[April 24, 2018] |
|
UMB Financial Corporation Reports First Quarter Income from Continuing Operations of $57.5 Million or $1.15 per diluted share
UMB Financial Corporation (Nasdaq: UMBF), a financial holding company,
announced income from continuing operations for the first quarter 2018
of $57.5 million or $1.15 per diluted share, compared to $47.4 million
or $0.95 per diluted share in the fourth quarter 2017 (linked quarter)
and $42.0 million or $0.84 per diluted share in the first quarter 2017.
The reported GAAP income from continuing operations represents an
increase of 21.5 percent on a linked-quarter basis and 37.1 percent
compared to the first quarter 2017.
Net operating income from continuing operations, a non-GAAP financial
measure which is reconciled to income from continuing operations, the
nearest comparable GAAP measure, later in this release, was $59.1
million or $1.18 per diluted share for the first quarter 2018, compared
to $47.5 million or $0.95 per diluted share for the linked quarter and
$42.3 million or $0.85 per diluted share for the first quarter 2017.
These results represent an increase of 24.3 percent on a linked-quarter
basis and an increase of 39.7 percent compared to the first quarter 2017.
Summary of quarterly financial results
|
|
|
UMB Financial Corporation
|
|
(unaudited, dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
Q4
|
|
Q1
|
|
|
|
|
2018
|
|
2017
|
|
2017
|
|
Income from continuing operations
|
|
$
|
57,533
|
|
$
|
47,357
|
$
|
41,976
|
|
(Loss) income from discontinued operations
|
|
|
(747
|
)
|
|
64,604
|
|
2,205
|
|
Net income
|
|
|
56,786
|
|
|
111,961
|
|
44,181
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing operations (diluted)
|
|
|
1.15
|
|
|
0.95
|
|
0.84
|
|
(Losses) earnings per share from discontinued operations (diluted)
|
|
|
(0.01
|
)
|
|
1.30
|
|
0.05
|
|
Earnings per share (diluted)
|
|
|
1.14
|
|
|
2.25
|
|
0.89
|
|
|
|
|
|
|
|
|
|
|
Net operating income from continuing operations
|
|
|
59,062
|
|
|
47,533
|
|
42,281
|
|
Operating earnings per share from continuing operations (diluted)
|
|
|
1.18
|
|
|
0.95
|
|
0.85
|
|
|
|
|
|
|
|
|
|
|
GAAP - continuing operations
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
1.12
|
|
%
|
0.91
|
%
|
0.84
|
%
|
Return on average equity
|
|
|
10.80
|
|
|
8.72
|
|
8.58
|
|
Efficiency ratio
|
|
|
68.82
|
|
|
71.70
|
|
72.55
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP - continuing operations
|
|
|
|
|
|
|
|
|
Operating return on average assets
|
|
|
1.15
|
|
%
|
0.91
|
%
|
0.85
|
%
|
Operating return on average equity
|
|
|
11.09
|
|
|
8.75
|
|
8.65
|
|
Operating efficiency ratio
|
|
|
68.04
|
|
|
71.59
|
|
72.35
|
|
|
|
|
|
|
|
|
|
|
|
"Results for the first quarter of 2018 reflect margin expansion, expense
control and improved profitability metrics," said Mariner Kemper,
chairman and chief executive officer. "This year, UMB is 105 years old
and I am proud of the sound company we have built and am pleased with
the positive start to our 106th year. The interest rate
environment and optimizing our earning asset mix drove a 10.1 percent
year-over-year increase in net interest income which, when combined with
steady fee-based income, resulted in a 37.1 percent increase in income
from continuing operations compared to the first quarter of 2017."
Discussion of results from continuing operations
Summary of revenue
|
|
|
|
|
|
|
UMB Financial Corporation
|
(unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
|
Q4
|
|
|
|
Q1
|
|
|
|
CQ vs.
|
|
|
CQ vs.
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2017
|
|
|
|
LQ
|
|
|
PY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
147,922
|
|
$
|
|
146,346
|
|
$
|
|
134,315
|
|
$
|
|
1,576
|
|
$
|
|
13,607
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and securities processing
|
|
|
44,002
|
|
|
|
44,234
|
|
|
|
42,541
|
|
|
|
(232
|
)
|
|
|
1,461
|
|
Trading and investment banking
|
|
|
4,101
|
|
|
|
5,015
|
|
|
|
7,542
|
|
|
|
(914
|
)
|
|
|
(3,441
|
)
|
Service charges on deposit accounts
|
|
|
21,905
|
|
|
|
21,364
|
|
|
|
22,075
|
|
|
|
541
|
|
|
|
(170
|
)
|
Insurance fees and commissions
|
|
|
301
|
|
|
|
388
|
|
|
|
646
|
|
|
|
(87
|
)
|
|
|
(345
|
)
|
Brokerage fees
|
|
|
6,353
|
|
|
|
6,127
|
|
|
|
5,377
|
|
|
|
226
|
|
|
|
976
|
|
Bankcard fees
|
|
|
18,123
|
|
|
|
17,617
|
|
|
|
17,752
|
|
|
|
506
|
|
|
|
371
|
|
Gains on sales of securities available for sale, net
|
|
|
139
|
|
|
|
54
|
|
|
|
468
|
|
|
|
85
|
|
|
|
(329
|
)
|
Other
|
|
|
10,601
|
|
|
|
11,234
|
|
|
|
6,516
|
|
|
|
(633
|
)
|
|
|
4,085
|
|
Total noninterest income
|
|
$
|
105,525
|
|
$
|
|
106,033
|
|
$
|
|
102,917
|
|
$
|
|
(508
|
)
|
$
|
|
2,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
253,447
|
|
$
|
|
252,379
|
|
$
|
|
237,232
|
|
$
|
|
1,068
|
|
$
|
|
16,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
3.19
|
|
%
|
|
3.21
|
|
%
|
|
3.09
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income as a % of total revenue
|
|
|
41.64
|
|
|
|
42.01
|
|
|
|
43.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Following the enactment of the Tax Cuts and Jobs Act, beginning in
the first quarter of 2018, net interest margin is computed using net
interest income adjusted to a fully taxable equivalent ("FTE") basis
assuming a statutory federal income tax rate of 21 percent and, where
applicable, state income taxes; prior period net interest margins are
computed using the then-statutory federal income tax rate of 35 percent
and, where applicable, state income taxes.
Net interest income
-
On a linked quarter basis, net interest income increased 1.1 percent
while net interest margin declined two basis points. The calculation
of the first quarter 2018 net interest margin was adversely impacted
by lower tax equivalent income primarily on the company's tax favored
municipal bond investments, from the recently enacted tax legislation.
