Press Release

UMB Financial Corporation Reports Third Quarter 2020 Net Income of $73.1 Million and Announces 3.2% Dividend Increase

Company Release - 10/27/2020 5:00 PM ET

Third Quarter 2020 Highlights

  • GAAP net income of $73.1 million, or $1.52 per diluted share; net operating income of $76.4 million, or $1.59 per diluted share.
  • Pre-tax, pre-provision (PTPP) income of $99.4 million, an increase of 10.2% from the linked quarter.
  • Average loans increased 16.8% on a linked-quarter, annualized basis.
  • Average deposits grew $1.3 billion to $24.1 billion compared to the second quarter of 2020.
  • GAAP book value per share increased 13.8% to $59.43, and tangible book value per share increased 14.5% to $55.19, compared to a year ago.
  • Credit quality remained strong, with net charge-offs of just 0.13% of average loans.

KANSAS CITY, Mo.--(BUSINESS WIRE)--

UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the third quarter of 2020 of $73.1 million, or $1.52 per diluted share, compared to $60.5 million, or $1.26 per diluted share, in the second quarter of 2020 (linked quarter) and $62.4 million, or $1.27 per diluted share, in the third 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 $76.4 million, or $1.59 per diluted share, for the third quarter of 2020, compared to $63.8 million, or $1.33 per diluted share, for the linked quarter and $62.5 million, or $1.27 per diluted share, for the third 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 $99.4 million, or $2.07 per diluted share, for the third quarter of 2020, compared to $90.2 million, or $1.88 per diluted share, for the linked quarter, and $80.5 million, or $1.64 per diluted share, for the third quarter of 2019. These PTPP results represent increases of 10.2% on a linked-quarter basis and 23.5% compared to the third quarter of 2019.

Summary of quarterly financial results

 

UMB Financial Corporation

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

 

Q2

 

 

Q3

 

 

 

2020

 

 

2020

 

 

2019

 

Net income

 

$

73,092

 

 

$

60,529

 

 

$

62,382

 

Earnings per share (diluted)

 

 

1.52

 

 

 

1.26

 

 

 

1.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income

 

 

99,385

 

 

 

90,152

 

 

 

80,498

 

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

 

 

2.07

 

 

 

1.88

 

 

 

1.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income

 

 

76,434

 

 

 

63,835

 

 

 

62,525

 

Operating earnings per share (diluted)

 

 

1.59

 

 

 

1.33

 

 

 

1.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.99

%

 

 

0.87

%

 

 

1.03

%

Return on average equity

 

 

10.23

 

 

 

8.95

 

 

 

9.69

 

Efficiency ratio

 

 

66.14

 

 

 

70.20

 

 

 

70.70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

1.03

%

 

 

0.91

%

 

 

1.04

%

Operating return on average equity

 

 

10.70

 

 

 

9.44

 

 

 

9.72

 

Operating efficiency ratio

 

 

64.69

 

 

 

68.76

 

 

 

70.63

 

Summary of year-to-date financial results

 

UMB Financial Corporation

 

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

 

September

 

 

September

 

 

 

YTD

 

 

YTD

 

 

 

2020

 

 

2019

 

Net income

 

$

130,182

 

 

$

177,085

 

Earnings per share (diluted)

 

 

2.69

 

 

 

3.61

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income

 

 

273,283

 

 

 

239,547

 

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

 

 

5.65

 

 

 

4.88

 

 

 

 

 

 

 

 

 

 

Net operating income

 

 

138,388

 

 

 

177,978

 

Operating earnings per share (diluted)

 

 

2.86

 

 

 

3.63

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.62

%

 

 

1.01

%

Return on average equity

 

 

6.30

 

 

 

9.86

 

Efficiency ratio

 

 

68.40

 

 

 

70.34

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

0.66

%

 

 

1.02

%

Operating return on average equity

 

 

6.69

 

 

 

9.91

 

Operating efficiency ratio

 

 

67.18

 

 

 

70.20

 

“Our strong third quarter results were driven by several factors. Despite unprecedented circumstances, average loans, excluding Paycheck Protection Program (PPP) balances, increased 9.7% on a linked-quarter annualized basis and we saw a 47.2% decrease in modified loan balances from the prior quarter. These were modifications designed during the height of the crisis to assist our customers and provide financial relief,” said Mariner Kemper, chairman, president and chief executive officer. “In addition, we saw a 23.5% year-over-year increase in pre-tax, pre-provision income. We had year-over-year double-digit growth on both sides of our balance sheet and launched a successful inaugural subordinated debt issuance at an attractive yield, which further bolsters our capital position. And finally, as disclosed in our SEC filing on October 19, our fourth quarter is off to a great start with expected gains from our investment in Tattooed Chef, Inc.”

Summary of revenue

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

 

Q2

 

 

Q3

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2020

 

 

2020

 

 

2019

 

 

LQ

 

 

PY

 

Net interest income

 

$

184,384

 

 

$

178,229

 

 

$

168,260

 

 

$

6,155

 

 

$

16,124

 

Noninterest income: