UMBF UMB Financial Corporation

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): 1/27/2015

 

 

UMB FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Commission File Number : 0-4887

 

MO		43-0903811
(State or other jurisdiction of incorporation)		(IRS Employer Identification No.)

1010 Grand Blvd., Kansas City, MO 64106

(Address of principal executive offices, including zip code)

(816) 860-7000

(Registrant’s telephone number, including area code)

 

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13c-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Item 2.02

Results of Operations and Financial Condition

On January 27, 2015, UMB Financial Corporation (the “Company”) issued a press release announcing the financial results for the Company for the quarter ending December 31, 2014. A copy of the press release is attached as Exhibit 99.1.

The information contained in Item 2.02 of this Current Report and in Exhibit 99.1 is being furnished and shall not be deemed to be “filed” with the SEC for the purposes of Section 18 of the Exchange Act of 1934, as amended or otherwise subject to the liabilities of that section.

 

Item 7.01

Regulation FD Disclosure

The information provided under Item 7.01 of this Current Report on Form 8-K is being furnished and is not deemed to be “filed” with the SEC for the purposes of Section 18 of the Exchange Act of 1934, as amended or otherwise subject to the liabilities of that section.

The Company is furnishing a copy of materials that will be used in the Company’s shareholder conference call on January 28, 2015, at 8:30 a.m. (CST). A copy of the materials is attached as Exhibit 99.2 and will be available on the Company’s website at www.umbfinancial.com. The materials are dated January 27, 2015, and the Company disclaims any obligation to correct or update any of the materials in the future.

The Company’s January 27, 2015, press release that is attached as Exhibit 99.1 also announced that the Board of Directors declared a regular quarterly dividend of $0.235 per share payable on April 1, 2015, to shareholders of record on March 10, 2015.

 

Item 9.01

Financial Statements and Exhibits

 

Exhibit 99.1		Press Release announcing financial results for quarter ending December 31, 2014, and announcing dividend declaration
Exhibit 99.2		Investor Presentation Materials, dated January 27, 2015.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: January 27, 2015

 

Exhibit 99.1

 

 

UMB Financial Corporation		News Release

1010 Grand Boulevard

Kansas City, MO 64106

816.860.7000

umb.com

//FOR IMMEDIATE RELEASE//

Media Contact:

Kelli Christman

816.860.5088

Kelli.Christman@umb.com

Investor Relations Contact:

Abby Wendel

816.860.1685

Abigail.Wendel@umb.com

UMB Financial Corporation Reports Fourth Quarter Net Income of $26.9 Million and

Full-Year 2014 Net Income of $120.7 Million

Selected highlights:

 

•

Fourth quarter 2014 earnings of $26.9 million, or $0.59 per diluted share, a decrease of $7.7 million compared to fourth quarter 2013 earnings

 

•

Equity earnings on alternative investments decreased $19.6 million in the fourth quarter 2014 compared to the fourth quarter 2013 due largely to mark-to-market valuations related to Prairie Capital Management investments

 

•

Noninterest income was 55.9 percent of total revenue for the fourth quarter 2014, down from 61.2 percent in the fourth quarter 2013

 

•

Full-year 2014 earnings of $120.7 million, or $2.65 per diluted share, a decrease of $13.3 million compared to full-year 2013 earnings

 

•

Net loans at December 31, 2014 increased 14.6 percent to $7.4 billion compared to December 31, 2013

 

•

Nonperforming loans decreased to 0.37 percent of loans as of December 31, 2014, from 0.47 percent of loans as of December 31, 2013

 

•

Total assets under management stood at $42.8 billion as of December 31, 2014, an increase of 3.4 percent compared to year-end 2013

 

•

Announced agreement to acquire Marquette Financial Companies to expand our presence in key growth markets of Phoenix and Dallas

KANSAS CITY, Mo. (January 27, 2015) – UMB Financial Corporation (Nasdaq: UMBF), a diversified financial holding company, announced earnings for the three months ended December 31, 2014, of $26.9 million or $0.60 per share ($0.59 diluted). This is a decrease of $7.7 million, or 22.3 percent, compared to fourth quarter 2013 earnings of $34.7 million or $0.78 per share ($0.77 diluted). Earnings for the year ended December 31, 2014, were $120.7 million or $2.69 per share ($2.65 diluted) or a decrease of $13.3 million, or 9.9 percent, compared to the prior year-end earnings of $134.0 million or $3.25 per share ($3.20 diluted).