The resulting impact to net interest margin from tax reform is
approximately eleven basis points.
-
Earning asset yields improved five basis points from the linked
quarter driven by improved loan yields of 13 basis points to 4.53
percent, in part driven by favorable re-pricing driven by recent
increase in short-term interest rates and volume changes within the
loan portfolio. These asset yields were also affected by the impact of
tax reform to tax equivalent income. The cost of interest-bearing
liabilities increased ten basis points to 0.65 percent due to an
increase of $136.8 million in federal fund borrowings, and an increase
in interest rates paid on select interest-bearing deposit balances.
-
On a year-over-year basis, the increase in net interest income was
driven by a 6.9 percent or $726.4 million increase in average loans as
well as higher average loan yields, which increased 44 basis points
from one year ago, primarily driven by higher interest rates and mix
changes, offset by the impacts of tax reform on tax equivalent income.
-
For the first quarter 2018, average earning assets stood at $19.4
billion, which is an increase of 3.0 percent over the first quarter
2017.
Noninterest income
-
First quarter 2018 noninterest income decreased $0.5 million, or 0.5
percent, on a linked quarter basis largely due to:
-
a decrease of $0.9 million in trading and investment banking
primarily due to lower trading volume and unfavorable fair value
adjustments;
-
a decrease of $0.6 million in other noninterest income primarily
due to a decrease in company-owned life insurance income and a
decrease in foreign exchange currency valuation;
-
which were partially offset by an increase of $0.5 million in
service charges on deposit accounts driven by the company's
healthcare services business; and
-
an increase of $0.5 million in bankcard fee income primarily due
to an increase in interchange income.
-
Noninterest income in the first quarter of 2018 improved $2.6 million,
or 2.5 percent, compared to the same quarter in 2017 primarily driven
by:
-
a $4.1 million increase in other noninterest income primarily due
to increases in equity earnings on alternative investments and
derivative income;
-
a $0.4 million increase in wealth management revenue, a $0.3
million increase in fund servicing revenue, and a $0.7 million
increase in corporate trust revenue all recorded in trust and
securities processing;
-
which were partially offset by a $3.4 million decrease in trading
and investment banking due to a decrease of $1.8 million in bond
trading fees, and a decline of $1.6 million in market adjustments
from the company's seed investments in certain Scout funds
following the liquidation of such investments at the end of the
second quarter of 2017.
Noninterest expense
Summary of noninterest expense
|
|
|
|
|
|
|
|
|
UMB Financial Corporation
|
(unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
Q4
|
|
|
Q1
|
|
|
CQ vs.
|
|
|
CQ vs.
|
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
LQ
|
|
|
PY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
$
|
107,968
|
|
$
|
107,656
|
|
$
|
103,652
|
|
$
|
312
|
|
|
$
|
4,316
|
|
Occupancy, net
|
|
|
10,953
|
|
|
11,148
|
|
|
10,968
|
|
|
(195
|
)
|
|
|
(15
|
)
|
Equipment
|
|
|
18,826
|
|
|
18,690
|
|
|
17,482
|
|
|
136
|
|
|
|
1,344
|
|
Supplies and services
|
|
|
3,760
|
|
|
4,211
|
|
|
4,094
|
|
|
(451
|
)
|
|
|
(334
|
)
|
Marketing and business development
|
|
|
5,034
|
|
|
6,540
|
|
|
4,141
|
|
|
(1,506
|
)
|
|
|
893
|
|
Processing fees
|
|
|
11,161
|
|
|
11,238
|
|
|
9,199
|
|
|
(77
|
)
|
|
|
1,962
|
|
Legal and consulting
|
|
|
3,844
|
|
|
6,045
|
|
|
5,050
|
|
|
(2,201
|
)
|
|
|
(1,206
|
)
|
Bankcard
|
|
|
4,626
|
|
|
4,405
|
|
|
4,903
|
|
|
221
|
|
|
|
(277
|
)
|
Amortization of other intangible assets
|
|
|
1,562
|
|
|
1,641
|
|
|
2,046
|
|
|
(79
|
)
|
|
|
(484
|
)
|
Regulatory fees
|
|
|
2,905
|
|
|
3,825
|
|
|
3,833
|
|
|
(920
|
)
|
|
|
(928
|
)
|
Other
|
|
|
5,237
|
|
|
7,160
|
|
|
8,442
|
|
|
(1,923
|
)
|
|
|
(3,205
|
)
|
Total noninterest expense
|
|
$
|
175,876
|
|
$
|
182,559
|
|
$
|
173,810
|
|
$
|
(6,683
|
)
|
|
$
|
2,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
GAAP noninterest expense for the first quarter of 2018 was $175.9
million, which was a decrease of $6.7 million, or 3.7 percent from the
linked quarter and an increase of $2.1 million, or 1.2 percent from
the first quarter of 2017.
-
On a non-GAAP basis, operating noninterest expense (as reconciled
later in this release) was $173.9 million for the first quarter 2018,
a decrease of $8.4 million, or 4.6 percent, compared to the linked
quarter, and an increase of $0.6 million, or 0.3 percent, compared to
the first quarter 2017.
-
The linked quarter decrease in noninterest expense was driven by:
-
a $2.2 million decrease in legal and consulting expense partially
due to the delay in timing of future projects;
-
a $1.9 million decrease in other noninterest expense driven by a
$1.0 million contribution made to the UMB Financial Corporation
Charitable Foundation in the fourth quarter 2017 and lower
derivative expense and operational losses; and
-
decreased marketing and business development expense related to
timing of multiple projects and reduced regulatory fees due to
lower regulatory assessments.
-
The year-over-year increase in noninterest expense was driven by:
-
a $4.3 million increase in salaries and employee benefits, largely
due to a $2.2 million increase in salary and wage expense, a $1.5
million increase in severance and a $0.7 million increase in
employee benefits driven by higher payroll taxes and 401(k)
expense in 2018;
-
$2.0 million increase in processing expenses related to
investments for regulatory requirements, cyber security, and the
ongoing modernization of the company's core systems;
-
which were partially offset by a $3.2 million decrease in other
noninterest expense due to lower operational losses and losses on
sales of other real estate owned in the current year; and
decreased consulting expenses.
Income Taxes
-
The company's effective tax rate was 14.9 percent for the quarter
ended March 31, 2018 compared to 22.9 percent for the same period in
2017. The decrease is primarily a result of the Tax Cuts and Jobs Act,
which lowered the federal corporate income tax rate to 21 percent from
35 percent, effective on January 1, 2018.
