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): 7/28/2015
UMB FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Commission
File Number: 0-4887
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MO |
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43-0903811 |
(State or other jurisdiction
of incorporation) |
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(IRS Employer
Identification No.) |
1010 Grand Blvd., Kansas City, MO 64106
(Address of principal executive offices, including zip code)
(816) 860-7000
(Registrants 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) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act ( 17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13c-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 |
Results of Operations and Financial Condition |
On July 28, 2015, UMB Financial Corporation (the
Company) issued a press release announcing the financial results for the Company for the quarter ending June 30, 2015. A copy of the press release is attached as Exhibit 99.1.
The information contained under Item 2.02 of this Current Report and in Exhibit 99.1 is being furnished and shall not be deemed filed 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 Companys shareholder conference call on July 29, 2015, at 8:30 a.m. (CDT). A
copy of the materials is attached as Exhibit 99.2 and will be available on the Companys website at www.umb.com. The materials are dated July 28, 2015, and the Company disclaims any obligation to correct or update any of the materials in
the future.
Item 9.01 |
Financial Statements and Exhibits |
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Exhibit 99.1 |
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Press release announcing 1st quarter financial results. |
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Exhibit 99.2 |
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Presentation for Conference Call. |
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.
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UMB FINANCIAL CORPORATION |
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By: |
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/s/ Brian J.
Walker |
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Brian J. Walker |
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EVP, Chief Financial Officer and Chief Accounting Officer |
Date: July 28, 2015
Exhibit 99.1
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UMB Financial Corporation |
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News Release |
1010 Grand Boulevard |
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Kansas City, MO 64106 |
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816.860.7000 umb.com |
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//FOR IMMEDIATE RELEASE//
Media Contact: Kelli Christman: 816.860.5088
Investor Relations
Contact: Kay Gregory: 816.860.7106
UMB Financial Corporation Reports Second Quarter 2015 Earnings of $30.2 million, or $0.65 per
Diluted Share
Selected second quarter financial highlights:
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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 |
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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 |
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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 |
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Noninterest income decreased 10.8 percent from the second quarter 2014 to $119.6 million, and was 55.1 percent of total revenue |
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Total assets under management stood at $42.5 billion at June 30, 2015 |
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Tier 1 capital ratio remains strong at 12.77 percent |
KANSAS CITY, Mo. (July 28, 2015)
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 companys 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 businessprimarily in the bankto 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 companys 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 companys 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 companys 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 factssuch 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 companys 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.
