Selected third quarter financial highlights:
-
Net loans for the three months ended September 30, 2014 increased 9.2
percent to $7.0 billion compared to the three months ended September
30, 2013
-
Nonperforming loans decreased to 0.46 percent of loans as of September
30, 2014, from 0.48 percent of loans as of September 30, 2013
-
Total assets under management stood at $42.1 billion as of September
30, 2014, an increase of 7.9 percent compared to the third quarter of
2013
-
Company-wide noninterest income was 59.1 percent of total revenue
-
Tier 1 capital ratio remains strong at 13.72 percent
KANSAS CITY, Mo.--(BUSINESS WIRE)--
UMB Financial Corporation (Nasdaq: UMBF), a diversified financial
holding company, announced earnings for the three months ended September
30, 2014 of $35.6 million or $0.79 per share ($0.78 diluted). This is an
increase of $1.2 million, or 3.5 percent, compared to third quarter 2013
earnings of $34.4 million or $0.85 per share ($0.83 diluted). Earnings
for the nine months ended September 30, 2014, were $93.7 million or
$2.09 per share ($2.06 diluted) or a decrease of $5.6 million, or 5.6
percent, compared to the prior year-to-date earnings of $99.3 million or
$2.47 per share ($2.44 diluted).
“In the third quarter, UMB delivered sound results against our business
model that emphasizes diverse revenue sources, high quality credit, a
strong balance sheet and low-cost funding,” said Mariner Kemper,
Chairman and Chief Executive Officer. “Noninterest income growth was
diversified across our lines of business, allowing us to remain
well-positioned in the existing low interest rate environment.
“Average loans and deposits grew, profit margins for our nonbank
segments improved, and total company revenue expanded in the third
quarter, year-over-year,” continued Kemper. “Our strategy to shift our
earning asset mix to loans remains a top priority. Commercial lending
teams in Kansas City, Dallas/Ft. Worth and Phoenix led the way with loan
growth resulting in an average loan-to-deposit ratio of 55.9 percent for
the third quarter compared to 54.4 percent in the third quarter 2013.
Margin was flat on a linked quarter basis.”
Net Interest Income and Margin
Net interest income for the third quarter of 2014 increased $2.0
million, or 2.3 percent, compared to the same period in 2013. Average
earning assets increased by $719.9 million, or 5.2 percent, compared to
the third quarter of 2013. This increase was due to a $578.0 million, or
9.0 percent, increase in average loans, and a $158.9 million, or 46.4
percent, increase in interest-bearing due from banks. Net interest
margin decreased eight basis points to 2.53 percent for the three months
ended September 30, 2014, compared to the same quarter in 2013.
Noninterest Income and Expense
Noninterest income increased $4.9 million, or 4.0 percent, for the three
months ended September 30, 2014, compared to the same period in 2013.
This increase is attributable to increased trust and securities
processing income of $5.6 million, or 8.2 percent, for the three months
ended September 30, 2014, compared to the same period in 2013. The
increase in trust and securities processing income was primarily due to
a $4.1 million, or 20.0 percent, increase in fees related to
institutional and personal investment management services, and a $2.3
million, or 11.1 percent, increase in fund administration and custody
services, offset by a $1.6 million, or 6.6 percent decrease, in advisory
fee income from the Scout Funds. Bankcard fees increased $1.9 million,
or 12.7 percent, due to an increase in interchange income. These
increases were offset by a decrease in gains on sales of securities
available for sale of $1.1 million, a decrease in equity earnings on
alternative investments related to Prairie Capital Management (“PCM”)
equity method investments of $1.4 million, and a decrease in other
noninterest income of $1.2 million for the three months ended September
30, 2014, compared to the same period in 2013.
In discussing fee businesses, Kemper said, “total assets under
management grew to $42.1 billion, assets under administration totaled
$210.6 billion, and card purchase volume topped $2.1 billion. Our
differentiated business model – with more than half of revenue coming
from fee businesses – provides us an enviable position among our peers
and the industry.”
Noninterest expense increased $8.4 million, or 5.5 percent, for the
three months ended September 30, 2014, compared to the same period in
2013. This increase is driven by higher salaries and employee benefits
expense of $6.3 million due to increases in salaries and wages of $3.2
million, or 5.9 percent, and an increase in commissions and bonuses of
$3.2 million or 20.3 percent. Equipment expense increased by $1.2
million, or 9.9 percent, due to an increase in computer hardware and
software expenses.
Balance Sheet
Average total assets for the three months ended September 30, 2014, were
$15.6 billion compared to $14.9 billion for the same period in 2013, an
increase of $0.7 billion, or 4.8 percent. Average earning assets
increased by $0.7 billion for the period, or 5.2 percent.
Average loan balances for the three months ended September 30, 2014,
increased $578.0 million, or 9.0 percent, to $7.0 billion compared to
the same period in 2013. Actual loan balances on September 30, 2014,
were $7.1 billion, an increase of $0.6 billion, or 9.2 percent, compared
to September 30, 2013. This increase was primarily driven by an increase
in commercial real estate loans of $171.7 million, or 10.5 percent, an
increase in commercial loans of $162.9 million, or 4.8 percent, and an
increase in construction loans of $123.2 million. Nonperforming loans,
defined as nonaccrual loans and restructured loans, increased to $32.7
million on September 30, 2014, from $31.3 million on September 30, 2013.
