Selected second quarter financial
highlights:
- Closed on the acquisition of Marquette
Financial Companies on May 31, 2015, adding assets with an acquired
value of $1.3 billion to the balance sheet
- Loans at June 30, 2015, increased 28.8
percent to $8.9 billion with legacy UMB loans having increased 14.4
percent to $7.9 billion compared to June 30, 2014
- Total deposits at June 30, 2015,
increased 19.1 percent to $14.5 billion with legacy UMB deposits
having increased 11.5 percent to $13.6 billion compared to June 30,
2014
- Noninterest income decreased 10.8
percent from the second quarter 2014 to $119.6 million, and was
55.1 percent of total revenue
- Total assets under management stood at
$42.5 billion at June 30, 2015
- Tier 1 capital ratio remains strong at
12.77 percent
UMB Financial Corporation (Nasdaq: UMBF), a diversified
financial holding company, announced earnings for the three months
ended June 30, 2015 of $30.2 million or $0.65 per share ($0.65
diluted). This is a decrease of $4.5 million, or 12.9 percent,
compared to second quarter 2014 earnings of $34.7 million or $0.77
per share ($0.76 diluted). Earnings for the six months ended June
30, 2015, were $64.0 million or $1.40 per share ($1.39 diluted).
This is an increase of $5.9 million, or 10.1 percent, compared to
the earnings for the six months ended June 30, 2014 of $58.1
million or $1.30 per share ($1.28 diluted).
On May 31, 2015, the company completed its previously announced
acquisition of Marquette Financial Companies (Marquette). This
acquisition resulted in assets with an acquired value of $1.3
billion being added to the company’s balance sheet on that
date.
“The highlight of the second quarter was closing on our
acquisition of Marquette Financial Companies,” said Mariner Kemper,
Chairman and Chief Executive Officer. “The combination is already
producing positive results, helping drive a $2.0 billion, or 28.8
percent, end-of-period increase in total loan balances compared to
the second quarter of 2014. At June 30, the acquired loans plus
production in the legacy Marquette channels comprised $1.0 billion
of the increase in total loan balances. The remaining increase of
$1.0 billion was generated by legacy UMB lenders, for a
year-over-year increase of 14.4 percent, and a linked-quarter
increase of 5.6 percent. This is a testament to the strength of our
commercial-lending franchise.
“While we experienced solid net-interest-income growth in the
second quarter, noninterest income contracted, primarily due to
continued revenue headwinds from Scout Investments. To address
ongoing revenue and expense pressures, we remain focused on revenue
growth but have increased attention on our expense structure as
well. In the second quarter, we consolidated several
customer-facing lines of business—primarily in the bank—to more
efficiently deliver our customer-service strategy. Additionally, we
reorganized our technology, operations, and related support groups.
These and related actions are a strategic first step to improve our
efficiency ratio and are expected to provide an annualized cost
savings of approximately $3.6 million. We have already begun to
engage in additional planning and are committed to sharing details
later in 2015.”
Net Interest Income and
Margin
Net interest income for the second quarter of 2015 increased
$11.2 million, or 13.0 percent, compared to the same period in
2014. Average earning assets increased $1.4 billion, or 10.0
percent, compared to the second quarter of 2014. This increase was
primarily due to a $1.2 billion, or 17.0 percent, increase in
average loans. Marquette added earning assets with an acquired
value of $1.3 billion including loan balances with an acquired
value of $980.3 million on May 31, 2015. Net interest margin
increased six basis points to 2.59 percent for the three months
ended June 30, 2015, compared to the same quarter in 2014.
Noninterest Income and
Expense
Noninterest income decreased $14.5 million, or 10.8 percent, for
the three months ended June 30, 2015, compared to the same period
in 2014. This decrease is largely attributable to decreased trust
and securities processing income of $6.0 million, or 8.1 percent,
for the three months ended June 30, 2015, compared to the same
period in 2014. This decrease in trust and securities processing
income was primarily due to an $8.5 million, or 34.9 percent,
decrease in advisory fee income from the Scout Funds. This decrease
was offset by an increase in fees related to institutional and
personal investment management services of $1.5 million, or 6.6
percent, an increase in fund administration and custody services of
$0.5 million, or 2.2 percent, and an increase in corporate trust
fees of $0.5 million, or 15.8 percent. Equity earnings on
alternative investments decreased $4.6 million due to a decline in
unrealized gains on Prairie Capital Management (PCM) equity method
investments for the three months ended June 30, 2015, compared to
the same period in 2014. Other noninterest income decreased $3.0
million primarily driven by a gain on the sale of a branch property
of $2.8 million that was recorded in the second quarter of
2014.
