KANSAS CITY, Mo.--(BUSINESS WIRE)--UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the fourth quarter of 2022 of $100.2 million, or $2.06 per diluted share, compared to $88.0 million, or $1.81 per diluted share, in the third quarter of 2022 (linked quarter) and $78.5 million, or $1.61 per diluted share, in the fourth quarter of 2021.
Net operating income, a non-GAAP financial measure reconciled later in this release to net income, the nearest comparable GAAP measure, was $101.1 million, or $2.07 per diluted share, for the fourth quarter of 2022, compared to $88.3 million, or $1.82 per diluted share, for the linked quarter and $78.9 million, or $1.62 per diluted share, for the fourth quarter of 2021. 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 $134.1 million, or $2.75 per diluted share, for the fourth quarter of 2022, compared to $131.2 million, or $2.70 per diluted share, for the linked quarter, and $107.4 million, or $2.20 per diluted share, for the fourth quarter of 2021. These operating PTPP results represent increases of 2.2% on a linked-quarter basis and 24.8%, compared to the fourth quarter of 2021.
“As we enter the 110th year of business, our strong balance sheet and differentiated business mix position us well to deliver solid returns across all economic cycles, driven by our basic tenet of providing the Unparalleled Customer Experience to all our key constituents,” said Mariner Kemper, chairman, president and chief executive officer. “Our fourth quarter results capped off another year of record earnings, facilitated by strong balance sheet growth, stable credit metrics and contributions from our differentiated fee income sources. Revenue increased 14.4% over the prior year to $1.5 billion, driven by a 13.2% increase in average loans, 8.3% increase in average deposits, and an 18.6% percent increase in noninterest income. In 2022, we generated actual loan growth of nearly $4 billion, or more than three times the $1.1 billion we added in the prior calendar year. Our asset quality metrics remained solid as reflected in net loan charge-off rate of 21 basis points for the year. Nonperforming assets comprised a modest five basis points of total assets. We’ve long focused on operating leverage, and for the full year, we generated positive leverage of 6.7%.”
Fourth Quarter 2022 earnings discussion
Summary of quarterly financial results |
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UMB Financial Corporation |
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(unaudited, dollars in thousands, except per share data) |
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|
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|
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Q4 |
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Q3 |
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Q4 |
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|
2022 |
|
2022 |
|
2021 |
||||||
Net income (GAAP) |
|
$ |
100,173 |
|
|
$ |
87,990 |
|
|
$ |
78,496 |
|
Earnings per share (diluted) |
|
|
2.06 |
|
|
|
1.81 |
|
|
|
1.61 |
|
|
|
|
|
|
|
|
|
|
|
|||
Operating pre-tax, pre-provision income (Non-GAAP) |
|
|
134,054 |
|
|
|
131,166 |
|
|
|
107,415 |
|
Operating pre-tax, pre-provision earnings per share (diluted) |
|
|
2.75 |
|
|
|
2.70 |
|
|
|
2.20 |
|
|
|
|
|
|
|
|
|
|
|
|||
Operating pre-tax, pre-provision income - FTE (Non-GAAP) |
|
|
140,717 |
|
|
|
137,620 |
|
|
|
113,898 |
|
Operating pre-tax, pre-provision earnings per share - FTE (diluted) |
|
|
2.89 |
|
|
|
2.83 |
|
|
|
2.33 |
|
|
|
|
|
|
|
|
|
|
|
|||
Net operating income (Non-GAAP) |
|
|
101,092 |
|
|
|
88,259 |
|
|
|
78,921 |
|
Operating earnings per share (diluted) |
|
|
2.07 |
|
|
|
1.82 |
|
|
|
1.62 |
|
|
|
|
|
|
|
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|||
GAAP |
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|
|
|
|
|
|
|
|
|||
Return on average assets |
|
|
1.06 |
% |
|
|
0.96 |
% |
|
|
0.82 |
% |
Return on average equity |
|
|
15.16 |
|
|
|
12.90 |
|
|
|
9.91 |
|
Efficiency ratio |
|
|
63.72 |
|
|
|
63.58 |
|
|
|
67.78 |
|
|
|
|
|
|
|
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|
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|
|||
Non-GAAP |
|
|
|
|
|
|
|
|
|
|||
Operating return on average assets |
|
|
1.07 |
% |
|
|
0.96 |
% |
|
|
0.82 |
% |
Operating return on average equity |
|
|
15.30 |
|
|
|
12.94 |
|
|
|
9.97 |
|
Operating efficiency ratio |
|
|
63.39 |
|
|
|
63.49 |
|
|
|
67.61 |
|
Summary of revenue |
|
UMB Financial Corporation |
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(unaudited, dollars in thousands) |
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|||||
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Q4 |
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Q3 |
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Q4 |
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CQ vs. |
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CQ vs. |
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2022 |
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2022 |
|
2021 |
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LQ |
|
PY |
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Net interest income |
|
$ |
245,166 |
|
|
$ |
233,485 |
|
|
$ |
210,570 |
|
|
$ |
11,681 |
|
|
$ |
34,596 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Trust and securities processing |
|
|
59,207 |
|
|
|
59,586 |
|
|
|
58,515 |
|
|
|
(379 |
) |
|
|
692 |
|
Trading and investment banking |
|
|
5,251 |
|
|
|
5,387 |
|
|
|
6,977 |
|
|
|
(136 |
) |
|
|
(1,726 |
) |
Service charges on deposit accounts |
|
|
19,758 |
|
|
|
19,932 |
|
|
|
21,607 |
|
|
|
(174 |
) |
|
|
(1,849 |
) |
Insurance fees and commissions |
|
|
459 |
|
|
|
375 |
|
|
|
359 |
|
|
|
84 |
|
|
|
100 |
|
Brokerage fees |
|
|
13,332 |
|
|
|
13,840 |
|
|
|
3,346 |
|
|
|
(508 |
) |
|
|
9,986 |
|
Bankcard fees |
|
|
19,597 |
|
|
|
19,379 |
|
|
|
16,642 |
|
|
|
218 |
|
|
|
2,955 |
|
Investment securities (losses) gains, net |
|
|
(409 |
) |
|
|
(1,345 |
) |
|
|
1,448 |
|
|
|
936 |
|
|
|
(1,857 |
) |
Other |
|
|
8,302 |
|
|
|
11,569 |
|
|
|
9,888 |
|
|
|
(3,267 |
) |
|
|
(1,586 |
) |
Total noninterest income |
|
$ |
125,497 |
|
|
$ |
128,723 |
|
|
$ |
118,782 |
|
|
$ |
(3,226 |
) |
|
$ |
6,715 |
|
Total revenue |
|
$ |
370,663 |
|
|
$ |
362,208 |
|
|
$ |
329,352 |
|
|
$ |
8,455 |
|
|
$ |
41,311 |
|
Net interest income (FTE) |
|
$ |
251,829 |
|
|
$ |
239,939 |
|
|
$ |
217,053 |
|
|
|
|
|
|
|
||
Net interest margin (FTE) |
|
|
2.83 |
% |
|
|
2.76 |
% |
|
|
2.37 |
% |
|
|
|
|
|
|
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Total noninterest income as a % of total revenue |
|
|
33.9 |
|
|
|
35.5 |
|
|
|
36.1 |
|
|
|
|
|
|
|
Net interest income
- Fourth quarter 2022 net interest income totaled $245.2 million, an increase of $11.7 million, or 5.0% from the linked quarter, driven by an increase of $1.0 billion in average loans and the impact from higher short-term and long-term interest rates.
- Average earning assets increased $831.6 million, or 2.4% from the linked quarter, largely driven by the increase in average loans noted above, an increase of $502.8 million in interest-bearing due from banks, partially offset by a decrease of $488.8 million in average securities.
- Average interest-bearing liabilities increased $987.5 million, or 4.8% from the linked quarter, primarily driven by an increase of $1.5 billion in interest-bearing deposits, partially offset by a decrease of $631.0 million in federal funds purchased and repurchase agreements.
- Net interest margin for the fourth quarter was 2.83%, an increase of seven basis points from the linked quarter, driven by benefits of higher short-term interest rates, loan fees, favorable earning asset mix changes, and the benefit of free funds, partially offset by increased cost of interest-bearing liabilities. Average loan yields increased 89 basis points while earning asset yields increased 67 basis points from the linked quarter. The cost of interest-bearing liabilities increased 94 basis points to 2.22%.
