UMB Financial Corporation |
News Release |
1010 Grand Boulevard Kansas City, MO 64106 816.860.7000 umb.com |
//FOR IMMEDIATE RELEASE//
Contact: Mandie Nelson, 816.860.5088
Investor Relations Contact: Begonya Klumb, 816.860.7906
UMB Financial Corporation Reports Third Quarter Earnings of $21.5 million
Selected financial highlights | ||
· | Declared $0.15 quarterly dividend, representing the 6th | |
dividend increase since October, 2003 | ||
· | Net interest margin increased 5 basis points to 3.48 percent | |
· | Nonperforming loans decreased to 0.14 percent of total loans | |
· | Net charge-offs decreased to 0.19 percent of average loans | |
· | Total deposits increased 7.0 percent |
Kansas City, Mo.(October 23, 2007)– UMB Financial Corporation (NASDAQ: UMBF), a multi-bank holding company, announced earnings of $21.5 million or $0.52 per share ($0.51 diluted) for the three-month period ended September 30, 2007. This is an increase of $5.7 million, or 35.7 percent, compared to third quarter 2006 earnings of $15.9 million or $0.37 per share ($0.37 diluted). Revenue was higher due to a 19.4 percent increase in noninterest income and a 5.8 percent increase in net interest income. These revenue increases were partially offset by a 5.3 percent increase in noninterest expense.
“This quarter’s results were driven by double digit noninterest income growth, as well as increasing net interest income primarily due to loan growth and margin expansion,” commented Mariner Kemper, Chairman and CEO of UMB Financial Corporation. “As always, this growth was achieved without compromising our tradition of strong liquidity, and asset quality. While most in the industry are struggling with credit quality, our loan net charge offs decreased to just 0.19 percent of average loans, and our nonperforming loans represented just 0.14 percent of total loans. The recent challenging times have validated our time-tested model and heritage of quality, liquidity and safety and soundness.”
Net Interest Income
Net interest income for the third quarter of 2007 increased $3.2 million, or 5.8 percent, compared to the same period in 2006 due primarily to higher average earning assets while increasing net interest margin. Average earning assets increased by $322.1 million, or 4.8 percent, as compared to the third quarter of 2006. Most of this increase was due to a $284.0 million, or 7.8 percent, increase in average loans.
Net interest margin increased 5 basis points to 3.48 percent for the three months ended September 30, 2007 as compared to the same quarter in 2006. Net interest spread increased by 8 basis points
from the three months ended September 30, 2006, which was offset by a 3 basis point reduction in the benefit from interest free funds.
Noninterest Income and Expense
“Our fee based businesses continue to drive our success,” said Peter deSilva, President and Chief Operating Officer. “Noninterest income, which represented 57.0 percent of our revenue, grew for the tenth consecutive quarter over the prior year. This growth was driven by trust and securities processing income from our Asset Management and Fund Services divisions, as well as from the sale of our securities transfer product. A continued success story within Asset Management is our Corporate Trust division, which ranked fourth in Thomson Financial's third quarter ranking by number of transactions of municipal trusteeships and paying agencies combined. With dominant market shares of 56 percent in Missouri and 67 percent in Kansas, and 34 percent growth in assets under administration, Corporate Trust remains a key area of focus for the company.”
Noninterest income increased $12.5 million, or 19.4 percent, for the three months ended September 30, 2007 compared to the same period in 2006. Trust and securities processing income increased $3.9 million, or 15.4 percent, for the three months ended September 30, 2007 compared to the same period in 2006. This increase was primarily due to a $1.0 billion, or 22.0 percent, increase in total assets under management in the UMB Scout Funds at September 30, 2007 as compared to September 30, 2006. Deposit service charges were $1.8 million, or 9.6 percent, higher in the third quarter 2007 than in the same period in 2006. A $6.5 million net gain was recognized on the sale of the securities transfer product, which was completed during the quarter.
