UMB Financial Corporation (Nasdaq: UMBF), a diversified
financial holding company, announced earnings for the first quarter
2016 of $36.2 million or $0.74 per diluted share, compared to $29.6
million or $0.60 per diluted share in the fourth quarter 2015
(linked quarter) and $33.8 million or $0.74 per diluted share
during the first quarter 2015.
On a non-GAAP operating basis, which is reconciled to comparable
GAAP financial measures later in this release, net operating income
for the first quarter 2016 was $38.6 million or $0.79 per diluted
share, compared to $34.2 million or $0.70 per diluted share on a
linked quarter basis and $33.0 million or $0.73 per diluted share
for the first quarter 2015.
Summary of financial results
UMB Financial Corporation
(unaudited, dollars in thousands)
Q12016
Q42015
Q12015
GAAP
Net income $ 36,245 $ 29,643 $ 33,765 Earnings per share (diluted)
0.74 0.60 0.74 Return on average assets
0.75
%
0.63
%
0.81
%
Return on average equity 7.51 6.15 8.18 Efficiency ratio 74.54
77.21 75.68
Non-GAAP
Net operating income $ 38,571 $ 34,234 $ 33,032 Operating earnings
per share (diluted) 0.79 0.70 0.73 Operating return on average
assets
0.80
%
0.72
%
0.80
%
Operating return on average equity 7.99 7.10 8.00 Operating
efficiency ratio 73.01 74.11 76.21
“UMB began the year by posting another quarter of double-digit
year-over-year loan growth and making good progress against our
expense initiatives implemented in 2015,” said Mariner Kemper,
chairman and chief executive officer. “Total loan balances
increased 29.4 percent from March 31, 2015 to March 31, 2016. Loans
produced by legacy UMB lenders increased 16.0 percent during that
period, once again outpacing industry averages. In addition, we
recognized savings of $4.9 million in the first quarter related to
our efficiency initiative. I am pleased with the results we’ve
posted and look forward to our continued growth.”
Summary of revenue
UMB Financial Corporation (unaudited, dollars in thousands)
Dollar Change
Q12016
Q42015
Q12015
Q116 vs.Q415
Q116 vs.Q115
Net interest income $ 117,892 $ 114,454 $ 90,358 $3,438 $27,534
Noninterest income: Trust and securities processing $ 59,485 $
62,194 $ 67,299 (2,709 ) (7,814 ) Trading and investment banking
4,630 5,559 6,122 (929 ) (1,492 ) Service charges on deposit
accounts 21,461 21,631 21,541 (170 ) (80 ) Insurance fees and
commissions 1,497 894 570 603 927 Brokerage fees 4,185 3,005 2,854
1,180 1,331 Bankcard fees 18,016 17,369 16,183 647 1,833 Gains on
sales of securities available for sale, net 2,933 1,998 7,336 935
(4,403 ) Equity losses on alternative investments (381 ) (5,189 )
(842 ) 4,808 461 Other 4,524 5,138
4,144 (614 ) 380
Total noninterest income $ 116,350 $ 112,599
$ 125,207 $3,751 $(8,857 ) Total
Revenue $ 234,242 $ 227,053 $ 215,565
$7,189 $18,677 Net interest
margin 2.79
%
2.76
%
2.46
%
Total noninterest income as a percentage of total revenue 49.7 49.6
58.1
Net interest income
- The improved net interest income in the
first quarter 2016, compared to the same quarter in 2015, was
driven by an increase in average loans of $2.1 billion and higher
average loan yields, which increased 32 basis points to 3.81
percent.
- For the first quarter 2016, average
earning assets stood at $18.0 billion, an increase of 3.6 percent
over the linked quarter and 14.2 percent over the first quarter
2015. The acquisition of Marquette Financial Companies (Marquette)
added earning assets with an acquired value of $1.2 billion on May
31, 2015.
- Net interest margin for the first
quarter 2016, which increased 33 basis points on a year-over-year
basis, was driven by the addition of Marquette’s higher-yielding
loans in addition to changes in the company’s earning asset
mix.
Noninterest income
- The improvement in noninterest income
over the linked quarter was driven by a change in equity losses on
alternative investments of $4.8 million. This increase was
partially offset by a decrease in trust and securities processing
income due primarily to a $2.5 million, or 22.3 percent decrease in
advisory fee income from the Scout Funds.