- On a year-over-year basis, net interest income increased $34.6 million, or 16.4%, driven by a $3.6 billion, or 21.6% increase in average loans, coupled with a $402.7 million, or 3.1% increase in average securities. These increases were driven by organic loan growth and a reduction in excess liquidity.
- Average earning assets decreased $1.0 billion, or 2.8%, largely driven by a decrease of $4.6 billion in interest-bearing due from banks, partially offset by the increases in average loans and securities noted above.
- Average deposits increased 5.3% on a linked-quarter basis and decreased 0.8% compared to the fourth quarter of 2021. Average noninterest-bearing demand deposit balances increased 0.5% on a linked-quarter basis and decreased 5.1% compared to the fourth quarter of 2021. Demand deposit balances comprised 39.7% of total deposits, compared to 41.6% in the linked quarter and 41.5% in the fourth quarter of 2021.
Noninterest income
-
Fourth quarter 2022 noninterest income decreased $3.2 million, or 2.5%, on a linked-quarter basis, largely due to:
- Decreases of $2.3 million in company-owned life insurance income and $0.9 million in derivative income, both recorded in other income. The decrease in company-owned life insurance is offset by a proportionate decrease in deferred compensation expense as noted below.
- A decrease of $0.5 million in brokerage income, largely driven by a decrease in money market income.
- These decreases were partially offset by an increase of $0.9 million in investment securities gains.
-
Compared to the prior year, noninterest income in the fourth quarter of 2022 increased $6.7 million, or 5.7%, primarily driven by:
- An increase of $10.0 million in brokerage income, largely driven by increases in 12b-1 fees and money market income.
- An increase of $3.0 million in bankcard income, driven by increased interchange income and reduced rewards expense.
- An increase of $1.0 million in company-owned life insurance income, recorded in other income. The increase in company-owned life insurance is offset by a proportionate increase in deferred compensation expense as noted below.
-
These increases were partially offset by the following decreases:
- A decrease of $1.9 million in investment securities gains, largely driven by $2.7 million in gains on sales of available-for-sale securities in the prior year, offset by an increase of $0.9 million in the valuation of the company’s equity investments.
- A decrease of $1.8 million in service charges on deposits primarily due to reduced corporate service charge income and decreased healthcare services income related to customer transfer and conversion fees.
- Decreases of $2.0 million in derivative income, recorded in other income, and $1.7 million in trading and investment banking due to decreased trading volume.
Noninterest expense
Summary of noninterest expense |
|
UMB Financial Corporation |
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(unaudited, dollars in thousands) |
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|
|
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|
|
Q4 |
|
Q3 |
|
Q4 |
|
CQ vs. |
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CQ vs. |
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|
|
2022 |
|
2022 |
|
2021 |
|
LQ |
|
PY |
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Salaries and employee benefits |
|
$ |
135,940 |
|
|
$ |
136,467 |
|
|
$ |
131,360 |
|
|
$ |
(527 |
) |
|
$ |
4,580 |
|
Occupancy, net |
|
|
12,409 |
|
|
|
12,231 |
|
|
|
10,907 |
|
|
|
178 |
|
|
|
1,502 |
|
Equipment |
|
|
18,969 |
|
|
|
18,811 |
|
|
|
19,886 |
|
|
|
158 |
|
|
|
(917 |
) |
Supplies and services |
|
|
3,697 |
|
|
|
3,139 |
|
|
|
4,646 |
|
|
|
558 |
|
|
|
(949 |
) |
Marketing and business development |
|
|
8,788 |
|
|
|
6,671 |
|
|
|
6,528 |
|
|
|
2,117 |
|
|
|
2,260 |
|
Processing fees |
|
|
23,545 |
|
|
|
20,901 |
|
|
|
19,083 |
|
|
|
2,644 |
|
|
|
4,462 |
|
Legal and consulting |
|
|
10,664 |
|
|
|
10,255 |
|
|
|
10,858 |
|
|
|
409 |
|
|
|
(194 |
) |
Bankcard |
|
|
7,369 |
|
|
|
6,551 |
|
|
|
4,865 |
|
|
|
818 |
|
|
|
2,504 |
|
Amortization of other intangible assets |
|
|
1,649 |
|
|
|
1,092 |
|
|
|
1,110 |
|
|
|
557 |
|
|
|
539 |
|
Regulatory fees |
|
|
4,232 |
|
|
|
4,200 |
|
|
|
3,393 |
|
|
|
32 |
|
|
|
839 |
|
Other |
|
|
10,556 |
|
|
|
11,078 |
|
|
|
9,847 |
|
|
|
(522 |
) |
|
|
709 |
|
Total noninterest expense |
|
$ |
237,818 |
|
|
$ |
231,396 |
|
|
$ |
222,483 |
|
|
$ |
6,422 |
|
|
$ |
15,335 |
|
- Noninterest expense for the fourth quarter of 2022 was $237.8 million, an increase of $6.4 million, or 2.8%, from the linked quarter and an increase of $15.3 million, or 6.9%, from the fourth quarter of 2021.
-
The linked-quarter increase in noninterest expense was driven by:
- Increases of $2.6 million in processing fees and $2.1 million in marketing and business development expense due to the ongoing modernization of the company’s core systems and timing of multiple projects, respectively. The increase in marketing and business development expense was also partially driven by an increase in advertising for various projects and an increase in travel and entertainment expense.
- Increases of $0.8 million, $0.6 million, and $0.6 million in bankcard expense, supplies expense, and intangible amortization expense, respectively. The increase in amortization expense is related to the acquisition of the healthcare savings account business from Old National Bank, completed in the fourth quarter of 2022.
- These increases were partially offset by a decrease of $0.5 million in salaries and employee benefits expense. This decrease was driven by a decrease of $2.7 million in employee benefits expense, partially offset by an increase of $2.2 million in salaries and bonus expense. The decrease in employee benefits expense was driven by a $1.5 million decrease in deferred compensation expense and a $1.0 million decrease in payroll taxes, insurance, and 401(k) expense as employee maximums were reached during the quarter. This decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.
-
The year-over-year increase in noninterest expense was driven by:
- An increase of $4.6 million in salaries and employee benefits expense, driven primarily by increases of $7.7 million in salaries and wage expense and $2.3 million in employee benefits expense, primarily due to an increase of $1.1 million in payroll taxes, insurance, and 401(k) expense, and an increase of $0.7 million in deferred compensation expense. These increases were partially offset by a decrease of $5.4 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.
- Increases of $4.5 million and $2.3 million in processing fees and marketing and business development expense, respectively, due to the ongoing modernization of the company’s core systems and timing of multiple projects, respectively. The increase in marketing and business development expense was also partially driven by an increase in advertising for various projects and an increase in travel and entertainment expense.
- Increases of $2.5 million and $1.5 million in bankcard expense and occupancy expense, respectively.
Full year 2022 earnings discussion
Net income for the year ended December 31, 2022 was $431.7 million, or $8.86 per diluted share, compared to $353.0 million, or $7.24 per diluted share in 2021. Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $433.0 million, or $8.88 per diluted share, compared to $354.4 million, or $7.27 per diluted share in 2021. These results represent increases of 22.3% and 22.2%, respectively. 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 $571.7 million, or $11.73 per diluted share, compared to $450.9 million, or $9.26 per diluted share, for 2021. These results represent an increase of 26.8% as compared to 2021.
