UMB Financial Corporation
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1010 Grand Boulevard
Kansas City, MO 64106
816.860.7000
umb.com
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//FOR IMMEDIATE RELEASE//
Contact: Mandie Nelson, 816.860.5088
Investor Relations Contact: Begonya Klumb, 816.860.7906
UMB Financial Corporation Reports 2008 Second Quarter Earnings of $23.7 million, an increase of 18.2 percent over the same period last year
| | | Selected financial highlights: |
| · | | Quarterly revenue growth of 12.2 percent |
| · | | Net interest margin increased 28 basis points to 3.71 percent |
| · | | Average deposit growth of 11.9 percent |
| · | | Noninterest-bearing deposits increased to 32.9 percent of total deposits |
| · | | Nonperforming loans were flat at 0.20 percent of total loans |
| · | | Tier 1 capital ratio remains strong at 14.01% |
| · | | Record quarterly UMB Scout Fund Flows of $549 million |
Kansas City, Mo.(July 22, 2008)– UMB Financial Corporation (NASDAQ: UMBF), a multi-bank holding company, announced earnings for the three months ended June 30, 2008 of $23.7 million or $0.58 per share ($0.58 diluted). This is an increase of $3.6 million, or 18.2 percent, compared to the second quarter 2007 earnings of $20.1 million or $0.48 per share ($0.48 diluted). Earnings for the six months ended June 30, 2008 were $56.1 million or $1.37 per share ($1.36 diluted). This is an increase of $18.7 million, or 50.0 percent, compared to the prior year earnings of $37.4 million or $0.89 per share ($0.89 diluted).
“Our strategy continues to deliver results, as evidenced by our second quarter performance,” commented Mariner Kemper, Chairman and CEO of UMB Financial Corporation. “While the industry continues to be under pressure, UMB remains focused on capitalization, high quality lending, making strategic investments and servicing our customers. Our credit quality remained strong. Nonperforming loans were flat at 0.20 percent of total loans. This is 86 percent lower than the industry average of 1.43 percent in the first quarter of 2008, and further proof that our time-tested model, continues to deliver strong financial performance. Finally, we announced last week the acquisition of The Citadel Bank in Colorado Springs. We are very pleased in today’s marketplace to add to our franchise a well-capitalized bank that shares our values and tradition of high quality lending and strong customer service. We look forward to expanding our presence in this important market.”
Net Interest Income and Margin
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Net interest income for the second quarter of 2008 increased $9.2 million, or 16.1 percent, compared to the same period in 2007 due primarily to higher average earning assets and increasing net interest margin. Average earning assets increased by $565.8 million, or 8.1 percent, as compared to the second quarter of 2007. This increase was due to a $219.9 million, or 5.6 percent, increase in average loans and a $402.0 million, or 14.6 percent, increase in total securities, including trading securities and other. Net interest margin increased 28 basis points to 3.71 percent for the three months ended June 30, 2008 as compared to the same quarter in 2007. Largely contributing to the margin improvement was a reduction of 163 basis points in the average cost of our interest-bearing liabilities, which more than offset a decrease in our average earning-asset yield of 94 basis points.
Noninterest Income and Expense
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Noninterest income increased $6.7 million, or 9.2 percent, for the three months ended June 30, 2008 compared to the same period in 2007. Trust and securities processing income increased $4.2 million, or 14.4 percent, for the three months ended June 30, 2008 compared to the same period in 2007. This increase was primarily due to a $1.5 million, or 17.1 percent, increase in fee income from UMB Scout Funds and a $3.0 million, or 32.7 percent, increase in fund administration and custody services. Bankcard fees increased $1.8 million, or 18.3 percent, for the three months ended June 30, 2008 compared to the same period in 2007 due to increased credit card transaction volume.
“Our fee-based businesses continue to help drive improvement in our operating results,” said Peter deSilva, President and Chief Operating Officer. “Noninterest income grew 9.2 percent for the quarter driven by our Asset Management and Fund Services divisions, as well as our Bankcard business. Assets under management benefited from record quarterly net flows of $549 million into our equity, bond and money market UMB Scout Funds. We have an outstanding team in place and continue to maximize our distribution. We launched two new credit card products this summer to build on our momentum in this space. Credit card transaction volume totaled nearly $308 million in the second quarter, up 18.3 percent from the second quarter of 2007.”