- Noninterest income decreased in the
first quarter 2016, compared to the first quarter 2015, primarily
due to a decrease in trust and securities processing income driven
by a $7.6 million, or 47.1 percent, decrease in advisory fee income
from the Scout Funds.
Noninterest expense
UMB Financial Corporation (unaudited, dollars
in thousands)
Dollar Change
Q12016
Q42015
Q12015
Q116 vs.Q415
Q116 vs.Q115
Salaries and employee benefits $ 107,150 $ 103,617 $ 98,537 $3,533
$8,613 Occupancy, net 10,972 11,791 10,010 (819 ) 962
Equipment 16,282 16,723 14,172 (441 ) 2,110 Supplies and services
4,949 4,280 4,325 669 624 Marketing and business development 4,441
6,816 4,618 (2,375 ) (177 ) Processing fees 11,462 13,096 12,783
(1,634 ) (1,321 ) Legal and consulting 4,799 7,447 4,378 (2,648 )
421 Bankcard 5,815 5,301 4,768 514 1,047 Amortization of other
intangible assets 3,226 3,283 2,755 (57 ) 471 Regulatory fees 3,429
3,320 2,756 109 673 Other 8,219 6,406
5,311 1,813 2,908 Total
noninterest expense $ 180,744 $ 182,080 $ 164,413
$(1,336 ) $16,331
Noninterest expense
- On a linked quarter basis, the decrease
in noninterest expense was primarily due to decreases in marketing
and business development and legal and consulting. These decreases
were offset, in part, by an increase in employee benefits
expense.
- The increase in noninterest expense
compared to the first quarter 2015 was primarily driven by:
- increased salaries and employee
benefits, which included $8.3 million in Marquette salaries and
benefits, $0.8 million in Marquette-related severance and $0.5
million of non-Marquette related severance for the first quarter
2016;
- higher equipment expense, which
increased 14.9 percent year-over-year for computer and hardware
costs related to investments for regulatory requirements, cyber
security and the ongoing modernization of our core systems;
and
- an increase in other noninterest
expense, driven by $2.3 million in positive fair value adjustments
on contingent consideration liabilities in the first quarter 2015
compared to a $0.1 million charge in the first quarter 2016.
- Acquisition expenses recognized during
the first quarter 2016 totaled $3.0 million, comprised of $1.0
million of human resource costs, $1.1 million of technology
integration, and $0.9 million of professional fees and other
integration costs. For comparison, acquisition expenses were $3.4
million for the fourth quarter 2015 and $0.8 million for the first
quarter 2015.
- On a non-GAAP basis, operating
noninterest expense, which excludes the impact of acquisition
expenses and other items as reconciled later in this release, was
$177.1 million for the first quarter 2016, an increase of $2.2
million, or 1.3 percent, compared to the linked quarter, and $11.6
million, or 7.0 percent, compared to the first quarter 2015. The
year-over-year increase is primarily due to $9.1 million in
Marquette salaries and benefits present in the first quarter
2016.
Balance Sheet Summary of loans and
leases UMB Financial Corporation
(unaudited, dollars in thousands)
Dollar Change
March 31,2016
December 31,2015
March 31,2015
Q116 vs.
Q415
Q116 vs.
Q115
Loans: Commercial $ 4,347,068 $ 4,205,736 $ 3,808,551
$ 141,332 $ 538,517 Asset-based 212,669 219,244 - (6,575 ) 212,669
Factoring 88,534 90,686 - (2,152 ) 88,534 Commercial credit card
146,031 125,361 129,972 20,670 16,059 Real estate – construction
497,504 416,568 256,277 80,936 241,227 Real estate – commercial
2,767,233 2,662,772 1,943,057 104,461 824,176 Real estate –
residential 485,722 492,227 330,234 (6,505 ) 155,488 Real estate –
HELOC 724,303 729,963 630,850 (5,660 ) 93,453 Consumer credit card
270,558 291,570 284,694 (21,012 ) (14,136 ) Consumer other 116,971
154,777 75,856 (37,806 ) 41,115 Leases 43,038
41,857 38,817 1,181
4,221 Total loans $ 9,699,631 $ 9,430,761
$ 7,498,308 $ 268,870 $ 2,201,323
- Average total assets for the first
quarter 2016 were $19.3 billion compared to $16.8 billion for the
same period in 2015, an increase of $2.5 billion, or 14.9
percent.
