UMB Financial CorporationNews Release
P.O. Box 419226
Kansas City, MO 64141-6226
816/860-7000
umb.com
//FOR IMMEDIATE RELEASE//
Contact: Jeremy McNeive, 816.860.5088
Investor Relations Contact: Begonya Klumb, 816.860.7906
UMB Financial Corporation Reports Year-Over-Year Earnings Growth For Sixth Consecutive Quarter
Earnings Increase 9.2 Percent Compared to Second Quarter 2005 and 11.5 Percent over the First Half of 2005
Kansas City, Mo. (July 25, 2006) - UMB Financial Corporation (NASDAQ: UMBF), a Kansas City-based multi-bank holding company, announced earnings of $14.9 million or $0.35 per share ($0.35 diluted) for the three months ended June 30, 2006. This is an increase of $1.2 million, or 9.2 percent, compared to the three months ended June 30, 2005 earnings of $13.6 million, or $0.32 per share ($0.31 diluted). This is also a 12.9 percent increase in diluted earnings per share compared to the three months ended June 30, 2005. The increase in earnings compared to 2005 was a result of higher net interest income and higher noninterest income partially offset by higher provision for loan losses and higher noninterest expense.
"Our second quarter earnings demonstrate UMB's continued success in executing on our growth strategies," said Mariner Kemper, Chairman and Chief Executive Officer, UMB Financial Corporation. "While commercial loans continue to drive our growth with a 15.4 percent increase over the same quarter last year, our credit card balances also showed a 9.2 percent growth over the second quarter in 2005. We were also pleased to announce the acquisition of Mountain States Bank in Denver, a significant step in our plan to complement organic growth with strategic acquisitions."
"Our commitment to growth in our fee business was evident in the second quarter. Our Healthcare Services business continues to gain momentum, reporting more than $60 million in bank deposits and mutual fund assets or 111.1 percent growth over the prior year." said Peter deSilva, President and Chief Operating Officer. "In addition, we announced the hiring of Clyde Wendel, a veteran banking and community leader in the Midwest to drive the growth of our Asset Management business. We also launched three new key online platforms -- Web ExchangeSM, ClientLink and the new umb.com. Each will help us retain customers, gain market share and deliver the unparalleled customer experience."
Net Interest Income
Net interest income for the second quarter of 2006 increased $6.4 million compared to the same period in 2005 due to both an increase in earning asset average balances and an increase in net interest margin. Net interest margin was 3.43 percent for the second quarter of 2006 compared to 3.28 percent for the same period in 2005, an increase of 4.6 percent.
Compared to the same quarter a year ago, the primary driver of the 13.6 percent increase in net interest income was a $507 million, or 8.4 percent increase in average earning assets primarily from average loan growth of $448 million, or 14.6 percent. Although net interest spread decreased by 19 basis points as compared to the same period in 2005, net interest margin increased by 15 basis points due to the contribution of noninterest-bearing demand deposits which made up 34.6 percent of average total deposits.
Noninterest Income and Expense
Noninterest income increased $3.2 million, or 5.1 percent, for the three months ended June 30, 2006 compared to the same period in 2005. This increase was primarily attributable to increases in trust and securities processing income as well as bankcard income. These increases were partially offset by a decrease in deposit service charge income. Trust and securities processing income increased by $5.0 million, or 25.2 percent, primarily due to a $1.7 billion increase in net assets in the UMB Scout Funds at June 30, 2006 as compared to June 30, 2005. Additional increases in trust and securities processing income were a result of increases in fund administration and custody fees related to the investment services group segment. The increase in bankcard income was primarily due to higher interchange fee revenue resulting from increased card usage. The decrease in deposit service charges was primarily a result of increased earning credits on compensating balances, as well as volume decreases related to corpora te customers.