Summary of year-to-date financial results |
|
UMB Financial Corporation |
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(unaudited, dollars in thousands, except per share data) |
|
December |
|
|
December |
|
||
|
|
YTD |
|
|
YTD |
|
||
|
|
2022 |
|
|
2021 |
|
||
Net income (GAAP) |
|
$ |
431,682 |
|
|
$ |
353,018 |
|
Earnings per share (diluted) |
|
|
8.86 |
|
|
|
7.24 |
|
|
|
|
|
|
|
|
|
|
Operating pre-tax, pre-provision income (Non-GAAP) |
|
|
571,671 |
|
|
|
450,896 |
|
Operating pre-tax, pre-provision earnings per share (diluted) |
|
|
11.73 |
|
|
|
9.26 |
|
|
|
|
|
|
|
|
|
|
Operating pre-tax, pre-provision income - FTE (Non-GAAP) |
|
|
597,465 |
|
|
|
477,230 |
|
Operating pre-tax, pre-provision earnings per share - FTE (diluted) |
|
|
12.26 |
|
|
|
9.79 |
|
|
|
|
|
|
|
|
|
|
Net operating income (Non-GAAP) |
|
|
433,020 |
|
|
|
354,446 |
|
Operating earnings per share (diluted) |
|
|
8.88 |
|
|
|
7.27 |
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
|
|
|
Return on average assets |
|
|
1.15 |
% |
|
|
1.00 |
% |
Return on average equity |
|
|
15.83 |
|
|
|
11.43 |
|
Efficiency ratio |
|
|
60.84 |
|
|
|
65.02 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
|
|
|
|
|
|
|
Operating return on average assets |
|
|
1.15 |
% |
|
|
1.00 |
% |
Operating return on average equity |
|
|
15.88 |
|
|
|
11.47 |
|
Operating efficiency ratio |
|
|
60.72 |
|
|
|
64.87 |
|
- Net interest income increased $98.3 million, or 12.1%, year-over-year due to a $2.1 billion increase in earning assets and the impact from increased short-term and long-term interest rates. The increase in earning assets was primarily driven by a $2.2 billion, or 13.2%, increase in average loans, and an increase of $1.8 billion, or 15.7% in average securities. This growth was partially offset by a decrease of $1.7 billion in interest-bearing due from banks. Average interest-bearing liabilities increased $583.1 million, while noninterest-bearing demand deposits increased $2.0 billion, or 17.9%. The yield on earning assets increased 62 basis points, while the cost of interest-bearing liabilities increased 84 basis points. Net interest margin for 2022 was 2.63%, an increase of 13 basis points from 2021.
-
Full-year noninterest income increased $87.1 million, or 18.6%, due to:
- An increase of $53.4 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.
- An increase of $30.8 million in brokerage fees, primarily driven by higher 12b-1 and money market income.
- An increase of $13.1 million in trust and securities processing, due to increases of $12.9 million and $6.5 million in fund services income and corporate trust income, respectively, partially offset by a decrease of $6.3 million in trust income.
- These increases were partially offset by a decrease of $10.1 million in company-owned life insurance income, recorded in other income. The decrease in company-owned life insurance is offset by a proportionate decrease in deferred compensation expense as noted below.
-
Full-year noninterest expense increased $64.5 million, or 7.7%, primarily due to:
- An increase of $20.0 million in salaries and employee benefits expense, driven by an increase of $21.8 million in salaries and bonus expense, partially offset by a decrease of $1.9 million in employee benefits expense. The increase in salaries and bonus expense was driven by higher salaries and improved company performance. The decrease in employee benefits expense was due to a decrease of $9.5 million in deferred compensation expense, partially offset by an increase of $5.0 million in payroll taxes, insurance, and 401(k) expense. This decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.
- An increase of $14.7 million in processing fees due to the ongoing modernization of the company’s core systems and timing of multiple projects.
- Increases of $7.2 million and $6.7 million in marketing and business development and legal and consulting expense, respectively, due to the timing of multiple projects. The increase in marketing and business development expense was also partially driven by an increase in advertising for various projects and an increase in travel and entertainment expense.
- An increase of $7.2 million in bankcard expense primarily due to higher processing expense and bankcard fraud losses.
- Increases of $6.1 million in operational losses and $2.4 million in charitable contributions, both recorded in other expense.
Income taxes
- The company’s effective tax rate was 18.9% for the year ended December 31, 2022, compared to 17.7% for the same period in 2021. The increase in the effective rate in 2022 is primarily attributable to a smaller portion of income being earned from tax-exempt municipal securities.
Balance sheet
- Average total assets for the fourth quarter of 2022 were $37.3 billion compared to $36.3 billion for the linked quarter and $38.1 billion for the same period in 2021.
Summary of average loans and leases - QTD Average |
UMB Financial Corporation |
|
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(unaudited, dollars in thousands) |
|
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|
|
|
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|
Q4 |
|
Q3 |
|
Q4 |
|
CQ vs. |
|
CQ vs. |
||||||||||
|
|
2022 |
|
2022 |
|
2021 |
|
LQ |
|
PY |
||||||||||
Commercial and industrial |
|
$ |
8,891,356 |
|
|
$ |
8,417,174 |
|
|
$ |
6,994,935 |
|
|
$ |
474,182 |
|
|
$ |
1,896,421 |
|
Specialty lending |
|
|
559,200 |
|
|
|
559,797 |
|
|
|
484,552 |
|
|
|
(597 |
) |
|
|
74,648 |
|
Commercial real estate |
|
|
7,323,877 |
|
|
|
6,892,484 |
|
|
|
6,218,138 |
|
|
|
431,393 |
|
|
|
1,105,739 |
|
Consumer real estate |
|
|
2,678,771 |
|
|
|
2,574,926 |
|
|
|
2,272,498 |
|
|
|
103,845 |
|
|
|
406,273 |
|
Consumer |
|
|
145,811 |
|
|
|
142,348 |
|
|
|
107,841 |
|
|
|
3,463 |
|
|
|
37,970 |
|
Credit cards |
|
|
457,043 |
|
|
|
438,235 |
|
|
|
414,267 |
|
|
|
18,808 |
|
|
|
42,776 |
|
Leases and other |
|
|
238,603 |
|
|
|
259,298 |
|
|
|
200,417 |
|
|
|
(20,695 |
) |
|
|
38,186 |
|
Total loans |
|
$ |
20,294,661 |
|
|
$ |
19,284,262 |
|
|
$ |
16,692,648 |
|
|
$ |
1,010,399 |
|
|
$ |
3,602,013 |
|
- Average loans for the fourth quarter of 2022 increased 5.2% on a linked-quarter basis and 21.6% compared to the fourth quarter of 2021.
Summary of average securities - QTD Average |
|
UMB Financial Corporation |
||||||||||||||||||
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4 |
|
Q3 |
|
Q4 |
|
CQ vs. |
|
CQ vs. |
||||||||||
|
|
2022 |
|
2022 |
|
2021 |
|
LQ |
|
PY |
||||||||||
Securities available for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Treasury |
|
$ |
752,339 |
|
$ |
746,429 |
|
$ |
69,398 |
|
$ |
5,910 |
|
|
$ |
682,941 |
|
|||
U.S. Agencies |
|
|
171,171 |
|
|
|
173,980 |
|
|
|
93,619 |
|
|
|
(2,809 |
) |
|
|
77,552 |
|
Mortgage-backed |
|
|
4,027,120 |
|
|
|
4,363,838 |
|
|
|
7,395,528 |
|
|
|
(336,718 |
) |
|
|
(3,368,408 |
) |
State and political subdivisions |
|
|
1,353,307 |
|
|
|
1,600,043 |
|
|
|
3,437,841 |
|
|
|
(246,736 |
) |
|
|
(2,084,534 |
) |
Corporates |
|
|
366,131 |
|
|
|
381,151 |
|
|
|
236,743 |
|
|
|
(15,020 |
) |
|
|
129,388 |
|
Collateralized loan obligations |
|
|
328,475 |
|
|
|
300,475 |
|
|
|
38,099 |
|
|
|
28,000 |
|
|
|
290,376 |
|
Total securities available for sale |
|
$ |
6,998,543 |
|
|
$ |
7,565,916 |
|
|
$ |
11,271,228 |
|
|
$ |
(567,373 |
) |
|
$ |
(4,272,685 |
) |
Securities held to maturity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Agencies |
|
$ |
123,077 |
|
|
$ |
123,048 |
|
|
$ |
— |
|
|
$ |
29 |
|
|
$ |
123,077 |
|
Mortgage-backed |
|
|
2,983,489 |
|
|
|
3,039,998 |
|
|
|
105,622 |
|
|
|
(56,509 |
) |
|
|
2,877,867 |
|
State and political subdivisions |
|
|
2,765,717 |
|
|
|
2,621,633 |
|
|
|
1,089,587 |
|
|
|
144,084 |
|
|
|
1,676,130 |
|
Total securities held to maturity |
|
$ |
5,872,283 |
|
|
$ |
5,784,679 |
|
|
$ |
1,195,209 |
|
|
$ |
87,604 |
|
|
$ |
4,677,074 |
|
Trading securities |
|
|
11,799 |
|
|
|
5,651 |
|
|
|
29,426 |
|
|
|
6,148 |
|
|
|
(17,627 |
) |
Other securities |
|
|
315,748 |
|
|
|
330,950 |
|
|
|
299,829 |
|
|
|
(15,202 |
) |
|
|
15,919 |
|
Total securities |
|
$ |
13,198,373 |
|
|
$ |
13,687,196 |
|
|
$ |
12,795,692 |
|
|
$ |
(488,823 |
) |
|
$ |
402,681 |
|
- Average total securities decreased 3.6% on a linked-quarter basis and increased 3.1% compared to the fourth quarter of 2021.