“A decrease in equity earnings related to Prairie Capital Management coupled with the associated contingency reserve in 2014 was a primary cause of the change in net income year-over-year, masking the strength in our results,” said Mariner Kemper, chairman and chief executive officer. “All in all, 2014 was another successful year for UMB. We continue to demonstrate strong business fundamentals with double-digit,

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year-over-year loan growth, excellent credit metrics, diversified revenue streams and strong customer relationships. We once again hold the top deposit market-share position in Kansas City, and we are pleased with the growth across our footprint. Expectations for continuing headwinds in 2015 only reinforce the value of our differentiated business model, which is time-tested, and we believe our long-term performance will continue to set us apart from our peers.”

Net Interest Income and Margin

Net interest income for the fourth quarter of 2014 increased $5.0 million, or 5.8 percent, compared to the same period in 2013. Average earning assets increased by $697.0 million, or 4.8 percent, compared to the fourth quarter of 2013. This increase was due largely to an $837.2 million, or 12.9 percent, increase in average loans and a $177.3 million, or 2.5 percent, increase in average total securities, including trading securities, offset by a decrease of $339.7 million, or 37.3 percent, in interest-bearing due from banks. Net interest margin increased one basis point to 2.52 percent for the three months ended December 31, 2014, compared to the same period in 2013.

Noninterest Income and Expense

Noninterest income decreased $20.4 million, or 15.0 percent, for the three months ended December 31, 2014, compared to the same period in 2013. This decrease is primarily attributable to a decrease in equity earnings on alternative investments related to Prairie Capital Management (PCM) equity method investments of $19.6 million, or 129.7 percent. For the three months ended December 31, 2014, unrealized losses on PCM equity method investments totaled $4.5 million, compared to unrealized gains of $15.1 million for the same period last year. In addition, trust and securities processing income decreased $2.6 million, or 3.7 percent, for the three months ended December 31, 2014, compared to the same period in 2013. The decrease in trust and securities processing income was driven by a $6.7 million, or a 26.2 percent, decrease in advisory fee income from the Scout Funds, offset by a $1.9 million, or 8.3 percent, increase in fees related to institutional and personal investment management services, and a $1.7 million, or 8.3 percent, increase in fund administration and custody services. Other noninterest income decreased $2.5 million, or 40.5 percent, for the three months ended December 31, 2014, compared to the same period in 2013. Bankcard fees increased $3.0 million, or 20.6 percent, due to an increase in interchange income.

Looking at the fee businesses, Kemper said, “In the fourth quarter, noninterest income for Scout Investments decreased $5.7 million due largely to the shift in the mix of assets under management for the fourth quarter 2014 relative to the mix in the fourth quarter of 2013. AUM for the quarter remained approximately the same at $31.2 billion, but equity assets were 33 percent of total AUM in the fourth quarter 2014 compared to 51 percent in the same period a year ago. In other fee businesses, trust and securities processing income for Fund Services increased 8.3 percent in the fourth quarter, compared with the same period a year ago, driven by assets under administration of $198.3 billion as of December 31, 2014. In Payment Solutions, fourth quarter card purchase volume was $2.1 billion, driving bankcard fees to $17.3 million.”

Noninterest expense decreased $3.7 million, or 2.2 percent, for the three months ended December 31, 2014, compared to the same period in 2013. Processing fees decreased $1.4 million, or 9.6 percent, primarily due to a decrease in fees paid by the advisor to third-party distributors of the Scout Funds. Other noninterest expense decreased by $9.7 million, or 64.8 percent, due to a $7.7 million decrease in fair value adjustments on contingent consideration liabilities. Salaries and employee benefits expense increased $1.4 million, or 1.6 percent, due to an increase in salaries and wages of $3.4 million, or 6.2 percent, offset by a decrease in employee benefits expense of $1.6 million or 11.0 percent. Equipment expense increased by $1.4 million, or 10.8 percent, due to an increase in computer hardware and software expenses. Bankcard expenses increased $2.2 million, or 49.3 percent, due to an increase in bankcard fraud losses of $1.9 million. Legal and consulting expenses increased $2.1 million, or 35.7 percent. Included in total noninterest expense for the three month period ended December 31, 2014 is $1.9 million of acquisition-related expenses, including $1.7 million of legal and consulting expenses, related to the pending acquisition of Marquette Financial Companies.