Noninterest expense increased $8.0 million, or 8.2 percent, for the three months ended June 30, 2008 compared to the same period in 2007. Salary expense increased by $5.2 million, or 10.4 percent, mostly due to higher employee base salaries, higher commissions and bonuses, and higher cost of benefits. Processing fees increased $1.8 million, or 25.8 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.
“Noninterest expense grew 8.2 percent driven largely by commissions related to increased sales and revenue. Despite this increase, our efficiency ratio fell to 71.61 percent in the second quarter from 74.46 percent in the same period last year,” continued deSilva.
Average total assets for the three months ended June 30, 2008 were $8.6 billion compared to $7.9 billion for the same period in 2007, an increase of $622.0 million, or 7.9 percent. Average earning assets increased by $565.8 million, or 8.1 percent.
Actual loan balances on June 30, 2008 were $4.1 billion, compared to $4.0 billion on June 30, 2007. These balances were as follows:
| | | | | | | | | Percent |
| Loans by Category (in thousands) | | June 30, 2008 | | June 30, 2007 | | Change | | Change |
| Commercial, financial and agricultural | | $1,974,137 | | $1,777,252 | | $196,885 | | 11.1% |
| Real estate construction | | 88,824 | | 85,173 | | 3,651 | | 4.3% |
| Consumer | | 661,639 | | 909,488 | | (247,849) | | (27.3)% |
| Real estate | | 1,375,434 | | 1,180,204 | | 195,230 | | 16.5% |
| Leases | | 6,044 | | 6,061 | | (17) | | (0.3)% |
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| Loans before loans held for sale | | 4,106,078 | | 3,958,178 | | 147,900 | | 3.7% |
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| Loans held for sale | | 17,611 | | 14,290 | | 3,321 | | 23.2% |
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| Total loans and loans held for sale | | $4,123,689 | | $3,972,468 | | $151,221 | | 3.8% |
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Consumer loans continued to decline as a result of the company’s strategic decision to exit the indirect lending business in August 2007. As of June 30, 2008, total indirect auto loan balances were $385 million, down 40.7 percent from $650 million in the same period last year.
Nonperforming loans increased to $8.2 million at June 30, 2008 from $7.9 million at June 30, 2007. As a percentage of total loans, nonperforming loans remained flat at 0.20 percent of loans as of June 30, 2008 and 2007. Nonperforming loans are defined as nonaccrual loans and restructured loans. The company’s allowance for loan losses totaled $48.1 million, or 1.17 percent of total loans as of June 30, 2008, compared to $45.2 million, or 1.14 percent of total loans as of June 30, 2007.
For the three months ended June 30, 2008, average securities, including trading securities and other, totaled $3.2 billion. This is an increase of $402.0 million, or 14.6 percent from the same period in 2007. Average federal funds sold and resell agreements for the second quarter decreased $56.1 million, or 18.3 percent over the same period in 2007 to $251.4 million.
“Our balance sheet continues to be well capitalized and has a strong core funding structure,” said Mike Hagedorn, Chief Financial Officer. “This is evidenced by our tier 1 capital ratio of 14.01 percent, our leverage capital ratio of 10.14 and our total capital ratio of 14.88 percent. Our core funding structure, with noninterest-bearing deposits representing 32.9 percent of total deposits, also contributes to our balance sheet strength. The strategic decision to maintain high capital levels serves us well in today’s uncertain environment and allows us to act quickly on strategic decisions when the right opportunities arise.”
Average total deposits increased $668.9 million, or 11.9 percent, to $6.3 billion for the three months ended June 30, 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 $235.4 million, or 19.6 percent, for the three months ended June 30, 2008 as compared to 2007. Average money market accounts increased by $235.5 million, or 22.1 percent, in 2008 as compared to 2007. Total deposits as of June 30, 2008 were $6.4 billion, compared to $5.8 billion at June 30, 2007, a 9.6 percent increase.
As of June 30, 2008, UMB had total shareholders’ equity of $917.0 million, a 6.6 percent increase from the same period last year. For the three months ended June 30, 2008, the company repurchased
51,770 shares at an average price of $49.52 per share, for a total cost of $2.6 million.
The company declared its regular quarterly cash dividend of $0.165 cents per share to be paid on October 1, 2008, to shareholders of record at of the close of business on September 10, 2008.
