UMB Financial Corporation Reports Second Quarter 2020 Net Income of $60.5 Million
Second Quarter 2020 Highlights
- GAAP net income of $60.5 million, or $1.26 per diluted share; operating net income of $63.8 million, or $1.33 per diluted share.
- Pre-tax, pre-provision (PTPP) income of $90.2 million, an increase of 7.6% from the linked quarter.
- Total revenue increased 9.7% to $298.7 million, compared to the linked quarter.
- Average loans, excluding Paycheck Protection Program (PPP) balances, increased 8.2% on a linked-quarter annualized basis.
- Loans recorded under the PPP totaled $1.5 billion as of June 30, 2020.
- Average deposits grew $2.0 billion to $22.8 billion compared to the first quarter of 2020.
- GAAP book value per share of $57.84, a 14.5% increase, and tangible book value per share of $53.57, a 15.1% increase compared to a year ago.
- Credit quality remained strong, with net charge-offs of just 0.15% of average loans, consistent with the company’s historical performance.
KANSAS CITY, Mo.--(BUSINESS WIRE)-- UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the second quarter of 2020 of $60.5 million, or $1.26 per diluted share, compared to a net loss of $3.4 million in the first quarter of 2020 (linked quarter) and net income of $57.0 million, or $1.16 per diluted share, in the second quarter of 2019.
Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $63.8 million, or $1.33 per diluted share, for the second quarter of 2020, compared to a net operating loss of $1.9 million for the linked quarter and net operating income of $57.2 million, or $1.17 per diluted share, for the second quarter of 2019. Pre-tax, pre-provision income (PTPP), a non-GAAP measure reconciled to net income before taxes, the nearest comparable GAAP measure, later in this release, was $90.2 million, or $1.88 per diluted share, for the second quarter of 2020, compared to $83.7 million, or $1.72 per diluted share, for the linked quarter, and $78.4 million, or $1.60 per diluted share, for the second quarter of 2019. These PTPP results represent increases of 7.6% on a linked-quarter basis and 15.0% compared to the second quarter of 2019.
Summary of quarterly financial results |
|
UMB Financial Corporation |
|
|||||||||
(unaudited, dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 |
|
|
Q1 |
|
|
Q2 |
|
|||
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|||
Net income (loss) |
|
$ |
60,529 |
|
|
$ |
(3,439 |
) |
|
$ |
56,959 |
|
Earnings (losses) per share (diluted) |
|
|
1.26 |
|
|
|
(0.07 |
) |
|
|
1.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision income |
|
|
90,152 |
|
|
|
83,746 |
|
|
|
78,425 |
|
Pre-tax, pre-provision earnings per share (diluted) |
|
|
1.88 |
|
|
|
1.72 |
|
|
|
1.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income (loss) |
|
|
63,835 |
|
|
|
(1,881 |
) |
|
|
57,245 |
|
Operating earnings (losses) per share (diluted) |
|
|
1.33 |
|
|
|
(0.04 |
) |
|
|
1.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.87 |
% |
|
|
(0.05 |
)% |
|
|
0.98 |
% |
Return on average equity |
|
|
8.95 |
|
|
|
(0.51 |
) |
|
|
9.46 |
|
Efficiency ratio |
|
|
70.20 |
|
|
|
68.93 |
|
|
|
70.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
Operating return on average assets |
|
|
0.91 |
% |
|
|
(0.03 |
)% |
|
|
0.99 |
% |
Operating return on average equity |
|
|
9.44 |
|
|
|
(0.28 |
) |
|
|
9.51 |
|
Operating efficiency ratio |
|
|
68.76 |
|
|
|
68.19 |
|
|
|
70.19 |
|
Summary of year-to-date financial results |
|
UMB Financial Corporation |
|
|||||
(unaudited, dollars in thousands, except per share data) |
|
June |
|
|
June |
|
||
|
|
YTD |
|
|
YTD |
|
||
|
|
2020 |
|
|
2019 |
|
||
Net income |
|
$ |
57,090 |
|
|
$ |
114,703 |
|
Earnings per share (diluted) |
|
|
1.18 |
|
|
|
2.34 |
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision income |
|
|
173,898 |
|
|
|
159,049 |
|
Pre-tax, pre-provision earnings per share (diluted) |
|
|
3.59 |
|
|
|
3.24 |
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
61,954 |
|
|
|
115,453 |
|
Operating earnings per share (diluted) |
|
|
1.28 |
|
|
|
2.36 |
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.42 |
% |
|
|
1.00 |
% |
Return on average equity |
|
|
4.22 |
|
|
|
9.95 |
|
Efficiency ratio |
|
|
69.59 |
|
|
|
70.16 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
|
|
|
|
|
|
|
Operating return on average assets |
|
|
0.46 |
% |
|
|
1.01 |
% |
Operating return on average equity |
|
|
4.58 |
|
|
|
10.01 |
|
Operating efficiency ratio |
|
|
68.49 |
|
|
|
69.98 |
|
“As the country continues to navigate its way through an uncertain economic environment, our second quarter results highlight the strength of our fortress balance sheet and the quality of our underwriting practices, as evidenced by just 15 basis points of net charge-offs. Additionally, we added $1.5 billion in loans under the Paycheck Protection Program (PPP) during the quarter,” said Mariner Kemper, chairman, president and chief executive officer. “Despite the unprecedented times, average loans, excluding PPP balances, increased 8.2% on a linked-quarter annualized basis. Finally, we launched our corporate citizenship report outlining some of our 2019 environmental, social and governance efforts, which has been a collaborative effort of listening to, and engaging with, our associates, customers, and communities.”
Summary of revenue |
|
UMB Financial Corporation |
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(unaudited, dollars in thousands) |
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Q2 |
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|
Q1 |
|
|
Q2 |
|
|
CQ vs. |
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|
CQ vs. |
|
|||||
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
LQ |
|
|
PY |
|
|||||
Net interest income |
|
$ |
178,229 |
|
|
$ |
173,941 |
|
|
$ |
166,414 |
|
|
$ |
4,288 |
|
|
$ |
11,815 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and securities processing |
|
|
46,321 |
|
|
|
47,000 |
|
|
|
42,903 |
|
|
|
(679 |
) |
|
|
3,418 |
|
Trading and investment banking |
|
|
12,851 |
|
|
|
1,723 |
|
|
|
5,453 |
|
|
|
11,128 |
|
|
|
7,398 |
|
Service charges on deposit accounts |
|
|
19,074 |
|
|
|
25,081 |
|
|
|
20,747 |
|
|
|
(6,007 |
) |
|
|
(1,673 |
) |
Insurance fees and commissions |
|
|
533 |
|
|
|
259 |
|
|
|
465 |
|
|
|
274 |
|
|
|
68 |
|
Brokerage fees |
|
|
5,753 |
|
|
|
9,860 |
|
|
|
7,077 |
|
|
|
(4,107 |
) |
|
|
(1,324 |
) |
Bankcard fees |
|
|
12,916 |
|
|
|
16,545 |
|
|
|
16,439 |
|
|
|
(3,629 |
) |
|
|
(3,523 |
) |
Gains (losses) on sales of securities available for sale, net |
|
|
4,006 |
|
|
|
1,227 |
|
|
|
(1,403 |
) |
|
|
2,779 |
|
|
|
5,409 |
|
Other |
|
|
19,002 |
|
|
|
(3,271 |
) |
|
|
13,717 |
|
|
|
22,273 |
|
|
|
5,285 |
|
Total noninterest income |
|
$ |
120,456 |
|
|
$ |
98,424 |
|
|
$ |
105,398 |
|
|
$ |
22,032 |
|
|
$ |
15,058 |
|
Total revenue |
|
$ |
298,685 |
|
|
$ |
272,365 |
|
|
$ |
271,812 |
|
|
$ |
26,320 |
|
|
$ |
26,873 |
|
Net interest margin |
|
|
2.79 |
% |
|
|
2.97 |
% |
|
|
3.19 |
% |
|
|
|
|
|
|
|
|
Total noninterest income as a % of total revenue |
|
|
40.33 |
|
|
|
36.14 |
|
|
|
38.78 |
|
|
|
|
|
|
|
|
|
Net interest income
- Net interest income totaled $178.2 million, an increase of $4.3 million, or 2.5%, from the linked quarter, driven by a $1.5 billion, or 10.9%, increase in average loans, and an 8.7% increase in average earning assets. The increase in loan balances was primarily driven by the company’s participation in the PPP, which contributed $1.5 billion in balances. While new loan production during the quarter remained strong, this growth was negated by normalization of line utilization activity which spiked in the first quarter following the initial impact of the COVID-19 pandemic.