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Balance Sheet

Average total assets for the three months ended December 31, 2014, were $16.2 billion compared to $15.5 billion for the same period in 2013, an increase of $0.7 billion, or 4.5 percent. Average earning assets increased by $0.7 billion, or 4.8 percent, for the year.

Average loan balances for the three months ended December 31, 2014, increased $0.8 million, or 12.9 percent, to $7.3 billion compared to the same period in 2013. Actual loan balances on December 31, 2014, were $7.5 billion, an increase of $0.9 billion, or 14.5 percent, compared to December 31, 2013. This increase was primarily driven by an increase in commercial loans of $512.5 million, or 15.5 percent, an increase in commercial real estate loans of $164.2 million, or 9.6 percent, an increase in construction loans of $103.1 million, or 67.5 percent, and an increase in HELOCs of $77.5 million, or 13.7 percent. Nonperforming loans, defined as nonaccrual loans and restructured loans, decreased to $27.4 million on December 31, 2014, from $30.7 million on December 31, 2013. As a percentage of loans, nonperforming loans decreased to 0.37 percent as of December 31, 2014, compared to 0.47 percent as of December 31, 2013. The company’s allowance for loan losses totaled $76.1 million, or 1.02 percent of loans, as of December 31, 2014, compared to $74.8 million, or 1.15 percent of loans, as of December 31, 2013.

For the three months ended December 31, 2014, average securities, including trading securities, totaled $7.2 billion. This is an increase of $177.3 million, or 2.5 percent, from the same period in 2013.

Average total deposits increased $151.1 million, or 1.2 percent, to $12.9 billion for the three months ended December 31, 2014, compared to the same period in 2013. Average noninterest-bearing demand deposits increased $500.4 million, or 10.2 percent, compared to 2013. Average interest-bearing deposits decreased by $349.3 million, or 4.5 percent, in 2014 as compared to 2013. Total deposits as of December 31, 2014 and 2013 remained the same at $13.6 billion. Also, as of December 31, 2014, noninterest-bearing demand deposits were 41.4 percent of total deposits, compared to 38.0 percent as of December 31, 2013.

As of December 31, 2014, UMB had total shareholders’ equity of $1.6 billion, an increase of 9.1 percent, as compared to December 31, 2013.

Year-to-Date

Earnings for the year ended December 31, 2014, were $120.7 million or $2.69 per share ($2.65 diluted). This is a decrease of $13.3 million, or 9.9 percent, compared to the prior year-end earnings of $134.0 million or $3.25 per share ($3.20 diluted).

Net interest income for the year ended December 31, 2014, increased $16.8 million, or 5.0 percent, compared to the same period in 2013. Average earning assets increased by $1.0 billion, or 6.9 percent, compared to the same period in 2013. This increase was due primarily to a $754.0 million, or 12.1 percent, increase in average loans, and a $179.3 million, or 27.0 percent, increase in interest-bearing due from banks. Net interest margin decreased six basis points to 2.49 percent for the year ended December 31, 2014, compared to the same period in 2013.

Noninterest income increased $6.9 million, or 1.4 percent, to $498.7 million for the year ended December 31, 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 $22.1 million, or 8.3 percent. The increase in trust and securities processing income was primarily due to a $12.8 million, or 15.4 percent, increase in fees related to institutional and personal investment management services, and an $8.4 million, or 10.6 percent, increase in fund administration and custody services, offset by a $1.9 million, or 2.0 percent, decrease in advisory fee income from the Scout Funds. Bankcard fees increased $5.2 million, or 8.4 percent, due to increased interchange income. These increases in noninterest income were offset by a decrease in gains on sales of securities available for sale of $4.4 million, or 51.7 percent, and a decrease in equity earnings on alternative investments on PCM equity method investments of $15.1 million, or 79.1 percent, for the year ended December 31, 2014, compared to the same period in 2013.

