UMB Financial Corporation (NASDAQ: UMBF), a Kansas City-based
multi-bank holding company, announced earnings of $15.9 million or
$0.37 per share ($0.37 diluted) for the three months ended
September 30, 2006. This is a decrease of $0.3 million, or 1.9
percent, compared to the three months ended September 30, 2005
earnings of $16.2 million or $0.38 per share ($0.37 diluted). The
decrease in earnings compared to 2005 was a result of lower
noninterest income primarily from gains related to the sales and
closures of banking facilities in 2005 and higher noninterest
expense. These decreases to net income were mostly offset by higher
net interest income. Excluding the net gains and losses related to
the sales and closures of banking facilities in both years, the net
income for the third quarter of 2006 would have increased
approximately 22.0 percent over the same quarter in 2005. A table
reconciling GAAP net income for these items for the quarter and
year-to-date is included with this release. �We are pleased with
our strong underlying earnings growth of more than 20 percent,�
said Mariner Kemper, Chairman and CEO, UMB Financial Corporation.
�Combined with our expanding margin, loan growth continues to be
the consistent driver of our performance. Our balance sheet
continues to be well-positioned to benefit from the current
interest rate environment, and we�re confident that we are on the
right track to finish the year with solid performance.� �Trust and
card services income continue to be the catalysts of growth in our
fee business,� said Peter deSilva, President and Chief Operating
Officer. �Total trust and mutual fund assets under management have
grown 21 percent over the third quarter of 2005 and now stand at
more than $9.6 billion. The growth has been driven by both our
Scout mutual funds and the implementation of integrated sales teams
in our wealth management business. During the quarter our team
added more than $140 million in new assets to personal and
institutional accounts. Our retail business also had a very good
quarter with solid customer growth thanks partly to a successful
Home Equity Line of Credit (HELOC) summer promotion which generated
more than $30 million in new home equity loans. Our small business
division is also starting to show results with a 92 percent growth
in deposits over the third quarter of 2005.� On September 15, 2006,
UMB Financial Corporation completed the acquisition of Mountain
States Bancorporation, Inc., a bank holding company headquartered
in Denver, Colorado. Mountain States Bancorporation had
consolidated assets of $284.1 million at the time of the merger.
Net Interest Income Net interest income for the third quarter of
2006 increased $6.1 million, or 12.5 percent, compared to the same
period in 2005 due to higher earning assets and greater net
interest margin. For the three months ended September 30, 2006,
there was a $402.2 million, or 6.4 percent, increase in average
earning assets mostly from average loan growth of $364.3 million,
or 11.2 percent. Average loans for the third quarter of 2006
included $30.5 million of average loans from Mountain States Bank.
The contribution from noninterest-bearing demand deposits, which
made up 33.0 percent of average total deposits, increased in the
third quarter of 2006 as compared to the same quarter in 2005. This
benefit from free funds, as well as a favorable change in the mix
of earning assets to higher yielding loans contributed
significantly to the 17 basis point increase in net interest margin
for the three months ended September 30, 2006 compared to the same
quarter last year. Noninterest Income and Expense Noninterest
income decreased $0.3 million, or 0.5 percent, for the three months
ended September 30, 2006 compared to the same period in 2005. The
decrease was primarily attributable to $4.8 million in net gains
recognized in the third quarter of 2005 related to the sale and
closure of banking facilities. This decrease was mostly offset by
increases in fee-based income including trust and securities
processing income and bankcard income. Trust and securities
processing income increased by $4.4 million, or 21.6 percent,
primarily from higher advisory fee income related to increases in
assets under management within the Scout Funds. Bankcard income was
$1.4 million, or 15.8 percent, higher than the third quarter of
2005 resulting from increased interchange fee income due to greater
card activity. Noninterest expense increased $6.3 million, or 7.0
percent, for the three months ended September 30, 2006 compared to
the same period in 2005. Equity based compensation expense related
to the adoption of new accounting rules, as well as increases in
benefit costs, were the primary causes for the increase in salary
and benefits expense. Equipment expense increased mostly due to
expenses related to investments in computer equipment and software.
Processing fees increased primarily due to shareholder servicing
and other administrative fees paid to investment advisors which
directly correlate with the increase in net assets under management
in the Scout Funds. Bankcard expenses are higher mostly due to an
enhanced consumer rebate program which corresponds to the increased
usage of the consumer bankcard product. Balance Sheet Average total
assets for the three months ended September 30, 2006 were $7.5
billion compared to $7.0 billion for the same period in 2005, an
increase of $423.6 million, or 6.0 percent. Average earning assets
increased by $402.2 million, or 6.4 percent. In addition to the
increase in earning assets, the mix of higher yielding loans to
overall earning assets was favorable. Average loans comprised 54.4
percent of the company�s earning asset base for the third quarter
of 2006 as compared to 52.1 percent for the same quarter in 2005.
For the three months ended September 30, 2006, average loans were
$3.6 billion compared to $3.3 billion for the same period in 2005,
an increase of 11.2 percent. Actual loan balances on September 30,
2006, which includes $174.0 million from Mountain States Bank, were
$3.8 billion, compared to $3.3 billion on September 30, 2005. Loan
balances by category are as follows: Loan by Category (in
thousands) September30, 2006 September30, 2005 Change PercentChange
Commercial, financial and agricultural $1,659,939� $1,518,749�
$141,190� 9.3% Real estate construction 72,198� 42,259� 29,939�
70.9% Consumer 999,183� 992,547� 6,636� 0.7% Real estate 1,060,893�
788,901� 271,992� 34.5% Leases 5,786� 5,364� 422� 7.9% Total Loans
$3,797,999� $3,347,820� $450,179� 13.4% Average securities were
$2.6 billion for the third quarter of 2006 compared to $2.7 billion
for the same period in 2005, a decrease of $65.7 million, or 2.4
percent. This decrease was primarily a result of the utilization of
securities purchased under agreement to resell in lieu of
short-term discount notes related to public funds and customer
repurchase agreements. The average balance of securities purchased
under agreement to resell increased by $51.2 million in the third
quarter of 2006 compared to the same quarter in 2005. Average total
deposits increased $311.1 million, or 6.1 percent, to $5.4 billion
for the three months ended September 30, 2006, compared to the same
period in 2005. The increase in deposits came primarily from time
deposits and money market accounts. Average time deposit accounts
increased by $218.1 million, or 22.9 percent, for the third quarter
of 2006 as compared to the same quarter in 2005. Money market
accounts increased by $165.4 million, or 19.0 percent, for the
three months ended September 30, 2006, as compared to the same
period in 2005. Total deposits as of September 30, 2006 were $5.5
billion, which includes $227.1 million from Mountain States Bank.
As of September 30, 2006, UMB had total shareholders� equity of
$854.8 million, a 2.9 percent increase from the prior year.