- Actual loans stood at $9.7 billion at
March 31, 2016, an increase of $268.9 million, or 2.9 percent, on a
linked quarter basis, and $2.2 billion, or 29.4 percent, compared
to first quarter 2015.
- Actual loans originated through legacy
UMB channels increased $1.2 billion, or 16.0 percent year-over-year
primarily driven by a $485.7 million increase in commercial real
estate loans and a $436.5 million increase in commercial
loans.
- At March 31, 2016, loans acquired and
originated through legacy Marquette channels totaled $997.9
million, comprised of $338.5 million in commercial real estate
loans, $212.7 million in asset-based loans, $121.1 million in
construction real estate loans, $95.7 million in residential real
estate loans, $88.5 million in factoring loans, and $102.0 million
in commercial loans.
Summary of securities
UMB Financial Corporation
(unaudited, dollars in thousands)
Dollar Change
March 31,2016
December 31,2015
March 31,2015
Q116 vs.Q415
Q116vs. Q115
Securities available for sale: U.S. Treasury $
354,261
$ 349,779 $ 428,311 $ 4,482 $ (74,050 ) U.S. Agencies 593,769
666,389 856,881 (72,620 ) (263,112 ) Mortgage-backed 3,668,538
3,572,446 3,343,521 96,092 325,017 State and political subdivisions
2,186,602 2,138,413 2,049,487 48,189 137,115 Corporates
80,142 79,922 108,801 220
(28,659 ) Total securities available for sale
6,883,312 6,806,949 6,787,001 76,363 96,311 Securities held to
maturity State and political subdivisions 804,652 667,106 346,885
137,546 457,767 Trading Securities 26,779 29,617 29,380 (2,838 )
(2,601 ) Other securities 64,591 65,198
67,200 (607 ) (2,609 ) Total
securities $ 7,779,334 $ 7,568,870 $ 7,230,466
$ 210,464 $ 548,868
- The growth in the company’s held to
maturity securities portfolio is attributed to increased activity
in private placement bonds, primarily used to refinance existing
revenue bonds in the healthcare and education sectors.
Summary of deposits UMB
Financial Corporation (unaudited, dollars in thousands)
Dollar Change
March 31,2016
December 31,2015
March 31,2015
Q116 vs.Q415
Q116 vs.Q115
Deposits: Noninterest-bearing demand $ 6,202,026
$6,306,895 $ 5,617,788 $ (104,869 ) $ 584,238 Interest-bearing
demand and savings 8,178,712 7,529,972 6,668,991 648,740 1,509,721
Time deposits under $250,000 727,709 771,973 620,644 (44,264 )
107,065 Time deposits of $250,000 or more 309,926
483,912 248,865 (173,986 )
61,061 Total deposits $ 15,418,373 $15,092,752
$ 13,156,288 $ 325,621 $ 2,262,085
- At March 31, 2016, noninterest-bearing
demand deposits were 40.2 percent of total deposits.
- Deposit balances from the legacy
Marquette channels totaled $744.1 million at March 31, 2016.
Capital information
UMB Financial Corporation (unaudited, dollars in thousands,
except per share data)
March 31,2016
December 31,2015
March 31,2015
Total equity $ 1,947,959 $ 1,893,694 $ 1,682,376 Book value
per common share 39.38 38.34 36.76
Regulatory
capital: Common equity Tier 1 capital $ 1,675,854 $ 1,664,815 $
1,444,625 Tier 1 capital 1,675,854 1,681,222 1,444,625 Total
capital 1,825,867 1,814,705 1,524,206
Regulatory capital
ratios: Common equity Tier 1 capital ratio
11.80
%
11.74
%
12.91
%
Tier 1 risk-based capital ratio 11.80 11.86 12.91 Total risk-based
capital ratio 12.85 12.80 13.62 Tier 1 leverage ratio 8.78 9.08
8.69
- The year-over-year increase in total
equity is primarily attributable to the common stock issuance
associated with the acquisition of Marquette of $179.7 million at
May 31, 2015.