- Net interest margin for the second quarter was 2.79%, a decrease of 18 basis points from the linked quarter, in large part due to lower short-term interest rates and a build-up of excess liquidity. Earning asset yields declined 57 basis points from the linked quarter, driven by declining yields in the loan portfolio due to recent reductions in short-term interest rates and an unfavorable earning asset mix shift driven by excess liquidity and, to a lesser extent, the impact of lower-yielding PPP loans. Federal funds and resell agreements, interest-bearing due from banks, and trading securities averaged $2.3 billion, an 11.4% increase from $2.1 billion in the linked quarter. The cost of interest-bearing liabilities decreased 58 basis points to 0.34%, driven by a 53-basis-point decline in the cost of interest-bearing deposits and lower borrowing costs. Net interest spread increased one basis point to 2.67 from the linked quarter and was five basis points lower than the second quarter of 2019.
- On a year-over-year basis, net interest income increased $11.8 million, or 7.1%, driven by a $2.5 billion, or 19.6%, increase in average loans, and a $4.9 billion, or 22.7%, increase in earning assets.
- Average deposits increased 9.4% on a linked-quarter basis and 21.3% compared to the second quarter of 2019. Average noninterest-bearing demand deposit balances increased 18.0% on a linked-quarter basis and 26.1% compared to the second quarter of 2019.
Noninterest income
-
Second quarter 2020 noninterest income increased $22.0 million, or 22.4%, on a linked-quarter basis, largely due to:
- An increase of $24.8 million in company-owned life insurance income, reflecting the impact of higher market valuations of the underlying investments, recorded in other income. The increase in company-owned life insurance income is offset by a proportionate increase in deferred compensation expense as noted below.
- An increase of $11.1 million in trading and investment banking, primarily driven by higher trading volumes, as well as an increase of $4.9 million in market valuation of investments in the company’s trading portfolio.
-
These increases were partially offset by the following decreases:
- A decrease of $5.5 million in healthcare income, recorded in service charges on deposits, related to non-recurring customer transfer and conversion fees recorded in the first quarter.
- A decrease of $4.1 million in brokerage fees, primarily driven by decreased 12b-1 income.
- A decrease of $3.6 million in bankcard fees, primarily due to decreased interchange income.
-
Compared to the prior year, noninterest income in the second quarter of 2020 increased $15.1 million, or 14.3%, primarily driven by:
- An increase of $8.9 million in company-owned life insurance, recorded in other income. The increase in company-owned life insurance income is offset by a proportionate increase in deferred compensation expense as noted below.
- An increase of $7.4 million in trading and investment banking, primarily driven by higher trading volumes, as well as an increase of $1.1 million in market valuation of investments in the company’s trading portfolio.
- An increase of $5.4 million in gains on sales of available-for-sale securities.
-
These increases were partially offset by the following decreases:
- A decrease of $3.5 million in bankcard fees, primarily due to decreased interchange income.
- A decrease of $1.3 million in brokerage fees, primarily due to decreased 12b-1 income.
- A decrease of $1.0 million in equity earnings on alternative investments, recorded in other income.
Noninterest expense
Summary of noninterest expense |
|
UMB Financial Corporation |
|
|||||||||||||||||
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 |
|
|
Q1 |
|
|
Q2 |
|
|
CQ vs. |
|
|
CQ vs. |
|
|||||
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
LQ |
|
|
PY |
|
|||||
Salaries and employee benefits |
|
$ |
130,938 |
|
|
$ |
111,060 |
|
|
$ |
114,454 |
|
|
$ |
19,878 |
|
|
$ |
16,484 |
|
Occupancy, net |
|
|
11,411 |
|
|
|
12,180 |
|
|
|
11,539 |
|
|
|
(769 |
) |
|
|
(128 |
) |
Equipment |
|
|
21,502 |
|
|
|
21,241 |
|
|
|
18,824 |
|
|
|
261 |
|
|
|
2,678 |
|
Supplies and services |
|
|
3,785 |
|
|
|
4,185 |
|
|
|
4,285 |
|
|
|
(400 |
) |
|
|
(500 |
) |
Marketing and business development |
|
|
3,284 |
|
|
|
4,640 |
|
|
|
7,304 |
|
|
|
(1,356 |
) |
|
|
(4,020 |
) |
Processing fees |
|
|
13,603 |
|
|
|
13,390 |
|
|
|
13,096 |
|
|
|
213 |
|
|
|
507 |
|
Legal and consulting |
|
|
6,220 |
|
|
|
6,110 |
|
|
|
7,496 |
|
|
|
110 |
|
|
|
(1,276 |
) |
Bankcard |
|
|
4,549 |
|
|
|
4,860 |
|
|
|
4,701 |
|
|
|
(311 |
) |
|
|
(152 |
) |
Amortization of other intangible assets |
|
|
1,658 |
|
|
|
1,734 |
|
|
|
1,251 |
|
|
|
(76 |
) |
|
|
407 |
|
Regulatory fees |
|
|
3,211 |
|
|
|
2,366 |
|
|
|
2,910 |
|
|
|
845 |
|
|
|
301 |
|
Other |
|
|
8,372 |
|
|
|
6,853 |
|
|
|
7,527 |
|
|
|
1,519 |
|
|
|
845 |
|
Total noninterest expense |
|
$ |
208,533 |
|
|
$ |
188,619 |
|
|
$ |
193,387 |
|
|
$ |
19,914 |
|
|
$ |
15,146 |
|
- GAAP noninterest expense for the second quarter of 2020 was $208.5 million, an increase of $19.9 million, or 10.6%, from the linked quarter and an increase of $15.1 million, or 7.8%, from the second quarter of 2019. Expenses for the quarter included $4.0 million in non-recurring compensation and other costs tied to the company’s COVID-19 response.
-
The linked quarter increase in noninterest expense was driven by:
- An increase of $19.9 million in salaries and employee benefits, largely driven by a $24.6 million increase in deferred compensation expense, which was offset by the increase in company-owned life insurance income noted above. This increase was partially offset by a decrease of $5.5 million in payroll taxes and profit sharing and 401(k) expense.
- An increase of $1.5 million in other expense driven by operational losses in the second quarter.
- These increases were partially offset by a decrease of $1.4 million in marketing and business development expense due to a decline in travel and entertainment expenses in the second quarter due to the pandemic.
-
The year-over-year increase in noninterest expense was driven by:
- A $16.5 million increase in salaries and employee benefits, primarily due to increases of $9.8 million in deferred compensation expense, $3.5 million in bonus and commission expense, and $3.2 million in salary and wage expense, which included compensation expense tied to the company’s COVID-19 response. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above.
- An increase of $2.7 million in equipment expense, due to investments in digital channel and integrated platform solutions to support business growth and the ongoing modernization of the company’s core systems.
- These increases were partially offset by a decrease of $4.0 million in marketing and business development expense primarily due to a decline in travel and entertainment expense due to the pandemic.
Income taxes
- The company’s effective tax rate was 11.3% for the six months ended June 30, 2020, compared to 15.5% for the same period in 2019. The decrease in the effective rate for 2020 is primarily attributable to a larger portion of income being earned from tax-exempt municipal securities.
Balance sheet
- Average total assets for the second quarter of 2020 were $28.1 billion compared to $26.0 billion for the linked quarter and $23.3 billion for the same period in 2019.