Nonperforming loans at September 30, 2006 totaled $14.0 million
compared to $9.8 million a year earlier. As a percentage of total
loans, nonperforming loans increased to 0.37 percent of loans as of
September 30, 2006 compared to 0.29 percent as of September 30,
2005. Nonperforming loans are defined as nonaccrual loans and loans
more than 90 days past due. The company�s allowance for loan losses
totaled $43.5 million, or 1.15 percent of total loans as of
September 30, 2006, compared to $39.7 million, or 1.19 percent of
total loans as of September 30, 2005. Year-to-Date Earnings for the
nine months ended September 30, 2006 were $44.0 million, or $1.03
per share ($1.03 diluted). This is an increase of $2.6 million, or
6.3 percent, compared to the prior year earnings of $41.4 million,
or $0.96 per share ($0.95 diluted). Excluding certain adjustments
described above (net gains and losses related to the sales and
closures of banking facilities, the sale of employee benefit
accounts and charges related to the voluntary separation plan) in
both years, the net income for the first nine months of the year
would have increased 20.5 percent over the same period in 2005. A
table reconciling GAAP net income for these items for the quarter
and year-to-date is included with this release. Net interest income
for the year-to-date September 30, 2006 increased $20.4 million, or
14.6 percent, compared to the same period in 2005 due primarily to
higher average earning assets and an increase in net interest
margin. Average earning assets increased by $488.5 million, or 7.9
percent, to $6.7 billion for the nine-months ended September 30,
2006 as compared to the same period in 2005. Net interest margin
was 3.36 percent for the year-to-date September 30, 2006 compared
to 3.17 percent for the same period in 2005. Noninterest income
decreased $1.0 million, or 0.5 percent, for the nine months ended
September 30, 2006 compared to the same period in 2005. In 2005, a
$3.6 million gain was recognized from the sale of employee benefit
accounts to Marshall & Ilsley Trust Company, n.a. and $8.8
million of net gains were recognized in 2005 on the sale and
closure of banking facilities as compared to $0.4 million in 2006.
These two items attributed to a $12.0 million decrease in
noninterest income for the year-to-date 2006 compared to 2005.
Additionally, service charges on deposits decreased by $5.0
million, or 8.3 percent, for the nine months ended September 30,
2006 as compared to the same period in 2005. This decrease in
deposit service charge income is mostly attributable to increases
in earnings credits on compensating balances. These decreases to
noninterest income were mostly offset by increases in trust and
securities processing income and bankcard income. Trust and
securities processing income increased by $11.6 million, or 19.2
percent, primarily from higher advisory fee income related to
increases in assets under management within the Scout Funds.
Bankcard income was $4.0 million, or 16.4 percent, higher than the
nine months ended September 30, 2005 due to increased interchange
fee income combined with greater card activity. Noninterest expense
increased $11.5 million, or 4.3 percent, for the year-to-date
September 30, 2006 compared to the same period in 2005. Salary
expense decreased primarily as a result of a $4.4 million charge
during 2005 related to a voluntary separation plan. Marketing
expense increased mostly due to an increase in business
development-related expenses in 2006 as compared to 2005. Bankcard
expense is higher in 2006 than in 2005 due to higher rebate
programs designed to encourage increased usage of the card
products. The increase in other expense was primarily attributable
to increases in operational charge-offs, including overdraft fees.
Other increases in this category included higher directors� fees
and bank examination fees. The company declared its regular
quarterly dividend of $0.13 per share to be paid on January 2,
2007, to shareholders of record as of the close of business on
December 12, 2006. The company plans to host a conference call to
discuss its third quarter results on October 25, 2006, at 4 p.m.
(CST). Interested parties may access the call by dialing U.S.
(toll-free) 800-257-7087, conference code 11072670#, or access the
following Web link to the live call: www.actioncast.acttel.com or
visit www.umb.com. Forward-Looking Statements: This release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, Section 21E of the Securities
Exchange Act of 1934, and within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements rely on a number of assumptions concerning future events
and are subject to risks and uncertainties, which could cause
actual results to differ materially from those contemplated by the
forward-looking statements in this Current Report on Form 8-K, any
exhibits to this Current Report and other public statements the
company may make. While management of UMB believes their
assumptions are reasonable, UMB cautions that changes in general
economic conditions, changes in interest rates, changes in the
securities markets, changes in operations, changes in competition,
technology changes, legislative or regulatory changes, the ability
of customers to repay loans, changes in loan demand, the ability to
integrate acquisitions and increases in employee costs, and other
risks and uncertainties detailed in UMB�s filings with the
Securities and Exchange Commission, may cause actual results to
differ materially from those discussed in this release. UMB has no
duty to update such statements, and undertakes no obligation to
update or supplement forward-looking statements that become untrue
because of new information, future events or otherwise. Non-GAAP
Financial Measures: Certain financial measures contained in this
press release exclude significant gains and losses relating to the
sales and closures of banking facilities, the sale of employee
benefits accounts and the voluntary separation plan. Financial
measures which exclude those items have not been determined in
accordance with generally accepted accounting principles and are
therefore �non-GAAP� financial measures. Management of UMB believes
that investors� understanding of the company�s performance is
enhanced by disclosing these non-GAAP financial measures as a
reasonable basis for comparison of the company�s ongoing results of
operations. These non-GAAP measures should not be considered a
substitute for GAAP-basis measures and results. Our non-GAAP
measures may not be comparable to non-GAAP measures of other
companies. The attached Non-GAAP Reconciliation Table provides a
reconciliation of these non-GAAP financial measures to the most
closely analogous measure determined in accordance with GAAP. About
UMB: UMB Financial Corporation is a multi-bank holding company
headquartered in Kansas City, Mo., offering complete banking, asset
management and related financial services to both individual and
business customers nationwide. Its banking subsidiaries own and
operate 141 banking centers throughout Missouri, Illinois,
Colorado, Kansas, Oklahoma, Nebraska and Arizona. Subsidiaries of
the holding company and the lead bank, UMB Bank, n.a., include an
investment services group based in Milwaukee, Wisconsin, a trust
management company in South Dakota, and single-purpose companies
that deal with brokerage services, consulting services and
insurance. UMB was named one of Business Week's "Web Smart 50"
companies in 2005. CONSOLIDATED BALANCE SHEETS UMB Financial
Corporation (all dollars in thousands) (unaudited) September 30,
Assets � 2006� � 2005� � Loans $ 3,797,999� $ 3,347,820� Allowance
for loan losses � (43,538) � (39,715) Net loans 3,754,461�
3,308,105� Loans held for sale 17,658� 20,326� Investment
Securities: Available for sale 2,636,811� 2,520,186� Held to
maturity 51,606� 104,591� Federal Reserve Bank stock and other
15,158� 14,786� Trading securities � 48,160� � 57,987� Total
investment securities 2,751,735� 2,697,550� Federal funds and
resell agreements 280,910� 285,209� Cash and due from banks
408,094� 396,500� Bank premises and equipment, net 241,290�
226,668� Accrued income 56,300� 46,291� Goodwill on purchased
affiliates 96,017� 60,182� Other intangibles 19,136� 4,078� Other
assets � 47,156� � 43,016� Total assets $ 7,672,757� $ 7,087,925� �
� Liabilities Deposits: Noninterest - bearing demand $ 1,900,220� $
1,931,580� Interest - bearing demand and savings 2,493,922�
2,082,229� Time deposits under $100,000 797,068� 714,943� Time
deposits of $100,000 or more � 344,716� � 277,989� Total deposits
5,535,926� 5,006,741� Federal funds and repurchase agreements
1,148,677� 1,127,111� Short-term debt 22,644� 18,491� Long-term
debt 36,798� 39,083� Accrued expenses and taxes 46,039� 37,447�
Other liabilities � 27,834� � 28,106� Total liabilities �
6,817,918� � 6,256,979� � Shareholders' Equity Common stock 55,057�
27,528� Capital surplus 699,029� 725,897� Retained earnings
370,184� 333,096� Accumulated other comprehensive loss (15,765)
(18,573) Treasury stock � (253,666) � (237,002) Total shareholders'
equity � 854,839� � 830,946� Total liabilities and shareholders'
equity $ 7,672,757� $ 7,087,925� Consolidated Statements of Income
UMB Financial Corporation (unaudited, dollars in thousands except
share and per share data) � Three Months Ended Nine Months Ended
September 30, September 30, Interest Income � 2006� � 2005� � 2006�
� 2005� Loans $ 62,157� $ 48,081� $ 172,931� $ 128,726� Securities:
Taxable Interest 21,004� 15,043� 61,937� 46,641� Tax-exempt
interest 5,864� � 5,330� � 17,388� � 14,459� Total securities
income 26,868� 20,373� 79,325� 61,100� Federal funds and resell
agreements 5,025� 2,382� 15,152� 5,057� Trading securities and
other 579� � 581� � 2,029� � 1,734� Total interest income 94,629� �
71,417� � 269,437� � 196,617� � Interest Expense Deposits 25,942�
14,233� 69,533� 34,480� Federal funds and repurchase agreements
13,443� 7,833� 37,686� 20,409� Short-term debt 105� 108� 429� 283�
Long-term debt 311� � 518� � 1,206� � 1,309� Total interest expense
39,801� � 22,692� � 108,854� � 56,481� Net interest income 54,828�
48,725� 160,583� 140,136� Provision for loan losses 1,500� � 1,454�
� 7,734� � 2,954� Net interest income after provision for loan
losses 53,328� � 47,271� � 152,849� � 137,182� � Noninterest Income
Trust and securities processing 25,038� 20,590� 72,698� 61,056�
Trading and investment banking 4,757� 3,897� 13,437� 13,166�
Service charges on deposits 18,581� 20,716� 55,191� 60,210�
Insurance fees and commissions 1,056� 837� 3,149� 2,580� Brokerage
fees 1,508� 1,515� 4,626� 4,575� Bankcard fees 9,945� 8,592�
28,750� 24,705� Other gains (losses), net (188) 4,801� 408� 8,772�
Gain on sale of employee benefit accounts -� -� -� 3,600� Gains
(loss) on sales of securities available for sale 37� (190) 120�
(223) Other 3,669� � 3,978� � 11,553� � 12,526� Total noninterest
income 64,403� � 64,736� � 189,932� � 190,967� � Noninterest
Expense Salaries and employee benefits 48,894� 47,821� 143,928�
148,232� Occupancy, net 6,932� 6,841� 20,288� 19,728� Equipment
12,623� 11,115� 36,086� 32,843� Supplies, postage and telephone
5,514� 5,288� 16,988� 16,518� Marketing and business development
4,001� 3,473� 11,645� 10,040� Processing fees 7,137� 6,233� 20,692�
17,320� Legal and consulting 2,080� 1,890� 5,736� 5,613� Bankcard
3,410� 2,694� 10,220� 8,227� Amortization of other intangibles 365�
185� 868� 557� Other 5,309� � 4,396� � 16,238� � 12,084� Total
noninterest expense 96,265� � 89,936� � 282,689� � 271,162� �
Income before income taxes 21,466� 22,071� 60,092� 56,987� Income
tax provision � 5,601� � 5,900� � 16,127� � 15,624� Net income $
15,865� $ 16,171� $ 43,965� $ 41,363� Per Share Data Net income-
Basic $ 0.37� $ 0.38� $ 1.03� $ 0.96� Net income- Diluted 0.37�
0.37� 1.03� 0.95� Dividends 0.13� 0.11� 0.39� 0.33� Weighted
average shares outstanding � 42,531,525� � 43,026,608� �
42,675,173� � 43,158,277� Consolidated Statements of Shareholders'
Equity UMB Financial Corporation (all dollars in thousands)
(unaudited) � � Accumu-lated Other Common Capital Retained
Compre-hensive Treasury � Stock Surplus Earnings Income Stock Total
Balance - �January 1, �2005 $27,528� $726,595� $305,986� $(10,619)
$(230,308) $ 819,182� Compre- �hensive �income Net income -� -�
41,363� -� -� 41,363� Change in ����unrealized ����losses on
����securities -� -� -� (7,954) -� (7,954) Total �compre- �hensive
�income 33,409� Cash �dividends �($0.33 per �share) -� -� (14,253)
-� -� (14,253) Purchase �of treasury �stock -� -� -� -� (8,506)
(8,506) Issuance �of stock �awards -� (1,239) 1,239� -� Recog-
�nition of �equity �based �compen- �sation 289� -� 289� Sale of
�treasury �stock -� 131� -� -� 128� 259� Exercise of �stock
�options � -� 121� -� � -� 445� 566� Balance - �September �30, 2005
$27,528� $725,897� $333,096� $(18,573) $(237,002) $830,946� �
Balance - �January 1, �2006 $27,528� $726,204� $342,675� $(21,550)
$(241,394) $833,463� Compre- �hensive �income Net�income -� -�
43,965� -� -� 43,965� Change�in� ����unrealized ����losses on
����securities -� -� -� 5,785� -� 5,785� Total �compre- �hensive
�income 49,750� Cash �dividends �($0.39 per �share) -� -� (16,456)
-� -� (16,456) Stock �split 2 �for 1 27,529� (27,529) -� Purchase
of �treasury �stock -� -� -� -� (13,813) (13,813) Issuance of
�stock �awards (938) 1,088� 150� Recognition �of equity �based
�compensation -� 1,046� 1,046� Sale of �treasury �stock -� 182� -�
-� 132� 314� Exercise of �stock �options � -� 64� -� � -� 321� 385�
Balance - �September �30, 2006 $55,057� $699,029� $370,184�
$(15,765) $(253,666) $854,839� Average Balances / Yields and Rates
UMB Financial Corporation (tax - equivalent basis) (all dollars in
thousands)(unaudited) Nine Months Ended September 30, 2006� 2005�
Average Average Average Average Assets � Balance Yield/Rate � �
Balance Yield/Rate � Loans, net of unearned interest $ 3,513,171�
6.59� % $ 3,063,563� 5.63� % Securities: Taxable 2,051,522� 4.04�
2,259,293� 2.76� Tax-exempt 675,102� 5.01� 619,921� 4.65� Total
securities 2,726,624� 4.28� 2,879,214� 3.17� Federal funds and
resell agreements 409,080� 4.95� 213,957� 3.16� Other earning
assets 57,910� 4.81� 61,529� 3.86� Total earning assets 6,706,785�
5.53� 6,218,263� 4.39� Allowance for loan losses (41,524) (40,621)
Other assets � 863,284� � 848,275� Total assets $ 7,528,545� $
7,025,917� � � Liabilities and Shareholders' Equity
Interest-bearing deposits $ 3,612,891� 2.57� % $ 3,182,195� 1.45� %
Federal funds and repurchase agreements 1,122,993� 4.49� 1,040,823�
2.62� Borrowed funds 50,549� 4.32� 47,991� 4.44� Total
interest-bearing liabilities 4,786,433� 3.04� 4,271,009� 1.77�
Noninterest-bearing demand deposits 1,851,588� 1,886,366� Other
liabilities 52,041� 40,511� Shareholders' equity � 838,483� �
828,031� Total liabilities and shareholders' equity $ 7,528,545� $
7,025,917� Net interest spread 2.49� % 2.62� % Net interest margin
3.36� 3.17� � � � Three Months Ended September 30, 2006� 2005�
Average Average Average Average Assets � Balance Yield/Rate � �
Balance Yield/Rate � Loans, net of unearned interest $ 3,621,883�
6.81� % $ 3,257,584� 5.86� % Securities: Taxable 1,930,684� 4.32�
2,020,836� 2.95� Tax-exempt 686,237� 4.95� 661,749� 4.75� Total
securities 2,616,921� 4.48� 2,682,585� 3.40� Federal funds and
resell agreements 372,198� 5.36� 259,151� 3.65� Other earning
