UMB Financial Corporation Reports Second Quarter 2014 Earnings of $34.7 million, or $0.76 per Diluted Share

By Business Wire,  July 22, 2014, 04:30:00 PM EDT


Selected second quarter financial highlights:

  • Average net loans for the three months ended June 30, 2014 increased 12.0 percent to $6.9 billion compared to the three months ended June 30, 2013; marks the 17th consecutive quarter of loan growth
  • Nonperforming loans decreased to 0.39 percent of loans as of June 30, 2014, from 0.40 percent of loans as of June 30, 2013
  • Noninterest income increased 18.0 percent from the second quarter of 2013 to $134.0 million; represents 60.9 percent of total revenue
  • Total company assets under management stood at a record $43.7 billion, an increase of 21.9 percent compared to the second quarter of 2013
  • Tier 1 capital ratio remains strong at 13.81 percent

KANSAS CITY, Mo.--(BUSINESS WIRE)-- UMB Financial Corporation (Nasdaq:UMBF), a diversified financial holding company, announced earnings for the three months ended June 30, 2014 of $34.7 million or $0.77 per share ($0.76 diluted). This is an increase of $4.7 million, or 15.8 percent, compared to second quarter 2013 earnings of $29.9 million or $0.75 per share ($0.74 diluted). Earnings for the six months ended June 30, 2014, were $58.1 million or $1.30 per share ($1.28 diluted). This is a decrease of $6.8 million, or 10.5 percent, compared to the prior year-to-date earnings of $64.9 million or $1.62 per share ($1.61 diluted).

"As our second quarter results demonstrate, the strength of our business model relies on diverse revenue sources, high quality credit, a strong balance sheet and low-cost funding," said Mariner Kemper, Chairman and Chief Executive Officer. "Total company assets under management reached a record high this quarter at $43.7 million. Compared to the same period a year ago, AUM increased 21.9 percent, and over the past five years increased 34.1 percent on a compound annual growth rate basis. Loan growth continues to be a driving force behind our success with average net loans increasing 12.0 percent during the second quarter of 2014, as compared to the second quarter of 2013. This was our 17th consecutive quarter of loan growth. Finally, noninterest income increased 18.0 percent, compared to the second quarter 2013, led by revenue growth in our investment management and asset servicing businesses. Diverse revenue, loan growth, total cost of funds at 10 basis points, and excellent credit quality demonstrate that our business model continues to serve us well."

Net Interest Income and Margin

Net interest income for the second quarter of 2014 increased $3.8 million, or 4.7 percent, compared to the same period in 2013. Average earning assets increased by $749.3 million, or 5.4 percent, compared to the second quarter of 2013. This increase was due to a $739.0 million, or 12.0 percent, increase in average loans. Net interest margin decreased three basis points to 2.53 percent for the three months ended June 30, 2014, compared to the same quarter in 2013.

Noninterest Income and Expense

Noninterest income increased $20.4 million, or 18.0 percent, for the three months ended June 30, 2014, compared to the same period in 2013. This increase is attributable to increased trust and securities processing income of $9.9 million, or 15.6 percent, for the three months ended June 30, 2014, compared to the same period in 2013. The increase in trust and securities processing income was primarily due to a $3.7 million, or 18.9 percent, increase in fees related to institutional and personal investment management services, a $3.1 million, or 16.3 percent, increase in fund administration and custody services, and a $2.2 million, or 10.0 percent increase, in advisory fee income from the Scout Funds. Equity earnings on alternative investments increased $3.5 million due to unrealized gains on Prairie Capital Management ("PCM") equity method investments for the three months ended June 30, 2014, compared to the same period in 2013. Other noninterest income increased $4.5 million primarily driven by a gain on the sale of a branch property of $2.8 million and increased fair value adjustments on interest rate swap transactions of $0.8 million compared to the same period in 2013.