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Consolidated Balance Sheets |
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UMB Financial Corporation |
(unaudited, dollars in thousands) |
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June 30, |
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2015 |
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2014 |
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Assets |
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Loans |
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$ |
8,916,128 |
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$ |
6,920,683 |
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Allowance for loan losses |
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(77,721 |
) |
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(76,802 |
) |
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|
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Net loans |
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8,838,407 |
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|
|
6,843,881 |
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Loans held for sale |
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2,819 |
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|
|
3,156 |
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Investment securities: |
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Available for sale |
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6,925,115 |
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|
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6,700,623 |
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Held to maturity |
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446,881 |
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|
238,799 |
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Trading securities |
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36,616 |
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|
|
26,484 |
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Other securities |
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77,800 |
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67,527 |
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Total investment securities |
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7,486,412 |
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7,033,433 |
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Federal funds and resell agreements |
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91,326 |
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82,652 |
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Interest-bearing due from banks |
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698,940 |
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255,453 |
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Cash and due from banks |
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490,171 |
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|
639,878 |
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Bank premises and equipment, net |
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|
279,996 |
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|
|
250,655 |
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Accrued income |
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|
84,979 |
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|
|
73,805 |
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Goodwill |
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228,217 |
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|
|
209,758 |
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Other intangibles |
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53,649 |
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|
|
49,888 |
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Other assets |
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163,811 |
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120,131 |
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Total assets |
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$ |
18,418,727 |
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$ |
15,562,690 |
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Liabilities |