Earnings for the six months ended June 30, 2008 were $56.1 million or $1.37 per share ($1.36 diluted). This is an increase of $18.7 million, or 50.0 percent, compared to year-to-date earnings of $37.4 million or $0.89 per share ($0.89 diluted) in the same period last year. As a direct result of Visa, Inc.’s (Visa) Initial Public Offering (IPO) during the first quarter, earnings for the first six months of 2008 include 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 in the first quarter 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. The total Visa impact represents $12.9 million of the change over prior year-to-date earnings.
Net interest income for the six months ended June 30, 2008 increased $16.6 million, or 14.6 percent, compared to the same period in 2007 due primarily to higher average earning assets and net interest
margin. Net interest margin increased to 3.60 percent for the six months ended June 30, 2008 as compared to 3.37 percent for the same period in 2007.
Noninterest income increased $25.0 million or 18.0 percent, to $164.0 million for the six months ended June 30, 2008 as compared to the same period in 2007. The increase is primarily attributable to higher trust and securities processing income, deposit service charges, trading and investment banking income, bankcard fees and the impact from the Visa transaction. Trust and securities processing income increased $8.1 million, or 14.4 percent, for the year-to-date June 30, 2008 as compared to the same period in 2007. Deposit service charges were $2.0 million, or 5.0 percent, higher for the six months ended June 30, 2008. Trading and investment banking income increased $1.5 million, or 14.1 percent, for the year-to-date June 30, 2008. Bankcard fees increased $3.1 million, or 16.2 percent, for the first six months of 2008 as compared to the same period in 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 Visa’s IPO during the first quarter of 2008.
Noninterest expense increased $9.8 million, or 5.0 percent, for the six months ended June 30, 2008 compared to the same period in 2007. Salary expense increased by $9.0 million, or 9.0 percent, mostly due to higher employee base salaries, higher commissions and bonuses and higher cost of benefits. Processing fees increased by $2.9 million, or 20.8 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 due to the Visa IPO was recorded in the first quarter 2008.
The company plans to host a conference call to discuss its second quarter results on July 23, 2008, at 8:30 a.m. (CDT). Interested parties may access the call by dialing U.S./Canada (toll-free) 800.218.0530 or access the following Web link at least ten minutes before the call begins:http://w.on24.com/r.htm?e=113885&s=1&k=1584188752284D2DA3B582BEE2115A84 or visit umb.com, Investor Relations, to access the link to the live call.
A replay of the conference call may be heard until July 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 11116662#. The call replay may also be accessed via the company's web site, umb.com, by visiting the Investor Relations’ area.
Forward-Looking Statements:
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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.
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 135 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 a fund 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.
| CONSOLIDATED BALANCE SHEETS | | | | UMB Financial Corporation |
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| (unaudited, dollars in thousands) | | | | | | | | |
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| Assets | | | | 2008 | | | | 2007 |
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| Loans | | $ | | 4,106,078 | | $ | | 3,958,178 |
| Allowance for loan losses | | | | (48,101) | | | | (45,248) |
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| Net loans | | | | 4,057,977 | | | | 3,912,930 |
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| Loans held for sale | | | | 17,611 | | | | 14,290 |
| Investment Securities: | | | | | | | | |
| Available for sale | | | | 2,915,559 | | | | 2,712,046 |