Credit quality
UMB Financial Corporation (unaudited, dollars
in thousands)
Q12016
Q42015
Q32015
Q22015
Q12015
Net charge-offs – Commercial loans $ 2,586 $ 178 $ 636 $
2,999 $ (398 ) Net charge-offs – Real estate loans 1,301 (50
) (65 ) (9 ) 17 Net charge-offs – Consumer credit card loans 1,781
1,628 1,524 1,627 1,974 Net charge-offs – Consumer other loans 77
130 97 141 68 Net charge-offs – Total loans 5,745 1,886 2,192 4,758
1,661 Net loan charge-offs as a percentage of total average loans
0.24
%
0.08
%
0.10
%
0.24
%
0.09
%
Loans over 90 days past due $ 3,334 $ 7,324 $ 2,552 $ 7,645 $ 5,170
Loans over 90 days past due as a percentage of total loans
0.03
%
0.08
%
0.03
%
0.09
%
0.07
%
Nonaccrual and restructured loans $ 54,933 $ 61,152 $ 49,955 $
37,649 $ 29,187 Nonaccrual and restructured loans as a percentage
of total loans 0.57
%
0.65
%
0.55
%
0.42
%
0.39
%
- Nonperforming loans, defined as
nonaccrual and restructured loans, decreased $6.2 million from the
linked quarter and increased $25.7 million from the same quarter in
2015.
Efficiency Initiatives
In 2015, the company announced efficiency initiatives with cost
savings expected to be recognized as follows: $6.8 million in 2015,
$22.6 million in 2016, and annualized savings of $32.9 million in
2017 and beyond. As an update, the company recognized $9.5 million
of these cost savings in 2015, and $4.9 million in the first
quarter 2016, and expects to recognize an additional $15.9 million
in the remainder of 2016 and annualized savings of $32.9 million
beginning in 2017.
Conference Call
The company plans to host a conference call to discuss its first
quarter 2016 earnings results on April 27, 2016 at 8:30 a.m. (CT).
Interested parties may access the call by dialing (toll-free)
877-267-8760 or (U.S.) 412-542-4148 and requesting to join the UMB
Financial call. The live call can also be accessed by visiting the
investor relations area of umbfinancial.com or by using the
following the link:
UMB Financial 1Q 2016 Conference Call
A replay of the conference call may be heard through May 12,
2016, by calling (toll-free) 877-344-7529 or (U.S.) 412-317-0088.
The replay pass code required for playback is 10083904. The call
replay may also be accessed via the company's website
umbfinancial.com by visiting the investor relations area.
Non-GAAP Financial
Information
In this release, we provide information using net operating
income, operating earnings per share (operating EPS), operating
return on average equity (operating ROE), operating return on
average assets (operating ROA), operating noninterest expense, and
operating efficiency ratio, all of which are non-GAAP financial
measures. This information supplements the results that are
reported according to generally accepted accounting principles
(GAAP) and should not be viewed in isolation from, or as a
substitute for, GAAP results. The differences between the non-GAAP
financial measures—net operating income, operating EPS, operating
ROE, operating ROA, operating noninterest expense and operating
efficiency ratio—and the comparable GAAP financial measures are
reconciled later in this release. The company believes that these
non-GAAP financial measures and the reconciliations may be useful
to investors because they adjust for acquisition- and
severance-related items that management does not believe reflect
the company’s fundamental operating performance.
Net operating income for the relevant period is defined as GAAP
net income, adjusted to reflect the after-tax impact of excluding
the following: (i) fair value adjustments to contingent
consideration for the acquisitions of Prairie Capital Management,
LLC and Reams Asset Management Company, (ii) expenses related to
the acquisition of Marquette, and (iii) non-acquisition severance
expense. Operating EPS (basic and diluted) is calculated as net
operating income, divided by the company’s average number of shares
outstanding (basic and diluted) for the relevant period. Operating
ROE is calculated as net operating income, divided by the company’s
average total shareholders’ equity for the relevant period.
Operating ROA is calculated as net operating income, divided by the
company’s average assets for the relevant period. Operating
noninterest expense for the relevant period is defined as GAAP
noninterest expense, adjusted to reflect the pre-tax impact of
non-GAAP adjustments described in clauses i-iii above. Operating
efficiency ratio is calculated as the company’s operating
noninterest expense, less amortization of other intangibles,
divided by the company’s tax equivalent net interest income plus
noninterest income less gains on sales of securities available for
sale.
Forward-Looking
Statements:
This release contains, and our other communications may contain,
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements can be
identified by the fact that they do not relate strictly to
historical or current facts—such as our statements about expected
cost savings and other results of efficiency initiatives and our
statements about asset sensitivity. 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, 2015, our subsequent Quarterly Reports on Form 10-Q or
Current Reports on Form 8-K, or other applicable documents that are
filed or furnished with the SEC. Any forward-looking statement made
by us or on our behalf speaks only as of the date that it was made.