Noninterest expense increased by $5.5 million, or 6.1 percent, for the quarter ended June 30, 2006 compared to the same quarter in 2005. The increase was primarily a result of increases in equipment, processing fees and other expense. Other expense was higher due to an increase in operational charge-offs including overdraft fees. Processing fees increased primarily due to shareholder servicing and other administrative fees paid to investment advisors which correlate with the increase in net assets under management in the Scout Funds. Other increases in processing fees were attributable to higher network fees for ATMs and higher fees paid to third party electronic processors. Equipment expense increased due to increased depreciation and amortization expense on computer equipment and software. In the second quarter of 2006, new online products were introduced including, Web ExchangeSM, an online banking service for businesses, ClientLink, a customer relationship management software tool, and an improved umb.com website.
Balance Sheet
Total assets were $7.6 billion at June 30, 2006, as compared to $7.0 billion at June 30, 2005, an increase of $653 million, or 9.4 percent. The increase in actual balances was driven primarily by a $417 million increase in loans. Actual loan balances on June 30, 2006 were $3.6 billion, compared to $3.2 billion on June 30, 2005 as follows:
Loan by Category (in thousands) | June 30, 2006 | June 30, 2005 | Change | Percent Change |
Commercial, financial and agricultural | $1,662,388 | $1,441,047 | $221,341 | 15.4% |
Real estate construction | 52,362 | 48,023 | 4,339 | 9.0% |
Consumer | 977,150 | 944,222 | 32,928 | 3.5% |
Real estate | 892,036 | 734,065 | 157,971 | 21.5% |
Leases | 5,715 | 5,565 | 150 | 2.7% |
Total Loans | $3,589,651 | $3,172,922 | $416,729 | 13.1% |
Average total assets for the three months ended June 30, 2006 were $7.4 billion compared to $6.9 billion for the same period in 2005, an increase of $527 million, or 7.7 percent. The increase in average assets was mostly due to higher average loan balances. Average loans and loans held for sale were $3.5 billion for the second quarter of 2006 compared to $3.1 billion for the same period in 2005, an increase of $448 million, or 14.6 percent. In addition to the increase in loans, the mix of loans to overall earning assets was favorable. Average loans comprised 53.5 percent of the company's earning asset base for the second quarter of 2006 as compared to 50.6 percent for the same quarter in 2005.
Average securities were $2.6 billion for the second quarter of 2006 compared to $2.7 billion for the same period in 2005, a decrease of 5.8 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 repurchase agreements.
Average total deposits increased $477 million, or 9.5 percent, to $5.5 billion for the three months ended June 30, 2006, compared to the same period in 2005.
As of June 30, 2006, UMB had total shareholders' equity of $823 million, as compared to $827 million at June 30, 2005. The total risk-based capital ratio was 16.2 percent at June 30, 2006 as compared to 18.5 percent at June 30, 2005.
On May 30, 2006, the company's common stock was split two-for-one. Stockholders received one share for every share owned. The Board of Directors declared the stock split April 25, 2006 and the record date was May 16, 2006. All share and per share amounts for prior years have been restated to reflect this stock split.
The quality of the company's loan portfolio remained high as nonperforming loans at June 30, 2006 totaled $13.4 million compared to $13.1 million a year earlier. As a percentage of total loans, nonperforming loans decreased to 0.37 percent of loans as of June 30, 2006 compared to 0.41 percent as of June 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 $42.1 million or 1.17 percent of total loans as of June 30, 2006, compared to $39.8 million, or 1.25 percent of total loans as of June 30, 2005.
Year-to-Date
Earnings for the six months ended June 30, 2006 were $28.1 million, or $0.66 per share ($0.65 diluted). This is an increase of $2.9 million, or 11.5 percent, compared to the prior year earnings of $25.2 million, or $0.58 per share ($0.58 diluted).
Net interest income for the year-to-date June 30, 2006 increased $14.3 million, or 15.7 percent, compared to same period in 2005 due to a higher margin and higher volume of earning assets. Net interest margin was 3.33 percent for the year-to-date June 30, 2006 compared to 3.12 percent for the same period in 2005.