Summary of average loans and leases - QTD Average |
UMB Financial Corporation |
|
||||||||||||||||||
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 |
|
|
Q1 |
|
|
Q2 |
|
|
CQ vs. |
|
|
CQ vs. |
|
|||||
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
LQ |
|
|
PY |
|
|||||
Commercial and industrial |
|
$ |
6,970,223 |
|
|
$ |
5,786,545 |
|
|
$ |
5,278,626 |
|
|
$ |
1,183,678 |
|
|
$ |
1,691,597 |
|
Specialty lending |
|
|
471,571 |
|
|
|
510,316 |
|
|
|
682,306 |
|
|
|
(38,745 |
) |
|
|
(210,735 |
) |
Commercial real estate |
|
|
5,435,428 |
|
|
|
5,181,036 |
|
|
|
4,696,665 |
|
|
|
254,392 |
|
|
|
738,763 |
|
Consumer real estate |
|
|
1,528,501 |
|
|
|
1,414,025 |
|
|
|
1,241,078 |
|
|
|
114,476 |
|
|
|
287,423 |
|
Consumer |
|
|
146,120 |
|
|
|
141,972 |
|
|
|
132,662 |
|
|
|
4,148 |
|
|
|
13,458 |
|
Credit cards |
|
|
353,424 |
|
|
|
418,485 |
|
|
|
427,176 |
|
|
|
(65,061 |
) |
|
|
(73,752 |
) |
Leases and other |
|
|
193,099 |
|
|
|
164,187 |
|
|
|
162,468 |
|
|
|
28,912 |
|
|
|
30,631 |
|
Total loans |
|
$ |
15,098,366 |
|
|
$ |
13,616,566 |
|
|
$ |
12,620,981 |
|
|
$ |
1,481,800 |
|
|
$ |
2,477,385 |
|
- Average loans for the second quarter of 2020 increased 10.9% on a linked-quarter basis and 19.6% compared to the second quarter of 2019, primarily due to the company’s participation in PPP, which had an average balance of $1.2 billion in the second quarter.
Summary of average securities - QTD Average |
|
UMB Financial Corporation |
|
|||||||||||||||||
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 |
|
|
Q1 |
|
|
Q2 |
|
|
CQ vs. |
|
|
CQ vs. |
|
|||||
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
LQ |
|
|
PY |
|
|||||
Securities available for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury |
|
$ |
31,150 |
|
|
$ |
49,638 |
|
|
$ |
256,949 |
|
|
$ |
(18,488 |
) |
|
$ |
(225,799 |
) |
U.S. Agencies |
|
|
403,290 |
|
|
|
94,342 |
|
|
|
91,822 |
|
|
|
308,948 |
|
|
|
311,468 |
|
Mortgage-backed |
|
|
4,284,374 |
|
|
|
4,133,118 |
|
|
|
3,926,164 |
|
|
|
151,256 |
|
|
|
358,210 |
|
State and political subdivisions |
|
|
3,108,661 |
|
|
|
3,058,594 |
|
|
|
2,659,397 |
|
|
|
50,067 |
|
|
|
449,264 |
|
Corporates |
|
|
98,089 |
|
|
|
188,257 |
|
|
|
84,910 |
|
|
|
(90,168 |
) |
|
|
13,179 |
|
Commercial Paper |
|
|
2,040 |
|
|
|
— |
|
|
|
— |
|
|
|
2,040 |
|
|
|
2,040 |
|
Total securities available for sale |
|
$ |
7,927,604 |
|
|
$ |
7,523,949 |
|
|
$ |
7,019,242 |
|
|
$ |
403,655 |
|
|
$ |
908,362 |
|
Securities held to maturity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and political subdivisions |
|
$ |
1,100,843 |
|
|
$ |
1,108,716 |
|
|
$ |
1,128,526 |
|
|
$ |
(7,873 |
) |
|
$ |
(27,683 |
) |
Trading securities |
|
|
37,816 |
|
|
|
48,102 |
|
|
|
61,565 |
|
|
|
(10,286 |
) |
|
|
(23,749 |
) |
Other securities |
|
|
148,918 |
|
|
|
124,795 |
|
|
|
80,097 |
|
|
|
24,123 |
|
|
|
68,821 |
|
Total securities |
|
$ |
9,215,181 |
|
|
$ |
8,805,562 |
|
|
$ |
8,289,430 |
|
|
$ |
409,619 |
|
|
$ |
925,751 |
|
- Average securities available for sale increased 5.4% on a linked-quarter basis and 12.9% compared to the second quarter of 2019.
Summary of average deposits - QTD Average |
UMB Financial Corporation |
|
||||||||||||||||||
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 |
|
|
Q1 |
|
|
Q2 |
|
|
CQ vs. |
|
|
CQ vs. |
|
|||||
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
LQ |
|
|
PY |
|
|||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
7,662,836 |
|
|
$ |
6,495,611 |
|
|
$ |
6,078,520 |
|
|
$ |
1,167,225 |
|
|
$ |
1,584,316 |
|
Interest-bearing demand and savings |
|
|
14,160,722 |
|
|
|
13,232,370 |
|
|
|
11,740,634 |
|
|
|
928,352 |
|
|
|
2,420,088 |
|
Time deposits |
|
|
957,007 |
|
|
|
1,097,780 |
|
|
|
966,719 |
|
|
|
(140,773 |
) |
|
|
(9,712 |
) |
Total deposits |
|
$ |
22,780,565 |
|
|
$ |
20,825,761 |
|
|
$ |
18,785,873 |
|
|
$ |
1,954,804 |
|
|
$ |
3,994,692 |
|
Noninterest bearing deposits as % of total |
|
|
33.64 |
% |
|
|
31.19 |
% |
|
|
32.36 |
% |
|
|
|
|
|
|
|
|
- Average deposits increased 9.4% on a linked-quarter basis and 21.3% compared to the second quarter of 2019.
- Average noninterest-bearing demand deposits increased 18.0% on a linked-quarter basis to $7.7 billion.
Capital
Capital information |
|
UMB Financial Corporation |
|
|||||||||
(unaudited, dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
June 30, 2019 |
|
|||
Total equity |
|
$ |
2,777,395 |
|
|
$ |
2,663,441 |
|
|
$ |
2,477,790 |
|
Book value per common share |
|
|
57.84 |
|
|
|
55.33 |
|
|
|
50.50 |
|
Tangible book value per common share |
|
|
53.57 |
|
|
|
51.04 |
|
|
|
46.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital: |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 capital |
|
$ |
2,335,625 |
|
|
$ |
2,279,039 |
|
|
$ |
2,236,930 |
|
Tier 1 capital |
|
|
2,335,625 |
|
|
|
2,279,039 |
|
|
|
2,236,930 |
|
Total capital |
|
|
2,580,849 |
|
|
|
2,514,445 |
|
|
|
2,411,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 capital ratio |
|
|
11.92 |
% |
|
|
11.90 |
% |
|
|
12.65 |
% |
Tier 1 risk-based capital ratio |
|
|
11.92 |
|
|
|
11.90 |
|
|
|
12.65 |
|
Total risk-based capital ratio |
|
|
13.17 |
|
|
|
13.12 |
|
|
|
13.63 |
|
Tier 1 leverage ratio |
|
|
8.35 |
|
|
|
8.81 |
|
|
|
9.69 |
|
- At June 30, 2020, the regulatory capital ratios presented in the foregoing table exceeded all “well-capitalized” regulatory thresholds.
- The company did not execute any open market share repurchases during the second quarter, outside of the completion of the $30 million accelerated share repurchase program that was entered into in early March.
Asset Quality
Credit quality |
|
UMB Financial Corporation |
|
|||||||||||||||||
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 |
|
|
Q1 |
|
|
Q4 |
|
|
Q3 |
|
|
Q2 |
|
|||||
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|||||
Net charge-offs - Total loans |
|
$ |
5,541 |
|
|
$ |
7,672 |
|
|
$ |
7,618 |
|
|
$ |
2,186 |
|
|
$ |
12,569 |
|
Net loan charge-offs as a % of total average loans |
|
|
0.15 |
% |
|
|
0.23 |
% |
|
|
0.23 |
% |
|
|
0.07 |
% |
|
|
0.40 |
% |
Loans over 90 days past due |
|
$ |
4,588 |
|
|
$ |
2,211 |
|
|
$ |
2,069 |
|
|
$ |
2,466 |
|
|
$ |
1,825 |
|
Loans over 90 days past due as a % of total loans |
|
|
0.03 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.01 |
% |
Nonaccrual and restructured loans |
|
$ |
82,245 |
|
|
$ |
97,029 |
|
|
$ |
56,347 |
|
|
$ |
71,838 |
|
|
$ |
53,395 |
|
Nonaccrual and restructured loans as a % of total loans |
|
|
0.54 |
% |
|
|
0.70 |
% |
|
|
0.42 |
% |
|
|
0.55 |
% |
|
|
0.41 |
% |
Provision for credit losses |
|
$ |
21,500 |
|
|
$ |
88,000 |
|
|
$ |
2,000 |
|
|
$ |
7,500 |
|
|
$ |
11,000 |
|
- Provision for credit losses for the second quarter totaled $21.5 million, a decrease of $66.5 million from the linked quarter, and an increase of $10.5 million from the second quarter of 2019.