As a percentage of loans, nonperforming loans decreased to 0.46 percent
as of September 30, 2014, compared to 0.48 percent as of September 30,
2013. The company’s allowance for loan losses totaled $77.3 million, or
1.09 percent of loans, as of September 30, 2014, compared to $74.9
million, or 1.15 percent of loans, as of September 30, 2013.
For the three months ended September 30, 2014, average securities,
including trading securities, totaled $7.0 billion. This is a decrease
of $31.5 million, or 0.4 percent, from the same period in 2013.
Average total deposits increased $717.1 million, or 6.1 percent, to
$12.5 billion for the three months ended September 30, 2014, compared to
the same period in 2013. Average noninterest-bearing demand deposits
increased $390.9 million, or 8.4 percent, compared to 2013. Average
interest-bearing deposits increased by $326.2 million, or 4.6 percent,
in 2014 as compared to 2013. Total deposits as of September 30, 2014,
were $12.8 billion, compared to $13.0 billion as of September 30, 2013,
a 2.2 percent decrease. Also, as of September 30, 2014,
noninterest-bearing demand deposits were 42.9 percent of total deposits,
compared to 43.2 percent as of September 30, 2014.
As of September 30, 2014, UMB had total shareholders’ equity of $1.6
billion, an increase of 10.4 percent as compared to the same period in
2013.
Year-to-Date
Earnings for the nine months ended September 30, 2014, were $93.7
million or $2.09 per share ($2.06 diluted). This is a decrease of $5.6
million, or 5.6 percent, compared to the prior year-to-date earnings of
$99.3 million or $2.47 per share ($2.44 diluted).
Net interest income for the nine months ended September 30, 2014,
increased $11.8 million, or 4.8 percent, compared to the same period in
2013. Average earning assets increased by $1.1 billion, or 7.7 percent,
compared to the same period in 2013. This increase was due to a $726.0
million, or 11.8 percent, increase in average loans, and a $354.2
million, or 61.0 percent, increase in interest-bearing due from banks.
Net interest margin decreased eight basis points to 2.48 percent for the
nine months ended September 30, 2014, compared to the same period in
2013.
Noninterest income increased $27.2 million, or 7.6 percent, to $383.4
million for the nine months ended September 30, 2014, as compared to the
same period in 2013. The increase in noninterest income is primarily
driven by increased trust and securities processing income of $24.7
million, or 12.7 percent. The increase in trust and securities
processing income was primarily due to a $10.9 million, or 18.1 percent,
increase in fees related to institutional and personal investment
management services, a $6.7 million, or 11.4 percent, increase in fund
administration and custody services, and a $4.8 million, or 7.1 percent,
increase in advisory fee income from the Scout Funds. Additional
increases in noninterest income include a $4.6 million increase in
equity earnings on alternative investments due to unrealized gains on
PCM equity method investments and a $2.9 million, or 28.1 percent,
increase in other noninterest income. The increase in other noninterest
income is driven by a $2.8 million gain on the sale of a branch property
during the first nine months of 2014 compared to the same period in
2013. These increases were offset by a decrease in gains on sales of
securities available for sale of $4.5 million in the first nine months
of 2014 compared to the same period in 2013.
Noninterest expense increased $46.5 million, or 10.2 percent, for the
nine months ended September 30, 2014, compared to the same period in
2013. This increase is driven by an increase in salaries and employee
benefits expense of $17.5 million, or 7.0 percent, a $20.3 million
increase in the contingency reserve, and a $5.0 million, or 24.1
percent, increase in other noninterest expense. Other noninterest
expense increased $3.0 million due to fair value adjustments on
contingent consideration liabilities on acquisitions and $1.3 million
due to fair value adjustments on interest rate swap transactions.
Dividend Declaration
At the company’s quarterly board meeting, the Board of Directors
declared a $0.235 quarterly cash dividend, which represents a 4.4
percent increase compared to the last quarterly dividend, payable on
January 2, 2015, to shareholders of record at the close of business on
December 10, 2014.
Conference Call
The company plans to host a conference call to discuss its 2014 third
quarter earnings results on Oct. 29, 2014, at 8:30 a.m. (CT).
Interested parties may access the call by dialing (toll-free)
888-337-8169 or (U.S.) 719-325-2144 and entering conference
identification number 8835300. The live call can also be accessed by
visiting the investor relations area of umb.com
or by using the following the link:
http://event.on24.com/r.htm?e=861949&s=1&k=BF04BE655704A30A88C6CEEF87C86D48
A replay of the conference call may be heard until Nov. 12, 2014, by
calling (toll-free) 888-203-1112 or (U.S.) 719-457-0820. The replay pass
code required for playback is 8835300. The call replay may also be
accessed via the company's website umb.com
by visiting the investor relations area.
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.
