| 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 2008 First Quarter Earnings of $32.4 million
Excluding Visa-related impact, UMB achieved record net income of $24.1 million or 39.1 percent growth
| Selected financial highlights: | ||
| · | Record quarterly revenue of $149.4 million | |
| · | Record noninterest income of $85.0 million | |
| · | Record loan balances of $4.1 billion | |
| · | Net interest margin increased 18 basis points to 3.50 percent | |
| · | Nonperforming loans decreased to 0.12 percent of loans | |
| · | Net chargeoffs decreased to 0.15 percent of average loans |
Kansas City, Mo.(April 22, 2008)– UMB Financial Corporation (NASDAQ: UMBF), a multi-bank holding company, announced earnings for the three-months ended March 31, 2008 of $32.4 million or $0.79 per share ($0.78 diluted). This is an increase of $15.0 million, or 86.8 percent, compared to the first quarter 2007 earnings of $17.3 million or $0.41 per share ($0.41 diluted).
“Simply stated, this quarter was a record quarter on its own merit,” commented Mariner Kemper, Chairman and CEO of UMB Financial Corporation. “We achieved record quarterly earnings and revenue, with or without the impact of Visa, Inc.’s (Visa) Initial Public Offering (IPO). These times of unprecedented pressure in the financial services industry have validated our time-tested business model based on a proven risk profile and uncompromised underwriting standards. Our solid foundation together with disciplined execution of our strategies, has led to strong financial performance.”
As a direct result of Visa’s IPO, the current quarter included a pre-tax gain of $8.9 million from the mandatory redemption of a portion of the company’s Class B shares in Visa. The company also reduced its liability accrual by $4.0 million related to the company’s estimated share of Visa’s covered litigation. This reduction was a result of funding the covered litigation escrow by Visa, also part of their IPO process.
Excluding the Visa-related transactions, net income for the first quarter increased 39.1 percent to $24.1 million or $0.59 per share ($0.58 diluted). A table reconciling GAAP net income for these items for the quarter is included with this release.
Net Interest Income and Margin
Net interest income for the first quarter of 2008 increased $7.4 million, or 13.0 percent, compared to the same period in 2007 due primarily to higher average earning assets and increasing net
interest margin in a declining rate environment. Average earning assets increased by $478.0 million, or 6.5 percent, as compared to the first quarter of 2007. This increase was due to a $212.6 million, or 5.5 percent, increase in average loans and a $301.0 million, or 10.4 percent, increase in total securities, including trading securities and other. Net interest margin increased 18 basis points to 3.50 percent for the three months ended March 31, 2008 as compared to the same quarter in 2007. Largely contributing to the margin improvement was a reduction of 89 basis points in the average cost of our interest-bearing liabilities, which offset a decrease in our average earning-asset yield of 46 basis points.
“The first quarter net interest margin improvement is a reflection of our success in implementing the strategy to optimize our balance sheet,” said Mike Hagedorn, Chief Financial Officer. “This strategy over the last couple of years has led to a larger balance sheet, continued improvement in our earning asset mix, longer average life of our investment portfolio and disciplined deposit rate management. While these actions have positioned us well to improve margin, our balance sheet has retained the high-quality and lower-risk profile that differentiates us from most of our competitors.”
Noninterest Income and Expense
Noninterest income increased $17.6 million, or 26.0 percent, for the three months ended March 31, 2008 compared to the same period in 2007. Trust and securities processing income increased $3.9 million, or 14.4 percent, for the three months ended March 31, 2008 compared to the same period in 2007. This increase was primarily due to a $1.0 million, or 12.4 percent, increase in fee income from UMB Scout Funds and a $3.6 million, or 42.5 percent, increase in fund administration and distribution services, offset by a decrease of $1.0 million of securities transfer income primarily due to the sale of the Securities Transfer product during the third quarter of 2007. Deposit service charges were $1.7 million, or 9.2 percent, higher in the first quarter 2008 than in the same period in 2007 due mostly to greater individual overdraft and return item charges as well as pricing changes implemented at the beginning of 2007. An $8.9 million gain was recognized on the mandatory partial redemption of the company’s holdings of Class B shares of Visa. This redemption was part of the IPO of Visa during the first quarter of 2008. Excluding this redemption gain on the Visa transaction, noninterest income increased 12.9 percent.
“One of our company’s greatest strengths during this time of economic uncertainty is our ability to continue to drive improvement in our fee-based businesses,” said Peter deSilva, President and Chief Operating Officer. “Noninterest income grew 26.0 percent for the quarter and 12.9 percent, excluding the Visa-related gain. Our Asset Management and Fund Services divisions, as well as our Bankcard business, continue to drive this growth. Assets Under Management benefited from $319 million in net flows into our equity, bond and money market UMB Scout Funds. We are very committed to this business and will continue to invest in it for the long-term. Finally, our Healthcare Services’ deposits and investment assets grew to nearly $122 million, or 49 percent higher than the same period last year.”
Noninterest expense increased $1.1 million, or 1.1 percent, for the three months ended March 31, 2008 compared to the same period in 2007. Salary expense increased by $3.9 million, or 7.5 percent, mostly due to higher employee base salaries, higher commissions and bonuses, and higher cost of benefits. Occupancy increased $0.5 million, or 7.5 percent, mainly from increased repair and maintenance costs on existing facilities, higher utility costs and additional facility security costs. Marketing and business development increased $0.4 million, or 10.0 percent, due to timing of marketing initiatives in the first quarter of 2008 compared to the same quarter in 2007. Processing fees increased $1.0 million, or 15.5 percent, due to increased third party custodian fees related to international transactions from mutual fund clients and sub-transfer
agency fees paid for the shareholder servicing of the UMB Scout Funds. A reduction of the covered litigation provision of $4.0 million related to the Visa-covered litigation escrow established through the Visa IPO was recorded in the first quarter 2008. Excluding this litigation liability transaction, noninterest expense increased 5.2 percent.
Balance Sheet
Average total assets for the three months ended March 31, 2008 were $8.7 billion compared to $8.2 billion for the same period in 2007, an increase of $539.3 million, or 6.6 percent. Average earning assets increased by $478.0 million, or 6.5 percent.
Actual loan balances on March 31, 2008 were $4.1 billion, compared to $3.9 billion on March 31, 2007. These balances were as follows:
| Percent | ||||||||
| Loans by Category (in thousands) | March 31, 2008 | March 31, 2007 | Change | Change | ||||
| Commercial, financial and agricultural | $2,009,749 | $1,706,234 | $303,515 | 17.8% | ||||
| Real estate construction | 81,545 | 84,676 | (3,131) | (3.7)% | ||||
| Consumer | 714,623 | 933,307 | (218,684) | (23.4)% | ||||
| Real estate | 1,301,782 | 1,162,995 | 138,787 | 11.9% | ||||
| Leases | 6,110 | 6,391 | (281) | (4.4)% | ||||
| Loans before loans held for sale | 4,113,809 | 3,893,603 | 220,206 | 5.7% | ||||
| Loans held for sale | 18,262 | 16,204 | 2,058 | 12.7% | ||||
| Total loans and loans held for sale | $4,132,071 | $3,909,807 | $222,264 | 5.7% | ||||
Nonperforming loans decreased to $5.1 million at March 31, 2008 compared to $7.6 million at March 31, 2007. As a percentage of total loans, nonperforming loans were 0.12 percent of loans as of March 31, 2008 and 0.20 at March 31, 2007. Nonperforming loans are defined as nonaccrual loans and restructured loans. The company’s allowance for loan losses totaled $47.5 million, or 1.15 percent of total loans as of March 31, 2008, compared to $44.8 million, or 1.15 percent of total loans as of March 31, 2007.
