Press Release

UMB Financial Corporation Reports Second Quarter 2020 Net Income of $60.5 Million

Company Release - 7/28/2020 5:00 PM ET

Second Quarter 2020 Highlights 

  • GAAP net income of $60.5 million, or $1.26 per diluted share; operating net income of $63.8 million, or $1.33 per diluted share.
  • Pre-tax, pre-provision (PTPP) income of $90.2 million, an increase of 7.6% from the linked quarter.
  • Total revenue increased 9.7% to $298.7 million, compared to the linked quarter.
  • Average loans, excluding Paycheck Protection Program (PPP) balances, increased 8.2% on a linked-quarter annualized basis.
  • Loans recorded under the PPP totaled $1.5 billion as of June 30, 2020.
  • Average deposits grew $2.0 billion to $22.8 billion compared to the first quarter of 2020.
  • GAAP book value per share of $57.84, a 14.5% increase, and tangible book value per share of $53.57, a 15.1% increase compared to a year ago.
  • Credit quality remained strong, with net charge-offs of just 0.15% of average loans, consistent with the company’s historical performance.

KANSAS CITY, Mo.--(BUSINESS WIRE)-- UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the second quarter of 2020 of $60.5 million, or $1.26 per diluted share, compared to a net loss of $3.4 million in the first quarter of 2020 (linked quarter) and net income of $57.0 million, or $1.16 per diluted share, in the second quarter of 2019.

Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $63.8 million, or $1.33 per diluted share, for the second quarter of 2020, compared to a net operating loss of $1.9 million for the linked quarter and net operating income of $57.2 million, or $1.17 per diluted share, for the second quarter of 2019. Pre-tax, pre-provision income (PTPP), a non-GAAP measure reconciled to net income before taxes, the nearest comparable GAAP measure, later in this release, was $90.2 million, or $1.88 per diluted share, for the second quarter of 2020, compared to $83.7 million, or $1.72 per diluted share, for the linked quarter, and $78.4 million, or $1.60 per diluted share, for the second quarter of 2019. These PTPP results represent increases of 7.6% on a linked-quarter basis and 15.0% compared to the second quarter of 2019.

Summary of quarterly financial results

 

UMB Financial Corporation

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2

 

 

Q1

 

 

Q2

 

 

 

2020

 

 

2020

 

 

2019

 

Net income (loss)

 

$

60,529

 

 

$

(3,439

)

 

$

56,959

 

Earnings (losses) per share (diluted)

 

 

1.26

 

 

 

(0.07

)

 

 

1.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income

 

 

90,152

 

 

 

83,746

 

 

 

78,425

 

Pre-tax, pre-provision earnings per share (diluted)

 

 

1.88

 

 

 

1.72

 

 

 

1.60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income (loss)

 

 

63,835

 

 

 

(1,881

)

 

 

57,245

 

Operating earnings (losses) per share (diluted)

 

 

1.33

 

 

 

(0.04

)

 

 

1.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.87

%

 

 

(0.05

)%

 

 

0.98

%

Return on average equity

 

 

8.95

 

 

 

(0.51

)

 

 

9.46

 

Efficiency ratio

 

 

70.20

 

 

 

68.93

 

 

 

70.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

0.91

%

 

 

(0.03

)%

 

 

0.99

%

Operating return on average equity

 

 

9.44

 

 

 

(0.28

)

 

 

9.51

 

Operating efficiency ratio

 

 

68.76

 

 

 

68.19

 

 

 

70.19

 

Summary of year-to-date financial results

 

UMB Financial Corporation

 

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

 

June

 

 

June

 

 

 

YTD

 

 

YTD

 

 

 

2020

 

 

2019

 

Net income

 

$

57,090

 

 

$

114,703

 

Earnings per share (diluted)

 

 

1.18

 

 

 

2.34

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income

 

 

173,898

 

 

 

159,049

 

Pre-tax, pre-provision earnings per share (diluted)

 

 

3.59

 

 

 

3.24

 

 

 

 

 

 

 

 

 

 

Net operating income

 

 

61,954

 

 

 

115,453

 

Operating earnings per share (diluted)

 

 

1.28

 

 

 

2.36

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.42

%

 

 

1.00

%

Return on average equity

 

 

4.22

 

 

 

9.95

 

Efficiency ratio

 

 

69.59

 

 

 

70.16

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

0.46

%

 

 

1.01

%

Operating return on average equity

 

 

4.58

 

 

 

10.01

 

Operating efficiency ratio

 

 

68.49

 

 

 

69.98

 

“As the country continues to navigate its way through an uncertain economic environment, our second quarter results highlight the strength of our fortress balance sheet and the quality of our underwriting practices, as evidenced by just 15 basis points of net charge-offs. Additionally, we added $1.5 billion in loans under the Paycheck Protection Program (PPP) during the quarter,” said Mariner Kemper, chairman, president and chief executive officer. “Despite the unprecedented times, average loans, excluding PPP balances, increased 8.2% on a linked-quarter annualized basis. Finally, we launched our corporate citizenship report outlining some of our 2019 environmental, social and governance efforts, which has been a collaborative effort of listening to, and engaging with, our associates, customers, and communities.”

Summary of revenue

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2

 

 

Q1

 

 

Q2

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2020

 

 

2020

 

 

2019

 

 

LQ

 

 

PY

 

Net interest income

 

$

178,229

 

 

$