Noninterest expense increased $16.2 million, or 10.8 percent, for the three months ended June 30, 2014, compared to the same period in 2013. This increase is driven by higher salary and benefits expense of $6.0 million, or 7.1 percent, an increase in the contingency reserve of $5.3 million, an increase in equipment expense of $1.0 million, and an increase in other noninterest expense of $2.1 million. The increase in salary and benefits is due to increases in salaries and wages of $2.5 million, or 4.7 percent, a $1.2 million, or 6.7 percent, increase in commissions and bonuses, and a $2.3 million, or 17.4 percent, increase in employee benefits expense. The increase of $2.1 million in other noninterest expense is due to a $0.8 million increase in fair value adjustments on contingent consideration liabilities and a $0.6 million increase in fair value adjustments on interest rate swap transactions. On June 30, 2014, the Company entered into a settlement agreement to resolve objections to its calculation of the earn-out amount owed to the sellers of PCM and a related incentive bonus calculation for the employees of PCM. As of June 30, 2014, an additional $5.3 million of contingency reserve expense was recorded during the second quarter of 2014 for a total estimated settlement liability of $20.3 million.

"Our fee-based businesses continue to perform well, resulting in noninterest income at 60.9 percent of our total revenue," said Peter deSilva, President and Chief Operating Officer. "Trust and securities processing revenue increased 15.6 percent to $73.4 million compared to the second quarter 2013. Scout Investments - our institutional investment management segment - delivered nearly half of the increase with 16.6 percent growth in noninterest income year-over-year. Revenue from our asset servicing business increased 17.7 percent compared to the second quarter 2013. Assets under management within the bank are now more than $11 billion - also a record - and asset management-related revenue within the bank increased 14.2 percent. Within our payment solutions segment, healthcare deposits increased 36.4 percent compared to the prior year and healthcare and flexible spending accounts increased more than 45 percent year-over-year to 4.6 million total accounts."

Balance Sheet

Average total assets for the three months ended June 30, 2014, were $15.6 billion compared to $14.9 billion for the same period in 2013, an increase of $0.7 billion, or 5.0 percent. Average earning assets increased by $0.7 billion for the period, or 5.4 percent.

Average loan balances for the three months ended June 30, 2014, increased $739.0 million, or 12.0 percent, to $6.9 billion compared to the same period in 2013. Actual loan balances on June 30, 2014, were $6.9 billion, an increase of $0.6 billion, or 9.2 percent, compared to June 30, 2013. This increase was primarily driven by an increase in commercial loans of $207.5 million, or 6.2 percent, a $160.2 million, or 10.2 percent, increase in commercial real estate loans, and a $124.7 million, or 116.4 percent, increase in construction loans. Nonperforming loans increased to $27.2 million on June 30, 2014, from $25.5 million on June 30, 2013. As a percentage of loans, nonperforming loans decreased to 0.39 percent as of June 30, 2014, compared to 0.40 percent on June 30, 2013. Nonperforming loans are defined as nonaccrual loans and restructured loans. The company's allowance for loan losses totaled $76.8 million, or 1.11 percent of loans, as of June 30, 2014, compared to $71.6 million, or 1.13 percent of loans, as of June 30, 2013.

For the three months ended June 30, 2014, average securities, including trading securities, totaled $7.0 billion. This is a decrease of $180.4 million, or 2.5 percent, from the same period in 2013.

Average total deposits increased $0.7 billion, or 6.0 percent, to $12.3 billion for the three months ended June 30, 2014, compared to the same period in 2013. Average noninterest-bearing demand deposits increased $516.7 million, or 11.2 percent, compared to 2013. Average interest-bearing deposits increased by $183.2 million, or 2.6 percent, in 2014 as compared to 2013. Total deposits as of June 30, 2014, were $12.2 billion, compared to $11.7 billion as of June 30, 2013, a 3.8 percent increase. Also, as of June 30, 2014, noninterest-bearing demand deposits were 44.4 percent of total deposits.

As of June 30, 2014, UMB had total shareholders' equity of $1.6 billion, an increase of 30.6 percent as compared to the same period in 2013. This increase is primarily attributable to the common stock issuance the company completed in September 2013.

"True to our strategy to rotate out of the investment portfolio and into loans, the increase in interest income in the second quarter came from loan volume and changes to the earning asset mix," said Brian Walker, Chief Financial Officer. "The average balance of the investment portfolio decreased 2.1 percent year-over-year. Our bias toward shortening the duration of the portfolio, combined with the strategy to rotate into loans further demonstrates our balanced approach toward asset sensitivity while guarding against a continued, sustained low interest rate environment. We believe we are well positioned to benefit in a rising rate environment."

Year-to-Date

Earnings for the six months ended June 30, 2014, were $58.1 million or $1.30 per share ($1.28 diluted). This is a decrease of $6.8 million, or 10.5 percent, compared to the prior year-to-date earnings of $64.9 million or $1.62 per share ($1.61 diluted).

Net interest income for the six months ended June 30, 2014, increased $9.8 million, or 6.1 percent, compared to the same period in 2013. Net interest margin decreased to 2.45 percent for the six months ended June 30, 2014, as compared to 2.53 percent for the same period in 2013.

Noninterest income increased $22.4 million, or 9.5 percent, to $257.0 million for the six months ended June 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 $19.1 million, or 15.2 percent. The increase in trust and securities processing income was primarily due to a $6.7 million, or 17.2 percent, increase in fees related to institutional and personal investment management services, a $6.5 million, or 15.0 percent, increase in advisory fee income from the Scout Funds, and a $4.5 million, or 11.6 percent, increase in fund administration and custody services. Additional increases in noninterest income include a $6.0 million increase in equity earnings on alternative investments due to unrealized gains on PCM equity method investments and a $4.1 million, or 69.0 percent increase in other noninterest income. The increase in other noninterest income is driven by $2.8 million gain on the sale of a branch property and a $1.4 million increase in fair value adjustments on interest rate swap transactions during the first six months of 2014 compared to the same period in 2013. These increases were offset by a decrease in trading and investment banking income of $1.8 million and a decrease in gains on securities available for sale of $3.4 million in the first six months of 2014 compared to the same period in 2013.

Noninterest expense increased $38.1 million, or 12.7 percent, for the six months ended June 30, 2014, compared to the same period in 2013. This increase is driven by an increase in salary and employee benefit expense of $11.1 million, or 6.7 percent, and a $20.3 million increase in the contingency reserve. As noted above, $20.3 million of contingency reserve has been recognized in 2014 in conjunction with the settlement agreement entered into on June 30, 2014, to resolve the PCM dispute. Of this amount $15.0 million was recognized in the first quarter of 2014 and $5.3 million was recognized in the second quarter of 2014.

Dividend Declaration

The Board of Directors declared during the company's quarterly board meeting a $0.225 quarterly cash dividend, payable on October 1, 2014, to shareholders of record at the close of business on September 10, 2014.

Conference Call

The company plans to host a conference call to discuss its 2014 second quarter earnings results on July 23, 2014, at 9:30 a.m. (CDT).

Interested parties may access the call by dialing (toll-free) 800-524-8950 or (U.S.) 416-260-0113. The live call can also be accessed by visiting the investor relations area of umbfinancial.com or by using the following the link:

http://event.on24.com/r.htm?e=816187&s=1&k=2C36A678B70F9F90A5C30FBBFC76E890

A replay of the conference call may be heard until August 8, 2014, by calling (toll-free) 888-203-1112 or (U.S.) 719-457-0820. The replay pass code required for playback is conference identification number 5599321. 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)    
June 30,

Assets

  2014       2013
 
Loans $ 6,920,683 $ 6,338,921
Allowance for loan losses   (76,802 )       (71,647 )
Net loans   6,843,881         6,267,274  
Loans held for sale 3,156 6,693
Investment securities:
Available for sale 6,700,623 6,944,358
Held to maturity 238,799 160,328
Trading securities 26,484 47,996
Federal Reserve Bank Stock and other   67,527         25,955  
Total investment securities   7,033,433         7,178,637  
Federal funds and resell agreements 82,652 66,973
Interest-bearing due from banks 255,453 607,470
Cash and due from banks 639,878 415,489
Bank premises and equipment, net 250,655 246,300
Accrued income 73,805 71,817
Goodwill 209,758 209,758
Other intangibles 49,888 61,994
Other assets   120,131         120,812  
Total assets $ 15,562,690       $ 15,253,217  
 
 

Liabilities

Deposits:
Noninterest-bearing demand $ 5,399,733 $ 4,887,643
Interest-bearing demand and savings 5,754,573 5,801,388
Time deposits under $100,000 442,361 509,412
Time deposits of $100,000 or more   577,622         531,307  
Total deposits   12,174,289         11,729,750  
Federal funds and repurchase agreements 1,607,294 2,157,979
Short-term debt - 514
Long-term debt 5,745 4,063
Accrued expenses and taxes 131,996 117,916
Other liabilities   42,024         16,523  
Total liabilities   13,961,348         14,026,745  
 

Shareholders' Equity

Common stock 55,057 55,057
Capital surplus 887,086 736,456
Retained earnings 922,268 834,445
Accumulated other comprehensive income (loss) 16,901 (22,227 )
Treasury stock   (279,970 )       (377,259 )
Total shareholders' equity   1,601,342         1,226,472  
Total liabilities and shareholders' equity $ 15,562,690       $ 15,253,217  
 
           
Consolidated Statements of Income                       UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)    
Three Months Ended Six Months Ended
June 30, June 30,

Interest Income

  2014       2013       2014       2013
Loans $ 60,309 $ 56,615 $ 119,209 $ 111,335
Securities:
Taxable interest 19,021 18,841 37,982 37,305
Tax-exempt interest 9,798       10,118       19,705       19,877
Total securities income 28,819 28,959 57,687 57,182
Federal funds and resell agreements 46 40 79 64
Interest-bearing due from banks 466 330 1,589 1,000
Trading securities 149       268       272       533
Total interest income 89,789       86,212       178,836       170,114
 

Interest Expense

Deposits 3,092 3,333 6,151 7,125
Federal funds and repurchase agreements 454 491 935 1,058
Other 73       61       135       121
Total interest expense 3,619       3,885       7,221       8,304
Net interest income 86,170 82,327 171,615 161,810
Provision for loan losses 5,000       5,000       9,500       7,000
Net interest income after provision for loan losses 81,170       77,327       162,115       154,810
 

Noninterest Income

Trust and securities processing 73,357 63,486 144,920 125,798
Trading and investment banking 6,409 5,423 10,732 12,532
Service charges on deposits 20,627 20,882 42,185 42,405
Insurance fees and commissions 732 1,236 1,335 2,198
Brokerage fees 3,075 2,886 4,890 5,832
Bankcard fees 17,185 16,032 32,808 32,470
Gains on sale of securities available for sale, net 2,569 1,519 4,039 7,412
Equity earnings on alternative investments 3,462 - 5,992 -
Other 6,585       2,121       10,064       5,954
Total noninterest income 134,001       113,585       256,965       234,601
 

Noninterest Expense

Salaries and employee benefits 89,532 83,566 178,413 167,268
Occupancy, net 9,705 9,273 19,410 19,160
Equipment 12,920 11,873 25,583 23,807
Supplies and services 5,554 5,362 10,191 9,849
Marketing and business development 6,307 5,705 10,909 9,977
Processing fees 14,817 14,293 28,468 28,383
Legal and consulting 4,632 4,844 8,004 8,445
Bankcard 4,997 4,709 8,685 9,257
Amortization of intangible assets 3,074 3,354 6,176 6,809
Regulatory fees 2,709 2,484 5,225 4,395
Contingency reserve 5,272 - 20,272 -
Other 6,992       4,848       17,416       13,339
Total noninterest expense 166,511 150,311 338,752 300,689
 
Income before income taxes 48,660 40,601 80,328 88,722
Income tax provision 13,988       10,672       22,243       23,852
Net income $ 34,672     $ 29,929     $ 58,085     $ 64,870
 

Per Share Data

Net income - basic $ 0.77 $ 0.75 $ 1.30 $ 1.62
Net income - diluted 0.76 0.74 1.28 1.61
Dividends 0.225 0.215 0.450 0.430
Weighted average shares outstanding 44,823,370 39,966,869 44,782,944 39,924,423
 
   
Statements of Consolidated Comprehensive Income (Loss)     UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)          
Three Months Ended

June 30,

Six Months Ended

June 30,

2014     2013     2014     2013
Net Income $ 34,672     $ 29,929 $ 58,085 $ 64,870
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on securities:
Change in unrealized holding gains (losses), net 50,910 (136,367 ) 83,369 (163,415 )
Less: Reclassifications adjustment for gains included in net income   (2,569 )       (1,519 )       (4,039 )       (7,412 )
Change in unrealized gains (losses) on securities during the period 48,341 (137,886 ) 79,330 (170,827 )
Income tax (benefit) expense   (18,143 )       52,087         (29,789 )       63,012  
Other comprehensive income (loss)   30,198         (85,799 )       49,541         (107,815 )
Comprehensive income (loss) $ 64,870       $ (55,870 )     $ 107,626       $ (42,945 )
 
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      

(Loss) Income

      Stock       Total
Balance - January 1, 2013 $ 55,057 $ 732,069 $ 787,015 $ 85,588 $ (380,384 ) $ 1,279,345
Total comprehensive income (loss) - - 64,870 (107,815 ) - (42,945 )
Cash dividends ($0.43 per share) - - (17,440 ) - - (17,440 )
Purchase of treasury stock - - - - (1,750 ) (1,750 )
Issuance of equity awards - (2,466 ) - - 2,916 450

Recognition of equity based

  compensation

- 4,096 - - - 4,096

Net tax benefit related to equity

  compensation plans

- 503 - - - 503
Sale of treasury stock - 198 - - 104 302
Exercise of stock options   -       2,056         -         -         1,855         3,911  
Balance - June 30, 2013 $ 55,057     $ 736,456       $ 834,445       $ (22,227 )     $ (377,259 )     $ 1,226,472  
 
Balance - January 1, 2014 $ 55,057 $ 882,407 $ 884,630 $ (32,640 ) $ (283,389 ) $ 1,506,065
Total comprehensive income - - 58,085 49,541 - 107,626
Cash dividends ($0.45 per share) - - (20,447 ) - - (20,447 )
Purchase of treasury stock - - - - (3,165 ) (3,165 )
Issuance of equity awards - (3,395 ) - - 3,865 470

Recognition of equity based

  compensation

- 4,733 - - - 4,733

Net tax benefit related to equity

  compensation plans

- 1,202 - - - 1,202
Sale of treasury stock - 300 - - 159 459
Exercise of stock options   -       1,839         -         -         2,560         4,399  
Balance - June 30, 2014 $ 55,057     $ 887,086       $ 922,268       $ 16,901       $ (279,970 )     $ 1,601,342  
       
Average Balances / Yields and Rates               UMB Financial Corporation  
(tax - equivalent basis)        
(unaudited, dollars in thousands) Three Months Ended June 30,
  2014       2013
Average Average Average Average
Assets   Balance     Yield/Rate         Balance     Yield/Rate  
Loans, net of unearned interest $ 6,897,840 3.51 % $ 6,158,821 3.69 %
Securities:
Taxable 4,836,080 1.58 4,978,109 1.52
Tax-exempt 2,104,368       2.88 2,113,009       2.97
Total securities 6,940,448 1.97 7,091,118 1.95
Federal funds and resell agreements 32,692 0.56 28,524 0.56
Interest-bearing due from banks 619,094 0.30 432,588 0.31
Trading securities 36,785       1.80 66,482       1.79
Total earning assets 14,526,859 2.63 13,777,533 2.67
Allowance for loan losses (75,929 ) (70,004 )
Other assets   1,167,262     1,167,899  
Total assets $ 15,618,192   $ 14,875,428  
 
