KANSAS CITY, Mo. -- (Business Wire)
UMB Financial Corporation (Nasdaq: UMBF), a diversified financial
holding company, announced earnings for the third quarter 2016 of $41.9
million or $0.85 per diluted share, compared to $37.5 million or $0.76
per diluted share in the second quarter 2016 (linked quarter) and $22.5
million or $0.46 per diluted share during the third quarter 2015.
Year-to-date earnings as of September 30, 2016, were $115.9 million or
$2.36 per diluted share, compared to $86.4 million or $1.84 per diluted
share for the nine month period ended September 30, 2015.
Net operating income, a non-GAAP financial measure which is reconciled
to the nearest comparable GAAP measure later in this release, was $43.0
million or $0.87 per diluted share for the third quarter 2016, compared
to $39.5 million or $0.80 per diluted share for the linked quarter and
$26.1 million or $0.53 per diluted share for the third quarter 2015.
Year-to-date net operating income as of September 30, 2016, was $121.2
million or $2.46 per diluted share, compared to $89.1 million or $1.89
per diluted share for the nine month period ended September 30, 2015.
|
| | | |
| | | |
| | | |
Summary of financial results |
|
|
|
|
|
| UMB Financial Corporation |
(unaudited, dollars in thousands, except per share data)
|
| | | Q3 | | | | Q2 | | | | Q3 | |
| | | 2016 |
|
|
| 2016 |
|
|
| 2015 |
|
GAAP | | | | | | | | | | | | |
Net income
| |
$
|
41,946
|
| |
$
|
37,518
|
| |
$
|
22,451
| |
Earnings per share (diluted)
| | |
0.85
| | | |
0.76
| | | |
0.46
| |
Return on average assets
| | |
0.85
|
%
| | |
0.78
|
%
| | |
0.49
|
%
|
Return on average equity
| | |
8.25
| | | |
7.62
| | | |
4.72
| |
Efficiency ratio
| | |
70.23
|
%
| | |
73.61
|
%
| | |
80.79
|
%
|
| | | | | | | | | | | |
|
Non-GAAP | | | | | | | | | | | | |
Net operating income
| |
$
|
42,985
|
| |
$
|
39,466
|
| |
$
|
26,116
| |
Operating earnings per share (diluted)
| | |
0.87
| | | |
0.80
| | | |
0.53
| |
Operating return on average assets
| | |
0.87
|
%
| | |
0.82
|
%
| | |
0.57
|
%
|
Operating return on average equity
| | |
8.46
| | | |
8.02
| | | |
5.49
| |
Operating efficiency ratio
| | |
69.58
|
%
| | |
72.38
|
%
| | |
78.25
|
%
|
| | | | | | | | | | | |
|
“Our strong results reflect double-digit revenue growth, driven by
continued loan growth, higher loan yields, and improved noninterest
income, compared to the third quarter 2015,” said Mariner Kemper,
chairman and chief executive officer. “During the same period, operating
expenses declined approximately one percent as we continued to execute
on efficiency initiatives, as evidenced by our improved performance
metrics.”
|
|
| |
| | |
| |
| | |
| |
| | |
| |
| |
|
| |
| |
Summary of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Q3 | | | | | Q2 | | | | | Q3 | | | | | CQ vs. | | | | | CQ vs. |
| | | | | 2016 | | | | | 2016 |
|
|
|
| 2015 |
|
|
|
| LQ |
|
|
|
| PY |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Net interest income (GAAP)
| | |
$
| |
124,765
| | | |
$
| |
121,210
| | | |
$
| |
109,895
| | | |
$
| |
3,555
| | | |
$
| |
14,870
| |
Noninterest income:
| | | | | | | | | | | | | | | | | | | | | | | | | |
Trust and securities processing
| | | | |
60,218
| | | | | |
59,745
| | | | | |
65,182
| | | | | |
473
| | | | | |
(4,964
|
)
|
Trading and investment banking
| | | | |
6,114
| | | | | |
5,638
| | | | | |
2,969
| | | | | |
476
| | | | | |
3,145
| |
Service charges on deposit accounts
| | | | |
21,832
| | | | | |
22,420
| | | | | |
21,663
| | | | | |
(588
|
)
| | | | |
169
| |
Insurance fees and commisions
| | | | |
698
| | | | | |
1,160
| | | | | |
480
| | | | | |
(462
|
)
| | | | |
218
| |
Brokerage fees
| | | | |
4,712
| | | | | |
4,262
| | | | | |
2,958
| | | | | |
450
| | | | | |
1,754
| |
Bankcard fees
| | | | |
17,086
| | | | | |
17,534
| | | | | |
17,624
| | | | | |
(448
|
)
| | | | |
(538
|
)
|
Gains on sales of securities available for sale, net
| | | | |
2,978
| | | | | |
2,598
| | | | | |
101
| | | | | |
380
| | | | | |
2,877
| |
Equity earnings (losses) on alternative investments
| | | | |
1,594
| | | | | |
978
| | | | | |
(5,032
|
)
| | | | |
616
| | | | | |
6,626
| |
Other
| | | | |
6,716
|
|
|
|
|
|
7,112
|
|
|
|
|
|
3,153
|
|
|
|
|
|
(396
|
)
|
|
|
|
|
3,563
|
|
Total noninterest income
| | |
$
| |
121,948
|
|
|
|
$
|
|
121,447
|
|
|
|
$
|
|
109,098
|
|
|
|
$
|
|
501
|
|
|
|
$
|
|
12,850
|
|
| | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue
| | |
$
| |
246,713
|
|
|
|
$
|
|
242,657
|
|
|
|
$
|
|
218,993
|
|
|
|
$
|
|
4,056
|
|
|
|
$
|
|
27,720
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Net interest margin (FTE)
| | | | |
2.87
| |
%
| |
| |
2.86
| |
%
| |
| |
2.73
| |
%
| |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Total noninterest income as a % of total revenue
| | | | |
49.4
|
|
%
| | | |
50.0
|
|
%
| | | |
49.8
|
|
%
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Net interest income
-
On a linked quarter basis, the increase in net interest income was
driven by an increase in average loans of $294.4 million, higher
average loan yields, and an extra day of interest income. The average
loan yields increased four basis points to 3.86 percent.
-
On a year-over-year basis, the increase in net interest income was
driven by growth in average loans of $1.2 billion and higher average
loan yields, which increased ten basis points from a year ago.
-
For the third quarter 2016, average earning assets stood at $18.4
billion, an increase of 1.6 percent over the linked quarter and 9.1
percent over the third quarter 2015.
Noninterest income
-
Third quarter 2016 noninterest income remained flat as compared to the
linked quarter and represented 49.4 percent of total revenue.
-
The improvement in noninterest income over the same quarter in 2015
was driven by increases in equity earnings on alternative investments
due to improvements in the valuation of the underlying Prairie Capital
Management (PCM) fund investments, an increase in trading and
investment banking fees, increases in gains on sales of securities
available for sale, an increase in brokerage fees driven by corporate
debt underwriting fees and 12b-1 income, and a $3.5 million increase
in the fair value of company-owned life insurance recorded in other
noninterest income.