- Net charge-offs totaled $5.5 million, or 0.15%, of average loans, compared to $7.7 million, or 0.23%, of average loans in the linked quarter.
- The reserve build during the second quarter reflects the continued impact of the adoption of the current expected credit losses (CECL) accounting standard on January 1, 2020, and changes to key macroeconomic variables due to the COVID-19 pandemic.
Dividend Declaration
At the company’s quarterly board meeting, the Board of Directors declared a $0.31 per share quarterly cash dividend, payable on October 1, 2020, to shareholders of record at the close of business on September 10, 2020.
Conference Call
The company plans to host a conference call to discuss its second quarter 2020 earnings results on Wednesday, July 29, 2020, at 8:30 a.m. (CT).
Interested parties may access the call by dialing (toll-free) 877-267-8760 or (international) 412-542-4148 and requesting to join the UMB Financial call. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:
UMB Financial 2Q 2020 Conference Call
A replay of the conference call may be heard through August 12, 2020 by calling (toll-free) 877-344-7529 or (international) 412-317-0088. The replay access code required for playback is 10145903. 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 (loss), operating earnings (losses) per share - diluted (operating EPS), operating return on average equity (operating ROE), operating return on average assets (operating ROA), operating noninterest expense, operating efficiency ratio, pre-tax, pre-provision income, pre-tax, pre-provision earnings per share – diluted (PTPP EPS), tangible shareholders’ equity, and tangible book value per share, all of which are non-GAAP financial measures. This information supplements the results that are reported according to generally accepted accounting principles in the United States (GAAP) and should not be viewed in isolation from, or as a substitute for, GAAP results. The differences between the non-GAAP financial measures – net operating income, operating EPS, operating ROE, operating ROA, operating noninterest expense, operating efficiency ratio, PTPP, PTPP EPS, tangible shareholders’ equity, and tangible book value per share – and the nearest comparable GAAP financial measures are reconciled later in this release. The company believes that these non-GAAP financial measures and the reconciliations may be useful to investors because they adjust for acquisition-, severance-, and COVID-19 related items that management does not believe reflect the company’s fundamental operating performance. COVID-19 related expense includes hazard pay for branch associates, computer hardware expense to support associates working remotely, and additional equipment, cleaning, and janitorial supplies to protect the well-being of our associates and customers while on the company’s premises.
Net operating income for the relevant period is defined as GAAP net income, adjusted to reflect the impact of excluding expenses related to acquisitions, severance expense, COVID-19 related expense, and the cumulative tax impact of these adjustments.
Operating EPS (diluted) is calculated as earnings per share as reported, adjusted to reflect, on a per share basis, the impact of excluding the non-GAAP adjustments described above for the relevant period. Operating ROE is calculated as net operating income from continuing operations, divided by the company’s average total shareholders’ equity for the relevant period. Operating ROA is calculated as net operating income from continuing operations, divided by the company’s average assets for the relevant period. Operating noninterest expense for the relevant period is defined as GAAP noninterest expense, adjusted to reflect the pre-tax impact of non-GAAP adjustments described above. Operating efficiency ratio is calculated as the company’s operating noninterest expense, net of amortization of other intangibles, divided by the company’s total non-GAAP revenue (calculated as net interest income plus noninterest income, less gains on sales of securities available for sale, net).
Pre-tax, pre-provision income for the relevant period is defined as GAAP net income, adjusted to reflect the impact of excluding income tax and provision expenses.
Tangible shareholders’ equity for the relevant period is defined as GAAP shareholders’ equity, net of intangible assets. Tangible book value per share is defined as tangible shareholders’ equity divided by the Company’s total shares outstanding.
Forward-Looking Statements:
This press release contains, and our other communications may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “outlook,” “forecast,” “target,” “trend,” “plan,” “goal,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, results, or aspirations. All forward-looking statements are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Our actual future objectives, strategies, plans, prospects, performance, condition, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events, circumstances, or aspirations to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2019, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (SEC). In addition to such factors that have been disclosed previously, the COVID-19 pandemic (the pandemic) may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. The pandemic has created a global public-health crisis that has resulted in widespread volatility and deteriorations in household, business, economic, and market conditions. It is currently adversely affecting the company and its customers, counterparties, employees, and third-party service providers, and the continued adverse impacts on our business, financial position, results of operations, and prospects could be significant. We are not able to accurately predict the extent of the impact of the pandemic on our capital, liquidity, and other financial positions and on our business, results of operations, and prospects at this time, and we believe it will depend on a number of evolving factors, including: (i) the duration, extent and severity of the pandemic; (ii) the response of governmental and non-governmental authorities to the pandemic, which is rapidly changing and not always coordinated or consistent across jurisdictions; (iii) the effect of the pandemic on our customers, counterparties, employees and third-party service providers, which may vary widely, and which is generally expected to increase our credit, counterparty, operational, and other risks; and (iv) the effect of the pandemic on economies and markets, which in turn could adversely affect, among other things, the origination of new loans and the performance of our existing loans. The pandemic is also expected to have a significant impact on our CECL calculation and related provision under a new accounting standard that we were required to phase in beginning January 2020. The CECL calculation includes periodic estimates of the net amount expected to be collected over the contractual term of certain financial assets, and requires us to take into account, among other things, economic conditions forecasted over the life of the financial asset, including the current and anticipated effects of the pandemic. Any forward-looking statement should be evaluated in light of these considerations. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except to the extent required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K, or other applicable document that is filed or furnished with the SEC.
About UMB:
UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, and serves business and institutional clients nationwide. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn, or follow us on Twitter at @UMBBank. For information about UMB’s operations, approach and relief measures during the COVID-19 pandemic, please visit umb.com/COVID-19.