Noninterest expense increased $5.8 million, or 3.5 percent, for
the three months ended June 30, 2015, compared to the same period
in 2014. Salary and benefits expense increased $10.1 million, or
11.2 percent, due to increases in salaries and wages of $7.4
million, or 13.4 percent, a $1.9 million, or 9.9 percent, increase
in commissions and bonuses, and a $0.8 million, or 5.0 percent,
increase in employee benefits expense. The acquisition of Marquette
added approximately $3.4 million of salary and benefits expense for
the second quarter of 2015. Equipment expense increased $2.5
million, or 19.3 percent, due to increased computer and hardware
costs related to investments for regulatory requirements, cyber
security and the ongoing modernization of our core systems. These
increases were offset by a decrease in processing fees of $2.2
million, or 14.6 percent, due to decreased fees paid by the advisor
to distributors of the Scout Funds. The second quarter of 2014
included an additional $5.3 million of contingency reserve expense
related to the earn-out amount and related incentive bonus
compensation for the employees of PCM that was not repeated in the
second quarter of 2015. Total acquisition expenses recognized in
noninterest expense during the second quarter totaled $0.7
million.
Balance Sheet
Average total assets for the three months ended June 30, 2015
were $17.4 billion compared to $15.6 billion for the same period in
2014, an increase of $1.8 billion, or 11.5 percent. Average earning
assets increased by $1.4 billion for the period, or 10.0
percent.
Average loan balances for the three months ended June 30, 2015,
increased $1.2 billion, or 17.0 percent, to $8.1 billion compared
to the same period in 2014. Actual loan balances on June 30, 2015,
were $8.9 billion, an increase of $2.0 billion, or 28.8 percent,
compared to June 30, 2014. The overall actual loan increase at June
30, 2015 was driven by an increase in commercial real estate loans
of $658.2 million, or 38.1 percent, a $593.3 million, or 16.8
percent, increase in commercial loans, a $211.3 million, or 100.0
percent, increase in asset-based loans, a $163.9 million, or 70.7
percent, increase in construction real estate loans, a $134.2
million, or 44.9 percent, increase in residential real estate
loans, and a $109.2 million, or 100.0 percent, increase in
factoring loans. A significant driver in the increase in loans was
the acquisition of Marquette and its loan portfolio with an
acquired value of $980.3 million at May 31, 2015. These acquired
Marquette loans and loans originated through the legacy Marquette
channels had an actual balance at June 30, 2015 of $1.0 billion.
This total includes $343.4 million in commercial real estate loans,
$211.3 million in asset-based loans, $109.2 million in factoring
loans, $105.7 million in commercial loans, and $98.3 million in
residential real estate loans. The remaining increase in loans of
$1.0 billion compared to June 30, 2014 is comprised of loans
originated through the legacy UMB channels. This increase was
primarily driven by an increase in commercial loans of $487.6
million and a $314.8 million increase in commercial real estate
loans.
Nonperforming loans increased to $37.6 million on June 30, 2015,
from $27.2 million on June 30, 2014. Nonperforming loans are
defined as nonaccrual loans and restructured loans. As a percentage
of loans, nonperforming loans increased to 0.42 percent as of June
30, 2015, compared to 0.39 percent on June 30, 2014. The company’s
allowance for loan losses totaled $77.7 million, or 0.87 percent of
loans, as of June 30, 2015, compared to $76.8 million, or 1.11
percent of loans, as of June 30, 2014.
For the three months ended June 30, 2015, average securities,
including trading securities, totaled $7.4 billion. This is an
increase of $442.3 million, or 6.3 percent, from the same period in
2014.
Average total deposits increased $1.1 billion, or 9.4 percent,
to $13.4 billion for the three months ended June 30, 2015, compared
to the same period in 2014. Deposit balances with an acquired value
of $944.1 million at May 31, 2015 were acquired as part of the
Marquette acquisition. Average noninterest-bearing demand deposits
increased $351.4 million, or 6.8 percent, in the period compared to
the same one in 2014. Average interest-bearing deposits increased
by $798.1 million, or 11.2 percent, in the second quarter of 2015
as compared to the same period in 2014. Total actual deposits as of
June 30, 2015, were $14.5 billion, compared to $12.2 billion as of
June 30, 2014, a 19.1 percent increase. Also, for the three months
ended June 30, 2015, average noninterest-bearing demand deposits
were 41.0 percent of average total deposits.
As of June 30, 2015, UMB had total shareholders’ equity of $1.9
billion, an increase of 16.0 percent as compared to June 30, 2014.
This increase is primarily attributable to the common stock
issuance associated with the acquisition of Marquette of $179.7
million at May 31, 2015.
“The acquisition of Marquette furthers our strategy to shift the
mix of earning assets,” said Brian Walker, Chief Financial Officer.
“This continued shift, along with solid loan growth across our
footprint, resulted in a 60.1 percent average loan-to-deposit ratio
compared to 56.2 percent for the quarter ended June 30, 2014, and a
net interest margin of 2.59 percent, an increase from 2.53 percent
a year ago.”
Year-to-Date
Earnings for the six months ended June 30, 2015, were $64.0
million or $1.40 per share ($1.39 diluted). This is an increase of
$5.9 million, or 10.1 percent, compared to earnings for the six
months ended June 30, 2014, of $58.1 million or $1.30 per share
($1.28 diluted).
Net interest income for the six months ended June 30, 2015,
increased $16.1 million, or 9.4 percent, compared to the same
period in 2014. Net interest margin increased to 2.53 percent for
the six months ended June 30, 2015, as compared to 2.45 percent for
the same period in 2014.
Noninterest income decreased $12.2 million, or 4.8 percent, to
$244.8 million for the six months ended June 30, 2015, as compared
to the same period in 2014. The decrease in noninterest income is
primarily driven by decreased trust and securities processing
income of $10.2 million, or 7.1 percent. The decrease in trust and
securities processing income was primarily due to a $17.4 million,
or 35.2 percent, decrease in advisory fee income from the Scout
Funds, partially offset by an increase of $3.7 million, or 8.1
percent, in fees related to institutional and personal investment
management services and a $2.6 million, or 5.9 percent, increase in
fund administration and custody services. Equity earnings on
alternative investments decreased $8.0 million compared to the same
period in 2014. Gains on securities available for sale of $8.3
million were recognized in the first six months of 2015 compared to
$4.0 million for the same period in 2014, a $4.3 million
increase.
Noninterest expense decreased $1.8 million, or 0.5 percent, for
the six months ended June 30, 2015, compared to the same period in
2014. This decrease was driven by a $20.3 million contingency
reserve expense 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. This decrease was largely offset by an increase in
salaries and employee benefits of $19.7 million, or 11.0 percent,
compared to the same period in 2014. The drivers of this increase
include an increase in salary and wage expense of $12.2 million, or
11.3 percent, an increase in bonus and commission expense of $5.1
million, or 13.7 percent, and an increase in employee benefits
expense of $2.4 million, or 7.2 percent. The acquisition of
Marquette added approximately $3.4 million of salary and benefits
expense for the first six months of 2015. Total acquisition
expenses recognized in noninterest expense during the first six
months of 2015 totaled $1.5 million.
Dividend Declaration
The Board of Directors declared during the company’s quarterly
board meeting a $0.235 quarterly cash dividend, payable on Oct. 1,
2015, to shareholders of record at the close of business on Sept.
10, 2015.
Conference Call
The company plans to host a conference call to discuss its 2015
second quarter earnings results on July 29, 2015, at 8:30 a.m.
(CDT).
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 can also be accessed by visiting the
investor relations area of umbfinancial.com or by using the
following the link:
UMB Financial 2Q 2015 Conference Call
A replay of the conference call may be heard through August 12,
2015, by calling (toll-free) 877-344-7529 or (U.S.) 412-317-0088.
The replay pass code required for playback is 10068556. The call
replay may also be accessed via the company's website
umbfinancial.com by visiting the investor relations area.
Forward-Looking Statements and Non-GAAP
Reconciliation:
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—such as our statements about expected
cost savings. 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, 2014, 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.
In this release, we provide information using the tangible book
value (TBV) of Marquette Financial Companies (MFC). This table is
being provided as an update to materials furnished on December 15,
2014 in relation to our announcement of the agreement to acquire
MFC. This information supplements the results that are reported
according to generally accepted accounting principles (GAAP) and
should not be viewed in isolation from, or as a substitute for,
GAAP results. The difference between the TBV of MFC and the
comparable GAAP measure is reconciled later in this release. We
believe that this information and the reconciliation may be useful
to investors because TBV is commonly used by investors as an
additional measure of a company’s total value and the strength and
adequacy of its capital-management strategies.
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,
as well as two national specialty-lending businesses. 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
2015 2014
Loans $ 8,916,128 $ 6,920,683 Allowance for loan losses
(77,721 ) (76,802 ) Net loans 8,838,407
6,843,881 Loans held for sale 2,819 3,156
Investment securities: Available for sale 6,925,115 6,700,623 Held
to maturity 446,881 238,799 Trading securities 36,616 26,484 Other
securities 77,800 67,527 Total
investment securities 7,486,412
7,033,433 Federal funds and resell agreements 91,326 82,652
Interest-bearing due from banks 698,940 255,453 Cash and due from
banks 490,171 639,878 Bank premises and equipment, net 279,996
250,655 Accrued income 84,979 73,805 Goodwill 228,217 209,758 Other
intangibles 53,649 49,888 Other assets 163,811
120,131 Total assets $ 18,418,727 $
15,562,690
Liabilities
Deposits: Noninterest-bearing demand $ 5,887,525 $ 5,399,733
Interest-bearing demand and savings 7,303,306 5,754,573 Time
deposits under $100,000 479,820 442,361 Time deposits of $100,000
or more 825,995 577,622 Total
deposits 14,496,646 12,174,289
Federal funds and repurchase agreements 1,774,435 1,607,294
Long-term debt 88,346 5,745 Accrued expenses and taxes 155,246
131,996 Other liabilities 46,998 42,024
Total liabilities 16,561,671
13,961,348
Shareholders'
Equity
Common stock 55,057 55,057 Capital surplus 1,009,965 887,086
Retained earnings 1,005,563 922,268 Accumulated other comprehensive
(loss) income (2,141 ) 16,901 Treasury stock (211,388 )
(279,970 ) Total shareholders' equity
1,857,056 1,601,342 Total liabilities
and shareholders' equity $ 18,418,727 $ 15,562,690
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
2015 2014
2015 2014 Loans $ 71,396 $
60,309 $ 135,628 $ 119,209 Securities: Taxable interest 19,163
19,021 37,971 37,982 Tax-exempt interest 10,607
9,798 20,522 19,705 Total
securities income 29,770 28,819 58,493 57,687 Federal funds and
resell agreements 151 46 202 79 Interest-bearing due from banks 434
466 1,286 1,589 Trading securities 133 149
228 272 Total interest income
101,884 89,789 195,837
178,836
Interest
Expense
Deposits 3,522 3,092 6,570 6,151 Federal funds and repurchase
agreements 470 454 962 935 Other 532 73
587 135 Total interest expense 4,524
3,619 8,119
7,221 Net interest income 97,360 86,170 187,718 171,615 Provision
for loan losses 5,000 5,000
8,000 9,500 Net interest income after
provision for loan losses 92,360 81,170
179,718 162,115
Noninterest
Income
Trust and securities processing 67,381 73,357 134,680 144,920
Trading and investment banking 5,568 6,409 11,690 10,732 Service
charges on deposits 21,625 20,627 43,166 42,185 Insurance fees and
commissions 586 732 1,156 1,335 Brokerage fees 2,936 3,075 5,790