Noninterest income decreased $0.7 million, or 0.6 percent, for the six months ended June 30, 2006 compared to the same period in 2005. Trust and securities processing income increased by $7.2 million, or 17.8 percent, primarily from higher advisory fee income related to increases in assets under management within the Scout Funds. Bankcard income was $2.7 million, or 16.7 percent higher than the six months ended June 30, 2005 due to increased activity. These favorable increases were offset by decreases in deposit service charges and gains recognized in the prior year. Deposit service charges were lower primarily due to increases in earnings credits on compensating balances and other decreases in corporate service charge volume. In 2005, a $3.6 million gain was recognized from the sale of employee benefit accounts to Marshall & Ilsley Trust Company, n.a. and $3.8 million of gains were recognized in 2005 on the sale of land and buildings.
Noninterest expense increased $5.2 million, or 2.9 percent, for the year-to-date June 30, 2006 compared to the same period in 2005. Salary expense was $5.4 million, or 5.4 percent, lower for the six months ended June 30, 2006 as compared to the same period in 2005. This decrease is primarily a result of $4.4 million in charges during 2005 related to a voluntary separation plan. Marketing expense was $1.1 million higher, or 16.4 percent, for the six months ended June 30, 2006 as compared to the same period in 2005. The increase was attributable to the difference in timing of deposit and home equity marketing campaigns in 2006 as compared to 2005. Bankcard expense was greater by $1.3 million, or 23.1 percent, for the six months ended June 30, 2006 as compared to the prior year. This increase was mostly due to higher rebate programs to encourage increased usage of the card products.
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 half of the year would have increased approximately 19.1 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.
The company declared its regular quarterly dividend of $0.13 per share to be paid on October 2, 2006, to shareholders of record as of the close of business on September 11, 2006.
The company plans to host a conference call to discuss its second quarter results on July 26, 2006, at 4 p.m. (CST). Interested parties may access the call by dialing U.S. (toll-free) 877-237-8809 or access the following Web link to the live call:http://audioevent.mshow.com/302334 or visit 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 thosecontemplated 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 abilit y 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 and related financial services to both individual and business customers nationwide. Its banking subsidiaries own and operate 140 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 ofBusiness Week's "Web Smart 50" companies in 2005.
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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 | | Six months ended |
| June 30, | | June 30, |
| 2006 | 2005 | | 2006 | 2005 |
| | | | | |
Net interest income after provision | $ 50,434 | $ 46,371 | | $ 99,520 | $ 89,911 |