Balance Sheet
-
Average total assets for the first quarter 2018 were $20.7 billion, an
increase of $23.3 million from the linked quarter, and up from $20.2
billion for the same period in 2017.
Summary of average loans and leases - QTD Average
|
|
|
|
UMB Financial Corporation
|
(unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
Q4
|
|
|
Q1
|
|
|
CQ vs.
|
|
|
CQ vs.
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
LQ
|
|
|
PY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
|
4,456,176
|
|
$
|
4,438,241
|
|
$
|
4,397,675
|
|
$
|
17,935
|
|
|
$
|
58,501
|
|
Asset-based loans
|
|
336,146
|
|
|
326,845
|
|
|
225,818
|
|
|
9,301
|
|
|
|
110,328
|
|
Factoring loans
|
|
223,031
|
|
|
212,123
|
|
|
148,356
|
|
|
10,908
|
|
|
|
74,675
|
|
Commercial credit card
|
|
189,891
|
|
|
172,193
|
|
|
157,864
|
|
|
17,698
|
|
|
|
32,027
|
|
Real estate - construction
|
|
763,867
|
|
|
835,715
|
|
|
793,892
|
|
|
(71,848
|
)
|
|
|
(30,025
|
)
|
Real estate - commercial
|
|
3,635,455
|
|
|
3,394,232
|
|
|
3,157,363
|
|
|
241,223
|
|
|
|
478,092
|
|
Real estate - residential
|
|
645,803
|
|
|
619,985
|
|
|
567,611
|
|
|
25,818
|
|
|
|
78,192
|
|
Real estate - HELOC
|
|
630,617
|
|
|
649,268
|
|
|
697,010
|
|
|
(18,651
|
)
|
|
|
(66,393
|
)
|
Consumer credit card
|
|
223,725
|
|
|
247,284
|
|
|
249,489
|
|
|
(23,559
|
)
|
|
|
(25,764
|
)
|
Consumer other
|
|
158,131
|
|
|
164,667
|
|
|
125,835
|
|
|
(6,536
|
)
|
|
|
32,296
|
|
Leases
|
|
23,680
|
|
|
24,163
|
|
|
39,221
|
|
|
(483
|
)
|
|
|
(15,541
|
)
|
Total loans
|
$
|
11,286,522
|
|
$
|
11,084,716
|
|
$
|
10,560,134
|
|
$
|
201,806
|
|
|
$
|
726,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Average loans for the first quarter 2018, increased 1.8 percent, on a
linked-quarter basis, and 6.9 percent, compared to first quarter 2017.
Summary of average securities - QTD Average
|
|
|
|
|
UMB Financial Corporation
|
(unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
Q4
|
|
|
Q1
|
|
|
CQ vs.
|
|
|
CQ vs.
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
LQ
|
|
|
PY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
$
|
38,197
|
|
$
|
38,776
|
|
$
|
83,302
|
|
$
|
(579
|
)
|
|
$
|
(45,105
|
)
|
U.S. Agencies
|
|
10,360
|
|
|
14,753
|
|
|
144,166
|
|
|
(4,393
|
)
|
|
|
(133,806
|
)
|
Mortgage-backed
|
|
3,645,891
|
|
|
3,484,304
|
|
|
3,753,733
|
|
|
161,587
|
|
|
|
(107,842
|
)
|
State and political subdivisions
|
|
2,453,334
|
|
|
2,555,462
|
|
|
2,412,351
|
|
|
(102,128
|
)
|
|
|
40,983
|
|
Corporates
|
|
8,482
|
|
|
15,880
|
|
|
66,840
|
|
|
(7,398
|
)
|
|
|
(58,358
|
)
|
Commercial Paper
|
|
30,955
|
|
|
-
|
|
|
-
|
|
|
30,955
|
|
|
|
30,955
|
|
Total securities available for sale
|
|
6,187,219
|
|
|
6,109,175
|
|
|
6,460,392
|
|
|
78,044
|
|
|
|
(273,173
|
)
|
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and political subdivisions
|
|
1,251,771
|
|
|
1,269,058
|
|
|
1,157,871
|
|
|
(17,287
|
)
|
|
|
93,900
|
|
Trading securities
|
|
44,592
|
|
|
43,388
|
|
|
60,462
|
|
|
1,204
|
|
|
|
(15,870
|
)
|
Other securities
|
|
65,560
|
|
|
63,543
|
|
|
67,988
|
|
|
2,017
|
|
|
|
(2,428
|
)
|
Total securities
|
$
|
7,549,142
|
|
$
|
7,485,164
|
|
$
|
7,746,713
|
|
$
|
63,978
|
|
|
$
|
(197,571
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
The year-over-year growth in the company's held to maturity securities
portfolio is due to increased activity in private placement bonds,
primarily used to refinance existing revenue bonds in the healthcare
and education sectors.
-
Average securities available for sale decreased 4.2 percent as
compared to the first quarter of 2017 driven by the ongoing
reinvestment of cash flows from such securities to fund growth in the
private placement bond and loan portfolios.
Summary of average deposits - QTD Average
|
|
|
|
|
|
|
UMB Financial Corporation
|
(unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
|
Q4
|
|
|
|
Q1
|
|
|
|
CQ vs.
|
|
|
|
CQ vs.
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2017
|
|
|
|
LQ
|
|
|
|
PY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
|
|
$
|
6,050,997
|
|
$
|
|
6,180,293
|
|
$
|
|
5,998,942
|
|
$
|
|
(129,296
|
)
|
|
$
|
|
52,055
|
|
Interest-bearing demand and savings
|
|
|
9,660,150
|
|
|
|
9,439,202
|
|
|
|
8,564,059
|
|
|
|
220,948
|
|
|
|
|
1,096,091
|
|
Time deposits
|
|
|
1,047,700
|
|
|
|
1,230,303
|
|
|
|
1,079,947
|
|
|
|
(182,603
|
)
|
|
|
|
(32,247
|
)
|
Total deposits
|
|
$
|
16,758,847
|
|
$
|
|
16,849,798
|
|
$
|
|
15,642,948
|
|
$
|
|
(90,951
|
)
|
|
$
|
|
1,115,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits as % of total
|
|
|
36.11
|
|
%
|
|
36.68
|
|
%
|
|
38.35
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Average noninterest-bearing deposits were relatively unchanged
compared to the first quarter of 2017, but decreased 2.1 percent on a
linked-quarter basis primarily driven by lower balances held by larger
commercial and institutional customers.