assets 48,525� 4.78� 57,975� 4.06� Total earning assets 6,659,527�
5.80� 6,257,295� 4.70� Allowance for loan losses (42,863) (39,991)
Other assets � 833,500� � 809,211� Total assets $ 7,450,164� $
7,026,515� � � Liabilities and Shareholders' Equity
Interest-bearing deposits $ 3,625,766� 2.84� % $ 3,225,571� 1.75� %
Federal funds and repurchase agreements 1,091,492� 4.89� 994,099�
3.13� Borrowed funds 45,706� 3.61� 52,320� 4.75� Total
interest-bearing liabilities 4,762,964� 3.32� 4,271,990� 2.11�
Noninterest-bearing demand deposits 1,784,278� 1,873,330� Other
liabilities 57,270� 49,573� Shareholders' equity � 845,652� �
831,622� Total liabilities and shareholders' equity $ 7,450,164� $
7,026,515� Net interest spread 2.48� % 2.59� % Net interest margin
3.43� 3.26� THIRD QUARTER 2006 FINANCIAL HIGHLIGHTS UMB Financial
Corporation (all dollars in thousands, except per share data)
(unaudited) � Nine Months Ended September 30, � 2006� � � 2005� �
Net interest income $ 160,583� $ 140,136� Provision for loan losses
7,734� 2,954� Noninterest income 189,932� 190,967� Noninterest
expense 282,689� 271,162� Income before income taxes 60,092�
56,987� Net income 43,965� 41,363� Net income per share - Basic
1.03� 0.96� Net income per share - Diluted 1.03� 0.95� Return on
average assets 0.78� % 0.79� % Return on average equity 7.01� %
6.68� % � Three Months Ended September 30 Net interest income $
54,828� $ 48,725� Provision for loan losses 1,500� 1,454�
Noninterest income 64,403� 64,736� Noninterest expense 96,265�
89,936� Income before income taxes 21,466� 22,071� Net income
15,865� 16,171� Net income per share - Basic 0.37� 0.38� Net income
per share - Diluted 0.37� 0.37� Return on average assets 0.84� %
0.91� % Return on average equity 7.44� % 7.71� % � At September 30
Assets $ 7,672,757� $ 7,087,925� Loans, net of unearned interest
3,797,999� 3,347,820� Securities 2,751,735� 2,697,550� Deposits
5,535,926� 5,006,741� Shareholders' equity 854,839� 830,946� Book
value per share 20.03� 19.28� Market price per share 36.57� 32.84�
Equity to assets 11.14� % 11.72� % Allowance for loan losses $
43,538� $ 39,715� As a % of loans 1.15� % 1.19� % Nonaccrual and
restructured loans $ 8,121� $ 6,086� As a % of loans 0.21� % 0.18�
% Loans over 90 days past due $ 5,924� $ 3,685� As a % of loans
0.16� % 0.11� % Other real estate owned $ 157� $ -� � Common shares
outstanding 42,685,009� 43,101,890� � Average Balances Nine Months
Ended September 30 Assets $ 7,528,545� $ 7,025,917� Loans and loans
held for sale, net of unearned interest 3,513,171� 3,063,563�
Securities 2,726,624� 2,879,214� Deposits 5,464,479� 5,068,561�
Shareholders' equity 838,483� 828,031� Selected Financial Data of
Affiliate Banks UMB Financial Corporation (all dollars in
thousands) (unaudited) September 30, 2006 Loans Net of Total
Unearned Total Shareholder's Missouri � Assets � Interest �
Deposits � Equity UMB Bank, n.a. $ 6,253,348� $ 3,025,337� $
4,613,218� $ 558,214� UMB Bank Warsaw, N.A. 82,225� 33,234� 62,877�
5,656� � Colorado � � � � � � � � UMB Bank Colorado, n.a. 837,153�
514,738� 618,293� 122,861� � Kansas � � � � � � � � UMB National
Bank of America 513,492� 210,584� 312,478� 53,790� � Arizona � � �
� � � � � UMB Bank Arizona, n.a. 19,639� 18,561� 5,740� 9,599� �
Banking - Related Subsidiaries UMB Community Development
Corporation UMB Banc Leasing Corp. UMB Financial Services, Inc. UMB
Scout Insurance Services, Inc. UMB Capital Corporation United
Missouri Insurance Company UMB Trust Company of South Dakota Scout
Investment Advisors, Inc. UMB Fund Services, Inc. UMB Consulting
Services, Inc. Kansas City Realty Company Kansas City Financial
Corporation UMB Redevelopment Corporation UMB Realty Company, LLC
UMB National Sales Corporation Grand Distribution Services, LLC UMB
Distribution Service, LLC Warsaw Financial Corporation UMB
Financial Corporation Non-GAAP Reconciliation Schedule (unaudited,
dollars in thousands) � The following tables present the
reconciliation of non-GAAP financial measures to reported GAAP
financial measures. � Three months ended Nine months ended
September 30, September 30, 2006� 2005� 2006� 2005� � Net interest
income after provision $ 53,328� $ 47,271� $ 152,849� $ 137,182�
Noninterest income 64,403� 64,736� 189,932� 190,967� Noninterest
expense 96,265� 89,936� 282,689� 271,162� Income tax provision
5,601� 5,900� 16,127� 15,624� � Net Income After Taxes 15,865�
16,171� 43,965� 41,363� � Adjustments Noninterest income Other
(gains) losses, net 188� (4,801) (408) (8,772) Gains on sale of
employee benefit accounts -� -� -� (3,600) Noninterest expense
Voluntary Separation Plan -� -� -� 4,400� � Total adjustments
pre-tax 188� (4,801) (408) (7,972) Less: Income taxes 68� (1,728)
(147) (2,870) � After Tax Adjustments to GAAP 120� (3,073) (261)
(5,102) � � � � Adjusted Net Income $ 15,985� $ 13,098� $ 43,704� $
36,261� � The above table presents the variation in net income on
an as reported (GAAP) basis and excluding certain gains and losses
related to the sales and closures of banking facilities, the sale
of employee benefit accounts and charges related to the voluntary
separation plan. The press release includes commentary that
compares such GAAP and non-GAAP financial measures. UMB Financial
Corporation (NASDAQ: UMBF), a Kansas City-based multi-bank holding
company, announced earnings of $15.9 million or $0.37 per share
($0.37 diluted) for the three months ended September 30, 2006. This
is a decrease of $0.3 million, or 1.9 percent, compared to the
three months ended September 30, 2005 earnings of $16.2 million or
$0.38 per share ($0.37 diluted). The decrease in earnings compared
to 2005 was a result of lower noninterest income primarily from
gains related to the sales and closures of banking facilities in
2005 and higher noninterest expense. These decreases to net income
were mostly offset by higher net interest income. Excluding the net
gains and losses related to the sales and closures of banking
facilities in both years, the net income for the third quarter of
2006 would have increased approximately 22.0 percent over the same
quarter in 2005. A table reconciling GAAP net income for these
items for the quarter and year-to-date is included with this
release. "We are pleased with our strong underlying earnings growth
of more than 20 percent," said Mariner Kemper, Chairman and CEO,
UMB Financial Corporation. "Combined with our expanding margin,
loan growth continues to be the consistent driver of our
performance. Our balance sheet continues to be well-positioned to
benefit from the current interest rate environment, and we're
confident that we are on the right track to finish the year with
solid performance." "Trust and card services income continue to be
the catalysts of growth in our fee business," said Peter deSilva,
President and Chief Operating Officer. "Total trust and mutual fund
assets under management have grown 21 percent over the third
quarter of 2005 and now stand at more than $9.6 billion. The growth
has been driven by both our Scout mutual funds and the
implementation of integrated sales teams in our wealth management
business. During the quarter our team added more than $140 million
in new assets to personal and institutional accounts. Our retail
business also had a very good quarter with solid customer growth
thanks partly to a successful Home Equity Line of Credit (HELOC)
summer promotion which generated more than $30 million in new home
equity loans. Our small business division is also starting to show
results with a 92 percent growth in deposits over the third quarter
of 2005." On September 15, 2006, UMB Financial Corporation
completed the acquisition of Mountain States Bancorporation, Inc.,
a bank holding company headquartered in Denver, Colorado. Mountain