| Held to maturity | | | | 39,015 | | | | 39,445 |
| Federal Reserve Bank stock and other | | | | 19,263 | | | | 18,515 |
| Trading securities | | | | 62,972 | | | | 67,015 |
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| Total investment securities | | | | 3,036,809 | | | | 2,837,021 |
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| Federal funds and resell agreements | | | | 510,965 | | | | 365,466 |
| Cash and due from banks | | | | 658,218 | | | | 430,908 |
| Bank premises and equipment, net | | | | 225,942 | | | | 239,122 |
| Accrued income | | | | 58,679 | | | | 58,779 |
| Goodwill | | | | 94,512 | | | | 94,631 |
| Other intangibles | | | | 16,360 | | | | 17,935 |
| Other assets | | | | 129,449 | | | | 62,962 |
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| Total assets | | $ | | 8,806,522 | | $ | | 8,034,044 |
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| Liabilities | | | | | | | | |
| Deposits: | | | | | | | | |
| Noninterest - bearing demand | | $ | | 2,088,221 | | $ | | 1,892,947 |
| Interest - bearing demand and savings | | | | 2,831,851 | | | | 2,679,537 |
| Time deposits under $100,000 | | | | 830,114 | | | | 775,111 |
| Time deposits of $100,000 or more | | | | 605,233 | | | | 450,900 |
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| Total deposits | | | | 6,355,419 | | | | 5,798,495 |
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| Federal funds and repurchase agreements | | | | 1,204,136 | | | | 1,255,414 |
| Short-term debt | | | | 215,378 | | | | 12,646 |
| Long-term debt | | | | 34,449 | | | | 35,788 |
| Accrued expenses and taxes | | | | 64,968 | | | | 46,726 |
| Other liabilities | | | | 15,159 | | | | 24,547 |
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| Total liabilities | | | | 7,889,509 | | | | 7,173,616 |
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| Shareholders' Equity | | | | | | | | |
| Common stock | | | | 55,057 | | | | 55,057 |
| Capital surplus | | | | 705,136 | | | | 700,616 |
| Retained earnings | | | | 473,998 | | | | 406,048 |
| Accumulated other comprehensive income (loss) | | | | 12,573 | | | | (22,858) |
| Treasury stock | | | | (329,751) | | | | (278,435) |
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| Total shareholders' equity | | | | 917,013 | | | | 860,428 |
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| Total liabilities and shareholders' equity | | $ | | 8,806,522 | | $ | | 8,034,044 |
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| Consolidated Statements of Income | | | | | | | | | | UMB Financial Corporation |
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| (unaudited, dollars in thousands except share and per share data) | | | | | | | | | | | | | | |
| | | Three Months Ended | | | | Six Months Ended |
| | | June 30, | | | | | | | | June 30, | | |
| Interest Income | | 2008 | | | | 2007 | | | | 2008 | | | | 2007 |
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| Loans | | $ 58,710 | | $ | | 68,313 | | $ | | 123,351 | | $ | | 134,414 |
| Securities: | | | | | | | | | | | | | | |
| Taxable Interest | | 25,329 | | | | 23,206 | | | | 52,792 | | | | 47,948 |
| Tax-exempt interest | | 6,591 | | | | 6,126 | | | | 13,205 | | | | 12,153 |
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| Total securities income | | 31,920 | | | | 29,332 | | | | 65,997 | | | | 60,101 |
| Federal funds and resell agreements | | 1,375 | | | | 4,126 | | | | 5,463 | | | | 11,332 |
| Trading securities and other | | 335 | | | | 666 | | | | 646 | | | | 1,263 |
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| Total interest income | | 92,340 | | | | 102,437 | | | | 195,457 | | | | 207,110 |
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| Interest Expense | | | | | | | | | | | | | | |
| Deposits | | 20,845 | | | | 28,961 | | | | 48,795 | | | | 57,779 |
| Federal funds and repurchase agreements | | 5,001 | | | | 15,985 | | | | 15,283 | | | | 34,340 |
| Short-term debt | | 65 | | | | 177 | | | | 157 | | | | 280 |
| Long-term debt | | 418 | | | | 459 | | | | 834 | | | | 892 |
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| Total interest expense | | 26,329 | | | | 45,582 | | | | 65,069 | | | | 93,291 |