Capital
Capital information
|
|
|
UMB Financial Corporation
|
(unaudited, dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
Q4
|
|
|
Q1
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
$
|
2,167,386
|
|
$
|
2,181,531
|
|
$
|
2,010,878
|
|
Book value per common share
|
|
|
43.31
|
|
|
43.72
|
|
|
40.34
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital:
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 capital
|
|
$
|
2,097,691
|
|
$
|
2,041,504
|
|
$
|
1,821,915
|
|
Tier 1 capital
|
|
|
2,097,691
|
|
|
2,041,504
|
|
|
1,821,915
|
|
Total capital
|
|
|
2,269,315
|
|
|
2,213,050
|
|
|
1,985,231
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital ratios:
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 capital ratio
|
|
|
13.36
|
|
%
|
12.95
|
|
%
|
11.89
|
%
|
Tier 1 risk-based capital ratio
|
|
|
13.36
|
|
|
12.95
|
|
|
11.89
|
|
Total risk-based capital ratio
|
|
|
14.45
|
|
|
14.04
|
|
|
12.96
|
|
Tier 1 leverage ratio
|
|
|
10.20
|
|
|
9.94
|
|
|
9.11
|
|
|
|
|
|
|
|
|
|
|
|
|
-
At March 31, 2018, the company's risk-based capital ratios presented
in the foregoing table exceeded all of the "well-capitalized"
regulatory thresholds.
Asset Quality
Credit quality
|
|
|
|
|
|
|
|
|
UMB Financial Corporation
|
(unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
|
Q4
|
|
|
|
Q3
|
|
|
|
Q2
|
|
|
|
Q1
|
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2017
|
|
|
|
2017
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs - Commercial loans
|
|
$
|
6,847
|
|
$
|
|
2,248
|
|
$
|
|
8,961
|
|
$
|
|
7,971
|
|
$
|
|
5,283
|
|
Net charge-offs (recoveries) - Real estate loans
|
|
|
1,512
|
|
|
|
(242)
|
|
|
|
238
|
|
|
|
(95)
|
|
|
|
125
|
|
Net charge-offs - Consumer credit card loans
|
|
|
1,849
|
|
|
|
1,612
|
|
|
|
1,635
|
|
|
|
2,079
|
|
|
|
1,815
|
|
Net charge-offs - Consumer other loans
|
|
|
94
|
|
|
|
167
|
|
|
|
74
|
|
|
|
71
|
|
|
|
103
|
|
Net charge-offs - Total loans
|
|
|
10,302
|
|
|
|
3,785
|
|
|
|
10,908
|
|
|
|
10,026
|
|
|
|
7,326
|
|
Net loan charge-offs as a % of total average loans
|
|
|
0.37
|
|
%
|
|
0.14
|
|
%
|
|
0.40
|
|
%
|
|
0.37
|
|
%
|
|
0.28
|
%
|
Loans over 90 days past due
|
|
$
|
5,650
|
|
$
|
|
3,091
|
|
$
|
|
2,088
|
|
$
|
|
2,657
|
|
$
|
|
3,369
|
|
Loans over 90 days past due as a % of total loans
|
|
|
0.05
|
|
%
|
|
0.03
|
|
%
|
|
0.02
|
|
%
|
|
0.02
|
|
%
|
|
0.03
|
%
|
Nonaccrual and restructured loans
|
|
$
|
67,604
|
|
$
|
|
59,142
|
|
$
|
|
54,231
|
|
$
|
|
51,390
|
|
$
|
|
56,594
|
|
Nonaccrual and restructured loans as a % of total loans
|
|
|
0.59
|
|
%
|
|
0.52
|
|
%
|
|
0.49
|
|
%
|
|
0.47
|
|
%
|
|
0.53
|
%
|
Provision for loan losses
|
|
$
|
10,000
|
|
$
|
|
6,000
|
|
$
|
|
11,500
|
|
$
|
|
14,500
|
|
$
|
|
9,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Nonperforming loans, defined as restructured loans on nonaccrual and
all other nonaccrual loans, increased $8.5 million from the linked
quarter and $11.0 million from the prior year period.
-
Net charge-offs increased to $10.3 million or 0.37 percent of average
loans, compared to $3.8 million, or 0.14 percent of average loans in
the linked quarter, and $7.3 million, or 0.28 percent of average loans
in the first quarter of 2017.
-
Provision for loan losses increased $4.0 million from the linked
quarter, consistent with the company's methodology, which considers
the inherent risk in the loan portfolio, as well as other qualitative
factors, such as macroeconomic conditions, loan growth, increased
impaired loans, and increased net charge-offs.
Conference Call
The company plans to host a conference call to discuss its first quarter
2018 earnings results on Wednesday, April 25, 2018, at 8:30 a.m. (CT).
Interested parties may access the call by dialing (toll-free)
877-267-8760 or (U.S.) 412-542-4148 and requesting to join the UMB
Financial call. The live call may also be accessed by visiting the
investor relations area of umbfinancial.com
or by using the following the link:
UMB
Financial 1Q 2018 Conference Call
A replay of the conference call may be heard through May 9, 2018, by
calling (toll-free) 877-344-7529 or (U.S.) 412-317-0088. The replay pass
code required for playback is 10118845. The call replay may also be
accessed via the company's website umbfinancial.com
by visiting the investor relations area.
Non-GAAP Financial Information
In this release, we provide information about net operating income,
operating earnings per share - diluted (operating EPS), operating return
on average equity (operating ROE), operating return on average assets
(operating ROA), operating noninterest expense, and operating efficiency
ratio, all of which are non-GAAP financial measures. This information
supplements the results that are reported according to generally
accepted accounting principles in the United States (GAAP) and should
not be viewed in isolation from, or as a substitute for, GAAP results.
The differences between the non-GAAP financial measures-net operating
income, operating EPS, operating ROE, operating ROA, operating
noninterest expense, and operating efficiency ratio-and the nearest
comparable GAAP financial measures are reconciled later in this release.
The company believes that these non-GAAP financial measures and the
reconciliations may be useful to investors because they adjust for
acquisition- and severance-related items and divestiture costs that
management does not believe reflect the company's fundamental operating
performance.
Net operating income for the relevant period is defined as GAAP net
income, adjusted to reflect the impact of excluding expenses related to
acquisitions and divestitures, severance expense, and the cumulative tax
impact of these adjustments. The company believes that the financial
impact of excluding severance expense will be immaterial in the near
future. It is excluded from certain GAAP financial measures as it has an
unusually large impact on the company's financial statements.