Noninterest expense increased $5.1 million, or 5.3 percent, for the three months ended September 30, 2007 compared to the same period in 2006. Salary expense increased by $2.5 million, or 5.2 percent, mostly due to higher base employee base salaries, higher commissions and bonuses, and higher cost of benefits. Occupancy expense increased $0.7 million, or 10.6 percent, mainly from increased repair and maintenance costs on existing facilities and additional facility security costs. Equipment expense increased by $0.8 million, or 6.0 percent, mostly due to amortization and maintenance costs related to software and associated equipment.
Balance Sheet and Margin
“Loan growth for the quarter reflected increases in our commercial, credit cards and HELOC portfolios, offset by a decrease in indirect loan balances. We made the strategic decision to allow our indirect portfolio to run-off as part of our ongoing strategy to enhance earning asset yield,”said Mike Hagedorn, Chief Financial Officer. “We continued to increase margin year over year, partly due toloan growth and higher earning asset yields from both our investment and loan portfolios. Contributing to the margin increase this quarter was a more moderate increase in the cost of our interest-bearing liabilities, as the recent interest rate reduction lowered the cost of our short-term funding. Going forward, margin improvement may be more moderate as our earning assets re-price in a lower rate environment.”
Average total assets for the three months ended September 30, 2007 were $7.8 billion compared to $7.5 billion for the same period in 2006, an increase of $390.0 million, or 5.2 percent. Average earning assets increased by $322.1 million, or 4.8 percent. In addition to the increase in earning assets, the mix of higher yielding loans to overall earning assets was favorable. Average loans comprised 55.9 percent of the company’s earning asset base for 2007 as compared to 54.4 percent for 2006.
For the three months ended September 30, 2007, average loans were $3.9 billion compared to $3.6 billion for the same period in 2006, an increase of 7.8 percent. Actual loan balances on
September 30, 2007 were $4.0 billion, compared to $3.8 billion on September 30, 2006. These balances were as follows:
September 30, | September 30, | Percent | ||||||
Loans by Category (in thousands) | 2007 | 2006 | Change | Change | ||||
Commercial, financial and agricultural | $1,801,190 | $1,659,939 | $141,251 | 8.5% | ||||
Real estate construction | 64,320 | 72,198 | (7,878) | (10.9)% | ||||
Consumer | 863,320 | 999,183 | (135,863) | (13.6)% | ||||
Real estate | 1,218,869 | 1,060,893 | 157,976 | 14.9% | ||||
Leases | 6,105 | 5,786 | 319 | 5.5% | ||||
Loans before loans held for sale | 3,953,804 | 3,797,999 | 155,805 | 4.1% | ||||
Loans held for sale | 12,987 | 17,658 | (4,671) | (26.5)% | ||||
Total loans and loans held for sale | $3,966,791 | $3,815,657 | $151,134 | 4.0% | ||||
Nonperforming loans at September 30, 2007 totaled $5.7 million compared to $8.1 million a year earlier, a 29.7 percent reduction. As a percentage of total loans, nonperforming loans were 0.14 percent of loans as of September 30, 2007 and 0.21 percent at September 30, 2006.
Nonperforming loans are defined as nonaccrual loans and restructured loans. The company’s allowance for loan losses totaled $46.2 million, or 1.17 percent of total loans as of September 30, 2007 compared to $43.5 million, or 1.15 percent of total loans as of September 30, 2006.
For the three months ended September 30, 2007, average securities, including trading securities and other, totaled $2.7 billion. This is an increase of $78.9 million, or 3.0 percent from the same period in 2006. Average federal funds sold and resell agreements for the third quarter decreased $40.8 million, or 10.9 percent over the same period in 2006 to $331.4 million.
