Exhibit 99.1
Information Release
UMB Financial Corporation
P.O. Box 419226
Kansas City, MO 64141-6226
816/860-7000
umb.com
P.O. Box 419226
Kansas City, MO 64141-6226
816/860-7000
umb.com
April 17, 2003
For Immediate Release
Corporate Communications Contact: Bridget Mason Hess, 816-860-5644
Investor Relations Contact: Patrick Derpinghaus, 816-860-7076
UMB Financial Corporation Announces First Quarter Earnings
Kansas City, Mo. - UMB Financial Corporation (NASDAQ: UMBF), a Kansas City based multi-bank holding company, announced earnings of $14.5 million or $0.66 per share for the three months ended March 31, 2003. This was a $2.4 million or a 19.8% increase over the previous quarter's earnings of $12.1 million or $0.55 per share for the three months ended December 31, 2002. Increases in bond trading and service charge revenues as well as additional margin earned on seasonal public fund deposits fueled this increase. However, this also compares to earnings of $19.6 million or $0.89 per share for the three months ended March 31, 2002. The decline in earnings from the three months ended March 31, 2003, compared to 2002 was caused by lower average yields in loan and securities portfolios and a decrease in outstanding loan and securities balances caused by the slow economy. Net interest margin was 3.15 percent for the three months ended March 31, 2003, compared to 3.31 percent for the same period in 2002. Non-interest income declined for the three months ended March 31, 2003, compared to 2002 due to lower gains on the sale of securities and lower trust and securities processing fees directly related to the decline in the equity markets. Non-interest expenses were down significantly in the three months ended March 31, 2003, compared to 2002 due to lower overhead costs.
"While the pressure on net interest margins, an uncertain economy and languid equity markets continue to pose a challenge, our increase in earnings over last quarter is an indication that our ongoing focus on growing our fee-based business, increasing our customer base, diversifying our income streams, maintaining our high-quality loan portfolio and managing our operating expenses is paying off," said R. Crosby Kemper III, Chairman and CEO of UMB Financial Corporation and its lead bank, UMB Bank, n.a.
For the three months ended March 31, 2003, net interest income declined 12.0 percent to $50.7 million compared to $57.6 million for the three months ended March 31, 2002. Non-interest income for the three months ended March 31, 2003 totaled $58.7 million compared to $62.1 million for the same period in 2002. Non-interest expense for the three months ended March 31, 2003, was $86.4 million compared to $89.7 million for the three months ended March 31, 2002. Salaries and benefit costs declined due to reduction in staffing requirements. Equipment costs declined due to lower depreciation and repairs and maintenance.
During the three months ended March 31, 2003, UMB recorded a provision for loan losses of $4.0 million compared to a provision of $3.1 million for the three months ended March 31, 2002. Also during the three months ended March 31, 2003, the Company's net loan charge-offs were $1.75 million compared to $1.89 million for the three months ended March 31, 2002.
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For the three months ended March 31, 2003, average loans were $2.6 billion compared to $2.7 billion for the same period in 2002. Average deposit totals decreased to $5.46 billion for the three months ended March 31, 2003, compared to $6.03 billion for the same period in 2002. As of March 31, 2003, UMB had total shareholder's equity of $800 million a 3.8 percent increase from the prior year. The Company's equity to assets at March 31, 2003, was 10.89 percent.
The quality of the Company's loan portfolio remains high as nonperforming loans at March 31, 2003, totaled $15.6 million compared to $21.7 million a year earlier. Nonperforming loans as a percentage of average loans were .6% and .8%, respectively. Nonperforming loans are defined as nonaccrual loans and loans more than 90 days past due. The Company's allowance for loan losses totaled $39.5 million, or 1.56 percent of total loans at March 31, 2003. As of March 31, 2003, the allowance for loan losses was 254 percent of nonperforming loans compared to 170 percent one year earlier.
"Our continuing focus is on developing our consumer and middle market customer base and fee-income businesses. Our excellent investment performance, our superior cash management products, and our corporate and mutual fund services lessen our exposure to interest rate swings and give us a continuing growth profile," added Mr. Kemper. "While we don't anticipate an immediate change in the interest rate climate in 2003, we are well-positioned with a strong and liquid balance sheet to see us through this short-term environment, which also positions us well for longer-term growth."