Noninterest expense increased $42.7 million, or 6.8 percent, for the year ended December 31, 2014, compared to the same period in 2013. This increase was driven by an increase in salaries and employee benefits expense of $18.9 million, or 5.6 percent, an increase in equipment expense of $4.4 million, or 9.0

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percent, and a $20.3 million contingency reserve. These increases were offset by a decrease in other noninterest expense of $4.6 million due to a decline in the fair value adjustments on contingent consideration liabilities.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors declared a $0.235 per share quarterly cash dividend, payable on April 1, 2015, to shareholders of record at the close of business on March 10, 2015.

Conference Call

The company plans to host a conference call to discuss its 2014 fourth quarter and full-year earnings results on Jan. 28, 2015, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 888-317-6016 or (U.S.) 412-317-6016 and requesting to join the UMB Financial call. The live call can also be accessed by visiting the investor relations area of umbfinancial.com or by using the following the link:

http://services.choruscall.com/links/umbf150128.html

A replay of the conference call may be heard until Feb. 11, 2015, by calling (toll-free) 877-344-7529 or (U.S.) 412-317-0088. The replay pass code required for playback is 10058917. The call replay may also be accessed via the company’s website umbfinancial.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. 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, 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 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 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.

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CONSOLIDATED BALANCE SHEETS			UMB Financial Corporation
(unaudited, dollars in thousands)
		December 31,
		2014				2013
Assets
Loans		$	7,465,794			$	6,520,512
Allowance for loan losses			(76,140	)			(74,751	)
Net loans			7,389,654				6,445,761
Loans held for sale			624				1,357
Investment securities:
Available for sale			6,911,936				6,762,411
Held to maturity			278,054				209,770
Trading securities			27,203				28,464
Federal Reserve Bank Stock and other			68,474				50,482
Total investment securities			7,285,667				7,051,127
Federal funds and resell agreements			118,105				87,018
Interest-bearing due from banks			1,539,386				2,093,467
Cash and due from banks			444,299				521,001
Bank premises and equipment, net			257,835				249,689
Accrued income			79,297				78,216
Goodwill			209,758				209,758
Other intangibles			43,991				55,585
Other assets			132,344				118,873
Total assets		$	17,500,960			$	16,911,852
Liabilities
Deposits:
Noninterest-bearing demand		$	5,643,989			$	5,189,998
Interest-bearing demand and savings			6,709,281				7,001,126
Time deposits under $100,000			424,925				491,792
Time deposits of $100,000 or more			838,664				957,850
Total deposits			13,616,859				13,640,766
Federal funds and repurchase agreements			2,025,132				1,583,218
Short-term debt			—				107
Long-term debt			8,810				5,055
Accrued expenses and taxes			180,074				153,450
Other liabilities			26,327				23,191
Total liabilities			15,857,202				15,405,787
Shareholders’ Equity
Common stock			55,057				55,057
Capital surplus			894,602				882,407
Retained earnings			963,911				884,630
Accumulated other comprehensive income			11,006				(32,640	)
Treasury stock			(280,818	)			(283,389	)
Total shareholders’ equity			1,643,758				1,506,065
Total liabilities and shareholders’ equity		$	17,500,960			$	16,911,852