We do not undertake to update any forward-looking statement to
reflect the impact of events, circumstances, or results that arise
after the date that the statement was made. You, however, should
consult further disclosures (including disclosures of a
forward-looking nature) that we may make in any subsequent Annual
Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report
on Form 8-K, or other applicable document that is filed or
furnished with the SEC.
About UMB:
UMB Financial Corporation (Nasdaq: UMBF) is a diversified
financial holding company headquartered in Kansas City, Mo.,
offering complete banking services, 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.
Non-GAAP Financial Measures
UMB Financial Corporation
Net operating income non-GAAP reconciliation: (unaudited,
dollars in thousands, except per share data)
Three Months
Ended March 31, 2016 2015 Net
income (GAAP) $ 36,245 $ 33,765
Adjustments (net of
tax): Fair value adjustments on contingent consideration (i) 43
(1,449 ) Acquisition expenses (ii) 1,948 490 Non-acquisition
severance expense (iii) 335 226
Total Non-GAAP adjustments (net of tax) 2,326
(733 )
Net operating income (Non-GAAP) $ 38,571
$ 33,032
GAAP
Earnings per share - basic
$ 0.74 $ 0.75
Earnings per share - diluted
0.74 0.74 Return on average assets 0.75 % 0.81 % Return on average
equity 7.51 % 8.18 %
Non-GAAP
Operating earnings per share - basic
$ 0.79 $ 0.73
Operating earnings per share - diluted
0.79 0.73 Operating return on average assets 0.80 % 0.80 %
Operating return on average equity 7.99 % 8.00 %
Operating noninterest expense and operating efficiency ratio
non-GAAP reconciliation: (unaudited, dollars in thousands)
Three Months Ended March 31,
2016 2015 Noninterest expense (GAAP) $ 180,744
$ 164,413 Adjustments (pre-tax): Fair value adjustments on
contingent consideration (i) 67 (2,264 ) Acquisition expenses (ii)
3,043 766 Non-acquisition severance expense (iii) 524
353 Total Non-GAAP adjustments (pre-tax)
3,634 (1,145 ) Operating noninterest
expense 177,110 165,558
Noninterest expense 180,744 164,413 Less: Amortization of other
intangibles 3,226 2,755
Noninterest expense, net of amortization of other intangibles
(numerator A) 177,518 161,658
Operating noninterest expense (Non-GAAP) 177,110 165,558
Less: Amortization of other intangibles 3,226
2,755 Operating expense, net of amortization of other
intangibles (numerator B) 173,884
162,803 Net interest income (tax equivalent) (iv)
124,744 95,750 Noninterest income 116,350 125,207 Less: Gains on
sales of securities available for sale, net 2,933
7,336 Total (denominator A)
$
238,161
$
213,621 Efficiency ratio (numerator A/denominator A)
74.54 % 75.68 % Operating efficiency ratio (numerator B/denominator
A) 73.01 % 76.21 %
(i) Represents fair value adjustments to
contingent consideration for the acquisitions of Prairie Capital
Management, LLC and Reams Asset Management Company.
(ii) Represents expenses related to the acquisition of Marquette
Financial Companies (Marquette). (iii) Represents non-acquisition
severance expense related to UMB-legacy employees. Severance
expense for Marquette-legacy employees is included in item (ii).
(iv) Tax-exempt interest income has been adjusted to a tax
equivalent basis. The amount of such adjustment was an addition to
net interest income of $13.0 million and $9.0 million for the three
months ended March 31, 2016 and 2015, respectively.