Operating EPS (diluted) is calculated as earnings per share as reported,
adjusted to reflect, on a per share basis, the impact of excluding the
non-GAAP adjustments described above for the relevant period. Operating
ROE is calculated as net operating income, divided by the company's
average total shareholders' equity for the relevant period. Operating
ROA is calculated as net operating income, divided by the company's
average assets for the relevant period. Operating noninterest expense
for the relevant period is defined as GAAP noninterest expense, adjusted
to reflect the pre-tax impact of non-GAAP adjustments described above.
Operating efficiency ratio is calculated as the company's operating
noninterest expense, net of amortization of other intangibles, divided
by the company's total non-GAAP revenue (calculated as net interest
income plus noninterest income, less gains on sales of securities
available for sale, net).
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.
Forward-looking statements often use words such as "believe," "expect,"
"anticipate," "intend," "estimate," "project," "outlook," "forecast,"
"target," "trend," "plan," "goal," or other words of comparable meaning
or future-tense or conditional verbs such as "may," "will," "should,"
"would," or "could." Forward-looking statements convey our expectations,
intentions, or forecasts about future events, circumstances, results, or
aspirations. 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, 2017, 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 U.S.
Securities and Exchange Commission (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 Annual Report on Form 10-K, 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 financial services company
headquartered in Kansas City, Mo. UMB offers personal banking,
commercial banking, healthcare services and institutional banking, which
includes services to mutual funds and alternative-investment entities
and registered investment advisors. UMB operates banking and wealth
management centers throughout Missouri, Illinois, Colorado, Kansas,
Oklahoma, Nebraska, Arizona and Texas. For more information, visit UMB.com,
UMB
Financial.com, UMB
Blog or follow us on Twitter at @UMBBank, UMB
Facebook and UMB
LinkedIn.
|
|
|
|
|
|
|
Consolidated Balance Sheets
|
|
|
|
UMB Financial Corporation
|
(unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
Assets
|
|
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
$
|
11,458,794
|
|
|
|
$
|
10,757,236
|
|
Allowance for loan losses
|
|
|
|
|
|
(100,302
|
)
|
|
|
|
(93,323
|
)
|
Net loans
|
|
|
|
|
|
11,358,492
|
|
|
|
|
10,663,913
|
|
Loans held for sale
|
|
|
|
|
|
4,586
|
|
|
|
|
1,934
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
Available for sale
|
|
|
|
|
|
6,139,346
|
|
|
|
|
6,551,593
|
|
Held to maturity
|
|
|
|
|
|
1,246,466
|
|
|
|
|
1,206,639
|
|
Trading securities
|
|
|
|
|
|
65,389
|
|
|
|
|
75,494
|
|
Other securities
|
|
|
|
|
|
67,408
|
|
|
|
|
67,910
|
|
Total investment securities
|
|
|
|
|
|
7,518,609
|
|
|
|
|
7,901,636
|
|
Federal funds and resell agreements
|
|
|
|
|
|
127,208
|
|
|
|
|
196,467
|
|
Interest-bearing due from banks
|
|
|
|
|
|
671,163
|
|
|
|
|
374,570
|
|
Cash and due from banks
|
|
|
|
|
|
279,838
|
|
|
|
|
373,671
|
|
Premises and equipment, net
|
|
|
|
|
|
272,632
|
|
|
|
|
282,398
|
|
Accrued income
|
|
|
|
|
|
97,632
|
|
|
|
|
97,035
|
|
Goodwill
|
|
|
|
|
|
180,867
|
|
|
|
|
180,867
|
|
Other intangibles, net
|
|
|
|
|
|
18,695
|
|
|
|
|
24,585
|
|
Other assets
|
|
|
|
|
|
458,182
|
|
|
|
|
424,495
|
|
Discontinued assets - goodwill and other intangibles, net
|
|
|
|
|
|
-
|
|
|
|
|
54,566
|
|
Total assets
|
|
|
|
|
$
|
20,987,904
|
|
|
|
$
|
20,576,137
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
|
|
|
|
|
$
|
6,042,719
|
|
|
|
$
|
6,202,246
|
|
Interest-bearing demand and savings
|
|
|
|
|
|
10,188,367
|
|
|
|
|
8,622,219
|
|
Time deposits under $250,000
|
|
|
|
|
|
553,692
|
|
|
|
|
594,967
|
|
Time deposits of $250,000 or more
|
|
|
|
|
|
433,487
|
|
|
|
|
475,752
|
|
Total deposits
|
|
|
|
|
|
17,218,265
|
|
|
|
|
15,895,184
|
|
Federal funds purchased and repurchase agreements
|
|
|
|
|
|
1,354,615
|
|
|
|
|
2,390,364
|
|
Long-term debt
|
|
|
|
|
|
78,687
|
|
|
|
|
76,104
|
|
Accrued expenses and taxes
|
|
|
|
|
|
129,753
|
|
|
|
|
142,987
|
|
Other liabilities
|
|
|
|
|
|
39,198
|
|
|
|
|
60,620
|
|
Total liabilities
|
|
|
|
|
|
18,820,518
|
|
|
|
|
18,565,259
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
|
55,057
|
|
|
|
|
55,057
|
|
Capital surplus
|
|
|
|
|
|
1,046,673
|
|
|
|
|
1,033,225
|
|
Retained earnings
|
|
|
|
|
|
1,393,485
|
|
|
|
|
1,174,587
|
|
Accumulated other comprehensive loss
|
|
|
|
|
|
(117,391
|
)
|
|
|
|
(44,159
|
)
|
Treasury stock
|
|
|
|
|
|
(210,438
|
)
|
|
|
|
(207,832
|
)
|
Total shareholders' equity
|
|
|
|
|
|
2,167,386
|
|
|
|
|
2,010,878
|
|
Total liabilities and shareholders' equity
|
|
|
|
|
$
|
20,987,904
|
|
|
|
$
|
20,576,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income
|
|
|
UMB Financial Corporation
|
(unaudited, dollars in thousands except share and per share data)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