 
Liabilities and Shareholders' Equity
Interest-bearing deposits $ 7,126,614 0.17 % $ 6,943,399 0.19 %
Federal funds and repurchase agreements 1,592,986 0.11 1,848,118 0.11
Borrowed funds 5,771       5.07 4,592       5.33
Total interest-bearing liabilities 8,725,371 0.17 8,796,109 0.18
Noninterest-bearing demand deposits 5,152,980 4,636,240
Other liabilities 154,229 153,227
Shareholders' equity   1,585,612     1,289,852  
Total liabilities and shareholders' equity $ 15,618,192   $ 14,875,428  
Net interest spread 2.46 % 2.49 %
Net interest margin 2.53 2.56
 
 
Six Months Ended June 30,
  2014       2013
Average Average Average Average
Assets   Balance     Yield/Rate         Balance     Yield/Rate  
Loans, net of unearned interest $ 6,788,991 3.54 % $ 5,987,788 3.75 %
Securities:
Taxable 4,861,475 1.58 4,925,312 1.53
Tax-exempt 2,107,119       2.90 2,054,141       3.02
Total securities 6,968,594 1.98 6,979,453 1.97
Federal funds and resell agreements 29,939 0.53 23,858 0.54
Interest-bearing due from banks 1,154,811 0.28 701,282 0.29
Trading securities 37,682       1.63 62,048       1.92
Total earning assets 14,980,017 2.55 13,754,429 2.65
Allowance for loan losses (75,466 ) (70,750 )
Other assets   1,160,124     1,145,799  
Total assets $ 16,064,675   $ 14,829,478  
 
 
Liabilities and Shareholders' Equity
Interest-bearing deposits $ 7,545,182 0.16 % $ 6,980,728 0.21 %
Federal funds and repurchase agreements 1,630,169 0.12 1,761,074 0.12
Borrowed funds 5,738       4.74 4,989       4.89
Total interest-bearing liabilities 9,181,089 0.16 8,746,791 0.19
Noninterest-bearing demand deposits 5,160,206 4,631,425
Other liabilities 156,608 165,117
Shareholders' equity   1,566,772     1,286,145  
Total liabilities and shareholders' equity $ 16,064,675   $ 14,829,478  
Net interest spread 2.39 % 2.46 %
Net interest margin 2.45 2.53
 
         
SECOND QUARTER 2014
FINANCIAL HIGHLIGHTS       UMB Financial Corporation
(unaudited, dollars in thousands, except share and per share data)
 
Six Months Ended June 30   2014         2013    
Net interest income $ 171,615 $ 161,810
Provision for loan losses 9,500 7,000
Noninterest income 256,965 234,601
Noninterest expense 338,752 300,689
Income before income taxes 80,328 88,722
Net income 58,085 64,870
Net income per share - Basic 1.30 1.62
Net income per share - Diluted 1.28 1.61
Return on average assets 0.73 % 0.88 %
Return on average equity 7.48 % 10.17 %
 
Three Months Ended June 30
Net interest income $ 86,170 $ 82,327
Provision for loan losses 5,000 5,000
Noninterest income 134,001 113,585
Noninterest expense 166,511 150,311
Income before income taxes 48,660 40,601
Net income 34,672 29,929
Net income per share - Basic 0.77 0.75
Net income per share - Diluted 0.76 0.74
Return on average assets 0.89 % 0.81 %
Return on average equity 8.77 % 9.31 %
 
At June 30
Assets $ 15,562,690 $ 15,253,217
Loans, net of unearned interest 6,920,683 6,338,921
Securities 7,033,433 7,178,637
Deposits 12,174,289 11,729,750
Shareholders' equity 1,601,342 1,226,472
Book value per share 35.21 30.20
Market price per share 63.39 55.67
Equity to assets 10.29 % 8.04 %
Allowance for loan losses $ 76,802 $ 71,647
As a % of loans 1.11 % 1.13 %
Nonaccrual and restructured loans $ 27,175 $ 25,489
As a % of loans 0.39 % 0.40 %
Loans over 90 days past due $ 4,522 $ 4,013
As a % of loans 0.07 % 0.06 %
Other real estate owned $ 1,455 $ 3,573
Net loan charge-offs quarter-to-date $ 3,713 $ 3,234
As a % of average loans 0.22 % 0.21 %
Net loan charge-offs year-to-date $ 7,449 $ 6,779
As a % of average loans 0.22 % 0.23 %
 