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Deposits: |
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Noninterest-bearing demand |
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$ |
5,887,525 |
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$ |
5,399,733 |
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Interest-bearing demand and savings |
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7,303,306 |
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5,754,573 |
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Time deposits under $100,000 |
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479,820 |
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442,361 |
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Time deposits of $100,000 or more |
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825,995 |
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577,622 |
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Total deposits |
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14,496,646 |
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12,174,289 |
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Federal funds and repurchase agreements |
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1,774,435 |
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|
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1,607,294 |
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Long-term debt |
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|
88,346 |
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|
|
5,745 |
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Accrued expenses and taxes |
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|
155,246 |
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|
|
131,996 |
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Other liabilities |
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46,998 |
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42,024 |
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Total liabilities |
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16,561,671 |
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|
13,961,348 |
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Shareholders Equity |
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Common stock |
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55,057 |
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|
55,057 |
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Capital surplus |
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|
1,009,965 |
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|
|
887,086 |
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Retained earnings |
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|
1,005,563 |
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|
|
922,268 |
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Accumulated other comprehensive (loss) income |
|
|
(2,141 |
) |
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|
16,901 |
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Treasury stock |
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(211,388 |
) |
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|
(279,970 |
) |
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|
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Total shareholders equity |
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|
1,857,056 |
|
|
|
1,601,342 |
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|
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Total liabilities and shareholders equity |
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$ |
18,418,727 |
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$ |
15,562,690 |
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Consolidated Statements of Income |
|
UMB Financial Corporation |
(unaudited, dollars in thousands except share and per share data) |
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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|
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2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
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Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
71,396 |
|
|
$ |
60,309 |
|
|
$ |
135,628 |
|
|
$ |
119,209 |