Interest Income
|
|
|
2018
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
126,134
|
|
|
|
$
|
106,560
|
Securities:
|
|
|
|
|
|
|
|
Taxable interest
|
|
|
19,780
|
|
|
|
|
19,190
|
Tax-exempt interest
|
|
|
18,703
|
|
|
|
|
17,183
|
Total securities income
|
|
|
38,483
|
|
|
|
|
36,373
|
Federal funds and resell agreements
|
|
|
1,038
|
|
|
|
|
919
|
Interest-bearing due from banks
|
|
|
1,580
|
|
|
|
|
551
|
Trading securities
|
|
|
430
|
|
|
|
|
287
|
Total interest income
|
|
|
167,665
|
|
|
|
|
144,690
|
|
|
|
|
|
|
|
|
Interest Expense
|
|
|
|
|
|
|
|
Deposits
|
|
|
13,835
|
|
|
|
|
5,966
|
Federal funds and repurchase agreements
|
|
|
4,732
|
|
|
|
|
3,469
|
Other
|
|
|
1,176
|
|
|
|
|
940
|
Total interest expense
|
|
|
19,743
|
|
|
|
|
10,375
|
Net interest income
|
|
|
147,922
|
|
|
|
|
134,315
|
Provision for loan losses
|
|
|
10,000
|
|
|
|
|
9,000
|
Net interest income after provision for loan losses
|
|
|
137,922
|
|
|
|
|
125,315
|
|
|
|
|
|
|
|
|
Noninterest Income
|
|
|
|
|
|
|
|
Trust and securities processing
|
|
|
44,002
|
|
|
|
|
42,541
|
Trading and investment banking
|
|
|
4,101
|
|
|
|
|
7,542
|
Service charges on deposits
|
|
|
21,905
|
|
|
|
|
22,075
|
Insurance fees and commissions
|
|
|
301
|
|
|
|
|
646
|
Brokerage fees
|
|
|
6,353
|
|
|
|
|
5,377
|
Bankcard fees
|
|
|
18,123
|
|
|
|
|
17,752
|
Gains on sale of securities available for sale, net
|
|
|
139
|
|
|
|
|
468
|
Other
|
|
|
10,601
|
|
|
|
|
6,516
|
Total noninterest income
|
|
|
105,525
|
|
|
|
|
102,917
|
|
|
|
|
|
|
|
|
Noninterest Expense
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
|
107,968
|
|
|
|
|
103,652
|
Occupancy, net
|
|
|
10,953
|
|
|
|
|
10,968
|
Equipment
|
|
|
18,826
|
|
|
|
|
17,482
|
Supplies and services
|
|
|
3,760
|
|
|
|
|
4,094
|
Marketing and business development
|
|
|
5,034
|
|
|
|
|
4,141
|
Processing fees
|
|
|
11,161
|
|
|
|
|
9,199
|
Legal and consulting
|
|
|
3,844
|
|
|
|
|
5,050
|
Bankcard
|
|
|
4,626
|
|
|
|
|
4,903
|
Amortization of other intangible assets
|
|
|
1,562
|
|
|
|
|
2,046
|
Regulatory fees
|
|
|
2,905
|
|
|
|
|
3,833
|
Other
|
|
|
5,237
|
|
|
|
|
8,442
|
Total noninterest expense
|
|
|
175,876
|
|
|
|
|
173,810
|
Income before income taxes
|
|
|
67,571
|
|
|
|
|
54,422
|
Income tax provision
|
|
|
10,038
|
|
|
|
|
12,446
|
Income from continuing operations
|
|
$
|
57,533
|
|
|
|
$
|
41,976
|
Discontinued Operations
|
|
|
|
|
|
|
|
(Loss) income from discontinued operations
|
|
|
(917
|
)
|
|
|
|
2,907
|
Income tax (benefit) expense
|
|
|
(170
|
)
|
|
|
|
702
|
(Loss) income from discontinued operations
|
|
|
(747
|
)
|
|
|
|
2,205
|
Net income
|
|
$
|
56,786
|
|
|
|
$
|
44,181
|
|
|
|
|
|
|
|
|
Per Share Data
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
1.16
|
|
|
|
$
|
0.85
|
(Loss) income from discontinued operations
|
|
|
(0.01
|
)
|
|
|
|
0.05
|
Net income - basic
|
|
|
1.15
|
|
|
|
|
0.90
|
Diluted:
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
1.15
|
|
|
|
|
0.84
|
(Loss) income from discontinued operations
|
|
|
(0.01
|
)
|
|
|
|
0.05
|
Net income - diluted
|
|
|
1.14
|
|
|
|
|
0.89
|
Dividends
|
|
|
0.290
|
|
|
|
|
0.255
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
49,420,606
|
|
|
|
|
49,109,872
|
Weighted average shares outstanding - diluted
|
|
|
49,917,454
|
|
|
|
|
49,829,508
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Comprehensive Income
|
|
UMB Financial Corporation
|
(unaudited, dollars in thousands)
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
56,786
|
|
|
|
$
|
44,181
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
Unrealized gains and losses on debt securities:
|
|
|
|
|
|
|
|
Change in unrealized holding gains and losses, net
|
|
|
(80,662
|
)
|
|
|
|
22,271
|
|
Less: Reclassifications adjustment for gains included in net income
|
|
|
(139
|
)
|
|
|
|
(468
|
)
|
Change in unrealized gains and losses on debt securities during the
period
|
|
|
(80,801
|
)
|
|
|
|
21,803
|
|
Change in unrealized gains and losses on derivative hedges
|
|
|
2,202
|
|
|
|
|
246
|
|
Income tax benefit (expense)
|
|
|
19,782
|
|
|
|
|
(8,666
|
)
|
Other comprehensive (loss) income before reclassifications
|
|
|
(58,817
|
)
|
|
|
|
13,383
|
|
Amounts reclassified from accumulated other comprehensive income
|
|
|
(13,049
|
)
|
|
|
|
-
|
|
Net current-period other comprehensive (loss) income
|
|
|
(71,866
|
)
|
|
|
|
13,383
|
|
Comprehensive (loss) income
|
|
$
|
(15,080
|
)
|
|
|
$
|
57,564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Changes in Shareholders' Equity
|
|
|
UMB Financial Corporation
|
(unaudited, dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
Common
|
|
|
Capital
|
|
|
Retained
|
|
|
Comprehensive
|
|
|
Treasury
|
|
|
|
|
|
|
Stock
|
|
|
Surplus
|
|
|
Earnings
|
|
|
Loss
|
|
|
Stock
|
|
|
Total
|
Balance - January 1, 2017
|
|
$
|
55,057
|
|
$
|
1,033,419
|
|
|
$
|
1,142,887
|
|
|
$
|
(57,542
|
)
|
|
$
|
(211,437
|
)
|
|
$
|
1,962,384
|
|
Total comprehensive income
|
|
|
-
|
|
|
-
|
|
|
|
44,181
|
|
|
|
13,383
|
|
|
|
-
|
|
|
|
57,564
|
|
Cash dividends ($0.255 per share)
|
|
|
-
|
|
|
-
|
|
|
|
(12,481
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(12,481
|
)
|
Purchase of treasury stock