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, 2013, 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 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 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. 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.
|
|
| | |
| Consolidated Balance Sheets |
|
|
| UMB Financial Corporation |
|
(unaudited, dollars in thousands)
| | | | |
|
| | |
| | | | September 30, |
Assets | | |
| 2014 | | |
| 2013 |
| | | | | | | |
|
|
Loans
| | |
$
|
7,103,163
| | |
$
|
6,506,902
|
|
Allowance for loan losses
| | |
|
(77,316)
|
|
|
|
(74,938)
|
|
Net loans
| | |
|
7,025,847
|
|
|
|
6,431,964
|
|
Loans held for sale
| | | |
1,718
| | | |
3,033
|
|
Investment securities:
| | | | | | | | |
|
Available for sale
| | | |
6,759,803
| | | |
6,697,997
|
|
Held to maturity
| | | |
237,961
| | | |
175,993
|
|
Trading securities
| | | |
31,790
| | | |
54,994
|
|
Federal Reserve Bank Stock and other
| | |
|
71,192
|
|
|
|
31,478
|
|
Total investment securities
| | |
|
7,100,746
|
|
|
|
6,960,462
|
|
Federal funds and resell agreements
| | | |
65,255
| | | |
54,434
|
|
Interest-bearing due from banks
| | | |
986,428
| | | |
1,357,881
|
|
Cash and due from banks
| | | |
395,956
| | | |
604,592
|
|
Bank premises and equipment, net
| | | |
257,341
| | | |
247,827
|
|
Accrued income
| | | |
77,263
| | | |
72,030
|
|
Goodwill
| | | |
209,758
| | | |
209,758
|
|
Other intangibles
| | | |
46,966
| | | |
58,749
|
|
Other assets
| | |
|
116,750
|
|
|
|
183,503
|
|
Total assets
| | |
$
|
16,284,028
|
|
|
$
|
16,184,233
|
| | | | | | | |
|
| | | | | | | |
|
Liabilities | | | | | | | | |
|
Deposits:
| | | | | | | | |
|
Noninterest-bearing demand
| | |
$
|
5,467,810
| | |
$
|
5,628,258
|
|
Interest-bearing demand and savings
| | | |
6,324,535
| | | |
6,248,189
|
|
Time deposits under $100,000 | | | |
434,863
| | | |
593,275
|
|
Time deposits of $100,000 or more
| | |
|
526,229
|
|
|
|
571,322
|
|
Total deposits
| | |
|
12,753,437
|
|
|
|
13,041,044
|
|
Federal funds and repurchase agreements
| | | |
1,711,809
| | | |
1,527,964
|
|
Short-term debt
| | | |
-
| | | |
211
|
|
Long-term debt
| | | |
7,067
| | | |
5,130
|
|
Accrued expenses and taxes
| | | |
161,194
| | | |
130,398
|
|
Other liabilities
| | |
|
35,172
|
|
|
|
15,831
|
|
Total liabilities
| | |
|
14,668,679
|
|
|
|
14,720,578
|
| | | | | | | |
|
Shareholders' Equity | | | | | | | | |
|
Common stock
| | | |
55,057
| | | |
55,057
|
|
Capital surplus
| | | |
891,353
| | | |
862,153
|
|
Retained earnings
| | | |
947,664
| | | |
860,138
|
|
Accumulated other comprehensive income (loss)
| | | |
1,827
| | | |
(15,678)
|
|
Treasury stock
| | |
|
(280,552)
|
|
|
|
(298,015)
|
|
Total shareholders' equity
| | |
|
1,615,349
|
|
|
|
1,463,655
|
|
Total liabilities and shareholders' equity
| | |
$
|
16,284,028
|
|
|
$
|
16,184,233
|
| | | | | | | |
|
|
| | |
| | |
| | |
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, |
| |
| 2014 | |
| 2013 | |
| 2014 | |
| 2013 |
Interest Income | | | | | | | | | | | | |
|
Loans
| |
$
|
61,636
| |
$
|
59,125
| |
$
|
180,844
| |
$
|
170,459
|
|
Securities:
| | | | | | | | | | | | |
|
Taxable Interest
| | |
18,884
| | |
19,017
| | |
56,866
| | |
56,325
|
|
Tax-exempt interest
| |
|
9,745
|
|
|
10,338
|
|
|
29,450
|
|
|
30,216
|
|
Total securities income
| | |
28,629
| | |
29,355
| | |
86,316
| | |
86,541
|
|
Federal funds and resell agreements
| | |
87
| | |
62
| | |
166
| | |
126
|
|
Interest bearing due from banks
| | |
426
| | |
276
| | |
2,015
| | |
1,276
|
|
Trading securities
| |
|
39
|
|
|
278
|
|
|
311
|
|
|
808
|
|
Total interest income
| |
|
90,817
|
|
|
89,096
|
|
|
269,653
|
|
|
259,210
|
| | | | | | | | | | | |
|
Interest Expense | | | | | | | | | | | | |
|
Deposits
| | |
3,015
| | |
3,097
| | |
9,166
| | |
10,222
|
|
Federal funds and repurchase agreements
| | |
358
| | |
385
| | |
1,293