-
Trust and securities processing income decreased year-over-year
primarily due to a $4.7 million, or 36.5 percent, decrease in advisory
fee income from the Scout Funds.
| | |
|
| | |
Summary of Noninterest expense |
|
|
|
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
| | | | | | |
|
| | |
|
| | |
|
| | |
| | Q3 |
|
|
| Q2 |
|
|
| Q3 |
|
|
| CQ vs. |
|
|
| CQ vs. |
| | 2016 |
|
|
| 2016 |
|
|
| 2015 |
|
|
| LQ |
|
|
| PY |
| | | | | | | | | | | | | | | | | |
|
Salaries and employee benefits
|
$
|
109,369
| | |
$
|
108,997
| | |
$
|
104,733
| | |
$
|
372
| | | |
$
|
4,636
| |
Occupancy, net
| |
11,394
| | | |
11,139
| | | |
11,748
| | | |
255
| | | | |
(354
|
)
|
Equipment
| |
16,231
| | | |
17,032
| | | |
17,228
| | | |
(801
|
)
| | | |
(997
|
)
|
Supplies and services
| |
4,624
| | | |
4,719
| | | |
5,371
| | | |
(95
|
)
| | | |
(747
|
)
|
Marketing and business development
| |
5,332
| | | |
6,313
| | | |
5,766
| | | |
(981
|
)
| | | |
(434
|
)
|
Processing fees
| |
11,264
| | | |
11,464
| | | |
12,795
| | | |
(200
|
)
| | | |
(1,531
|
)
|
Legal and consulting
| |
4,450
| | | |
4,937
| | | |
8,648
| | | |
(487
|
)
| | | |
(4,198
|
)
|
Bankcard
| |
5,015
| | | |
5,369
| | | |
5,266
| | | |
(354
|
)
| | | |
(251
|
)
|
Amortization of other intangible assets
| |
2,992
| | | |
3,145
| | | |
3,483
| | | |
(153
|
)
| | | |
(491
|
)
|
Regulatory fees
| |
3,370
| | | |
3,692
| | | |
3,176
| | | |
(322
|
)
| | | |
194
| |
Other
| |
5,742
|
|
|
|
8,536
|
|
|
|
7,065
|
|
|
|
(2,794
|
)
|
|
|
|
(1,323
|
)
|
Total noninterest expense
|
$
|
179,783
|
|
|
$
|
185,343
|
|
|
$
|
185,279
|
|
|
$
|
(5,560
|
)
|
|
|
$
|
(5,496
|
)
|
| | | | | | | | | | | | | | | | | | | |
|
Noninterest expense
-
On a non-GAAP basis, operating noninterest expense, which excludes the
impact of acquisition expenses and other items as reconciled later in
this release, was $178.2 million for the third quarter 2016, a
decrease of $4.0 million, or 2.2 percent, compared to the linked
quarter, and $1.4 million, or 0.8 percent, compared to the third
quarter 2015.
-
Severance related to previously disclosed efficiency initiatives,
Marquette-related severance, and other acquisition-related expenses
totaled $1.6 million in the third quarter 2016, compared to $3.0
million for the linked quarter and $5.8 million for same quarter last
year.
-
On a linked quarter basis, the decrease in other noninterest
expense was driven by a $1.8 million decline in operational losses.
-
The decrease in noninterest expense compared to the third quarter 2015
was primarily driven by:
-
lower legal and consulting fees driven by a $1.9 million decrease
in legal-related acquisition expenses;
-
decreased processing fees paid to distributors of the Scout Funds;
-
a $1.1 million decrease in off-balance sheet commitment reserves
in other noninterest expense; and
-
Offset by increased salaries and employee benefits due to $3.5
million of deferred compensation plan fair value increases, and
$2.0 million in volume-related bonus and commission expense driven
by increased company performance, partially offset by a decrease
of $1.8 million in Marquette-related severance.
-
The company’s effective tax rate decreased to 22.2 percent for the
third quarter 2016, compared to 25.4 percent for the linked quarter.
The decrease is primarily attributable to an increase in federal tax
credits and a larger portion of income earned from excludable life
insurance policy gains.
Balance Sheet
-
Average total assets for the third quarter 2016 were $19.7 billion
compared to $18.1 billion for the same period in 2015, an increase of
$1.6 billion, or 8.7 percent.
|
|
| | |
|
| | |
|
| | | |
Summary of loans and leases |
|
|
|
|
|
|
|
|
|
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
| | | | | | | | | | | | |
|
| | |
|
| | |
| | | | September 30, | | June 30, | | | | September 30, | | CQ vs. | | | | CQ vs. |
| | | | 2016 |
|
|
| 2016 |
|
|
| 2015 |
|
|
| LQ |
|
|
| PY |
| | | | | | | | | | | | | | | | | | | |
|
Period End: | | | | | | | | | | | | | | | | | | | | |
Commercial
| | |
$
|
4,438,579
| | |
$
|
4,444,137
| | |
$
|
4,087,413
| | |
$
|
(5,558
|
)
| | |
$
|
351,166
| |
Asset-based
| | | |
236,566
| | | |
223,339
| | | |
218,666
| | | |
13,227
| | | | |
17,900
| |
Factoring
| | | |
107,762
| | | |
101,327
| | | |
105,978
| | | |
6,435
| | | | |
1,784
| |
Commercial credit card
| | | |
165,434
| | | |
145,359
| | | |
143,726
| | | |
20,075
| | | | |
21,708
| |
Real estate - construction
| | | |
682,705
| | | |
531,776
| | | |
367,117
| | | |
150,929
| | | | |
315,588
| |
Real estate - commercial
| | | |
3,010,569
| | | |
2,985,194
| | | |
2,491,879
| | | |
25,375
| | | | |
518,690
| |
Real estate - residential
| | | |
511,132
| | | |
478,638
| | | |
474,435
| | | |
32,494
| | | | |
36,697
| |
Real estate - HELOC
| | | |
721,847
| | | |
741,703
| | | |
719,039
| | | |
(19,856
|
)
| | | |
2,808
| |
Consumer credit card
| | | |
262,751
| | | |
270,353
| | | |
284,338
| | | |
(7,602
|
)
| | | |
(21,587
|
)
|
Consumer other
| | | |
124,620
| | | |
124,863
| | | |
113,149
| | | |
(243
|
)
| | | |
11,471
| |
Leases
| | | |
31,529
|
|
|
|
36,577
|
|
|
|
40,386
|
|
|
|
(5,048
|
)
|
|
|
|
(8,857
|
)
|
Total loans
| | |
$
|
10,293,494
|
|
|
$
|
10,083,266
|
|
|
$
|
9,046,126
|
|
|
$
|
210,228
|
|
|
|
$
|
1,247,368
|
|
| | | | | | | | | | | | | | | | | | | | | |
|
-
Average loans at September 30, 2016, increased 3.0 percent, on a
linked-quarter basis, and 14.0 percent, compared to third quarter 2015.
|
|
| | |
|
| | |
|
| | |
Summary of securities |
|
|
|
|
|
|
|
|
|
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
| | | | | | | | | | | | |
|
| | |
|
| | |
| | | | September 30, | | June 30, | | | | September 30, | | CQ vs. | | | | CQ vs. |
| | | | 2016 |
|
|
| 2016 |
|
|
| 2015 |
|
|
| LQ |
|
|
| PY |
| | | | | | | | | | | | | | | | | | | |
|
Securities available for sale:
| | | | | | | | | | | | | | | | | | | | |
U.S. Treasury
| | |
$
|
249,526
| | |
$
|
363,337
| | |
$
|
352,568
| | |
$
|
(113,811
|
)
| | |
$
|
(103,042
|
)
|
U.S. Agencies
| | | |
289,440
| | | |
421,625
| | | |
712,483
| | | |
(132,185
|
)
| | | |
(423,043
|
)
|
Mortgage-backed
| | | |
3,362,296
| | | |
3,600,175
| | | |
3,415,575
| | | |
(237,879
|
)
| | | |
(53,279
|
)
|
State and political subdivisions
| | | |
2,327,220
| | | |
2,305,979
| | | |
2,110,684
| | | |
21,241
| | | | |
216,536
| |
Corporates
| | | |
67,205
|
|
|
|
80,063
|
|
|
|
80,435
|
|
|
|
(12,858
|
)
|
|
|
|
(13,230
|
)
|
Total securities available for sale
| | | |
6,295,687
| | | |
6,771,179
| | | |
6,671,745
| | | |
(475,492
|
)
| | | |
(376,058
|
)
|
Securities held to maturity:
| | | | | | | | | | | | | | | | | | | | |
State and political subdivisions
| | | |
1,009,117
| | | |
880,600
| | | |
588,478
| | | |
128,517
| | | | |
420,639
| |
Trading securities
| | | |
58,062
| | | |
56,311
| | | |
23,699
| | | |
1,751
| | | | |
34,363
| |
Other securities
| | | |
66,853
|
|
|
|
66,300
|
|
|
|
68,371
|
|
|
|
553
|
|
|
|
|
(1,518
|
)
|
Total securities
| | |
$
|
7,429,719
|
|
|
$
|
7,774,390
|
|
|
$
|
7,352,293
|
|
|
$
|
(344,671
|
)
|
|
|
$
|
77,426
|
|
| | | | | | | | | | | | | | | | | | | | | |
|
-
Total securities available for sale decreased 7.0 percent on a
linked-quarter basis and 5.6 percent compared to September 30, 2015,
demonstrating success in rotating earning assets into loans.
-
The growth in the company’s held to maturity securities portfolio is
attributed to increased activity in private placement bonds, primarily
used to refinance existing revenue bonds in the healthcare and
education sectors.
|
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
Summary of deposits |
|
|
|
|
|
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | | September 30, | | | | June 30, | | | | September 30, | | | | CQ vs. | | | | CQ vs. |
| | | | 2016 |
|
|
| 2016 |
|
|
| 2015 |
|
|
| LQ |
|
|
| PY |
Deposits:
| | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing demand
| | |
$
|
6,008,326
| | | |
$
|
6,233,492
| | | |
$
|
6,257,944
| | | |
$
|
(225,166
|
)
| | |
$
|
(249,618
|
)
|
Interest-bearing demand and savings
| | | |
8,288,670
| | | | |
8,270,416
| | | | |
7,547,822
| | | | |
18,254
| | | | |
740,848
| |
Time deposits under $250,000
| | | |
658,541
| | | | |
695,629
| | | | |
661,877
| | | | |
(37,088
|
)
| | | |
(3,336
|
)
|
Time deposits of $250,000 or more
| | | |
422,712
|
|
|
|
|
449,156
|
|
|
|
|
593,916
|
|
|
|
|
(26,444
|
)
|
|
|
|
(171,204
|
)
|
Total deposits
| | |
$
|
15,378,249
|
|
|
|
$
|
15,648,693
|
|
|
|
$
|
15,061,559
|
|
|
|
$
|
(270,444
|
)
|
|
|
$
|
316,690
|
|
| | | | | | | | | | | | | | | | | | | |
|
Non-interest bearing deposits as % of total deposits
| | | |
39.07
|
%
| | | |
39.83
|
%
| | | |
41.55
|
%
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
-
The cost of interest-bearing liabilities for the third quarter was 25
basis points, and total cost of funds including noninterest-bearing
deposits was 17 basis points.
|
|
| | | |
| | | |
| | |
Capital information |
|
|
|
|
|
| UMB Financial Corporation |
(unaudited, dollars in thousands, except per share data)
| | | | | | | | | | | | | |
| | | | September 30, | | | | June 30, | | | | September 30, | |
| | | | 2016 |
|
|
| 2016 |
|
|
| 2015 |
|
| | | | | | | | | | | | |
|
Total equity
| | |
$
|
2,024,628
| | |
$
|
2,003,141
| | |
$
|
1,900,857
| |
Book value per common share
| | | |
40.86
| | | |
40.44
| | | |
38.56
| |
| | | | | | | | | | | | |
|
Regulatory capital: | | | | | | | | | | | | | |
Common equity Tier 1 capital
| | |
$
|
1,749,738
| | |
$
|
1,709,986
| | |
$
|
1,642,555
| |
Tier 1 capital
| | | |
1,749,738
| | | |
1,709,833
| | | |
1,659,024
| |
Total capital
| | | |
1,909,583
| | | |
1,864,389
| | | |
1,789,183
| |
| | | | | | | | | | | | |
|
Regulatory capital ratios: | | | | | | | | | | | | | |
Common equity Tier 1 capital ratio
| | | |
11.75
|
%
|
|
|
11.65
|
%
|
|
|
12.39
|
%
|
Tier 1 risk-based capital ratio
| | | |
11.75
| | | |
11.65
| | | |
12.51
| |
Total risk-based capital ratio
| | | |
12.82
| | | |
12.70
| | | |
13.50
| |
Tier 1 leverage ratio
| | | |
8.99
| | | |
8.91
| | | |
9.27
| |
| | | | | | | | | | | | |
|
|
|
| | |
|
| | |
|
| | |
Credit quality |
|
|
|
|
|
|
|
|
|
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
| | | | | | | | | | | | | |
| | |
|
| | | |
| | | | Q3 | | | | Q2 | | | | Q1 | | | | Q4 | | | | Q3 | |
| | | | 2016 |
|
|
| 2016 |
|
|
| 2016 |
|
| 2015 |
|
|
| 2015 | |
| | | | | | | | | | | | | | | | | | | | |
|
Net charge-offs (recoveries) - Commercial loans
| | |
$
|
5,538
| | | |
$
|
(59
|
)
| | |
$
|
2,586
| | |
$
|
178
| | | |
$
|
636
| | |
Net (recoveries) charge-offs - Real estate loans
| | | |
(67
|
)
| | | |
1,164
| | | | |
1,301
| | | |
(50
|
)
| | | |
(65
|
)
| |
Net charge-offs - Consumer credit card loans
| | | |
1,658
| | | | |
1,575
| | | | |
1,781
| | | |
1,628
| | | | |
1,524
| | |
Net charge-offs - Consumer other loans
| | | |
133
| | | | |
52
| | | | |
77
| | | |
130
| | | | |
97
| | |
Net charge-offs - Total loans
| | | |
7,262
| | | | |
2,732
| | | | |
5,745
| | | |
1,886
| | | | |
2,192
| | |
Net loan charge-offs as a % of total average loans
| | | |
0.28
|
%
| | |
|
0.11
|
%
| | |
|
0.24
|
%
| |
|
0.08
|
%
| | |
|
0.10
|
%
|
|
Loans over 90 days past due
| | |
$
|
2,678
| | | |
$
|
4,700
| | | |
$
|
3,334
| | |
$
|
7,324
| | | |
$
|
2,552
| | |
Loans over 90 days past due as a % of total loans
| | | |
0.03
|
%
| | |
|
0.05
|
%
| | |
|
0.03
|
%
| |
|
0.08
|
%
| | |
|
0.03
|
%
|
|
Nonperforming loans
| | |
$
|
79,607
| | | |
$
|
58,423
| | | |
$
|
54,933
| | |
$
|
61,152
| | | |
$
|
49,955
| | |
Nonperforming loans as a % of total loans
| | | |
0.77
|
%
| | |
|
0.58
|
%
| | |
|
0.57
|
%
| |
|
0.65
|
%
| | |
|
0.55
|
%
|
|
Provision for loan losses
| | |
$
|
13,000
| | | |
$
|
7,000
| | | |
$
|
5,000
| | |
$
|
5,000
| | | |
$
|
2,500
| | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
-
Nonperforming loans, defined as restructured loans on nonaccrual and
all other nonaccrual loans, increased $21.2 million from the linked
quarter driven primarily by the migration of two traditional
commercial credits to non-performing status.
-
Provision for loan losses increased $6.0 million from the linked
quarter, consistent with our methodology which considers the inherent
risk in our loan portfolio, as well as other qualitative factors, such
as macroeconomic conditions. Loan growth, increased impaired loans,
and increased net charge-offs impacted the reserve this quarter.
