UMB Financial Corporation Reports Third Quarter Net Income of $109.6 Million and Net Operating Income(i) of $110.4 Million.

Third Quarter 2024 Financial Highlights

  • GAAP net income of $109.6 million, or $2.23 per diluted share.
  • Net operating income(i) of $110.4 million, or $2.25 per diluted share.
  • Average loans increased 9.8% on a linked-quarter, annualized basis, to $24.4 billion.
  • Average loans increased $1.6 billion, or 7.2%, as compared to the third quarter of 2023.
  • Average deposits increased 11.1% on a linked-quarter, annualized basis, to $35.3 billion.
  • Credit quality remained strong, with net charge-offs of just 0.08% of average loans for the nine months ended September 30, 2024.

KANSAS CITY, Mo.--()--UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the third quarter of 2024 of $109.6 million, or $2.23 per diluted share, compared to $101.3 million, or $2.07 per diluted share, in the second quarter (linked quarter) and $96.6 million, or $1.98 per diluted share, in the third quarter of 2023.

Net operating income, a non-GAAP financial measure reconciled later in this release to net income, the nearest comparable GAAP measure, was $110.4 million, or $2.25 per diluted share, for the third quarter of 2024, compared to $105.9 million, or $2.16 per diluted share, for the linked quarter and $98.4 million, or $2.02 per diluted share, for the third 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 $154.6 million, or $3.15 per diluted share, for the third quarter of 2024, compared to $146.8 million, or $3.00 per diluted share, for the linked quarter, and $126.6 million, or $2.60 per diluted share, for the third quarter of 2023. These operating PTPP results represent increases of 5.3% on a linked-quarter basis and 22.1% compared to the third quarter of 2023.

“We are pleased with another quarter of solid financial performance across the board,” said Mariner Kemper, UMB Financial Corporation chairman and chief executive officer. “Strong institutional banking activity contributed to the 9.5% increase in fee income compared to the linked quarter, and near-double digit annualized loan growth drove net interest income higher. Net interest margin decreased five basis points sequentially due largely to the decline in average noninterest-bearing deposit balances driven by net client disbursements within our asset servicing and corporate trust lines of business, which can be episodic in nature. Asset quality remains strong as evidenced by only eight basis points of net charge-offs to average loans on a year-to-date basis; the higher provision expense in the quarter largely reflects the impact of $793.3 million in net loan growth that was driven by record top-line loan production of $1.4 billion.

“We are on track to complete our pending acquisition of Heartland Financial, subject to regulatory and other approvals, in the first quarter of 2025. Our preparations for legal day one of the acquisition are well underway, with many cross-functional workstreams collaborating with personnel from Heartland Financial. This financially and strategically compelling combination will add further diversity and scale to our already well-diversified financial model. We look forward to serving our prospective clients and geographies as well as welcoming new associates to our UMB family.”

(i)

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

Third Quarter 2024 earnings discussion

Summary of quarterly financial results

 

UMB Financial Corporation

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

 

 

 

 

 

 

 

 

Q3

 

Q2

 

Q3

 

 

2024

 

2024

 

2023

Net income (GAAP)

 

$

109,643

 

 

$

101,345

 

 

$

96,554

 

Earnings per share - diluted (GAAP)

 

 

2.23

 

 

 

2.07

 

 

 

1.98

 

 

 

 

 

 

 

 

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

 

 

154,594

 

 

 

146,840

 

 

 

126,592

 

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

 

 

3.15

 

 

 

3.00

 

 

 

2.60

 

 

 

 

 

 

 

 

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

 

 

161,195

 

 

 

153,247

 

 

 

133,151

 

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

 

 

3.28

 

 

 

3.13

 

 

 

2.73

 

 

 

 

 

 

 

 

Net operating income (Non-GAAP)(i)

 

 

110,358

 

 

 

105,873

 

 

 

98,400

 

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

 

 

2.25

 

 

 

2.16

 

 

 

2.02

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

Return on average assets

 

 

1.01

%

 

 

0.96

%

 

 

0.97

%

Return on average equity

 

 

12.63

 

 

 

12.73

 

 

 

13.25

 

Efficiency ratio

 

 

61.69

 

 

 

63.37

 

 

 

64.51

 

 

 

 

 

 

 

 

Non-GAAP(i)

 

 

 

 

 

 

Operating return on average assets

 

 

1.01

%

 

 

1.00

%

 

 

0.99

%

Operating return on average equity

 

 

12.71

 

 

 

13.30

 

 

 

13.50

 

Operating efficiency ratio

 

 

61.46

 

 

 

61.86

 

 

 

63.83

 

(i)

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

Summary of year-to-date financial results

 

UMB Financial Corporation

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

 

September

 

September

 

 

YTD

 

YTD

 

 

2024

 

2023

Net income (GAAP)

 

$

321,246

 

 

$

279,101

 

Earnings per share - diluted (GAAP)

 

 

6.56

 

 

 

5.73

 

 

 

 

 

 

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

 

 

458,885

 

 

 

389,890

 

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

 

 

9.37

 

 

 

8.00

 

 

 

 

 

 

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

 

 

478,409

 

 

 

409,579

 

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

 

 

9.76

 

 

 

8.40

 

 

 

 

 

 

Net operating income (Non-GAAP)(i)

 

 

336,943

 

 

 

285,077

 

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

 

 

6.88

 

 

 

5.85

 

 

 

 

 

 

GAAP

 

 

 

 

Return on average assets

 

 

1.01

%

 

 

0.95

%

Return on average equity

 

 

13.13

 

 

 

13.18

 

Efficiency ratio

 

 

62.82

 

 

 

64.40

 

 

 

 

 

 

Non-GAAP(i)

 

 

 

 

Operating return on average assets

 

 

1.06

%

 

 

0.97

%

Operating return on average equity

 

 

13.77

 

 

 

13.46

 

Operating efficiency ratio

 

 

61.12

 

 

 

63.68

 

Summary of revenue

 

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

Q2

 

Q3

 

CQ vs.

 

CQ vs.

 

 

2024

 

2024

 

2023

 

LQ

 

PY

Net interest income

 

$

247,376

 

 

$

245,108

 

 

$

222,287

 

 

$

2,268

 

 

$

25,089

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

Trust and securities processing

 

 

74,222

 

 

 

70,010

 

 

 

66,668

 

 

 

4,212

 

 

 

7,554

 

Trading and investment banking

 

 

7,118

 

 

 

5,461

 

 

 

3,771

 

 

 

1,657

 

 

 

3,347

 

Service charges on deposit accounts

 

 

20,089

 

 

 

22,261

 

 

 

21,080

 

 

 

(2,172

)

 

 

(991

)

Insurance fees and commissions

 

 

282

 

 

 

267

 

 

 

272

 

 

 

15

 

 

 

10

 

Brokerage fees

 

 

15,749

 

 

 

14,020

 

 

 

13,400

 

 

 

1,729

 

 

 

2,349

 

Bankcard fees

 

 

22,394

 

 

 

22,346

 

 

 

19,296

 

 

 

48

 

 

 

3,098

 

Investment securities gains (losses), net

 

 

2,623

 

 

 

(1,867

)

 

 

271

 

 

 

4,490

 

 

 

2,352

 

Other

 

 

16,266

 

 

 

12,421

 

 

 

8,559

 

 

 

3,845

 

 

 

7,707

 

Total noninterest income

 

$

158,743

 

 

$

144,919

 

 

$

133,317

 

 

$

13,824

 

 

$

25,426

 

Total revenue

 

$

406,119

 

 

$

390,027

 

 

$

355,604

 

 

$

16,092

 

 

$

50,515

 

Net interest income (FTE)

 

$

253,977

 

 

$

251,515

 

 

$

228,846

 

 

 

 

 

Net interest margin (FTE)

 

 

2.46

%

 

 

2.51

%

 

 

2.43

%

 

 

 

 

Total noninterest income as a % of total revenue

 

 

39.1

 

 

 

37.2

 

 

 

37.5

 

 

 

 

 

Net interest income

  • Third quarter 2024 net interest income totaled $247.4 million, an increase of $2.3 million, or 0.9%, from the linked quarter, driven primarily by continued growth in average loans and higher levels of liquidity, partially offset by higher interest expense driven by a mix shift in the funding composition.
  • Average earning assets increased $783.1 million, or 1.9%, from the linked quarter, largely driven by an increase of $581.3 million in average loans, an increase of $82.1 million in federal funds sold and resell agreements, and an increase of $75.8 million in interest-bearing due from banks.
  • Average interest-bearing liabilities increased $1.1 billion, or 4.0%, from the linked quarter, primarily driven by an increase of $1.6 billion in interest-bearing deposits, partially offset by a decrease of $280.1 million in borrowed funds. Average noninterest-bearing demand deposits decreased $600.9 million, or 5.9%, as compared to the linked quarter, driven by net cash disbursements within the asset servicing and other corporate trust lines of business. Compared to the linked quarter, average commercial demand deposit balances increased 2.8% during the quarter.
  • Net interest margin for the third quarter was 2.46%, a decrease of five basis points from the linked quarter, driven by the increased cost of interest-bearing liabilities due to mix shift in the funding composition, partially offset by increased loan yields and earning asset mix changes. The cost of interest-bearing liabilities increased three basis points to 4.18%. Total cost of funds increased 10 basis points from the linked quarter to 3.16%. Average loan yields increased two basis points while earning asset yields increased three basis points from the linked quarter.
  • On a year-over-year basis, net interest income increased $25.1 million, or 11.3%, driven by a $1.6 billion, or 7.2%, increase in average loans, partially offset by higher interest costs due to unfavorable mix shift in the composition of liabilities as well as the impact of higher short-term interest rates.
  • Compared to the third quarter of 2023, average earning assets increased $3.7 billion, or 9.8%, largely driven by an increase of $2.0 billion in interest-bearing due from banks and the increase in average loans noted above.
  • Average deposits increased 12.6% compared to the third quarter of 2023. Average noninterest-bearing demand deposit balances decreased 5.1% compared to the third quarter of 2023, driven by net cash disbursements within the commercial and institutional segments. Average demand deposit balances comprised 26.9% of total deposits, compared to 29.4% in the linked quarter and 32.0% in the third quarter of 2023.
  • Average borrowed funds decreased $280.1 million as compared to the linked quarter and $1.1 billion as compared to the third quarter of 2023, driven by short-term borrowings with the Federal Home Loan Bank and the Federal Reserve.

Noninterest income

  • Third quarter 2024 noninterest income increased $13.8 million, or 9.5%, on a linked-quarter basis, largely due to:
    • $2.6 million in investment securities gains, primarily driven by increased valuations in the company's non-marketable securities compared to a $1.9 million loss in the linked quarter.
    • Increases of $2.8 million in fund services income and $1.6 million in corporate trust income, both recorded in trust and securities processing.
    • An increase of $2.7 million in company-owned life insurance and a gain of $1.1 million on the sale of a building during the third quarter of 2024, both recorded in other income. The increase in company-owned life insurance was offset by a proportionate increase in deferred compensation expense as noted below.
    • Increases of $1.7 million in both brokerage income and trading and investment banking, primarily driven by higher 12b-1 fees and money market income and increased trading volume, respectively.
    • These increases were partially offset by a decrease of $2.2 million in service charges on deposit accounts primarily due to lower healthcare income related to customer transfer and conversion.
  • Compared to the prior year, noninterest income in the third quarter of 2024 increased $25.4 million, or 19.1%, primarily driven by:
    • An increase of $7.7 million in other income, primarily driven by an increase of $4.0 million in company-owned life insurance income, a $1.1 million gain on the sale of a building during the third quarter of 2024, and an increase of $0.7 million in bank-owned life insurance income. The increase in company-owned life insurance was offset by a proportionate increase in deferred compensation expense as noted below.
    • Increases of $5.2 million in fund services income, $1.8 million in corporate trust income, and $0.6 million in trust income, all recorded in trust and securities processing.
    • Increases of $3.3 million in trading and investment banking, driven by higher trading volume and $3.1 million in bankcard income, driven by increased interchange income.
    • Increases of $2.4 million in investment securities gains, primarily driven by increased valuations in the company's non-marketable securities and $2.3 million in brokerage income, driven by higher 12b-1 fees and money market income.

Noninterest expense

Summary of noninterest expense

 

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

Q2

 

Q3

 

CQ vs.

 

CQ vs.

 

 

2024

 

2024

 

2023

 

LQ

 

PY

Salaries and employee benefits

 

$

146,984

 

$

142,861

 

$

133,380

 

$

4,123

 

 

$

13,604

 

Occupancy, net

 

 

12,274

 

 

 

11,723

 

 

 

12,283

 

 

 

551

 

 

 

(9

)

Equipment

 

 

15,988

 

 

 

15,603

 

 

 

17,204

 

 

 

385

 

 

 

(1,216

)

Supplies and services

 

 

4,967

 

 

 

3,404

 

 

 

3,213

 

 

 

1,563

 

 

 

1,754

 

Marketing and business development

 

 

6,817

 

 

 

6,598

 

 

 

6,631

 

 

 

219

 

 

 

186

 

Processing fees

 

 

29,697

 

 

 

29,701

 

 

 

26,016

 

 

 

(4

)

 

 

3,681

 

Legal and consulting

 

 

9,518

 

 

 

16,566

 

 

 

7,230

 

 

 

(7,048

)

 

 

2,288

 

Bankcard

 

 

12,482

 

 

 

11,818

 

 

 

8,852

 

 

 

664

 

 

 

3,630

 

Amortization of other intangible assets

 

 

1,917

 

 

 

1,911

 

 

 

2,124

 

 

 

6

 

 

 

(207

)

Regulatory fees

 

 

4,686

 

 

 

2,568

 

 

 

6,153

 

 

 

2,118

 

 

 

(1,467

)

Other

 

 

7,124

 

 

 

6,314

 

 

 

8,355

 

 

 

810

 

 

 

(1,231

)

Total noninterest expense

 

$

252,454

 

 

$

249,067

 

 

$

231,441

 

 

$

3,387

 

 

$

21,013

 

