KANSAS CITY, Mo. -- (Business Wire)
UMB Financial Corporation (Nasdaq: UMBF), a financial holding company,
announced income from continuing operations for the third quarter 2018
of $57.8 million, or $1.16 per diluted share, compared to $55.4 million,
or $1.11 per diluted share, in the second quarter 2018 (linked quarter)
and $48.9 million, or $0.98 per diluted share, in the third quarter
2017. The reported GAAP income from continuing operations represents
increases of 4.4 percent on a linked-quarter basis and 18.4 percent
compared to the third quarter 2017.
Net operating income from continuing operations, a non-GAAP financial
measure reconciled to income from continuing operations, the nearest
comparable GAAP measure, later in this release, was $58.0 million, or
$1.16 per diluted share, for the third quarter 2018, compared to $56.1
million, or $1.12 per diluted share, for the linked quarter and $48.9
million, or $0.98 per diluted share, for the third quarter 2017. These
results represent increases of 3.5 percent on a linked-quarter basis and
18.6 percent compared to the third quarter 2017.
|
|
| |
Summary of quarterly financial results |
|
| UMB Financial Corporation |
(unaudited, dollars in thousands, except per share data)
| | | |
| | | Q3 |
|
| Q2 |
|
| Q3 |
| | | 2018 | | | 2018 | | | 2017 |
Income from continuing operations
| | |
$
|
57,849
| | | |
$
|
55,424
| | | |
$
|
48,872
| |
Loss from discontinued operations
| | |
|
—
|
| | |
|
—
|
| | |
|
(730
|
)
|
Net income
| | | |
57,849
| | | | |
55,424
| | | | |
48,142
| |
| | | | | | | | | | | | | | |
|
Earnings per share from continuing operations (diluted)
| | | |
1.16
| | | | |
1.11
| | | | |
0.98
| |
Losses per share from discontinued operations (diluted)
| | |
|
—
|
| | |
|
—
|
| | |
|
(0.01
|
)
|
Earnings per share (diluted)
| | | |
1.16
| | | | |
1.11
| | | | |
0.97
| |
| | | | | | | | | | | | | | |
|
Net operating income from continuing operations
| | | |
58,024
| | | | |
56,079
| | | | |
48,927
| |
Operating earnings per share from continuing operations (diluted)
| | |
1.16
| | | |
1.12
| | | | |
0.98
| |
| | | | | | | | | | | | | | |
|
GAAP - continuing operations | | | | | | | | | | | | | | | |
Return on average assets
| | | |
1.11
|
%
| | | |
1.08
|
%
| | | |
0.95
|
%
|
Return on average equity
| | | |
10.32
| | | | |
10.18
| | | | |
9.17
| |
Efficiency ratio
| | | |
71.27
| | | | |
70.21
| | | | |
70.07
| |
| | | | | | | | | | | | | | |
|
Non-GAAP - continuing operations | | | | | | | | | | | | | | | |
Operating return on average assets
| | | |
1.11
|
%
| | | |
1.09
|
%
| | | |
0.96
|
%
|
Operating return on average equity
| | | |
10.35
| | | | |
10.30
| | | | |
9.18
| |
Operating efficiency ratio
| | | |
71.18
| | | | |
69.88
| | | | |
70.03
| |
| | | | | | | | | | | | | | |
|
Summary of year-to-date financial results |
|
|
|
| UMB Financial Corporation |
(unaudited, dollars in thousands, except per share data)
|
|
|
|
| September |
|
| September |
| | | | | YTD | | | YTD |
| | | | | 2018 | | | 2017 |
Income from continuing operations
| | | | |
$
|
170,806
| | | |
$
|
135,619
| |
Loss from discontinued operations
| | | | |
|
(747
|
)
| | |
|
(475
|
)
|
Net income
| | | | | |
170,059
| | | | |
135,144
| |
| | | | | | | | | | | |
|
Earnings per share from continuing operations (diluted)
| | | | | |
3.41
| | | | |
2.72
| |
Losses per share from discontinued operations (diluted)
| | | | |
|
(0.01
|
)
| | |
|
(0.01
|
)
|
Earnings per share (diluted)
| | | | | |
3.40
| | | | |
2.71
| |
| | | | | | | | | | | |
|
Net operating income from continuing operations
| | | | | |
173,165
| | | | |
136,155
| |
Operating earnings per share from continuing operations (diluted)
| | | | | |
3.47
| | | |
2.73
| |
| | | | | | | | | | | |
|
GAAP - continuing operations | | | | | | | | | | | | |
Return on average assets
| | | | | |
1.10
|
%
| | | |
0.89
|
%
|
Return on average equity
| | | | | |
10.43
| | | | |
8.82
| |
Efficiency ratio
| | | | | |
70.09
| | | | |
71.20
| |
| | | | | | | | | | | |
|
Non-GAAP - continuing operations | | | | | | | | | | | | |
Operating return on average assets
| | | | | |
1.12
|
%
| | | |
0.90
|
%
|
Operating return on average equity
| | | | | |
10.57
| | | | |
8.85
| |
Operating efficiency ratio
| | | | | |
69.69
| | | | |
71.09
| |
| | | | | | | | | | | |
|
“Highlights for the third quarter 2018 included strong loan growth, with
average balances increasing 9.6 percent on a linked-quarter annualized
basis, and 7.4 percent compared to the third quarter 2017,” said Mariner
Kemper, chairman and chief executive officer. “This compares to 4.0
percent growth on a linked-quarter annualized basis for the industry,
per Federal Reserve data. In addition, average deposits for the quarter
increased 5.4 percent compared to the third quarter of 2017, driven by
continued growth in asset servicing and healthcare balances, and our
recent deposit campaigns.”
Discussion of results from continuing operations
Summary of revenue |
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
|
|
| |
| | | Q3 |
|
| Q2 |
|
| Q3 |
|
| CQ vs. |
|
| CQ vs. |
| | | 2018 | | | 2018 | | | 2017 | | | LQ | | | PY |
Net interest income
| | |
$
|
150,490
| | | |
$
|
150,226
| | | |
$
|
140,858
| | | |
$
|
264
| | | |
$
|
9,632
| |
Noninterest income:
| | | | | | | | | | | | | | | | | | | | | | | | | |
Trust and securities processing
| | | |
43,425
| | | | |
42,845
| | | | |
45,060
| | | | |
580
| | | | |
(1,635
|
)
|
Trading and investment banking
| | | |
3,711
| | | | |
4,653
| | | | |
4,453
| | | | |
(942
|
)
| | | |
(742
|
)
|
Service charges on deposit accounts
| | | |
20,927
| | | | |
20,722
| | | | |
21,510
| | | | |
205
| | | | |
(583
|
)
|
Insurance fees and commissions
| | | |
339
| | | | |
340
| | | | |
425
| | | | |
(1
|
)
| | | |
(86
|
)
|
Brokerage fees
| | | |
6,402
| | | | |
6,291
| | | | |
5,815
| | | | |
111
| | | | |
587
| |
Bankcard fees
| | | |
16,838
| | | | |
17,184
| | | | |
17,427
| | | | |
(346
|
)
| | | |
(589
|
)
|
Gains on sales of securities available for sale, net
| | | |
211
| | | | |
228
| | | | |
2,390
| | | | |
(17
|
)
| | | |
(2,179
|
)
|
Other
| | |
|
9,032
|
| | |
|
8,026
|
| | |
|
7,226
|
| | |
|
1,006
|
| | |
|
1,806
|
|
Total noninterest income
| | |
$
|
100,885
|
| | |
$
|
100,289
|
| | |
$
|
104,306
|
| | |
$
|
596
|
| | |
$
|
(3,421
|
)
|
Total revenue
| | |
$
|
251,375
|
| | |
$
|
250,515
|
| | |
$
|
245,164
|
| | |
$
|
860
|
| | |
$
|
6,211
|
|
Net interest margin
| | | |
3.18
|
%
| | | |
3.24
|
%
| | | |
3.16
|
%
| | | | | | | | | | |
Total noninterest income as a % of total revenue
| | | |
40.13
| | | | |
40.03
| | | | |
42.55
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Following the enactment of the Tax Cuts and Jobs Act, beginning in
the first quarter of 2018, net interest margin is computed using net
interest income adjusted to a fully taxable equivalent (FTE) basis
assuming a statutory federal income tax rate of 21 percent and, where
applicable, state income taxes; prior period net interest margins are
computed using the then-statutory federal income tax rate of 35 percent
and, where applicable, state income taxes.