Efficiency Initiatives
In 2015, the company announced efficiency initiatives with cost savings
expected to be recognized as follows: $6.8 million in 2015, $22.6
million in 2016, and annualized savings of $32.9 million in 2017 and
beyond. As an update, the company recognized $9.5 million of these cost
savings in 2015, $15.0 million year-to-date 2016, and expects to
recognize an additional $8.4 million in the remainder of 2016 and early
2017.
Dividend Declaration
At the company’s quarterly board meeting, the Board of Directors
declared a $0.255 per share cash dividend, which represents a 4.1
percent increase over the previous dividend amount. The dividend is
payable on Jan. 3, 2017, to shareholders of record at the close of
business on Dec. 9, 2016.
Conference Call
The company plans to host a conference call to discuss its third quarter
2016 earnings results on Wednesday, Oct. 26, 2016, at 8:30 a.m. (CT).
Interested parties may access the call by dialing (toll-free)
877-267-8760 or (U.S.) 412-542-4148 and requesting to join the UMB
Financial call. The live call can also be accessed by visiting the
investor relations area of umbfinancial.com
or by using the following the link:
UMB
Financial 3Q 2016 Conference Call
A replay of the conference call may be heard through Nov. 9, 2016, by
calling (toll-free) 877-344-7529 or (U.S.) 412-317-0088. The replay pass
code required for playback is 10093649. The call replay may also be
accessed via the company's website umbfinancial.com
by visiting the investor relations area.
Non-GAAP Financial Information
In this release, we provide information about net operating income,
operating earnings per share (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 (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 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 the following: (i)
fair value adjustments on contingent consideration for the acquisitions
of Prairie Capital Management, LLC (PCM) and Reams Asset Management
Company (Reams), (ii) expenses related to the acquisition of Marquette
Financial Companies (Marquette), (iii) non-acquisition related severance
expense and (iv) the tax impact of the previous adjustments. The company
believes that the financial impact of excluding non-acquisition related
severance expense will be immaterial in the near future. It is excluded
from certain non-GAAP financial measures as it has an unusually large
impact on the company’s financial statements.
Operating EPS (basic and diluted) is calculated as earnings per share as
report, adjusted to reflect, on a per share basis, the impact of
excluding the non-GAAP adjustments described in clauses (i)-(iv) above
for the relevant period. Operating ROE is calculated as net operating
income, divided by the company’s average total shareholders’ equity for
the relevant period. Operating ROA is calculated as net operating
income, divided by the company’s average assets for the relevant period.
Operating noninterest expense for the relevant period is defined as GAAP
noninterest expense, adjusted to reflect the pre-tax impact of non-GAAP
adjustments described in clauses (i)-(iii) 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
revenue
(tax equivalent net interest income plus noninterest income less gains
on sales of securities available for sale, net).
Forward-Looking Statements:
This 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—such as our statements about expected cost savings and other
results of efficiency initiatives and our statements about the intent to
make strategic investments. 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, 2015, 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. 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 diversified financial
holding company headquartered in Kansas City, Mo., offering complete
banking services, payment solutions, asset servicing and institutional
investment management to customers. UMB operates banking and wealth
management centers throughout Missouri, Illinois, Colorado, Kansas,
Oklahoma, Nebraska, Arizona and Texas, as well as two national
specialty-lending businesses. Subsidiaries of the holding company
include companies that offer services to mutual funds and
alternative-investment entities and registered investment advisors that
offer equity and fixed income strategies to institutions and individual
investors. For more information, visit umb.com,
umbfinancial.com,
blog.umb.com
or follow us on Twitter at @UMBBank, Facebook at facebook.com/UMBBank
and LinkedIn at linkedin.com/company/umb-bank.
| |
|
| | | |
Non-GAAP Financial Measures |
|
|
|
| UMB Financial Corporation |
|
Net operating income non-GAAP reconciliation: | | | | |
|
| | | |
(unaudited, dollars in thousands, except share and per share data)
| | | | | | | | | |
|
|
| | |
|
| | | | | | | | | | | |
| | | | Three Months Ended | | | | Nine Months Ended | |
| | | | September 30, | | | | September 30, | |
| | |
| 2016 |
|
|
| 2015 |
|
|
| 2016 |
|
|
| 2015 |
|
Net income (GAAP) | | |
$
|
41,946
| | |
$
|
22,451
| | |
$
|
115,867
| | |
$
|
86,430
| |
Adjustments: | | | | | | | | | | | | | | | | | |
Fair value adjustments on contingent consideration (i)
| | | |
-
| | | |
(59)
| | | |
67
| | | |
(3,477)
| |
Acquisition expenses (ii)
| | | |
435
| | | |
4,856
| | | |
4,473
| | | |
6,409
| |
Non-acquisition severance expense (iii)
| | | |
1,189
| | | |
930
| | | |
3,761
| | | |
1,283
| |
Tax-impact of adjustments (iv)
| | |
|
(585)
|
|
|
|
(2,062)
|
|
|
|
(2,988)
|
|
|
|
(1,517)
|
|
Total Non-GAAP adjustments (net of tax)
| | |
|
1,039
|
|
|
|
3,665
|
|
|
|
5,313
|
|
|
|
2,698
|
|
Net operating income (Non-GAAP) | | |
$
|
42,985
|
|
|
$
|
26,116
|
|
|
$
|
121,180
|
|
|
$
|
89,128
|
|
| | | | | | | | | | | | | | | | |
|
Earnings per share as reported - diluted | | |
$
|
0.85
| | |
$
|
0.46
| | |
$
|
2.36
| | |
$
|
1.84
| |
Fair value adjustments on contingent consideration (i)
| | | |
-
| | | |
-
| | | |
-
| | | |
(0.07)
| |