Consolidated Balance Sheets |
|
UMB Financial Corporation |
|
|||||
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|||||
|
|
2020 |
|
|
2019 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Loans |
|
$ |
15,305,097 |
|
|
$ |
12,900,269 |
|
Allowance for credit losses on loans |
|
|
(200,300 |
) |
|
|
(102,092 |
) |
Net loans |
|
|
15,104,797 |
|
|
|
12,798,177 |
|
Loans held for sale |
|
|
8,213 |
|
|
|
2,771 |
|
Securities: |
|
|
|
|
|
|
|
|
Available for sale |
|
|
8,483,624 |
|
|
|
7,176,351 |
|
Held to maturity, net of allowance for credit losses |
|
|
1,111,625 |
|
|
|
1,112,773 |
|
Trading securities |
|
|
51,383 |
|
|
|
81,381 |
|
Other securities |
|
|
154,206 |
|
|
|
89,302 |
|
Total securities |
|
|
9,800,838 |
|
|
|
8,459,807 |
|
Federal funds sold and resell agreements |
|
|
1,347,643 |
|
|
|
283,603 |
|
Interest-bearing due from banks |
|
|
1,714,478 |
|
|
|
876,551 |
|
Cash and due from banks |
|
|
462,849 |
|
|
|
422,648 |
|
Premises and equipment, net |
|
|
300,174 |
|
|
|
278,725 |
|
Accrued income |
|
|
126,962 |
|
|
|
124,396 |
|
Goodwill |
|
|
180,867 |
|
|
|
180,867 |
|
Other intangibles, net |
|
|
24,181 |
|
|
|
12,425 |
|
Other assets |
|
|
682,606 |
|
|
|
576,306 |
|
Total assets |
|
$ |
29,753,608 |
|
|
$ |
24,016,276 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
8,633,603 |
|
|
$ |
6,524,428 |
|
Interest-bearing demand and savings |
|
|
15,033,643 |
|
|
|
11,870,782 |
|
Time deposits under $250,000 |
|
|
546,089 |
|
|
|
610,711 |
|
Time deposits of $250,000 or more |
|
|
246,069 |
|
|
|
394,309 |
|
Total deposits |
|
|
24,459,404 |
|
|
|
19,400,230 |
|
Federal funds purchased and repurchase agreements |
|
|
1,963,694 |
|
|
|
1,708,884 |
|
Short-term debt |
|
|
15,000 |
|
|
|
— |
|
Long-term debt |
|
|
70,996 |
|
|
|
69,825 |
|
Accrued expenses and taxes |
|
|
239,254 |
|
|
|
198,141 |
|
Other liabilities |
|
|
227,865 |
|
|
|
161,406 |
|
Total liabilities |
|
|
26,976,213 |
|
|
|
21,538,486 |
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Common stock |
|
|
55,057 |
|
|
|
55,057 |
|
Capital surplus |
|
|
1,081,713 |
|
|
|
1,065,301 |
|
Retained earnings |
|
|
1,692,289 |
|
|
|
1,573,586 |
|
Accumulated other comprehensive income, net |
|
|
284,262 |
|
|
|
62,617 |
|
Treasury stock |
|
|
(335,926 |
) |
|
|
(278,771 |
) |
Total shareholders' equity |
|
|
2,777,395 |
|
|
|
2,477,790 |
|
Total liabilities and shareholders' equity |
|
$ |
29,753,608 |
|
|
$ |
24,016,276 |
|
Consolidated Statements of Income |
|
UMB Financial Corporation |
|
|||||||||||||
(unaudited, dollars in thousands except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
140,004 |
|
|
$ |
161,838 |
|
|
$ |
291,030 |
|
|
$ |
319,099 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable interest |
|
|
25,870 |
|
|
|
26,700 |
|
|
|
53,082 |
|
|
|
52,091 |
|
Tax-exempt interest |
|
|
24,612 |
|
|
|
21,988 |
|
|
|
49,016 |
|
|
|
42,685 |
|
Total securities income |
|
|
50,482 |
|
|
|
48,688 |
|
|
|
102,098 |
|
|
|
94,776 |
|
Federal funds and resell agreements |
|
|
1,573 |
|
|
|
2,526 |
|
|
|
7,025 |
|
|
|
6,151 |
|
Interest-bearing due from banks |
|
|
398 |
|
|
|
2,768 |
|
|
|
3,061 |
|
|
|
6,667 |
|
Trading securities |
|
|
312 |
|
|
|
842 |
|
|
|
966 |
|
|
|
1,276 |
|
Total interest income |
|
|
192,769 |
|
|
|
216,662 |
|
|
|
404,180 |
|
|
|
427,969 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
11,243 |
|
|
|
39,516 |
|
|
|
40,975 |
|
|
|
77,350 |
|
Federal funds and repurchase agreements |
|
|
1,950 |
|
|
|
9,347 |
|
|
|
8,331 |
|
|
|
17,611 |
|
Other |
|
|
1,347 |
|
|
|
1,385 |
|
|
|
2,704 |
|
|
|
2,726 |
|
Total interest expense |
|
|
14,540 |
|
|
|
50,248 |
|
|
|
52,010 |
|
|
|
97,687 |
|
Net interest income |
|
|
178,229 |
|
|
|
166,414 |
|
|
|
352,170 |
|
|
|
330,282 |
|
Provision for credit losses |
|
|
21,500 |
|
|
|
11,000 |
|
|
|
109,500 |
|
|
|
23,350 |
|
Net interest income after provision for credit losses |
|
|
156,729 |
|
|
|
155,414 |
|
|
|
242,670 |
|
|
|
306,932 |
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and securities processing |
|
|
46,321 |
|
|
|
42,903 |
|
|
|
93,321 |
|
|
|
84,860 |
|
Trading and investment banking |
|
|
12,851 |
|
|
|
5,453 |
|
|
|
14,574 |
|
|
|
11,034 |
|
Service charges on deposit accounts |
|
|
19,074 |
|
|
|
20,747 |
|
|
|
44,155 |
|
|
|
42,028 |
|
Insurance fees and commissions |
|
|
533 |
|
|
|
465 |
|
|
|
792 |
|
|
|
803 |
|
Brokerage fees |
|
|
5,753 |
|
|
|
7,077 |
|
|
|
15,613 |
|
|
|
14,320 |
|
Bankcard fees |
|
|
12,916 |
|
|
|
16,439 |
|
|
|
29,461 |
|
|
|
33,506 |
|
Gains (losses) on sales of securities available for sale, net |
|
|
4,006 |
|
|
|
(1,403 |
) |
|
|
5,233 |
|
|
|
(594 |
) |
Other |
|
|
19,002 |
|
|
|
13,717 |
|
|
|
15,731 |
|
|
|
26,823 |
|
Total noninterest income |
|
|
120,456 |
|
|
|
105,398 |
|
|
|
218,880 |
|
|
|
212,780 |
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
130,938 |
|
|
|
114,454 |
|
|
|
241,998 |
|
|
|
230,486 |
|
Occupancy, net |
|
|
11,411 |
|
|
|
11,539 |
|
|
|
23,591 |
|
|
|
23,282 |
|
Equipment |
|
|
21,502 |
|
|
|
18,824 |
|
|
|
42,743 |
|
|
|
38,508 |
|
Supplies and services |
|
|
3,785 |
|
|
|
4,285 |
|
|
|
7,970 |
|
|
|
8,158 |
|
Marketing and business development |
|
|
3,284 |
|
|
|
7,304 |
|
|
|
7,924 |
|
|
|
12,217 |
|
Processing fees |
|
|
13,603 |
|
|
|
13,096 |
|
|
|
26,993 |
|
|
|
25,228 |
|
Legal and consulting |
|
|
6,220 |
|
|
|
7,496 |
|
|
|
12,330 |
|
|
|
13,129 |
|
Bankcard |
|
|
4,549 |
|
|
|
4,701 |
|
|
|
9,409 |
|
|
|
9,046 |
|
Amortization of other intangible assets |
|
|
1,658 |
|
|
|
1,251 |
|
|
|
3,392 |
|
|
|
2,578 |
|
Regulatory fees |
|
|
3,211 |
|
|
|
2,910 |
|
|
|
5,577 |
|
|
|
5,800 |
|
Other |
|
|
8,372 |
|
|
|
7,527 |
|
|
|
15,225 |
|
|
|
15,581 |
|
Total noninterest expense |
|
|
208,533 |
|
|
|
193,387 |
|
|
|
397,152 |
|
|
|
384,013 |
|
Income before income taxes |
|
|
68,652 |
|
|
|
67,425 |
|
|
|
64,398 |
|
|
|
135,699 |
|
Income tax expense |
|
|
8,123 |
|
|
|
10,466 |
|
|
|
7,308 |
|
|
|
20,996 |
|
NET INCOME |
|
$ |
60,529 |
|
|
$ |
56,959 |
|
|
$ |
57,090 |
|
|
$ |
114,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income – basic |
|
$ |
1.26 |
|
|
$ |
1.17 |
|
|
$ |