States Bancorporation had consolidated assets of $284.1 million at
the time of the merger. Net Interest Income Net interest income for
the third quarter of 2006 increased $6.1 million, or 12.5 percent,
compared to the same period in 2005 due to higher earning assets
and greater net interest margin. For the three months ended
September 30, 2006, there was a $402.2 million, or 6.4 percent,
increase in average earning assets mostly from average loan growth
of $364.3 million, or 11.2 percent. Average loans for the third
quarter of 2006 included $30.5 million of average loans from
Mountain States Bank. The contribution from noninterest-bearing
demand deposits, which made up 33.0 percent of average total
deposits, increased in the third quarter of 2006 as compared to the
same quarter in 2005. This benefit from free funds, as well as a
favorable change in the mix of earning assets to higher yielding
loans contributed significantly to the 17 basis point increase in
net interest margin for the three months ended September 30, 2006
compared to the same quarter last year. Noninterest Income and
Expense Noninterest income decreased $0.3 million, or 0.5 percent,
for the three months ended September 30, 2006 compared to the same
period in 2005. The decrease was primarily attributable to $4.8
million in net gains recognized in the third quarter of 2005
related to the sale and closure of banking facilities. This
decrease was mostly offset by increases in fee-based income
including trust and securities processing income and bankcard
income. Trust and securities processing income increased by $4.4
million, or 21.6 percent, primarily from higher advisory fee income
related to increases in assets under management within the Scout
Funds. Bankcard income was $1.4 million, or 15.8 percent, higher
than the third quarter of 2005 resulting from increased interchange
fee income due to greater card activity. Noninterest expense
increased $6.3 million, or 7.0 percent, for the three months ended
September 30, 2006 compared to the same period in 2005. Equity
based compensation expense related to the adoption of new
accounting rules, as well as increases in benefit costs, were the
primary causes for the increase in salary and benefits expense.
Equipment expense increased mostly due to expenses related to
investments in computer equipment and software. Processing fees
increased primarily due to shareholder servicing and other
administrative fees paid to investment advisors which directly
correlate with the increase in net assets under management in the
Scout Funds. Bankcard expenses are higher mostly due to an enhanced
consumer rebate program which corresponds to the increased usage of
the consumer bankcard product. Balance Sheet Average total assets
for the three months ended September 30, 2006 were $7.5 billion
compared to $7.0 billion for the same period in 2005, an increase
of $423.6 million, or 6.0 percent. Average earning assets increased
by $402.2 million, or 6.4 percent. In addition to the increase in
earning assets, the mix of higher yielding loans to overall earning
assets was favorable. Average loans comprised 54.4 percent of the
company's earning asset base for the third quarter of 2006 as
compared to 52.1 percent for the same quarter in 2005. For the
three months ended September 30, 2006, average loans were $3.6
billion compared to $3.3 billion for the same period in 2005, an
increase of 11.2 percent. Actual loan balances on September 30,
2006, which includes $174.0 million from Mountain States Bank, were
$3.8 billion, compared to $3.3 billion on September 30, 2005. Loan
balances by category are as follows: -0- *T September September
Percent Loan by Category (in thousands) 30, 2006 30, 2005 Change
Change -------------------------------------- Commercial, financial
and agricultural $1,659,939 $1,518,749 $141,190 9.3% Real estate
construction 72,198 42,259 29,939 70.9% Consumer 999,183 992,547
6,636 0.7% Real estate 1,060,893 788,901 271,992 34.5% Leases 5,786
5,364 422 7.9% -------------------------------------- Total Loans
$3,797,999 $3,347,820 $450,179 13.4%
====================================== *T Average securities were
$2.6 billion for the third quarter of 2006 compared to $2.7 billion
for the same period in 2005, a decrease of $65.7 million, or 2.4
percent. This decrease was primarily a result of the utilization of
securities purchased under agreement to resell in lieu of
short-term discount notes related to public funds and customer
repurchase agreements. The average balance of securities purchased
under agreement to resell increased by $51.2 million in the third
quarter of 2006 compared to the same quarter in 2005. Average total
deposits increased $311.1 million, or 6.1 percent, to $5.4 billion
for the three months ended September 30, 2006, compared to the same
period in 2005. The increase in deposits came primarily from time
deposits and money market accounts. Average time deposit accounts
increased by $218.1 million, or 22.9 percent, for the third quarter
of 2006 as compared to the same quarter in 2005. Money market
accounts increased by $165.4 million, or 19.0 percent, for the
three months ended September 30, 2006, as compared to the same
period in 2005. Total deposits as of September 30, 2006 were $5.5
billion, which includes $227.1 million from Mountain States Bank.
As of September 30, 2006, UMB had total shareholders' equity of
$854.8 million, a 2.9 percent increase from the prior year.
Nonperforming loans at September 30, 2006 totaled $14.0 million
compared to $9.8 million a year earlier. As a percentage of total
loans, nonperforming loans increased to 0.37 percent of loans as of
September 30, 2006 compared to 0.29 percent as of September 30,
2005. Nonperforming loans are defined as nonaccrual loans and loans
more than 90 days past due. The company's allowance for loan losses
totaled $43.5 million, or 1.15 percent of total loans as of
September 30, 2006, compared to $39.7 million, or 1.19 percent of
total loans as of September 30, 2005. Year-to-Date Earnings for the
nine months ended September 30, 2006 were $44.0 million, or $1.03
per share ($1.03 diluted). This is an increase of $2.6 million, or
6.3 percent, compared to the prior year earnings of $41.4 million,
or $0.96 per share ($0.95 diluted). Excluding certain adjustments
described above (net gains and losses related to the sales and
closures of banking facilities, the sale of employee benefit
accounts and charges related to the voluntary separation plan) in
both years, the net income for the first nine months of the year
would have increased 20.5 percent over the same period in 2005. A
table reconciling GAAP net income for these items for the quarter
and year-to-date is included with this release. Net interest income
for the year-to-date September 30, 2006 increased $20.4 million, or
14.6 percent, compared to the same period in 2005 due primarily to
higher average earning assets and an increase in net interest
margin. Average earning assets increased by $488.5 million, or 7.9
percent, to $6.7 billion for the nine-months ended September 30,
2006 as compared to the same period in 2005. Net interest margin
was 3.36 percent for the year-to-date September 30, 2006 compared
to 3.17 percent for the same period in 2005. Noninterest income
decreased $1.0 million, or 0.5 percent, for the nine months ended
September 30, 2006 compared to the same period in 2005. In 2005, a
$3.6 million gain was recognized from the sale of employee benefit
accounts to Marshall & Ilsley Trust Company, n.a. and $8.8
million of net gains were recognized in 2005 on the sale and
closure of banking facilities as compared to $0.4 million in 2006.