Acquisition expenses (ii)
| | | |
0.01
| | | |
0.09
| | | |
0.09
| | | |
0.12
| |
Non-acquisition severance expense (iii)
| | | |
0.02
| | | |
0.02
| | | |
0.07
| | | |
0.03
| |
Tax-impact of adjustments (iv)
| | |
|
(0.01)
|
|
|
|
(0.04)
|
|
|
|
(0.06)
|
|
|
|
(0.03)
|
|
Operating earnings per share - diluted | | |
$
|
0.87
|
|
|
$
|
0.53
|
|
|
$
|
2.46
|
|
|
$
|
1.89
|
|
| | | | | | | | | | | | | | | | |
|
GAAP | | | | | | | | | | | | | | | | | |
Return on average assets
| | | |
0.85
| | |
%
|
0.49
| | |
%
|
0.79
| | |
%
|
0.66
|
%
|
Return on average equity
| | | |
8.25
| | | |
4.72
| | | |
7.81
| | | |
6.53
| |
| | | | | | | | | | | | | | | | |
|
Non-GAAP | | | | | | | | | | | | | | | | | |
Operating return on average assets
| | | |
0.87
| | |
%
|
0.57
| | |
%
|
0.83
| | |
%
|
0.68
|
%
|
Operating return on average equity
| | | |
8.46
| | | |
5.49
| | | |
8.17
| | | |
6.73
| |
| | | | | | | | | | | | | | | | |
|
|
|
| | | |
Operating noninterest expense and operating efficiency ratio
non-GAAP reconciliation: |
|
|
| UMB Financial Corporation |
|
(unaudited, dollars in thousands except share and per share data)
|
|
| | | |
|
|
| Three Months Ended | | | | Nine Months Ended | |
| | | September 30, | | | | September 30, | |
| | |
| 2016 |
|
|
| 2015 |
|
|
| 2016 |
|
|
| 2015 |
|
Noninterest expense
| | |
$
|
179,783
|
|
|
$
|
185,279
| | |
$
|
545,570
| | |
$
|
521,656
| |
Adjustments to arrive at operating noninterest expense (pre-tax):
| | | | | | | | | | | | | | | | | |
Fair value adjustments on contingent consideration (i)
| | | |
-
| | | |
(59)
| | | |
67
| | | |
(3,477)
| |
Acquisition expenses (ii)
| | | |
435
| | | |
4,856
| | | |
4,473
| | | |
6,409
| |
Non-acquisition severance expense (iii)
| | |
|
1,189
|
|
|
|
930
|
|
|
|
3,761
|
|
|
|
1,283
|
|
Total Non-GAAP adjustments (pre-tax)
| | |
|
1,624
|
|
|
|
5,727
|
|
|
|
8,301
|
|
|
|
4,215
|
|
Operating noninterest expense
| | |
$
|
178,159
|
|
|
$
|
179,552
|
|
|
$
|
537,269
|
|
|
$
|
517,441
|
|
| | | | | | | | | | | | | | | | |
|
Noninterest expense
| | |
$
|
179,783
| | |
$
|
185,279
| | |
$
|
545,570
| | |
$
|
521,656
| |
Less: Amortization of other intangibles
| | |
|
2,992
|
|
|
|
3,483
|
|
|
|
9,363
|
|
|
|
8,807
|
|
Noninterest expense, net of amortization of other intangibles
(numerator A)
| | |
$
|
176,791
|
|
|
$
|
181,796
|
|
|
$
|
536,207
|
|
|
$
|
512,849
|
|
| | | | | | | | | | | | | | | | |
|
Operating noninterest expense
| | |
$
|
178,159
| | |
$
|
179,552
| | |
$
|
537,269
| | |
$
|
517,441
| |
Less: Amortization of other intangibles
| | |
|
2,992
|
|
|
|
3,483
|
|
|
|
9,363
|
|
|
|
8,807
|
|
Operating expense, net of amortization of other intangibles
(numerator B)
| | |
$
|
175,167
|
|
|
$
|
176,069
|
|
|
$
|
527,906
|
|
|
$
|
508,634
|
|
| | | | | | | | | | | | | | | | |
|
Net interest income (tax equivalent) (v)
| | |
$
|
132,765
| | |
$
|
116,024
| | |
$
|
386,190
| | |
$
|
314,886
| |
Noninterest income
| | | |
121,948
| | | |
109,098
| | | |
359,745
| | | |
353,855
| |
Less: Gains on sales of securities available for sale, net
| | |
|
2,978
|
|
|
|
101
|
|
|
|
8,509
|
|
|
|
8,404
|
|
Total (denominator A)
| | |
$
|
251,735
|
|
|
$
|
225,021
|
|
|
$
|
737,426
|
|
|
$
|
660,337
|
|
| | | | | | | | | | | | | | | | |
|
Efficiency ratio (numerator A/denominator A)
| | | |
70.23
| | |
%
|
80.79
| | |
%
|
72.71
| | |
%
|
77.66
|
%
|
Operating efficiency ratio (numerator B/denominator A)
| | | |
69.58
| | | |
78.25
| | | |
71.59
| | | |
77.03
| |
(i) Represents fair value adjustments to contingent consideration
for the acquisitions of PCM and Reams.
|
(ii) Represents expenses related to the acquisition of Marquette.
|
(iii) Represents non-acquisition severance expense related to
UMB-legacy employees as management excludes severance expense from
its internal evaluation of company performance. Severance expense
for Marquette-legacy employees is included in item (ii).
|
(iv) Calculated using the company's marginal tax rate of 36%.
|
(v) Tax-exempt interest income has been adjusted to a tax equivalent
basis. The amount of such adjustment was an addition to net interest
income of $8.0 million and $6.2 million for the three months ended
September 30, 2016 and 2015, respectively and $22.3 million and
$17.3 million for the nine months ended September 30, 2016 and 2015,
respectively.
|
|
|
|
| | |
Consolidated Balance Sheets |
|
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
| | | | |
|
| | |
| | | | September 30, |
Assets | | |
| 2016 |
|
|
| 2015 |
| | | | | | | |
|
Loans
| | |
$
|
10,293,494
| | |
$
|
9,046,126
|
Allowance for loan losses
| | |
|
(90,404)
|
|
|
|
(78,030)
|
Net loans
| | |
|
10,203,090
|
|
|
|
8,968,096
|
Loans held for sale
| | | |
11,880
| | | |
1,013
|
Investment securities:
| | | | | | | | |
Available for sale
| | | |
6,295,687
| | | |
6,671,745
|
Held to maturity
| | | |
1,009,117
| | | |
588,478
|
Trading securities
| | | |
58,062
| | | |
23,699
|
Other securities
| | |
|
66,853
|
|
|
|
68,371
|
Total investment securities
| | |
|
7,429,719
|
|
|
|
7,352,293
|
Federal funds and resell agreements
| | | |
244,891
| | | |
98,762
|
Interest-bearing due from banks
| | | |
453,189
| | | |
847,077
|
Cash and due from banks
| | | |
354,184
| | | |
339,592
|
Premises and equipment, net
| | | |
287,267
| | | |
281,704
|
Accrued income
| | | |
93,016
| | | |
87,863
|
Goodwill
| | | |
228,396
| | | |
227,962
|
Other intangibles, net
| | | |
37,419
| | | |
50,065
|
Other assets
| | |
|
383,095
|
|
|
|
343,538
|
Total assets
| | |
$
|
19,726,146
|
|
|
$
|
18,597,965
|
| | | | | | | |
|
| | | | | | | |
|
Liabilities | | | | | | | | |
Deposits:
| | | | | | | | |
Noninterest-bearing demand
| | |
$
|
6,008,326
| | |
$
|
6,257,944
|
Interest-bearing demand and savings
| | | |
8,288,670
| | | |
7,547,822
|
Time deposits under $250,000
| | | |
658,541
| | | |
661,877
|
Time deposits of $250,000 or more
| | |
|
422,712
|
|
|
|
593,916
|
Total deposits
| | |
|
15,378,249
|
|
|
|
15,061,559
|