1.18 |
|
|
$ |
2.35 |
|
Net income – diluted |
|
|
1.26 |
|
|
|
1.16 |
|
|
|
1.18 |
|
|
|
2.34 |
|
Dividends |
|
|
0.31 |
|
|
|
0.30 |
|
|
|
0.62 |
|
|
|
0.60 |
|
Weighted average shares outstanding – basic |
|
|
47,991,283 |
|
|
|
48,777,732 |
|
|
|
48,340,579 |
|
|
|
48,745,124 |
|
Weighted average shares outstanding – diluted |
|
48,077,810 |
|
|
|
49,039,692 |
|
|
|
48,491,526 |
|
|
|
49,018,787 |
|
|
Consolidated Statements of Comprehensive Income |
|
UMB Financial Corporation |
|
|||||||||||||
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Net income |
|
$ |
60,529 |
|
|
$ |
56,959 |
|
|
$ |
57,090 |
|
|
$ |
114,703 |
|
Other comprehensive income, before tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains and losses on debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in unrealized holding gains and losses, net |
|
|
84,885 |
|
|
|
107,484 |
|
|
|
249,001 |
|
|
|
213,918 |
|
Less: Reclassification adjustment for (gains) losses included in net income |
|
|
(4,006 |
) |
|
|
1,403 |
|
|
|
(5,233 |
) |
|
|
594 |
|
Change in unrealized gains and losses on debt securities |
|
|
80,879 |
|
|
|
108,887 |
|
|
|
243,768 |
|
|
|
214,512 |
|
Unrealized gains and losses on derivative hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in unrealized gains and losses on derivative hedges, net |
|
|
4,612 |
|
|
|
(3,061 |
) |
|
|
19,137 |
|
|
|
(5,149 |
) |
Less: Reclassification adjustment for (gains) losses included in net income |
|
|
(514 |
) |
|
|
20 |
|
|
|
254 |
|
|
|
15 |
|
Change in unrealized gains and losses on derivative hedges |
|
|
4,098 |
|
|
|
(3,041 |
) |
|
|
19,391 |
|
|
|
(5,134 |
) |
Other comprehensive income, before tax |
|
|
84,977 |
|
|
|
105,846 |
|
|
|
263,159 |
|
|
|
209,378 |
|
Income tax expense |
|
|
(20,105 |
) |
|
|
(25,590 |
) |
|
|
(62,077 |
) |
|
|
(50,979 |
) |
Other comprehensive income |
|
|
64,872 |
|
|
|
80,256 |
|
|
|
201,082 |
|
|
|
158,399 |
|
Comprehensive income |
|
$ |
125,401 |
|
|
$ |
137,215 |
|
|
$ |
258,172 |
|
|
$ |
273,102 |
|
Consolidated Statements of Shareholders' Equity |
UMB Financial Corporation |
|
||||||||||||||||||||||
(unaudited, dollars in thousands except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Common Stock |
|
|
Capital Surplus |
|
|
Retained Earnings |
|
|
Accumulated Other Comprehensive (Loss) Income |
|
|
Treasury Stock |
|
|
Total |
|
||||||
Balance - January 1, 2019 |
|
$ |
55,057 |
|
|
$ |
1,054,601 |
|
|
$ |
1,488,421 |
|
|
$ |
(95,782 |
) |
|
$ |
(273,827 |
) |
|
$ |
2,228,470 |
|
Total comprehensive income |
|
|
— |
|
|
|
— |
|
|
|
114,703 |
|
|
|
158,399 |
|
|
|
— |
|
|
|
273,102 |
|
Dividends ($0.60 per share) |
|
|
— |
|
|
|
— |
|
|
|
(29,538 |
) |
|
|
— |
|
|
|
— |
|
|
|
(29,538 |
) |
Purchase of treasury stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,114 |
) |
|
|
(4,114 |
) |
Forfeitures of equity awards, net of issuances |
|
|
— |
|
|
|
3,107 |
|
|
|
— |
|
|
|
— |
|
|
|
(2,503 |
) |
|
|
604 |
|
Recognition of equity-based compensation |
|
|
— |
|
|
|
7,006 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,006 |
|
Sale of treasury stock |
|
|
— |
|
|
|
185 |
|
|
|
— |
|
|
|
— |
|
|
|
274 |
|
|
|
459 |
|
Exercise of stock options |
|
|
— |
|
|
|
402 |
|
|
|
— |
|
|
|
— |
|
|
|
1,399 |
|
|
|
1,801 |
|
Balance - June 30, 2019 |
|
$ |
55,057 |
|
|
$ |
1,065,301 |
|
|
$ |
1,573,586 |
|
|
$ |
62,617 |
|
|
$ |
(278,771 |
) |
|
$ |
2,477,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance - January 1, 2020 |
|
$ |
55,057 |
|
|
$ |
1,073,764 |
|
|
$ |
1,672,438 |
|
|
$ |
83,180 |
|
|
$ |
(277,999 |
) |
|
$ |
2,606,440 |
|
Total comprehensive income |
|
|
— |
|
|
|
— |
|
|
|
57,090 |
|
|
|
201,082 |
|
|
|
— |
|
|
|
258,172 |
|
Dividends ($0.62 per share) |
|
|
— |
|
|
|
— |
|
|
|
(30,200 |
) |
|
|
— |
|
|
|
— |
|
|
|
(30,200 |
) |
Purchase of treasury stock |
|
|
— |
|
|
|
615 |
|
|
|
— |
|
|
|
— |
|
|
|
(60,074 |
) |
|
|
(59,459 |
) |
Forfeitures of equity awards, net of issuances |
|
|
— |
|
|
|
676 |
|
|
|
— |
|
|
|
— |
|
|
|
(83 |
) |
|
|
593 |
|
Recognition of equity-based compensation |
|
|
— |
|
|
|
6,109 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,109 |
|
Sale of treasury stock |
|
|
— |
|
|
|
120 |
|
|
|
— |
|
|
|
— |
|
|
|
201 |
|
|
|
321 |
|
Exercise of stock options |
|
|
— |
|
|
|
429 |
|
|
|
— |
|
|
|
— |
|
|
|
2,029 |
|
|
|
2,458 |
|
Cumulative effect adjustment |
|
|
— |
|
|
|
— |
|
|
|
(7,039 |
) |
|
|
— |
|
|
|
— |
|
|
|
(7,039 |
) |
Balance - June 30, 2020 |
|
$ |
55,057 |
|
|
$ |
1,081,713 |
|
|
$ |
1,692,289 |
|
|
$ |
284,262 |
|
|
$ |
(335,926 |
) |
|
$ |
2,777,395 |
|
Average Balances / Yields and Rates |
|
UMB Financial Corporation |
|
|||||||||||||
(tax - equivalent basis) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|||||||||||||
|
|
2020 |
|
|
2019 |
|
||||||||||
|
|
Average |
|
|
Average |
|
|
Average |
|
|
Average |
|
||||
|
|
Balance |
|
|
Yield/Rate |
|
|
Balance |
|
|
Yield/Rate |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned interest |
|
$ |
15,098,366 |
|
|
|
3.73 |
% |
|
$ |
12,620,981 |
|
|
|
5.14 |
% |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
5,069,290 |
|
|
|
2.05 |
|
|
|
4,502,680 |
|
|
|
2.38 |
|
Tax-exempt |
|
|
4,108,075 |
|
|
|
3.05 |
|
|
|
3,725,185 |
|
|
|
2.99 |
|
Total securities |
|
|
9,177,365 |
|
|
|
2.50 |
|
|
|
8,227,865 |
|
|
|
2.65 |
|
Federal funds and resell agreements |
|
|
807,245 |
|
|
|
0.78 |
|
|
|
329,064 |
|
|
|
3.08 |
|
Interest bearing due from banks |
|
|
1,492,798 |
|
|
|
0.11 |
|
|
|
450,032 |
|
|
|
2.47 |
|
Trading securities |
|
|
37,816 |
|
|
|
3.79 |
|
|
|
61,565 |
|
|
|
6.07 |
|
Total earning assets |
|
|
26,613,590 |
|
|
|
3.01 |
|
|
|
21,689,507 |
|
|
|
4.11 |
|
Allowance for credit losses |
|
|
(195,373 |
) |
|
|
|
|
|
|
(109,463 |
) |
|
|
|
|
Other assets |
|
|
1,717,808 |
|
|
|
|
|
|
|
1,690,423 |
|
|
|
|
|
Total assets |
|
$ |
28,136,025 |
|
|
|
|
|
|
$ |
23,270,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
15,117,729 |
|
|
|
0.30 |
% |
|
$ |
12,707,353 |
|
|
|
1.25 |
% |
Federal funds and repurchase agreements |
|
|
2,138,156 |
|
|
|
0.37 |
|
|
|
1,728,748 |
|
|
|
2.17 |
|
Borrowed funds |
|
|
85,681 |
|
|
|
6.32 |
|
|
|