In addition, the Company announced that the Board of Directors authorized the repurchase of up to one million shares of the company's common stock, or approximately five percent of the company's currently outstanding shares, during the next 12 months. Shares purchased under this program will be used for general corporate purposes and may be available for re-issuance in connection with the Company's stock option plan, dividend reinvestment plan and stock dividend program. The Company may repurchase the shares from time to time in open market or privately negotiated transactions at the Company's discretion, and on such terms, including, without limitation, quantity, timing and price, as management may determine to be in the Company's best interest.
About UMB
UMB Financial Corporation is a multi-bank holding company headquartered in Kansas City, Mo., offering complete banking and related financial services to both individual and business customers. Its banking subsidiaries own and operate 156 banking centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma and Nebraska. 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, leasing, venture capital and insurance.
Forward-Looking Statements
This release contains forward-looking statements of expected future developments. We wish to ensure such statements are accompanied by meaningful cautionary statements pursuant to safe harbor established by the Private Securities Litigation Reform Act of 1995. The forward-looking statements in the release refer to the expectations regarding continuing operating improvement and other matters. These forward looking statement reflect management's expectations and are based on currently available data; however, actual results are subject to future events and uncertainties, which could materially affect actual performance. Our future performance involves a number of risks and uncertainties. Risks and uncertainties that could affect such performance include, but are not limited to: changing loan demand, the ability of customers to repay loans, changes in consumer saving habits, increases in employee costs, changes in interest rates, competition, and changes in economic conditions or regulatory requirements. Any forward-looking statements should be read in conjunction with information about risks and uncertainties set forth in the company's Securities and Exchange Commission reports, including its annual report and Form 10-K for the year ended December 31, 2002.
For more information, please review our first quarterfinancial statements.
FIRST QUARTER 2003
FINANCIAL HIGHLIGHTS |
UMB Financial Corporation |
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| (all dollars in thousands, except per share data) (unaudited) | | | | | | | |
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| Three Months Ended March 31 | | | 2003 | | | 2002 | |
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| Net interest income | | $ | 50,737 | | $ | 57,645 | |
| Provision for loan losses | | | 3,973 | | | 3,106 | |
| Noninterest income | | | 58,748 | | | 62,092 | |
| Noninterest expense | | | 86,351 | | | 89,659 | |
| Income before income taxes | | | 19,161 | | | 26,972 | |
| Net income | | | 14,507 | | | 19,578 | |
| Net income per share - Basic | | | 0.66 | | | 0.89 | |
| Net income per share - Diluted | | | 0.66 | | | 0.88 | |
| Return on average assets | | | 0.78 | % | | 0.95 | % |
| Return on average equity | | | 7.29 | % | | 10.17 | % |
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| At March 31 | | | | | | | |
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| Assets | | $ | 7,342,126 | | $ | 8,285,335 | |
| Loans, net of unearned interest | | | 2,538,125 | | | 2,717,000 | |
| Securities | | | 3,768,510 | | | 4,471,743 | |
| Deposits | | | 5,474,710 | | | 6,032,686 | |
| Shareholders' equity | | | 799,841 | | | 770,465 | |
| Book value per share | | | 36.75 | | | 34.92 | |
| Market price per share | | | 36.67 | | | 42.88 | |
| Equity to assets | | | 10.89 | % | | 9.30 | % |
| Allowance for loan losses | | $ | 39,548 | | $ | 36,850 | |
| As a % of loans | | | 1.56 | % | | 1.36 | % |
| Nonaccrual and restructured loans | | $ | 9,578 | | $ | 13,734 | |
| As a % of loans | | | 0.38 | % | | 0.51 | % |
| Loans over 90 days past due | | $ | 6,005 | | $ | 7,929 | |
| As a % of loans | | | 0.24 | % | | 0.29 | % |
| Other real estate owned | | $ | 4,965 | | $ | 5,833 | |
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| Common shares outstanding | | | 21,765,436 | | | 22,062,781 | |
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| Average Balances | | | | | | | |