Average total deposits increased $269.3 million, or 5.0 percent, to $5.7 billion for the three months ended September 30, 2007, compared to the same period in 2006. The increase in deposits came primarily from our public funds, mutual fund processing and treasury management businesses. Average time deposit accounts increased by $107.7 million, or 9.2 percent, for the three months ended September 30, 2007 as compared to 2006. Average money market accounts increased by $126.1 million, or 12.2 percent, in 2007 as compared to 2006. Total deposits as of September 30, 2007 were $5.9 billion, compared to $5.5 billion at September 30, 2006, a 7.0 percent increase.
As of September 30, 2007, UMB had total shareholders’ equity of $884.3 million, a 3.5 percent increase from the prior year.
Year-to-Date
Earnings for the nine months ended September 30, 2007 were $58.9 million or $1.41 per share ($1.40 diluted). This is an increase of $14.9 million, or 34.0 percent, compared to the prior year earnings of $44.0 million or $1.03 per share ($1.03 diluted).
Net interest income for the year-to-date September 30, 2007 increased $11.2 million, or 7.0 percent, compared to the same period in 2006 due primarily to higher average earning assets and rates. Net interest margin increased to 3.41 percent for year-to-date September 30, 2007 as compared to 3.36 percent for the same period in 2006.
Noninterest income increased $26.0 million, or 13.7 percent, for year-to-date September 30, 2007 as compared to the same period in 2006. The increase was primarily attributable to higher trust and securities processing income, deposit service charges, trading and investment income and brokerage fees. A $6.5 million net gain was recognized on the sale of the securities transfer product, which was completed during the third quarter. Trust and securities processing income increased $12.4 million, or 17.1 percent, for year-to-date September 30, 2007 as compared to the same period in 2006. Deposit service charges were $4.7 million, or 8.6 percent, higher for the nine months ended September 30, 2007 than the same period in 2006 due mostly to greater individual overdraft and return item charges as well as pricing changes implemented at the beginning of the year.
Noninterest expense increased $14.5 million, or 5.1 percent, for the nine months ended September 30, 2007 compared to the same period in 2006. Salary expense increased by $8.6 million, or 6.0 percent, mostly due to higher employee base salaries, higher commissions and bonuses and higher cost of benefits. Occupancy expense increased $2.1 million, or 10.5 percent, mainly from increased repair and maintenance costs of existing facilities and increased facility security expense. Equipment expense increased by $3.7 million, or 10.3 percent, for year-to-date September 30, 2007 as compared to the same period in 2006 due mostly to higher amortization and maintenance costs related to software and associated equipment.
The company plans to host a conference call to discuss its third quarter results on October 24, 2007, at 8:30 a.m. (CST). Interested parties may access the call by dialing U.S./Canada (toll-free) 800-218-9073 or access the following Web link at least 10 minutes before the call begins: http://w.on24.com/r.htm?e=95042&s=1&k=801EE2F28B754C56A4BBA56E3AEA338F or visit www.umb.com, investor relations, to access the link to the live call.
A replay of the conference call may be heard until November 7, 2007, by calling U.S./Canada (toll-free) 800-405-2236 or 303-590-3000. The replay pass code required for playback is conference ID 11098473#. The call replay may also be accessed via the company's Web site, www.umb.com, by visiting the investor relations’ area.
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, 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.
About UMB:
UMB Financial Corporation (NASDAQ: UMBF) is a multi-bank holding company headquartered in Kansas City, Mo., offering complete banking, asset management, health spending solutions and related financial services to both individual and business customers nationwide. Its banking subsidiaries own and operate 136 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, Wisc., single-purpose companies that deal with brokerage services and insurance and a registered investment advisor that manages the company’s proprietary mutual funds.