For the three months ended March 31, 2008, average securities, including trading securities and other, totaled $3.2 billion. This is an increase of $301.0 million, or 10.4 percent from the same period in 2007. Average federal funds sold and resell agreements for the first quarter decreased $35.7 million, or 6.6 percent over the same period in 2007 to $505.7 million.
Average total deposits increased $502.5 million, or 8.9 percent, to $6.2 billion for the three months ended March 31, 2008, compared to the same period in 2007. The increase in deposits came primarily from our public funds, mutual fund processing and treasury management businesses. Average time deposit accounts increased by $219.3 million, or 16.8 percent, for the three months ended March 31, 2008 as compared to 2007. Average money market accounts increased by $197.6 million, or 19.1 percent, in 2008 as compared to 2007. Total deposits as of March 31, 2008 were $6.5 billion, compared to $5.6 billion at March 31, 2007, a 16.0 percent increase.
As of March 31, 2008, UMB had total shareholders’ equity of $923.8 million, a 7.5 percent increase from the prior year. For the three months ended March 31, 2008, the company
repurchased485,064 shares at an average price of $38.33 per share, for a total cost of $18.6 million.
The company plans to host a conference call to discuss its first quarter results on April 23, 2008, at 8:30 a.m. (CDT). Interested parties may access the call by dialing U.S./Canada (toll-free) 800.240.7305 or access the following Web link at least ten minutes before the call begins: http://w.on24.com/r.htm?e=106698&s=1&k=FCC3AFA3381EF9395F620931B1364C50 or visit umb.com, Investor Relations, to access the link to the live call.
A replay of the conference call may be heard until April 30, 2008, by calling U.S./Canada (toll-free) 800.405.2236 or 303.590.3000. The replay pass code required for playback is conference ID 11111249#. The call replay may also be accessed via the company's Web site, 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.
Non-GAAP Financial Measures:
Certain financial measures contained in this press release exclude the decrease of the liability accrual related to Visa’s covered litigation provision as well as the pre-tax gain from the mandatory redemption of a portion of the company’s class B shares in Visa. Financial measures which exclude the above-referenced 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 Schedule 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 (NASDAQ: UMBF) is a multi-bank holding company headquartered in Kansas City, Missouri, 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, Wisconsin, single-purpose companies that deal with brokerage services and insurance and a registered investment advisor that manages the company’s proprietary mutual funds.
| NON-GAAP RECONCILIATION SCHEDULE |
| UMB Financial Corporation |
| (all dollars in thousands) (unaudited) |
The following tables present the reconciliation of non-GAAP financial measures to reported GAAP financial measures.
| Three Months Ended | Three Months Ended | |||||||
| March 31, | March 31, | |||||||
| 2008 | 2007 | |||||||
| Net interest income after provision for loan losses | $ | 61,374 | $ | 55,464 | ||||
| Noninterest income | 84,989 | 67,439 | ||||||
| Noninterest expense | 99,226 | 98,160 | ||||||
| Income tax provision | 14,781 | 7,419 | ||||||
| Net income | 32,356 | 17,324 | ||||||
| Adjustments | ||||||||
| Noninterest income | ||||||||
| Gain on mandatory redemption of Visa, Inc. | ||||||||
| class B common stock | (8,875) | - | ||||||
| Noninterest expense | ||||||||
| Covered litigation provision | (4,023) | - | ||||||
| Total Adjustments pre-tax | (12,898) | - | ||||||
| Income tax provision | (4,643) | - | ||||||
| After tax adjustments to GAAP | (8,255) | - | ||||||
| Adjusted net income | $ | 24,101 | $ | 17,324 | ||||
The above table presents the variation in net income on an as reported (GAAP) basis and excluding certain gains related to the redemption of Class B common shares of Visa, Inc. and the adjustment of the covered litigation provision. The press release includes commentary that compares both GAAP and non-GAAP financial measures.