4,890 Bankcard fees 18,035 17,185 34,218 32,808 Gains on sale of
securities available for sale, net 967 2,569 8,303 4,039 Equity
(loss) earnings on alternative investments (1,125 ) 3,462 (1,967 )
5,992 Other 3,577 6,585 7,721
10,064 Total noninterest income 119,550
134,001 244,757
256,965
Noninterest
Expense
Salaries and employee benefits 99,585 89,532 198,122 178,413
Occupancy, net 10,312 9,705 20,322 19,410 Equipment 15,410 12,920
29,582 25,583 Supplies, postage and telephone 4,603 5,554 8,928
10,191 Marketing and business development 6,530 6,307 11,148 10,909
Processing fees 12,654 14,817 25,437 28,468 Legal and consulting
5,917 4,632 10,295 8,004 Bankcard 4,953 4,997 9,721 8,685
Amortization of other intangibles 2,569 3,074 5,324 6,176
Regulatory fees 2,873 2,709 5,629 5,225 Contingency reserve - 5,272
- 20,272 Other 6,558 6,682
11,869 16,796 Total noninterest expense
171,964 166,201 336,377 338,132 Income before income taxes
39,946 48,970 88,098 80,948 Income tax provision 9,732
14,298 24,119
22,863
Net income $ 30,214 $ 34,672 $
63,979 $ 58,085
Per Share
Data
Net income - basic $ 0.65 $ 0.77 $ 1.40 $ 1.30 Net income – diluted
0.65 0.76 1.39 1.28 Dividends 0.235 0.225 0.470 0.450 Weighted
average shares outstanding 46,240,869 44,823,370 45,624,276
44,782,944 Weighted average shares outstanding - diluted 46,611,096
45,421,148 46,029,978 45,409,289
Consolidated Statements of
Comprehensive Income
UMB Financial Corporation (unaudited, dollars in
thousands, except per share data)
Three
Months Ended
June 30,
Six Months Ended
June 30,
2015 2014 2015
2014 Net Income $ 30,214 $
34,672 $ 63,979 $ 58,085 Other comprehensive income, net of tax:
Unrealized (losses) gains on securities: Change in unrealized
holding (losses) gains, net (45,553 ) 50,910 (12,877 ) 83,369 Less:
Reclassifications adjustment for gains included in net income
(967 ) (2,569 ) (8,303 )
(4,039 ) Change in unrealized (losses) gains on securities
during the period (46,520 ) 48,341 (21,180 ) 79,330 Income tax
benefit (expense) 17,569 (18,143 )
8,033 (29,789 ) Other
comprehensive (loss) income (28,951 ) 30,198
(13,147 ) 49,541
Comprehensive income $ 1,263 $ 64,870 $
50,832 $ 107,626
Consolidated Statements of
Shareholders' Equity
UMB Financial
Corporation (unaudited, dollars in thousands, except per share
data)
Accumulated Other Common
Capital Retained Comprehensive Treasury
Stock Surplus
Earnings Income (Loss)
Stock Total Balance - January 1, 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 Balance
- January 1, 2015 $ 55,057 $ 894,602 $ 963,911 $ 11,006 $ (280,818
) $ 1,643,758 Total comprehensive income (loss) - - 63,979 (13,147
) - 50,832 Cash dividends ($0.47 per share) - - (22,327 ) - -
(22,327 ) Purchase of treasury stock - - - - (5,379 ) (5,379 )
Issuance of equity awards - (5,509 ) - - 5,969 460 Recognition of
equity based compensation - 5,779 - - - 5,779 Net tax benefit
related to equity compensation plans - 664 - - - 664 Sale of
treasury stock - 306 - - 197 503 Exercise of stock options - 1,488
- - 1,541 3,029 Common stock issuance for
acquisition
- 112,635 -
- 67,102 179,737
Balance – June 30, 2015 $ 55,057 $ 1,009,965
$ 1,005,563 $ (2,141 ) $ (211,388 )
$ 1,857,056
Average Balances
/ Yields and Rates UMB
Financial Corporation (tax - equivalent basis)
(unaudited, dollars in thousands)
Three Months Ended June
30, 2015 2014 Average
Average Average Average Assets
Balance Yield/Rate
Balance Yield/Rate Loans, net of
unearned interest $ 8,071,991 3.55 % $ 6,897,840 3.51 % Securities:
Taxable 4,974,668 1.55 4,836,080 1.58 Tax-exempt 2,407,759