UMB | ||||||||
Financial | ||||||||
CONSOLIDATED BALANCE SHEETS | Corporation | |||||||
(all dollars in thousands) (unaudited) | ||||||||
September 30, | ||||||||
Assets | 2007 | 2006 | ||||||
Loans | $ | 3,953,804 | $ | 3,797,999 | ||||
Allowance for loan losses | (46,174) | (43,538) | ||||||
Net loans | 3,907,630 | 3,754,461 | ||||||
Loans held for sale | 12,987 | 17,658 | ||||||
Investment Securities: | ||||||||
Available for sale | 2,709,973 | 2,636,811 | ||||||
Held to maturity | 39,803 | 51,606 | ||||||
Federal Reserve Bank stock and other | 19,926 | 15,158 | ||||||
Trading securities | 60,652 | 48,160 | ||||||
Total investment securities | 2,830,354 | 2,751,735 | ||||||
Federal funds and resell agreements | 305,553 | 280,910 | ||||||
Cash and due from banks | 499,535 | 408,094 | ||||||
Bank premises and equipment, net | 237,283 | 241,290 | ||||||
Accrued income | 60,845 | 56,300 | ||||||
Goodwill on purchased affiliates | 94,512 | 96,017 | ||||||
Other intangibles | 17,181 | 19,136 | ||||||
Other assets | 54,180 | 47,156 | ||||||
Total assets | $ | 8,020,060 | $ | 7,672,757 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest - bearing demand | $ | 1,755,443 | $ | 1,900,220 | ||||
Interest - bearing demand and savings | 2,853,488 | 2,493,922 | ||||||
Time deposits under $100,000 | 820,701 | 797,068 | ||||||
Time deposits of $100,000 or more | 491,412 | 344,716 | ||||||
Total deposits | 5,921,044 | 5,535,926 | ||||||
Federal funds and repurchase agreements | 1,060,585 | 1,148,677 | ||||||
Short-term debt | 16,468 | 22,644 | ||||||
Long-term debt | 36,693 | 36,798 |
Accrued expenses and taxes | 63,612 | 46,039 | ||||||
Other liabilities | 37,349 | 27,834 | ||||||
Total liabilities | 7,135,751 | 6,817,918 | ||||||
Shareholders' Equity | ||||||||
Common stock | 55,057 | 55,057 | ||||||
Capital surplus | 701,620 | 699,029 | ||||||
Retained earnings | 421,729 | 370,184 | ||||||
Accumulated other comprehensive income (loss) | (1,417) | (15,765) | ||||||
Treasury stock | (292,680) | (253,666) | ||||||
Total shareholders' equity | 884,309 | 854,839 | ||||||
Total liabilities and shareholders' equity | $ | 8,020,060 | $ | 7,672,757 | ||||
UMB | ||||||||||||
Financial | ||||||||||||
Consolidated Statements of Income | Corporation | |||||||||||
(unaudited, dollars in thousands except share and per share | ||||||||||||
data) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
Interest Income | 2007 | 2006 | 2007 | 2006 | ||||||||
Loans | $ | 68,972 $ | 62,157 | $ | 203,385 $ | 172,931 | ||||||
Securities: | ||||||||||||
Taxable Interest | 23,251 | 21,004 | 71,200 | 61,937 | ||||||||
Tax-exempt interest | 6,490 | 5,864 | 18,642 | 17,388 | ||||||||
Total securities income | 29,741 | 26,868 | 89,842 | 79,325 | ||||||||
Federal funds and resell agreements | 4,326 | 5,025 | 15,658 | 15,152 | ||||||||
Trading securities and other | 561 | 579 | 1,824 | 2,029 | ||||||||
Total interest income | 103,600 | 94,629 | 310,709 | 269,437 | ||||||||
Interest Expense | ||||||||||||
Deposits | 31,412 | 25,942 | 89,191 | 69,533 | ||||||||
Federal funds and repurchase agreements | 13,647 | 13,443 | 47,987 | 37,686 | ||||||||