| CONSOLIDATED BALANCE SHEETS |
| UMB Financial Corporation |
| (all dollars in thousands) (unaudited) |
| March 31, |
| Assets |
| 2008 |
| 2007 |
| Loans | $ | 4,113,809 | $ | 3,893,603 | ||||
| Allowance for loan losses | (47,481) | (44,763) | ||||||
| Net loans | 4,066,328 | �� | 3,848,840 | |||||
| Loans held for sale | 18,262 | 16,204 | ||||||
| Investment Securities: | ||||||||
| Available for sale | 3,002,325 | 2,656,391 | ||||||
| Held to maturity | 39,502 | 41,748 | ||||||
| Federal Reserve Bank stock and other | 19,186 | 15,392 | ||||||
| Trading securities | 27,133 | 87,971 | ||||||
| Total investment securities | 3,088,146 | 2,801,502 | ||||||
| Federal funds and resell agreements | 628,857 | 430,369 | ||||||
| Cash and due from banks | 682,533 | 450,891 | ||||||
| Bank premises and equipment, net | 229,951 | 237,270 | ||||||
| Accrued income | 62,410 | 57,301 | ||||||
| Goodwill | 94,512 | 94,670 | ||||||
| Other intangibles | 15742 | 18,669 | ||||||
| Other assets | 48,676 | 44,317 | ||||||
| Total assets | $ | 8,935,417 | $ | 8,000,033 | ||||
| Liabilities | ||||||||
| Deposits: | ||||||||
| Noninterest - bearing demand | $ | 2,210,944 | $ | 1,812,675 | ||||
| Interest - bearing demand and savings | 2,857,861 | 2,610,851 | ||||||
| Time deposits under $100,000 | 908,510 | 763,588 | ||||||
| Time deposits of $100,000 or more | 559,617 | 445,850 | ||||||
| Total deposits | 6,536,932 | 5,632,964 | ||||||
| Federal funds and repurchase agreements | 1,299,752 | 1,396,491 | ||||||
| Short-term debt | 15,154 | 2,136 | ||||||
| Long-term debt | 35,029 | 37,204 | ||||||
| Accrued expenses and taxes | 86,894 | 52,158 | ||||||
| Other liabilities | 37,857 | 19,828 | ||||||
| Total liabilities | 8,011,618 | 7,140,781 | ||||||
| Shareholders' Equity | ||||||||
| Common stock | 55,057 | 55,057 | ||||||
| Capital surplus | 703,429 | 700,161 | ||||||
| Retained earnings | 457,028 | 391,880 | ||||||
| Accumulated other comprehensive income (loss) | 36,136 | (9,839) | ||||||
| Treasury stock | (327,851) | (278,007) | ||||||
| Total shareholders' equity | 923,799 | 859,252 | ||||||
| Total liabilities and shareholders' equity | $ | 8,935,417 | $ | 8,000,033 | ||||
| Consolidated Statements of Income | UMB Financial Corporation | |||||
| (unaudited, dollars in thousands except share and per share data) | ||||||
| Three Months Ended | ||||||
| March 31, | ||||||
| Interest Income | 2008 | 2007 | ||||
| Loans | $ 64,638 | $ | 66,102 | |||
| Securities: | ||||||
| Taxable Interest | 27,463 | 24,742 | ||||
| Tax-exempt interest | 6,614 | 6,027 | ||||
| Total securities income | 34,077 | 30,769 | ||||
| Federal funds and resell agreements | 4,087 | 7,206 | ||||
| Trading securities and other | 312 | 596 | ||||
| Total interest income | 103,114 | 104,673 | ||||
| Interest Expense | ||||||
| Deposits | 27,950 | 28,818 | ||||
| Federal funds and repurchase agreements | 10,282 | 18,355 | ||||
| Short-term debt | 92 | 103 | ||||
| Long-term debt | 416 | 433 | ||||
| Total interest expense | 38,740 | 47,709 | ||||
| Net interest income | 64,374 | 56,964 | ||||