Consolidated Balance Sheets UMB Financial
Corporation (unaudited, dollars in thousands)
March
31,
Assets
2016 2015 Loans $ 9,699,631 $ 7,498,308
Allowance for loan losses (80,398 ) (77,479 )
Net loans 9,619,233 7,420,829
Loans held for sale 4,830 3,141 Investment securities: Available
for sale 6,883,312 6,787,001 Held to maturity 804,652 346,885
Trading securities 26,779 29,380 Other securities 64,591
67,200 Total investment securities
7,779,334 7,230,466 Federal
funds and resell agreements 170,824 24,379 Interest-bearing due
from banks 401,961 769,321 Cash and due from banks 325,446 449,315
Premises and equipment, net 279,079 263,542 Accrued income 90,002
80,083 Goodwill 228,396 209,758 Other intangibles, net 43,556
41,236 Other assets 360,252 238,053
Total assets $ 19,302,913 $ 16,730,123
Liabilities
Deposits: Noninterest-bearing demand $ 6,202,026 $ 5,617,788
Interest-bearing demand and savings 8,178,712 6,668,991 Time
deposits under $250,000 727,709 620,644 Time deposits of $250,000
or more 309,926 248,865 Total
deposits 15,418,373 13,156,288
Federal funds and repurchase agreements 1,681,723 1,719,080
Short-term debt 5,006 - Long-term debt 85,238 7,600 Accrued
expenses and taxes 116,408 135,758 Other liabilities 48,206
29,021 Total liabilities
17,354,954 15,047,747
Shareholders'
Equity
Common stock 55,057 55,057 Capital surplus 1,017,420 892,658
Retained earnings 1,058,131 986,923 Accumulated other comprehensive
income 32,468 26,810 Treasury stock (215,117 )
(279,072 ) Total shareholders' equity 1,947,959
1,682,376 Total liabilities and shareholders'
equity $ 19,302,913 $ 16,730,123
Consolidated Statements of
Income
UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
Three Months Ended March 31, 2016
2015
Interest
Income
Loans $ 90,544 $ 64,232 Securities: Taxable Interest 19,357 18,808
Tax-exempt interest 12,735 9,915
Total securities income 32,092 28,723 Federal funds and resell
agreements 507 51 Interest-bearing due from banks 891 852 Trading
securities 52 95 Total interest
income 124,086 93,953
Interest
Expense
Deposits 4,055 3,048 Federal funds and repurchase agreements 1,230
492 Other 909 55 Total interest
expense 6,194 3,595 Net interest
income 117,892 90,358 Provision for loan losses 5,000
3,000 Net interest income after provision for
loan losses 112,892 87,358
Noninterest
Income
Trust and securities processing 59,485 67,299 Trading and
investment banking 4,630 6,122 Service charges on deposits 21,461
21,541 Insurance fees and commissions 1,497 570 Brokerage fees
4,185 2,854 Bankcard fees 18,016 16,183 Gains on sales of
securities available for sale, net 2,933 7,336 Equity losses on
alternative investments (381 ) (842 ) Other 4,524
4,144 Total noninterest income 116,350
125,207
Noninterest
Expense
Salaries and employee benefits 107,150 98,537 Occupancy, net 10,972
10,010 Equipment 16,282 14,172 Supplies and services 4,949 4,325
Marketing and business development 4,441 4,618 Processing fees
11,462 12,783 Legal and consulting 4,799 4,378 Bankcard 5,815 4,768
Amortization of other intangible assets 3,226 2,755 Regulatory fees
3,429 2,756 Other 8,219 5,311
Total noninterest expense 180,744
164,413 Income before income taxes 48,498
48,152 Income tax provision
12,253 14,387
Net income $
36,245 $ 33,765
Per Share
Data
Net income - basic
$ 0.74 $ 0.75
Net income - diluted
0.74 0.74 Dividends 0.245 0.235
Weighted average shares outstanding –
basic
48,756,433 45,000,831 Weighted average shares outstanding – diluted
49,090,232 45,437,654
Statements of Consolidated
Comprehensive Income UMB Financial Corporation
(unaudited, dollars in thousands)
Three Months Ended
March 31,
2016 2015 Net Income $ 36,245 $ 33,765
Other comprehensive income, net of tax: Unrealized gains on
securities: Change in unrealized holding gains, net 65,312 32,676
Less: Reclassifications adjustment for gains included in net income
(2,933) (7,336) Change in unrealized gains
during the period 62,379 25,340 Change in unrealized losses on
derivatives (4,140) - Income tax expense (22,053)
(9,536) Other comprehensive income 36,186