Noninterest income | 65,709 | 62,534 | | 125,529 | 126,231 |
Noninterest expense | 95,391 | 89,901 | | 186,423 | 181,226 |
Income tax provision | 5,893 | 5,391 | | 10,526 | 9,724 |
| | | | | |
Net Income After Taxes | 14,859 | 13,613 | | 28,100 | 25,192 |
| | | | | |
Adjustments | | | | | |
Noninterest income | | | | | |
Other gains, net | (574) | (1,209) | | (596) | (3,801) |
Gains on sale of employee benefit accounts | - | - | | - | (3,600) |
Noninterest expense | | | | | |
VSP | - | - | | - | 4,400 |
| | | | | |
Total adjustments pre-tax | (574) | (1,209) | | (596) | (3,001) |
Less: Income taxes | (207) | (435) | | (215) | (1,080) |
| | | | | |
After Tax Adjustments to GAAP | (367) | (774) | | (381) | (1,921) |
| | | | | |
Adjusted Net Income | $ 14,492 | $ 12,839 | | $ 27,719 | $ 23,271 |
| | | | | |
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. |
CONSOLIDATED BALANCE SHEETS | | | | UMB Financial Corporation |
(all dollars in thousands) (unaudited) | | | | |
| | June 30, |
Assets | | 2006 | | 2005 |
| | | | |
Loans | $ | 3,589,651 | $ | 3,172,922 |
Allowance for loan losses | | (42,120) | | (39,756) |
Net loans | | 3,547,531 | | 3,133,166 |
Loans held for sale | | 20,061 | | 21,852 |
Investment Securities: | | | | |
Available for sale | | 2,511,014 | | 2,601,500 |
Held to maturity | | 52,046 | | 121,330 |
Federal Reserve Bank stock and other | | 14,903 | | 13,885 |
Trading securities | | 63,785 | | 64,004 |
Total investment securities | | 2,641,748 | | 2,800,719 |
Federal funds and resell agreements | | 560,422 | | 283,780 |
Cash and due from banks | | 447,515 | | 368,354 |
Bank premises and equipment, net | | 236,027 | | 225,156 |
Accrued income | | 52,193 | | 39,146 |
Goodwill on purchased affiliates | | 60,731 | | 59,958 |
Other intangibles | | 6,487 | | 4,488 |
Other assets | | 60,117 | | 43,033 |
Total assets | $ | 7,632,832 | $ | 6,979,652 |
| | | | |
| | | | |
Liabilities | | | | |
Deposits: | | | | |
Noninterest - bearing demand | $ | 2,135,163 | $ | 1,956,022 |
Interest - bearing demand and savings | | 2,443,546 | | 2,314,165 |
Time deposits under $100,000 | | 778,260 | | 594,112 |
Time deposits of $100,000 or more | | 394,867 | | 201,399 |
Total deposits | | 5,751,836 | | 5,065,698 |
Federal funds and repurchase agreements | | 934,109 | | 979,482 |
Short-term debt | | 23,598 | | 23,268 |
Long-term debt | | 37,342 | | 38,538 |
Accrued expenses and taxes | | 39,151 | | 32,569 |
Other liabilities | | 23,860 | | 13,139 |
Total liabilities | | 6,809,896 | | 6,152,694 |
| | | | |
Shareholders' Equity | | | | |
Common stock | | 55,057 | | 27,528 |
Capital surplus | | 698,485 | | 725,682 |
Retained earnings | | 359,868 | | 321,667 |
Accumulated other comprehensive loss | | (37,590) | | (11,711) |
Treasury stock | | (252,884) | | (236,208) |
Total shareholders' equity | | 822,936 | | 826,958 |
Total liabilities and shareholders' equity | $ | 7,632,832 | $ | 6,979,652 |
Consolidated Statements of Income | | | | | | | | UMB Financial Corporation |
(unaudited, dollars in thousands except share and per share data) | | | | | | |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
Interest Income | | 2006 | | 2005 | | 2006 | | 2005 |
Loans | $ | 57,541 | $ | 42,923 | $ | 110,774 | $ | 80,645 |