| Provision for loan losses | 3,000 | 1,500 | ||||
| Net interest income after provision for loan losses | 61,374 | 55,464 | ||||
| Noninterest Income | ||||||
| Trust and securities processing | 31,231 | 27,288 | ||||
| Trading and investment banking | 5,514 | 4,838 | ||||
| Service charges on deposits | 20,622 | 18,889 | ||||
| Insurance fees and commissions | 1,140 | 676 | ||||
| Brokerage fees | 2,094 | 2,077 | ||||
| Bankcard fees | 10,721 | 10,146 | ||||
| Gains on sales of securities available for sale | 382 | 10 | ||||
| Gain on mandatory redemption of Visa, Inc. class B | ||||||
| common stock | 8,875 | - | ||||
| Other | 4,410 | 3,515 | ||||
| Total noninterest income | 84,989 | 67,439 | ||||
| Noninterest Expense | ||||||
| Salaries and employee benefits | 55,041 | 51,191 | ||||
| Occupancy, net | 7,647 | 7,114 | ||||
| Equipment | 13,282 | 13,357 | ||||
| Supplies and services | 5,862 | 5,720 | ||||
| Marketing and business development | 3,890 | 3,537 | ||||
| Processing fees | 7,676 | 6,646 | ||||
| Legal and consulting | 1,103 | 1,525 | ||||
| Bankcard | 2,857 | 3,342 | ||||
| Amortization of other intangibles | 721 | 734 | ||||
| Covered litigation provision | (4,023) | - | ||||
| Other | 5,170 | 4,994 | ||||
| Total noninterest expense | 99,226 | 98,160 | ||||
| Income before income taxes | 47,137 | 24,743 | ||||
| Income tax provision | 14,781 | 7,419 | ||||
| Net income | $ 32,356 | $ | 17,324 | |||
| Per Share Data | ||||||
| Net income- Basic | $ 0.79 | $ | 0.41 | |||
| Net income- Diluted | 0.78 | 0.41 | ||||
| Dividends | 0.15 | 0.14 | ||||
| Weighted average shares outstanding | 40,977,349 | 42,032,581 | ||||
| Consolidated Statements of | ||||||||||||||||||||
| Shareholders' Equity | UMB Financial Corporation | |||||||||||||||||||
| (all dollars in thousands) | ||||||||||||||||||||
| Accumulated | ||||||||||||||||||||
| Other | ||||||||||||||||||||
| Common | Capital | Retained | Comprehensive | Treasury | ||||||||||||||||
| Stock | Surplus | Earnings | Income (Loss) | Stock | Total | |||||||||||||||
| Balance - January 1, 2007 | $ | 55,057 | $ | 699,794 | $ | 380,464 | $ | (17,259) | $ (269,181) $ | 848,875 | ||||||||||
| Comprehensive income (loss) | ||||||||||||||||||||
| Net income | - | - | 17,324 | - | - | 17,324 | ||||||||||||||
| Change in unrealized losses on | ||||||||||||||||||||||
| securities | - | - | - | 7,420 | - | 7,420 | ||||||||||||||||
| Total comprehensive income | 24,744 | |||||||||||||||||||||
| Cash dividends ($0.14 per share) | - | - | (5,908) | - | - | (5,908) | ||||||||||||||||
| Purchase of treasury stock | - | - | - | (9,702) | (9,702) | |||||||||||||||||
| Issuance of stock awards | - | (455) | - | - | 592 | 137 | ||||||||||||||||
| Recognition of stock based | ||||||||||||||||||||||
| compensation | - | 645 | - | - | - | 645 | ||||||||||||||||
| Sale of treasury stock | - | 71 | - | - | 44 | 115 | ||||||||||||||||
| Exercise of stock options | - | 106 | - | - | 240 | 346 | ||||||||||||||||
| Balance – March 31, 2007 | $ 55,057 | $ | 700,161 | $ | 391,880 | $ | (9,839) | $ | (278,007) | $ | 859,252 | |||||||||||