Federal funds and repurchase agreements
| | | |
2,021,123
| | | |
1,342,600
|
Short-term debt
| | | |
-
| | | |
5,000
|
Long-term debt
| | | |
75,418
| | | |
83,534
|
Accrued expenses and taxes
| | | |
163,221
| | | |
168,716
|
Other liabilities
| | |
|
63,507
|
|
|
|
35,699
|
Total liabilities
| | |
|
17,701,518
|
|
|
|
16,697,108
|
| | | | | | | |
|
Shareholders' Equity | | | | | | | | |
Common stock
| | | |
55,057
| | | |
55,057
|
Capital surplus
| | | |
1,028,869
| | | |
1,015,383
|
Retained earnings
| | | |
1,112,613
| | | |
1,016,206
|
Accumulated other comprehensive income
| | | |
42,512
| | | |
26,530
|
Treasury stock
| | |
|
(214,423)
|
|
|
|
(212,319)
|
Total shareholders' equity
| | |
|
2,024,628
|
|
|
|
1,900,857
|
Total liabilities and shareholders' equity
| | |
$
|
19,726,146
|
|
|
$
|
18,597,965
|
| | | | | | | |
|
|
|
| | |
|
| | |
|
| | |
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, |
Interest Income | | |
| 2016 |
|
|
| 2015 |
|
|
| 2016 |
|
|
| 2015 |
Loans
| | |
$
|
98,820
| | |
$
|
84,686
| | |
$
|
283,313
| | |
$
|
220,314
|
Securities:
| | | | | | | | | | | | | | | | |
Taxable interest
| | | |
17,012
| | | |
18,498
| | | |
55,221
| | | |
56,469
|
Tax-exempt interest
| | | |
14,797
|
|
|
|
11,320
|
|
|
|
41,377
|
|
|
|
31,842
|
Total securities income
| | | |
31,809
| | | |
29,818
| | | |
96,598
| | | |
88,311
|
Federal funds and resell agreements
| | | |
790
| | | |
175
| | | |
1,939
| | | |
377
|
Interest-bearing due from banks
| | | |
445
| | | |
475
| | | |
1,772
| | | |
1,761
|
Trading securities
| | | |
174
|
|
|
|
75
|
|
|
|
399
|
|
|
|
303
|
Total interest income
| | | |
132,038
|
|
|
|
115,229
|
|
|
|
384,021
|
|
|
|
311,066
|
| | | | | | | | | | | | | | | |
|
Interest Expense | | | | | | | | | | | | | | | | |
Deposits
| | | |
4,626
| | | |
3,863
| | | |
12,817
| | | |
10,433
|
Federal funds and repurchase agreements
| | | |
1,894
| | | |
427
| | | |
4,750
| | | |
1,389
|
Other
| | | |
753
|
|
|
|
1,044
|
|
|
|
2,587
|
|
|
|
1,631
|
Total interest expense
| | | |
7,273
|
|
|
|
5,334
|
|
|
|
20,154
|
|
|
|
13,453
|
Net interest income
| | | |
124,765
| | | |
109,895
| | | |
363,867
| | | |
297,613
|
Provision for loan losses
| | | |
13,000
|
|
|
|
2,500
|
|
|
|
25,000
|
|
|
|
10,500
|
Net interest income after provision for loan losses
| | | |
111,765
|
|
|
|
107,395
|
|
|
|
338,867
|
|
|
|
287,113
|
| | | | | | | | | | | | | | | |
|
Noninterest Income | | | | | | | | | | | | | | | | |
Trust and securities processing
| | | |
60,218
| | | |
65,182
| | | |
179,448
| | | |
199,862
|
Trading and investment banking
| | | |
6,114
| | | |
2,969
| | | |
16,382
| | | |
14,659
|
Service charges on deposits
| | | |
21,832
| | | |
21,663
| | | |
65,713
| | | |
64,829
|
Insurance fees and commissions
| | | |
698
| | | |
480
| | | |
3,355
| | | |
1,636
|
Brokerage fees
| | | |
4,712
| | | |
2,958
| | | |
13,159
| | | |
8,748
|
Bankcard fees
| | | |
17,086
| | | |
17,624
| | | |
52,636
| | | |
51,842
|
Gains on sale of securities available for sale, net
| | | |
2,978
| | | |
101
| | | |
8,509
| | | |
8,404
|
Equity earnings (loss) on alternative investments
| | | |
1,594
| | | |
(5,032)
| | | |
2,191
| | | |
(6,999)
|
Other
| | | |
6,716
|
|
|
|
3,153
|
|
|
|
18,352
|
|
|
|
10,874
|
Total noninterest income
| | | |
121,948
|
|
|
|
109,098
|
|
|
|
359,745
|
|
|
|
353,855
|
| | | | | | | | | | | | | | | |
|
Noninterest Expense | | | | | | | | | | | | | | | | |
Salaries and employee benefits
| | | |
109,369
| | | |
104,733
| | | |
325,216
| | | |
302,855
|
Occupancy, net
| | | |
11,394
| | | |
11,748
| | | |
33,505
| | | |
32,070
|
Equipment
| | | |
16,231
| | | |
17,228
| | | |
49,545
| | | |
46,810
|
Supplies, postage and telephone
| | | |
4,624
| | | |
5,371
| | | |
14,292
| | | |
14,299
|
Marketing and business development
| | | |
5,332
| | | |
5,766
| | | |
16,086
| | | |
16,914
|
Processing fees
| | | |
11,264
| | | |
12,795
| | | |
34,190
| | | |
38,232
|
Legal and consulting
| | | |
4,450
| | | |
8,648
| | | |
14,186
| | | |
18,943
|
Bankcard
| | | |
5,015
| | | |
5,266
| | | |
16,199
| | | |
14,987
|
Amortization of other intangibles
| | | |
2,992
| | | |
3,483
| | | |
9,363
| | | |
8,807
|
Regulatory fees
| | | |
3,370
| | | |
3,176
| | | |
10,491
| | | |
8,805
|
Other
| | | |
5,742
|
|
|
|
7,065
|
|
|
|
22,497
|
|
|
|
18,934
|
Total noninterest expense
| | | |
179,783
| | | |
185,279
| | | |
545,570
| | | |
521,656
|
Income before income taxes
| | | |
53,930
| | | |
31,214
| | | |
153,042
| | | |
119,312
|
Income tax provision
| | | |
11,984
|
|
|
|
8,763
|
|
|
|
37,175
|
|
|
|
32,882
|
Net income | | |
$
|
41,946
|
|
|
$
|
22,451
|
|
|
$
|
115,867
|
|
|
$
|
86,430
|
| | | | | | | | | | | | | | | |
|
Per Share Data | | | | | | | | | | | | | | | | |
Net income - basic
| | |
$
|
0.86
| | |
$
|
0.46
| | |
$
|
2.37
| | |
$
|
1.85
|
Net income – diluted
| | | |
0.85
| | | |
0.46
| | | |
2.36
| | | |
1.84
|
Dividends
| | | |
0.245
| | | |
0.235
| | | |
0.735
| | | |
0.705
|
| | | | | | | | | | | | | | | |
|
Weighted average shares outstanding
| | | |
48,849,251
| | | |
48,577,282
| | | |
48,792,419
| | | |
46,619,428
|
Weighted average shares outstanding – diluted
| | | |
49,284,280
| | | |
49,036,332
| | | |
49,162,200
| | | |
47,080,009
|
|
|
| |
Consolidated Statements of Comprehensive Income |
|
| UMB Financial Corporation |
(unaudited, dollars in thousands)
| | | |
|
| | |
|
| | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, |
| | | 2016 |
|
| 2015 |
|
| 2016 |
|
| 2015 |
Net Income
| | |
$
|
41,946
|
|
|
$
|
22,451
| | |
$
|
115,867
| | |
$
|
86,430
|
Other comprehensive income, net of tax:
| | | | | | | | | | | | | | | | |
Unrealized gains (losses) on securities:
| | | | | | | | | | | | | | | | |
Change in unrealized holding (losses) gains, net
| | | |
(16,946)
| | | |
46,166
| | | |
90,639
| | | |
33,289
|
Less: Reclassifications adjustment for gains included in net income
| | |
|
(2,978)
|
|
|
|
(101)
|
|
|
|
(8,509)
|
|
|
|
(8,404)