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Consolidated Statements of Income											UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2014				2013				2014				2013
Interest Income
Loans		$	64,433			$	59,206			$	245,278			$	229,665
Securities:
Taxable interest			19,338				18,881				76,204				75,202
Tax-exempt interest			9,759				10,183				39,209				40,399
Total securities income			29,097				29,064				115,413				115,601
Federal funds and resell agreements			93				67				259				193
Interest-bearing due from banks			510				642				2,525				1,918
Trading securities			85				152				396				964
Total interest income			94,218				89,131				363,871				348,341
Interest Expense
Deposits			3,076				2,961				12,242				13,183
Federal funds and repurchase agreements			323				296				1,616				1,739
Other			(95	)			(40	)			(42	)			150
Total interest expense			3,304				3,217				13,816				15,072
Net interest income			90,914				85,914				350,055				333,269
Provision for loan losses			3,000				4,000				17,000				17,500
Net interest income after provision for loan losses			87,914				81,914				333,055				315,769
Noninterest Income
Trust and securities processing			69,072				71,685				288,054				265,948
Trading and investment banking			4,840				4,317				19,398				20,641
Service charges on deposits			21,480				20,692				85,299				84,133
Insurance fees and commissions			765				661				3,011				3,727
Brokerage fees			2,595				2,743				10,761				11,470
Bankcard fees			17,321				14,365				67,250				62,031
Gains on sale of available for sale securities, net			62				(10	)			4,127				8,542
Equity earnings on alternative investments			(4,487	)			15,100				3,975				19,048
Other			3,600				6,054				16,813				16,293
Total noninterest income			115,248				135,607				498,688				491,833
Noninterest Expense
Salaries and employee benefits			90,115				88,691				358,569				339,691
Occupancy, net			10,312				10,116				40,197				39,291
Equipment			14,618				13,195				53,609				49,207
Supplies and services			5,403				5,777				20,411				20,387
Marketing and business development			7,182				7,190				24,148				22,703
Processing fees			13,496				14,936				56,049				57,791
Legal and consulting			7,907				5,826				20,407				18,703
Bankcard			6,812				4,563				19,594				18,381
Amortization of intangible assets			2,974				3,164				12,193				13,218
Regulatory fees			2,643				2,064				10,445				9,129
Contingency reserve			—				—				20,272				—
Other			5,251				14,904				31,032				35,677
Total noninterest expense			166,713				170,426				666,926				624,178
Income before income taxes			36,449				47,095				164,817				183,424
Income tax provision			9,509				12,432				44,162				49,459
Net income		$	26,940			$	34,663			$	120,655				133,965
														$
Per Share Data
Net income - basic		$	0.60			$	0.78			$	2.69			$	3.25
Net income – diluted			0.59				0.77				2.65				3.20
Dividends			0.235				0.225				0.910				0.870
Weighted average shares outstanding			44,920,106				44,511,742				44,844,578				41,275,839

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Condensed Statements of Consolidated Comprehensive Income						UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
		Three Months Ended December 31,								Year Ended December 31,
		2014				2013				2014				2013
Net Income		$	26,940			$	34,663			$	120,655			$	133,965
Other comprehensive income, net of tax:
Unrealized gains on securities:
Change in unrealized holding gains (losses), net			14,991				(26,769	)			74,147				(178,500	)
Less: Reclassifications adjustment for (gains) losses included in net income			(62	)			10				(4,127	)			(8,542	)
Change in unrealized gains (losses) on securities during the period			14,929				(26,759	)			70,020				(187,042	)
Income tax (expense) benefit			(5,750	)			9,804				(26,374	)			68,814
Other comprehensive income (loss)			9,179				(16,955	)			43,646				(118,228	)
Comprehensive income		$	36,119			$	17,708			$	164,301			$	15,737

 

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			—				—				133,965				(118,228	)			—				15,737
Cash dividends ($0.87 per share)			—				—				(36,350	)			—				—				(36,350	)
Purchase of treasury stock			—				—				—				—				(3,501	)			(3,501	)
Issuance of equity awards			—				(1,651	)			—				—				2,101				450
Recognition of equity based compensation			—				7,936				—				—				—				7,936
Net tax benefit related to equity compensation plans			—				1,224				—				—				—				1,224
Sale of treasury stock			—				520				—				—				256				776
Exercise of stock options			—				3,986				—				—				5,032				9,018
Common Stock Issuance			—				138,323				—				—				93,107				231,430
Balance – December 31, 2013		$	55,057			$	882,407			$	884,630			$	(32,640	)		$	(283,389	)		$	1,506,065
Balance - January 1, 2014		$	55,057				882,407				884,630				(32,640	)			(283,389	)			1,506,065
Total Comprehensive income			—				—				120,655				43,646				—				164,301
Cash dividends ($0.91 per share)			—				—				(41,374	)			—				—				(41,374	)
Purchase of treasury stock			—				—				—				—				(5,741	)			(5,741	)
Issuance of equity awards			—				(2,338	)			—				—				2,827				489
Recognition of equity based compensation			—				9,172				—				—				—				9,172
Net tax benefit related to equity compensation plans			—				1,880				—				—				—				1,880
Sale of treasury stock			—				596				—				—				340				936
Exercise of stock options			—				2,885				—				—				5,145				8,030
Balance – December 31, 2014		$	55,057			$	894,602			$	963,911			$	11,006			$	(280,818	)		$	1,643,758