| | |
1,443
|
|
Other
| |
|
(82)
|
|
|
69
|
|
|
53
|
|
|
190
|
|
Total interest expense
| |
|
3,291
|
|
|
3,551
|
|
|
10,512
|
|
|
11,855
|
|
Net interest income
| | |
87,526
| | |
85,545
| | |
259,141
| | |
247,355
|
|
Provision for loan losses
| |
|
4,500
|
|
|
6,500
|
|
|
14,000
|
|
|
13,500
|
|
Net interest income after provision for loan losses
| |
|
83,026
|
|
|
79,045
|
|
|
245,141
|
|
|
233,855
|
| | | | | | | | | | | |
|
Noninterest Income | | | | | | | | | | | | |
|
Trust and securities processing
| | |
74,062
| | |
68,465
| | |
218,982
| | |
194,263
|
|
Trading and investment banking
| | |
3,826
| | |
3,792
| | |
14,558
| | |
16,324
|
|
Service charges on deposits
| | |
21,634
| | |
21,036
| | |
63,819
| | |
63,441
|
|
Insurance fees and commissions
| | |
911
| | |
869
| | |
2,246
| | |
3,066
|
|
Brokerage fees
| | |
3,276
| | |
2,895
| | |
8,166
| | |
8,727
|
|
Bankcard fees
| | |
17,121
| | |
15,196
| | |
49,929
| | |
47,666
|
|
Gains on sales of securities available for sale
| | |
26
| | |
1,140
| | |
4,065
| | |
8,552
|
|
Equity earnings on alternative investments
| | |
2,470
| | |
3,876
| | |
8,462
| | |
3,876
|
|
Other
| |
|
3,149
|
|
|
4,356
|
|
|
13,213
|
|
|
10,311
|
|
Total noninterest income
| |
|
126,475
|
|
|
121,625
|
|
|
383,440
|
|
|
356,226
|
| | | | | | | | | | | |
|
Noninterest Expense | | | | | | | | | | | | |
|
Salaries and employee benefits
| | |
90,041
| | |
83,733
| | |
268,454
| | |
251,000
|
|
Occupancy, net
| | |
10,475
| | |
10,016
| | |
29,885
| | |
29,175
|
|
Equipment
| | |
13,408
| | |
12,205
| | |
38,991
| | |
36,012
|
|
Supplies, postage and telephone
| | |
4,817
| | |
4,761
| | |
15,008
| | |
14,611
|
|
Marketing and business development
| | |
6,057
| | |
5,536
| | |
16,966
| | |
15,514
|
|
Processing fees
| | |
14,085
| | |
14,471
| | |
42,553
| | |
42,854
|
|
Legal and consulting
| | |
4,496
| | |
4,433
| | |
12,500
| | |
12,877
|
|
Bankcard
| | |
4,097
| | |
4,561
| | |
12,782
| | |
13,817
|
|
Amortization of other intangibles
| | |
3,043
| | |
3,245
| | |
9,219
| | |
10,054
|
|
Regulatory fees
| | |
2,577
| | |
2,670
| | |
7,802
| | |
7,066
|
|
Contingency Reserve
| | |
-
| | |
-
| | |
20,272
| | |
-
|
|
Other
| |
|
8,365
|
|
|
7,432
|
|
|
25,781
|
|
|
20,772
|
|
Total noninterest expense
| |
|
161,461
|
|
|
153,063
|
|
|
500,213
|
|
|
453,752
|
| | | | | | | | | | | |
|
|
Income before income taxes
| |
|
48,040
|
|
|
47,607
|
|
|
128,368
|
|
|
136,329
|
|
Income tax provision
| |
|
12,410
|
|
|
13,175
|
|
|
34,653
|
|
|
37,027
|
| Net income | |
$
|
35,630
|
|
$
|
34,432
|
|
$
|
93,715
|
|
$
|
99,302
|
Per Share Data | | | | | | | | | | | | |
|
Net income- Basic
| |
$
|
0.79
| |
$
|
0.85
| |
$
|
2.09
| |
$
|
2.47
|
|
Net income- Diluted
| | |
0.78
| | |
0.83
| | |
2.06
| | |
2.44
|
|
Dividends
| | |
0.225
| | |
0.215
| | |
0.675
| | |
0.645
|
|
Weighted average shares outstanding
| | |
44,890,309
| | |
40,698,700
| | |
44,819,125
| | |
40,185,351
|
| | | | | | | | | | | |
|
|
|
| |
| Statements of Consolidated Comprehensive Income (Loss) |
|
| UMB Financial Corporation |
|
(unaudited, dollars in thousands, except per share data)
| | | |
|
|
| |
|
| | |
| | | Three Months
Ended September 30, | | | Nine Months
Ended September 30, |
| | | 2014 |
|
| 2013 |
|
| 2014 |
|
| 2013 |
|
Net Income
| | |
$
|
35,630
|
|
|
$
|
34,432
| | |
$
|
93,715
| | |
$
|
99,302
|
|
Other comprehensive (loss) income, net of tax:
| | | | | | | | | | | | | | | | |
|
Unrealized (losses) gains on securities:
| | | | | | | | | | | | | | | | |
|
Change in unrealized holding (losses) gains, net
| | | |
(24,213)
| | | |
11,694
| | | |
59,156
| | | |
(151,721)
|
|
Less: Reclassifications adjustment for gains included in net income
| | |
|
(26)
|
|
|
|
(1,140)
|
|
|
|
(4,065)
|
|
|
|
(8,552)
|
|
Change in unrealized (losses) gains on securities during the period
| | | |
(24,239)
| | | |
10,554