Summary of average deposits - QTD Average |
UMB Financial Corporation |
|||||||||||||||||||
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4 |
|
Q3 |
|
Q4 |
|
CQ vs. |
|
CQ vs. |
||||||||||
|
|
2022 |
|
2022 |
|
2021 |
|
LQ |
|
PY |
||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest-bearing demand |
|
$ |
12,454,413 |
|
|
$ |
12,394,251 |
|
|
$ |
13,124,918 |
|
|
$ |
60,162 |
|
$ |
(670,505 |
) |
|
Interest-bearing demand and savings |
|
|
17,952,568 |
|
|
|
16,723,205 |
|
|
|
17,809,817 |
|
|
|
1,229,363 |
|
|
|
142,751 |
|
Time deposits |
|
|
966,969 |
|
|
|
679,994 |
|
|
|
701,836 |
|
|
|
286,975 |
|
|
|
265,133 |
|
Total deposits |
|
$ |
31,373,950 |
|
|
$ |
29,797,450 |
|
|
$ |
31,636,571 |
|
|
$ |
1,576,500 |
|
|
$ |
(262,621 |
) |
Noninterest bearing deposits as % of total |
|
|
39.7 |
% |
|
|
41.6 |
% |
|
|
41.5 |
% |
|
|
|
|
|
|
- Average deposits increased 5.3% on a linked-quarter basis and decreased 0.8% compared to the fourth quarter of 2021.
Capital
Capital information |
|
UMB Financial Corporation |
|
|||||||||
(unaudited, dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|||
Total equity |
|
$ |
2,667,093 |
|
|
$ |
2,523,545 |
|
|
$ |
3,145,424 |
|
Book value per common share |
|
|
55.20 |
|
|
|
52.24 |
|
|
|
64.95 |
|
Tangible book value per common share (Non-GAAP) |
|
|
49.28 |
|
|
|
48.19 |
|
|
|
61.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital: |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 capital |
|
$ |
3,129,030 |
|
|
$ |
3,132,209 |
|
|
$ |
2,885,576 |
|
Tier 1 capital |
|
|
3,129,030 |
|
|
|
3,132,209 |
|
|
|
2,885,576 |
|
Total capital |
|
|
3,682,619 |
|
|
|
3,679,116 |
|
|
|
3,324,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 capital ratio |
|
|
10.62 |
% |
|
|
11.18 |
% |
|
|
12.05 |
% |
Tier 1 risk-based capital ratio |
|
|
10.62 |
|
|
|
11.18 |
|
|
|
12.05 |
|
Total risk-based capital ratio |
|
|
12.50 |
|
|
|
13.13 |
|
|
|
13.88 |
|
Tier 1 leverage ratio |
|
|
8.43 |
|
|
|
8.66 |
|
|
|
7.61 |
|
- At December 31, 2022, 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 |
|
|||||
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|||||
Net charge-offs - total loans |
|
$ |
2,189 |
|
|
$ |
1,173 |
|
|
$ |
28,128 |
|
|
$ |
8,378 |
|
|
$ |
8,061 |
|
Net loan charge-offs as a % of total average loans |
|
|
0.04 |
% |
|
|
0.02 |
% |
|
|
0.62 |
% |
|
|
0.20 |
% |
|
|
0.19 |
% |
Loans over 90 days past due |
|
$ |
1,617 |
|
|
$ |
2,513 |
|
|
$ |
3,446 |
|
|
$ |
3,600 |
|
|
$ |
2,633 |
|
Loans over 90 days past due as a % of total loans |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
Nonaccrual and restructured loans |
|
$ |
19,269 |
|
|
$ |
19,817 |
|
|
$ |
18,117 |
|
|
$ |
110,356 |
|
|
$ |
92,300 |
|
Nonaccrual and restructured loans as a % of total loans |
|
|
0.09 |
% |
|
|
0.10 |
% |
|
|
0.10 |
% |
|
|
0.62 |
% |
|
|
0.54 |
% |
Provision for credit losses |
|
$ |
9,000 |
|
|
$ |
22,000 |
|
|
$ |
13,400 |
|
|
$ |
(6,500 |
) |
|
$ |
8,500 |
|
- Provision for credit losses for the fourth quarter decreased $13.0 million from the linked quarter and increased $0.5 million from the fourth quarter of 2021. These changes are driven by loan growth, portfolio credit metric changes, and changes in macro-economic metrics in the current period as compared to the prior periods.
- Net charge-offs for the fourth quarter totaled $2.2 million, or 0.04%, of average loans, compared to $1.2 million, or 0.02%, of average loans in the linked quarter, and $8.1 million, or 0.19%, of average loans for the fourth quarter of 2021. On a year-to-date basis, net charge-offs totaled $39.9 million, or 0.21%, of average loans, compared to $44.9 million, or 0.27%, of average loans, for the same period in 2021.
Dividend Declaration
At the company’s quarterly board meeting, the Board of Directors declared a $0.38 per share quarterly cash dividend, payable on April 3, 2023, to shareholders of record at the close of business on March 10, 2023.
Conference Call
The company plans to host a conference call to discuss its fourth quarter 2022 earnings results on Wednesday, January 25, 2023, at 8:30 a.m. (CT).
Interested parties may access the call by dialing (toll-free) 844-200-6205 or (international) 646-904-5544 and requesting to join the UMB Financial call with access code 216125. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:
UMB Financial 4Q 2022 Conference Call
A replay of the conference call may be heard through February 8, 2023 by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 239596. 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, 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-, severance-, and COVID-19 related items that management does not believe reflect the company’s fundamental operating performance. COVID-19 related expense includes hazard pay for branch associates, computer hardware expense to support associates working remotely, and additional equipment, cleaning, and janitorial supplies to protect the well-being of our associates and customers while on the company’s premises.
Net operating income for the relevant period is defined as GAAP net income, adjusted to reflect the impact of excluding expenses related to acquisitions, severance expense, COVID-19 related expense, and the cumulative tax impact of these adjustments.
Operating EPS (diluted) is calculated as earnings per share as reported, adjusted to reflect, on a per share basis, the impact of excluding the non-GAAP adjustments described above for the relevant period. Operating ROE is calculated as net operating income, 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 COVID-19 related expense.
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 COVID-19 related expense.
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, 2021, 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 other challenges and uncertainties related to the COVID-19 pandemic, such as 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 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, |
||||||
|
|
2022 |
|
2021 |
||||
|
|
(unaudited) |
|
(audited) |
||||
ASSETS |
|
|
|
|
|
|
||
Loans |
|
$ |
21,031,189 |
|
|
$ |
17,170,871 |
|
Allowance for credit losses on loans |
|
|
(191,836 |
) |
|
|
(194,771 |
) |
Net loans |
|
|
20,839,353 |
|
|
|
16,976,100 |
|
Loans held for sale |
|
|
1,978 |
|
|
|
1,277 |
|
Securities: |
|
|
|
|
|
|
||
Available for sale |
|
|
7,006,347 |
|
|
|
11,976,514 |
|
Held to maturity, net of allowance for credit losses |
|
|
5,859,192 |
|
|
|
1,478,476 |
|
Trading securities |
|
|
17,980 |
|
|
|
31,875 |
|
Other securities |
|
|
349,758 |
|
|
|
327,098 |
|
Total securities |
|
|
13,233,277 |
|
|
|
13,813,963 |
|
Federal funds sold and resell agreements |
|
|
958,597 |
|
|
|
1,216,357 |
|
Interest-bearing due from banks |
|
|
1,179,105 |
|
|
|
8,841,906 |
|
Cash and due from banks |
|
|
500,682 |
|
|
|
413,821 |
|
Premises and equipment, net |
|
|
263,649 |
|
|
|
270,933 |
|
Accrued income |
|
|
189,231 |
|
|
|
131,102 |
|
Goodwill |
|
|
207,385 |
|
|
|
174,518 |
|
Other intangibles, net |
|
|
78,724 |
|
|
|
14,416 |
|
Other assets |
|
|
1,060,480 |
|
|
|
839,091 |
|
Total assets |
|
$ |
38,512,461 |
|
|
$ |
42,693,484 |
|
|
|
|
|
|
|
|
||
LIABILITIES |
|
|
|
|
|
|
||
Deposits: |
|
|
|
|
|
|
||
Noninterest-bearing demand |
|
$ |
13,260,363 |
|
|
$ |
16,342,642 |
|
Interest-bearing demand and savings |
|
|
18,461,632 |
|
|
|
18,405,644 |
|
Time deposits under $250,000 |
|
|
379,087 |
|
|
|
403,660 |
|
Time deposits of $250,000 or more |
|
|
538,051 |
|
|
|
447,981 |
|
Total deposits |
|
|
32,639,133 |
|
|
|
35,599,927 |
|
Federal funds purchased and repurchase agreements |
|
|
2,222,167 |
|
|
|
3,238,435 |
|
Long-term debt |
|
|
381,311 |
|
|
|
271,544 |
|
Accrued expenses and taxes |
|
|
239,624 |
|
|
|
249,492 |
|
Other liabilities |
|
|
363,133 |
|
|
|
188,662 |
|
Total liabilities |
|
|
35,845,368 |
|
|
|
39,548,060 |
|
|
|
|
|
|
|
|
||
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
||
Common stock |
|
|
55,057 |
|
|
|
55,057 |
|
Capital surplus |
|
|
1,125,949 |
|
|
|
1,110,520 |
|
Retained earnings |
|
|
2,536,086 |
|
|
|
2,176,998 |
|
Accumulated other comprehensive (loss) income, net |
|
|
(702,735 |
) |
|
|
126,314 |
|
Treasury stock |
|
|
(347,264 |
) |
|
|
(323,465 |
) |
Total shareholders' equity |
|
|
2,667,093 |
|
|
|
3,145,424 |
|
Total liabilities and shareholders' equity |
|
$ |
38,512,461 |
|
|
$ |
42,693,484 |
|
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, |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(audited) |
||||||||
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans |
|
$ |
273,648 |
|
|
$ |
155,324 |
|
$ |
810,007 |
|
$ |
619,273 |
|||
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Taxable interest |
|
|
51,441 |
|
|
|
37,376 |
|
|
|
192,121 |
|
|
|
127,625 |
|
Tax-exempt interest |
|
|
25,105 |
|
|
|
24,140 |
|
|
|
97,190 |
|
|
|
98,305 |
|
Total securities income |
|
|
76,546 |
|
|
|
61,516 |
|
|
|
289,311 |
|
|
|
225,930 |
|
Federal funds and resell agreements |
|
|
7,106 |
|
|
|
2,286 |
|
|
|
19,109 |
|
|
|
10,048 |
|
Interest-bearing due from banks |
|
|
9,373 |
|
|
|
2,182 |
|
|
|
18,582 |
|
|
|
5,417 |
|
Trading securities |
|
|
139 |
|
|
|
275 |
|
|
|
511 |
|
|
|
854 |
|
Total interest income |
|
|
366,812 |
|
|
|
221,583 |
|
|
|
1,137,520 |
|
|
|
861,522 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits |
|
|
97,484 |
|
|
|
6,299 |
|
|
|
167,553 |
|
|
|
26,412 |
|
Federal funds and repurchase agreements |
|
|
18,848 |
|
|
|
1,673 |
|
|
|
40,703 |
|
|
|
6,934 |
|
Other |
|
|
5,314 |
|
|
|
3,041 |
|
|
|
15,467 |
|
|
|
12,655 |
|
Total interest expense |
|
|
121,646 |
|
|
|
11,013 |
|
|
|
223,723 |
|
|
|
46,001 |
|
Net interest income |
|
|
245,166 |
|
|
|
210,570 |
|
|
|
913,797 |
|
|
|
815,521 |
|
Provision for credit losses |
|
|
9,000 |
|
|
|
8,500 |
|
|
|
37,900 |
|
|
|
20,000 |
|
Net interest income after provision for credit losses |
|
|
236,166 |
|
|
|
202,070 |
|
|
|
875,897 |
|
|
|
795,521 |
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Trust and securities processing |
|
|
59,207 |
|
|
|
58,515 |
|
|
|
237,207 |
|
|
|
224,126 |
|
Trading and investment banking |
|
|
5,251 |
|
|
|
6,977 |
|
|
|
23,201 |
|
|
|
30,939 |
|
Service charges on deposit accounts |
|
|
19,758 |
|
|
|
21,607 |
|
|
|
85,167 |
|
|
|
86,056 |
|
Insurance fees and commissions |
|
|
459 |
|
|
|
359 |
|
|
|
1,338 |
|
|
|
1,309 |
|
Brokerage fees |
|
|
13,332 |
|
|
|
3,346 |
|
|
|
43,019 |
|
|
|
12,171 |
|
Bankcard fees |
|
|
19,597 |
|
|
|
16,642 |
|
|
|
73,451 |
|
|
|
64,576 |
|
Investment securities (losses) gains, net |
|
|
(409 |
) |
|
|
1,448 |
|
|
|
58,444 |
|
|
|
5,057 |
|
Other |
|
|
8,302 |
|
|
|
9,888 |
|
|
|
32,406 |
|
|
|
42,941 |
|
Total noninterest income |
|
|
125,497 |
|
|
|
118,782 |
|
|
|
554,233 |
|
|
|
467,175 |
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Salaries and employee benefits |
|
|
135,940 |
|
|
|
131,360 |
|
|
|
524,431 |
|
|
|
504,442 |
|
Occupancy, net |
|
|
12,409 |
|
|
|
10,907 |
|
|
|
48,848 |
|
|
|
47,345 |
|
Equipment |
|
|
18,969 |
|
|
|
19,886 |
|
|
|
74,259 |
|
|
|
78,398 |
|
Supplies and services |
|
|
3,697 |
|
|
|
4,646 |
|
|
|
13,590 |
|
|
|
14,986 |
|
Marketing and business development |
|
|
8,788 |
|
|
|
6,528 |
|
|
|
25,699 |
|
|
|
18,533 |
|
Processing fees |
|
|
23,545 |
|
|
|
19,083 |
|
|
|
82,227 |
|
|
|
67,563 |
|
Legal and consulting |
|
|
10,664 |
|
|
|
10,858 |
|
|
|
39,095 |
|
|
|
32,406 |
|
Bankcard |
|
|
7,369 |
|
|
|
4,865 |
|
|
|
26,367 |
|
|
|
19,145 |
|
Amortization of other intangible assets |
|
|
1,649 |
|
|
|
1,110 |
|
|
|
5,037 |
|
|
|
4,757 |
|
Regulatory fees |
|
|
4,232 |
|
|
|
3,393 |
|
|
|
15,378 |
|
|
|
11,894 |
|
Other |
|
|
10,556 |
|
|
|
9,847 |
|
|
|
43,188 |
|
|
|
34,167 |
|
Total noninterest expense |
|
|
237,818 |
|
|
|
222,483 |
|
|
|
898,119 |