| Three Months Ended March 31 | | | | | | | |
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| Assets | | $ | 7,534,726 | | $ | 8,390,270 | |
| Loans, net of unearned interest | | | 2,565,621 | | | 2,747,831 | |
| Securities | | | 3,927,155 | | | 4,453,568 | |
| Deposits | | | 5,458,202 | | | 6,027,775 | |
| Shareholders' equity | | | 806,735 | | | 780,578 | |
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| CONSOLIDATED BALANCE SHEETS | UMB Financial Corporation |
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| (all dollars in thousands) (unaudited) |
| | March 31, | |
| Assets | 2003 | | 2002 | |
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| Loans: |
| Commercial, financial and agricultural | | $ | 1,279,897 | | $ | 1,596,923 | |
| Consumer (net of unearned interest) | | | 805,471 | | | 820,545 | |
| Real estate | | | 444,860 | | | 292,067 | |
| Leases | | | 7,897 | | | 7,465 | |
| Allowance for loan losses | | | (39,548) | | | (36,850) | |
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| Net loans | | $ | 2,498,577 | | $ | 2,680,150 | |
| Securities available for sale: | |
| U.S. Treasury and agencies | | $ | 2,813,327 | | $ | 3,499,776 | |
| State and political subdivisions | | | 345,296 | | | 163,588 | |
| Commercial paper and other | | | 174,752 | | | 239,355 | |
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| Total securities available for sale | | $ | 3,333,375 | | $ | 3,902,719 | |
| Securities held to maturity: | |
| State and political subdivisions | | $ | 376,449 | | $ | 509,534 | |
| Federal funds and resell agreements | | | 95,672 | | | 297,604 | |
| Trading securities & other earning assets | | | 60,520 | | | 61,324 | |
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| Total earning assets | | $ | 6,364,593 | | $ | 7,451,331 | |
| Cash and due from banks | | | 592,402 | | | 415,204 | |
| Bank premises and equipment | | | 228,590 | | | 236,449 | |
| Accrued income | | | 52,028 | | | 63,262 | |
| Goodwill on purchased affiliates | | | 54,761 | | | 53,017 | |
| Other intangibles | | | 6,324 | | | 8,262 | |
| Other assets | | | 43,428 | | | 57,810 | |
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| Total assets | | $ | 7,342,126 | | $ | 8,285,335 | |
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| Liabilities | |
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| Deposits: | |
| Noninterest - bearing demand | | $ | 1,864,749 | | $ | 1,907,147 | |
| Interest - bearing demand and savings | | | 2,560,210 | | | 2,963,244 | |
| Time deposits under $100,000 | | | 806,621 | | | 893,854 | |
| Time deposits of $100,000 or more | | | 243,130 | | | 268,441 | |
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| Total deposits | | $ | 5,474,710 | | $ | 6,032,686 | |
| Federal funds and repurchase agreements | | | 954,991 | | | 1,336,518 | |
| Short-term debt | | | 18,991 | | | 37,883 | |
| Long-term debt | | | 12,777 | | | 26,543 | |
| Accrued expenses and taxes | | | 45,097 | | | 49,415 | |
| Other liabilities | | | 35,719 | | | 31,825 | |
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| Total liabilities | | $ | 6,542,285 | | $ | 7,514,870 | |
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| Shareholders' Equity | | | | | | | |
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| Common stock | | $ | 27,528 | | $ | 27,528 | |
| Capital surplus | | | 726,366 | | | 726,347 | |
| Retained earnings | | | 250,439 | | | 215,935 | |
| Accumulated other comprehensive income | | | 18,693 | | | 11,999 | |
| Unearned ESOP shares | | | - | | | (1,866) | |
| Treasury stock | | | (223,185) | | | (209,478) | |
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| Total shareholders' equity | | $ | 799,841 | | $ | 770,465 | |
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| Total liabilities and shareholders' equity | | $ | 7,342,126 | | $ | 8,285,335 | |
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| CONSOLIDATED STATEMENTS OF INCOME | UMB Financial Corporation |
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| (all dollars in thousands, except per share data) (unaudited) |
| | Three Months Ended March 31, | |
| Interest Income | 2003 | | 2002 | |
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| Loans | | $ | 35,359 | | $ | 42,553 | |
| Securities: | | | | | | | |
| Taxable Interest | | | 21,441 | | | 29,128 | |
| Tax-exempt interest | | | 6,315 | | | 6,835 | |
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| Total securities income | | | 27,756 | | | 35,963 | |
| Federal funds and resell agreements | | | 417 | | | 1,027 |
| Trading securities | | | 461 | | | 683 | |