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| Net interest income | | 66,011 | | | | 56,855 | | | | 130,388 | | | | 113,819 |
| Provision for loan losses | | 4,850 | | | | 2,000 | | | | 7,850 | | | | 3,500 |
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| Net interest income after provision for loan losses | | 61,161 | | | | 54,855 | | | | 122,538 | | | | 110,319 |
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| Noninterest Income | | | | | | | | | | | | | | |
| Trust and securities processing | | 33,132 | | | | 28,954 | | | | 64,363 | | | | 56,242 |
| Trading and investment banking | | 6,350 | | | | 5,555 | | | | 11,864 | | | | 10,394 |
| Service charges on deposits | | 20,935 | | | | 20,686 | | | | 41,557 | | | | 39,574 |
| Insurance fees and commissions | | 937 | | | | 955 | | | | 2,077 | | | | 1,631 |
| Brokerage fees | | 2,147 | | | | 1,987 | | | | 4,241 | | | | 4,065 |
| Bankcard fees | | 11,708 | | | | 9,900 | | | | 22,428 | | | | 19,296 |
| Gain (loss) on sales of securities available for sale | | 29 | | | | (7) | | | | 411 | | | | 2 |
| Gain on mandatory redemption of Visa, Inc. class B common | | | | | | | | | | | | | | |
| stock | | - | | | | - | | | | 8,875 | | | | - |
| Other | | 3,750 | | | | 4,296 | | | | 8,161 | | | | 7,810 |
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| Total noninterest income | | 78,988 | | | | 72,326 | | | | 163,977 | | | | 139,014 |
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| Noninterest Expense | | | | | | | | | | | | | | |
| Salaries and employee benefits | | 55,100 | | | | 49,908 | | | | 110,144 | | | | 101,099 |
| Occupancy, net | | 7,762 | | | | 7,640 | | | | 15,409 | | | | 14,754 |
| Equipment | | 13,188 | | | | 13,068 | | | | 26,471 | | | | 26,425 |
| Supplies and services | | 6,065 | | | | 5,794 | | | | 11,926 | | | | 11,513 |
| Marketing and business development | | 4,459 | | | | 4,157 | | | | 8,349 | | | | 7,694 |
| Processing fees | | 8,967 | | | | 7,131 | | | | 16,643 | | | | 13,777 |
| Legal and consulting | | 1,831 | | | | 1,941 | | | | 2,934 | | | | 3,466 |
| Bankcard | | 2,618 | | | | 2,844 | | | | 5,475 | | | | 5,435 |
| Amortization of other intangibles | | 733 | | | | 734 | | | | 1,454 | | | | 1,469 |
| Covered litigation provision | | - | | | | - | | | | (4,023) | | | | - |
| Other | | 5,642 | | | | 5,121 | | | | 10,812 | | | | 10,115 |
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| Total noninterest expense | | 106,365 | | | | 98,338 | | | | 205,594 | | | | 195,747 |
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| Income before income taxes | | 33,784 | | | | 28,843 | | | | 80,921 | | | | 53,586 |
| Income tax provision | | 10,060 | | | | 8,780 | | | | 24,841 | | | | 16,199 |
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| Net income | | $ 23,724 | | $ | | 20,063 | | $ | | 56,080 | | $ | | 37,387 |
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| Per Share Data | | | | | | | | | | | | | | |
| Net income- basic | | $ 0.58 | | $ | | 0.48 | | $ | | 1.37 | | $ | | 0.89 |
| Net income- diluted | | 0.58 | | | | 0.48 | | | | 1.36 | | | | 0.89 |
| Dividends | | 0.17 | | | | 0.14 | | | | 0.32 | | | | 0.28 |
| Weighted average shares outstanding | | 40,657,351 | | | | 41,857,515 | | | | 40,817,350 | | | | 41,944,564 |
| Consolidated Statements of | | | | | | | | | | | | | | | | | | | | | | | | |
| Shareholders' Equity | | | | | | | | | | | | | | | | | | | | UMB Financial Corporation |
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| (unaudited, dollars in thousands, except per share data) | | | | | | | | | | | | | | | | |
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| | | | | Common | | | | Capital | | | | Retained | | | | Comprehensive | | | | Treasury | | | | |
| | | | | Stock | | | | Surplus | | | | Earnings | | | | Income (Loss) | | | | Stock | | | | Total |
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| Balance - January 1, 2007 | | $ | | 55,057 | | $ | | 699,794 | | $ | | 380,464 | | $ | | (17,259) | | $ | | (269,181) | | $ | | 848,875 |