|
|
|
833,636 |
|
Income before income taxes |
|
|
123,845 |
|
|
|
98,369 |
|
|
|
532,011 |
|
|
|
429,060 |
|
Income tax expense |
|
|
23,672 |
|
|
|
19,873 |
|
|
|
100,329 |
|
|
|
76,042 |
|
NET INCOME |
|
$ |
100,173 |
|
|
$ |
78,496 |
|
|
$ |
431,682 |
|
|
$ |
353,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income – basic |
|
$ |
2.07 |
|
|
$ |
1.62 |
|
|
$ |
8.93 |
|
|
$ |
7.31 |
|
Net income – diluted |
|
|
2.06 |
|
|
|
1.61 |
|
|
|
8.86 |
|
|
|
7.24 |
|
Dividends |
|
|
0.38 |
|
|
|
0.37 |
|
|
|
1.49 |
|
|
|
1.38 |
|
Weighted average shares outstanding – basic |
|
|
48,310,993 |
|
|
|
48,371,296 |
|
|
|
48,340,922 |
|
|
|
48,271,462 |
|
Weighted average shares outstanding – diluted |
48,735,088 |
|
48,854,383 |
|
48,747,399 |
|
48,738,292 |
|
||||||||
Consolidated Statements of Comprehensive Income |
|
UMB Financial Corporation |
||||||||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
December 31, |
|
December 31, |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(audited) |
||||||||
Net income |
|
$ |
100,173 |
|
|
$ |
78,496 |
|
|
$ |
431,682 |
|
|
$ |
353,018 |
|
Other comprehensive income (loss), before tax: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized gains and losses on debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Change in unrealized holding gains and losses, net |
|
|
64,924 |
|
|
|
(46,275 |
) |
|
|
(1,137,417 |
) |
|
|
(244,695 |
) |
Less: Reclassification adjustment for gains included in net income |
|
|
— |
|
|
|
(2,739 |
) |
|
|
— |
|
|
|
(7,817 |
) |
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity |
|
|
11,186 |
|
|
|
— |
|
|
|
36,894 |
|
|
|
— |
|
Change in unrealized gains and losses on debt securities |
|
|
76,110 |
|
|
|
(49,014 |
) |
|
|
(1,100,523 |
) |
|
|
(252,512 |
) |
Unrealized gains and losses on derivative hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Change in unrealized gains and losses on derivative hedges, net |
|
|
170 |
|
|
|
(407 |
) |
|
|
12,608 |
|
|
|
3,106 |
|
Less: Reclassification adjustment for gains included in net income |
|
|
(1,942 |
) |
|
|
(802 |
) |
|
|
(5,353 |
) |
|
|
(3,352 |
) |
Change in unrealized gains and losses on derivative hedges |
|
|
(1,772 |
) |
|
|
(1,209 |
) |
|
|
7,255 |
|
|
|
(246 |
) |
Other comprehensive income (loss), before tax |
|
|
74,338 |
|
|
|
(50,223 |
) |
|
|
(1,093,268 |
) |
|
|
(252,758 |
) |
Income tax (expense) benefit |
|
|
(17,813 |
) |
|
|
12,230 |
|
|
|
264,219 |
|
|
|
60,732 |
|
Other comprehensive income (loss) |
|
|
56,525 |
|
|
|
(37,993 |
) |
|
|
(829,049 |
) |
|
|
(192,026 |
) |
Comprehensive income (loss) |
|
$ |
156,698 |
|
|
$ |
40,503 |
|
|
$ |
(397,367 |
) |
|
$ |
160,992 |
|
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, 2021 |
|
$ |
55,057 |
|
$ |
1,090,450 |
|
|
$ |
1,891,246 |
|
|
$ |
318,340 |
|
|
$ |
(338,145 |
) |
|
$ |
3,016,948 |
|
|
Total comprehensive income (loss) |
|
|
— |
|
|
|
— |
|
|
|
353,018 |
|
|
|
(192,026 |
) |
|
|
— |
|
|
|
160,992 |
|
Dividends ($1.38 per share) |
|
|
— |
|
|
|
— |
|
|
|
(67,266 |
) |
|
|
— |
|
|
|
— |
|
|
|
(67,266 |
) |
Purchase of treasury stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,506 |
) |
|
|
(5,506 |
) |
Issuances of equity awards, net of forfeitures |
|
|
— |
|
|
|
(4,605 |
) |
|
|
— |
|
|
|
— |
|
|
|
5,299 |
|
|
|
694 |
|
Recognition of equity-based compensation |
|
|
— |
|
|
|
20,514 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,514 |
|
Sale of treasury stock |
|
|
— |
|
|
|
316 |
|
|
|
— |
|
|
|
— |
|
|
|
283 |
|
|
|
599 |
|
Exercise of stock options |
|
|
— |
|
|
|
3,845 |
|
|
|
— |
|
|
|
— |
|
|
|
14,604 |
|
|
|
18,449 |
|
Balance - December 31, 2021 |
|
$ |
55,057 |
|
|
$ |
1,110,520 |
|
|
$ |
2,176,998 |
|
|
$ |
126,314 |
|
|
$ |
(323,465 |
) |
|
$ |
3,145,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
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 |
|
Average Balances / Yields and Rates |
|
UMB Financial Corporation |
|
|||||||||||||
(tax - equivalent basis) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|||||||||||||
|
|
2022 |
|
|
2021 |
|
||||||||||
|
|
Average |
|
|
Average |
|
|
Average |
|
|
Average |
|
||||
|
|
Balance |
|
|
Yield/Rate |
|
|
Balance |
|
|
Yield/Rate |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned interest |
|
$ |
20,294,661 |
|
|
|
5.35 |
% |
|
$ |
16,692,648 |
|
|
|
3.69 |
% |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
9,382,837 |
|
|
|
2.18 |
|
|
|
8,607,960 |
|
|
|
1.72 |
|
Tax-exempt |
|
|
3,803,737 |
|
|
|
3.31 |
|
|
|
4,158,306 |
|
|
|
2.92 |
|
Total securities |
|
|
13,186,574 |
|
|
|
2.50 |
|
|
|
12,766,266 |
|
|
|
2.11 |
|
Federal funds and resell agreements |
|
|
656,092 |
|
|
|
4.30 |
|
|
|
1,099,090 |
|
|
|
0.83 |
|
Interest bearing due from banks |
|
|
1,135,356 |
|
|
|
3.28 |
|
|
|
5,712,993 |
|
|
|
0.15 |
|
Trading securities |
|
|
11,799 |
|
|
|
5.31 |
|
|
|
29,426 |
|
|
|
4.41 |
|
Total earning assets |
|
|
35,284,482 |
|
|
|
4.20 |
|
|
|
36,300,423 |
|
|
|
2.49 |
|
Allowance for credit losses |
|
|
(188,299 |
) |
|
|
|
|
|
|
(196,891 |
) |
|
|
|
|
Other assets |
|
|
2,243,437 |
|
|
|
|
|
|
|
1,974,579 |
|
|
|
|
|
Total assets |
|
$ |
37,339,620 |
|
|
|
|
|
|
$ |
38,078,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
18,919,537 |
|
|
|
2.04 |
% |
|
$ |
18,511,653 |
|
|
|
0.13 |
% |
Federal funds and repurchase agreements |
|
|
2,424,171 |
|
|
|
3.08 |
|
|
|
2,611,151 |
|
|
|
0.25 |
|
Borrowed funds |
|
|
396,874 |
|
|
|
5.31 |
|
|
|
271,296 |
|
|
|
4.45 |
|
Total interest-bearing liabilities |
|
|
21,740,582 |
|
|
|
2.22 |
|
|
|
21,394,100 |
|
|
|
0.20 |
|
Noninterest-bearing demand deposits |
|
|
12,454,413 |
|
|
|
|
|
|
|
13,124,918 |
|
|
|
|
|
Other liabilities |
|
|
522,932 |
|
|
|
|
|
|
|
417,015 |
|
|
|
|
|
Shareholders' equity |
|
|
2,621,693 |
|
|
|
|
|
|
|
3,142,078 |
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
37,339,620 |
|
|
|
|
|
|
$ |
38,078,111 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
1.98 |
% |
|
|
|
|
|
|
2.29 |
% |
Net interest margin |
|
|
|
|
|
|
2.83 |
|
|
|
|
|
|
|
2.37 |
|
Average Balances / Yields and Rates |
|
UMB Financial Corporation |
|
|||||||||||||