Short-term debt | 161 | 105 | 441 | 429 | ||||||||
Long-term debt | 373 | 311 | 1,265 | 1,206 | ||||||||
Total interest expense | 45,593 | 39,801 | 138,884 | 108,854 | ||||||||
Net interest income | 58,007 | 54,828 | 171,825 | 160,583 | ||||||||
Provision for loan losses | 2,833 | 1,500 | 6,333 | 7,734 | ||||||||
Net interest income after provision for | ||||||||||||
loan losses | 55,174 | 53,328 | 165,492 | 152,849 | ||||||||
Noninterest Income | ||||||||||||||||
Trust and securities processing | 28,889 | 25,038 | 85,131 | 72,698 | ||||||||||||
Trading and investment banking | 4,353 | 4,757 | 14,747 | 13,437 | ||||||||||||
Service charges on deposits | 20,361 | 18,581 | 59,936 | 55,191 | ||||||||||||
Insurance fees and commisions | 913 | 1,056 | 2,544 | 3,149 | ||||||||||||
Brokerage fees | 1,959 | 1,508 | 6,024 | 4,626 | ||||||||||||
Bankcard fees | 10,135 | 9,945 | 29,431 | 28,750 | ||||||||||||
Other gains, net | 96 | (188) | 87 | 408 | ||||||||||||
Gain on sale of securities transfer, net | 6,490 | - | 6,490 | - | ||||||||||||
Gains (losses) on sales of securities | ||||||||||||||||
available for sale | 1 | 37 | 3 | 120 | ||||||||||||
Other | 3,700 | 3,669 | 11,519 | 11,553 | ||||||||||||
Total noninterest income | 76,897 | 64,403 | 215,912 | 189,932 | ||||||||||||
Noninterest Expense | ||||||||||||||||
Salaries and employee benefits | 51,439 | 48,894 | 152,538 | 143,928 | ||||||||||||
Occupancy, net | 7,667 | 6,932 | 22,421 | 20,288 | ||||||||||||
Equipment | 13,385 | 12,623 | 39,810 | 36,086 | ||||||||||||
Supplies, postage and telephone | 5,814 | 5,514 | 17,327 | 16,988 | ||||||||||||
Marketing and business development | 3,880 | 4,001 | 11,574 | 11,645 | ||||||||||||
Processing fees | 7,491 | 7,137 | 21,268 | 20,692 | ||||||||||||
Legal and consulting | 2,329 | 2,080 | 5,795 | 5,736 | ||||||||||||
Bankcard | 2,648 | 3,410 | 8,084 | 10,220 | ||||||||||||
Amortization of other intangibles | 754 | 365 | 2,222 | 868 | ||||||||||||
Other | 5,992 | 5,309 | 16,107 | 16,238 | ||||||||||||
Total noninterest expense | 101,399 | 96,265 | 297,146 | 282,689 | ||||||||||||
Income before income taxes | 30,672 | 21,466 | 84,258 | 60,092 | ||||||||||||
Income tax provision | 9,145 | 5,601 | 25,344 | 16,127 | ||||||||||||
Net income | $ | 21,527 | $ | 15,865 | $ | 58,914 | $ | 43,965 | ||||||||
Per Share Data | ||||||||||||||||
Net income- Basic | $ | 0.52 | $ | 0.37 | $ | 1.41 | $ | 1.03 | ||||||||
Net income- Diluted | 0.51 | 0.37 | 1.40 | 1.03 | ||||||||||||
Dividends | 0.14 | 0.13 | 0.42 | 0.39 | ||||||||||||
Weighted average shares outstanding | 41,687,476 | 42,531,525 | 41,857,927 | 42,675,173 | ||||||||||||
UMB FINANCIAL CORPORATION | ||||||||||||||||||||||||||
STATEMENTS OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||
(unaudited, dollars in thousands) | ||||||||||||||||||||||||||
Accum- | ||||||||||||||||||||||||||
Ulated | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Unearned | Compre- | |||||||||||||||||||||||||
Common | Capital | Compen- | Retained | hensive | Treasury | |||||||||||||||||||||
Stock | Surplus | sation | Earnings | Income | Stock | Total | ||||||||||||||||||||