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| Comprehensive income (loss) | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | - | | | | - | | | | 37,387 | | | | - | | | | - | | | | 37,387 |
| Change in unrealized losses on | | | | | | | | | | | | | | | | | | | | | | | | |
| securities | | | | - | | | | - | | | | - | | | | (5,599) | | | | - | | | | (5,599) |
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| Total comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | 31,788 |
| Cash dividends ($0.28 per share) | | | | - | | | | - | | | | (11,803) | | | | - | | | | - | | | | (11,803) |
| Purchase of treasury stock | | | | - | | | | - | | | | - | | | | - | | | | (10,739) | | | | (10,739) |
| Issuance of equity awards | | | | - | | | | (898) | | | | - | | | | - | | | | 1,035 | | | | 137 |
| Recognition of equity based | | | | | | | | | | | | | | | | | | | | | | | | |
| compensation | | | | - | | | | 1,419 | | | | - | | | | - | | | | - | | | | 1,419 |
| Sale of treasury stock | | | | - | | | | 149 | | | | - | | | | - | | | | 94 | | | | 243 |
| Exercise of stock options | | | | - | | | | 152 | | | | - | | | | - | | | | 356 | | | | 508 |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Balance – June 30, 2007 | | | | 55,057 | | | | 700,616 | | | | 406,048 | | | | (22,858) | | | | (278,435) | | | | 860,428 |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| |
| Balance – January 1, 2008 | | | | 55,057 | | | | 702,914 | | | | 430,824 | | | | 12,246 | | | | (310,467) | | | | 890,574 |
| Comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | - | | | | - | | | | 56,080 | | | | - | | | | - | | | | 56,080 |
| Change in unrealized gains on | | | | | | | | | | | | | | | | | | | | | | | | |
| securities | | | | - | | | | - | | | | - | | | | 327 | | | | - | | | | 327 |
| | | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Total comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | 56,407 |
| |
| Cash dividends ($0.32 per share) | | | | - | | | | - | | | | (12,906) | | | | - | | | | - | | | | (12,906) |
| Purchase of treasury stock | | | | - | | | | - | | | | - | | | | - | | | | (21,158) | | | | (21,158) |
| Issuance of equity awards | | | | - | | | | (814) | | | | - | | | | - | | | | 954 | | | | 140 |
| Recognition of equity based | | | | | | | | | | | | | | | | | | | | | | | | |
| compensation | | | | - | | | | 2,020 | | | | - | | | | - | | | | - | | | | 2,020 |
| Net tax benefit related to equity | | | | | | | | | | | | | | | | | | | | | | | | |
| compensation plans | | | | | | | | 320 | | | | - | | | | - | | | | - | | | | 320 |
| Sale of treasury stock | | | | - | | | | 184 | | | | - | | | | - | | | | 94 | | | | 278 |
| Exercise of stock options | | | | - | | | | 512 | | | | - | | | | - | | | | 826 | | | | 1,338 |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Balance – June 30, 2008 | | $ | | 55,057 | | $ | | 705,136 | | $ | | 473,998 - | | $ | | 12,573 - | | $ | | (329,751) | | $ | | 917,013 |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Average Balances / Yields and Rates | | | | | | | | UMB Financial Corporation | | | | |
| |
| |
| |
| |
| |
| |
|
| (tax - equivalent basis) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (unaudited, dollars in thousands) | | | | | | Six Months Ended June 30, | | | | |
| | | | | 2008 | | | | | | 2007 | | | | |
| |
| |
| |
| |
| |
| |
| |
|
| | | | | Average | | Average | | | | | | Average | | Average | | |
| Assets | | | | Balance | | Yield/Rate | | | | | | Balance | | Yield/Rate | | |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Loans, net of unearned interest | | $ | | 4,109,000 | | 6.04 | | % | | $ | | 3,892,891 | | 6.97 | | % |
| Securities: | | | | | | | | | | | | | | | | |
| Taxable | | | | 2,371,806 | | 4.48 | | | | | | 2,055,414 | | 4.70 | | |
| Tax-exempt | | | | 764,538 | | 5.25 | | | | | | 705,629 | | 5.06 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total securities | | | | 3,136,344 | | 4.66 | | | | | | 2,761,043 | | 4.79 | | |
| Federal funds and resell agreements | | | | 378,522 | | 2.90 | | | | | | 423,775 | | 5.39 | | |
| Trading securities and other | | | | 40,879 | | 3.44 | | | | | | 64,251 | | 4.10 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total earning assets | | | | 7,664,745 | | 5.31 | | | | | | 7,141,960 | | 6.01 | | |