Net interest income
-
Net interest income totaled $150.5 million and increased modestly from
linked quarter levels, impacted by a 2.4 percent, or $274.1 million,
increase in average loans and one additional day of net interest
income. These impacts were offset by increases in cost of certain
interest-bearing deposits driven by the cumulative effect of recent
increases in short-term rates and recent deposit campaigns.
-
Earning asset yields improved 10 basis points from the linked quarter
primarily due to earning asset mix changes and improved loan yields of
13 basis points to 4.87 percent, in part driven by favorable
re-pricing from recent increases in short-term interest rates. The
cost of interest-bearing liabilities increased 24 basis points to 1.07
percent, driven by a 25-basis point increase in cost of
interest-bearing deposits. Total cost of deposits, including
noninterest-bearing deposits, was 62 basis points, an increase of 17
basis points from the linked quarter.
-
On a year-over-year basis, the increase in net interest income was
driven by a 7.4 percent, or $807.4 million, increase in average loans
as well as higher average loan yields, which increased 54 basis points
from one year ago, primarily driven by higher short-term interest
rates, volume, and mix changes.
Noninterest income
-
Third quarter 2018 noninterest income increased $0.6 million, or 0.6
percent, on a linked quarter basis, largely due to:
-
A $1.0 million increase in derivative income recorded in other
income.
-
An increase in trust and securities processing due to a $0.4
million increase in wealth management revenue.
-
These impacts were partially offset by a decrease of $0.9 million
in trading and investment banking due to decreased bond trading
volume.
-
Noninterest income in the third quarter of 2018 decreased $3.4
million, or 3.3 percent, compared to the same quarter in 2017
primarily driven by:
-
A $2.2 million decrease in gains on available-for-sale securities.
-
A $2.3 million decline in fund servicing revenue due to customer
repricing and losses, which was partially offset by an increase of
$1.0 million in corporate trust income, both recorded in trust and
securities processing.
-
A $0.7 million decrease in trading and investment banking income
due to decreased trading volume.
-
These impacts were partially offset by an increase of $0.7 million
in 12b-1 fees recorded in brokerage fee income, and an increase of
$0.7 million in derivative income recorded in other income.
Noninterest expense
Summary of Noninterest expense |
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
|
|
| |
| | | Q3 |
|
| Q2 |
|
| Q3 |
|
| CQ vs. |
|
| CQ vs. |
| | | 2018 | | | 2018 | | | 2017 | | | LQ | | | PY |
Salaries and employee benefits
| | |
$
|
102,956
| | |
$
|
104,175
| | |
$
|
99,749
| | |
$
|
(1,219
|
)
| | |
$
|
3,207
| |
Occupancy, net
| | | |
11,628
| | | |
10,813
| | | |
11,285
| | | |
815
| | | | |
343
| |
Equipment
| | | |
18,533
| | | |
18,842
| | | |
17,880
| | | |
(309
|
)
| | | |
653
| |
Supplies and services
| | | |
4,528
| | | |
4,146
| | | |
4,076
| | | |
382
| | | | |
452
| |
Marketing and business development
| | | |
6,671
| | | |
6,184
| | | |
5,056
| | | |
487
| | | | |
1,615
| |
Processing fees
| | | |
12,331
| | | |
11,537
| | | |
11,151
| | | |
794
| | | | |
1,180
| |
Legal and consulting
| | | |
8,470
| | | |
6,460
| | | |
5,844
| | | |
2,010
| | | | |
2,626
| |
Bankcard
| | | |
4,407
| | | |
4,165
| | | |
5,130
| | | |
242
| | | | |
(723
|
)
|
Amortization of other intangible assets
| | | |
1,385
| | | |
1,485
| | | |
1,715
| | | |
(100
|
)
| | | |
(330
|
)
|
Regulatory fees
| | | |
3,337
| | | |
3,772
| | | |
3,798
| | | |
(435
|
)
| | | |
(461
|
)
|
Other
| | |
|
6,139
| | |
|
5,639
| | |
|
6,137
| | |
|
500
|
| | |
|
2
|
|
Total noninterest expense
| | |
$
|
180,385
| | |
$
|
177,218
| | |
$
|
171,821
| | |
$
|
3,167
|
| | |
$
|
8,564
|
|
-
GAAP noninterest expense for the third quarter of 2018 was $180.4
million, an increase of $3.2 million, or 1.8 percent, from the linked
quarter and $8.6 million, or 5.0 percent, from the third quarter of
2017.
-
On a non-GAAP basis, operating noninterest expense (as reconciled
later in this release) was $180.2 million for the third quarter 2018,
an increase of $3.8 million, or 2.1 percent, compared to the linked
quarter, and $8.4 million, or 4.9 percent, compared to the third
quarter 2017.
-
The linked quarter increase in noninterest expense was driven by:
-
A $1.9 million increase in consulting expense incurred in
conjunction with the company’s ongoing investments in digital
channel and integrated platform solutions to support business
growth and the continued modernization of its core systems.
-
Increased processing fees expense of $0.8 million, primarily
related to larger asset servicing transaction volumes as new
customers were added.
-
These impacts were partially offset by a $1.2 million decline in
salaries and employee benefits, largely driven by lower medical
insurance expense as compared the second quarter of 2018.
-
The year-over-year increase in noninterest expense was driven by:
-
A $3.2 million increase in salaries and employee benefits,
comprised of a $1.9 million increase in salary and wage expense
and a $1.2 million increase in bonus and commission expense.
-
A $2.9 million increase in consulting expense due to investments
in digital channel and integrated platform solutions to support
business growth and the continued ongoing modernization of the
company’s core systems.
-
A $1.3 million increase in advertising expense related to timing
of multiple projects and campaigns, including recent deposit
promotions.
-
Increased processing fees expense of $1.2 million partially
attributed to larger asset servicing transaction volumes as new
customers were added.
Income Taxes
-
The company’s effective tax rate was 14.2 percent for the nine months
ended September 30, 2018, compared to 21.4 percent for the same period
in 2017. The decrease is primarily a result of the Tax Cuts and Jobs
Act, which lowered the federal corporate income tax rate to 21 percent
from 35 percent, effective January 1, 2018. The decrease is also
attributable to a discrete tax benefit of $3.0 million related to
provision-to-return adjustments.
Balance Sheet
-
Average total assets for the third quarter 2018 were $20.7 billion
compared to $20.6 billion for the linked quarter, and $20.3 billion
for the same period in 2017.