Balance - January 1, 2006 | $ | 27,528 | $ | 728,108 | $ | (1,904) | $ | 342,675 | $ | (21,550) | $ (241,394) | $ | 833,463 | |||||||||||||
Adoption of SFAS 123( R) | - | (1,904) | 1,904 | - | - | - | - | |||||||||||||||||||
Comprehensive income/(loss) | ||||||||||||||||||||||||||
Net income | - | - | - | 43,965 | - | - | 43,965 | |||||||||||||||||||
Change in unrealized losses on | ||||||||||||||||||||||||||
securities | - | - | - | - | 5,785 | - | 5,785 | |||||||||||||||||||
Total comprehensive income | 49,750 | |||||||||||||||||||||||||
Cash dividends ($0.39 per | ||||||||||||||||||||||||||
share) | - | - | - | (16,456) | - | - | (16,456) | |||||||||||||||||||
Stock split two for one | 27,529 | (27,529) | - | |||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (13,813) | (13,813) | |||||||||||||||||||
Issuance of stock awards | - | (938) | 1,088 | 150 | ||||||||||||||||||||||
Recognition of restricted stock | ||||||||||||||||||||||||||
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 | |||||||||||||
Balance - January 1, 2007 | $ | 55,057 | $ | 699,794 | $ | - | $ | 380,464 | $ | (17,259) | $ (269,181) | $ | 848,875 | |||||||||||||
Comprehensive income | ||||||||||||||||||||||||||
Net income | - | - | - | 58,914 | - | - | 58,914 | |||||||||||||||||||
Change in unrealized losses on | ||||||||||||||||||||||||||
securities | - | - | - | - | 15,842 | - | 15,842 | |||||||||||||||||||
Total comprehensive income | 74,756 | |||||||||||||||||||||||||
Cash dividends ($0.42 per | - | (17,649) |
share) | - | - | - | - | (17,649) | |||||||||||||
Purchase of treasury stock | - | - | - | - | - | (25,223) | (25,223) | |||||||||||
Issuance of stock awards | (928) | - | 1,065 | 137 | ||||||||||||||
Recognition of stock based | ||||||||||||||||||
compensation | - | 2,299 | - | 2,299 | ||||||||||||||
Sale of treasury stock | - | 232 | - | - | - | 138 | 370 | |||||||||||
Exercise of stock options | - | 223 | - | - | - | 521 | 744 | |||||||||||
Balance - September 30, 2007 | $ | 55,057 $ | 701,620 $ | - | $ 421,729 $ | (1,417) | $ (292,680) | $ | 884,309 | |||||||||
See Notes to Condensed Consolidated Financial Statements. |
Average Balances / Yields and Rates | UMB Financial Corporation | |||||||||||||||
(tax - equivalent basis) | ||||||||||||||||
(all dollars in thousands)(unaudited) | Nine Months Ended September 30, | |||||||||||||||
2007 | 2006 | |||||||||||||||
Average | Average | Average | Average | |||||||||||||
Assets | Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||
Loans, net of unearned interest | $ | 3,897,257 | 6.98 | % | $ | 3,513,171 | 6.59 | % | ||||||||
Securities: | ||||||||||||||||
Taxable | 2,019,521 | 4.71 | 2,051,522 | 4.04 | ||||||||||||
Tax-exempt | 716,106 | 5.11 | 675,102 | 5.01 | ||||||||||||
Total securities | 2,735,627 | 4.82 | 2,726,624 | 4.28 | ||||||||||||
Federal funds and resell agreements | 392,659 | 5.33 | 409,080 | 4.95 | ||||||||||||
Trading securities and other | 62,397 | 4.06 | 57,910 | 4.81 | ||||||||||||
Total earning assets | 7,087,940 | 6.03 | 6,706,785 | 5.53 | ||||||||||||
Allowance for loan losses | (45,289) | (41,524) | ||||||||||||||