Common shares outstanding 45,475,197 40,610,316
 
Average Balances
Six Months Ended June 30
Assets $ 16,064,675 $ 14,829,478
Loans, net of unearned interest 6,788,991 5,987,788
Securities 7,006,276 7,041,501
Deposits 12,705,388 11,612,153
Shareholders' equity 1,566,772 1,286,145
 
 
Business Segment Information UMB Financial Corporation
(unaudited, dollars in thousands)    
    Three Months Ended June 30, 2014
Bank    

Payment

Solutions

   

Institutional

Investment

Management

   

Asset

Servicing

      Total
Net interest income $ 72,481     $ 12,390     $ (1 )     $ 1,300 $ 86,170
Provision for loan losses 2,686 2,314 - - 5,000
Noninterest income 56,006 21,219 33,999 22,777 134,001
Noninterest expense   100,928   24,603   22,111     18,869   166,511
Income before taxes 24,873 6,692 11,887 5,208 48,660
Income tax expense   7,211   1,910   3,375     1,492   13,988
Net income $ 17,662 $ 4,782 $ 8,512   $ 3,716 $ 34,672
 
Average assets $ 12,008,000 $ 2,148,000 $ 69,000 $ 1,393,000 $ 15,618,000
 
 
Three Months Ended June 30, 2013

Bank

Payment

Solutions

Institutional

Investment

Management

Asset

Servicing

 

Total

Net interest income $ 70,558 $ 11,192 $ (10 ) $ 587 $ 82,327
Provision for loan losses 1,628 3,372 - - 5,000
Noninterest income 46,436 18,640 29,155 19,354 113,585
Noninterest expense   92,540   21,850   18,856     17,065   150,311
Income before taxes 22,826 4,610 10,289 2,876 40,601
Income tax expense   6,035   1,203   2,708     726   10,672
Net income $ 16,791 $ 3,407 $ 7,581   $ 2,150 $ 29,929
 
Average assets $ 11,201,000 $ 1,793,000 $ 80,000 $ 1,801,000 $ 14,875,000
 
    Six Months Ended June 30, 2014
Bank    

Payment

Solutions

   

Institutional

Investment

Management

   

Asset

Servicing

      Total
Net interest income $ 143,602     $ 24,778     $ (3 )     $ 3,238     $ 171,615
Provision for loan losses 5,112 4,388 - - 9,500
Noninterest income 103,425 41,453 68,094 43,993 256,965
Noninterest expense   208,671   45,631   47,998     36,452   338,752
Income before taxes 33,244 16,212 20,093 10,779 80,328
Income tax expense   9,242   4,485   5,523     2,993   22,243
Net income $ 24,002 $ 11,727 $ 14,570   $

7,786

$ 58,085
 
Average assets $ 12,204,000 $ 2,023,000 $ 71,000 $ 1,767,000 $ 16,065,000
 
Six Months Ended June 30, 2013
Bank    

Payment

Solutions

   

Institutional

Investment

Management

   

Asset

Servicing

      Total
Net interest income $ 137,818 $ 22,740 $ (10 ) $ 1,262 $ 161,810
Provision for loan losses 1,937 5,063 - - 7,000
Noninterest income 99,184 38,077 57,708 39,632 234,601
Noninterest expense   184,076   41,968   37,700     36,945   300,689
Income before taxes 50,989 13,786 19,998 3,949 88,722
Income tax expense   13,740   3,737   5,376     999   23,852
Net income $ 37,249 $ 10,049 $ 14,622   $ 2,950 $ 64,870
 
Average assets $ 11,294,000 $ 1,726,000 $ 78,000 $ 1,731,000 $ 14,829,000
 

Source: UMB Financial Corporation



This article appears in: News Headlines

Referenced Stocks: UMBF


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