  • GAAP noninterest expense for the third quarter of 2024 was $252.5 million, an increase of $3.4 million, or 1.4%, from the linked quarter and an increase of $21.0 million, or 9.1% from the third 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 $251.5 million for the third quarter of 2024, an increase of $8.3 million, or 3.4%, from the linked quarter and an increase of $22.5 million, or 9.8%, from the third quarter of 2023.
  • The linked-quarter increase in GAAP noninterest expense was driven by:
    • An increase of $2.1 million in regulatory fees expense, driven primarily by changes in loss estimates related to the industry-wide FDIC special assessment levied on banks to recoup the losses related to two of the bank failures in March 2023. The results for the third quarter of 2024 include a reduction of $1.7 million in pre-tax FDIC special assessment expense while the second quarter included a reduction of $3.8 million.
    • Increases of $1.9 million in deferred compensation expense, $1.9 million in salary and wage expense, and $1.3 million in bonus and commission expense, tied to improved company performance, all recorded in salaries and employee benefits. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above.
    • Increases of $1.6 million in supplies driven by purchases of computers during the third quarter, $0.8 million in other expense, and $0.7 million in bankcard expense driven by higher administrative expense.
    • These increases were partially offset by a decrease of $7.0 million in legal and consulting expense driven by expense related to the announced acquisition of Heartland Financial USA, Inc. during the linked quarter.
  • The year-over-year increase in GAAP noninterest expense was driven by:
    • Increases of $5.4 million in salary and wage expense, $3.6 million in bonus and commission expense tied to improved company performance, and $2.7 million in deferred compensation expense, all recorded in salaries and employee benefits. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above.
    • Increases of $3.7 million in processing fees expense due to increased software subscription costs and $3.6 million in bankcard expense driven by higher administrative expense.
    • Increases of $2.3 million in legal and consulting expense related to the announced acquisition of Heartland Financial USA, Inc. and $1.8 million in supplies driven by purchases of computers during the third quarter of 2024.
    • These increases were partially offset by the following decreases:
      • A decrease of $1.5 million in regulatory fees expense driven by the aforementioned reduction of $1.7 million in FDIC special assessment expense recorded in the third quarter of 2024.
      • A decrease of $1.9 million in operational losses, recorded in other expense, driven by lower activity in the current period.

Income taxes

  • The company’s effective tax rate was 19.0% for the nine months ended September 30, 2024, compared to 18.1% for the same period in 2023. The increase in the effective tax rate in 2024 is primarily attributable to a smaller portion of income being earned from tax-exempt municipal securities and higher non-deductible acquisition costs in 2024.

Balance sheet

  • Average total assets for the third quarter of 2024 were $43.3 billion compared to $42.5 billion for the linked quarter and $39.5 billion for the same period in 2023.

Summary of average loans and leases - QTD Average

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Q3

 

Q2

 

Q3

 

CQ vs.

 

CQ vs.

 

 

2024

 

2024

 

2023

 

LQ

 

PY

Commercial and industrial

 

$

10,176,502

 

$

9,926,855

 

$

9,852,335

 

$

249,647

 

$

324,167

 

Specialty lending

 

 

508,957

 

 

 

502,646

 

 

 

526,711

 

 

 

6,311

 

 

(17,754

)

Commercial real estate

 

 

9,669,076

 

 

 

9,360,991

 

 

 

8,545,206

 

 

 

308,085

 

 

1,123,870

 

Consumer real estate

 

 

3,045,229

 

 

 

2,998,560

 

 

 

2,922,753

 

 

 

46,669

 

 

122,476

 

Consumer

 

 

164,105

 

 

 

159,743

 

 

 

139,384

 

 

 

4,362

 

 

24,721

 

Credit cards

 

 

613,663

 

 

 

617,502

 

 

 

477,904

 

 

 

(3,839

)

 

135,759

 

Leases and other

 

 

209,631

 

 

 

239,532

 

 

 

287,174

 

 

 

(29,901

)

 

(77,543

)

Total loans

 

$

24,387,163

 

 

$

23,805,829

 

 

$

22,751,467

 

 

$

581,334

 

$

1,635,696

 

  • Average loans for the third quarter of 2024 increased $581.3 million, or 2.4%, on a linked-quarter basis and $1.6 billion, or 7.2%, compared to the third quarter of 2023.

Summary of average securities - QTD Average

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

Q2

 

Q3

 

CQ vs.

 

CQ vs.

 

 

2024

 

2024

 

2023

 

LQ

 

PY

Securities available for sale:

 

 

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

821,308

 

$

900,348

 

$

786,136

 

$

(79,040

)

 

$

35,172

 

U.S. Agencies

 

 

166,250

 

 

 

210,151

 

 

 

172,832

 

 

 

(43,901

)

 

 

(6,582

)

Mortgage-backed

 

 

3,888,879

 

 

 

3,667,289

 

 

 

3,611,305

 

 

 

221,590

 

 

 

277,574

 

State and political subdivisions

 

 

1,240,199

 

 

 

1,213,000

 

 

 

1,275,591

 

 

 

27,199

 

 

 

(35,392

)

Corporates

 

 

320,570

 

 

 

323,751

 

 

 

345,026

 

 

 

(3,181

)

 

 

(24,456

)

Collateralized loan obligations

 

 

340,604

 

 

 

336,273

 

 

 

346,426

 

 

 

4,331

 

 

 

(5,822

)

Total securities available for sale

 

$

6,777,810

 

 

$

6,650,812

 

 

$

6,537,316

 

 

$

126,998

 

 

$

240,494

 

Securities held to maturity:

 

 

 

 

 

 

 

 

 

 

U.S. Agencies

 

$

116,286

 

 

$

120,563

 

 

$

123,165

 

 

$

(4,277

)

 

$

(6,879

)

Mortgage-backed

 

 

2,597,430

 

 

 

2,656,096

 

 

 

2,814,467

 

 

 

(58,666

)

 

 

(217,037

)

State and political subdivisions

 

 

2,785,138

 

 

 

2,798,371

 

 

 

2,828,029

 

 

 

(13,233

)

 

 

(42,891

)

Total securities held to maturity

 

$

5,498,854

 

 

$

5,575,030

 

 

$

5,765,661

 

 

$

(76,176

)

 

$

(266,807

)

Trading securities

 

$

19,743

 

 

$

26,381

 

 

$

17,327

 

 

$

(6,638

)

 

$

2,416

 

Other securities

 

 

447,698

 

 

 

448,015

 

 

 

445,380

 

 

 

(317

)

 

 

2,318

 

Total securities

 

$

12,744,105

 

 

$

12,700,238

 

 

$

12,765,684

 

 

$

43,867

 

 

$

(21,579

)

  • Average total securities increased 0.3% on a linked-quarter basis and decreased 0.2% compared to the third quarter of 2023.
  • At September 30, 2024, the unrealized pre-tax net loss on the available-for-sale securities portfolio was $449.4 million, or 6.0% of the $7.5 billion amortized cost balance. At September 30, 2024, the unrealized pre-tax net loss on the securities designated as held to maturity was $563.5 million, or 10.3% of the $5.5 billion amortized cost value.

Summary of average deposits - QTD Average

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

Q2

 

Q3

 

CQ vs.

 

CQ vs.

 

 

2024

 

2024

 

2023

 

LQ

 

PY

Deposits:

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

9,502,106

 

 

$

10,103,035

 

 

$

10,014,686

 

 

$

(600,929

)

 

$

(512,580

)

Interest-bearing demand and savings

 

 

23,779,651

 

 

 

21,914,116

 

 

 

18,142,212

 

 

 

1,865,535

 

 

 

5,637,439

 

Time deposits

 

 

2,010,199

 

 

 

2,323,610

 

 

 

3,173,549

 

 

 

(313,411

)

 

 

(1,163,350

)

Total deposits

 

$

35,291,956

 

 

$

34,340,761

 

 

$

31,330,447

 

 

$

951,195

 

 

$

3,961,509

 

Noninterest bearing deposits as % of total

 

 

26.9

%

 

 

29.4

%

 

 

32.0

%

 

 

 

 

  • Average deposits increased 2.8% on a linked-quarter basis and 12.6% compared to the third quarter of 2023.