Securities: | | | | | | | | |
Taxable Interest | | 19,180 | | 14,935 | | 40,932 | | 31,598 |
Tax-exempt interest | | 5,841 | | 4,756 | | 11,525 | | 9,128 |
Total securities income | | 25,021 | | 19,691 | | 52,457 | | 40,726 |
Federal funds and resell agreements | | 5,039 | | 1,360 | | 10,127 | | 2,676 |
Trading securities and other | | 734 | | 633 | | 1,449 | | 1,153 |
Total interest income | | 88,335 | | 64,607 | | 174,807 | | 125,200 |
| | | | | | | | |
Interest Expense | | | | | | | | |
Deposits | | 22,830 | | 10,520 | | 43,592 | | 20,248 |
Federal funds and repurchase agreements | | 11,409 | | 6,345 | | 24,243 | | 12,576 |
Short-term debt | | 171 | | 105 | | 324 | | 174 |
Long-term debt | | 416 | | 516 | | 894 | | 791 |
Total interest expense | | 34,826 | | 17,486 | | 69,053 | | 33,789 |
Net interest income | | 53,509 | | 47,121 | | 105,754 | | 91,411 |
Provision for loan losses | | 3,075 | | 750 | | 6,234 | | 1,500 |
Net interest income after provision for loan losses | | 50,434 | | 46,371 | | 99,520 | | 89,911 |
| | | | | | | | |
Noninterest Income | | | | | | | | |
Trust and securities processing | | 24,990 | | 19,968 | | 47,659 | | 40,466 |
Trading and investment banking | | 4,567 | | 4,739 | | 8,680 | | 9,268 |
Service charges on deposits | | 19,002 | | 21,517 | | 36,609 | | 39,494 |
Insurance fees and commissions | | 1,101 | | 915 | | 2,093 | | 1,743 |
Brokerage fees | | 1,600 | | 1,510 | | 3,117 | | 3,060 |
Bankcard fees | | 9,860 | | 8,492 | | 18,806 | | 16,114 |
Other gains, net | | 574 | | 1,209 | | 596 | | 3,801 |
Gain on sale of employee benefit accounts | | - | | - | | - | | 3,600 |
Gains (loss) on sales of securities available for sale | | 75 | | (34) | | 84 | | (34) |
Other | | 3,940 | | 4,218 | | 7,885 | | 8,719 |
Total noninterest income | | 65,709 | | 62,534 | | 125,529 | | 126,231 |
| | | | | | | | |
Noninterest Expense | | | | | | | | |
Salaries and employee benefits | | 47,796 | | 48,349 | | 95,034 | | 100,410 |
Occupancy, net | | 6,802 | | 6,471 | | 13,356 | | 12,888 |
Equipment | | 12,348 | | 11,252 | | 23,463 | | 21,728 |
Supplies, postage and telephone | | 5,698 | | 5,681 | | 11,473 | | 11,230 |
Marketing and business development | | 4,022 | | 3,607 | | 7,644 | | 6,568 |
Accumulated other comprehensive loss | | 7,245 | | 5,524 | | 13,555 | | 11,087 |
Legal and consulting | | 2,007 | | 1,895 | | 3,656 | | 3,723 |
Bankcard | | 3,519 | | 3,090 | | 6,810 | | 5,532 |
Amortization of other intangibles | | 286 | | 186 | | 504 | | 371 |
Other | | 5,668 | | 3,846 | | 10,928 | | 7,689 |
Total noninterest expense | | 95,391 | | 89,901 | | 186,423 | | 181,226 |
| | | | | | | | |
Income before income taxes | | 20,752 | | 19,004 | | 38,626 | | 34,916 |
Income tax provision | | 5,893 | | 5,391 | | 10,526 | | 9,724 |
Net income | $ | 14,859 | $ | 13,613 | $ | 28,100 | $ | 25,192 |
Per Share Data | | | | | | | | |
Net income- Basic | $ | 0.35 | $ | 0.32 | $ | 0.66 | $ | 0.58 |
Net income- Diluted | | 0.35 | | 0.31 | | 0.65 | | 0.58 |
Dividends | | 0.13 | | 0.11 | | 0.26 | | 0.22 |
Weighted average shares outstanding | | 42,677,639 | | 43,185,187 | | 42,748,188 | | 43,225,203 |
Consolidated Statements of | | | | | | | | | | | | |