(tax - equivalent basis) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|||||||||||||
|
|
2022 |
|
|
2021 |
|
||||||||||
|
|
Average |
|
|
Average |
|
|
Average |
|
|
Average |
|
||||
|
|
Balance |
|
|
Yield/Rate |
|
|
Balance |
|
|
Yield/Rate |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned interest |
|
$ |
18,823,810 |
|
|
|
4.30 |
% |
|
$ |
16,629,867 |
|
|
|
3.72 |
% |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
9,616,691 |
|
|
|
2.00 |
|
|
|
7,422,432 |
|
|
|
1.72 |
|
Tax-exempt |
|
|
3,885,153 |
|
|
|
3.16 |
|
|
|
4,246,943 |
|
|
|
2.93 |
|
Total securities |
|
|
13,501,844 |
|
|
|
2.33 |
|
|
|
11,669,375 |
|
|
|
2.16 |
|
Federal funds and resell agreements |
|
|
965,911 |
|
|
|
1.98 |
|
|
|
1,234,533 |
|
|
|
0.81 |
|
Interest bearing due from banks |
|
|
2,408,468 |
|
|
|
0.77 |
|
|
|
4,063,089 |
|
|
|
0.13 |
|
Trading securities |
|
|
12,076 |
|
|
|
4.96 |
|
|
|
23,480 |
|
|
|
4.33 |
|
Total earning assets |
|
|
35,712,109 |
|
|
|
3.26 |
|
|
|
33,620,344 |
|
|
|
2.64 |
|
Allowance for credit losses |
|
|
(184,072 |
) |
|
|
|
|
|
|
(204,705 |
) |
|
|
|
|
Other assets |
|
|
2,050,976 |
|
|
|
|
|
|
|
1,912,911 |
|
|
|
|
|
Total assets |
|
$ |
37,579,013 |
|
|
|
|
|
|
$ |
35,328,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
18,063,498 |
|
|
|
0.93 |
% |
|
$ |
17,678,122 |
|
|
|
0.15 |
% |
Federal funds and repurchase agreements |
|
|
2,777,089 |
|
|
|
1.47 |
|
|
|
2,618,034 |
|
|
|
0.26 |
|
Borrowed funds |
|
|
309,204 |
|
|
|
5.00 |
|
|
|
270,498 |
|
|
|
4.68 |
|
Total interest-bearing liabilities |
|
|
21,149,791 |
|
|
|
1.06 |
|
|
|
20,566,654 |
|
|
|
0.22 |
|
Noninterest-bearing demand deposits |
|
|
13,264,146 |
|
|
|
|
|
|
|
11,254,761 |
|
|
|
|
|
Other liabilities |
|
|
438,772 |
|
|
|
|
|
|
|
418,021 |
|
|
|
|
|
Shareholders' equity |
|
|
2,726,304 |
|
|
|
|
|
|
|
3,089,114 |
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
37,579,013 |
|
|
|
|
|
|
$ |
35,328,550 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
2.20 |
% |
|
|
|
|
|
|
2.42 |
% |
Net interest margin |
|
|
|
|
|
|
2.63 |
|
|
|
|
|
|
|
2.50 |
|
Business Segment Information |
|
UMB Financial Corporation |
||||||||||||||
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
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) |
|
|
15,242 |
|
|
|
9,219 |
|
|
|
(789 |
) |
|
|
23,672 |
|
Net income (loss) |
|
$ |
64,497 |
|
|
$ |
39,015 |
|
|
$ |
(3,339 |
) |
|
$ |
100,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended December 31, 2021 |
||||||||||||||
|
|
Commercial Banking |
|
Institutional Banking |
|
Personal Banking |
|
Total |
||||||||
Net interest income |
|
$ |
149,834 |
|
|
$ |
23,044 |
|
|
|
37,692 |
|
|
$ |
210,570 |
|
Provision for credit losses |
|
|
7,446 |
|
|
|
90 |
|
|
|
964 |
|
|
|
8,500 |
|
Noninterest income |
|
|
22,110 |
|
|
|
70,713 |
|
|
|
25,959 |
|
|
|
118,782 |
|
Noninterest expense |
|
|
84,541 |
|
|
|
74,885 |
|
|
|
63,057 |
|
|
|
222,483 |
|
Income (loss) before taxes |
|
|
79,957 |
|
|
|
18,782 |
|
|
|
(370 |
) |
|
|
98,369 |
|
Income tax expense (benefit) |
|
|
16,153 |
|
|
|
3,794 |
|
|
|
(74 |
) |
|
|
19,873 |
|
Net income (loss) |
|
$ |
63,804 |
|
|
$ |
14,988 |
|
|
$ |
(296 |
) |
|
$ |
78,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
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 |
|
|
66,548 |
|
|
|
30,551 |
|
|
|
3,230 |
|
|
|
100,329 |
|
Net income |
|
$ |
286,334 |
|
|
$ |
131,451 |
|
|
$ |
13,897 |
|
|
$ |
431,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Year Ended December 31, 2021 |
||||||||||||||
|
|
Commercial Banking |
|
Institutional Banking |
|
Personal Banking |
|
Total |
||||||||
Net interest income |
|
$ |
579,992 |
|
|
$ |
87,644 |
|
|
$ |
147,885 |
|
|
$ |
815,521 |
|
Provision for credit losses |
|
|
15,543 |
|
|
|
630 |
|
|
|
3,827 |
|
|
|
20,000 |
|
Noninterest income |
|
|
84,417 |
|
|
|
273,483 |
|
|
|
109,275 |
|
|
|
467,175 |
|
Noninterest expense |
|
|
306,424 |
|
|
|
292,142 |
|
|
|
235,070 |
|
|
|
833,636 |
|
Income before taxes |
|
|
342,442 |
|
|
|
68,355 |
|
|
|
18,263 |
|
|
|
429,060 |
|
Income tax expense |
|
|
60,691 |
|
|
|
12,113 |
|
|
|
3,238 |
|
|
|
76,042 |
|
Net income |
|
$ |
281,751 |
|
|
$ |
56,242 |
|
|
$ |
15,025 |
|
|
$ |
353,018 |
|
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, 2022.
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, |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net income (GAAP) |
|
$ |
100,173 |
|
|
$ |
78,496 |
|
|
$ |
431,682 |
|
|
$ |
353,018 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisition expense |
|
|
851 |
|
|
|
18 |
|
|
|
922 |
|
|
|
18 |
|
Severance expense |
|
|
358 |
|
|
|
359 |
|
|
|
838 |
|
|
|
1,122 |
|
COVID-19 related expense |
|
|
— |
|
|
|
169 |
|
|
|
— |
|
|
|
696 |
|
Tax-impact of adjustments (i) |
|
|
(290 |
) |
|
|
(121 |
) |
|
|
(422 |
) |
|
|
(408 |
) |
Total Non-GAAP adjustments (net of tax) |
|
|
919 |
|
|
|
425 |
|
|
|
1,338 |
|
|
|
1,428 |
|
Net operating income (Non-GAAP) |
|
$ |
101,092 |
|
|
$ |
78,921 |
|
|
$ |
433,020 |
|
|
$ |
354,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share - diluted (GAAP) |
|
$ |
2.06 |
|
|
$ |
1.61 |
|
|
$ |
8.86 |
|
|
$ |
7.24 |
|
Acquisition expense |
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
Severance expense |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
COVID-19 related expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
Tax-impact of adjustments (i) |
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
(0.01 |
) |
Operating earnings per share - diluted (Non-GAAP) |
|
$ |
2.07 |
|
|
$ |
1.62 |
|
|
$ |
8.88 |
|
|
$ |
7.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Return on average assets |
|
|
1.06 |
% |
|
|
0.82 |
% |
|
|
1.15 |
% |
|
|
1.00 |
% |
Return on average equity |
|
|
15.16 |
|
|
|
9.91 |
|
|
|
15.83 |
|
|
|
11.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating return on average assets |
|
|
1.07 |
% |
|
|
0.82 |
% |
|
|
1.15 |
% |
|
|
1.00 |
% |
Operating return on average equity |
|
|
15.30 |
|
|
|
9.97 |
|
|
|
15.88 |
|
|
|
11.47 |
|
(i) Calculated using the company’s marginal tax rate of 24.0% in 2022 and 22.2% in 2021.