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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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
|
Capital Surplus |
|
|
Retained Earnings |
|
|
Accumulated Other Comprehensive Income (Loss) |
|
|
Treasury 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 Balance |
|
|
Average Yield/Rate |
|
|
Average Balance |
|
|
Average Yield/Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Balance |
|
|
Average Yield/Rate |
|
|
Average Balance |
|
|
Average Yield/Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
Payment Solutions |
|
|
Institutional Investment Management |
|
|
Asset Servicing |
|
|
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 |
|
|
Payment Solutions |
|
|
Institutional Investment Management |
|
|
Asset Servicing |
|
|
Total |
|
Net interest income |
|
$ |
72,481 |
|
|
$ |
12,390 |
|
|
$ |
(1 |
) |
|
$ |
1,300 |
|
|
$ |
86,170 |
|
Provision for loan losses |
|
|
2,686 |
|
|
|
2,314 |
|
|
|
|
|
|
|
|
|
|
|
5,000 |
|
Noninterest income |
|
|
56,024 |
|
|
|
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 |
|
|
Payment Solutions |
|
|
Institutional Investment Management |
|
|
Asset Servicing |
|
|
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 |
|
|
Payment Solutions |
|
|
Institutional Investment Management |
|
|
Asset Servicing |
|
|
Total |
|
Net interest income |
|
$ |
143,602 |
|
|
$ |
24,778 |
|
|
$ |
(3 |
) |
|
$ |
3,238 |
|
|
$ |
171,615 |
|
Provision for loan losses |
|
|
5,112 |
|
|
|
4,388 |
|
|
|
|
|
|
|
|
|
|
|
9,500 |
|
Noninterest income |
|
|
103,458 |
|
|
|
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. |
Strength in Balance. July 28, 2015 UMB Financial Exhibit 99.2 |
2 Cautionary Notice about Forward-Looking Statements This presentation 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 factssuch 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 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. |
2Q
2015 Performance Highlights |
$ in
thousands, except per-share data; unaudited 4
2Q'15 2Q'14 1Q'15 vs. 2Q'14 vs. 1Q'15 Net Interest Income 97,360 $ 86,170 $ 90,358 $ 13.0 7.7 Noninterest Income 119,550 134,001 125,207 (10.8) (4.5) Pre-Provision Net Revenue 216,910 220,171 215,565 (1.5) 0.6 Noninterest Expense 171,964 166,201 164,413 3.5 4.6 Income Before Provision & Taxes 44,946 53,970 51,152 (16.7) (12.1) Provision for loan losses 5,000 5,000 3,000 - 66.7 Income before Taxes 39,946 48,970 48,152 (18.4) (17.0) Income Tax Provision 9,732 14,298 14,387 (31.9) (32.4) Net Income 30,214 $ 34,672 $ 33,765 $ (12.9) (10.5) Diluted EPS 0.65 $ 0.76 $ 0.74 $ (14.5) (12.2) Dividends per share 0.235 0.225 0.235 4.4 0.0 WASO (diluted) 46,611,096 45,421,148 45,437,654 2.6 2.6 % variance Earnings Summary 2Q 2015
|
Key
Performance Metrics 5
*Tier 1 Capital calculated under Basel III requirements beginning in
1Q15. 2Q'15
1Q'15 4Q'14 3Q'14 2Q'14 ROAE 6.95% 8.18% 6.47% 8.77% 8.77% ROAA 0.70% 0.81% 0.66% 0.90% 0.89% Efficiency Ratio 76.41% 75.67% 77.46% 72.25% 73.18% Net Interest Margin 2.59% 2.46% 2.52% 2.53% 2.53% Noninterest Income % of revenue 55.1% 58.1% 55.9% 59.1% 60.9% Avg. Loan/Deposit Ratio 60.1% 56.3% 57.0% 55.9% 56.2% Assets Under Mgmt. (billions) 42.5 $ 42.3 $ 42.8 $ 42.1 $ 43.7 $ Tier 1 Capital Ratio 12.77%* 12.91%* 13.29% 13.72% 13.81% Diluted EPS 0.65 $ 0.74 $ 0.59 $ 0.78 $ 0.76 $ |
Select
Balance Sheet Items 6
$ in thousands, average balances; unaudited
Three Months Ended vs. June '14 vs. Mar '15 Avg. Balance Avg. Balance Avg. Balance Assets Loans, net of unearned interest 8,071,991 $ 3.55 6,897,840 $ 3.51 7,470,101 $ 3.49 17.0 8.1 Total securities 7,419,490 1.93 6,977,233 1.97 7,153,018 1.94 6.3 3.7 Total earning assets 15,974,980 2.70 14,526,859 2.63 15,765,321 2.56 10.0 1.3 Allowance for loan losses (77,667) (75,929) (76,574) 2.3 1.4 Total assets 17,413,000 $ 15,618,192 $ 16,831,955 $ 11.5 3.5 Liabilities and Shareholders' Equity Interest-bearing deposits 7,924,696 $ 0.18 7,126,614 $ 0.17 7,602,258 $ 0.16 11.2 4.2 Total interest-bearing liabilities 9,690,359 0.19 8,725,371 0.17 9,321,497 0.16 11.1 4.0 Noninterest-bearing demand deposits 5,504,333 5,152,980 5,660,893 6.8 (2.8) Shareholders' Equity 1,744,632 1,585,612 1,674,761 10.0 4.2 Total liabilities and shareholders' equity 17,413,000 $ 15,618,192 $ 16,831,955 $ 11.5 3.5 Net interest spread 2.51 2.46 2.40 Net interest margin 2.59 2.53 2.46 % variance June 30, 2015 June 30, 2014 March 31, 2015 Avg Yield / Rate % Avg Yield / Rate % Avg Yield / Rate % |