These two items attributed to a $12.0 million decrease in
noninterest income for the year-to-date 2006 compared to 2005.
Additionally, service charges on deposits decreased by $5.0
million, or 8.3 percent, for the nine months ended September 30,
2006 as compared to the same period in 2005. This decrease in
deposit service charge income is mostly attributable to increases
in earnings credits on compensating balances. These decreases to
noninterest income were mostly offset by increases in trust and
securities processing income and bankcard income. Trust and
securities processing income increased by $11.6 million, or 19.2
percent, primarily from higher advisory fee income related to
increases in assets under management within the Scout Funds.
Bankcard income was $4.0 million, or 16.4 percent, higher than the
nine months ended September 30, 2005 due to increased interchange
fee income combined with greater card activity. Noninterest expense
increased $11.5 million, or 4.3 percent, for the year-to-date
September 30, 2006 compared to the same period in 2005. Salary
expense decreased primarily as a result of a $4.4 million charge
during 2005 related to a voluntary separation plan. Marketing
expense increased mostly due to an increase in business
development-related expenses in 2006 as compared to 2005. Bankcard
expense is higher in 2006 than in 2005 due to higher rebate
programs designed to encourage increased usage of the card
products. The increase in other expense was primarily attributable
to increases in operational charge-offs, including overdraft fees.
Other increases in this category included higher directors' fees
and bank examination fees. The company declared its regular
quarterly dividend of $0.13 per share to be paid on January 2,
2007, to shareholders of record as of the close of business on
December 12, 2006. The company plans to host a conference call to
discuss its third quarter results on October 25, 2006, at 4 p.m.
(CST). Interested parties may access the call by dialing U.S.
(toll-free) 800-257-7087, conference code 11072670#, or access the
following Web link to the live call: www.actioncast.acttel.com or
visit www.umb.com. Forward-Looking Statements: This release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, Section 21E of the Securities
Exchange Act of 1934, and within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements rely on a number of assumptions concerning future events
and are subject to risks and uncertainties, which could cause
actual results to differ materially from those contemplated by the
forward-looking statements in this Current Report on Form 8-K, any
exhibits to this Current Report and other public statements the
company may make. While management of UMB believes their
assumptions are reasonable, UMB cautions that changes in general
economic conditions, changes in interest rates, changes in the
securities markets, changes in operations, changes in competition,
technology changes, legislative or regulatory changes, the ability
of customers to repay loans, changes in loan demand, the ability to
integrate acquisitions and increases in employee costs, and other
risks and uncertainties detailed in UMB's filings with the
Securities and Exchange Commission, may cause actual results to
differ materially from those discussed in this release. UMB has no
duty to update such statements, and undertakes no obligation to
update or supplement forward-looking statements that become untrue
because of new information, future events or otherwise. Non-GAAP
Financial Measures: Certain financial measures contained in this
press release exclude significant gains and losses relating to the
sales and closures of banking facilities, the sale of employee
benefits accounts and the voluntary separation plan. Financial
measures which exclude those items have not been determined in
accordance with generally accepted accounting principles and are
therefore "non-GAAP" financial measures. Management of UMB believes
that investors' understanding of the company's performance is
enhanced by disclosing these non-GAAP financial measures as a
reasonable basis for comparison of the company's ongoing results of
operations. These non-GAAP measures should not be considered a
substitute for GAAP-basis measures and results. Our non-GAAP
measures may not be comparable to non-GAAP measures of other
companies. The attached Non-GAAP Reconciliation Table provides a
reconciliation of these non-GAAP financial measures to the most
closely analogous measure determined in accordance with GAAP. About
UMB: UMB Financial Corporation is a multi-bank holding company
headquartered in Kansas City, Mo., offering complete banking, asset
management and related financial services to both individual and
business customers nationwide. Its banking subsidiaries own and
operate 141 banking centers throughout Missouri, Illinois,
Colorado, Kansas, Oklahoma, Nebraska and Arizona. Subsidiaries of
the holding company and the lead bank, UMB Bank, n.a., include an
investment services group based in Milwaukee, Wisconsin, a trust
management company in South Dakota, and single-purpose companies
that deal with brokerage services, consulting services and
insurance. UMB was named one of Business Week's "Web Smart 50"
companies in 2005. -0- *T CONSOLIDATED BALANCE SHEETS UMB Financial
Corporation
----------------------------------------------------------------------
(all dollars in thousands) (unaudited) September 30, Assets 2006
2005 -------------------------------------------- -------------
----------- Loans $3,797,999 $3,347,820 Allowance for loan losses
(43,538) (39,715) ------------- ----------- Net loans 3,754,461
3,308,105 Loans held for sale 17,658 20,326 Investment Securities:
Available for sale 2,636,811 2,520,186 Held to maturity 51,606
104,591 Federal Reserve Bank stock and other 15,158 14,786 Trading
securities 48,160 57,987 ------------- ----------- Total investment
securities 2,751,735 2,697,550 Federal funds and resell agreements
280,910 285,209 Cash and due from banks 408,094 396,500 Bank
premises and equipment, net 241,290 226,668 Accrued income 56,300
46,291 Goodwill on purchased affiliates 96,017 60,182 Other
intangibles 19,136 4,078 Other assets 47,156 43,016 -------------
----------- Total assets $7,672,757 $7,087,925 =============
=========== Liabilities
-------------------------------------------- Deposits: Noninterest
- bearing demand $1,900,220 $1,931,580 Interest - bearing demand
and savings 2,493,922 2,082,229 Time deposits under $100,000
797,068 714,943 Time deposits of $100,000 or more 344,716 277,989
------------- ----------- Total deposits 5,535,926 5,006,741
Federal funds and repurchase agreements 1,148,677 1,127,111
Short-term debt 22,644 18,491 Long-term debt 36,798 39,083 Accrued
expenses and taxes 46,039 37,447 Other liabilities 27,834 28,106
------------- ----------- Total liabilities 6,817,918 6,256,979
------------- ----------- Shareholders' Equity
-------------------------------------------- Common stock 55,057
27,528 Capital surplus 699,029 725,897 Retained earnings 370,184