Summary of average loans and leases - QTD Average |
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
|
|
| |
| | | Q3 |
|
| Q2 |
|
| Q3 |
|
| CQ vs. |
|
| CQ vs. |
| | | 2018 | | | 2018 | | | 2017 | | | LQ | | | PY |
Commercial
| | |
$
|
4,717,530
| | |
$
|
4,478,829
| | |
$
|
4,539,302
| | |
$
|
238,701
| | | |
$
|
178,228
| |
Asset-based loans
| | | |
382,672
| | | |
336,710
| | | |
278,479
| | | |
45,962
| | | | |
104,193
| |
Factoring loans
| | | |
264,414
| | | |
231,035
| | | |
173,876
| | | |
33,379
| | | | |
90,538
| |
Commercial credit card
| | | |
199,730
| | | |
191,009
| | | |
174,892
| | | |
8,721
| | | | |
24,838
| |
Real estate - construction
| | | |
814,053
| | | |
823,169
| | | |
782,898
| | | |
(9,116
|
)
| | | |
31,155
| |
Real estate - commercial
| | | |
3,701,072
| | | |
3,711,417
| | | |
3,284,871
| | | |
(10,345
|
)
| | | |
416,201
| |
Real estate - residential
| | | |
688,097
| | | |
669,177
| | | |
603,865
| | | |
18,920
| | | | |
84,232
| |
Real estate - HELOC
| | | |
566,460
| | | |
596,025
| | | |
668,340
| | | |
(29,565
|
)
| | | |
(101,880
|
)
|
Consumer credit card
| | | |
222,223
| | | |
230,971
| | | |
239,529
| | | |
(8,748
|
)
| | | |
(17,306
|
)
|
Consumer other
| | | |
152,894
| | | |
153,427
| | | |
140,344
| | | |
(533
|
)
| | | |
12,550
| |
Leases
| | |
|
9,407
| | |
|
22,679
| | |
|
24,758
| | |
|
(13,272
|
)
| | |
|
(15,351
|
)
|
Total loans
| | |
$
|
11,718,552
| | |
$
|
11,444,448
| | |
$
|
10,911,154
| | |
$
|
274,104
|
| | |
$
|
807,398
|
|
| | | | | | | | | | | | | | | | | | | | | |
|
-
Average loans for the third quarter 2018 increased 2.4 percent on a
linked-quarter basis and 7.4 percent compared to third quarter 2017.
Summary of average securities - QTD Average |
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
|
|
| |
| | | Q3 |
|
| Q2 |
|
| Q3 |
|
| CQ vs. |
|
| CQ vs. |
| | | 2018 | | | 2018 | | | 2017 | | | LQ | | | PY |
Securities available for sale:
| | | | | | | | | | | | | | | | | | | | | | |
U.S. Treasury
| | |
$
|
38,044
| | |
$
|
37,982
| | |
$
|
47,216
| | |
$
|
62
| | | |
$
|
(9,172
|
)
|
U.S. Agencies
| | | |
198
| | | |
2,946
| | | |
22,743
| | | |
(2,748
|
)
| | | |
(22,545
|
)
|
Mortgage-backed
| | | |
3,590,703
| | | |
3,679,835
| | | |
3,564,974
| | | |
(89,132
|
)
| | | |
25,729
| |
State and political subdivisions
| | | |
2,290,906
| | | |
2,330,454
| | | |
2,536,281
| | | |
(39,548
|
)
| | | |
(245,375
|
)
|
Corporates
| | | |
718
| | | |
1,476
| | | |
21,848
| | | |
(758
|
)
| | | |
(21,130
|
)
|
Commercial Paper
| | |
|
—
| | |
|
7,138
| | |
|
—
| | |
|
(7,138
|
)
| | |
|
—
|
|
Total securities available for sale
| | |
$
|
5,920,569
| | |
$
|
6,059,831
| | |
$
|
6,193,062
| | |
$
|
(139,262
|
)
| | |
$
|
(272,493
|
)
|
Securities held to maturity:
| | | | | | | | | | | | | | | | | | | | | | |
State and political subdivisions
| | | |
1,205,007
| | | |
1,228,849
| | | |
1,283,258
| | | |
(23,842
|
)
| | | |
(78,251
|
)
|
Trading securities
| | | |
45,476
| | | |
45,538
| | | |
49,396
| | | |
(62
|
)
| | | |
(3,920
|
)
|
Other securities
| | |
|
65,962
| | |
|
66,345
| | |
|
64,294
| | |
|
(383
|
)
| | |
|
1,668
|
|
Total securities
| | |
$
|
7,237,014
| | |
$
|
7,400,563
| | |
$
|
7,590,010
| | |
$
|
(163,549
|
)
| | |
$
|
(352,996
|
)
|
| | | | | | | | | | | | | | | | | | | | | |
|
-
Average securities available for sale decreased 2.3 percent on a
linked-quarter basis and 4.4 percent compared to the third quarter of
2017 driven by the ongoing reinvestment of cash flows from such
securities to partially fund growth in the loan portfolio.
Summary of average deposits - QTD Average |
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
|
|
| |
|
| |
| | | Q3 | | | Q2 |
|
| Q3 |
|
| CQ vs. |
|
| CQ vs. |
| | | 2018 | | | 2018 | | | 2017 | | | LQ | | | PY |
Deposits:
| | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing demand
| | |
$
|
5,547,880
| | | |
$
|
5,666,364
| | | |
$
|
5,728,145
| | | |
$
|
(118,484
|
)
| | |
$
|
(180,265
|
)
|
Interest-bearing demand and savings
| | | |
9,954,008
| | | | |
9,768,015
| | | | |
8,789,217
| | | | |
185,993
| | | | |
1,164,791
| |
Time deposits
| | |
|
1,030,411
|
| | |
|
1,032,000
|
| | |
|
1,162,383
|
| | |
|
(1,589
|
)
| | |
|
(131,972
|
)
|
Total deposits
| | |
$
|
16,532,299
|
| | |
$
|
16,466,379
|
| | |
$
|
15,679,745
|
| | |
$
|
65,920
|
| | |
$
|
852,554
|
|
Noninterest bearing deposits as % of total
| | | |
33.56
|
%
| | | |
34.41
|
%
| | | |
36.53
|
%
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
-
Average deposits increased 5.4 percent compared to the third quarter
of 2017, in part driven by recent deposit campaigns.
Capital
Capital information |
|
| UMB Financial Corporation |
(unaudited, dollars in thousands, except per share data)
|
|
| |
| | | September 30, 2018 |
|
| June 30, 2018 |
|
| September 30, 2017 |
Total equity
| | |
$
|
2,203,464
| | | |
$
|
2,201,812
| | | |
$
|
2,101,543
| |
Book value per common share
| | | |
44.20
| | | | |
43.96
| | | | |
42.15
| |
| | | | | | | | | | | | | | |
|
Regulatory capital: | | | | | | | | | | | | | | | |
Common equity Tier 1 capital
| | |
$
|
2,175,700
| | | |
$
|
2,145,617
| | | |
$
|
1,893,842
| |
Tier 1 capital
| | | |
2,175,700
| | | | |
2,145,617
| | | | |
1,893,842
| |
Total capital
| | | |
2,348,731
| | | | |
2,315,483
| | | | |
2,062,928
| |
| | | | | | | | | | | | | | |
|
Regulatory capital ratios: | | | | | | | | | | | | | | | |
Common equity Tier 1 capital ratio
| | | |
13.47
|
%
| | | |
13.56
|
%
| | | |
12.18
|
%
|
Tier 1 risk-based capital ratio
| | | |
13.47
| | | | |
13.56
| | | | |
12.18
| |
Total risk-based capital ratio
| | | |
14.54
| | | | |
14.63
| | | | |
13.26
| |
Tier 1 leverage ratio
| | | |
10.58
| | | | |
10.50
| | | | |
9.43
| |
| | | | | | | | | | | | | | |
|
-
At September 30, 2018, the company’s risk-based 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 |
| | | 2018 | | | 2018 | | | 2018 | | | 2017 | | | 2017 |
Net charge-offs - Commercial loans
| | |
$
|
624
| | | |
$
|
6,137
| | | |
$
|
6,847
| | | |
$
|
2,248
| | | |
$
|
8,961
| |
Net charge-offs (recoveries) - Real estate loans
| | | |
408
| | | | |
1,035
| | | | |
1,512
| | | | |
(242
|
)
| | | |
238
| |
Net charge-offs - Consumer credit card loans
| | | |
1,632
| | | | |
1,786
| | | | |
1,849
| | | | |
1,612
| | | | |
1,635
| |
Net charge-offs - Consumer other loans
| | | |
82
| | | | |
46
| | | | |
94
| | | | |
167
| | | | |
74
| |
Net charge-offs - Total loans
| | | |
2,746
| | | | |
9,004
| | | | |
10,302
| | | | |
3,785
| | | | |
10,908
| |
Net loan charge-offs as a % of total average loans
| | | |
0.09
|
%
| | | |
0.32
|
%
| | | |
0.37
|
%
| | | |
0.14
|
%
| | | |
0.40
|
%
|
Loans over 90 days past due
| | |
$
|
1,927
| | | |
$
|
2,883
| | | |
$
|
5,650
| | | |
$
|
3,091
| | | |
$
|
2,088
| |
Loans over 90 days past due as a % of total loans
| | | |
0.02
|
%
| | | |
0.02
|
%
| | | |
0.05
|
%
| | | |
0.03
|
%
| | | |
0.02
|
%
|
Nonaccrual and restructured loans
| | |
$
|
50,568
| | | |
$
|
56,030
| | | |
$
|
67,604
| | | |
$
|
59,142
| | | |
$
|
54,231
| |
Nonaccrual and restructured loans as a % of total loans
| | | |
0.42
|
%
| | | |
0.48
|
%
| | | |
0.59
|
%
| | | |
0.52
|
%
| | | |
0.49
|
%
|
Provision for loan losses
| | |
$
|
5,750
| | | |
$
|
7,000
| | | |
$
|
10,000
| | | |
$
|
6,000
| | | |
$
|
11,500
| |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Dividend Declaration
At the company’s quarterly board meeting, the Board of Directors
declared a $0.30 per share quarterly cash dividend, an increase of 3.4
percent or $0.01 per share. The cash dividend will be payable on January
2, 2019, to shareholders of record at the close of business on December
10, 2018.