Shareholders' Equity | | | | UMB Financial Corporation | | | | | |
(all dollars in thousands) (unaudited) | | | | | | | | | | | | |
| | | | | | | | Accum- | | | | |
| | | | | | | | ulated | | | | |
| | | | | | | | Other | | | | |
| | | | | | | | Compre- | | | | |
| | Common | | Capital | | Retained | | hensive | | Treasury | | |
| | Stock | | Surplus | | Earnings | | Loss | | Stock | | Total |
Balance - January 1, 2005 | $ | 27,528 | $ | 726,595 | $ | 305,986 | $ | (10,619) | $ | (230,308) | $ | 819,182 |
Comprehensive income | | | | | | | | | | | | |
Net income | | - | | - | | 25,192 | | - | | - | | 25,192 |
Change in unrealized losses | | | | | | | | | | | | |
on securities | | - | | - | | - | | (1,092) | | - | | (1,092) |
Total comprehensive income | | | | | | | | | | | | 24,100 |
Cash dividends ($0.22 per share) | | - | | - | | (9,511) | | - | | - | | (9,511) |
Purchase of treasury stock | | - | | - | | - | | - | | (7,480) | | (7,480) |
Issuance of restricted stock | | - | | (1,223) | | | | | | 1,223 | | - |
Recognition of restricted stock | | | | | | | | | | | | |
compensation | | | | 148 | | | | | | 0 | | 148 |
Sale of treasury stock | | - | | 83 | | - | | - | | 82 | | 165 |
Exercise of stock options | | - | | 79 | | - | | - | | 275 | | 354 |
Balance - June 30, 2005 | $ | 27,528 | $ | 725,682 | $ | 321,667 | $ | (11,711) | $ | (236,208) | $ | 826,958 |
| | | | | | | | | | | | |
Balance - January 1, 2006 | $ | 27,528 | $ | 726,204 | $ | 342,675 | $ | (21,550) | $ | (241,394) | $ | 833,463 |
Comprehensive income | | | | | | | | | | | | |
Net income | | - | | - | | 28,100 | | - | | - | | 28,100 |
Change in unrealized losses on | | | | | | | | | | | | |
securities | | - | | - | | - | | (16,040) | | - | | (16,040) |
Total comprehensive income | | | | | | | | | | | | 12,060 |
Cash dividends ($0.26 per share) | | - | | - | | (10,907) | | - | | - | | (10,907) |
Stock split 2 for 1 | | 27,529 | | (27,529) | | | | | | | | - |
Purchase of treasury stock | | - | | - | | - | | - | | (12,616) | | (12,616) |
Issuance of stock awards | | | | (758) | | | | | | 908 | | 150 |
Recognition of equity based compensation | | - | | 428 | | | | | | | | 428 |
Sale of treasury stock | | - | | 117 | | - | | - | | 85 | | 202 |
Exercise of stock options | | - | | 23 | | - | | - | | 133 | | 156 |
Balance - June 30, 2006 | $ | 55,057 | $ | 698,485 | $ | 359,868 | $ | (37,590) | $ | (252,884) | $ | 822,936 |
Average Balances / Yields and Rates | | | | UMB Financial Corporation | |
(tax - equivalent basis) | | | | | | | | |
(all dollars in thousands)(unaudited) | | Six Months Ended June 30, |
| | 2006 | | 2005 |
| | Average | Average | | | Average | Average | |
Assets | | Balance | Yield/Rate | | | Balance | Yield/Rate | |
Loans, net of unearned interest | $ | 3,457,914 | 6.47 | % | $ | 2,964,944 | 5.49 | % |
Securities: | | | | | | | | |
Taxable | | 2,112,942 | 3.91 | | | 2,380,496 | 2.68 | |
Tax-exempt | | 669,443 | 5.05 | | | 598,662 | 4.59 | |
Total securities | | 2,782,385 | 4.18 | | | 2,979,158 | 3.06 | |
Federal funds and resell agreements | | 427,827 | 4.77 | | | 190,985 | 2.83 | |
Other earning assets | | 62,680 | 4.81 | | | 66,785 | 3.58 | |