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,028
|
)
|
|
|
(4,028
|
)
|
Issuance of equity awards
|
|
|
-
|
|
|
(4,140
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
4,611
|
|
|
|
471
|
|
Recognition of equity based compensation
|
|
|
-
|
|
|
2,861
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,861
|
|
Sale of treasury stock
|
|
|
-
|
|
|
150
|
|
|
|
-
|
|
|
|
-
|
|
|
|
117
|
|
|
|
267
|
|
Exercise of stock options
|
|
|
-
|
|
|
935
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,905
|
|
|
|
3,840
|
|
Balance - March 31, 2017
|
|
$
|
55,057
|
|
$
|
1,033,225
|
|
|
$
|
1,174,587
|
|
|
$
|
(44,159
|
)
|
|
$
|
(207,832
|
)
|
|
$
|
2,010,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance - January 1, 2018
|
|
$
|
55,057
|
|
$
|
1,046,095
|
|
|
$
|
1,338,110
|
|
|
$
|
(45,525
|
)
|
|
$
|
(212,206
|
)
|
|
$
|
2,181,531
|
|
Total comprehensive loss
|
|
|
-
|
|
|
-
|
|
|
|
56,786
|
|
|
|
(71,866
|
)
|
|
|
-
|
|
|
|
(15,080
|
)
|
Reclassification of certain tax effects
|
|
|
-
|
|
|
-
|
|
|
|
12,917
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12,917
|
|
Cash dividends ($0.290 per share)
|
|
|
-
|
|
|
-
|
|
|
|
(14,473
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(14,473
|
)
|
Purchase of treasury stock
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,951
|
)
|
|
|
(5,951
|
)
|
Issuance of equity awards
|
|
|
-
|
|
|
(2,959
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
3,454
|
|
|
|
495
|
|
Recognition of equity based compensation
|
|
|
-
|
|
|
2,270
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,270
|
|
Sale of treasury stock
|
|
|
-
|
|
|
145
|
|
|
|
-
|
|
|
|
-
|
|
|
|
140
|
|
|
|
285
|
|
Exercise of stock options
|
|
|
-
|
|
|
1,122
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,125
|
|
|
|
5,247
|
|
Cumulative effect adjustments
|
|
|
-
|
|
|
-
|
|
|
|
145
|
|
|
|
-
|
|
|
|
-
|
|
|
|
145
|
|
Balance - March 31, 2018
|
|
$
|
55,057
|
|
$
|
1,046,673
|
|
|
$
|
1,393,485
|
|
|
$
|
(117,391
|
)
|
|
$
|
(210,438
|
)
|
|
$
|
2,167,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances / Yields and Rates
|
|
|
UMB Financial Corporation
|
|
(tax - equivalent basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, dollars in thousands)
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
|
Assets
|
|
|
Balance
|
|
Yield/Rate
|
|
|
|
Balance
|
|
Yield/Rate
|
|
|
|
Loans, net of unearned interest
|
|
$
|
11,286,522
|
|
4.53
|
%
|
|
$
|
10,560,134
|
|
4.09
|
|
%
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
3,868,977
|
|
2.07
|
|
|
|
4,198,795
|
|
1.85
|
|
|
|
Tax-exempt
|
|
|
3,635,573
|
|
2.64
|
|
|
|
3,487,456
|
|
3.07
|
|
|
|
Total securities
|
|
|
7,504,550
|
|
2.35
|
|
|
|
7,686,251
|
|
2.40
|
|
|
|
Federal funds and resell agreements
|
|
|
160,972
|
|
2.62
|
|
|
|
238,201
|
|
1.56
|
|
|
|
Interest-bearing due from banks
|
|
|
431,638
|
|
1.48
|
|
|
|
309,125
|
|
0.72
|
|
|
|
Trading securities
|
|
|
44,592
|
|
4.44
|
|
|
|
60,462
|
|
2.45
|
|
|
|
Total earning assets
|
|
|
19,428,274
|
|
3.61
|
|
|
|
18,854,173
|
|
3.31
|
|
|
|
Allowance for loan losses
|
|
|
(101,502)
|
|
|
|
|
|
(93,106)
|
|
|
|
|
|
Other assets
|
|
|
1,420,251
|
|
|
|
|
|
1,473,282
|
|
|
|
|
|
Total assets
|
|
$
|
20,747,023
|
|
|
|
|
$
|
20,234,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
|
|
$
|
10,707,850
|
|
0.52
|
%
|
|
$
|
9,644,005
|
|
0.25
|
|
%
|
|
Federal funds and repurchase agreements
|
|
|
1,561,158
|
|
1.23
|
|
|
|
2,329,630
|
|
0.60
|
|
|
|
Borrowed funds
|
|
|
78,965
|
|
6.04
|
|
|
|
76,468
|
|
4.99
|
|
|
|
Total interest-bearing liabilities
|
|
|
12,347,973
|
|
0.65
|
|
|
|
12,050,103
|
|
0.35
|
|
|
|
Noninterest-bearing demand deposits
|
|
|
6,050,997
|
|
|
|
|
|
5,998,943
|
|
|
|
|
|
Other liabilities
|
|
|
188,456
|
|
|
|
|
|
202,248
|
|
|
|
|
|
Shareholders' equity
|
|
|
2,159,597
|
|
|
|
|
|
1,983,055
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
20,747,023
|
|
|
|
|
$
|
20,234,349
|
|
|
|
|
|
Net interest spread
|
|
|
|
|
2.96
|
%
|
|
|
|
|
2.96
|
|
%
|
|
Net interest margin
|
|
|
|
|
3.19
|
|
|
|
|
|
3.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Segment Information
|
|
UMB Financial Corporation
|
(unaudited, dollars in thousands)
|
|
|
Three Months Ended March 31, 2018
|
|
|
Commercial Banking
|
|
Institutional Banking
|
|
Personal Banking
|
|
Healthcare Services
|
|
Total
|
Net interest income
|
|
$
|
91,968
|
|
$
|
15,744
|
|
$
|
30,920
|
|
$
|
9,290
|
|
$
|
147,922
|
Provision for loan losses
|
|
|
7,978
|
|
|
350
|
|
|
1,672
|
|
|
-
|
|
|
10,000
|
Noninterest income
|
|
|
20,598
|
|
|
45,419
|
|
|
30,714
|
|
|
8,794
|
|
|
105,525
|
Noninterest expense
|
|
|
62,246
|
|
|
46,833
|
|
|
54,994
|
|
|
11,803
|
|
|
175,876
|
Income before taxes
|
|
|
42,342
|
|
|
13,980
|
|
|
4,968
|
|
|
6,281
|
|
|
67,571
|
Income tax expense
|
|
|
6,284
|
|
|
2,080
|
|
|
738
|
|
|
936
|
|
|
10,038
|
Income from continuing operations
|
|
$
|
36,058
|
|
$
|
11,900
|
|
$
|
4,230
|
|
$
|
5,345
|
|
$
|
57,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets
|
|
$
|
9,785,000
|
|
$
|
3,826,000
|
|
$
|
4,982,000
|
|
$
|
2,154,000
|
|
$
|
20,747,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2017
|
|
|
Commercial Banking