| | | |
55,091
| | | |
(160,273)
|
|
Income tax benefit (expense)
| | |
|
9,165
|
|
|
|
(4,005)
|
|
|
|
(20,624)
|
|
|
|
59,007
|
|
Other comprehensive (loss) income
| | |
|
(15,074)
|
|
|
|
6,549
|
|
|
|
34,467
|
|
|
|
(101,266)
|
|
Comprehensive income (loss)
| | |
$
|
20,556
|
|
|
$
|
40,981
|
|
|
$
|
128,182
|
|
|
$
|
(1,964)
|
| | | | | | | | | | | | | | | |
|
|
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| 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, 2013 | | |
$
|
55,057
| | |
$
|
732,069
| | |
$
|
787,015
| | |
$
|
85,588
| | |
$
|
(380,384)
| | |
$
|
1,279,345
|
|
Total comprehensive income (loss)
| | | |
-
| | | |
-
| | | |
99,302
| | | |
(101,266)
| | | |
-
| | | |
(1,964)
|
|
Cash dividends ($0.645 per share)
| | | |
-
| | | |
-
| | | |
(26,179)
| | | |
-
| | | |
-
| | | |
(26,179)
|
|
Purchase of treasury stock
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(2,551)
| | | |
(2,551)
|
|
Issuance of equity awards
| | | |
-
| | | |
(2,189)
| | | |
-
| | | |
-
| | | |
2,638
| | | |
449
|
|
Recognition of equity based compensation
| | | |
-
| | | |
6,319
| | | |
-
| | | |
-
| | | |
-
| | | |
6,319
|
|
Net tax benefit related to equity compensation plans
| | | |
-
| | | |
963
| | | |
-
| | | |
-
| | | |
-
| | | |
963
|
|
Sale of treasury stock
| | | |
-
| | | |
367
| | | |
-
| | | |
-
| | | |
172
| | | |
539
|
|
Exercise of stock options
| | | |
-
| | | |
2,916
| | | |
-
| | | |
-
| | | |
2,641
| | | |
5,557
|
|
Common stock issuance
| | |
|
-
|
|
|
|
121,708
|
|
|
|
-
|
|
|
|
-
|
|
|
|
79,469
|
|
|
|
201,177
|
|
Balance – September 30, 2013 | | |
$
|
55,057
|
|
|
$
|
862,153
|
|
|
$
|
860,138
|
|
|
$
|
(15,678)
|
|
|
$
|
(298,015)
|
|
|
$
|
1,463,655
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Balance - January 1, 2014 | | |
$
|
55,057
| | |
$
|
882,407
| | |
$
|
884,630
| | |
$
|
(32,640)
| | |
$
|
(283,389)
| | |
$
|
1,506,065
|
|
Total comprehensive income
| | | |
-
| | | |
-
| | | |
93,715
| | | |
34,467
| | | |
-
| | | |
128,182
|
|
Cash dividends ($0.675 per share)
| | | |
-
| | | |
-
| | | |
(30,681)
| | | |
-
| | | |
-
| | | |
(30,681)
|
|
Purchase of treasury stock
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(3,858)
| | | |
(3,858)
|
|
Issuance of equity awards
| | | |
-
| | | |
(2,624)
| | | |
-
| | | |
-
| | | |
3,114
| | | |
490
|
|
Recognition of equity based compensation
| | | |
-
| | | |
7,224
| | | |
-
| | | |
-
| | | |
-
| | | |
7,224
|
|
Net tax benefit related to equity compensation plans
| | | |
-
| | | |
1,507
| | | |
-
| | | |
-
| | | |
-
| | | |
1,507
|
|
Sale of treasury stock
| | | |
-
| | | |
455
| | | |
-
| | | |
-
| | | |
244
| | | |
699
|
|
Exercise of stock options
| | |
|
-
|
|
|
|
2,384
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,337
|
|
|
|
5,721
|
|
Balance – September 30, 2014 | | |
$
|
55,057
|
|
|
$
|
891,353
|
|
|
$
|
947,664
|
|
|
$
|
1,827
|
|
|
$
|
(280,552)
|
|
|
$
|
1,615,349
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
| | |
|
| | | |
| Average Balances / Yields and Rates |
|
|
|
|
|
|
| UMB Financial Corporation |
|
|
(tax - equivalent basis)
| | | | | | | | |
|
| | |
|
| | |
|
(unaudited, dollars in thousands)
| | | | Three Months Ended September 30, |
| | |
| 2014 |
|
|
| 2013 |
| | | | Average | | | Average | | | | | Average | | | Average | |
| Assets | | |
| Balance |
|
| Yield/Rate |
|
|
|
| Balance |
|
| Yield/Rate |
|
|
Loans, net of unearned interest
| | |
$
|
6,996,363
| | |
3.50
|
%
| | |
$
|
6,418,368
| | |
3.65
|
%
|
|
Securities:
| | | | | | | | | | | | | | | | |
|
Taxable
| | | |
4,864,337
| | |
1.54
| | | | |
4,835,235
| | |
1.56
| |
|
Tax-exempt
| | | |
2,128,281
|
|
|
2.80
| | | | |
2,150,108
|
|
|
2.95
| |
|
Total securities
| | | |
6,992,618
| | |
1.92
| | | | |
6,985,343
| | |
1.99
| |
|
Federal funds and resell agreements
| | | |
61,161
| | |
0.56
| | | | |
46,593
| | |
0.53