Capital

Capital information

 

UMB Financial Corporation

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

 

 

 

 

 

 

 

 

September 30,
2024

 

June 30,
2024

 

September 30,
2023

Total equity

 

$

3,535,489

 

 

$

3,227,347

 

 

$

2,806,659

 

Accumulated other comprehensive loss, net

 

 

(395,856

)

 

 

(605,634

)

 

 

(792,371

)

Book value per common share

 

 

72.45

 

 

 

66.21

 

 

 

57.83

 

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

 

 

66.86

 

 

 

60.58

 

 

 

52.06

 

 

 

 

 

 

 

 

Regulatory capital:

 

 

 

 

 

 

Common equity Tier 1 capital

 

$

3,691,874

 

 

$

3,591,755

 

 

$

3,357,986

 

Tier 1 capital

 

 

3,691,874

 

 

 

3,591,755

 

 

 

3,357,986

 

Total capital

 

 

4,324,890

 

 

 

4,214,712

 

 

 

3,955,093

 

 

 

 

 

 

 

 

Regulatory capital ratios:

 

 

 

 

 

 

Common equity Tier 1 capital ratio

 

 

11.22

%

 

 

11.14

%

 

 

10.77

%

Tier 1 risk-based capital ratio

 

 

11.22

 

 

 

11.14

 

 

 

10.77

 

Total risk-based capital ratio

 

 

13.14

 

 

 

13.08

 

 

 

12.68

 

Tier 1 leverage ratio

 

 

8.58

 

 

 

8.50

 

 

 

8.55

 

(i)

See reconciliation of Non-GAAP measures to their nearest comparable GAAP measures later in this release.
  • At September 30, 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)

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

Q2

 

Q1

 

Q4

 

Q3

 

 

2024

 

2024

 

2024

 

2023

 

2023

Net charge-offs - total loans

 

$

8,454

 

 

$

2,856

 

 

$

3,017

 

 

$

1,352

 

 

$

4,618

 

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

 

 

0.14

%

 

 

0.05

%

 

 

0.05

%

 

 

0.02

%

 

 

0.08

%

Loans over 90 days past due

 

$

7,133

 

 

$

5,644

 

 

$

3,076

 

 

$

3,111

 

 

$

3,044

 

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

 

 

0.03

%

 

 

0.02

%

 

 

0.01

%

 

 

0.01

%

 

 

0.01

%

Nonaccrual and restructured loans

 

$

19,291

 

 

$

13,743

 

 

$

17,756

 

 

$

13,212

 

 

$

17,042

 

Nonaccrual and restructured loans as a % of total loans

 

 

0.08

%

 

 

0.06

%

 

 

0.08

%

 

 

0.06

%

 

 

0.07

%

Provision for credit losses

 

$

18,000

 

 

$

14,050

 

 

$

10,000

 

 

$

 

 

$

4,977

 

  • Provision for credit losses for the third quarter increased $4.0 million from the linked quarter and $13.0 million from the third quarter of 2023. These changes are driven largely by provision tied to the $793.3 million and $2.1 billion increases, respectively, in period-end loans from the prior periods, as well as general portfolio trends in the current period as compared to the prior periods.
  • Net charge-offs for the third quarter totaled $8.5 million, or 0.14% of average loans, compared to $2.9 million, or 0.05% of average loans in the linked quarter, and $4.6 million, or 0.08% of average loans for the third quarter of 2023.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors approved a 2.6% increase in the quarterly cash dividend to $0.40 per share. The cash dividend will be payable on January 2, 2025, to shareholders of record at the close of business on December 10, 2024.

Conference Call

The company will host a conference call to discuss its third quarter 2024 earnings results on Wednesday, October 30, 2024, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 833-470-1428 or (international) 404-975-4839 and requesting to join the UMB Financial call with access code 961896. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 3Q 2024 Conference Call

A replay of the conference call may be heard through November 13, 2024, by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 489413. 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)

 

 

 

 

 

 

September 30,

 

 

2024

 

2023

ASSETS

 

 

 

 

Loans

 

$

24,990,791

 

 

$

22,881,689

 

Allowance for credit losses on loans

 

 

(248,907

)

 

 

(221,462

)

Net loans

 

 

24,741,884

 

 

 

22,660,227

 

Loans held for sale

 

 

5,176

 

 

 

2,824

 

Securities:

 

 

 

 

Available for sale

 

 

7,015,998

 

 

 

6,330,699

 

Held to maturity, net of allowance for credit losses

 

 

5,474,710

 

 

 

5,729,697

 

Trading securities

 

 

35,839

 

 

 

24,509

 

Other securities

 

 

465,477

 

 

 

473,255

 

Total securities

 

 

12,992,024

 

 

 

12,558,160

 

Federal funds sold and resell agreements

 

 

399,234

 

 

 

248,203

 

Interest-bearing due from banks

 

 

6,601,866

 

 

 

3,556,076

 

Cash and due from banks

 

 

778,069

 

 

 

454,705

 

Premises and equipment, net

 

 

222,056

 

 

 

249,037

 

Accrued income

 

 

218,651

 

 

 

208,594

 

Goodwill

 

 

207,385

 

 

 

207,385

 

Other intangibles, net

 

 

65,564

 

 

 

73,060

 

Other assets

 

 

1,264,519

 

 

 

1,246,411

 

Total assets

 

$

47,496,428

 

 

$

41,464,682

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Deposits:

 

 

 

 

Noninterest-bearing demand

 

$

12,840,940

 

 

$

11,254,885

 

Interest-bearing demand and savings

 

 

24,798,869

 

 

 

18,833,614

 

Time deposits under $250,000

 

 

1,245,532

 

 

 

2,834,181

 

Time deposits of $250,000 or more

 

 

817,251

 

 

 

509,072

 

Total deposits

 

 

39,702,592

 

 

 

33,431,752

 

Federal funds purchased and repurchase agreements

 

 

2,023,297

 

 

 

1,757,602

 

Short-term debt

 

 

1,050,000

 

 

 

2,300,000

 

Long-term debt

 

 

384,758

 

 

 

382,768

 

Accrued expenses and taxes

 

 

387,223

 

 

 

319,283

 

Other liabilities

 

 

413,069

 

 

 

466,618

 

Total liabilities

 

 

43,960,939

 

 

 

38,658,023

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

Common stock

 

 

55,057

 

 

 

55,057

 

Capital surplus

 

 

1,138,350

 

 

 

1,128,239

 

Retained earnings

 

 

3,074,617

 

 

 

2,759,415

 

Accumulated other comprehensive loss, net

 

 

(395,856

)

 

 

(792,371

)

Treasury stock

 

 

(336,679

)

 

 

(343,681

)

Total shareholders' equity

 

 

3,535,489

 

 

 

2,806,659

 

Total liabilities and shareholders' equity

 

$

47,496,428

 

 

$

41,464,682

 

Consolidated Statements of Income

UMB Financial Corporation

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

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2024

 

2023

 

2024

 

2023

INTEREST INCOME

 

 

 

 

 

 

 

 

Loans

 

$

416,400

 

$

367,485

 