2.72 2,104,368 2.88 Total securities 7,382,427
1.93 6,940,448 1.97 Federal funds and resell agreements 69,053 0.88
32,692 0.56 Interest-bearing due from banks 414,446 0.42 619,094
0.30 Trading securities 37,063 1.70 36,785
1.80 Total earning assets 15,974,980 2.70 14,526,859 2.63
Allowance for loan losses (77,667 ) (75,929 ) Other assets
1,515,687 1,167,262 Total assets $ 17,413,000
$ 15,618,192
Liabilities and
Shareholders' Equity Interest-bearing deposits $ 7,924,696 0.18
% $ 7,126,614 0.17 % Federal funds and repurchase agreements
1,715,836 0.11 1,592,986 0.11 Borrowed funds 49,827
4.28 5,771 5.07 Total interest-bearing liabilities
9,690,359 0.19 8,725,371 0.17 Noninterest-bearing demand deposits
5,504,333 5,152,980 Other liabilities 473,676 154,229 Shareholders'
equity 1,744,632 1,585,612 Total
liabilities and shareholders' equity $ 17,413,000 $
15,618,192 Net interest spread 2.51 % 2.46 % Net interest
margin 2.59 2.53
Six Months Ended June 30,
2015 2014 Average
Average Average Average Assets
Balance Yield/Rate
Balance Yield/Rate Loans, net of
unearned interest $ 7,772,709 3.52 % $ 6,788,991 3.54 % Securities:
Taxable 4,921,907 1.56 4,861,475 1.58 Tax-exempt 2,331,422
2.73 2,107,119 2.90 Total securities 7,253,329
1.93 6,968,594 1.98 Federal funds and resell agreements 51,793 0.79
29,939 0.53 Interest-bearing due from banks 759,238 0.34 1,154,811
0.28 Trading securities 33,661 1.76 37,682
1.63 Total earning assets 15,870,730 2.63 14,980,017 2.55
Allowance for loan losses (77,124 ) (75,466 ) Other assets
1,330,476 1,160,124 Total assets $ 17,124,082
$ 16,064,675
Liabilities and
Shareholders' Equity Interest-bearing deposits $ 7,764,368 0.17
% $ 7,545,182 0.16 % Federal funds and repurchase agreements
1,713,386 0.11 1,630,169 0.12 Borrowed funds 29,193
4.05 5,738 4.74 Total interest-bearing liabilities
9,506,947 0.17 9,181,089 0.16 Noninterest-bearing demand deposits
5,582,180 5,160,206 Other liabilities 325,066 156,608 Shareholders'
equity 1,709,889 1,566,772 Total
liabilities and shareholders' equity $ 17,124,082 $
16,064,675 Net interest spread 2.46 % 2.39 % Net interest
margin 2.53 2.45
SECOND QUARTER 2015
FINANCIAL HIGHLIGHTS UMB Financial
Corporation
(unaudited, dollars in thousands, except
share and per share data)
Six Months Ended June 30 2015 2014 Net
interest income $ 187,718 $ 171,615 Provision for loan losses 8,000
9,500 Noninterest income 244,757 256,965 Noninterest expense
336,377 338,132 Income before income taxes 88,098 80,948 Net income
63,979 58,085 Net income per share - Basic 1.40 1.30 Net income per
share - Diluted 1.39 1.28 Return on average assets 0.75 % 0.73 %
Return on average equity 7.55 % 7.48 %
Three Months Ended
June 30 Net interest income $ 97,360 $ 86,170 Provision for
loan losses 5,000 5,000 Noninterest income 119,550 134,001
Noninterest expense 171,964 166,201 Income before income taxes
39,946 48,970 Net income 30,214 34,672 Net income per share - Basic
0.65 0.77 Net income per share - Diluted 0.65 0.76 Return on
average assets 0.70 % 0.89 % Return on average equity 6.95 % 8.77 %
At June 30 Assets $ 18,418,727 $ 15,562,690 Loans,
net of unearned interest 8,916,128 6,920,683 Securities 7,486,412
7,033,433 Deposits 14,496,646 12,174,289 Shareholders' equity
1,857,056 1,601,342 Book value per share 37.68 35.21 Market price
per share 57.02 63.39 Equity to assets 10.08 % 10.29 % Allowance
for loan losses $ 77,721 $ 76,802 As a % of loans 0.87 % 1.11 %
Nonaccrual and restructured loans $ 37,649 $ 27,175 As a % of loans