| |
|
Interest-bearing due from banks
| | | |
501,157
| | |
0.34
| | | | |
342,307
| | |
0.32
| |
|
Trading securities
| | | |
24,550
|
|
|
0.95
| | | | |
63,302
|
|
|
1.85
| |
|
Total earning assets
| | | |
14,575,849
| | |
2.62
| | | | |
13,855,913
| | |
2.71
| |
|
Allowance for loan losses
| | | |
(77,347)
| | | | | | | |
(72,792)
| | | | |
|
Other assets
| | |
|
1,139,820
| | | | | | |
|
1,140,648
| | | | |
|
Total assets
| | |
$
|
15,638,322
| | | | | | |
$
|
14,923,769
| | | | |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
|
Interest-bearing deposits
| | |
$
|
7,444,093
| | |
0.16
|
%
| | |
$
|
7,117,927
| | |
0.17
|
%
|
|
Federal funds and repurchase agreements
| | | |
1,347,665
| | |
0.11
| | | | |
1,764,082
| | |
0.09
| |
|
Borrowed funds
| | | |
5,728
|
|
|
(5.68)
| | | | |
4,688
|
|
|
5.84
| |
|
Total interest-bearing liabilities
| | | |
8,797,486
| | |
0.15
| | | | |
8,886,697
| | |
0.16
| |
|
Noninterest-bearing demand deposits
| | | |
5,060,662
| | | | | | | |
4,669,742
| | | | |
|
Other liabilities
| | | |
167,704
| | | | | | | |
107,000
| | | | |
|
Shareholders' equity
| | |
|
1,612,470
| | | | | | |
|
1,260,330
| | | | |
|
Total liabilities and shareholders' equity
| | |
$
|
15,638,322
| | | | | | |
$
|
14,923,769
| | | | |
|
Net interest spread
| | | | | | |
2.47
|
%
| | | | | | |
2.55
|
%
|
|
Net interest margin
| | | | | | |
2.53
| | | | | | | |
2.61
| |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| | | | Nine Months Ended September 30, |
| | |
| 2014 |
|
|
| 2013 |
| | | | Average | | | Average | | | | | Average | | | Average | |
| Assets | | |
| Balance |
|
| Yield/Rate |
|
|
|
| Balance |
|
| Yield/Rate |
|
|
Loans, net of unearned interest
| | |
$
|
6,858,874
| | |
3.53
|
%
| | |
$
|
6,132,892
| | |
3.72
|
%
|
|
Securities:
| | | | | | | | | | | | | | | | |
|
Taxable
| | | |
4,862,439
| | |
1.56
| | | | |
4,894,956
| | |
1.54
| |
|
Tax-exempt
| | | |
2,114,251
|
|
|
2.87
| | | | |
2,086,482
|
|
|
2.99
| |
|
Total securities
| | | |
6,976,690
| | |
1.96
| | | | |
6,981,438
| | |
1.97
| |
|
Federal funds and resell agreements
| | | |
40,461
| | |
0.55
| | | | |
31,519
| | |
0.53
| |
|
Interest-bearing due from banks
| | | |
934,532
| | |
0.29
| | | | |
580,309
| | |
0.29
| |
|
Trading securities
| | | |
33,257
|
|
|
1.46
| | | | |
62,470
|
|
|
1.89
| |
|
Total earning assets
| | | |
14,843,814
| | |
2.57
| | | | |
13,788,628
| | |
2.67
| |
|
Allowance for loan losses
| | | |
(76,100)
| | | | | | | |
(71,438)
| | | | |
|
Other assets
| | |
|
1,153,074
| | | | | | |
|
1,144,064
| | | | |
|
Total assets
| | |
$
|
15,920,788
| | | | | | |
$
|
14,861,254
| | | | |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
|
Interest-bearing deposits
| | |
$
|
7,511,115
| | |
0.16
|
%
| | |
$
|
7,026,963
| | |
0.19
|
%
|
|
Federal funds and repurchase agreements
| | | |
1,534,966
| | |
0.11
| | | | |
1,762,087
| | |
0.11
| |
|
Borrowed funds
| | | |
5,735
|
|
|
1.24
| | | | |
4,888
|
|
|
5.20
| |
|
Total interest-bearing liabilities
| | | |
9,051,816
| | |
0.16
| | | | |
8,793,938
| | |
0.18
| |
|
Noninterest-bearing demand deposits
| | | |
5,126,660
| | | | | | | |
4,644,338
| | | | |
|
Other liabilities
| | | |
160,140
| | | | | | | |
145,533
| | | | |
|
Shareholders' equity
| | |
|
1,582,172
| | | | | | |
|
1,277,445
| | | | |
|
Total liabilities and shareholders' equity
| | |
$
|
15,920,788
| | | | | | |
$
|
14,861,254
| | | | |
|
Net interest spread
| | | | | | |
2.41
|
%
| | | | | | |
2.49
|
%
|
|
Net interest margin
| | | | | | |
2.48
| | | | | | | |
2.56
| |
| | | | | | | | | | | | | | | |
|
|
|
| | | |
|
| | | |
| THIRD QUARTER 2014 | | | | | | | | | | |
| FINANCIAL HIGHLIGHTS |
|
|
| UMB Financial Corporation |
|
(unaudited, dollars in thousands, except share and per share data)
| | | | | | |
| | | | | | | | | |
|
| Nine Months Ended September 30 | | |
| 2014 |
|
|
|