$

1,202,317

 

$

1,018,920

Securities:

 

 

 

 

 

 

 

 

Taxable interest

 

 

63,466

 

 

 

53,455

 

 

 

186,159

 

 

 

161,091

 

Tax-exempt interest

 

 

24,578

 

 

 

25,704

 

 

 

74,988

 

 

 

76,560

 

Total securities income

 

 

88,044

 

 

 

79,159

 

 

 

261,147

 

 

 

237,651

 

Federal funds and resell agreements

 

 

4,990

 

 

 

4,567

 

 

 

11,726

 

 

 

14,107

 

Interest-bearing due from banks

 

 

47,969

 

 

 

20,551

 

 

 

139,831

 

 

 

70,923

 

Trading securities

 

 

291

 

 

 

214

 

 

 

1,020

 

 

 

502

 

Total interest income

 

 

557,694

 

 

 

471,976

 

 

 

1,616,041

 

 

 

1,342,103

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

Deposits

 

 

262,599

 

 

 

191,919

 

 

 

726,999

 

 

 

490,368

 

Federal funds and repurchase agreements

 

 

27,070

 

 

 

23,076

 

 

 

82,813

 

 

 

71,123

 

Other

 

 

20,649

 

 

 

34,694

 

 

 

74,311

 

 

 

91,018

 

Total interest expense

 

 

310,318

 

 

 

249,689

 

 

 

884,123

 

 

 

652,509

 

Net interest income

 

 

247,376

 

 

 

222,287

 

 

 

731,918

 

 

 

689,594

 

Provision for credit losses

 

 

18,000

 

 

 

4,977

 

 

 

42,050

 

 

 

41,227

 

Net interest income after provision for credit losses

 

 

229,376

 

 

 

217,310

 

 

 

689,868

 

 

 

648,367

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

Trust and securities processing

 

 

74,222

 

 

 

66,668

 

 

 

213,710

 

 

 

190,616

 

Trading and investment banking

 

 

7,118

 

 

 

3,771

 

 

 

18,041

 

 

 

13,879

 

Service charges on deposit accounts

 

 

20,089

 

 

 

21,080

 

 

 

63,107

 

 

 

63,620

 

Insurance fees and commissions

 

 

282

 

 

 

272

 

 

 

832

 

 

 

771

 

Brokerage fees

 

 

15,749

 

 

 

13,400

 

 

 

42,929

 

 

 

40,680

 

Bankcard fees

 

 

22,394

 

 

 

19,296

 

 

 

66,708

 

 

 

56,047

 

Investment securities gains (losses), net

 

 

2,623

 

 

 

271

 

 

 

10,127

 

 

 

(4,153

)

Other

 

 

16,266

 

 

 

8,559

 

 

 

47,452

 

 

 

40,139

 

Total noninterest income

 

 

158,743

 

 

 

133,317

 

 

 

462,906

 

 

 

401,599

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

146,984

 

 

 

133,380

 

 

 

432,851

 

 

 

419,190

 

Occupancy, net

 

 

12,274

 

 

 

12,283

 

 

 

36,267

 

 

 

36,206

 

Equipment

 

 

15,988

 

 

 

17,204

 

 

 

48,094

 

 

 

52,139

 

Supplies and services

 

 

4,967

 

 

 

3,213

 

 

 

11,672

 

 

 

11,283

 

Marketing and business development

 

 

6,817

 

 

 

6,631

 

 

 

19,440

 

 

 

19,090

 

Processing fees

 

 

29,697

 

 

 

26,016

 

 

 

87,334

 

 

 

75,828

 

Legal and consulting

 

 

9,518

 

 

 

7,230

 

 

 

33,978

 

 

 

21,574

 

Bankcard

 

 

12,482

 

 

 

8,852

 

 

 

34,867

 

 

 

24,292

 

Amortization of other intangible assets

 

 

1,917

 

 

 

2,124

 

 

 

5,788

 

 

 

6,539

 

Regulatory fees

 

 

4,686

 

 

 

6,153

 

 

 

26,649

 

 

 

17,827

 

Other

 

 

7,124

 

 

 

8,355

 

 

 

19,385

 

 

 

25,198

 

Total noninterest expense

 

 

252,454

 

 

 

231,441

 

 

 

756,325

 

 

 

709,166

 

Income before income taxes

 

 

135,665

 

 

 

119,186

 

 

 

396,449

 

 

 

340,800

 

Income tax expense

 

 

26,022

 

 

 

22,632

 

 

 

75,203

 

 

 

61,699

 

NET INCOME

 

$

109,643

 

 

$

96,554

 

 

$

321,246

 

 

$

279,101

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

Net income – basic

 

$

2.25

 

 

$

1.99

 

 

$

6.59

 

 

$

5.76

 

Net income – diluted

 

 

2.23

 

 

 

1.98

 

 

 

6.56

 

 

 

5.73

 

Dividends

 

 

0.39

 

 

 

0.38

 

 

 

1.17

 

 

 

1.14

 

Weighted average shares outstanding – basic

 

 

48,775,072

 

 

 

48,525,776

 

 

 

48,727,914

 

 

 

48,492,022

 

Weighted average shares outstanding – diluted

 

 

49,078,497

 

 

 

48,762,696

 

 

 

48,993,581

 

 

 

48,737,065

 

Consolidated Statements of Comprehensive Income

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2024

 

2023

 

2024

 

2023

Net income

 

$

109,643

 

 

$

96,554

 

 

$

321,246

 

 

$

279,101

 

Other comprehensive income (loss), before tax:

 

 

 

 

 

 

 

 

Unrealized gains and losses on debt securities:

 

 

 

 

 

 

 

 

Change in unrealized holding gains and losses, net

 

 

229,285

 

 

 

(151,753

)

 

 

175,005

 

 

 

(145,601

)

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

 

 

 

 

 

(154

)

 

 

(139

)

 

 

279

 

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

 

 

9,618

 

 

 

10,268

 

 

 

27,345

 

 

 

30,563

 

Change in unrealized gains and losses on debt securities

 

 

238,903

 

 

 

(141,639

)

 

 

202,211

 

 

 

(114,759

)

Unrealized gains and losses on derivative hedges:

 

 

 

 

 

 

 

 

Change in unrealized gains and losses on derivative hedges, net

 

 

40,445

 

 

 

3,927

 

 

 

18,012

 

 

 

4,248

 

Less: Reclassification adjustment for net gains included in net income

 

 

(1,666

)

 

 

(2,844

)

 

 

(7,392

)

 

 

(8,065

)

Change in unrealized gains and losses on derivative hedges

 

 

38,779

 

 

 

1,083

 

 

 

10,620

 

 

 

(3,817

)

Other comprehensive income (loss), before tax

 

 

277,682

 

 

 

(140,556

)

 

 

212,831

 

 

 

(118,576

)

Income tax (expense) benefit

 

 

(67,904

)

 

 

34,016

 

 

 

(51,752

)

 

 

28,940

 

Other comprehensive income (loss)

 

 

209,778

 

 

 

(106,540

)

 

 

161,079

 

 

 

(89,636

)

Comprehensive income (loss)

 

$

319,421

 

 

$

(9,986

)

 

$

482,325

 

 

$

189,465

 

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 (loss)

 

 

 

 

 

 

 

 

279,101

 

 

 

(89,636

)

 

 

 

 

 

189,465

 

Dividends ($1.14 per share)

 

 

 

 

 

 

 

 

(55,772

)

 

 

 

 

 

 

 

 

(55,772

)

Purchase of treasury stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,096

)

 

 

(8,096

)

Issuances of equity awards, net of forfeitures

 

 

 

 

 

(10,115

)

 

 

 

 

 

 

 

 

10,834

 

 

 

719

 

Recognition of equity-based compensation

 

 

 

 

 

11,983

 

 

 

 

 

 

 

 

 

 

 

 

11,983

 

Sale of treasury stock

 

 

 

 

 

167

 

 

 

 

 

 

 

 

 

216

 

 

 

383

 

Exercise of stock options

 

 

 

 

 

255

 

 

 

 

 

 

 

 

 

629

 

 

 

884

 

Balance - September 30, 2023

 

$

55,057

 

 

$

1,128,239

 

 

$

2,759,415

 

 

$

(792,371

)

 

$

(343,681

)

 

$

2,806,659

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance - January 1, 2024

 

$

55,057

 

 

$

1,134,363

 

 

$

2,810,824

 

 

$

(556,935

)

 

$

(342,890

)

 

$

3,100,419

 

Total comprehensive income

 

 

 

 

 

 

 

 

321,246

 

 

 

161,079

 

 

 

 

 

 

482,325

 

Dividends ($1.17 per share)

 

 

 

 

 

 

 

 

(57,453

)

 

 

 

 

 

 

 

 

(57,453

)

Purchase of treasury stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,738

)

 

 

(7,738

)

Issuances of equity awards, net of forfeitures

 

 

 

 

 

(11,220

)

 

 

 

 

 

 

 

 

11,923

 

 

 

703

 

Recognition of equity-based compensation

 

 

 

 

 

14,886

 

 

 

 

 

 

 

 

 

 

 

 

14,886

 

Sale of treasury stock

 

 

 

 

 

237

 

 

 

 

 

 

 

 

 

184

 

 

 

421

 

Exercise of stock options

 

 

 

 

 

1,433

 

 

 

 

 

 

 

 

 

1,842

 

 

 

3,275

 

Common stock issuance costs

 

 

 

 

 

(1,349

)

 

 

 

 

 

 

 

 

 

 

 

(1,349

)

Balance - September 30, 2024

 

$

55,057

 

 

$

1,138,350

 

 

$

3,074,617

 

 

$

(395,856

)

 

$

(336,679

)

 

$

3,535,489

 

Average Balances / Yields and Rates

 

UMB Financial Corporation

(tax - equivalent basis)

 

 

 

 

 

 

 

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

2024

 

2023

 

 

Average

 

Average

 

Average

 

Average

 

 

Balance

 

Yield/Rate

 

Balance

 

Yield/Rate

Assets

 

 

 

 

 

 

 

 

Loans, net of unearned interest

 

$

24,387,163

 

 

 

6.79

%

 

$

22,751,467

 

 

 

6.41

%

Securities:

 

 

 

 

 

 

 

 

Taxable

 

 

9,122,386

 

 

 

2.77

 

 

 

8,964,467

 

 

 

2.37

 

Tax-exempt

 

 

3,601,976

 

 

 

3.43

 

 

 

3,783,890

 

 

 

3.37

 

Total securities

 

 

12,724,362

 

 

 

2.96

 

 

 

12,748,357

 

 

 

2.66

 

Federal funds and resell agreements

 

 

328,240

 

 

 

6.05

 

 

 

303,864

 

 

 

5.96

 

Interest bearing due from banks

 

 

3,562,746

 

 

 

5.36

 

 

 

1,548,867

 

 

 

5.26

 

Trading securities

 

 

19,743

 

 

 

6.37

 

 

 

17,327

 

 

 

5.31

 

Total earning assets

 

 

41,022,254

 

 

 

5.47

 

 

 

37,369,882

 

 

 

5.08

 

Allowance for credit losses

 

 

(239,950

)

 

 

 

 

(227,878

)

 

 

Other assets

 

 

2,484,538

 

 

 

 

 

2,381,496

 

 

 

Total assets

 

$

43,266,842

 

 

 

 

$

39,523,500

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

25,789,850

 

 

 

4.05

%

 

$

21,315,761

 

 

 

3.57

%

Federal funds and repurchase agreements

 

 

2,298,240

 

 

 

4.69

 

 

 

2,027,382

 

 

 

4.52

 

Borrowed funds

 

 

1,464,393

 

 

 

5.61

 

 

 

2,605,897

 

 

 

5.28

 

Total interest-bearing liabilities

 

 

29,552,483

 

 

 

4.18

 

 

 

25,949,040

 

 

 

3.82

 

Noninterest-bearing demand deposits

 

 

9,502,106

 

 

 

 

 

10,014,686

 

 

 

Other liabilities

 

 

757,379

 

 

 

 

 

667,920

 

 

 

Shareholders' equity

 

 

3,454,874

 

 

 

 

 

2,891,854

 

 

 

Total liabilities and shareholders' equity

 

$

43,266,842

 

 

 

 

$

39,523,500

 

 

 

Net interest spread

 

 

 

 

1.29

%

 

 

 

 

1.26

%

Net interest margin

 

 

 

 

2.46

 

 

 

 

 

2.43

 

Average Balances / Yields and Rates

 

UMB Financial Corporation

(tax - equivalent basis)

 

 

 

 

 

 

 

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

 

Average

 

Average

 

Average

 

Average

 

 

Balance

 

Yield/Rate

 

Balance

 

Yield/Rate

Assets

 

 

 

 

 

 

 

 

Loans, net of unearned interest

 

$

23,850,976

 

 

 

6.73

%

 

$

22,076,977

 

 

 

6.17

%

Securities:

 

 

 

 

 

 

 

 

Taxable

 

 

9,140,270

 

 

 

2.72

 

 

 

9,179,230

 

 

 

2.35

 

Tax-exempt

 

 

3,657,837

 

 

 

3.44

 

 

 

3,816,122

 

 

 

3.36

 

Total securities

 

 

12,798,107

 

 

 

2.93

 

 

 

12,995,352

 

 

 

2.64

 

Federal funds and resell agreements

 

 

260,520

 

 

 

6.01

 

 

 

343,297

 

 

 

5.49

 

Interest bearing due from banks

 

 

3,451,537

 

 

 

5.41

 

 

 

1,935,029

 

 

 

4.90

 

Trading securities

 

 

21,333

 

 

 

6.88

 

 

 

13,071

 

 

 

5.56

 

Total earning assets

 

 

40,382,473

 

 

 

5.41

 

 

 

37,363,726

 

 

 

4.87

 

Allowance for credit losses

 

 

(230,181

)

 

 

 

 

(213,744

)

 

 

Other assets

 

 

2,433,597

 

 

 

 

 

2,322,171

 

 

 

Total assets

 

$

42,585,889

 

 

 

 

$

39,472,153

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

24,500,489

 

 

 

3.96

%

 

$

20,638,982

 

 

 

3.18

%

Federal funds and repurchase agreements

 

 

2,367,985

 

 

 

4.67

 

 

 

2,273,826

 

 

 

4.18

 

Borrowed funds

 

 

1,796,230

 

 

 

5.53

 

 

 

2,319,652

 

 

 

5.25

 

Total interest-bearing liabilities

 

 

28,664,704

 

 

 

4.12

 

 

 

25,232,460

 

 

 

3.46

 