Accelerated Share Repurchase
The company has entered into an agreement with Bank of America Merrill
Lynch (BAML) to repurchase an aggregate of $50 million of the company’s
common stock through an accelerated share repurchase (ASR). The company
will receive an initial delivery of shares representing approximately 85
percent of the expected total to be repurchased. The final number of
shares repurchased and delivered under the ASR will be based on the
volume weighted average share price of the company’s common stock during
the term of the transaction. The final settlement of the transactions
under the ASR is expected to occur no later than the end of the first
quarter of 2019 and may be accelerated at the option of BAML. The ASR is
part of the company’s authorization to repurchase up to two million
shares of the company’s common stock, which was announced April 24, 2018.
Conference Call
The company plans to host a conference call to discuss its third quarter
2018 earnings results on Wednesday, October 24, 2018, 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 the
investor relations area of umbfinancial.com
or by using the following the link:
UMB
Financial 3Q 2018 Conference Call
A replay of the conference call may be heard through November 7, 2018,
by calling (toll-free) 877-344-7529 or (international) 412-317-0088. The
replay access code required for playback is 10124649. The call replay
may also be accessed at umbfinancial.com
by visiting the investor relations area.
Non-GAAP Financial Information
In this release, we provide information about net operating income from
continuing operations (net operating income), operating earnings per
share from continuing operations - diluted (operating EPS), operating
return on average equity (operating ROE), operating return on average
assets (operating ROA), operating noninterest expense, and operating
efficiency ratio, 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, and operating efficiency ratio – 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 divestiture costs 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 and divestitures, severance 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).
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, 2017, 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). 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, Mo. UMB offers personal banking,
commercial banking, healthcare services and institutional banking, which
includes services to mutual funds and alternative-investment entities
and registered investment advisors. UMB operates banking and wealth
management centers throughout Missouri, Illinois, Colorado, Kansas,
Oklahoma, Nebraska, Arizona and Texas. For more information, visit UMB.com,
UMB
Financial.com, UMB
Blog or follow us on Twitter at @UMBBank, UMB
Facebook and UMB
LinkedIn.
|
|
|
|
| |
Consolidated Balance Sheets |
|
|
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
| | | | | |
| | | | | September 30, |
| | | | | 2018 |
|
| 2017 |
ASSETS | | | | | | | | | | | | |
Loans
| | | | |
$
|
11,964,724
| | | |
$
|
10,997,028
| |
Allowance for loan losses
| | | | |
|
(101,302
|
)
| | |
|
(98,389
|
)
|
Net loans
| | | | | |
11,863,422
| | | | |
10,898,639
| |
Loans held for sale
| | | | | |
2,222
| | | | |
4,525
| |
Investment Securities:
| | | | | | | | | | | | |
Available for sale
| | | | | |
5,932,741
| | | | |
5,848,960
| |
Held to maturity
| | | | | |
1,199,114
| | | | |
1,276,252
| |
Trading securities
| | | | | |
81,159
| | | | |
60,660
| |
Other securities
| | | | |
|
65,252
|
| | |
|
63,543
| |
Total investment securities
| | | | | |
7,278,266
| | | | |
7,249,415
| |
Federal funds sold and resell agreements
| | | | | |
206,412
| | | | |
244,436
| |
Interest-bearing due from banks
| | | | | |
668,990
| | | | |
221,856
| |
Cash and due from banks
| | | | | |
348,700
| | | | |
366,169
| |
Premises and equipment, net
| | | | | |
277,123
| | | | |
277,454
| |
Accrued income
| | | | | |
104,012
| | | | |
103,076
| |
Goodwill
| | | | | |
180,867
| | | | |
180,867
| |
Other intangibles, net
| | | | | |
16,335
| | | | |
23,477
| |
Other assets
| | | | | |
516,011
| | | | |
655,846
| |
Discontinued assets - goodwill and other intangibles, net
| | | | |
|
—
|
| | |
|
53,743
| |
Total assets
| | | | |
$
|
21,462,360
|
| | |
$
|
20,279,503
| |
| | | | | | | | | | | |
|
LIABILITIES | | | | | | | | | | | | |
Deposits:
| | | | | | | | | | | | |
Noninterest-bearing demand
| | | | |
$
|
5,757,353
| | | |
$
|
5,812,117
| |
Interest-bearing demand and savings
| | | | | |
10,938,839
| | | | |
9,063,079
| |
Time deposits under $250,000
| | | | | |
594,705
| | | | |
576,035
| |
Time deposits of $250,000 or more
| | | | |
|
445,807
|
| | |
|
548,373
| |
Total deposits
| | | | | |
17,736,704
| | | | |
15,999,604
| |
Federal funds purchased and repurchase agreements
| | | | | |
1,192,985
| | | | |
1,856,837
| |
Long-term debt
| | | | | |
78,523
| | | | |
76,071
| |
Accrued expenses and taxes
| | | | | |
171,548
| | | | |
193,978
| |
Other liabilities
| | | | |
|
79,136
|
| | |
|
51,470
| |
Total liabilities
| | | | |
|
19,258,896
|
| | |
|
18,177,960
| |
| | | | | | | | | | | |
|
SHAREHOLDERS' EQUITY | | | | | | | | | | | | |
Common stock
| | | | | |
55,057
| | | | |
55,057
| |
Capital surplus
| | | | | |
1,054,801
| | | | |
1,042,022
| |
Retained earnings
| | | | | |
1,477,732
| | | | |
1,239,865
| |
Accumulated other comprehensive loss, net
| | | | | |
(155,641
|
)
| | | |
(22,668
|
)
|
Treasury stock
| | | | |
|
(228,485
|
)
| | |
|
(212,733
|
)
|
Total shareholders' equity
| | | | |
|
2,203,464
|
| | |
|
2,101,543
| |
Total liabilities and shareholders' equity
| | | | |
$
|
21,462,360
|
| | |
$
|
20,279,503
| |
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
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, |
| | | 2018 |
|
| 2017 | | | 2018 |
|
| 2017 |
INTEREST INCOME | | | | | | | | | | | | | | | | | | | |
Loans
| | |
$
|
143,947
| | |
$
|
119,132
| | | |
$
|
405,231
| | | |
$
|
338,416
| |
Securities:
| | | | | | | | | | | | | | | | | | | |
Taxable interest
| | | |
20,263
| | | |
17,720
| | | | |
60,566
| | | | |
55,351
| |
Tax-exempt interest
| | |
|
18,281
| | |
|
18,893
|
| | |
|
55,274
|
| | |
|
54,372
|
|
Total securities income
| | | |
38,544
| | | |
36,613
| | | | |
115,840
| | | | |
109,723
| |
Federal funds and resell agreements
| | | |
665
| | | |
1,008
| | | | |
2,455
| | | | |
2,638
| |
Interest-bearing due from banks
| | | |
1,513
| | | |
753
| | | | |
4,149
| | | | |
1,884
| |
Trading securities
| | |
|
428
| | |
|
389
|
| | |
|
1,567
|
| | |
|
1,135
|
|
Total interest income
| | |
|
185,097
| | |
|
157,895
|
| | |
|
529,242
|
| | |
|
453,796
|
|
INTEREST EXPENSE | | | | | | | | | | | | | | | | | | | |
Deposits
| | | |
25,792
| | | |
10,181
| | | | |
57,961
| | | | |
23,982
| |
Federal funds and repurchase agreements
| | | |
7,524
| | | |
5,811
| | | | |
18,922
| | | | |
14,274
| |
Other
| | |
|
1,291
| | |
|
1,045
|
| | |
|
3,721
|
| | |
|
2,973
|
|
Total interest expense
| | |
|
34,607
| | |
|
17,037
|
| | |
|
80,604
|
| | |
|
41,229
|
|
Net interest income
| | | |
150,490
| | | |
140,858
| | | | |
448,638
| | | | |
412,567
| |
Provision for loan losses
| | |
|
5,750
| | |
|
11,500
|
| | |
|
22,750
|
| | |
|
35,000
|
|
Net interest income after provision for loan losses
| | |
|
144,740
| | |
|
129,358
|
| | |
|
425,888
|
| | |
|
377,567
|
|
NONINTEREST INCOME | | | | | | | | | | | | | | | | | | | |
Trust and securities processing
| | | |
43,425
| | | |
45,060
| | | | |
130,272
| | | | |
132,412
| |
Trading and investment banking
| | | |
3,711
| | | |
4,453
| | | | |
12,465
| | | | |
18,168
| |
Service charges on deposit accounts
| | | |
20,927
| | | |
21,510
| | | | |
63,554
| | | | |
66,316
| |
Insurance fees and commissions
| | | |
339
| | | |
425
| | | | |
980
| | | | |
1,584
| |
Brokerage fees
| | | |
6,402
| | | |
5,815
| | | | |
19,046
| | | | |
17,081
| |
Bankcard fees
| | | |
16,838
| | | |
17,427
| | | | |
52,145
| | | | |
55,413
| |
Gains on sales of securities available for sale, net
| | | |
211
| | | |
2,390
| | | | |
578
| | | | |
4,138
| |
Other
| | |
|
9,032
| | |
|
7,226
|
| | |
|
27,659
|
| | |
|
22,417
|
|
Total noninterest income
| | |
|
100,885
| | |
|
104,306
|
| | |
|
306,699
|
| | |
|
317,529
|
|
NONINTEREST EXPENSE | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits
| | | |
102,956
| | | |
99,749
| | | | |
315,099
| | | | |
306,174
| |
Occupancy, net
| | | |
11,628
| | | |
11,285
| | | | |
33,394
| | | | |
33,314
| |
Equipment
| | | |
18,533
| | | |
17,880
| | | | |
56,201
| | | | |
53,318
| |
Supplies and services
| | | |
4,528
| | | |
4,076
| | | | |
12,434
| | | | |
12,962
| |
Marketing and business development
| | | |
6,671
| | | |
5,056
| | | | |
17,889
| | | | |
14,929
| |
Processing fees
| | | |
12,331
| | | |
11,151
| | | | |
35,029
| | | | |
31,093
| |
Legal and consulting
| | | |
8,470
| | | |
5,844
| | | | |
18,774
| | | | |
17,361
| |
Bankcard
| | | |
4,407
| | | |
5,130
| | | | |
13,198
| | | | |
15,066
| |
Amortization of other intangible assets
| | | |
1,385
| | | |
1,715
| | | | |
4,432
| | | | |
5,685
| |
Regulatory fees
| | | |
3,337
| | | |
3,798
| | | | |
10,014
| | | | |
11,702
| |
Other
| | |
|
6,139
| | |
|
6,137
|
| | |
|
17,015
|
| | |
|
20,966
|
|
Total noninterest expense
| | |
|
180,385
| | |
|
171,821
|
| | |
|
533,479
|
| | |
|
522,570
|
|
Income before income taxes
| | | |
65,240
| | | |
61,843
| | | | |
199,108
| | | | |
172,526
| |
Income tax expense
| | |
|
7,391
| | |
|
12,971
|
| | |
|
28,302
|
| | |
|
36,907
|
|
Income from continuing operations | | |
|
57,849
| | |
|
48,872
|
| | |
|
170,806
|
| | |
|
135,619
|
|
Discontinued Operations | | | | | | | | | | | | | | | | | | | |
Loss from discontinued operations before income taxes
| | | |
—
| | | |
(1,030
|
)
| | | |
(917
|
)
| | | |
(722
|
)
|
Income tax benefit
| | |
|
—
| | |
|
(300
|
)
| | |
|
(170
|
)
| | |
|
(247
|
)
|
Loss from discontinued operations | | |
|
—
| | |
|
(730
|
)
| | |
|
(747
|
)
| | |
|
(475
|
)
|
NET INCOME | | |
$
|
57,849
| | |
$
|
48,142
|
| | |
$
|
170,059
|
| | |
$
|
135,144
|
|
| | | | | | | | | | | | | | | | | | |
|
PER SHARE DATA | | | | | | | | | | | | | | | | | | | |
Basic:
| | | | | | | | | | | | | | | | | | | |
Income from continuing operations
| | |
$
|
1.17
| | |
$
|
0.99
| | | |
$
|
3.45
| | | |
$
|
2.76
| |
Loss from discontinued operations
| | |
|
—
| | |
|
(0.01
|
)
| | |
|
(0.01
|
)
| | |
|
(0.01
|
)
|
Net income – basic
| | | |
1.17
| | | |
0.98
| | | | |
3.44
| | | | |
2.75
| |
Diluted:
| | | | | | | | | | | | | | | | | | | |
Income from continuing operations
| | | |
1.16
| | | |
0.98
| | | | |
3.41
| | | | |
2.72
| |
Loss from discontinued operations
| | |
|
—
| | |
|
(0.01
|
)
| | |
|
(0.01
|
)
| | |
|
(0.01
|
)
|
Net income - diluted
| | | |
1.16
| | | |
0.97
| | | | |
3.40
| | | | |
2.71
| |
Dividends
| | | |
0.290
| | | |
0.255
| | | | |
0.870
| | | | |
0.765
| |
Weighted average shares outstanding - basic
| | | |
49,473,157
| | | |
49,283,322
| | | | |
49,482,087
| | | | |
49,221,629
| |
Weighted average shares outstanding - diluted
| | | |
49,912,084
| | | |
49,833,141
| | | | |
49,952,984
| | | | |
49,838,619
| |
| | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | |
|
Consolidated Statements of Comprehensive Income |
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
|
|
| |
| | | Three Months Ended |
|
| Nine Months Ended |
| | | September 30, | | | September 30, |
| | | 2018 |
|
| 2017 | | | 2018 |
|
| 2017 |
Net income
| | |
$
|
57,849
| | | |
$
|
48,142
| | | |
$
|
170,059
| | | |
$
|
135,144
| |
Other comprehensive (loss) income, net of tax:
| | | | | | | | | | | | | | | | | | | | |
Unrealized gains and losses on debt securities:
| | | | | | | | | | | | | | | | | | | | |
Change in unrealized holding gains and losses, net
| | | |
(36,331
|
)
| | | |
5,064
| | | | |
(133,013
|
)
| | | |
62,646
| |
Less: Reclassification adjustment for gains included in net income
| | |
|
(211
|
)
| | |
|
(2,390
|
)
| | |
|
(578
|
)
| | |
|
(4,138
|
)
|
Change in unrealized gains and losses on debt securities during the
period
| | | |
(36,542
|
)
| | | |
2,674
| | | | |
(133,591
|
)
| | | |
58,508
| |
Change in unrealized gains and losses on derivative hedges
| | | |
1,162
| | | | |
(169
|
)
| | | |
4,274
| | | | |
(1,080
|
)
|
Income tax benefit (expense)
| | |
|
8,698
|
| | |
|
(1,548
|
)
| | |
|
32,250
|
| | |
|
(22,554
|
)
|