| 2013 |
|
|
Net interest income
| | |
$
|
259,141
| | | |
$
|
247,355
| |
|
Provision for loan losses
| | | |
14,000
| | | | |
13,500
| |
|
Noninterest income
| | | |
383,440
| | | | |
356,226
| |
|
Noninterest expense
| | | |
500,213
| | | | |
453,752
| |
|
Income before income taxes
| | | |
128,368
| | | | |
136,329
| |
|
Net income
| | | |
93,715
| | | | |
99,302
| |
|
Net income per share - Basic
| | | |
2.09
| | | | |
2.47
| |
|
Net income per share - Diluted
| | | |
2.06
| | | | |
2.44
| |
|
Return on average assets
| | | |
0.79
|
%
| | | |
0.89
|
%
|
|
Return on average equity
| | | |
7.92
|
%
| | | |
10.39
|
%
|
| | | | | | | | | |
|
| Three Months Ended September 30 | | | | | | | | | | |
|
Net interest income
| | |
$
|
87,526
| | | |
$
|
85,545
| |
|
Provision for loan losses
| | | |
4,500
| | | | |
6,500
| |
|
Noninterest income
| | | |
126,475
| | | | |
121,625
| |
|
Noninterest expense
| | | |
161,461
| | | | |
153,063
| |
|
Income before income taxes
| | | |
48,040
| | | | |
47,607
| |
|
Net income
| | | |
35,630
| | | | |
34,432
| |
|
Net income per share - Basic
| | | |
0.79
| | | | |
0.85
| |
|
Net income per share - Diluted
| | | |
0.78
| | | | |
0.83
| |
|
Return on average assets
| | | |
0.90
|
%
| | | |
0.92
|
%
|
|
Return on average equity
| | | |
8.77
|
%
| | | |
10.84
|
%
|
| | | | | | | | | |
|
| At September 30 | | | | | | | | | | |
|
Assets
| | |
$
|
16,284,028
| | | |
$
|
16,184,233
| |
|
Loans, net of unearned interest
| | | |
7,103,163
| | | | |
6,506,902
| |
|
Securities
| | | |
7,100,746
| | | | |
6,960,462
| |
|
Deposits
| | | |
12,753,437
| | | | |
13,041,044
| |
|
Shareholders' equity
| | | |
1,615,349
| | | | |
1,463,655
| |
|
Book value per share
| | | |
35.51
| | | | |
32.85
| |
|
Market price per share
| | | |
54.55
| | | | |
54.34
| |
|
Equity to assets
| | | |
9.92
|
%
| | | |
9.04
|
%
|
|
Allowance for loan losses
| | |
$
|
77,316
| | | |
$
|
74,938
| |
|
As a % of loans
| | | |
1.09
|
%
| | | |
1.15
|
%
|
|
Nonaccrual and restructured loans
| | |
$
|
32,662
| | | |
$
|
31,260
| |
|
As a % of loans
| | | |
0.46
|
%
| | | |
0.48
|
%
|
|
Loans over 90 days past due
| | |
$
|
4,678
| | | |
$
|
3,780
| |
|
As a % of loans
| | | |
0.07
|
%
| | | |
0.06
|
%
|
|
Other real estate owned
| | |
$
|
1,369
| | | |
$
|
1,441
| |
|
Net loan charge-offs quarter-to-date
| | |
$
|
3,985
| | | |
$
|
3,209
| |
|
As a % of average loans
| | | |
0.23
|
%
| | | |
0.20
|
%
|
|
Net loan charge-offs year-to-date
| | |
$
|
11,434
| | | |
$
|
9,988
| |
|
As a % of average loans
| | | |
0.22
|
%
| | | |
0.22
|
%
|
| | | | | | | | | |
|
|
Common shares outstanding
| | | |
45,485,313
| | | | |
44,554,834
| |
| | | | | | | | | |
|
| Average Balances | | | | | | | | | | |
| Nine Months Ended September 30 | | | | | | | | | | |
|
Assets
| | |
$
|
15,920,788
| | | |
$
|
14,861,254
| |
|
Loans, net of unearned interest
| | | |
6,858,874
| | | | |
6,132,892
| |
|
Securities
| | | |
7,009,947
| | | | |
7,043,908
| |
|
Deposits
| | | |
12,637,775
| | | | |
11,671,301
| |
|
Shareholders' equity
| | | |
1,582,172
| | | | |
1,277,445
| |
| | | | | | | | | |
|
|
|
| | | | |
| Business Segment Information |
|
|
|
| UMB Financial Corporation |
|
(unaudited, dollars in thousands)
| | | | | |
|
| | |
| | | |
|
| | |
|
|
| Three Months Ended September 30, 2014 |
| | | Bank |
|
| Payment
Solutions |
|
|
| Institutional
Investment
Management |
|
| Asset
Servicing |
|
|
| Total |
|
Net interest income
| | |
$
|
72,906
| | |
$
|
13,442
| | | |
$
|
-
| | |
$
|
1,178
| | |
$
|
87,526
|
|
Provision for loan losses
| | | |
2,446
| | | |
2,054
| | | | |
-
| | | |
-
| | | |
4,500
|
|
Noninterest income
| | | |
48,385
| | | |
21,579
| | | | |
33,919
| | | |
22,592
| | | |
126,475
|
|
Noninterest expense
| | |
|
99,307
|
|
|
|
22,056
|
|
|
|
|
20,910
|
|
|
|
19,188
|
|
|
|
161,461
|
|
Income before taxes
| | | |
19,538
| | | |