|
Change in unrealized (losses) gains on securities during the period
| | | |
(19,924)
| | | |
46,065
| | | |
82,130
| | | |
24,885
|
Change in unrealized losses on derivatives
| | |
|
(643)
|
|
|
|
-
|
|
|
|
(7,677)
|
|
|
|
-
|
Income tax benefit (expense)
| | |
|
7,784
|
|
|
|
(17,394)
|
|
|
|
(28,223)
|
|
|
|
(9,361)
|
Other comprehensive (loss) income
| | |
|
(12,783)
|
|
|
|
28,671
|
|
|
|
46,230
|
|
|
|
15,524
|
Comprehensive income
| | |
$
|
29,163
|
|
|
$
|
51,122
|
|
|
$
|
162,097
|
|
|
$
|
101,954
|
| | | | | | | | | | | | | | | |
|
|
|
| | |
|
| | |
Consolidated Statements of Shareholders' Equity |
|
|
|
|
|
|
| UMB Financial Corporation |
(unaudited, dollars in thousands, except per share data)
| | | | | | | | |
|
| | |
|
| | |
|
|
| | |
|
| | | | | | | | | | Accumulated | | | | | | | | |
| | | | | | | | | | | | | | | | Other | | | | | | | | |
| | | | Common | | | | Capital | | | | Retained | | | | Comprehensive | | | | Treasury | | | | |
| | |
| Stock |
|
|
| Surplus |
|
|
| Earnings |
|
|
| Income (Loss) |
|
|
| Stock |
|
|
| Total |
Balance - January 1, 2015
| | |
$
|
55,057
| | |
$
|
894,602
| | |
$
|
963,911
| | |
$
|
11,006
| | |
$
|
(280,818)
| | |
$
|
1,643,758
|
Total comprehensive income
| | | |
-
| | | |
-
| | | |
86,430
| | | |
15,524
| | | |
-
| | | |
101,954
|
Cash dividends ($0.705 per share)
| | | |
-
| | | |
-
| | | |
(34,135)
| | | |
-
| | | |
-
| | | |
(34,135)
|
Purchase of treasury stock
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(6,172)
| | | |
(6,172)
|
Issuance of equity awards
| | | |
-
| | | |
(4,180)
| | | | | | | | | | | |
4,639
| | | |
459
|
Recognition of equity based compensation
| | | |
-
| | | |
9,030
| | | |
-
| | | |
-
| | | |
-
| | | |
9,030
|
Net tax benefit related to equity compensation plans
| | | |
-
| | | |
732
| | | |
-
| | | |
-
| | | |
-
| | | |
732
|
Sale of treasury stock
| | | |
-
| | | |
475
| | | |
-
| | | |
-
| | | |
315
| | | |
790
|
Exercise of stock options
| | | |
-
| | | |
2,089
| | | |
-
| | | |
-
| | | |
2,615
| | | |
4,704
|
Common stock issuance
| | |
|
-
|
|
|
|
112,635
|
|
|
|
-
|
|
|
|
-
|
|
|
|
67,102
|
|
|
|
179,737
|
Balance – September 30, 2015
| | |
$
|
55,057
|
|
|
$
|
1,015,383
|
|
|
$
|
1,016,206
|
|
|
$
|
26,530
|
|
|
$
|
(212,319)
|
|
|
$
|
1,900,857
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
Balance - January 1, 2016
| | |
$
|
55,057
| | |
$
|
1,019,889
| | |
$
|
1,033,990
| | |
$
|
(3,718)
| | |
$
|
(211,524)
| | |
$
|
1,893,694
|
Total comprehensive income
| | | |
-
| | | |
-
| | | |
115,867
| | | |
46,230
| | | |
-
| | | |
162,097
|
Cash dividends ($0.735 per share)
| | | |
-
| | | |
-
| | | |
(36,388)
| | | |
-
| | | |
-
| | | |
(36,388)
|
Purchase of treasury stock
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(14,189)
| | | |
(14,189)
|
Issuance of equity awards
| | | |
-
| | | |
(3,373)
| | | |
-
| | | |
-
| | | |
3,802
| | | |
429
|
Recognition of equity based compensation
| | | |
-
| | | |
8,253
| | | |
-
| | | |
-
| | | |
-
| | | |
8,253
|
Sale of treasury stock
| | | |
-
| | | |
362
| | | |
-
| | | |
-
| | | |
474
| | | |
836
|
Exercise of stock options
| | | |
-
| | | |
2,400
| | | |
-
| | | |
-
| | | |
7,014
| | | |
9,414
|
Cumulative effect adjustment
| | |
|
-
|
|
|
|
1,338
|
|
|
|
(856)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
482
|
Balance – September 30, 2016
| | |
$
|
55,057
|
|
|
$
|
1,028,869
|
|
|
$
|
1,112,613
|
|
|
$
|
42,512
|
|
|
$
|
(214,423)
|
|
|
$
|
2,024,628
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
| | |
|
| | | |
Average Balances / Yields and Rates |
|
|
|
|
|
|
| UMB Financial Corporation |
|
(tax - equivalent basis)
| | | | | | | | |
|
| | |
|
| | |
(unaudited, dollars in thousands)
| | | | Three Months Ended September 30, |
| | |
| 2016 |
|
|
| 2015 |
| | | | Average | | | Average | | | | | Average | | | Average | |
Assets | | |
| Balance |
|
| Yield/Rate |
|
|
|
| Balance |
|
| Yield/Rate |
|
Loans, net of unearned interest
| | |
$
|
10,181,819
| | |
3.86
|
%
| | |
$
|
8,933,775
| | |
3.76
|
%
|
Securities:
| | | | | | | | | | | | | | | | |
Taxable
| | | |
4,449,485
| | |
1.52
| | | | |
4,750,122
| | |
1.54
| |
Tax-exempt
| | | |
3,158,966
|
|
|
2.86
| | | | |
2,557,629
|
|
|
2.70
| |
Total securities
| | | |
7,608,451
| | |
2.08
| | | | |
7,307,751
| | |
1.95
| |
Federal funds and resell agreements
| | | |
217,287
| | |
1.45
| | | | |
83,048
| | |
0.84
| |
Interest-bearing due from banks
| | | |
314,619
| | |
0.56
| | | | |
481,575
| | |
0.39
| |
Trading securities
| | | |
51,280
|
|
|
1.75
| | | | |
36,171
|
|
|
1.04
| |
Total earning assets
| | | |
18,373,456
| | |
3.03
| | | | |
16,842,320
| | |
2.86
| |
Allowance for loan losses
| | | |
(86,368)
| | | | | | | |
(78,419)
| | | | |
Other assets
| | |
|
1,405,152
| | | | | | |
|
1,356,548
| | | | |
Total assets
| | |
$
|
19,692,240
| | | | | | |
$
|
18,120,449
| | | | |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
Interest-bearing deposits
| | |
$
|
9,431,253
| | |
0.20
|
%
| | |
$
|
8,532,814
| | |
0.18
|
%
|
Federal funds and repurchase agreements
| | | |
2,261,863
| | |
0.33
| | | | |
1,634,394
| | |
0.10
| |
Borrowed funds
| | | |
82,340
|
|
|
3.64
| | | | |
88,468
|
|
|
4.68
| |
Total interest-bearing liabilities
| | | |
11,775,456
| | |
0.25
| | | | |
10,255,676
| | |
0.21
| |
Noninterest-bearing demand deposits
| | | |
5,690,838
| | | | | | | |
5,800,870
| | | | |
Other liabilities
| | | |
203,953
| | | | | | | |
176,040
| | | | |
Shareholders' equity
| | |
|
2,021,993
| | | | | | |
|
1,887,863
| | | | |
Total liabilities and shareholders' equity
| | |
$
|
19,692,240
| | | | | | |
$
|
18,120,449
| | | | |
Net interest spread
| | | | | | |
2.78
|
%
| | | | | | |
2.65
|
%
|
Net interest margin
| | | | | | |
2.87
| | | | | | | |
2.73
| |
| | | | | | | | | | | | | | | |
|
|
|
| |
| |
|
| |
Average Balances / Yields and Rates |
|
|
|
|
|
|
| UMB Financial Corporation |
(tax - equivalent basis)
| | | | | | | |
|
|
| |
(unaudited, dollars in thousands)