Consistent Loan Growth
7 End-of-Period Total Loans *On May 31, 2015, we closed the acquisition of Marquette Financial Companies and loans with an acquired value of $980.3 million were added to
the UMB portfolio. At June 30, the acquired loans plus production in the
legacy Marquette channels totaled $1.0 billion. *
$7.5 2Q15 Total Loans +28.8% vs. 2Q14 $4.4 $4.7 $5.3 $6.3 $6.9 $8.9 UMBF |
UMB and
Marquette Loans 8
$8.9 Legacy Marquette Loans (000s) June 30, 2014 March 31, 2015 May 31, 2015* June 30, 2015 vs. June '14 vs. Mar '15 vs. May '15 Legacy UMB Loans 6,920,683 7,498,308 -
7,916,178
14.4% 5.6% n/a Legacy Marquette Loans -
-
980,250
999,950
n/a n/a 2.0% Total 6,920,683 7,498,308 n/a 8,916,128 28.8% 18.9% *acquisition value of Marquette loans at close Legacy UMB
Loans $7.9 $6.9 $7.5 2Q'14 1Q'15 2Q'15 Legacy UMB Legacy Marquette $1.0 |
Quality
Credit Metrics Net Charge-Offs
$000s 9 Nonperforming Loans $000s $3,713 $3,985 $4,176 $1,661 $4,758 0.22% 0.23% 0.23% 0.09% 0.24% 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 NCOs/Avg. Loans $27,175 $32,662 $27,382 $29,187 $37,649 0.39% 0.46% 0.37% 0.39% 0.42% 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 Nonperforming Loans NPLs/Loans Net Charge-offs |
2 Quarter 2015 Average Balance, AFS: $6.9 billion Average Yield: 1.81% Investment Mix Securities Available for Sale $6.9 billion June 30, 2015 Agencies High Quality Investment Portfolio 10 Corporates Municipals Mortgage-Backed Securities Treasuries AFS Portfolio Statistics Roll off Purchased ($ millions) Yield ($ millions) Yield 3Q'14 $244 1.98% $311 1.45% 4Q'14 $285 2.12% $382 1.55% 1Q'15 $333 2.02% $709 1.89% 2Q'15 $299 1.98% $498 1.90% Scheduled Cash Flow 3Q'15 $247 1.76% Next 12 months $1,267 1.53% Duration/Life
(in months) at 06/30/15 at 03/31/15 Avg. Life Total 45.83 43.67 Duration Total 39.29 37.57 Securities Gains $ in thousands 2Q'14 2,569 $ 3Q'14 26 $
4Q'14 62 $
1Q'15 7,336 $ 2Q'15 967 $
50.9% 31.1% 11.7% 5.1% 1.2% nd |
38.5% 40.8% 41.7% 44.4% 40.6% $0.0 $3.0 $6.0 $9.0 $12.0 $15.0 Deposit Growth Deposits & Percent of Free Funds Actual EOP Balances; $ billions 11 2Q 2015 Cost of Interest-Bearing Liabilities 0.19% Including DDA 0.12% $9.9 $11.7 $10.3 $12.2 $14.5 Interest Bearing Non-Interest Bearing |
11.92 14.43 14.04 13.77 11.05 13.61 13.29 12.77 6.81 8.41 8.72 9.56 12.64 2012 2013 2014 2Q'15* 13.07% 12.64% Industry Median Common Equity Tier 1 Ratio vs. Industry 2Q 2015 12 $1.05 $1.74 2Q'10 2Q'15 Average Equity ($ billions) Capital Ratio Trends Industry Median as of 1Q15; Source: SNL Financial *2Q15 ratios calculated under Basel III requirements Total Risk-Based Capital Tier 1 Capital Tier 1 Leverage Common Equity Tier 1 Balance Sheet Strong Capital Position |
Noninterest Income 13 Noninterest income decreased $14.5 million, or 10.8%, compared to 2Q14 Trust and securities processing income fell by $6 million, or 8.1%, to $67.4 million Equity earnings on alternative investments decreased $4.6 million compared to 2Q14, due to a decline in unrealized gains on PCM equity method investments Other noninterest income decreased $3.0 million, due primarily to a gain on the sale of a branch property of $2.8 million recorded in 2Q14 Gains on sales of securities of $967 thousand represented a decrease of $1.6 million compared to 2Q14 2 nd Quarter 15 Highlights 000's 2Q'15 1Q'15 4Q'14 3Q'14 2Q'14 Trust and securities processing 67,381 67,299 69,072 74,062 73,357 Trading and investment banking 5,568 6,122 4,840 3,826 6,409 Service charges on deposits 21,625 21,541 21,480 21,634 20,627 Insurance fees and commisions 586 570 765 911 732 Brokerage fees 2,936 2,854 2,595 3,276 3,075 Bankcard fees 18,035 16,183 17,321 17,121 17,185 Gains on sales of securities 967 7,336 62
26
2,569 Equity earnings on alt. investments (1,125) (842) (4,487) 2,470 3,462 Other 3,577 4,144 3,600 3,149 6,585 Total noninterest income 119,550 $ 125,207 $ 115,248 $ 126,475 $ 134,001 $ |
Bankcard Fees Trust & Securities Processing Revenue Trust & Securities Processing Composition:
Deposit Service Charges
Trust & Securities Processing
Brokerage Fees Trading & Investment Banking Other Gains on Sale of Securities ($ millions) Insurance Fees 14 Source of income: 2Q'15 2Q'14 Institutional Investment Mgmt. $25.7 $33.8 Asset Servicing $22.9 $22.4 Bank (inst. & personal asset mgmt.) $18.8 $17.2 $67.4 $73.4 Excludes ($1.1MM) from Equity Earnings on Alternative Investments, which represents (0.9%) of noninterest income