Other comprehensive (loss) income before reclassifications
| | | |
(26,682
|
)
| | | |
957
| | | | |
(97,067
|
)
| | | |
34,874
| |
Amounts reclassified from accumulated other comprehensive income
| | |
|
—
|
| | |
|
—
|
| | |
|
(13,049
|
)
| | |
|
—
|
|
Net current-period other comprehensive (loss) income
| | |
|
(26,682
|
)
| | |
|
957
|
| | |
|
(110,116
|
)
| | |
|
34,874
|
|
Comprehensive income
| | |
$
|
31,167
|
| | |
$
|
49,099
|
| | |
$
|
59,943
|
| | |
$
|
170,018
|
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
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 |
|
| Treasury Stock |
|
| Total |
Balance - January 1, 2017
| | |
$
|
55,057
| | | |
$
|
1,033,419
| | | |
$
|
1,142,887
| | | |
$
|
(57,542
|
)
| | |
$
|
(211,437
|
)
| | |
$
|
1,962,384
| |
Total comprehensive income
| | | |
—
| | | | |
—
| | | | |
135,144
| | | | |
34,874
| | | | |
—
| | | | |
170,018
| |
Cash dividends ($0.765 per share)
| | | |
—
| | | | |
—
| | | | |
(38,166
|
)
| | | |
—
| | | | |
—
| | | | |
(38,166
|
)
|
Purchase of treasury stock
| | | |
—
| | | | |
—
| | | | |
—
| | | | |
—
| | | | |
(14,369
|
)
| | | |
(14,369
|
)
|
Issuance of equity awards
| | | |
—
| | | | |
(3,364
|
)
| | | |
—
| | | | |
—
| | | | |
3,835
| | | | |
471
| |
Recognition of equity-based compensation
| | | |
—
| | | | |
9,576
| | | | |
—
| | | | |
—
| | | | |
—
| | | | |
9,576
| |
Sale of treasury stock
| | | |
—
| | | | |
468
| | | | |
—
| | | | |
—
| | | | |
381
| | | | |
849
| |
Exercise of stock options
| | |
|
—
|
| | |
|
1,923
|
| | |
|
—
|
| | |
|
—
|
| | |
|
8,857
|
| | |
|
10,780
|
|
Balance - September 30, 2017
| | |
$
|
55,057
|
| | |
$
|
1,042,022
|
| | |
$
|
1,239,865
|
| | |
$
|
(22,668
|
)
| | |
$
|
(212,733
|
)
| | |
$
|
2,101,543
|
|
Balance - January 1, 2018
| | |
$
|
55,057
| | | |
$
|
1,046,095
| | | |
$
|
1,338,110
| | | |
$
|
(45,525
|
)
| | |
$
|
(212,206
|
)
| | |
$
|
2,181,531
| |
Total comprehensive income (loss)
| | | |
—
| | | | |
—
| | | | |
170,059
| | | | |
(110,116
|
)
| | | |
—
| | | | |
59,943
| |
Reclassification of certain tax effects
| | | |
—
| | | | |
—
| | | | |
12,917
| | | | |
—
| | | | |
—
| | | | |
12,917
| |
Cash dividends ($0.870 per share)
| | | |
—
| | | | |
—
| | | | |
(43,499
|
)
| | | |
—
| | | | |
—
| | | | |
(43,499
|
)
|
Purchase of treasury stock
| | | |
—
| | | | |
—
| | | | |
—
| | | | |
—
| | | | |
(26,417
|
)
| | | |
(26,417
|
)
|
Issuance of equity awards
| | | |
—
| | | | |
(2,004
|
)
| | | |
—
| | | | |
—
| | | | |
2,499
| | | | |
495
| |
Recognition of equity-based compensation
| | | |
—
| | | | |
8,469
| | | | |
—
| | | | |
—
| | | | |
—
| | | | |
8,469
| |
Sale of treasury stock
| | | |
—
| | | | |
409
| | | | |
—
| | | | |
—
| | | | |
406
| | | | |
815
| |
Exercise of stock options
| | | |
—
| | | | |
1,832
| | | | |
—
| | | | |
—
| | | | |
7,233
| | | | |
9,065
| |
Cumulative effect adjustments
| | |
|
—
|
| | |
|
—
|
| | |
|
145
|
| | |
|
—
|
| | |
|
—
|
| | |
|
145
|
|
Balance - September 30, 2018
| | |
$
|
55,057
|
| | |
$
|
1,054,801
|
| | |
$
|
1,477,732
|
| | |
$
|
(155,641
|
)
| | |
$
|
(228,485
|
)
| | |
$
|
2,203,464
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Average Balances / Yields and Rates |
|
| UMB Financial Corporation |
(tax - equivalent basis)
|
|
| |
(unaudited, dollars in thousands)
| | | |
| | | Three Months Ended September 30, |
| | | 2018 |
|
| 2017 |
| | | Average |
|
| Average | | | Average |
|
| Average |
| | | Balance | | | Yield/Rate | | | Balance | | | Yield/Rate |
Assets | | | | | | | | | | | | | | | | | | |
Loans, net of unearned interest
| | |
$
|
11,718,552
| | | |
4.87
|
%
| | |
$
|
10,911,154
| | | |
4.33
|
%
|
Securities:
| | | | | | | | | | | | | | | | | | |
Taxable
| | | |
3,760,332
| | | |
2.14
| | | | |
3,794,074
| | | |
1.85
| |
Tax-exempt
| | |
|
3,431,206
|
| | |
2.67
|
| | |
|
3,746,540
|
| | |
3.06
|
|
Total securities
| | | |
7,191,538
| | | |
2.39
| | | | |
7,540,614
| | | |
2.46
| |
Federal funds and resell agreements
| | | |
101,223
| | | |
2.61
| | | | |
190,036
| | | |
2.10
| |
Interest bearing due from banks
| | | |
322,882
| | | |
1.86
| | | | |
254,702
| | | |
1.17
| |
Trading securities
| | |
|
45,476
|
| | |
4.35
|
| | |
|
49,396
|
| | |
3.95
|
|
Total earning assets
| | | |
19,379,671
| | | |
3.89
| | | | |
18,945,902
| | | |
3.52
| |
Allowance for loan losses
| | | |
(99,289
|
)
| | | | | | | |
(99,954
|
)
| | | | |
Other assets
| | |
|
1,469,283
|
| | | | | | |
|
1,467,273
|
| | | | |
Total assets
| | |
$
|
20,749,665
|
| | | | | | |
$
|
20,313,221
|
| | | | |
| | | | | | | | | | | | | | | | | |
|
Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits
| | |
$
|
10,984,419
| | | |
0.93
|
%
| | |
$
|
9,951,600
| | | |
0.41
|
%
|
Federal funds and repurchase agreements
| | | |
1,733,884
| | | |
1.72
| | | | |
2,234,666
| | | |
1.03
| |
Borrowed funds
| | |
|
78,764
| | | |
6.50
|
| | |
|
76,159
|
| | |
5.44
|
|
Total interest-bearing liabilities
| | | |
12,797,067
| | | |
1.07
| | | | |
12,262,425
| | | |
0.55
| |
Noninterest-bearing demand deposits
| | | |
5,547,880
| | | | | | | | |
5,728,145
| | | | | |
Other liabilities
| | | |
179,775
| | | | | | | | |
207,417
| | | | | |
Shareholders' equity
| | |
|
2,224,943
|
| | | | | | |
|
2,115,234
|
| | | | |
Total liabilities and shareholders' equity
| | |
$
|
20,749,665
|
| | | | | | |
$
|
20,313,221
|
| | | | |
Net interest spread
| | | | | | | |
2.82
|
%
| | | | | | | |
2.97
|
%
|
Net interest margin
| | | | | | | |
3.18
| | | | | | | | |
3.16
| |
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
Average Balances / Yields and Rates |
|
| UMB Financial Corporation |
(tax - equivalent basis)
|
|
| |
(unaudited, dollars in thousands)
| | | |
| | | Nine Months Ended September 30, |
| | | 2018 |
|
| 2017 |
| | | Average |
|
| Average | | | Average |
|
| Average |
| | | Balance | | | Yield/Rate | | | Balance | | | Yield/Rate |
Assets | | | | | | | | | | | | | | | | | | |
Loans, net of unearned interest
| | |
$
|
11,484,757
| | | |
4.72
|
%
| | |
$
|
10,762,401
| | | |
4.20
|
%
|
Securities:
| | | | | | | | | | | | | | | | | | |
Taxable
| | | |
3,830,164
| | | |
2.11
| | | | |
3,995,441
| | | |
1.85
| |
Tax-exempt
| | |
|
3,519,060
|
| | |
2.66
|
| | |
|
3,625,727
|
| | |
3.07
|