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| Total interest income | | $ | 63,993 | | $ | 80,226 | |
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| Interest Expense | | | | | | | |
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| Deposits | | $ | 10,069 | | $ | 17,119 | |
| Federal funds and repurchase agreements | | | 2,746 | | | 4,578 | |
| Short-term debt | | | 48 | | | 419 | |
| Long-term debt | | | 393 | | | 465 | |
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| Total interest expense | | $ | 13,256 | | $ | 22,581 | |
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| Net interest income | | $ | 50,737 | | $ | 57,645 | |
| Provision for loan losses | | | 3,973 | | | 3,106 | |
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| Net interest income after provision | | $ | 46,764 | | $ | 54,539 | |
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| Noninterest Income | | | | | | |
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| Trust and securities processing | | $ | 21,120 | | $ | 25,071 | |
| Trading and investment banking | | | 6,032 | | | 4,679 | |
| Service charges and fees | | | 17,752 | | | 16,436 | |
| Other service charges and fees | | | 3,748 | | | 3,695 | |
| Bankcard fees | | | 7,517 | | | 6,927 | |
| Investment security gains | | | - | | | 2,416 | |
| Other | | | 2,579 | | | 2,868 | |
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| Total noninterest income | | $ | 58,748 | | $ | 62,092 | |
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| Noninterest Expense | | | | | | |
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| Salaries and employee benefits | | $ | 49,894 | | $ | 51,332 | |
| Occupancy, net | | | 5,852 | | | 5,468 | |
| Equipment | | | 10,270 | | | 11,258 | |
| Supplies and services | | | 5,892 | | | 6,260 | |
| Marketing & business development | | | 3,344 | | | 3,215 | |
| Processing fees | | | 4,556 | | | 5,077 | |
| Legal & consulting fees | | | 1,406 | | | 1,384 | |
| Amortization of other intangibles | | | 495 | | | 508 | |
| Other | | | 4,642 | | | 5,157 | |
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| Total noninterest expense | | $ | 86,351 | | $ | 89,659 | |
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| Income before income taxes | | $ | 19,161 | | $ | 26,972 | |
| Income tax provision | | | 4,654 | | | 7,394 | |
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| Net income | | $ | 14,507 | | $ | 19,578 | |
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| Per Share | | | | | | | |
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| Net income- Basic | | $ | 0.66 | | $ | 0.89 | |
| Net income- Diluted | | $ | 0.66 | | $ | 0.88 | |
| Dividends | | $ | 0.20 | | $ | 0.20 | |
| Weighted average shares outstanding | | | 21,919,285 | | | 22,088,912 | |
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Consolidated Statements of
Shareholders' Equity |
UMB Financial Corporation |
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| (all dollars in thousands) (unaudited) |
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Stock | Capital
Surplus | Retained
Earnings | Accumulated
Other
Comprehensive
Income(Loss) | Treasury
Stock | Unearned
ESOP | Total |
| Balance - January 1, 2002 | $ | 27,528 | $ | 726,347 | $ | 200,780 | $ | 22,526 | $ | (206,113) | $ | (2,491) | $ | 768,577 |
| Net income | | - | | - | | 19,578 | | - | | - | | - | | 19,578 |
| Comprehensive income, change in unrealized loss on securities of $18,864, net of tax $6,791 and the reclassification adjustment for gains included in net income of $2,416 net tax of $870 | | - | | - | | - | | (10,527) | | - | | - | | (10,527) |
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| Total comprehensive income | | | | | | | | | | | | | | 9,051 |
| Cash Dividends | | - | | - | | (4,423) | | - | | - | | - | | (4,423) |
| Earned ESOP shares | | - | | - | | - | | - | | - | | 625 | | 625 |
| Purchase of treasury stock | | - | | - | | - | | - | | (3,481) | | - | | (3,481) |
| Sale of treasury stock | | - | | - | | - | | - | | 9 | | - | | 9 |
| Exercise of stock options | | - | | - | | - | | - | | 107 | | - | | 107 |
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| Balance - March 31, 2002 | $ | 27,528 | $ | 726,347 | $ | 215,935 | $ | 11,999 | $ | (209,478) | $ | (1,866) | $ | 770,465 |
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| Balance - January 1, 2003 | $ | 27,528 | $ | 726,368 | $ | 240,295 | $ | 23,678 | $ | (215,069) | $ | - | $ | 802,800 |
| Net income | | - | | - | | 14,507 | | - | | - | | - | | 14,507 |
| Comprehensive income,change in unrealized loss on securities of $7,789, net of tax $2,804 | | - | | - | | - | | (4,985) | | - | | - | | (4,985) |