0.42 % 0.39 % Loans over 90 days past due $ 7,645 $ 4,522 As a % of
loans 0.09 % 0.07 % Other real estate owned $ 2,553 $ 1,455 Net
loan charge-offs quarter-to-date $ 4,758 $ 3,713 As a % of average
loans 0.24 % 0.22 % Net loan charge-offs year-to-date $ 6,419 $
7,449 As a % of average loans 0.17 % 0.22 % Common shares
outstanding 49,288,971 45,475,197
Average Balances
Six Months Ended June 30 Assets $ 17,124,082 $ 16,064,675
Loans, net of unearned interest 7,772,709 6,788,991 Securities
7,286,990 7,006,276 Deposits 13,346,548 12,705,388 Shareholders'
equity 1,709,889 1,566,772
Business Segment Information
UMB Financial Corporation
(unaudited, dollars in thousands)
Three Months Ended June
30, 2015 Bank
PaymentSolutions
InstitutionalInvestmentManagement
AssetServicing
Total Net interest income $ 82,758 $ 13,599 $ - $
1,003 $ 97,360 Provision for loan losses 2,612 2,388 - - 5,000
Noninterest income 47,548 23,293 25,684 23,025 119,550 Noninterest
expense 107,293 26,399 18,285
19,987 171,964 Income before taxes
20,401 8,105 7,399 4,041 39,946 Income tax expense 4,915
2,046 1,785 986
9,732 Net income $ 15,486 $ 6,059 $ 5,614
$ 3,055 $ 30,214 Average assets $ 13,423,000 $
2,980,000 $ 70,000 $ 940,000 $ 17,413,000
Three
Months Ended June 30, 2014 Bank
PaymentSolutions
InstitutionalInvestmentManagement
AssetServicing
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 56,024 21,201 33,999 22,777 134,001 Noninterest
expense 100,788 24,506 22,053
18,854 166,201 Income before taxes
25,031 6,771 11,945 5,223 48,970 Income tax expense 7,482
1,931 3,389 1,496
14,298 Net income $ 17,549 $ 4,840 $ 8,556
$ 3,727 $ 34,672 Average assets $ 12,008,000 $
2,148,000 $ 69,000 $ 1,393,000 $ 15,618,000
Six
Months Ended June 30, 2015 Bank
PaymentSolutions
InstitutionalInvestmentManagement
AssetServicing
Total Net interest income $ 158,085 $ 27,632 $
1
$
2,000
$
187,718 Provision for loan losses 4,211 3,789 - - 8,000 Noninterest
income 99,099 46,432 52,768 46,458 244,757 Noninterest expense
207,861 51,062 36,227
41,227 336,377 Income before taxes 45,112 19,213
16,542 7,231 88,098 Income tax expense 12,313
5,373 4,511 1,922 24,119
Net income $ 32,799 $ 13,840 $
12,031
$
5,309
$
63,979 Average assets $ 13,089,000 $ 3,031,000 $
72,000
$
932,000
$
17,124,000
Six Months Ended June 30, 2014 Bank
PaymentSolutions
InstitutionalInvestmentManagement
AssetServicing
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 103,458 41,420 68,094 43,993 256,965 Noninterest expense
208,337 45,453 47,943
36,399 338,132 Income before taxes 33,611
16,357 20,148 10,832 80,948 Income tax expense 9,801
4,524 5,532 3,006
22,863 Net income $ 23,810 $ 11,833 $
14,616
$
7,826
$
58,085 Average assets $ 12,204,000 $ 2,023,000 $
71,000
$
1,767,000
$
16,065,000
Non-GAAP Reconciliation
Schedule UMB Financial Corporation (unaudited, dollars
in thousands)
Price to MFC Tangible Book Value at May 31,
2015
GAAP Total Shareholders' Equity (1)
$127,277 Deduct: Goodwill and Other Intangibles
(7,626)
Tangible Book Value $119,651
Total Consideration (2)
$179,737 Price to Tangible Book Value 150% Price to GAAP Total
Shareholders’ Equity 141% (1) Source: MFC financial statements as
of May 31, 2015. (2) Based on UMBF 05/29/15 closing price per share
of $51.79 and consideration of 3.47 million shares
of UMBF stock, subject to post-closing
adjustments.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150728006396/en/
UMB Financial CorporationMedia Contact:Kelli
Christman, 816-860-5088orInvestor Relations Contact:Kay
Gregory, 816-860-7106
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