69,662 |
|
|
|
7.97 |
|
Total interest-bearing liabilities |
|
|
17,341,566 |
|
|
|
0.34 |
|
|
|
14,505,763 |
|
|
|
1.39 |
|
Noninterest-bearing demand deposits |
|
|
7,662,836 |
|
|
|
|
|
|
|
6,078,520 |
|
|
|
|
|
Other liabilities |
|
|
411,964 |
|
|
|
|
|
|
|
271,890 |
|
|
|
|
|
Shareholders' equity |
|
|
2,719,659 |
|
|
|
|
|
|
|
2,414,294 |
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
28,136,025 |
|
|
|
|
|
|
$ |
23,270,467 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
2.67 |
% |
|
|
|
|
|
|
2.72 |
% |
Net interest margin |
|
|
|
|
|
|
2.79 |
|
|
|
|
|
|
|
3.19 |
|
Average Balances / Yields and Rates |
|
UMB Financial Corporation |
|
|||||||||||||
(tax - equivalent basis) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|||||||||||||
|
|
2020 |
|
|
2019 |
|
||||||||||
|
|
Average |
|
|
Average |
|
|
Average |
|
|
Average |
|
||||
|
|
Balance |
|
|
Yield/Rate |
|
|
Balance |
|
|
Yield/Rate |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned interest |
|
$ |
14,357,466 |
|
|
|
4.08 |
% |
|
$ |
12,462,946 |
|
|
|
5.16 |
% |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
4,881,854 |
|
|
|
2.19 |
|
|
|
4,402,458 |
|
|
|
2.39 |
|
Tax-exempt |
|
|
4,085,558 |
|
|
|
3.05 |
|
|
|
3,674,456 |
|
|
|
2.96 |
|
Total securities |
|
|
8,967,412 |
|
|
|
2.58 |
|
|
|
8,076,914 |
|
|
|
2.65 |
|
Federal funds and resell agreements |
|
|
1,015,720 |
|
|
|
1.39 |
|
|
|
424,712 |
|
|
|
2.92 |
|
Interest bearing due from banks |
|
|
1,164,405 |
|
|
|
0.53 |
|
|
|
554,551 |
|
|
|
2.42 |
|
Trading securities |
|
|
42,959 |
|
|
|
4.93 |
|
|
|
54,029 |
|
|
|
5.36 |
|
Total earning assets |
|
|
25,547,962 |
|
|
|
3.28 |
|
|
|
21,573,152 |
|
|
|
4.11 |
|
Allowance for credit losses |
|
|
(154,062 |
) |
|
|
|
|
|
|
(107,465 |
) |
|
|
|
|
Other assets |
|
|
1,693,684 |
|
|
|
|
|
|
|
1,597,444 |
|
|
|
|
|
Total assets |
|
$ |
27,087,584 |
|
|
|
|
|
|
$ |
23,063,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
14,723,895 |
|
|
|
0.56 |
% |
|
$ |
12,729,813 |
|
|
|
1.23 |
% |
Federal funds and repurchase agreements |
|
|
2,084,271 |
|
|
|
0.80 |
|
|
|
1,642,140 |
|
|
|
2.16 |
|
Borrowed funds |
|
|
78,164 |
|
|
|
6.96 |
|
|
|
69,539 |
|
|
|
7.91 |
|
Total interest-bearing liabilities |
|
|
16,886,330 |
|
|
|
0.62 |
|
|
|
14,441,492 |
|
|
|
1.36 |
|
Noninterest-bearing demand deposits |
|
|
7,079,224 |
|
|
|
|
|
|
|
6,028,259 |
|
|
|
|
|
Other liabilities |
|
|
401,724 |
|
|
|
|
|
|
|
267,943 |
|
|
|
|
|
Shareholders' equity |
|
|
2,720,306 |
|
|
|
|
|
|
|
2,325,437 |
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
27,087,584 |
|
|
|
|
|
|
$ |
23,063,131 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
2.66 |
% |
|
|
|
|
|
|
2.75 |
% |
Net interest margin |
|
|
|
|
|
|
2.88 |
|
|
|
|
|
|
|
3.19 |
|
Business Segment Information |
|
UMB Financial Corporation |
|
|||||||||||||
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2020 |
|
|||||||||||||
|
|
Commercial Banking |
|
|
Institutional Banking |
|
|
Personal Banking |
|
|
Total |
|
||||
Net interest income |
|
$ |
113,085 |
|
|
$ |
28,129 |
|
|
$ |
37,015 |
|
|
$ |
178,229 |
|
Provision for credit losses |
|
|
19,281 |
|
|
|
298 |
|
|
|
1,921 |
|
|
|
21,500 |
|
Noninterest income |
|
|
24,078 |
|
|
|
66,488 |
|
|
|
29,890 |
|
|
|
120,456 |
|
Noninterest expense |
|
|
62,123 |
|
|
|
76,953 |
|
|
|
69,457 |
|
|
|
208,533 |
|
Income (loss) before taxes |
|
|
55,759 |
|
|
|
17,366 |
|
|
|
(4,473 |
) |
|
|
68,652 |
|
Income tax expense (benefit) |
|
|
6,597 |
|
|
|
2,055 |
|
|
|
(529 |
) |
|
|
8,123 |
|
Net income (loss) |
|
$ |
49,162 |
|
|
$ |
15,311 |
|
|
$ |
(3,944 |
) |
|
$ |
60,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2019 |
|
|||||||||||||
|
|
Commercial Banking |
|
|
Institutional Banking |
|
|
Personal Banking |
|
|
Total |
|
||||
Net interest income |
|
$ |
102,579 |
|
|
$ |
30,501 |
|
|
$ |
33,334 |
|
|
$ |
166,414 |
|
Provision for credit losses |
|
|
9,306 |
|
|
|
181 |
|
|
|
1,513 |
|
|
|
11,000 |
|
Noninterest income |
|
|
20,387 |
|
|
|
55,626 |
|
|
|
29,385 |
|
|
|
105,398 |
|
Noninterest expense |
|
|
68,511 |
|
|
|
64,852 |
|
|
|
60,024 |
|
|
|
193,387 |
|
Income before taxes |
|
|
45,149 |
|
|
|
21,094 |
|
|
|
1,182 |
|
|
|
67,425 |
|
Income tax expense |
|
|
7,008 |
|
|
|
3,274 |
|
|
|
184 |
|
|
|
10,466 |
|
Net income |
|
$ |
38,141 |
|
|
$ |
17,820 |
|
|
$ |
998 |
|
|
$ |
56,959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2020 |
|
|||||||||||||
|
|
Commercial Banking |
|
|
Institutional Banking |
|
|
Personal Banking |
|
|
Total |
|
||||
Net interest income |
|
$ |
220,034 |
|
|
$ |
61,164 |
|
|
$ |
70,972 |
|
|
$ |
352,170 |
|
Provision for credit losses |
|
|
101,501 |
|
|
|
573 |
|
|
|
7,426 |
|
|
|
109,500 |
|
Noninterest income |
|
|
35,318 |
|
|
|
128,440 |
|
|
|
55,122 |
|
|
|
218,880 |
|
Noninterest expense |
|
|
121,166 |
|
|
|
145,406 |
|
|
|
130,580 |
|
|
|
397,152 |
|
Income (loss) before taxes |
|
|
32,685 |
|
|
|
43,625 |
|
|
|
(11,912 |
) |
|
|
64,398 |
|
Income tax expense (benefit) |
|
|
3,709 |
|
|
|
4,951 |
|
|
|
(1,352 |
) |
|
|
7,308 |
|
Net income (loss) |
|
$ |
28,976 |
|
|
$ |
38,674 |
|
|
$ |
(10,560 |
) |
|
$ |
57,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019 |
|
|||||||||||||
|
|
Commercial Banking |
|
|
Institutional Banking |
|
|
Personal Banking |
|
|
Total |
|
||||
Net interest income |
|
$ |
202,393 |
|
|
$ |
62,252 |
|
|
$ |
65,637 |
|
|
$ |
330,282 |
|
Provision for credit losses |
|
|
19,635 |
|
|
|
467 |
|
|
|
3,248 |
|
|
|
23,350 |
|
Noninterest income |
|
|
43,568 |
|
|
|
111,476 |
|
|
|
57,736 |
|
|
|
212,780 |
|
Noninterest expense |
|
|
135,331 |
|
|
|
130,249 |
|
|
|
118,433 |
|
|
|
384,013 |
|
Income before taxes |
|
|
90,995 |
|
|
|
43,012 |
|
|
|
1,692 |
|
|
|
135,699 |
|
Income tax expense |
|
|
14,079 |
|
|
|
6,655 |
|
|
|
262 |
|
|
|
20,996 |
|
Net income |
|
$ |
76,916 |
|
|
$ |
36,357 |
|
|
$ |
1,430 |
|
|
$ |
114,703 |
|
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. Previously, the company had the following four business segments: Commercial Banking, Institutional Banking, Personal Banking, and Healthcare Services. 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 June 30, 2020.