333,096 Accumulated other comprehensive loss (15,765) (18,573)
Treasury stock (253,666) (237,002) ------------- ----------- Total
shareholders' equity 854,839 830,946 ------------- -----------
Total liabilities and shareholders' equity $7,672,757 $7,087,925
============= =========== *T -0- *T Consolidated Statements of
Income UMB Financial Corporation
----------------------------------------------------------------------
(unaudited, dollars in thousands except share and per share data)
Three Months Ended Nine Months Ended September 30, September 30,
Interest Income 2006 2005 2006 2005 ------------------ ------------
------------ ------------ ------------ Loans $ 62,157 $ 48,081 $
172,931 $ 128,726 Securities: Taxable Interest 21,004 15,043 61,937
46,641 Tax-exempt interest 5,864 5,330 17,388 14,459 -----------
------------ ------------ ------------ Total securities income
26,868 20,373 79,325 61,100 Federal funds and resell agreements
5,025 2,382 15,152 5,057 Trading securities and other 579 581 2,029
1,734 ----------- ------------ ------------ ------------ Total
interest income 94,629 71,417 269,437 196,617 -----------
------------ ------------ ------------ Interest Expense
------------------ Deposits 25,942 14,233 69,533 34,480 Federal
funds and repurchase agreements 13,443 7,833 37,686 20,409
Short-term debt 105 108 429 283 Long-term debt 311 518 1,206 1,309
----------- ------------ ------------ ------------ Total interest
expense 39,801 22,692 108,854 56,481 ----------- ------------
------------ ------------ Net interest income 54,828 48,725 160,583
140,136 Provision for loan losses 1,500 1,454 7,734 2,954
----------- ------------ ------------ ------------ Net interest
income after provision for loan losses 53,328 47,271 152,849
137,182 ----------- ------------ ------------ ------------
Noninterest Income ------------------ Trust and securities
processing 25,038 20,590 72,698 61,056 Trading and investment
banking 4,757 3,897 13,437 13,166 Service charges on deposits
18,581 20,716 55,191 60,210 Insurance fees and commissions 1,056
837 3,149 2,580 Brokerage fees 1,508 1,515 4,626 4,575 Bankcard
fees 9,945 8,592 28,750 24,705 Other gains (losses), net (188)
4,801 408 8,772 Gain on sale of employee benefit accounts - - -
3,600 Gains (loss) on sales of securities available for sale 37
(190) 120 (223) Other 3,669 3,978 11,553 12,526 -----------
------------ ------------ ------------ Total noninterest income
64,403 64,736 189,932 190,967 ----------- ------------ ------------
------------ Noninterest Expense ------------------ Salaries and
employee benefits 48,894 47,821 143,928 148,232 Occupancy, net
6,932 6,841 20,288 19,728 Equipment 12,623 11,115 36,086 32,843
Supplies, postage and telephone 5,514 5,288 16,988 16,518 Marketing
and business development 4,001 3,473 11,645 10,040 Processing fees
7,137 6,233 20,692 17,320 Legal and consulting 2,080 1,890 5,736
5,613 Bankcard 3,410 2,694 10,220 8,227 Amortization of other
intangibles 365 185 868 557 Other 5,309 4,396 16,238 12,084
----------- ------------ ------------ ------------ Total
noninterest expense 96,265 89,936 282,689 271,162 -----------
------------ ------------ ------------ Income before income taxes
21,466 22,071 60,092 56,987 Income tax provision 5,601 5,900 16,127
15,624 ------------ ------------ ------------ ------------ Net
income $ 15,865 $ 16,171 $ 43,965 $ 41,363 ============
============ ============ ============ Per Share Data
------------------ Net income- Basic $ 0.37 $ 0.38 $ 1.03 $ 0.96
Net income- Diluted 0.37 0.37 1.03 0.95 Dividends 0.13 0.11 0.39
0.33 Weighted average shares outstanding 42,531,525 43,026,608
42,675,173 43,158,277 ============ ============ ============
============ *T -0- *T Consolidated Statements of
--------------------------------- Shareholders' Equity UMB
Financial Corporation
----------------------------------------------------------------------
(all dollars in thousands) (unaudited) Accumu- lated Other Compre-
Common Capital Retained hensive Treasury Stock Surplus Earnings
Income Stock Total
----------------------------------------------------------------------
Balance - January 1, 2005 $27,528 $726,595 $305,986
$(10,619)$(230,308)$819,182 Compre- hensive income Net income - -
41,363 - - 41,363 Change in unrealized losses on securities - - -
(7,954) - (7,954) --------- Total compre- hensive income 33,409
Cash dividends ($0.33 per share) - - (14,253) - - (14,253) Purchase
of treasury stock - - - - (8,506) (8,506) Issuance of stock awards
- (1,239) 1,239 - Recog- nition of equity based compen- sation 289
- 289 Sale of treasury stock - 131 - - 128 259 Exercise of stock
options - 121 - - 445 566
------------------------------------------------------ Balance -
September 30, 2005 $27,528 $725,897 $333,096
$(18,573)$(237,002)$830,946
====================================================== Balance -
January 1, 2006 $27,528 $726,204 $342,675
$(21,550)$(241,394)$833,463 Compre- hensive income Net income - -
43,965 - - 43,965 Change in unrealized losses on securities - - -
5,785 - 5,785 --------- Total compre- hensive income 49,750 Cash
dividends ($0.39 per share) - - (16,456) - - (16,456) Stock split 2
for 1 27,529 (27,529) - Purchase of treasury stock - - - - (13,813)
(13,813) Issuance of stock awards (938) 1,088 150 Recognition of
equity based compensation - 1,046 1,046 Sale of treasury stock -
182 - - 132 314 Exercise of stock options - 64 - - 321 385
----------------------------------------------------------------------
Balance - September 30, 2006 $55,057 $699,029 $370,184
$(15,765)$(253,666)$854,839
======================================================================
*T -0- *T Average Balances / Yields and Rates UMB Financial
Corporation
----------------------------------------------------------------------
(tax - equivalent basis)
----------------------------------------------------------------------
(all dollars in thousands)(unaudited) Nine Months Ended September
30, 2006 2005 ----------------------- -----------------------
Average Average Average Average Assets Balance Yield/Rate Balance
Yield/Rate ----------- ----------- ----------- ----------- Loans,
net of unearned interest $3,513,171 6.59 % $3,063,563 5.63 %
Securities: Taxable 2,051,522 4.04 2,259,293 2.76 Tax-exempt
675,102 5.01 619,921 4.65 ---------- ---------- ----------
---------- Total securities 2,726,624 4.28 2,879,214 3.17 Federal
funds and resell agreements 409,080 4.95 213,957 3.16 Other earning
assets 57,910 4.81 61,529 3.86 ---------- ---------- ----------
---------- Total earning assets 6,706,785 5.53 6,218,263 4.39
Allowance for loan losses (41,524) (40,621) Other assets 863,284
848,275 ----------- ----------- Total assets $7,528,545 $7,025,917
=========== =========== Liabilities and Shareholders' Equity
Interest-bearing deposits $3,612,891 2.57 % $3,182,195 1.45 %
Federal funds and repurchase agreements 1,122,993 4.49 1,040,823
2.62 Borrowed funds 50,549 4.32 47,991 4.44 ---------- ----------
---------- ---------- Total interest- bearing liabilities 4,786,433