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, |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Noninterest expense |
|
$ |
237,818 |
|
|
$ |
222,483 |
|
|
$ |
898,119 |
|
|
$ |
833,636 |
|
Adjustments to arrive at operating noninterest expense (pre-tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expense |
|
|
851 |
|
|
|
18 |
|
|
|
922 |
|
|
|
18 |
|
Severance expense |
|
|
358 |
|
|
|
359 |
|
|
|
838 |
|
|
|
1,122 |
|
COVID-19 related expense |
|
|
— |
|
|
|
169 |
|
|
|
— |
|
|
|
696 |
|
Total Non-GAAP adjustments (pre-tax) |
|
|
1,209 |
|
|
|
546 |
|
|
|
1,760 |
|
|
|
1,836 |
|
Operating noninterest expense (Non-GAAP) |
|
$ |
236,609 |
|
|
$ |
221,937 |
|
|
$ |
896,359 |
|
|
$ |
831,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense |
|
$ |
237,818 |
|
|
$ |
222,483 |
|
|
$ |
898,119 |
|
|
$ |
833,636 |
|
Less: Amortization of other intangibles |
|
|
1,649 |
|
|
|
1,110 |
|
|
|
5,037 |
|
|
|
4,757 |
|
Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A) |
|
$ |
236,169 |
|
|
$ |
221,373 |
|
|
$ |
893,082 |
|
|
$ |
828,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating noninterest expense |
|
$ |
236,609 |
|
|
$ |
221,937 |
|
|
$ |
896,359 |
|
|
$ |
831,800 |
|
Less: Amortization of other intangibles |
|
|
1,649 |
|
|
|
1,110 |
|
|
|
5,037 |
|
|
|
4,757 |
|
Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B) |
|
$ |
234,960 |
|
|
$ |
220,827 |
|
|
$ |
891,322 |
|
|
$ |
827,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
245,166 |
|
|
$ |
210,570 |
|
|
$ |
913,797 |
|
|
$ |
815,521 |
|
Noninterest income |
|
|
125,497 |
|
|
|
118,782 |
|
|
|
554,233 |
|
|
|
467,175 |
|
Less: Gains on sales of securities available for sale, net |
|
|
— |
|
|
|
2,739 |
|
|
|
— |
|
|
|
7,817 |
|
Total Non-GAAP Revenue (denominator A) |
|
$ |
370,663 |
|
|
$ |
326,613 |
|
|
$ |
1,468,030 |
|
|
$ |
1,274,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (numerator A/denominator A) |
|
|
63.72 |
% |
|
|
67.78 |
% |
|
|
60.84 |
% |
|
|
65.02 |
% |
Operating efficiency ratio (Non-GAAP) (numerator B/denominator A) |
|
|
63.39 |
|
|
|
67.61 |
|
|
|
60.72 |
|
|
|
64.87 |
|
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, |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Net interest income (GAAP) |
|
$ |
245,166 |
|
|
$ |
210,570 |
|
|
$ |
913,797 |
|
|
$ |
815,521 |
|
Noninterest income (GAAP) |
|
|
125,497 |
|
|
|
118,782 |
|
|
|
554,233 |
|
|
|
467,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
|
|
237,818 |
|
|
|
222,483 |
|
|
|
898,119 |
|
|
|
833,636 |
|
Adjustments to arrive at operating noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expense |
|
|
851 |
|
|
|
18 |
|
|
|
922 |
|
|
|
18 |
|
Severance expense |
|
|
358 |
|
|
|
359 |
|
|
|
838 |
|
|
|
1,122 |
|
COVID-19 related expense |
|
|
— |
|
|
|
169 |
|
|
|
— |
|
|
|
696 |
|
Total Non-GAAP adjustments |
|
|
1,209 |
|
|
|
546 |
|
|
|
1,760 |
|
|
|
1,836 |
|
Operating noninterest expense (Non-GAAP) |
|
|
236,609 |
|
|
|
221,937 |
|
|
|
896,359 |
|
|
|
831,800 |
|
Operating pre-tax, pre-provision income (Non-GAAP) |
|
$ |
134,054 |
|
|
$ |
107,415 |
|
|
$ |
571,671 |
|
|
$ |
450,896 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income earnings per share - diluted (GAAP) |
|
$ |
5.03 |
|
|
$ |
4.31 |
|
|
$ |
18.75 |
|
|
$ |
16.73 |
|
Noninterest income (GAAP) |
|
|
2.57 |
|
|
|
2.43 |
|
|
|
11.37 |
|
|
|
9.59 |
|
Noninterest expense (GAAP) |
|
|
4.88 |
|
|
|
4.55 |
|
|
|
18.43 |
|
|
|
17.10 |
|
Acquisition expense |
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
Severance expense |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
COVID-19 related expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP) |
|
$ |
2.75 |
|
|
$ |
2.20 |
|
|
$ |
11.73 |
|
|
$ |
9.26 |
|
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, |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Net interest income (GAAP) |
|
$ |
245,166 |
|
|
$ |
210,570 |
|
|
$ |
913,797 |
|
|
$ |
815,521 |
|
Adjustments to arrive at net interest income - FTE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent interest |
|
|
6,663 |
|
|
|
6,483 |
|
|
|
25,794 |
|
|
|
26,334 |
|
Net interest income - FTE (Non-GAAP) |
|
|
251,829 |
|
|
|
217,053 |
|
|
|
939,591 |
|
|
|
841,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (GAAP) |
|
|
125,497 |
|
|
|
118,782 |
|
|
|
554,233 |
|
|
|
467,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
|
|
237,818 |
|
|
|
222,483 |
|
|
|
898,119 |
|
|
|
833,636 |
|
Adjustments to arrive at operating noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expense |
|
|
851 |
|
|
|
18 |
|
|
|
922 |
|
|
|
18 |
|
Severance expense |
|
|
358 |
|
|
|
359 |
|
|
|
838 |
|
|
|
1,122 |
|
COVID-19 related expense |
|
|
— |
|
|
|
169 |
|
|
|
— |
|
|
|
696 |
|
Total Non-GAAP adjustments |
|
|
1,209 |
|
|
|
546 |
|
|
|
1,760 |
|
|
|
1,836 |
|
Operating noninterest expense (Non-GAAP) |
|
|
236,609 |
|
|
|
221,937 |
|
|
|
896,359 |
|
|
|
831,800 |
|
Operating pre-tax, pre-provision income - FTE (Non-GAAP) |
|
$ |
140,717 |
|
|
$ |
113,898 |
|
|
$ |
597,465 |
|
|
$ |
477,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income earnings per share - diluted (GAAP) |
|
$ |
5.03 |
|
|
$ |
4.31 |
|
|
$ |
18.75 |
|
|
$ |
16.73 |
|
Tax equivalent interest |
|
|
0.14 |
|
|
|
0.13 |
|
|
|
0.53 |
|
|
|
0.53 |
|
Net interest income - FTE (Non-GAAP) |
|
|
5.17 |
|
|
|
4.44 |
|
|
|
19.28 |
|
|
|
17.26 |
|
Noninterest income (GAAP) |
|
|
2.57 |
|
|
|
2.43 |
|
|
|
11.37 |
|
|
|
9.59 |
|
Noninterest expense (GAAP) |
|
|
4.88 |
|
|
|
4.55 |
|
|
|
18.43 |
|
|
|
17.10 |
|
Acquisition expense |
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
Severance expense |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
COVID-19 related expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
Operating pre-tax, pre-provision income - FTE earnings per share - diluted (Non-GAAP) |
|
$ |
2.89 |
|
|
$ |
2.33 |
|
|
$ |
12.26 |
|
|
$ |
9.79 |
|
Tangible book value non-GAAP reconciliations: |
UMB Financial Corporation |
|
||||||
(unaudited, dollars in thousands except share and per share data) |
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Total shareholders' equity (GAAP) |
|
$ |
2,667,093 |
|
|
$ |
3,145,424 |
|
Less: Intangible assets |
|
|
|
|
|
|
|
|
Goodwill |
|
|
207,385 |
|
|
|
174,518 |
|
Other intangibles, net |
|
|
78,724 |
|
|
|
14,416 |
|
Total intangibles, net |
|
|
286,109 |
|
|
|
188,934 |
|
Total tangible shareholders' equity (Non-GAAP) |
|
$ |
2,380,984 |
|
|
$ |
2,956,490 |
|
|
|
|
|
|
|
|
|
|
Total shares outstanding |
|
|
48,319,404 |
|
|
|
48,430,805 |
|
|
|
|
|
|
|
|
|
|
Ratio of total shareholders' equity (book value) per share |
|
$ |
55.20 |
|
|
$ |
64.95 |
|
Ratio of total tangible shareholders' equity (tangible book value) per share (Non-GAAP) |
|
|
49.28 |
|
|
|
61.05 |
|