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Average Balances / Yields and Rates			UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)		Three Months Ended December 31,
		2014								2013
		Average Balance				Average Yield/Rate				Average Balance				Average Yield/Rate
Assets
Loans, net of unearned interest		$	7,320,930				3.49	%		$	6,483,711				3.62	%
Securities:
Taxable			5,006,800				1.53				4,820,959				1.55
Tax-exempt			2,148,256				2.77				2,148,904				2.91
Total securities			7,155,056				1.91				6,969,863				1.97
Federal funds and resell agreements			73,821				0.50				51,635				0.51
Interest-bearing due from banks			571,921				0.35				911,623				0.28
Trading securities			29,019				1.46				36,888				1.93
Total earning assets			15,150,747				2.61				14,453,720				2.60
Allowance for loan losses			(77,527	)							(75,135	)
Other assets			1,158,402								1,155,176
Total assets		$	16,231,622							$	15,533,761
Liabilities and Shareholders’ Equity
Interest-bearing deposits		$	7,446,164				0.16	%		$	7,795,495				0.15	%
Federal funds and repurchase agreements			1,535,253				0.08				1,172,917				0.10
Borrowed funds			7,021				(5.37	)			5,223				(2.96	)
Total interest-bearing liabilities			8,988,438				0.15				8,973,635				0.14
Noninterest-bearing demand deposits			5,403,856								4,903,429
Other liabilities			187,359								142,552
Shareholders’ equity			1,651,969								1,514,145
Total liabilities and shareholders’ equity		$	16,231,622							$	15,533,761
Net interest spread							2.46	%							2.47	%
Net interest margin							2.52								2.51
		Year Ended December 31,
		2014								2013
		Average Balance				Average Yield/Rate				Average Balance				Average Yield/Rate
Assets
Loans, net of unearned interest		$	6,975,338				3.52	%		$	6,221,318				3.69	%
Securities:
Taxable			4,898,826				1.56				4,876,304				1.54
Tax-exempt			2,122,822				2.84				2,102,216				2.97
Total securities			7,021,648				1.94				6,978,520				1.97
Federal funds and resell agreements			48,869				0.53				36,589				0.53
Interest-bearing due from banks			843,134				0.30				663,818				0.29
Trading securities			32,189				1.46				56,022				1.90
Total earning assets			14,921,178				2.58				13,956,267				2.66
Allowance for loan losses			(76,459	)							(72,370	)
Other assets			1,154,174								1,146,865
Total assets		$	15,998,893							$	15,030,762
Liabilities and Shareholders’ Equity
Interest-bearing deposits		$	7,494,744				0.16	%		$	7,220,675				0.18	%
Federal funds and repurchase agreements			1,535,038				0.11				1,613,584				0.11
Borrowed funds			6,059				(0.69	)			4,972				3.02
Total interest-bearing liabilities			9,035,841				0.15				8,839,231				0.17
Noninterest-bearing demand deposits			5,196,529								4,709,643
Other liabilities			166,758								144,781
Shareholders’ equity			1,599,765								1,337,107
Total liabilities and shareholders’ equity		$	15,998,893							$	15,030,762
Net interest spread							2.43	%							2.49	%
Net interest margin							2.49								2.55