|
Total securities
| | | |
7,349,224
| | | |
2.37
| | | | |
7,621,168
| | | |
2.43
| |
Federal funds and resell agreements
| | | |
122,961
| | | |
2.67
| | | | |
192,817
| | | |
1.83
| |
Interest bearing due from banks
| | | |
336,144
| | | |
1.65
| | | | |
271,799
| | | |
0.93
| |
Trading securities
| | |
|
45,206
|
| | |
5.21
|
| | |
|
61,604
|
| | |
3.06
|
|
Total earning assets
| | | |
19,338,292
| | | |
3.76
| | | | |
18,909,789
| | | |
3.42
| |
Allowance for loan losses
| | | |
(100,856
|
)
| | | | | | | |
(96,181
|
)
| | | | |
Other assets
| | |
|
1,467,036
|
| | | | | | |
|
1,474,177
|
| | | | |
Total assets
| | |
$
|
20,704,472
|
| | | | | | |
$
|
20,287,785
|
| | | | |
| | | | | | | | | | | | | | | | | |
|
Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits
| | |
$
|
10,831,775
| | | |
0.72
|
%
| | |
$
|
9,777,717
| | | |
0.33
|
%
|
Federal funds and repurchase agreements
| | | |
1,678,108
| | | |
1.51
| | | | |
2,321,144
| | | |
0.82
| |
Borrowed funds
| | |
|
78,770
|
| | |
6.32
|
| | |
|
76,192
|
| | |
5.22
|
|
Total interest-bearing liabilities
| | | |
12,588,653
| | | |
0.86
| | | | |
12,175,053
| | | |
0.45
| |
Noninterest-bearing demand deposits
| | | |
5,753,237
| | | | | | | | |
5,853,905
| | | | | |
Other liabilities
| | | |
172,560
| | | | | | | | |
203,037
| | | | | |
Shareholders' equity
| | |
|
2,190,022
|
| | | | | | |
|
2,055,790
|
| | | | |
Total liabilities and shareholders' equity
| | |
$
|
20,704,472
|
| | | | | | |
$
|
20,287,785
|
| | | | |
Net interest spread
| | | | | | | |
2.90
|
%
| | | | | | | |
2.97
|
%
|
Net interest margin
| | | | | | | |
3.20
| | | | | | | | |
3.12
| |
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
Business Segment Information |
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
|
|
| |
| | | Three Months Ended September 30, 2018 |
| | | Commercial Banking |
|
| Institutional Banking |
|
| Personal Banking |
|
| Healthcare Services |
|
| Total |
Net interest income
| | |
$
|
94,633
| | |
$
|
15,293
| | |
$
|
31,145
| | |
$
|
9,419
| | |
$
|
150,490
|
Provision for loan losses
| | | |
4,062
| | | |
355
| | | |
1,333
| | | |
—
| | | |
5,750
|
Noninterest income
| | | |
20,831
| | | |
43,169
| | | |
28,266
| | | |
8,619
| | | |
100,885
|
Noninterest expense
| | |
|
64,083
| | |
|
47,081
| | |
|
56,648
| | |
|
12,573
| | |
|
180,385
|
Income before taxes
| | | |
47,319
| | | |
11,026
| | | |
1,430
| | | |
5,465
| | | |
65,240
|
Income tax expense
| | |
|
5,381
| | |
|
1,241
| | |
|
160
| | |
|
609
| | |
|
7,391
|
Income from continuing operations
| | |
$
|
41,938
| | |
$
|
9,785
| | |
$
|
1,270
| | |
$
|
4,856
| | |
$
|
57,849
|
Average assets
| | |
$
|
9,838,000
| | |
$
|
3,920,000
| | |
$
|
4,791,000
| | |
$
|
2,201,000
| | |
$
|
20,750,000
|
| | | | | | | | | | | | | | | | | | | |
|
| | | Three Months Ended September 30, 2017 |
| | | Commercial Banking | | | Institutional Banking | | | Personal Banking | | | Healthcare Services | | | Total |
Net interest income
| | |
$
|
89,386
| | |
$
|
12,763
| | |
$
|
30,675
| | |
$
|
8,034
| | |
$
|
140,858
|
Provision for loan losses
| | | |
9,565
| | | |
313
| | | |
1,622
| | | |
—
| | | |
11,500
|
Noninterest income
| | | |
21,094
| | | |
46,405
| | | |
28,261
| | | |
8,546
| | | |
104,306
|
Noninterest expense
| | |
|
60,620
| | |
|
44,727
| | |
|
56,127
| | |
|
10,347
| | |
|
171,821
|
Income before taxes
| | | |
40,295
| | | |
14,128
| | | |
1,187
| | | |
6,233
| | | |
61,843
|
Income tax expense
| | |
|
8,454
| | |
|
2,965
| | |
|
244
| | |
|
1,308
| | |
|
12,971
|
Income from continuing operations
| | |
$
|
31,841
| | |
$
|
11,163
| | |
$
|
943
| | |
$
|
4,925
| | |
$
|
48,872
|
Average assets
| | |
$
|
9,710,000
| | |
$
|
3,582,000
| | |
$
|
5,072,000
| | |
$
|
1,949,000
| | | |
20,313,000
|
| | | | | | | | | | | | | | | | | | | |
|
| | | Nine Months Ended September 30, 2018 |
| | | Commercial Banking | | | Institutional Banking | | | Personal Banking | | | Healthcare Services | | | Total |
Net interest income
| | |
$
|
279,521
| | |
$
|
47,351
| | |
$
|
93,220
| | |
$
|
28,546
| | |
$
|
448,638
|
Provision for loan losses
| | | |
17,179
| | | |
1,027
| | | |
4,544
| | | |
—
| | | |
22,750
|
Noninterest income
| | | |
60,606
| | | |
131,999
| | | |
87,700
| | | |
26,394
| | | |
306,699
|
Noninterest expense
| | |
|
189,096
| | |
|
141,499
| | |
|
165,945
| | |
|
36,939
| | |
|
533,479
|
Income before taxes
| | | |
133,852
| | | |
36,824
| | | |
10,431
| | | |
18,001
| | | |
199,108
|
Income tax expense
| | |
|
19,032
| | |
|
5,227
| | |
|
1,484
| | |
|
2,559
| | |
|
28,302
|
Income from continuing operations
| | |
$
|
114,820
| | |
$
|
31,597
| | |
$
|
8,947
| | |
$
|
15,442
| | |
$
|
170,806
|
Average assets
| | |
$
|
9,788,000
| | |
$
|
3,895,000
| | |
$
|
4,853,000
| | |
$
|
2,168,000
| | | |
20,704,000
|
| | | | | | | | | | | | | | | | | | | |
|
| | | Nine Months Ended September 30, 2017 |
| | | Commercial Banking | | | Institutional Banking | | | Personal Banking | | | Healthcare Services | | | Total |
Net interest income
| | |
$
|
261,497
| | |
$
|
36,731
| | |
$
|
91,484
| | |
$
|
22,855
| | |
$
|
412,567
|
Provision for loan losses
| | | |
28,500
| | | |
1,101
| | | |
5,399
| | | |
—
| | | |
35,000
|
Noninterest income
| | | |
62,014
| | | |
140,232
| | | |
87,932
| | | |
27,351
| | | |
317,529
|
Noninterest expense
| | |
|
185,825
| | |
|
136,086
| | |
|
168,760
| | |
|
31,899
| | |
|
522,570
|
Income before taxes
| | | |
109,186
| | | |
39,776
| | | |
5,257
| | | |
18,307
| | | |
172,526
|
Income tax expense
| | |
|
23,297
| | |
|
8,437
| | |
|
1,273
| | |
|
3,900
| | |
|
36,907
|
Income from continuing operations
| | |
$
|
85,889
| | |
$
|
31,339
| | |
$
|
3,984
| | |
$
|
14,407
| | |
$
|
135,619
|
Average assets
| | |
$
|
9,723,000
| | |
$
|
3,457,000
| | |
$
|
5,233,000
| | |
$
|
1,875,000
| | | |
20,288,000
|
| | | | | | | | | | | | | | | | | | | |
|
The company has strategically aligned its operations into the
following four reportable segments: Commercial Banking, Institutional
Banking, Personal Banking, and Healthcare Services.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 two business
segments: Bank and Asset Servicing. 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, 2018.