|
|
Institutional Banking
|
|
Personal Banking
|
|
Healthcare Services
|
|
Total
|
Net interest income
|
|
$
|
85,390
|
|
$
|
11,582
|
|
$
|
30,075
|
|
$
|
7,268
|
|
$
|
134,315
|
Provision for loan losses
|
|
|
6,820
|
|
|
469
|
|
|
1,711
|
|
|
-
|
|
|
9,000
|
Noninterest income
|
|
|
19,206
|
|
|
45,666
|
|
|
28,536
|
|
|
9,509
|
|
|
102,917
|
Noninterest expense
|
|
|
62,750
|
|
|
44,778
|
|
|
55,997
|
|
|
10,285
|
|
|
173,810
|
Income before taxes
|
|
|
35,026
|
|
|
12,001
|
|
|
903
|
|
|
6,492
|
|
|
54,422
|
Income tax expense
|
|
|
8,007
|
|
|
2,734
|
|
|
224
|
|
|
1,481
|
|
|
12,446
|
Income from continuing operations
|
|
$
|
27,019
|
|
$
|
9,267
|
|
$
|
679
|
|
$
|
5,011
|
|
$
|
41,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets
|
|
$
|
9,611,000
|
|
$
|
3,466,000
|
|
$
|
5,347,000
|
|
$
|
1,810,000
|
|
$
|
20,234,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The company has strategically aligned its operations into the
following four reportable segments: Commercial Banking,
Institutional Banking, Personal Banking, and Healthcare Services. Senior
executive officers regularly evaluate business segment financial results
produced by the company's internal reporting system in deciding how to
allocate resources and assess performance for individual business
segments. Previously, the company had the following two business
segments: Bank and Asset Servicing. The company's
reportable segments include certain corporate overhead, technology and
service costs that are allocated based on methodologies that are applied
consistently between periods. For comparability purposes, amounts
in all periods are based on methodologies in effect at March 31, 2018.
|
|
Non-GAAP Financial Measures
|
UMB Financial Corporation
|
Net operating income non-GAAP reconciliations:
|
|
|
|
(unaudited, dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2018
|
|
2017
|
|
Income from continuing operations (GAAP)
|
|
$
|
57,533
|
|
$
|
41,976
|
|
|
Adjustments:
|
|
|
|
|
|
|
Acquisition and divestiture expenses
|
|
|
18
|
|
|
-
|
|
|
Severance expense
|
|
|
1,947
|
|
|
476
|
|
|
Tax-impact of adjustments (i)
|
|
|
(436
|
)
|
|
(171
|
)
|
|
Total Non-GAAP adjustments (net of tax)
|
|
|
1,529
|
|
|
305
|
|
|
Net operating income from continuing operations (Non-GAAP)
|
|
$
|
59,062
|
|
$
|
42,281
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing operations - diluted (GAAP)
|
|
$
|
1.15
|
|
$
|
0.84
|
|
|
Acquisition and divestiture expenses
|
|
|
-
|
|
|
-
|
|
|
Severance expense
|
|
|
0.04
|
|
|
0.01
|
|
|
Tax-impact of adjustments (i)
|
|
|
(0.01
|
)
|
|
-
|
|
|
Operating earnings per share from continuing operations - diluted
(Non-GAAP)
|
|
$
|
1.18
|
|
$
|
0.85
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
Return on average assets
|
|
|
1.12
|
|
%
|
0.84
|
|
%
|
Return on average equity
|
|
|
10.80
|
|
|
8.58
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
Operating return on average assets
|
|
|
1.15
|
|
%
|
0.85
|
|
%
|
Operating return on average equity
|
|
|
11.09
|
|
|
8.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating noninterest expense and operating efficiency ratio
non-GAAP reconciliations:
|
|
|
UMB Financial Corporation
|
(unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
|
2018
|
|
|
|
2017
|
|
Noninterest expense
|
|
|
|
$
|
175,876
|
|
|
$
|
173,810
|
|
Adjustments to arrive at operating noninterest expense (pre-tax):
|
|
|
|
|
|
|
|
|
|
|
Acquisition and divestiture expenses
|
|
|
|
|
18
|
|
|
|
-
|
|
Severance expense
|
|
|
|
|
1,947
|
|
|
|
476
|
|
Total Non-GAAP adjustments (pre-tax)
|
|
|
|
|
1,965
|
|
|
|
476
|
|
Operating noninterest expense (Non-GAAP)
|
|
|
|
$
|
173,911
|
|
|
$
|
173,334
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
|
|
|
|
$
|
175,876
|
|
|
$
|
173,810
|
|
Less: Amortization of other intangibles
|
|
|
|
|
1,562
|
|
|
|
2,046
|
|
Noninterest expense, net of amortization of other intangibles
(Non-GAAP) (numerator A)
|
|
|
|
$
|
174,314
|
|
|
$
|
171,764
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating noninterest expense
|
|
|
|
$
|
173,911
|
|
|
$
|
173,334
|
|
Less: Amortization of other intangibles
|
|
|
|
|
1,562
|
|
|
|
2,046
|
|
Operating expense, net of amortization of other intangibles
(Non-GAAP) (numerator B)
|
|
|
|
$
|
172,349
|
|
|
$
|
171,288
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
$
|
147,922
|
|
|
$
|
134,315
|
|
Noninterest income
|
|
|
|
|
105,525
|
|
|
|
102,917
|
|
Less: Gains on sales of securities available for sale, net
|
|
|
|
|
139
|
|
|
|
468
|
|
Total Non-GAAP Revenue (denominator A)
|
|
|
|
$
|
253,308
|
|
|
$
|
236,764
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (numerator A/denominator A)
|
|
|
|
|
68.82
|
%
|
|
|
72.55
|
%
|
Operating efficiency ratio (Non-GAAP) (numerator B/denominator A)
|
|
|
|
|
68.04
|
|
|
|
72.35
|
|
(i) Calculated using the company's marginal tax rate of 22.2% for
periods beginning after December 31, 2017 as a result of the Tax
Cuts and Jobs Act. The prior period was calculated using the
company's marginal tax rate of 36.0%.
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180424005222/en/
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