10,911
| | | | |
13,009
| | | |
4,582
| | | |
48,040
|
|
Income tax expense
| | |
|
5,081
|
|
|
|
2,795
|
|
|
|
|
3,350
|
|
|
|
1,184
|
|
|
|
12,410
|
|
Net income
| | |
$
|
14,457
|
|
|
$
|
8,116
|
|
|
|
$
|
9,659
|
|
|
$
|
3,398
|
|
|
$
|
35,630
|
| | | | | | | | | | | | | | | | | | | | |
|
|
Average assets
| | |
$
|
11,639,000
| | |
$
|
2,823,000
| | | |
$
|
74,000
| | |
$
|
1,102,000
| | |
$
|
15,638,000
|
| | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | |
|
| | | Three Months Ended September 30, 2013 |
| | | Bank |
|
| Payment
Solutions |
|
| Institutional
Investment
Management |
|
| Asset
Servicing |
|
|
| Total |
|
Net interest income
| | |
$
|
73,419
| | |
$
|
11,587
| | | |
$
|
(11)
| | |
$
|
550
| | |
$
|
85,545
|
|
Provision for loan losses
| | | |
1,833
| | | |
4,667
| | | | |
-
| | | |
-
| | | |
6,500
|
|
Noninterest income
| | | |
48,945
| | | |
18,409
| | | | |
33,842
| | | |
20,429
| | | |
121,625
|
|
Noninterest expense
| | |
|
93,150
|
|
|
|
21,658
|
|
|
|
|
21,054
|
|
|
|
17,201
|
|
|
|
153,063
|
|
Income before taxes
| | | |
27,381
| | | |
3,671
| | | | |
12,777
| | | |
3,778
| | | |
47,607
|
|
Income tax expense
| | |
|
6,922
|
|
|
|
1,283
|
|
|
|
|
3,506
|
|
|
|
1,464
|
|
|
|
13,175
|
|
Net income
| | |
$
|
20,459
|
|
|
$
|
2,388
|
|
|
|
$
|
9,271
|
|
|
$
|
2,314
|
|
|
$
|
34,432
|
| | | | | | | | | | | | | | | | | | | | |
|
|
Average assets
| | |
$
|
11,128,000
| | |
$
|
1,727,000
| | | |
$
|
76,000
| | |
$
|
1,993,000
| | |
$
|
14,924,000
|
| | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | |
|
| | | Nine Months Ended September 30, 2014 |
| | | Bank |
|
| Payment
Solutions |
| Institutional
Investment
Management | Asset
Servicing |
| Total |
|
Net interest income
| | |
$
|
216,508
| | |
$
|
38,220
| | | |
$
|
(3)
| | |
$
|
4,416
| | |
$
|
259,141
|
|
Provision for loan losses
| | | |
7,558
| | | |
6,442
| | | | |
-
| | | |
-
| | | |
14,000
|
|
Noninterest income
| | | |
151,843
| | | |
62,998
| | | | |
102,014
| | | |
66,585
| | | |
383,440
|
|
Noninterest expense
| | |
|
308,013
|
|
|
|
67,680
|
|
|
|
|
68,848
|
|
|
|
55,672
|
|
|
|
500,213
|
|
Income before taxes
| | | |
52,780
| | | |
27,096
| | | | |
33,163
| | | |
15,329
| | | |
128,368
|
|
Income tax expense
| | |
|
14,326
|
|
|
|
7,272
|
|
|
|
|
8,887
|
|
|
|
4,168
|
|
|
|
34,653
|
|
Net income
| | |
$
|
38,454
|
|
|
$
|
19,824
|
|
|
|
$
|
24,276
|
|
|
$
|
11,161
|
|
|
$
|
93,715
|
| | | | | | | | | | | | | | | | | | | | |
|
|
Average assets
| | |
$
|
11,914,000
| | |
$
|
2,350,000
| | | |
$
|
74,000
| | |
$
|
1,583,000
| | |
$
|
15,921,000
|
| | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | |
|
| | | Nine Months Ended September 30, 2013 |
| | | Bank |
|
| Payment
Solutions |
| Institutional
Investment
Management |
|
| Asset
Servicing |
|
|
| Total |
|
Net interest income
| | |
$
|
211,238
| | |
$
|
34,327
| | | |
$
|
(22)
| | |
$
|
1,812
| | |
$
|
247,355
|
|
Provision for loan losses
| | | |
3,770
| | | |
9,730
| | | | |
-
| | | |
-
| | | |
13,500
|
|
Noninterest income
| | | |
148,129
| | | |
56,486
| | | | |
91,550
| | | |
60,061
| | | |
356,226
|
|
Noninterest expense
| | |
|
277,226
|
|
|
|
63,626
|
|
|
|
|
58,754
|
|
|
|
54,146
|
|
|
|
453,752
|
|
Income before taxes
| | | |
78,371
| | | |
17,457
| | | | |
32,774
| | | |
7,727
| | | |
136,329
|
|
Income tax expense
| | |
|
19,629
|
|
|
|
5,464
|
|
|
|
|
8,880
|
|
|
|
3,054
|
|
|
|
37,027
|
|
Net income
| | |
$
|
58,742
|
|
|
$
|
11,993
|
|
|
|
$
|
23,894
|
|
|
$
|
4,673
|
|
|
$
|
99,302
|
| | | | | | | | | | | | | | | | | | | | |
|
|
Average assets
| | |
$
|
11,145,000
| | |
$
|
1,770,000
|
| | |
$
|
79,000
| | |
$
|
1,867,000
| | |
$
|
14,861,000
|
| | | | | | | | | | | | | | | | | | | | |
|
UMB Financial Corporation
Media Contact:
Kelli
Christman, 816-860-5088
or
Investor Relations Contact:
Abby
Wendel, 816-860-1685
Source: UMB Financial Corporation