Non-GAAP Financial Measures
Net operating income Non-GAAP reconciliations: |
|
UMB Financial Corporation |
|
|||||||||||||
(unaudited, dollars in thousands except per share data) |
|
|
|
|||||||||||||
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Net income (GAAP) |
|
$ |
60,529 |
|
|
$ |
56,959 |
|
|
$ |
57,090 |
|
|
$ |
114,703 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expense |
|
|
123 |
|
|
|
70 |
|
|
|
246 |
|
|
|
97 |
|
Severance expense |
|
|
137 |
|
|
|
297 |
|
|
|
1,789 |
|
|
|
867 |
|
COVID-19 related expense |
|
|
3,989 |
|
|
|
— |
|
|
|
4,217 |
|
|
|
— |
|
Tax-impact of adjustments (i) |
|
|
(943 |
) |
|
|
(81 |
) |
|
|
(1,388 |
) |
|
|
(214 |
) |
Total Non-GAAP adjustments (net of tax) |
|
|
3,306 |
|
|
|
286 |
|
|
|
4,864 |
|
|
|
750 |
|
Net operating income (Non-GAAP) |
|
$ |
63,835 |
|
|
$ |
57,245 |
|
|
$ |
61,954 |
|
|
$ |
115,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted (GAAP) |
|
$ |
1.26 |
|
|
$ |
1.16 |
|
|
$ |
1.18 |
|
|
$ |
2.34 |
|
Acquisition expense |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
Severance expense |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.04 |
|
|
|
0.02 |
|
COVID-19 related expense |
|
|
0.08 |
|
|
|
— |
|
|
|
0.08 |
|
|
|
— |
|
Tax-impact of adjustments (i) |
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
Operating earnings per share - diluted (Non-GAAP) |
|
$ |
1.33 |
|
|
$ |
1.17 |
|
|
$ |
1.28 |
|
|
$ |
2.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.87 |
% |
|
|
0.98 |
% |
|
|
0.42 |
% |
|
|
1.00 |
% |
Return on average equity |
|
|
8.95 |
|
|
|
9.46 |
|
|
|
4.22 |
|
|
|
9.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return on average assets |
|
|
0.91 |
% |
|
|
0.99 |
% |
|
|
0.46 |
% |
|
|
1.01 |
% |
Operating return on average equity |
|
|
9.44 |
|
|
|
9.51 |
|
|
|
4.58 |
|
|
|
10.01 |
|
(i) Calculated using the company’s marginal tax rate of 22.2%.
Operating noninterest expense and operating efficiency ratio Non-GAAP reconciliations: |
|
UMB Financial Corporation |
|
|||||||||||||
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Noninterest expense |
|
$ |
208,533 |
|
|
$ |
193,387 |
|
|
$ |
397,152 |
|
|
$ |
384,013 |
|
Adjustments to arrive at operating noninterest expense (pre-tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expense |
|
|
123 |
|
|
|
70 |
|
|
|
246 |
|
|
|
97 |
|
Severance expense |
|
|
137 |
|
|
|
297 |
|
|
|
1,789 |
|
|
|
867 |
|
COVID-19 related expense |
|
|
3,989 |
|
|
|
— |
|
|
|
4,217 |
|
|
|
— |
|
Total Non-GAAP adjustments (pre-tax) |
|
|
4,249 |
|
|
|
367 |
|
|
|
6,252 |
|
|
|
964 |
|
Operating noninterest expense (Non-GAAP) |
|
$ |
204,284 |
|
|
$ |
193,020 |
|
|
$ |
390,900 |
|
|
$ |
383,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense |
|
$ |
208,533 |
|
|
$ |
193,387 |
|
|
$ |
397,152 |
|
|
$ |
384,013 |
|
Less: Amortization of other intangibles |
|
|
1,658 |
|
|
|
1,251 |
|
|
|
3,392 |
|
|
|
2,578 |
|
Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A) |
|
$ |
206,875 |
|
|
$ |
192,136 |
|
|
$ |
393,760 |
|
|
$ |
381,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating noninterest expense |
|
$ |
204,284 |
|
|
$ |
193,020 |
|
|
$ |
390,900 |
|
|
$ |
383,049 |
|
Less: Amortization of other intangibles |
|
|
1,658 |
|
|
|
1,251 |
|
|
|
3,392 |
|
|
|
2,578 |
|
Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B) |
|
$ |
202,626 |
|
|
$ |
191,769 |
|
|
$ |
387,508 |
|
|
$ |
380,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
178,229 |
|
|
$ |
166,414 |
|
|
$ |
352,170 |
|
|
$ |
330,282 |
|
Noninterest income |
|
|
120,456 |
|
|
|
105,398 |
|
|
|
218,880 |
|
|
|
212,780 |
|
Less: Gains (losses) on sales of securities available for sale, net |
|
|
4,006 |
|
|
|
(1,403 |
) |
|
|
5,233 |
|
|
|
(594 |
) |
Total Non-GAAP Revenue (denominator A) |
|
$ |
294,679 |
|
|
$ |
273,215 |
|
|
$ |
565,817 |
|
|
$ |
543,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (numerator A/denominator A) |
|
|
70.20 |
% |
|
|
70.32 |
% |
|
|
69.59 |
% |
|
|
70.16 |
% |
Operating efficiency ratio (Non-GAAP) (numerator B/denominator A) |
|
|
68.76 |
|
|
|
70.19 |
|
|
|
68.49 |
|
|
|
69.98 |
|
Pre-tax, pre-provision income non-GAAP reconciliation: |
UMB Financial Corporation |
|
||||||||||||||
(unaudited, dollars in thousands except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Net income before taxes (GAAP) |
|
$ |
68,652 |
|
|
$ |
67,425 |
|
|
$ |
64,398 |
|
|
$ |
135,699 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses |
|
|
21,500 |
|
|
|
11,000 |
|
|
|
109,500 |
|
|
|
23,350 |
|
Pre-tax, pre-provision income (Non-GAAP) |
|
$ |
90,152 |
|
|
$ |
78,425 |
|
|
$ |
173,898 |
|
|
$ |
159,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings per share - diluted (GAAP) |
|
$ |
1.43 |
|
|
$ |
1.37 |
|
|
$ |
1.33 |
|
|
$ |
2.77 |
|
Provision for credit losses |
|
|
0.45 |
|
|
|
0.23 |
|
|
|
2.26 |
|
|
|
0.47 |
|
Pre-tax, pre-provision earnings per share - diluted (Non-GAAP) |
|
$ |
1.88 |
|
|
$ |
1.60 |
|
|
$ |
3.59 |
|
|
$ |
3.24 |
|
Tangible book value non-GAAP reconciliation: |
UMB Financial Corporation |
|
||||||
(unaudited, dollars in thousands except share and per share data) |
|
|
|
|
|
|
|
|
|
|
As of |
|
|||||
|
|
June 30, 2020 |
|
|
June 30, 2019 |
|
||
Total shareholders' equity (GAAP) |
|
$ |
2,777,395 |
|
|
$ |
2,477,790 |
|
Less: Intangible assets |
|
|
|
|
|
|
|
|
Goodwill |
|
|
180,867 |
|
|
|
180,867 |
|
Other intangibles, net |
|
|
24,181 |
|
|
|
12,425 |
|
Total intangibles, net |
|
|
205,048 |
|
|
|
193,292 |
|
Total tangible shareholders' equity (Non-GAAP) |
|
$ |
2,572,347 |
|
|
$ |
2,284,498 |
|
|
|
|
|
|
|
|
|
|
Total shares outstanding |
|
|
48,021,707 |
|
|
|
49,062,900 |
|
|
|
|
|
|
|
|
|
|
Ratio of total shareholders' equity (book value) per share |
|
$ |
57.84 |
|
|
$ |
50.50 |
|
Ratio of total tangible shareholders' equity (tangible book value) per share (Non-GAAP) |
|
|
53.57 |
|
|
|
46.56 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20200728005509/en/
Stephanie Hague: 816.860.5088
Investor Relations Contact: Kay Gregory: 816.860.7106
Source: UMB Financial Corporation