$38.6 $53.6 $55.8 $63.5 $73.4 $67.4 56.4% 18.1% 15.1% 4.6% 3.0% 2.4% 0.8% 0.5% Noninterest Income Composition 2Q 2015
|
Noninterest Expense 15 Noninterest expense increased $5.8 million, or 3.5%, compared to 2Q14. Salaries and employee benefits expense increased $10.1 million, or 11.2%, year- over-year; Marquette added approximately $3.4 million in 2Q15 Equipment expense increased $2.5 million, or 19.3%, due to software maintenance and amortization expense Regulatory environment Cyber security Modernization of systems Processing fees decreased 14.6% or $2.2 million, primarily due to lower fees paid to the distributors of the Scout Funds 2Q14 included $5.3 million of contingency reserve expense related to the earn-out amount and related incentive bonus compensation for PCM employees 2 nd Quarter 15 Highlights 000's 2Q'15 1Q'15 4Q'14 3Q'14 2Q'14 Salaries and employee benefits 99,585 98,537 90,115 90,041 89,532 Occupancy, net 10,312 10,010 10,312 10,475 9,705 Equipment 15,410 14,172 14,618 13,408 12,920 Supplies, postage and telephone 4,603 4,325 5,403 4,817 5,554 Marketing and business dev 6,530 4,618 7,182 6,057 6,307 Processing fees 12,654 12,783 13,496 14,085 14,817 Legal and consulting 5,917 4,378 7,907 4,496 4,632 Bankcard 4,953 4,768 6,812 4,097 4,997 Amortization of other intangibles 2,569 2,755 2,974 3,043 3,074 Regulatory fees 2,873 2,756 2,643 2,577 2,709 Contingency reserve - - - - 5,272 Other 6,558 5,311 5,251 8,365 6,682 Total noninterest expense 171,964 $ 164,413 $ 166,713 $ 161,461 $ 166,201 $ |
Prairie
Capital Management Summary 16
Select Components of Noninterest Income and Expense Related to PCM
***Represents contingent consideration changes related to the settlement agreement for
specific private equity funds. **Represents contingent consideration
changes related to operational performance and hedge fund performance fees.
* Represents a contingency reserve related to the calculation of the earn-out
amount and related incentive bonus compensation to PCM employees. A
settlement agreement was executed on June 30, 2014 and subsequent entries are included in the Contingent Consideration Expense Private Equity Unrealized Gains (or Losses) (unaudited) 2Q'14 1Q'15 2Q'15 Related Component of Noninterest Income - Equity Earnings on Alternative Investments
Hedge Fund Performance Fees / Investment Returns
(2)
15,559 223,789 Private Equity Unrealized Gains (or Losses) 3,461,584 (857,783) (1,348,228) Equity Earnings on Alternative Investments 3,461,582 (842,224) (1,124,439) Related Components of Noninterest Expense - Contingency Reserve Expense and Other
Contingency Reserve Expense*
(5,272,422) -
-
Other - Contingent Consideration Expense - PCM Purchase
Agreement** (196,251)
262,802 (56,241) Other - Contingent Consideration Expense - Private Equity Unrealized (Gains) or Losses***
-
772,005 1,213,405 Sum of These Components of Noninterest Expense (5,468,673) 1,034,807 1,157,164 |
Business Segment Updates -
2Q 2015 |
Bank 18 Loans at June 30, 2015 stood at $8.9 billion, an increase of 28.8% year-over-year
Total deposits at June 30 increased 19.1% vs. a year ago to $14.5 billion
Private banking average loans increased 32.2% year-over-year to $475.7
million HELOCs continue to grow, standing at $698.8 million, a
16.6% increase vs. June 30, 2014 Highlights
Segment Results $ in 000s, unaudited 3 mos Ended % Change 3 mos Ended % Change June 30, Y/Y March 31, LQ 2015 2014 2015 $ 82,758 $ 72,481 14.2% $ 75,327 9.9% 2,612 2,686 -2.8% 1,600 63.3% 47,548 56,024 -15.1% 51,551 -7.8% 107,293 100,788 6.5% 100,748 6.5% 20,401 25,031 -18.5% 24,530 -16.8% 4,915 7,482 -34.3% 7,344 -33.1% Net income $ 15,486 $ 17,549 -11.8% $ 17,186 -9.9% pre-tax profit margin 15.7% 19.5% 19.3% |
42.6% 49.9% 53.0% 51.5% 46.8% 2.4% 3.4% 4.4% 28.3% 25.4% 24.8% 25.0% 26.8% 4.2% 3.7% 3.9% 4.3% 4.9% 10.6% 10.5% 9.0% 8.7% 7.8% 6.7% 6.0% 4.9% 4.4% 3.2% 2.8% 1.0% 0.9% 1.0% 1.1% 2Q'11 2Q'12 2Q'13 2Q'14 2Q'15 Bank Loan Composition 19 Diverse Loan Book (Actual Loan Balances at June 30) $4.7B $5.3B $6.3B $6.9B $8.9B Commercial Credit Card Commercial & Industrial* HELOC Residential Real Estate Real Estate Construction Commercial Real Estate Consumer Credit Card Consumer Other 1.4% 1.2% 1.7% 1.7% 1.8% 1.5% 2.0% 2.8% 2.0% Factoring Loans Asset Based Loans *Includes Leases |