| Balance – January 1, 2008 | $ 55,057 | $ | 702,914 | $ | 430,824 | $ | 12,246 | $ | (310,467) | $ | 890,574 | |||||||||||
| Comprehensive income | ||||||||||||||||||||||
| Net income | - | - | 32,356 | - | - | 32,356 | ||||||||||||||||
| Other Comprehensive income | ||||||||||||||||||||||
| Change in unrealized gains on | ||||||||||||||||||||||
| securities | - | - | - | 23,890 | - | 23,890 | ||||||||||||||||
| Total comprehensive income | 56,246 | |||||||||||||||||||||
| Cash dividends ($0.15er share) | - | - | (6,152 | - | - | (6,152) | ||||||||||||||||
| Purchase of treasury stock | - | - | - | - | (18,594) | (18,594) | ||||||||||||||||
| Issuance of stock awards | - | (729) | - | - | 869 | 140 | ||||||||||||||||
| Recognition of stock based | ||||||||||||||||||||||
| compensation | - | 922 | - | - | - | 922 | ||||||||||||||||
| Net tax benefit related to equity | ||||||||||||||||||||||
| compensation plans | - | 142 | - | - | - | 142 | ||||||||||||||||
| Sale of treasury stock | - | 82 | - | - | 45 | 127 | ||||||||||||||||
| Exercise of stock options | - | 98 | - | - | 296 | 394 | ||||||||||||||||
| Balance – March 31, 2008 | $ 55,057 | $ | 703,429 | $ | 457,028 | $ | 36,136 | $ | (327,851) | $ | 923,799 | |||||||||||
| Average Balances / Yields and Rates | UMB Financial Corporation | |||||||||||||
| (tax - equivalent basis) | ||||||||||||||
| (all dollars in thousands)(unaudited) | Three Months Ended March 31, | |||||||||||||
| 2008 | 2007 | |||||||||||||
| Average | Average | Average | Average | |||||||||||
| Assets | Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||
| Loans, net of unearned interest | $ 4,079,731 | 6.38 | % | $ | 3,867,083 | 6.94 | % | |||||||
| Securities: | ||||||||||||||
| Taxable | 2,394,220 | 4.61 | 2,135,927 | 4.70 | ||||||||||
| Tax-exempt | 766,409 | 5.21 | 702,724 | 5.06 | ||||||||||
| Total securities | 3,160,629 | 4.76 | 2,838,651 | 4.79 | ||||||||||
| Federal funds and resell agreements | 505,669 | 3.25 | 541,339 | 5.40 | ||||||||||
| Trading securities and other | 40,192 | 3.48 | 61,163 | 4.05 | ||||||||||
| Total earning assets | 7,786,221 | 5.50 | 7,308,236 | 5.96 | ||||||||||
| Allowance for loan losses | (47,008) | (44,978) | ||||||||||||
| Other Assets | 950,845 | 887,458 | ||||||||||||
| Total assets | $ 8,690,058 | $ | 8,150,716 | |||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||
| Interest-bearing deposits | $ 4,344,963 | 2.59 | % | $ | 3,893,144 | 3.00 | % | |||||||
| Federal funds and repurchase agreements | 1,446,142 | 2.86 | 1,497,096 | 4.97 | ||||||||||
| Borrowed funds | 49,325 | 4.14 | 46,252 | 4.70 | ||||||||||
| Total interest-bearing liabilities | 5,840,430 | 2.67 | 5,436,492 | 3.56 | ||||||||||
| Noninterest-bearing demand deposits | 1,830,036 | 1,779,403 | ||||||||||||
| Other liabilities | 97,964 | 77,263 | ||||||||||||
| Shareholders' equity | 921,628 | 857,558 | ||||||||||||
| Total liabilities and shareholders' equity | $ 8,690,058 | $ | 8,150,716 | |||||||||||
| Net interest spread | 2.83 | % | 2.40 | % | ||||