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| Total comprehensive income | | | | | | | | | | | | | | 9,522 |
| Cash dividends | | - | | - | | (4,363) | | - | | - | | - | | (4,363) |
| Earned ESOP shares | | - | | - | | - | | - | | - | | | - | |
| Purchase of treasury stock | | - | | - | | - | | - | | (8,144) | | - | | (8,144) |
| Sale of treasury stock | | - | | - | | - | | - | | 8 | | - | | 8 |
| Exercise of stock options | | - | | (2) | | - | | - | | 20 | | - | | 18 |
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| Balance - March 31, 2003 | $ | 27,528 | $ | 726,366 | $ | 250,439 | $ | 18,693 | $ | (223,185) | $ | - | $ | 799,841 |
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| Average Balances / Yields and Rates | UMB Financial Corporation |
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| (tax - equivalent basis) |
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| (all dollars in thousands, except per share data) (unaudited) | Three Months Ended March 31, |
| | 2003 | 2002 |
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| Assets | Average
Balance | Average Yield/Rate | Average
Balance | Average Yield/Rate |
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| Loans, net of unearned interest | $ | 2,565,621 | 5.60 | % | $ | 2,747,831 | 6.31 | % |
| Securities: | |
| Taxable | $ | 3,220,011 | 2.70 | | $ | 3,788,288 | 3.12 | |
| Tax-exempt | | 707,144 | 4.26 | | | 665,280 | 6.25 | |
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| Total securities | $ | 3,927,155 | 2.98 | | $ | 4,453,568 | 3.59 | |
| Federal funds and resell agreements | | 134,594 | 1.26 | | | 236,622 | 1.76 | |
| Other earning assets | | 55,129 | 3.42 | | | 64,992 | 4.36 | |
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| Total earning assets | $ | 6,682,499 | 3.95 | | $ | 7,503,013 | 4.53 | |
| Allowance for loan losses | | (38,263) | | | | (35,942) | | |
| Other assets | | 890,490 | | | | 923,199 | | |
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| Total assets | $ | 7,534,726 | | | $ | 8,390,270 | | |
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| Liabilities and Shareholders' Equity |
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| Interest-bearing deposits | $ | 3,721,836 | 1.10 | % | $ | 4,199,465 | 1.65 | % |
| Federal funds and repurchase agreements | | 1,155,773 | 0.96 | | | 1,372,202 | 1.35 | |
| Borrowed funds | | 43,975 | 4.07 | | | 139,155 | 2.58 | |
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| Total interest-bearing liabilities | $ | 4,921,584 | 1.09 | | $ | 5,710,822 | 1.60 | |
| Noninterest-bearing demand deposits | | 1,736,366 | | | | 1,828,310 | | |
| Other liabilities | | 70,041 | | | | 70,560 | | |
| Shareholders' equity | | 806,735 | | | | 780,578 | | |
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| Total liabilities and shareholders' equity | $ | 7,534,726 | | | $ | 8,390,270 | | |
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| Net interest spread | | | 2.86 | % | | | 2.93 | % |
| Net interest margin | | | 3.15 | | | | 3.31 | |
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Selected Financial Data
of Affiliate Banks | UMB Financial Corporation |
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| (all dollars in thousands)(unaudited) | March 31, 2003 |
| Missouri | | Total
Assets | | Loans Net of Unearned Interest | | Total Deposits | | Shareholders' Equity |
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| UMB Bank, n.a. | $ | 6,317,416 | $ | 2,079,325 | $ | 4,797,061 | $ | 545,850 |
| UMB Bank, Warsaw | | 86,470 | | 20,167 | | 64,070 | | 6,110 |
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| Colorado | |
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| UMB Bank Colorado, n. a. | $ | 369,245 | $ | 175,673 | $ | 109,141 | $ | 29,345 |
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| Kansas | |
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| UMB National Bank of America | $ | 534,147 | $ | 143,784 | $ | 395,596 | $ | 75,161 |
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| Nebraska | |
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| UMB Bank Omaha, n.a. | $ | 87,117 | $ | 83,276 | $ | 25,409 | $ | 6,656 |
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| Banking - Related Subsidiaries |
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| UMB Properties, Inc. |
| UMB Community Development Corporation |
| UMB Banc Leasing Corp. |
| UMB U.S.A., n.a. |
| UMB Scout Brokerage 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 |
| UMB Consulting Services, Inc. |