Bank
Lending High Growth Regions
2Q15 vs. 2Q14
20 Texas +96% Kansas +22% Arizona +32% Loans by Region (Actual Loan Balances at June 30) $111.4 $205.8 $109.1 $145.9 $146.1 $189.2 $229.8 $201.8 $88.5 $223.1 $4.7B $5.3B $6.3B $6.9B $8.9B Colorado Kansas City Kansas Greater MO St. Louis Arizona Texas Oklahoma Marquette Transportation Fin (Natl. Sales) Nebraska Marquette Business Credit (Natl. Sales) $219.4 $107.4 ** Arizona loan balances include $448.2MM legacy UMB loans and $346.1MM legacy Marquette loans.
* Texas loan balances include $173.8 MM legacy UMB loans and $327.1MM legacy Marquette
loans. * ** $2,353.4 $2,544.3 $2,913.9 $3,127.3 $3,559.0 $582.2 $730.2 $899.6 $979.0 $1,023.7 $460.9 $557.3 $723.2 $748.9 $889.9 $340.1 $794.3 $503.0 $509.3 $591.1 $637.9 $692.0 $405.5 $404.6 $437.0 $452.2 $550.7 $277.9 $355.1 $345.0 $355.7 2Q'11 2Q'12 2Q'13 2Q'14 2Q'15 $500.9 |
30.7% 34.1% 27.2% 33.6% 33.5% 33.4% 31.7% 27.6% 25.9% 24.8% 7.4% 8.2% 7.9% 3.8% 4.7% 6.2% 7.4% 8.2% 8.9% 14.1% 7.6% 6.7% 6.3% 7.6% 7.0% 7.2% 6.0% 5.8% 11.5% 7.2% 7.4% 5.4% 4.3% 4.2% 4.7% 4.5% 4.6% 3.6% 2Q'11 2Q'12 2Q'13 2Q'14 2Q'15 21 Diverse Sources of Deposits (Actual Deposits at June 30) $9.9B $10.3B $11.7B $12.2B $14.5B Commercial Asset Servicing Healthcare Small Business Other 2.6% 1.9% 0.1% 1.3% 1.3% 0.1% 1.8% Personal Banking - Consumer
Institutional - IAM
Institutional - IBIS Personal
Banking - Private Wealth Bank Deposits |
$5,366
$6,390 $7,044 $7,610 $8,370 $2,035 $2,219 $2,853 $3,603 $3,677 $188 $226 $351 $419 $432 2011 2012 2013 2014 2Q'15 Prairie Capital Management Brokerage 22 $7.6B $8.8B $10.2B $11.6B $12.5B $1.1B $1.2B $1.2B $1.4B $1.5B Home Equity Lines of Credit $ in millions Assets Under Management $ in millions Bank Asset Mgmt. & Home Equity Lending * *Includes $736.4 million from Marquette Asset Management $533 $574 $566 $644 $699 $559 $608 $663 $755 $836 48.8% 48.5% 46.1% 46.0% 45.5% 2011 2012 2013 2014 2Q'15 Balances Unused Commitments Utilization Personal Banking - Private Wealth & Institutional - IAM
|
Institutional Investment Management
23 Highlights Institutional Investment Management Segment Results $ in 000s, unaudited 3 mos Ended % Change 3 mos Ended % Change June 30, Y/Y March 31, LQ 2015 2014 2015 Net Interest income $ - $ (1) 100.0% $ 1
-100.0% Noninterest income 25,684 33,999 -24.5% 27,084 -5.2% Noninterest expense 18,285 22,053 -17.1% 17,973 1.7% NI before taxes 7,399 11,945 -38.1% 9,112 -18.8% Income tax provision 1,785 3,389 -47.3% 2,717 -34.3% Net income $ 5,614 $ 8,556 -34.4% $ 6,395 -12.2% pre-tax profit margin 28.8% 35.1% 33.6% Scout assets under management now stand at $30.0 billion; 71% fixed income / 29% equity Net flows for 2Q were +$262.6 million fixed income and -$682.1 million equity |
Total
AUM $30.0B
$19.7B $23.5B Institutional Investment Management 24 $31.2B $31.2B $8.2 $10.4 $12.6 $7.8 $6.7 $0.6 $0.9 $3.2 $2.4 $2.1 $10.3 $11.4 $12.6 $18.1 $18.5 $0.6 $0.8 $2.8 $2.9 $2.7 2011 2012 2013 2014 2Q'15 Equity Mutual Funds Equity Institutional & Other Fixed Income Institutional & Other Fixed Income Mutual Funds |
AUM
Drivers $ in millions
Institutional Investment Management
25 2Q15 1Q15 4Q14 3Q14 2Q14 ($1,287.0) ($1,366.6) ($2,314.6) ($1,111.0) ($682.1) $455.4 ($645.6) ($166.3) $447.5 ($51.0) $908.9 $263.8 $2,976.0 ($79.3) $262.6 $153.4 ($18.6) $55.6 $172.0 ($97.2) -$2,500 -$1,500 -$500 $500 $1,500 $2,500 $3,500 $550.7 ($1,767.0) Total Change ($millions) $31,178.1 $30,627.3 Total AUM ($millions) $230.7 $32,394.3 ($570.7) $30,607.4 ($567.7) $30,039.7 Equity Flows Equity Market Impact Fixed Income Flows Fixed Income Market Impact |
AUM by
Strategy As of June 30, 2015
Equity Strategies International Mid Cap International ADR Emerging Markets Global Small Cap Other: 26 Fixed Income Strategies Core Plus Low Duration Long Duration Intermediate Core Unconstrained Real Return Equity Fixed Income Other: Equity Opportunity Global Aggregate 3.8% 0.5% 35.9% 56.8% 3.0% 71% 29% 31.3% 30.2% 18.4% 11.5% 4.3% 4.3% |
Payment
Solutions 27
Highlights Payment Solutions Segment Results $ in 000s, unaudited
3 mos Ended % Change 3 mos Ended % Change June 30, Y/Y March 31, LQ 2015 2014 2015 Net interest income $ 13,599 $ 12,390 9.8% $ 14,033 -3.1% Provision for loan losses 2,388 2,314 3.2% 1,400 70.6% Noninterest income 23,293 21,201 9.9% 23,138 0.7% Noninterest expense 26,399 24,506 7.7% 24,396 8.2% NI before taxes 8,105 6,771 19.7% 11,375 -28.7% Income tax provision 2,046 1,931 6.0% 3,406 -39.9% Net income $ 6,059 $ 4,840 25.2% $ 7,969 -24.0% pre-tax profit margin 22.0% 20.2% 30.6% Credit and debit card purchase volume for the second quarter was $2.3 billion,