Non-GAAP Financial Measures |
|
| UMB Financial Corporation |
Net operating income Non-GAAP reconciliations: |
|
| |
(unaudited, dollars in thousands except per share data)
| | | |
| | | Three Months Ended September 30, |
|
| Nine Months Ended September 30, |
| | | 2018 |
|
| 2017 | | | 2018 |
|
| 2017 |
Income from continuing operations (GAAP)
| | |
$
|
57,849
| | | |
$
|
48,872
| | | | |
170,806
| | | |
$
|
135,619
| |
Adjustments:
| | | | | | | | | | | | | | | | |
Acquisition and divestiture expense (income)
| | | |
3
| | | | |
5
| | | | |
(3
|
)
| | | |
22
| |
Severance expense
| | | |
221
| | | | |
80
| | | | |
3,035
| | | | |
815
| |
Tax-impact of adjustments (i)
| | |
|
(49
|
)
| | |
|
(30
|
)
| | |
|
(673
|
)
| | |
|
(301
|
)
|
Total Non-GAAP adjustments (net of tax)
| | |
|
175
|
| | |
|
55
|
| | |
|
2,359
|
| | |
|
536
|
|
Net operating income from continuing operations (Non-GAAP)
| | |
$
|
58,024
|
| | |
$
|
48,927
|
| | |
$
|
173,165
|
| | |
$
|
136,155
|
|
| | | | | | | | | | | | | | | |
|
Earnings per share from continuing operations - diluted (GAAP)
| | |
$
|
1.16
| | | |
$
|
0.98
| | | |
$
|
3.41
| | | |
$
|
2.72
| |
Acquisition and divestiture expense (income)
| | | |
—
| | | | |
—
| | | | |
—
| | | | |
—
| |
Severance expense
| | | |
—
| | | | |
—
| | | | |
0.07
| | | | |
0.02
| |
Tax-impact of adjustments (i)
| | |
|
—
|
| | |
|
—
|
| | |
|
(0.01
|
)
| | |
|
(0.01
|
)
|
Operating earnings per share from continuing operations - diluted
(Non-GAAP)
| | |
$
|
1.16
|
| | |
$
|
0.98
|
| | |
$
|
3.47
|
| | |
$
|
2.73
|
|
| | | | | | | | | | | | | | | |
|
GAAP | | | | | | | | | | | | | | | | |
Return on average assets
| | | |
1.11
|
%
| | | |
0.95
|
%
| | | |
1.10
|
%
| | | |
0.89
|
%
|
Return on average equity
| | | |
10.32
| | | | |
9.17
| | | | |
10.43
| | | | |
8.82
| |
| | | | | | | | | | | | | | | |
|
Non-GAAP | | | | | | | | | | | | | | | | |
Operating return on average assets
| | | |
1.11
|
%
| | | |
0.96
|
%
| | | |
1.12
|
%
| | | |
0.90
|
%
|
Operating return on average equity
| | | |
10.35
| | | | |
9.18
| | | | |
10.57
| | | | |
8.85
| |
(i)
|
|
Calculated using the company’s marginal tax rate of 22.2% for
periods beginning after December 31, 2017 as a result of the Tax
Cuts and Jobs Act. The prior periods were calculated using the
company’s marginal tax rate of 36.0%.
|
| |
|
| |
|
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, |
| | | 2018 |
|
| 2017 | | | 2018 |
|
| 2017 |
Noninterest expense
| | |
$
|
180,385
| | | |
$
|
171,821
| | | |
$
|
533,479
| | | |
$
|
522,570
| |
Adjustments to arrive at operating noninterest expense (pre-tax):
| | | | | | | | | | | |
| | | | |
| |
Acquisition and divestiture expense (income)
| | | |
3
| | | | |
5
| | | | |
(3
|
)
| | | |
22
| |
Severance expense
| | |
|
221
|
| | |
|
80
|
| | |
|
3,035
|
| | |
|
815
|
|
Total Non-GAAP adjustments (pre-tax)
| | |
|
224
|
| | |
|
85
|
| | |
|
3,032
|
| | |
|
837
|
|
Operating noninterest expense (Non-GAAP)
| | |
$
|
180,161
|
| | |
$
|
171,736
|
| | |
$
|
530,447
|
| | |
$
|
521,733
|
|
| | | | | | | |
| | | | | | | | | | | |
Noninterest expense
| | |
$
|
180,385
| | | |
$
|
171,821
| | | |
$
|
533,479
| | | |
$
|
522,570
| |
Less: Amortization of other intangibles
| | |
|
1,385
|
| | |
|
1,715
|
| | |
|
4,432
|
| | |
|
5,685
|
|
Noninterest expense, net of amortization of other intangibles
(Non-GAAP) (numerator A)
| | |
$
|
179,000
|
| | |
$
|
170,106
|
| | |
$
|
529,047
|
| | |
$
|
516,885
|
|
| | | |
| | | | | | | | | | | | | | | | |
Operating noninterest expense
| | |
$
|
180,161
| | | |
$
|
171,736
| | | |
$
|
530,447
| | | |
$
|
521,733
| |
Less: Amortization of other intangibles
| | |
|
1,385
|
| | |
|
1,715
|
| | |
|
4,432
|
| | |
|
5,685
|
|
Operating expense, net of amortization of other intangibles
(Non-GAAP) (numerator B)
| | |
$
|
178,776
|
| | |
$
|
170,021
|
| | |
$
|
526,015
|
| | |
$
|
516,048
|
|
| | | | | | | | | | | | | | | | | | | |
|
Net interest income
| | |
$
|
150,490
| | | |
$
|
140,858
| | | |
$
|
448,638
| | | |
$
|
412,567
| |
Noninterest income
| | | |
100,885
| | | | |
104,306
| | | | |
306,699
| | | | |
317,529
| |
Less: Gains on sales of securities available for sale, net
| | |
|
211
|
| | |
|
2,390
|
| | |
|
578
|
| | |
|
4,138
|
|
Total Non-GAAP Revenue (denominator A)
| | |
$
|
251,164
|
| | |
$
|
242,774
|
| | |
$
|
754,759
|
| | |
$
|
725,958
|
|
| | | | | | | | | | | | | | | | | | | |
|
Efficiency ratio (numerator A/denominator A)
| | | |
71.27
|
%
| | | |
70.07
|
%
| | | |
70.09
|
%
| | | |
71.20
|
%
|
Operating efficiency ratio (Non-GAAP) (numerator B/denominator A)
| | | |
71.18
| | | | |
70.03
| | | | |
69.69
| | | | |
71.09
| |
View source version on businesswire.com: https://www.businesswire.com/news/home/20181023005812/en/
Contacts:
UMB Financial Corporation
Media Contact:
Stephanie
Hague, 816-860-5088
or
Investor Relations Contact:
Kay
Gregory, 816-860-7106
Source: UMB Financial Corporation
© 2024 Canjex Publishing Ltd. All rights reserved.