Total earning assets | | 6,730,806 | 5.40 | | | 6,201,872 | 4.22 | |
Allowance for loan losses | | (40,844) | | | | (40,941) | | |
Other assets | | 878,423 | | | | 862,798 | | |
Total assets | $ | 7,568,385 | | | $ | 7,023,729 | | |
| | | | | | | | |
| | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | |
Interest-bearing deposits | $ | 3,606,346 | 2.44 | % | $ | 3,160,147 | 1.29 | % |
Federal funds and repurchase agreements | | 1,139,005 | 4.29 | | | 1,064,572 | 2.38 | |
Borrowed funds | | 53,011 | 4.63 | | | 45,791 | 4.25 | |
Total interest-bearing liabilities | | 4,798,362 | 2.90 | | | 4,270,510 | 1.60 | |
Noninterest-bearing demand deposits | | 1,885,801 | | | | 1,892,992 | | |
Other liabilities | | 49,382 | | | | 34,022 | | |
Shareholders' equity | | 834,840 | | | | 826,205 | | |
Total liabilities and shareholders' equity | $ | 7,568,385 | | | $ | 7,023,729 | | |
Net interest spread | | | 2.50 | % | | | 2.62 | % |
Net interest margin | | | 3.33 | | | | 3.12 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | Three Months Ended June 30, |
| | 2006 | | 2005 |
| | Average | Average | | | Average | Average | |
Assets | | Balance | Yield/Rate | | | Balance | Yield/Rate | |
Loans, net of unearned interest | $ | 3,512,210 | 6.58 | % | $ | 3,064,017 | 5.63 | % |
Securities: | | | | | | | | |
Taxable | | 1,915,411 | 4.02 | | | 2,130,661 | 2.81 | |
Tax-exempt | | 672,360 | 5.04 | | | 617,022 | 4.60 | |
Total securities | | 2,587,771 | 4.28 | | | 2,747,683 | 3.21 | |
Federal funds and resell agreements | | 400,226 | 5.05 | | | 171,470 | 3.18 | |
Accumulated other comprehensive loss | | 62,772 | 4.85 | | | 72,560 | 3.61 | |
Total earning assets | | 6,562,979 | 5.56 | | | 6,055,730 | 4.44 | |
Allowance for loan losses | | (41,401) | | | | (40,403) | | |
Other assets | | 893,992 | | | | 873,155 | | |
Total assets | $ | 7,415,570 | | | $ | 6,888,482 | | |
| | | | | | | | |
| | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | |
Interest-bearing deposits | $ | 3,581,602 | 2.56 | % | $ | 3,094,391 | 1.36 | % |
Federal funds and repurchase agreements | | 1,007,869 | 4.54 | | | 964,728 | 2.64 | |
Borrowed funds | | 52,685 | 4.47 | | | 55,829 | 4.46 | |
Total interest-bearing liabilities | | 4,642,156 | 3.01 | | | 4,114,948 | 1.70 | |
Noninterest-bearing demand deposits | | 1,896,092 | | | | 1,906,168 | | |
Other liabilities | | 43,521 | | | | 38,744 | | |
Shareholders' equity | | 833,801 | | | | 828,622 | | |
Total liabilities and shareholders' equity | $ | 7,415,570 | | | $ | 6,888,482 | | |
Net interest spread | | | 2.55 | % | | | 2.74 | % |
Net interest margin | | | 3.43 | | | | 3.28 | |
SECOND QUARTER 2006 | | | | | | | |
FINANCIAL HIGHLIGHTS | | | | | | | UMB Financial Corporation |
(all dollars in thousands, except per share data) (unaudited) | | | | | | | |
| | | | | | | |
Six Months Ended June 30, | | | 2006 | | | 2005 | |
Net interest income | | $ | 105,754 | | $ | 91,411 | |
Provision for loan losses | | | 6,234 | | | 1,500 | |
Noninterest income | | | 125,529 | | | 126,231 | |
Noninterest expense | | | 186,423 | | | 181,226 | |
Income before income taxes | | | 38,626 | | | 34,916 | |
Net income | | | 28,100 | | | 25,192 | |
Net income per share - Basic | | | 0.66 | | | 0.58 | |