generating $19.6 million in interchange revenue
The number of HSA accounts reached 621 thousand, for a nearly 35 percent
year- over-year growth rate
Successfully launched Apple Pay in the second quarter
Launched a general purpose reloadable card pilot program with a NetSpend branded ReCharge Card |
Payment
Solutions Total Card Purchase Volume
& Interchange Revenue
28 Commercial Credit Consumer Credit Consumer Debit Healthcare Debit Institutional Banking IBIS Debit Interchange ($millions) $2.3B $1.4B $1.5B $1.7B $2.2B 1.5% 1.3% 1.1% 1.6% 1.4% Interchange Sources 2Q'15 ($millions) Credit 13.1 Debit 2.6 Healthcare 3.9 TOTAL $ 19.6 17.5% 16.4% 14.0% 11.0% 9.3% 19.5% 19.7% 18.8% 16.2% 16.8% 27.7% 26.3% 22.6% 18.5% 12.3% 33.8% 36.3% 43.5% 52.7% 60.2% $16.5 $15.6 $17.1 $18.4 $19.6 2Q '11 2Q '12 2Q '13 2Q '14 2Q '15 |
29 Healthcare Purchase Volume Trends $millions * Interchange revenue from Healthcare cards divided by purchase volume on Healthcare cards
8.9% 16.9% 23.4% 22.7% 32.5% 37.7% 41.0% 29.0% 34.3% $461.2 $393.8 $350.0 $682.2 $536.4 $448.0 $421.4 $881.3 $748.6 $680.2 $649.1 $1,150.0 $1,152.1 $1,082.9 $1,052.3 $1,393.0 $1,379.7 0.33% 0.36% 0.36% 0.29% 0.28% Virtual Card Volume Other Healthcare Volume Effective Interchange Rate * Payment Solutions Healthcare Services
|
$298.4 $399.6 $595.0 $841.7 $1,078.5 $24.9 $30.9 $47.4 $75.8 $99.4 2011 2012 2013 2014 2Q'15 HSA Deposits HSA Investment Assets Payment Solutions Healthcare Services 30 Healthcare Deposits and Assets $millions $323.3 $430.5 $642.4 $917.5 $1,177.9 Investment assets as a 2011 2012 2013 2014 2Q'15 % of total healthcare deposits & assets 7.7% 7.2% 7.4% 8.3% 8.4% Healthcare provided 7.4% of Total Deposits in 2Q15 |
Asset
Servicing 31
$159.5 $203.1 Assets Under Administration $billions Added 52 net new funds as transfer agent clients in the past 12 months Added 12 net new funds and increased assets under administration by 18.3% in the alternative space in the past 12 months UMB Fund Services named Top Workplace by Milwaukee Journal Sentinel for 6th straight year Fund Services ranks as the top Transfer Agent in US for Registered Closed-End Funds in the 2015 Mutual Fund Guide (ranking based on number of shareholders) Highlights Asset Servicing Segment Results $ in 000s, unaudited 3 mos Ended % Change 3 mos Ended % Change June 30, Y/Y March 31, LQ 2015 2014 2015 Net interest income $ 1,003 $ 1,300 -22.8% $ 997
0.6% Noninterest income 23,025 22,777 1.1% 23,434 -1.7% Noninterest expense 19,987 18,854 6.0% 21,296 -6.1% NI before taxes 4,041 5,223 -22.6% 3,135 28.9% Income tax provision 986 1,496 -34.1% 920 7.2% Net income $ 3,055 $ 3,727 -18.0% $ 2,215 37.9% pre-tax profit margin 16.8% 21.7% 12.8% |
Asset
Servicing 32
Fund Accounting & Administration
Alternative Asset Servicing
Custody Transfer Agency $54.9 $68.0 $62.4 $63.1 $62.7 443 411 454 459 461 2012 2013 2014 1Q'15 2Q'15 Assets Under Administration # of Custody Accounts $26.3 $27.9 $31.5 $35.8 $37.1 532 514 579 579 604 2012 2013 2014 1Q'15 2Q'15 Assets Under Administration # of Funds Serviced 946.8 1,280.1 1,111.2 1,157.7 1,205.9 270 301 349 349 370 2012 2013 2014 1Q'15 2Q'15 # of Shareholders # of Funds Serviced $44.1 $63.0 $72.1 $72.0 $71.9 179 219 249 252 248 2012 2013 2014 1Q'15 2Q'15 Assets Under Administration # of Funds Serviced |
Appendix UMB Financial Corporation Second Quarter 2015 |
Non-GAAP Reconciliation
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% Note: Unaudited. Dollars in thousands. 34 (1) Source: MFC financial statements as of May 31, 2015. (2) Based on UMBF 05/29/15 closing share price of $51.79 and consideration of 3.47 million shares of UMBF stock,
subject to post-closing adjustments.
We provide information using the tangible book value (TBV) of Marquette Financial
Companies (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 in this slide. 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
companys total value and the strength and adequacy of its
capital-management strategies. |
Strength in balance
today and tomorrow. Second Quarter 2015 UMB Financial |
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