Press Release

UMB Financial Corporation Reports Second Quarter Income from Continuing Operations of $57.0 Million or $1.16 per Diluted Share

Company Release - 7/30/2019 5:00 PM ET

KANSAS CITY, Mo.--(BUSINESS WIRE)-- UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced income from continuing operations for the second quarter 2019 of $57.0 million, or $1.16 per diluted share, compared to $57.7 million, or $1.18 per diluted share, in the first quarter 2019 (linked quarter) and $55.4 million, or $1.11 per diluted share, in the second quarter 2018. The reported GAAP income from continuing operations represents a decrease of 1.4 percent on a linked-quarter basis and an increase of 2.8 percent compared to the second quarter 2018.

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 $57.2 million, or $1.17 per diluted share, for the second quarter 2019, compared to $58.2 million, or $1.19 per diluted share, for the linked quarter and $56.1 million, or $1.12 per diluted share, for the second quarter 2018. These results represent a decrease of 1.7 percent on a linked-quarter basis and an increase of 2.1 percent compared to second quarter 2018.

Summary of quarterly financial results

 

UMB Financial Corporation

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2

 

 

Q1

 

 

Q2

 

 

 

2019

 

 

2019

 

 

2018

 

Income from continuing operations

 

$

56,959

 

 

$

57,744

 

 

$

55,424

 

Loss from discontinued operations

 

 

 

 

 

 

 

 

 

Net income

 

 

56,959

 

 

 

57,744

 

 

 

55,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations (diluted)

 

 

1.16

 

 

 

1.18

 

 

 

1.11

 

Losses per share from discontinued operations (diluted)

 

 

 

 

 

 

 

 

 

Earnings per share (diluted)

 

 

1.16

 

 

 

1.18

 

 

 

1.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income from continuing operations

 

 

57,245

 

 

 

58,208

 

 

 

56,079

 

Operating earnings per share from continuing operations (diluted)

 

 

1.17

 

 

 

1.19

 

 

1.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP - continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.98

%

 

 

1.02

%

 

 

1.08

%

Return on average equity

 

 

9.46

 

 

 

10.48

 

 

 

10.18

 

Efficiency ratio

 

 

70.32

 

 

 

70.00

 

 

 

70.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP - continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

0.99

%

 

 

1.03

%

 

 

1.09

%

Operating return on average equity

 

 

9.51

 

 

 

10.56

 

 

 

10.30

 

Operating efficiency ratio

 

 

70.19

 

 

 

69.78

 

 

 

69.88

 

Summary of year-to-date financial results

 

UMB Financial Corporation

 

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

 

June

 

 

June

 

 

 

YTD

 

 

YTD

 

 

 

2019

 

 

2018

 

Income from continuing operations

 

$

114,703

 

 

$

112,957

 

Loss from discontinued operations

 

 

 

 

 

(747

)

Net income

 

 

114,703

 

 

 

112,210

 

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations (diluted)

 

 

2.34

 

 

 

2.26

 

Losses per share from discontinued operations (diluted)

 

 

 

 

 

(0.01

)

Earnings per share (diluted)

 

 

2.34

 

 

 

2.25

 

 

 

 

 

 

 

 

 

 

Net operating income from continuing operations

 

 

115,453

 

 

 

115,141

 

Operating earnings per share from continuing operations (diluted)

 

 

2.36

 

 

 

2.30

 

 

 

 

 

 

 

 

 

 

GAAP - continuing operations

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.00

%

 

 

1.10

%

Return on average equity

 

 

9.95

 

 

 

10.49

 

Efficiency ratio

 

 

70.16

 

 

 

69.51

 

 

 

 

 

 

 

 

 

 

Non-GAAP - continuing operations

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

1.01

%

 

 

1.12

%

Operating return on average equity

 

 

10.01

 

 

 

10.69

 

Operating efficiency ratio

 

 

69.98

 

 

 

68.95

 

“Our results in the second quarter were driven by fee income and balance sheet expansion, which included average loan growth of 10.3 percent on an annualized basis,” said Mariner Kemper, chairman, president and chief executive officer. “Average total assets for the second quarter were $23.3 billion, an increase of 1.8 percent compared to first quarter and 12.9 percent compared to the second quarter 2018.”

Discussion of results from continuing operations

Summary of revenue

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2

 

 

Q1

 

 

Q2

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2019

 

 

2019

 

 

2018

 

 

LQ

 

 

PY

 

Net interest income

 

$

166,414

 

 

$

163,868

 

 

$

150,226

 

 

$

2,546

 

 

$

16,188

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust and securities processing

 

 

42,903

 

 

 

41,957

 

 

 

42,845

 

 

 

946

 

 

 

58

 

Trading and investment banking

 

 

5,453

 

 

 

5,581

 

 

 

4,653

 

 

 

(128

)

 

 

800

 

Service charges on deposit accounts

 

 

20,747

 

 

 

21,281

 

 

 

20,722

 

 

 

(534

)

 

 

25

 

Insurance fees and commissions

 

 

465

 

 

 

338

 

 

 

340

 

 

 

127

 

 

 

125

 

Brokerage fees

 

 

7,077

 

 

 

7,243

 

 

 

6,291

 

 

 

(166

)

 

 

786

 

Bankcard fees

 

 

16,439

 

 

 

17,067

 

 

 

17,184

 

 

 

(628

)

 

 

(745

)

(Losses) gains on sales of securities available for sale, net

 

 

(1,403

)

 

 

809

 

 

 

228

 

 

 

(2,212

)

 

 

(1,631

)

Other

 

 

13,717

 

 

 

13,106

 

 

 

8,026

 

 

 

611

 

 

 

5,691

 

Total noninterest income

 

$

105,398

 

 

$

107,382