Other assets | 929,192 | 863,284 | ||||||||||||||
Total assets | $ | 7,971,843 | $ | 7,528,545 | ||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||
Interest-bearing deposits | $ | 3,884,511 | 3.07 | % | $ | 3,612,891 | 2.57 | % | ||||||||
Federal funds and repurchase agreements | 1,320,837 | 4.86 | 1,122,993 | 4.49 | ||||||||||||
Borrowed funds | 4.64 | 50,549 | 4.32 | |||||||||||||
49,147 |
49,147 | ||||||||||||||||
Total interest-bearing liabilities | 5,254,495 | 3.53 | 4,786,433 | 3.04 | ||||||||||||
Noninterest-bearing demand deposits | 1,769,917 | 1,851,588 | ||||||||||||||
Other liabilities | 80,368 | 52,041 | ||||||||||||||
Shareholders' equity | 867,063 | 838,483 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 7,971,843 | $ | 7,528,545 | ||||||||||||
Net interest spread | 2.50 | % | 2.49 | % | ||||||||||||
Net interest margin | 3.41 | 3.36 | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||||
2007 | 2006 | |||||||||||||||
Average | Average | Average | Average | |||||||||||||
Assets | Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||
Loans, net of unearned interest | $ | 3,905,847 | 7.01 | % | $ | 3,621,883 | 6.81 | % | ||||||||
Securities: | ||||||||||||||||
Taxable | 1,948,907 | 4.73 | 1,930,684 | 4.32 | ||||||||||||
Tax-exempt | 736,715 | 5.21 | 686,237 | 4.95 | ||||||||||||
Total securities | 2,685,622 | 4.86 | 2,616,921 | 4.48 | ||||||||||||
Federal funds and resell agreements | 331,443 | 5.18 | 372,198 | 5.36 | ||||||||||||
Trading securities and other | 58,750 | 3.98 | 48,525 | 4.78 | ||||||||||||
Total earning assets | 6,981,662 | 6.07 | 6,659,527 | 5.80 | ||||||||||||
Allowance for loan losses | (45,913) | (42,863) | ||||||||||||||
Other assets | 904,440 | 833,500 | ||||||||||||||
Total assets | $ | 7,840,189 | $ | 7,450,164 | ||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||
Interest-bearing deposits | $ | 3,947,820 | 3.16 | % | $ | 3,625,766 | 2.84 | % | ||||||||
Federal funds and repurchase agreements | 1,159,531 | 4.67 | 1,091,492 | 4.89 | ||||||||||||
Borrowed funds | 49,981 | 4.24 | 45,706 | 3.61 | ||||||||||||
Total interest-bearing liabilities | 5,157,332 | 3.51 | 4,762,964 | 3.32 | ||||||||||||
Noninterest-bearing demand deposits | 1,731,499 | 1,784,278 | ||||||||||||||
Other liabilities | 71,081 | 57,270 | ||||||||||||||
Shareholders' equity | 880,277 | 845,652 | ||||||||||||||
Total liabilities and shareholders' equity | $ | $ | 7,450,164 | |||||||||||||
7,840,189 | ||||||||||
Net interest spread | 2.56 | % | 2.48 | % | ||||||
Net interest margin | 3.48 | 3.43 |
THIRD QUARTER 2007 | ||||||||||
UMB | ||||||||||
Financial | ||||||||||
FINANCIAL HIGHLIGHTS | Corporation | |||||||||
(all dollars in thousands, except per share data) (unaudited) | ||||||||||
Nine Months Ended September 30, | 2007 | 2006 | ||||||||
Net interest income | $ 171,825 | $ | 160,583 | |||||||
Provision for loan losses | 6,333 | 7,734 | ||||||||
Noninterest income | 215,912 | 189,932 | ||||||||
Noninterest expense | 297,146 | 282,689 | ||||||||
Income before income taxes | 84,258 | 60,092 | ||||||||
Net income | 58,914 | 43,965 | ||||||||