Net income per share - Diluted | | | 0.65 | | | 0.58 | |
Return on average assets | | | 0.75 | % | | 0.72 | % |
Return on average equity | | | 6.79 | % | | 6.15 | % |
| | | | | | | |
Three Months Ended June 30 | | | | | | | |
Net interest income | | $ | 53,509 | | $ | 47,121 | |
Provision for loan losses | | | 3,075 | | | 750 | |
Noninterest income | | | 65,709 | | | 62,534 | |
Noninterest expense | | | 95,391 | | | 89,901 | |
Income before income taxes | | | 20,752 | | | 19,004 | |
Net income | | | 14,859 | | | 13,613 | |
Net income per share - Basic | | | 0.35 | | | 0.32 | |
Net income per share - Diluted | | | 0.35 | | | 0.31 | |
Return on average assets | | | 0.80 | % | | 0.79 | % |
Return on average equity | | | 7.15 | % | | 6.59 | % |
| | | | | | | |
At June 30 | | | | | | | |
Assets | | $ | 7,632,832 | | $ | 6,979,652 | |
Loans, net of unearned interest | | | 3,589,651 | | | 3,172,922 | |
Securities | | | 2,641,748 | | | 2,800,719 | |
Deposits | | | 5,751,836 | | | 5,065,698 | |
Shareholders' equity | | | 822,936 | | | 826,958 | |
Book value per share | | | 19.28 | | | 19.18 | |
Market price per share | | | 33.34 | | | 28.52 | |
Equity to assets | | | 10.78 | % | | 11.85 | % |
Allowance for loan losses | | $ | 42,120 | | $ | 39,756 | |
As a % of loans | | | 1.17 | % | | 1.25 | % |
Nonaccrual and restructured loans | | $ | 8,606 | | $ | 7,146 | |
As a % of loans | | | 0.24 | % | | 0.23 | % |
Loans over 90 days past due | | $ | 4,773 | | $ | 5,945 | |
As a % of loans | | | 0.13 | % | | 0.19 | % |
Accumulated other comprehensive loss | | $ | 40 | | $ | - | |
| | | | | | | |
Common shares outstanding | | | 42,684,847 | | | 43,117,292 | |
| | | | | | | |
Average Balances | | | | | | | |
Six Months Ended June 30 | | | | | | | |
Assets | | $ | 7,568,385 | | $ | 7,023,729 | |
Loans and loans held for sale, net of unearned interest | | | 3,457,914 | | | 2,964,944 | |
Securities | | | 2,782,385 | | | 2,979,158 | |
Deposits | | | 5,492,147 | | | 5,053,139 | |
Shareholders' equity | | | 834,840 | | | 826,205 | |
| | | | | | | |
| | | | | | | |
Selected Financial Data | | | | | | | | |
of Affiliate Banks | | | | | | | | UMB Financial Corporation |
(all dollars in thousands)(unaudited) | | June 30, 2006 |
| | | | Loans | | | | |
| | | | Net of | | | | |
| | Total | | Unearned | | Total | | Shareholder's |
Missouri | | Assets | | Interest | | Deposits | | Equity |
UMB Bank, n.a. | $ | 6,535,334 | $ | 3,003,007 | $ | 5,091,140 | $ | 539,480 |
UMB Bank Warsaw, N.A. | | 83,381 | | 32,498 | | 61,788 | | 5,656 |
| | | | | | | | |
Colorado | | | | | | | | |
UMB Bank Colorado, n. a. | | 525,343 | | 344,661 | | 387,296 | | 38,661 |
| | | | | | | | |
Kansas | | | | | | | | |
UMB National Bank of America | | 528,561 | | 198,457 | | 389,343 | | 75,352 |
| | | | | | | | |
Arizona | | | | | | | | |
UMB Bank Arizona, n.a. | | 19,057 | | 18,691 | | 1,921 | | 9,733 |
| | | | | | | | |
Banking - Related Subsidiaries | | | | | | | | |
UMB Community Development Corporation | | | | | | | | |
UMB Banc Leasing Corp. | | | | | | | | |
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, 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 | | | | | | | | |