| Net interest margin | 3.50 | 3.32 |
| FIRST QUARTER 2008 | ||||||||||||
| FINANCIAL HIGHLIGHTS | UMB Financial Corporation | |||||||||||
| (all dollars in thousands, except per share data) (unaudited) | ||||||||||||
| Three Months Ended March 31 | 2008 | 2007 | ||||||||||
| Net interest income | $ | 64,374 | $ | 56,964 | ||||||||
| Provision for loan losses | 3,000 | 1,500 | ||||||||||
| Noninterest income | 84,989 | 67,439 | ||||||||||
| Noninterest expense | 99,226 | 98,160 | ||||||||||
| Income before income taxes | 47,137 | 24,743 | ||||||||||
| Net income | 32,356 | 17,324 | ||||||||||
| Net income per share - Basic | 0.79 | 0.41 | ||||||||||
| Net income per share - Diluted | 0.78 | 0.41 | ||||||||||
| Return on average assets | 1.50 | % | 0.86 | % | ||||||||
| Return on average equity | 14.12 | % | 8.19 | % | ||||||||
| At March 31 | ||||||||||||
| Assets | $ | 8,935,417 | $ | 8,000,033 | ||||||||
| Loans, net of unearned interest | 4,113,809 | 3,893,603 | ||||||||||
| Securities | 3,088,146 | 2,801,502 | ||||||||||
| Deposits | 6,536,932 | 5,632,964 | ||||||||||
| Shareholders' equity | 923,799 | 859,252 | ||||||||||
| Book value per share | 22.57 | 20.42 | ||||||||||
| Market price per share | 41.20 | 37.76 | ||||||||||
| Equity to assets | 10.34 | % | 10.74 | % | ||||||||
| Allowance for loan losses | $ | 47,481 | $ | 44,763 | ||||||||
| As a % of loans | 1.15 | % | 1.15 | % | ||||||||
| Nonaccrual and restructured loans | $ | 5,054 | $ | 7,613 | ||||||||
| As a % of loans | 0.12 | % | 0.20 | % | ||||||||
| Loans over 90 days past due | $ | 3,634 | $ | 4,143 | ||||||||
| As a % of loans | 0.09 | % | 0.11 | % | ||||||||
| Other real estate owned | $ | 1,380 | $ | 310 | ||||||||
| Net loan charge-offs year-to-date | $ | 1,505 | $ | 1,663 | ||||||||
| As a % of average loans | 0.15 | % | 0.17 | % | ||||||||
| Common shares outstanding | 40,932,607 | 42,078,002 | ||||||||||
| Average Balances | ||||||||||||
| Three Months Ended March 31 | ||||||||||||
| Assets | $ | 8,690,058 | $ | 8,150,716 | ||||||||
| Loans, net of unearned interest | 4,079,731 | 3,867,083 | ||||||||||
| Securities | 3,160,629 | 2,838,651 | ||||||||||
| Deposits | 6,174,999 | 5,672,547 | ||||||||||
| Shareholders' equity | 921,628 | 857,558 | ||||||||||
| Selected Financial Data | ||
| of Affiliate Banks | UMB Financial Corporation | |
| (all dollars in thousands)(unaudited) | March 31, 2008 | |
| Loans |
| Net of | ||||||||||||||
| Total | Unearned | Total | Shareholders' | |||||||||||
| Missouri | Assets | Interest | Deposits | Equity | ||||||||||
| UMB Bank, n.a. | $ 7,728,617 | $ | 3,370,074 | $ | 5,715,878 | $ | 629,357 | |||||||
| Colorado | ||||||||||||||
| UMB Bank Colorado, n. a. | 789,430 | 490,539 | 543,782 | 141,975 | ||||||||||
| Kansas | ||||||||||||||
| UMB National Bank of America | 627,878 | 219,125 | 361,033 | 67,138 | ||||||||||
| Arizona | ||||||||||||||
| UMB Bank Arizona, n. a. | 44,543 | 45,559 | 11,176 | 8,688 | ||||||||||
| 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 Services, LLC | ||||||||||||||