| Allowance for loan losses | | | | (47,943) | | | | | | | | (44,972) | | | | |
| Other assets | | | | 1,003,266 | | | | | | | | 941,773 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| Total assets | | $ | | 8,620,068 | | | | | | $ | | 8,038,761 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| |
| |
| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | | 4,328,435 | | 2.27 | | % | | $ | | 3,852,331 | | 3.02 | | % |
| Federal funds and repurchase agreements | | | | 1,324,614 | | 2.32 | | | | | | 1,402,826 | | 4.94 | | |
| Borrowed funds | | | | 48,736 | | 4.09 | | | | | | 48,723 | | 4.85 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total interest-bearing liabilities | | | | 5,701,785 | | 2.29 | | | | | | 5,303,880 | | 3.55 | | |
| Noninterest-bearing demand deposits | | | | 1,899,165 | | | | | | | | 1,789,445 | | | | |
| Other liabilities | | | | 98,309 | | | | | | | | 85,089 | | | | |
| Shareholders' equity | | | | 920,809 | | | | | | | | 860,347 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| Total liabilities and shareholders' equity | | $ | | 8,620,068 | | | | | | $ | | 8,038,761 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| Net interest spread | | | | | | 3.02 | | % | | | | | | 2.46 | | % |
| Net interest margin | | | | | | 3.60 | | | | | | | | 3.37 | | |
| |
| |
| | | | | | | Three Months Ended June 30, | | | | |
| | | | | 2008 | | | | | | 2007 | | | | |
| |
| |
| |
| |
| |
| |
| |
|
| | | | | Average | | Average | | | | | | Average | | Average | | |
| Assets | | | | Balance | | Yield/Rate | | | | | | Balance | | Yield/Rate | | |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Loans, net of unearned interest | | $ | | 4,138,271 | | 5.71 | | % | | $ | | 3,918,415 | | 7.00 | | % |
| Securities: | | | | | | | | | | | | | | | | |
| Taxable | | | | 2,349,393 | | 4.34 | | | | | | 1,975,785 | | 4.71 | | |
| Tax-exempt | | | | 762,667 | | 5.29 | | | | | | 708,503 | | 5.05 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total securities | | | | 3,112,060 | | 4.57 | | | | | | 2,684,288 | | 4.80 | | |
| Federal funds and resell agreements | | | | 3,112,060 251,372 | | 2.20 | | | | | | 307,503 | | 5.38 | | |
| Trading securities and other | | | | 41,566 | | 3.41 | | | | | | 67,305 | | 4.14 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total earning assets | | | | 7,543,269 | | 5.11 | | | | | | 6,977,511 | | 6.05 | | |
| Allowance for loan losses | | | | (48,879) | | | | | | | | (44,965) | | | | |
| Other assets | | | | 1,055,688 | | | | | | | | 995,491 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| Total assets | | $ | | 8,550,078 | | | | | | $ | | 7,928,037 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| |
| |
| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | | 4,311,905 | | 1.94 | | % | | $ | | 3,811,967 | | 3.05 | | % |
| Federal funds and repurchase agreements | | | | 1,203,088 | | 1.67 | | | | | | 1,309,594 | | 4.90 | | |
| Borrowed funds | | | | 48,147 | | 4.03 | | | | | | 51,166 | | 4.99 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total interest-bearing liabilities | | | | 5,563,140 | | 1.90 | | | | | | 5,172,727 | | 3.53 | | |
| Noninterest-bearing demand deposits | | | | 1,968,295 | | | | | | | | 1,799,376 | | | | |
| Other liabilities | | | | 98,652 | | | | | | | | 92,829 | | | | |
| Shareholders' equity | | | | 919,991 | | | | | | | | 863,105 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| Total liabilities and shareholders' equity | | $ | | 8,550,078 | | | | | | $ | | 7,928,037 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| Net interest spread | | | | | | 3.21 | | % | | | | | | 2.52 | | % |
| SECOND QUARTER 2008 | | | | | | | | | | | | |
| FINANCIAL HIGHLIGHTS | | | | UMB Financial Corporation | | | | |
| |
| |
| |
| | |
| (unaudited, dollars in thousands, except share and per share data) | | | | | | | | | | |
| |
| Six Months Ended June 30 | | | | 2008 | | | | 2007 | | | | |
| |
| |
| |
| |
| |
| | |
| Net interest income | | $ | | 130,388 | | $ | | 113,819 | | | | |
| Provision for loan losses | | | | 7,850 | | | | 3,500 | | | | |