Net income per share - Basic | 1.41 | 1.03 | ||||||||
Net income per share - Diluted | 1.40 | 1.03 | ||||||||
Return on average assets | 0.99 | % | 0.78 | % | ||||||
Return on average equity | 9.08 | % | 7.01 | % | ||||||
Three Months September 30 | ||||||||||
Net interest income | $ 58,007 | $ | 54,828 | |||||||
Provision for loan losses | 2,833 | 1,500 | ||||||||
Noninterest income | 76,897 | 64,403 | ||||||||
Noninterest expense | 101,399 | 96,265 | ||||||||
Income before income taxes | 30,672 | 21,466 | ||||||||
Net income | 21,527 | 15,865 | ||||||||
Net income per share - Basic | 0.52 | 0.37 | ||||||||
Net income per share - Diluted | 0.51 | 0.37 | ||||||||
Return on average assets | 1.09 | % | 0.84 | % | ||||||
Return on average equity | 9.70 | % | 7.44 | % | ||||||
At September 30 | ||||||||||
Assets | $ 8,020,060 | $ | 7,672,757 | |||||||
Loans, net of unearned interest | 3,953,804 | 3,797,999 | ||||||||
Securities | 2,830,354 | 2,751,735 | ||||||||
Deposits | 5,921,044 | 5,535,926 | ||||||||
Shareholders' equity | 884,309 | 854,839 | ||||||||
Book value per share | 21.18 | 20.03 | ||||||||
Market price per share | 42.86 | 36.57 | ||||||||
Equity to assets | 11.03 | % | 11.14 | % | ||||||
Allowance for loan losses | $ 46,174 | $ | 43,538 | |||||||
As a % of loans | 1.17 | % | 1.15 | % | ||||||
Nonaccrual and restructured loans | $ 5,709 | $ | 8,121 | |||||||
As a % of loans | 0.14 | % | 0.21 | % | ||||||
Loans over 90 days past due | $ 1,946 | $ | 5,924 | |||||||
As a % of loans | 0.05 | % | 0.16 | % | ||||||
Other real estate owned | $ 1,230 | $ | 157 |
Net loan charge-offs quarter-to-date | $ | 1,907 | $ | 2,440 | ||||||||||
As a % of average loans | 0.19 | % | 0.27 | % | ||||||||||
Net loan charge-offs year-to-date | $ | 5,085 | $ | 7,379 | ||||||||||
As a % of average loans | 0.18 | % | 0.28 | % | ||||||||||
Common shares outstanding | 41,755,015 | 42,685,009 | ||||||||||||
Average Balances | ||||||||||||||
Nine Months Ended September 30 | ||||||||||||||
Assets | $ | 7,971,843 | $ | 7,528,545 | ||||||||||
Loans, net of unearned interest | 3,897,257 | 3,513,171 | ||||||||||||
Securities | 2,735,627 | 2,726,624 | ||||||||||||
Deposits | 5,654,428 | 5,464,479 | ||||||||||||
Shareholders' equity | 867,063 | 838,483 | ||||||||||||
Selected Financial Data | ||||||||||||||
UMB Financial | ||||||||||||||
of Affiliate Banks | Corporation | |||||||||||||
(all dollars in thousands)(unaudited) | September 30, 2007 | |||||||||||||
Loans | ||||||||||||||
Net of | ||||||||||||||
Total | Unearned | Total | Shareholder's | |||||||||||
Missouri | Assets | Interest | Deposits | Equity | ||||||||||
UMB Bank, n.a. | $ | 6,606,849 | $ | 3,200,029 | $ | 4,941,778 $ | 569,274 | |||||||
UMB Bank Warsaw, N.A. | 101,637 | 41,890 | 68,023 | 7,331 | ||||||||||
Colorado | ||||||||||||||
UMB Bank Colorado, n. a. | 787,085 | 458,896 | 568,333 | 133,933 | ||||||||||
Kansas | ||||||||||||||
UMB National Bank of America | 539,796 | 212,025 | 386,672 | 62,527 | ||||||||||
Arizona | ||||||||||||||
UMB Bank Arizona, n.a. | 20,143 | 19,666 | 10,283 | 9,281 | ||||||||||
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