interest income

 

$

239,434

 

 

$

241,696

 

Noninterest income

 

 

159,244

 

 

 

130,200

 

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

 

 

139

 

 

 

(2

)

Total Non-GAAP Revenue (denominator A)

 

$

398,539

 

 

$

371,898

 

 

 

 

 

 

 

 

Efficiency ratio (numerator A/denominator A)

 

 

63.44

%

 

 

63.12

%

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

 

 

60.04

 

 

 

62.98

 

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

UMB Financial Corporation

 

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

Net interest income (GAAP)

 

$

239,434

 

 

$

241,696

 

Noninterest income (GAAP)

 

 

159,244

 

 

 

130,200

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

 

254,804

 

 

 

237,052

 

Adjustments to arrive at operating noninterest expense:

 

 

 

 

 

 

Acquisition expense

 

 

431

 

 

 

39

 

Severance expense

 

 

146

 

 

 

486

 

FDIC special assessment

 

 

13,000

 

 

 

—

 

Total Non-GAAP adjustments

 

 

13,577

 

 

 

525

 

Operating noninterest expense (Non-GAAP)

 

 

241,227

 

 

 

236,527

 

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

 

$

157,451

 

 

$

135,369

 

 

 

 

 

 

 

 

Net interest income earnings per share - diluted (GAAP)

 

$

4.89

 

 

$

4.96

 

Noninterest income (GAAP)

 

 

3.26

 

 

 

2.67

 

Noninterest expense (GAAP)

 

 

5.21

 

 

 

4.86

 

Acquisition expense

 

 

0.01

 

 

 

—

 

Severance expense

 

 

—

 

 

 

0.01

 

FDIC special assessment

 

 

0.27

 

 

 

—

 

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

 

$

3.22

 

 

$

2.78

 

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

 

UMB Financial Corporation

 

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

Net interest income (GAAP)

 

$

239,434

 

 

$

241,696

 

Adjustments to arrive at net interest income - FTE:

 

 

 

 

 

 

Tax equivalent interest

 

 

6,516

 

 

 

6,555

 

Net interest income - FTE (Non-GAAP)

 

 

245,950

 

 

 

248,251

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

 

 

159,244

 

 

 

130,200

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

 

254,804

 

 

 

237,052

 

Adjustments to arrive at operating noninterest expense:

 

 

 

 

 

 

Acquisition expense

 

 

431

 

 

 

39

 

Severance expense

 

 

146

 

 

 

486

 

FDIC special assessment

 

 

13,000

 

 

 

—

 

Total Non-GAAP adjustments

 

 

13,577

 

 

 

525

 

Operating noninterest expense (Non-GAAP)

 

 

241,227

 

 

 

236,527

 

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

 

$

163,967

 

 

$

141,924

 

 

 

 

 

 

 

 

Net interest income earnings per share - diluted (GAAP)

 

$

4.89

 

 

$

4.96

 

Tax equivalent interest

 

 

0.13

 

 

 

0.13

 

Net interest income - FTE (Non-GAAP)

 

 

5.02

 

 

 

5.09

 

Noninterest income (GAAP)

 

 

3.26

 

 

 

2.67

 

Noninterest expense (GAAP)

 

 

5.21

 

 

 

4.86

 

Acquisition expense

 

 

0.01

 

 

 

—

 

Severance expense

 

 

—

 

 

 

0.01

 

FDIC special assessment

 

 

0.27

 

 

 

—

 

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

 

$

3.35

 

 

$

2.91

 

Tangible book value non-GAAP reconciliations:

UMB Financial Corporation

 

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

 

 

 

 

 

 

 

 

As of March 31,

 

 

 

2024

 

 

2023

 

Total shareholders' equity (GAAP)

 

$

3,152,816

 

 

$

2,814,659

 

Less: Intangible assets

 

 

 

 

 

 

Goodwill

 

 

207,385

 

 

 

207,385

 

Other intangibles, net

 

 

69,052

 

 

 

76,426

 

Total intangibles, net

 

 

276,437

 

 

 

283,811

 

Total tangible shareholders' equity (Non-GAAP)

 

$

2,876,379

 

 

$

2,530,848

 

 

 

 

 

 

 

 

Total shares outstanding

 

 

48,743,348

 

 

 

48,507,116

 

 

 

 

 

 

 

 

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

 

$

64.68

 

 

$

58.03

 

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

 

 

59.01

 

 

 

52.17

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240420807468/en/

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