| Noninterest income | | | | 163,977 | | | | 139,014 | | | | |
| Noninterest expense | | | | 205,594 | | | | 195,747 | | | | |
| Income before income taxes | | | | 80,921 | | | | 53,586 | | | | |
| Net income | | | | 56,080 | | | | 37,387 | | | | |
| Net income per share - Basic | | | | 1.37 | | | | 0.89 | | | | |
| Net income per share - Diluted | | | | 1.36 | | | | 0.89 | | | | |
| Return on average assets | | | | 1.31 | | % | | 0.94 | | % | | |
| Return on average equity | | | | 12.25 | | % | | 8.76 | | % | | |
| |
| Three Months Ended June 30 | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Net interest income | | $ | | 66,011 | | $ | | 56,855 | | | | |
| Provision for loan losses | | | | 4,850 | | | | 2,000 | | | | |
| Noninterest income | | | | 78,988 | | | | 72,326 | | | | |
| Noninterest expense | | | | 106,365 | | | | 98,338 | | | | |
| Income before income taxes | | | | 33,784 | | | | 28,843 | | | | |
| Net income | | | | 23,724 | | | | 20,063 | | | | |
| Net income per share - Basic | | | | 0.58 | | | | 0.48 | | | | |
| Net income per share - Diluted | | | | 0.58 | | | | 0.48 | | | | |
| Return on average assets | | | | 1.12 | | % | | 1.02 | | % | | |
| Return on average equity | | | | 10.37 | | % | | 9.32 | | % | | |
| |
| At June 30 | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Assets | | $ | | 8,806,522 | | $ | | 8,034,044 | | | | |
| Loans, net of unearned interest | | | | 4,106,078 | | | | 3,958,178 | | | | |
| Securities | | | | 3,036,809 | | | | 2,837,021 | | | | |
| Deposits | | | | 6,355,419 | | | | 5,798,495 | | | | |
| Shareholders' equity | | | | 917,013 | | | | 860,428 | | | | |
| Book value per share | | | | 22.40 | | | | 20.44 | | | | |
| Market price per share | | | | 51.27 | | | | 36.87 | | | | |
| Equity to assets | | | | 10.41 | | % | | 10.71 | | % | | |
| Allowance for loan losses | | $ | | 48,101 | | $ | | 45,248 | | | | |
| As a % of loans | | | | 1.17 | | % | | 1.14 | | % | | |
| Nonaccrual and restructured loans | | $ | | 8,192 | | $ | | 7,926 | | | | |
| As a % of loans | | | | 0.20 | | % | | 0.20 | | % | | |
| Loans over 90 days past due | | $ | | 5,724 | | $ | | 1,789 | | | | |
| As a % of loans | | | | 0.14 | | % | | 0.05 | | % | | |
| Other real estate owned | | $ | | 1,381 | | $ | | 270 | | | | |
| Net loan charge-offs quarter-to-date | | $ | | 4,230 | | $ | | 1,515 | | | | |
| As a % of average loans | | | | 0.41 | | % | | 0.16 | | % | | |
| Net loan charge-offs year-to-date | | $ | | 5,735 | | $ | | 3,178 | | | | |
| As a % of average loans | | | | 0.28 | | % | | 0.17 | | % | | |
| |
| Common shares outstanding | | | | 40,935,097 | | | | 42,099,765 | | | | |
| |
| Average Balances | | | | | | | | | | | | |
| Six Months Ended June 30 | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Assets | | $ | | 8,620,068 | | $ | | 8,038,761 | | | | |
| Loans, net of unearned interest | | | | 4,109,000 | | | | 3,892,891 | | | | |
| Securities | | | | 3,136,344 | | | | 2,761,043 | | | | |
| Deposits | | | | 6,227,600 | | | | 5,641,776 | | | | |
| |
| Shareholders' equity | | | | 920,809 | | | | 860,347 | | | | |
| Net interest margin | | | | | | 3.71 | | | | | | 3.43 |
| Selected Financial Data | | | | | | | | | | |
| of Affiliate Banks | | | | | | | | UMB Financial Corporation |
| |
| |
| |
| |
|
| (unaudited, dollars in thousands) | | | | | | June 30, 2008 | | |
| | | | | | | Loans | | | | |
| | | | | | | Net of | | | | |
| | | Total | | | | Unearned | | Total | | Shareholders' |
| Missouri | | Assets | | | | Interest | | Deposits | | Equity |
| |
| |
| |
| |
| |
|
| UMB Bank, n.a. | | $ 7,615,550 | | $ | | 3,296,563 $ | | 5,583,847 $ | | 603,833 |
| |
| Colorado | | | | | | | | | | |
| |
| |
| |
| |
| |
|
| UMB Bank Colorado, n. a. | | 829,532 | | | | 520,807 | | 550,026 | | 123,645 |
| |
| Kansas | | | | | | | | | | |
| |
| |
| |
| |
| |
|
| UMB National Bank of America | | 590,224 | | | | 228,695 | | 407,738 | | 71,298 |
| |
| Arizona | | | | | | | | | | |
| |
| |
| |
| |
| |
|
| UMB Bank Arizona, n. a. | | 72,235 | | | | 71,926 | | 9,938 | | 8,521 |
| |
| 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 | | | | | | | | | | |