| | | | Nine Months Ended September 30, |
| | |
| 2016 |
|
|
| 2015 |
| | | | Average |
|
| Average | | | | | Average |
|
| Average | |
Assets | | |
| Balance |
|
| Yield/Rate |
|
|
|
| Balance |
|
| Yield/Rate |
|
Loans, net of unearned interest
| | |
$
|
9,874,298
| | |
3.83
|
%
| | |
$
|
8,163,984
| | |
3.61
|
%
|
Securities:
| | | | | | | | | | | | | | | | |
Taxable
| | | |
4,650,111
| | |
1.59
| | | | |
4,864,016
| | |
1.55
| |
Tax-exempt
| | | |
2,984,538
|
|
|
2.85
| | | | |
2,407,653
|
|
|
2.72
| |
Total securities
| | | |
7,634,649
| | |
2.08
| | | | |
7,271,669
| | |
1.94
| |
Federal funds and resell agreements
| | | |
181,854
| | |
1.42
| | | | |
62,326
| | |
0.81
| |
Interest-bearing due from banks
| | | |
425,155
| | |
0.56
| | | | |
665,667
| | |
0.35
| |
Trading securities
| | | |
39,588
|
|
|
1.70
| | | | |
34,507
|
|
|
1.51
| |
Total earning assets
| | | |
18,155,544
| | |
2.99
| | | | |
16,198,153
| | |
2.71
| |
Allowance for loan losses
| | | |
(82,975)
| | | | | | | |
(77,560)
| | | | |
Other assets
| | |
|
1,415,325
| | | | | | |
|
1,339,262
| | | | |
Total assets
| | |
$
|
19,487,894
| | | | | | |
$
|
17,459,855
| | | | |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
Interest-bearing deposits
| | |
$
|
9,392,435
| | |
0.18
|
%
| | |
$
|
8,023,331
| | |
0.17
|
%
|
Federal funds and repurchase agreements
| | | |
2,041,369
| | |
0.31
| | | | |
1,686,766
| | |
0.11
| |
Borrowed funds
| | | |
88,621
|
|
|
3.90
| | | | |
49,169
|
|
|
4.43
| |
Total interest-bearing liabilities
| | | |
11,522,425
| | |
0.23
| | | | |
9,759,266
| | |
0.18
| |
Noninterest-bearing demand deposits
| | | |
5,809,398
| | | | | | | |
5,655,878
| | | | |
Other liabilities
| | | |
174,873
| | | | | | | |
274,845
| | | | |
Shareholders' equity
| | |
|
1,981,198
| | | | | | |
|
1,769,866
| | | | |
Total liabilities and shareholders' equity
| | |
$
|
19,487,894
| | | | | | |
$
|
17,459,855
| | | | |
Net interest spread
| | | | | | |
2.76
|
%
| | | | | | |
2.53
|
%
|
Net interest margin
| | | | | | |
2.84
| | | | | | | |
2.60
| |
| | | | | | | | | | | | | | | |
|
|
|
Business Segment Information | UMB Financial Corporation |
(unaudited, dollars in thousands)
|
|
|
| Three Months Ended September 30, 2016 |
| | | Bank |
|
| Institutional Investment Management |
|
| Asset Servicing |
|
|
| Total |
Net interest income
| | |
$
|
121,963
|
|
|
$
|
-
|
|
|
$
|
2,802
|
|
|
$
|
124,765
|
Provision for loan losses
| | | |
13,000
| | | |
-
| | | |
-
| | | |
13,000
|
Noninterest income
| | | |
80,454
| | | |
19,413
| | | |
22,081
| | | |
121,948
|
Noninterest expense
| | |
|
142,836
|
|
|
|
16,874
|
|
|
|
20,073
|
|
|
|
179,783
|
Income before taxes
| | | |
46,581
| | | |
2,539
| | | |
4,810
| | | |
53,930
|
Income tax expense
| | |
|
10,427
|
|
|
|
519
|
|
|
|
1,038
|
|
|
|
11,984
|
Net income
| | |
$
|
36,154
|
|
|
$
|
2,020
|
|
|
$
|
3,772
|
|
|
$
|
41,946
|
| | | | | | | | | | | | | | | |
|
Average assets
| | |
$
|
18,384,000
| | |
$
|
61,000
| | |
$
|
1,247,000
| | |
$
|
19,692,000
|
| | | | | | | | | | | | | | | |
|
|
|
| |
| | | Three Months Ended September 30, 2015 |
| | | Bank |
|
| Institutional Investment Management |
|
| Asset Servicing |
|
| Total |
Net interest income
| | |
$
|
108,424
|
|
|
$
|
49
|
|
|
$
|
1,422
|
|
|
$
|
109,895
|
Provision for loan losses
| | | |
2,500
| | | |
-
| | | |
-
| | | |
2,500
|
Noninterest income
| | | |
65,207
| | | |
21,398
| | | |
22,493
| | | |
109,098
|
Noninterest expense
| | |
|
149,269
|
|
|
|
16,495
|
|
|
|
19,515
|
|
|
|
185,279
|
Income before taxes
| | | |
21,862
| | | |
4,952
| | | |
4,400
| | | |
31,214
|
Income tax expense
| | |
|
6,120
|
|
|
|
1,409
|
|
|
|
1,234
|
|
|
|
8,763
|
Net income
| | |
$
|
15,742
|
|
|
$
|
3,543
|
|
|
$
|
3,166
|
|
|
$
|
22,451
|
| | | | | | | | | | | | | | | |
-
|
Average assets
| | |
$
|
17,045,000
| | |
$
|
66,000
| | |
$
|
1,009,000
| | |
$
|
18,120,000
|
| | | | | | | | | | | | | | | |
|
|
|
| |
| | | Nine Months Ended September 30, 2016 |
| | | Bank |
|
| Institutional Investment Management |
|
| Asset Servicing |
|
|
| Total |
Net interest income
| | |
$
|
355,847
|
|
|
$
|
-
|
|
|
$
|
8,020
|
|
|
$
|
363,867
|
Provision for loan losses
| | | |
25,000
| | | |
-
| | | |
-
| | | |
25,000
|
Noninterest income
| | | |
235,915
| | | |
56,965
| | | |
66,865
| | | |
359,745
|
Noninterest expense
| | |
|
431,594
|
|
|
|
52,993
|
|
|
|
60,983
|
|
|
|
545,570
|
Income before taxes
| | | |
135,168
| | | |
3,972
| | | |
13,902
| | | |
153,042
|
Income tax expense
| | |
|
32,928
|
|
|
|
899
|
|
|
|
3,348
|
|
|
|
37,175
|
Net income
| | |
$
|
102,240
|
|
|
$
|
3,073
|
|
|
$
|
10,554
|
|
|
$
|
115,867
|
| | | | | | | | | | | | | | | |
|
Average assets
| | |
$
|
18,147,000
| | |
$
|
62,000
| | |
$
|
1,279,000
| | |
$
|
19,488,000
|
| | | | | | | | | | | | | | | |
|
|
|
| |
| | | Nine Months Ended September 30, 2015 |
| | | Bank |
|
| Institutional Investment Management |
|
| Asset Servicing |
|
|
| Total |
Net interest income
| | |
$
|
294,210
|
|
|
$
|
27
|
|
|
$
|
3,376
|
|
|
$
|
297,613
|
Provision for loan losses
| | | |
10,500
| | | |
-
| | | |
-
| | | |
10,500
|
Noninterest income
| | | |
210,695
| | | |
74,182
| | | |
68,978
| | | |
353,855
|
Noninterest expense
| | |
|
407,997
|
|
|
|
52,799
|
|
|
|
60,860
|
|
|
|
521,656
|
Income before taxes
| | | |
86,408
| | | |
21,410
| | | |
11,494
| | | |
119,312
|
Income tax expense
| | |
|
23,859
|
|
|
|
5,899
|
|
|
|
3,124
|
|
|
|
32,882
|
Net income
| | |
$
|
62,549
|
|
|
$
|
15,511
|
|
|
$
|
8,370
|
|
|
$
|
86,430
|
| | | | | | | | | | | | | | | |
|
Average assets
| | |
$
|
16,419,000
| | |
$
|
71,000
| | |
$
|
970,000
| | |
$
|
17,460,000
|
| | | | | | | | | | | | | | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161025006745/en/
Contacts:
UMB Financial Corporation
Media Contact:
Heather
Miller, 303-521-0861
or
Investor Relations Contact:
Kay
Gregory, 816-860-7106
Source: UMB Financial
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