15,804 Comprehensive income $ 72,431 $ 49,569
Consolidated Statements of
Shareholders' Equity
UMB Financial
Corporation (unaudited, dollars in thousands, except per share
data)
Accumulated Other Common
Capital Retained Comprehensive Treasury
Stock Surplus Earnings
Income (Loss) Stock Total
Balance - January 1, 2015 $ 55,057 $ 894,602 $ 963,911 $11,006 $
(280,818 ) $ 1,643,758 Total comprehensive income - - 33,765 15,804
- 49,569 Cash dividends ($0.235 per share) - - (10,753 ) - -
(10,753 ) Purchase of treasury stock - - - - (5,309 ) (5,309 )
Issuance of equity awards - (5,848 ) - - 6,308 460 Recognition of
equity based compensation - 2,609 - - - 2,609 Net tax benefit
related to equity compensation plans - 585 - - - 585 Sale of
treasury stock - 141 - - 94 235 Exercise of stock options -
569 - -
653 1,222 Balance – March
31, 2015 $ 55,057 $ 892,658 $ 986,923
$26,810 $ (279,072 ) $ 1,682,376
Balance - January 1, 2016 $ 55,057 $ 1,019,889 $ 1,033,990
$(3,718 ) $ (211,524 ) $ 1,893,694 Total comprehensive income - -
36,245 36,186 - 72,431 Cash dividends ($0.245 per share) - -
(12,104 ) - - (12,104 ) Purchase of treasury stock - - - - (12,880
) (12,880 ) Issuance of equity awards - (6,199 ) - - 6,628 429
Recognition of equity based compensation - 2,347 - - - 2,347 Net
tax deficiency related to equity compensation plans - (34 ) - - -
(34 ) Sale of treasury stock - 123 - - 140 263 Exercise of stock
options - 1,294 -
- 2,519 3,813
Balance – March 31, 2016 $ 55,057 $ 1,017,420
$ 1,058,131 $32,468 $ (215,117 )
$ 1,947,959
Average Balances
/ Yields and Rates UMB Financial
Corporation (tax - equivalent basis) (unaudited,
dollars in thousands)
Three Months Ended March 31,
2016 2015 Average Average
Average Average
Assets
Balance Yield/Rate Balance
Yield/Rate Loans, net of unearned interest $
9,550,291 3.81 % $ 7,470,101 3.49 % Securities: Taxable 4,826,822
1.61 4,868,560 1.57 Tax-exempt 2,805,514 2.81
2,254,237 2.75 Total securities
7,632,336 2.05 7,122,797 1.94 Federal funds and resell agreements
146,791 1.39 34,340 0.60 Interest-bearing due from banks 648,635
0.55 1,107,862 0.31 Trading securities 26,358
1.01 30,221 1.84 Total earning
assets 18,004,411 2.93 15,765,321 2.56 Allowance for loan losses
(80,820 ) (76,574 ) Other assets 1,411,260
1,143,208 Total assets $ 19,334,851 $
16,831,955
Liabilities and
Shareholders' Equity
Interest-bearing deposits $ 9,429,774 0.17 % $ 7,602,258 0.16 %
Federal funds and repurchase agreements 1,696,555 0.29 1,710,908
0.12 Borrowed funds 92,558 3.95
8,331 2.68 Total interest-bearing liabilities
11,218,887 0.22 9,321,497 0.16 Noninterest-bearing demand deposits
6,014,820 5,660,893 Other liabilities 159,883 174,804 Shareholders'
equity 1,941,261 1,674,761 Total
liabilities and shareholders' equity $ 19,334,851 $
16,831,955 Net interest spread 2.71 % 2.40 % Net
interest margin 2.79 2.46
Business Segment
Information UMB Financial Corporation (unaudited,
dollars in thousands)
Three Months Ended March 31,
2016 Bank
InstitutionalInvestmentManagement
AssetServicing
Total Net interest income $ 115,271 $ -
$ 2,621 $ 117,892 Provision for loan losses 5,000 - -
5,000 Noninterest income 75,441 18,416 22,493 116,350 Noninterest
expense 143,361 17,233 20,150
180,744 Income before taxes 42,351 1,183 4,964 48,498
Income tax expense 10,706 289
1,258 12,253 Net income $ 31,645 $ 894
$ 3,706 $ 36,245 Average assets $ 17,885,000 $ 63,000
$ 1,387,000 $ 19,335,000
Three Months Ended March
31, 2015 Bank
InstitutionalInvestmentManagement
AssetServicing
Total Net interest income $ 89,360 $ 1 $ 997 $
90,358 Provision for loan losses 3,000 - - 3,000 Noninterest income
74,689 27,084 23,434 125,207 Noninterest expense 125,178
17,961 21,274 164,413
Income before taxes 35,871 9,124 3,157 48,152 Income tax expense
10,715 2,750 922
14,387 Net income $ 25,156 $ 6,374 $ 2,235 $
33,765 Average assets $ 15,814,000 $ 75,000 $ 943,000 $
16,832,000
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UMB Financial CorporationKelli Christman,
816-916-3240
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