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FOURTH QUARTER 2014
FINANCIAL HIGHLIGHTS			UMB Financial Corporation
(unaudited, dollars in thousands, except share and per share data)
Year Ended December 31		2014				2013
Net interest income		$	350,055			$	333,269
Provision for loan losses			17,000				17,500
Noninterest income			498,688				491,833
Noninterest expense			666,926				624,178
Income before income taxes			164,817				183,424
Net income			120,655				133,965
Net income per share - Basic			2.69				3.25
Net income per share - Diluted			2.65				3.20
Return on average assets			0.75	%			0.89	%
Return on average equity			7.54	%			10.02	%
Three Months Ended December 31
Net interest income		$	90,914			$	85,914
Provision for loan losses			3,000				4,000
Noninterest income			115,248				135,607
Noninterest expense			166,713				170,426
Income before income taxes			36,449				47,095
Net income			26,940				34,663
Net income per share - Basic			0.60				0.78
Net income per share - Diluted			0.59				0.77
Return on average assets			0.66	%			0.89	%
Return on average equity			6.47	%			9.08	%
At December 31
Assets		$	17,500,960			$	16,911,852
Loans, net of unearned interest			7,465,794				6,520,512
Securities			7,285,667				7,051,127
Deposits			13,616,859				13,640,766
Shareholders’ equity			1,643,758				1,506,065
Book value per share			36.10				33.30
Market price per share			56.89				64.28
Equity to assets			9.39	%			8.91	%
Allowance for loan losses		$	76,140			$	74,751
As a % of loans			1.02	%			1.15	%
Nonaccrual and restructured loans		$	27,382			$	30,706
As a % of loans			0.37	%			0.47	%
Loans over 90 days past due		$	3,830			$	3,218
As a % of loans			0.05	%			0.05	%
Other real estate owned		$	394			$	1,288
Net loan charge-offs quarter-to-date		$	4,176			$	4,187
As a % of average loans			0.23	%			0.26	%
Net loan charge-offs year-to-date		$	15,610			$	14,175
As a % of average loans			0.22	%			0.23	%
Common shares outstanding			45,532,188				45,221,237
Average Balances
Year Ended December 31
Assets		$	15,998,893			$	15,030,762
Loans, net of unearned interest			6,975,338				6,221,318
Securities			7,053,837				7,034,542
Deposits			12,691,273				11,930,318
Shareholders’ equity			1,599,765				1,337,107

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Business Segment Information										UMB Financial Corporation
(unaudited, dollars in thousands)
		Three Months Ended December 31, 2014
		Bank				Payment Solutions				Institutional Investment Management				Asset Servicing				Total
Net interest income		$	75,862			$	14,003			$	—			$	1,049			$	90,914
Provision for loan losses			1,617				1,383				—				—				3,000
Noninterest income			42,380				21,479				29,212				22,177				115,248
Noninterest expense			97,070				26,507				23,156				19,980				166,713
Income before taxes			19,555				7,592				6,056				3,246				36,449
Income tax expense			5,158				2,029				1,445				877				9,509
Net income		$	14,397			$	5,563			$	4,611			$	2,369			$	26,940
Average assets		$	12,324,000			$	2,948,000			$	72,000			$	888,000			$	16,232,000
		Three Months Ended December 31, 2013
		Bank				Payment Solutions				Institutional Investment Management				Asset Servicing				Total
Net interest income		$	73,874			$	11,505			$	(10	)		$	545			$	85,914
Provision for loan losses			1,765				2,235				—				—				4,000
Noninterest income			62,406				17,737				34,892				20,572				135,607
Noninterest expense			99,080				23,121				29,582				18,643				170,426
Income before taxes			35,435				3,886				5,300				2,474				47,095
Income tax expense			8,918				1,271				1,127				1,116				12,432
Net income		$	26,517			$	2,615			$	4,173			$	1,358			$	34,663
Average assets		$	11,277,000			$	1,780,000			$	75,000			$	2,402,000			$	15,534,000

 

		Year Ended December 31, 2014
		Bank				Payment Solutions				Institutional Investment Management				Asset Servicing				Total
Net interest income		$	292,357			$	52,251			$	(3	)		$	5,450			$	350,055
Provision for loan losses			9,175				7,825				—				—				17,000
Noninterest income			194,223				84,477				131,226				88,762				498,688
Noninterest expense			405,065				94,177				92,008				75,676				666,926
Income before taxes			72,340				34,726				39,215				18,536				164,817
Income tax expense			19,487				9,311				10,331				5,033				44,162
Net income		$	52,853			$	25,415			$	28,884			$	13,503			$	120,655
Average assets		$	12,099,000			$	2,456,000			$	72,000			$	1,372,000			$	15,999,000
		Year Ended December 31, 2013
		Bank				Payment Solutions				Institutional Investment Management				Asset Servicing				Total
Net interest income		$	285,112			$	45,832			$	(32	)		$	2,357			$	333,269
Provision for loan losses			5,535				11,965				—				—				17,500
Noninterest income			210,535				74,223				126,442				80,633				491,833
Noninterest expense			376,307				86,746				88,336				72,789				624,178
Income before taxes			113,805				21,344				38,074				10,201				183,424
Income tax expense			28,548				6,739				10,002				4,170				49,459
Net income		$	85,257			$	14,605			$	28,072			$	6,031			$	133,965
Average assets		$	11,255,000			$	1,736,000			$	77,000			$	1,963,000			$	15,031,000

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