Noninterest-bearing demand deposits

 

 

9,889,099

 

 

 

 

 

10,816,120

 

 

 

Other liabilities

 

 

764,733

 

 

 

 

 

591,919

 

 

 

Shareholders' equity

 

 

3,267,353

 

 

 

 

 

2,831,654

 

 

 

Total liabilities and shareholders' equity

 

$

42,585,889

 

 

 

 

$

39,472,153

 

 

 

Net interest spread

 

 

 

 

1.29

%

 

 

 

 

1.41

%

Net interest margin

 

 

 

 

2.49

 

 

 

 

 

2.54

 

Business Segment Information

 

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2024

 

 

Commercial
Banking

 

Institutional
Banking

 

Personal
Banking

 

Total

Net interest income

 

$

167,769

 

$

45,341

 

$

34,266

 

 

$

247,376

Provision for credit losses

 

 

15,764

 

 

 

435

 

 

 

1,801

 

 

 

18,000

 

Noninterest income

 

 

30,223

 

 

 

100,687

 

 

 

27,833

 

 

 

158,743

 

Noninterest expense

 

 

85,198

 

 

 

102,565

 

 

 

64,691

 

 

 

252,454

 

Income (loss) before taxes

 

 

97,030

 

 

 

43,028

 

 

 

(4,393

)

 

 

135,665

 

Income tax expense (benefit)

 

 

18,527

 

 

 

8,147

 

 

 

(652

)

 

 

26,022

 

Net income (loss)

 

$

78,503

 

 

$

34,881

 

 

$

(3,741

)

 

$

109,643

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2023

 

 

Commercial
Banking

 

Institutional
Banking

 

Personal
Banking

 

Total

Net interest income

 

$

148,666

 

 

$

43,133

 

 

$

30,488

 

 

$

222,287

 

Provision for credit losses

 

 

3,010

 

 

 

423

 

 

 

1,544

 

 

 

4,977

 

Noninterest income

 

 

23,091

 

 

 

86,521

 

 

 

23,705

 

 

 

133,317

 

Noninterest expense

 

 

81,767

 

 

 

87,502

 

 

 

62,172

 

 

 

231,441

 

Income (loss) before taxes

 

 

86,980

 

 

 

41,729

 

 

 

(9,523

)

 

 

119,186

 

Income tax expense (benefit)

 

 

16,181

 

 

 

7,797

 

 

 

(1,346

)

 

 

22,632

 

Net income (loss)

 

$

70,799

 

 

$

33,932

 

 

$

(8,177

)

 

$

96,554

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2024

 

 

Commercial
Banking

 

Institutional
Banking

 

Personal
Banking

 

Total

Net interest income

 

$

485,503

 

 

$

146,703

 

 

$

99,712

 

 

$

731,918

 

Provision for credit losses

 

 

34,763

 

 

 

1,760

 

 

 

5,527

 

 

 

42,050

 

Noninterest income

 

 

100,908

 

 

 

288,495

 

 

 

73,503

 

 

 

462,906

 

Noninterest expense

 

 

263,397

 

 

 

298,472

 

 

 

194,456

 

 

 

756,325

 

Income (loss) before taxes

 

 

288,251

 

 

 

134,966

 

 

 

(26,768

)

 

 

396,449

 

Income tax expense (benefit)

 

 

53,747

 

 

 

25,016

 

 

 

(3,560

)

 

 

75,203

 

Net income (loss)

 

$

234,504

 

 

$

109,950

 

 

$

(23,208

)

 

$

321,246

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2023

 

 

Commercial
Banking

 

Institutional
Banking

 

Personal
Banking

 

Total

Net interest income

 

$

444,083

 

 

$

148,615

 

 

$

96,896

 

 

$

689,594

 

Provision for credit losses

 

 

35,110

 

 

 

754

 

 

 

5,363

 

 

 

41,227

 

Noninterest income

 

 

71,658

 

 

 

257,573

 

 

 

72,368

 

 

 

401,599

 

Noninterest expense

 

 

251,667

 

 

 

268,464

 

 

 

189,035

 

 

 

709,166

 

Income (loss) before taxes

 

 

228,964

 

 

 

136,970

 

 

 

(25,134

)

 

 

340,800

 

Income tax expense (benefit)

 

 

40,727

 

 

 

24,405

 

 

 

(3,433

)

 

 

61,699

 

Net income (loss)

 

$

188,237

 

 

$

112,565

 

 

$

(21,701

)

 

$

279,101

 

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 September 30, 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
September 30,

 

Nine Months Ended
September 30,

 

 

2024

 

2023

 

2024

 

2023

Net income (GAAP)

 

$

109,643

 

 

$

96,554

 

 

$

321,246

 

 

$

279,101

 

Adjustments:

 

 

 

 

 

 

 

 

Acquisition expense

 

 

2,611

 

 

 

70

 

 

 

12,592

 

 

 

127

 

Severance expense

 

 

48

 

 

 

2,359

 

 

 

324

 

 

 

7,736

 

FDIC special assessment

 

 

(1,730

)

 

 

 

 

 

7,470

 

 

 

 

Tax-impact of adjustments (i)

 

 

(214

)

 

 

(583

)

 

 

(4,689

)

 

 

(1,887

)

Total Non-GAAP adjustments (net of tax)

 

 

715

 

 

 

1,846

 

 

 

15,697

 

 

 

5,976

 

Net operating income (Non-GAAP)

 

$

110,358

 

 

$

98,400

 

 

$

336,943

 

 

$

285,077

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted (GAAP)

 

$

2.23

 

 

$

1.98

 

 

$

6.56

 

 

$

5.73

 

Acquisition expense

 

 

0.06

 

 

 

 

 

 

0.26

 

 

 

 

Severance expense

 

 

 

 

 

0.05

 

 

 

0.01

 

 

 

0.16

 

FDIC special assessment

 

 

(0.04

)

 

 

 

 

 

0.15

 

 

 

 

Tax-impact of adjustments (i)

 

 

 

 

 

(0.01

)

 

 

(0.10

)

 

 

(0.04

)

Operating earnings per share - diluted (Non-GAAP)

 

$

2.25

 

 

$

2.02

 

 

$

6.88

 

 

$

5.85

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.01

%

 

 

0.97

%

 

 

1.01

%

 

 

0.95

%

Return on average equity

 

 

12.63

 

 

 

13.25

 

 

 

13.13

 

 

 

13.18

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

1.01

%

 

 

0.99

%

 

 

1.06

%

 

 

0.97

%

Operating return on average equity

 

 

12.71

 

 

 

13.50

 

 

 

13.77

 

 

 

13.46

 

(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
September 30,

 

Nine Months Ended
September 30,

 

 

2024

 

2023

 

2024

 

2023

Noninterest expense

 

$

252,454

 

 

$

231,441

 

 

$

756,325

 

 

$

709,166

 

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

 

 

 

 

 

 

 

 

Acquisition expense

 

 

2,611

 

 

 

70

 

 

 

12,592

 

 

 

127

 

Severance expense

 

 

48

 

 

 

2,359

 

 

 

324

 

 

 

7,736

 

FDIC special assessment

 

 

(1,730

)

 

 

 

 

 

7,470

 

 

 

 

Total Non-GAAP adjustments (pre-tax)

 

 

929

 

 

 

2,429

 

 

 

20,386

 

 

 

7,863

 

Operating noninterest expense (Non-GAAP)

 

$

251,525

 

 

$

229,012

 

 

$

735,939

 

 

$

701,303

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

$

252,454

 

 

$

231,441

 

 

$

756,325

 

 

$

709,166

 

Less: Amortization of other intangibles

 

 

1,917

 

 

 

2,124

 

 

 

5,788

 

 

 

6,539

 

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

 

$

250,537

 

 

$

229,317

 

 

$

750,537

 

 

$

702,627

 

 

 

 

 

 

 

 

 

 

Operating noninterest expense

 

$

251,525

 

 

$

229,012

 

 

$

735,939

 

 

$

701,303

 

Less: Amortization of other intangibles

 

 

1,917

 

 

 

2,124

 

 

 

5,788

 

 

 

6,539

 

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

 

$

249,608

 

 

$

226,888

 

 

$

730,151

 

 

$

694,764

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

247,376

 

 

$

222,287

 

 

$

731,918

 

 

$

689,594

 

Noninterest income

 

 

158,743

 

 

 

133,317

 

 

 

462,906

 

 

 

401,599

 

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

 

 

 

 

 

154

 

 

 

139

 

 

 

152

 

Total Non-GAAP Revenue (denominator A)

 

$

406,119

 

 

$

355,450

 

 

$

1,194,685

 

 

$

1,091,041

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (numerator A/denominator A)

 

 

61.69

%

 

 

64.51

%

 

 

62.82

%

 

 

64.40

%

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

 

 

61.46

 

 

 

63.83

 

 

 

61.12

 

 

 

63.68

 

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

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2024

 

2023

 

2024

 

2023

Net interest income (GAAP)

 

$

247,376

 

 

$

222,287

 

$

731,918

 

$

689,594

Noninterest income (GAAP)

 

 

158,743

 

 

 

133,317

 

 

 

462,906

 

 

 

401,599

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

 

252,454

 

 

 

231,441

 

 

 

756,325

 

 

 

709,166

 

Adjustments to arrive at operating noninterest expense:

 

 

 

 

 

 

 

 

Acquisition expense

 

 

2,611

 

 

 

70

 

 

 

12,592

 

 

 

127

 

Severance expense

 

 

48

 

 

 

2,359

 

 

 

324

 

 

 

7,736

 

FDIC special assessment

 

 

(1,730

)

 

 

 

 

 

7,470

 

 

 

 

Total Non-GAAP adjustments

 

 

929

 

 

 

2,429

 

 

 

20,386

 

 

 

7,863

 

Operating noninterest expense (Non-GAAP)

 

 

251,525

 

 

 

229,012

 

 

 

735,939

 

 

 

701,303

 

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

 

$

154,594

 

 

$

126,592

 

 

$

458,885

 

 

$

389,890

 

 

 

 

 

 

 

 

 

 

Net interest income earnings per share - diluted (GAAP)

 

$

5.04

 

 

$

4.56

 

 

$

14.94

 

 

$

14.15

 

Noninterest income (GAAP)

 

 

3.24

 

 

 

2.73

 

 

 

9.45

 

 

 

8.24

 

Noninterest expense (GAAP)

 

 

5.15

 

 

 

4.74

 

 

 

15.44

 

 

 

14.55

 

Acquisition expense

 

 

0.06

 

 

 

 

 

 

0.26

 

 

 

 

Severance expense

 

 

 

 

 

0.05

 

 

 

0.01

 

 

 

0.16

 

FDIC special assessment

 

 

(0.04

)

 

 

 

 

 

0.15

 

 

 

 

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

 

$

3.15

 

 

$

2.60

 

 

$

9.37

 

 

$

8.00

 

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

 

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2024

 

2023

 

2024

 

2023

Net interest income (GAAP)

 

$

247,376

 

 

$

222,287

 

$

731,918

 

$

689,594

Adjustments to arrive at net interest income - FTE:

 

 

 

 

 

 

 

 

Tax equivalent interest

 

 

6,601

 

 

 

6,559

 

 

 

19,524

 

 

 

19,689

 

Net interest income - FTE (Non-GAAP)

 

 

253,977

 

 

 

228,846

 

 

 

751,442

 

 

 

709,283

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

 

 

158,743

 

 

 

133,317

 

 

 

462,906

 

 

 

401,599

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

 

252,454

 

 

 

231,441

 

 

 

756,325

 

 

 

709,166

 

Adjustments to arrive at operating noninterest expense:

 

 

 

 

 

 

 

 

Acquisition expense

 

 

2,611

 

 

 

70

 

 

 

12,592

 

 

 

127

 

Severance expense

 

 

48

 

 

 

2,359

 

 

 

324

 

 

 

7,736

 

FDIC special assessment

 

 

(1,730

)

 

 

 

 

 

7,470

 

 

 

 

Total Non-GAAP adjustments

 

 

929

 

 

 

2,429

 

 

 

20,386

 

 

 

7,863

 

Operating noninterest expense (Non-GAAP)

 

 

251,525

 

 

 

229,012

 

 

 

735,939

 

 

 

701,303

 

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

 

$

161,195

 

 

$

133,151

 

 

$

478,409

 

 

$

409,579

 

 

 

 

 

 

 

 

 

 

Net interest income earnings per share - diluted (GAAP)

 

$

5.04

 

 

$

4.56

 

 

$

14.94

 

 

$

14.15

 

Tax equivalent interest

 

 

0.13

 

 

 

0.13

 

 

 

0.39

 

 

 

0.40

 

Net interest income - FTE (Non-GAAP)

 

 

5.17

 

 

 

4.69

 

 

 

15.33

 

 

 

14.55

 

Noninterest income (GAAP)

 

 

3.24

 

 

 

2.73

 

 

 

9.45

 

 

 

8.24

 

Noninterest expense (GAAP)

 

 

5.15

 

 

 

4.74

 

 

 

15.44

 

 

 

14.55

 

Acquisition expense

 

 

0.06

 

 

 

 

 

 

0.26

 

 

 

 

Severance expense

 

 

 

 

 

0.05

 

 

 

0.01

 

 

 

0.16

 

FDIC special assessment

 

 

(0.04

)

 

 

 

 

 

0.15

 

 

 

 

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

 

$

3.28

 

 

$

2.73

 

 

$

9.76

 

 

$

8.40

 

Tangible book value non-GAAP reconciliations:

UMB Financial Corporation

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

 

 

 

 

 

 

As of September 30,

 

 

2024

 

2023

Total shareholders' equity (GAAP)

 

$

3,535,489

 

$

2,806,659

Less: Intangible assets

 

 

 

 

Goodwill

 

 

207,385

 

 

 

207,385

 

Other intangibles, net

 

 

65,564

 

 

 

73,060

 

Total intangibles, net

 

 

272,949

 

 

 

280,445

 

Total tangible shareholders' equity (Non-GAAP)

 

$

3,262,540

 

 

$

2,526,214

 

 

 

 

 

 

Total shares outstanding

 

 

48,797,672

 

 

 

48,529,097

 

 

 

 

 

 

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

 

$

72.45

 

 

$

57.83

 

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

 

 

66.86

 

 

 

52.06

 

 

Contacts

Media Contact: Stephanie Hague: 816.729.1027
Investor Relations Contact: Kay Gregory: 816.860.7106

Contacts

Media Contact: Stephanie Hague: 816.729.1027
Investor Relations Contact: Kay Gregory: 816.860.7106