3.04 4,271,009 1.77 Noninterest-bearing demand deposits 1,851,588
1,886,366 Other liabilities 52,041 40,511 Shareholders' equity
838,483 828,031 ----------- ----------- Total liabilities and
shareholders' equity $7,528,545 $7,025,917 =========== ===========
Net interest spread 2.49 % 2.62 % Net interest margin 3.36 3.17
Three Months Ended September 30, 2006 2005 -----------------------
----------------------- Average Average Average Average Assets
Balance Yield/Rate Balance Yield/Rate ----------- -----------
----------- ----------- Loans, net of unearned interest $3,621,883
6.81 % $3,257,584 5.86 % Securities: Taxable 1,930,684 4.32
2,020,836 2.95 Tax-exempt 686,237 4.95 661,749 4.75 ----------
---------- ---------- ---------- Total securities 2,616,921 4.48
2,682,585 3.40 Federal funds and resell agreements 372,198 5.36
259,151 3.65 Other earning assets 48,525 4.78 57,975 4.06
---------- ---------- ---------- ---------- Total earning assets
6,659,527 5.80 6,257,295 4.70 Allowance for loan losses (42,863)
(39,991) Other assets 833,500 809,211 ----------- ----------- Total
assets $7,450,164 $7,026,515 =========== =========== Liabilities
and Shareholders' Equity Interest-bearing deposits $3,625,766 2.84
% $3,225,571 1.75 % Federal funds and repurchase agreements
1,091,492 4.89 994,099 3.13 Borrowed funds 45,706 3.61 52,320 4.75
---------- ---------- ---------- ---------- Total interest- bearing
liabilities 4,762,964 3.32 4,271,990 2.11 Noninterest-bearing
demand deposits 1,784,278 1,873,330 Other liabilities 57,270 49,573
Shareholders' equity 845,652 831,622 ----------- ----------- Total
liabilities and shareholders' equity $7,450,164 $7,026,515
=========== =========== Net interest spread 2.48 % 2.59 % Net
interest margin 3.43 3.26 *T -0- *T THIRD QUARTER 2006 FINANCIAL
HIGHLIGHTS UMB Financial Corporation
----------------------------------------------------------------------
(all dollars in thousands, except per share data) (unaudited) Nine
Months Ended September 30, 2006 2005
------------------------------------------ -------------
------------- Net interest income $ 160,583 $ 140,136 Provision for
loan losses 7,734 2,954 Noninterest income 189,932 190,967
Noninterest expense 282,689 271,162 Income before income taxes
60,092 56,987 Net income 43,965 41,363 Net income per share - Basic
1.03 0.96 Net income per share - Diluted 1.03 0.95 Return on
average assets 0.78 % 0.79 % Return on average equity 7.01 % 6.68 %
Three Months Ended September 30
------------------------------------------ Net interest income $
54,828 $ 48,725 Provision for loan losses 1,500 1,454 Noninterest
income 64,403 64,736 Noninterest expense 96,265 89,936 Income
before income taxes 21,466 22,071 Net income 15,865 16,171 Net
income per share - Basic 0.37 0.38 Net income per share - Diluted
0.37 0.37 Return on average assets 0.84 % 0.91 % Return on average
equity 7.44 % 7.71 % At September 30
------------------------------------------ Assets $ 7,672,757 $
7,087,925 Loans, net of unearned interest 3,797,999 3,347,820
Securities 2,751,735 2,697,550 Deposits 5,535,926 5,006,741
Shareholders' equity 854,839 830,946 Book value per share 20.03
19.28 Market price per share 36.57 32.84 Equity to assets 11.14 %
11.72 % Allowance for loan losses $ 43,538 $ 39,715 As a % of loans
1.15 % 1.19 % Nonaccrual and restructured loans $ 8,121 $ 6,086 As
a % of loans 0.21 % 0.18 % Loans over 90 days past due $ 5,924 $
3,685 As a % of loans 0.16 % 0.11 % Other real estate owned $ 157 $
- Common shares outstanding 42,685,009 43,101,890 Average Balances
Nine Months Ended September 30
------------------------------------------ Assets $ 7,528,545 $
7,025,917 Loans and loans held for sale, net of unearned interest
3,513,171 3,063,563 Securities 2,726,624 2,879,214 Deposits
5,464,479 5,068,561 Shareholders' equity 838,483 828,031 *T -0- *T
Selected Financial Data of Affiliate Banks UMB Financial
Corporation
----------------------------------------------------------------------
(all dollars in thousands) (unaudited) September 30, 2006 Loans Net
of Total Unearned Total Shareholder's Missouri Assets Interest
Deposits Equity ------------------- ----------- -----------
----------- -------------- UMB Bank, n.a. $6,253,348 $3,025,337
$4,613,218 $ 558,214 UMB Bank Warsaw, N.A. 82,225 33,234 62,877
5,656 Colorado ------------------- ----------- -----------
----------- -------------- UMB Bank Colorado, n.a. 837,153 514,738
618,293 122,861 Kansas ------------------- ----------- -----------
----------- -------------- UMB National Bank of America 513,492
210,584 312,478 53,790 Arizona ------------------- -----------
----------- ----------- -------------- UMB Bank Arizona, n.a.
19,639 18,561 5,740 9,599 Banking - Related Subsidiaries
----------------------------------------------------------------------
UMB Community Development Corporation UMB Banc Leasing Corp. UMB
Financial Services, Inc. UMB Scout Insurance Services, Inc. UMB
Capital Corporation United Missouri Insurance Company UMB Trust
Company of South Dakota Scout Investment Advisors, Inc. UMB Fund
Services, Inc. UMB Consulting Services, Inc. Kansas City Realty
Company Kansas City Financial Corporation UMB Redevelopment
Corporation UMB Realty Company, LLC UMB National Sales Corporation
Grand Distribution Services, LLC UMB Distribution Service, LLC
Warsaw Financial Corporation *T -0- *T UMB Financial Corporation
Non-GAAP Reconciliation Schedule (unaudited, dollars in thousands)
The following tables present the reconciliation of non-GAAP
financial measures to reported GAAP financial measures. Three
months ended Nine months ended September 30, September 30, 2006
2005 2006 2005 --------- -------- --------- --------- Net interest
income after provision $53,328 $47,271 $152,849 $137,182
Noninterest income 64,403 64,736 189,932 190,967 Noninterest
expense 96,265 89,936 282,689 271,162 Income tax provision 5,601
5,900 16,127 15,624 --------- -------- --------- --------- Net
Income After Taxes 15,865 16,171 43,965 41,363 Adjustments
------------------------------- Noninterest income Other (gains)
losses, net 188 (4,801) (408) (8,772) Gains on sale of employee
benefit accounts - - - (3,600) Noninterest expense Voluntary
Separation Plan - - - 4,400 --------- -------- --------- ---------
Total adjustments pre-tax 188 (4,801) (408) (7,972) Less: Income
taxes 68 (1,728) (147) (2,870) --------- -------- ---------
--------- After Tax Adjustments to GAAP 120 (3,073) (261) (5,102)
--------- -------- --------- --------- Adjusted Net Income $15,985
$13,098 $43,704 $36,261 ========= ======== ========= ========= The
above table presents the variation in net income on an as reported
(GAAP) basis and excluding certain gains and losses related to the
sales and closures of banking facilities, the sale of employee
benefit accounts and charges related to the voluntary separation
plan. The press release includes commentary that compares such GAAP
and non-GAAP financial measures. *T
UMB Financial (NASDAQ:UMBF)
Historical Stock Chart
From Aug 2024 to Sep 2024
UMB Financial (NASDAQ:UMBF)
Historical Stock Chart
From Sep 2023 to Sep 2024