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: Abby Mayer, 816.860.1685
UMB Financial Corporation Reports First Quarter 2009 Earnings of $22.6 million or Diluted Earnings per Share of $0.55
Selected financial highlights:
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·Total deposits increased 17.4 percent·Total loans grew $193 million to $4.3 billion·Net interest income increased 16.8 percent·Net charge-offs of 0.40 percent of average loans·Tier 1 capital ratio remains strong at 13.9 percent
Kansas City, Mo.(April 21, 2009)– UMB Financial Corporation (NASDAQ: UMBF), a financial services holding company, announced earnings for the three months ended March 31, 2009 of $22.6 million or $0.56 per share ($0.55 diluted). This is a decrease of $9.8 million, or 30.1 percent, compared to first quarter 2008 earnings of $32.4 million or $0.79 per share ($0.78 diluted).
Excluding the Visa-related transactions in the first quarter of 2008, net income for the first quarter of 2009 decreased $1.5 million, or 6.2 percent, compared to the same period in 2008. A table reconciling GAAP net income for these items is included with this release.
“2009 is off to a good start for UMB, especially in light of the continued pressure in the overall markets and economy,” commented Mariner Kemper, Chairman and CEO of UMB Financial Corporation. “We are finding tremendous opportunities to grow our franchise. We continue to make loans to new and existing customers. Earnings are down modestly for the first quarter, due primarily to two external forces impacting the industry: continued volatility in the equity markets and a sustained low interest rate environment causing pressure on net interest margin. In spite of all this, by focusing on the things we can control – growing our fee businesses, maximizing efficiencies, growing loans and deposits, managing our capital base and deliveringthe unparalleled customer experience –we are well positioned to ride out the storm. We continue to run the company for the long term, rather than for the quarter.”
Net Interest Income and Margin
Net interest income for the first quarter of 2009 increased $10.8 million, or 16.8 percent, compared to the same period in 2008 due primarily to a higher volume of average earning assets. Average earning assets increased by $1.7 billion, or 21.7 percent, compared to the first quarter of 2008. This increase was due to a $333.3 million, or 8.2 percent, increase in average loans and a $1.4 billion, or 42.8 percent, increase in total securities, including trading securities. Net interest margin decreased 11 basis points to 3.39 percent for the three months ended March 31, 2009 compared to the same quarter in 2008. The net interest margin decrease was a result of a 43 basis point reduction in the benefit of interest-free funds over the first quarter of 2008.
Noninterest Income and Expense
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Noninterest income decreased $16.1 million, or 18.9 percent, for the three months ended March 31, 2009 compared to the same period in 2008. Trust and securities processing income decreased $6.3 million, or 20.3 percent, for the three months ended March 31, 2009 compared to the same period in 2008. This decrease was primarily due to a $2.2 million, or 25.2 percent, decrease in fee income from UMB Scout Funds and a $3.5 million, or 29.2 percent, decrease in fund administration and custody services. In the first quarter of 2008, 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 initial public offering. Excluding this redemption gain on the Visa transaction, noninterest income decreased 9.5 percent.
“The wild ride for U.S. domestic and international equity markets continued in the first quarter of 2009, and we believe this will continue throughout the year. These unprecedented times have negatively impacted income from our Asset Management and Fund Services businesses. However, we will continue to invest in these businesses because we like the business model and expect them to drive a strong, reliable earnings stream over the long term,” said Peter deSilva, President and Chief Operating Officer. “During the first quarter, we acted quickly on several market opportunities to add high caliber associates across UMB and will continue to do so as opportunities present themselves. Our Healthcare Services business continues to be a strong performer, with deposits and assets growing 38.1 percent during the quarter.”
Non-interest expense increased $7.4 million, or 7.5 percent, for the three months ended March 31, 2009 compared to the same period in 2008. Salary expense increased by $3.0 million, or 5.4 percent, mostly due to higher employee base salaries, higher commissions and bonuses and higher cost of benefits. Bankcard expense increased $1.1 million, or 38.5 percent, primarily due to an increase in card administration fees. Processing fees decreased $0.7 million, or 8.8 percent, due to decreased third-party custodian fees related to international transactions from mutual fund clients and fees paid by the advisor to third-party distributors of the UMB Scout Funds. Marketing and business development expense decreased $0.7 million, or 18.0 percent, due to several strategic campaigns initiated in 2008 designed to acquire new customers and ensure existing customer confidence. 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 of 2008. Excluding this transaction, noninterest expense increased 3.3 percent.
Balance Sheet
Average total assets for the three months ended March 31, 2009 were $10.2 billion compared to $8.7 billion for the same period in 2008, an increase of $1.5 billion, or 17.9 percent. Average earning assets increased by $1.7 billion for the period, or 21.7 percent.
Actual loan balances on March 31, 2009 were $4.3 billion, compared to $4.1 billion on March 31, 2008. These balances were as follows:
| | | | | | | | | Percent |
| Loans by Category (in thousands) | | March 31, 2009 | | March 31, 2008 | | Change | | Change |
| Commercial, financial and agricultural | | $2,060,464 | | $2,009,749 | | $50,715 | | 2.5% |
| Real estate construction | | 95,605 | | 81,545 | | 14,060 | | 17.2% |
| Consumer | | 517,100 | | 714,623 | | (197,523) | | (27.6)% |
| Real estate | | 1,624,979 | | 1,301,782 | | 323,197 | | 24.8% |
| Leases | | 8,621 | | 6,110 | | 2,511 | | 41.1% |
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| Loans before loans held for sale | | 4,306,769 | | 4,113,809 | | 192,960 | | 4.7% |
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| Loans held for sale | | 34,799 | | 18,262 | | 16,537 | | 90.6% |
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| Total loans and loans held for sale | | $4,341,568 | | $4,132,071 | | $209,497 | | 5.1% |
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Nonperforming loans increased to $14.6 million at March 31, 2009 from $5.1 million at March 31, 2008. As a percentage of total loans, nonperforming loans increased to 0.34 percent of loans as of March 31, 2009 compared to 0.12 percent at March 31, 2008. Nonperforming loans are defined as nonaccrual loans and restructured loans. By comparison, the industry average for nonperforming loans as of December 31, 2008 was 2.92 percent. The company’s allowance for loan losses totaled
$54.0 million, or 1.25 percent of loans before loans held for sale as of March 31, 2009 compared to $47.5 million, or 1.15 percent of total loans as of March 31, 2008.
For the three months ended March 31, 2009, average securities, including trading securities totaled $4.6 billion. This is an increase of $1.4 billion, or 42.8 percent, from the same period in 2008. Average federal funds sold and resell agreements for the first quarter decreased $419.2 million, or 82.9 percent, from the same period in 2008 to $86.5 million.
Average total deposits increased $1.3 billion, or 20.6 percent, to $7.4 billion for the three months ended March 31, 2009 compared to the same period in 2008. The increase in deposits came primarily from our public funds, mutual funds, treasury management accounts, and personal accounts.Average savings accounts increased $585.9 million for the three months ended March 31, 2009 as compared to 2008. Average money market accounts increased by $231.4 million, or 18.8 percent, in 2009 as compared to 2008. Average noninterest-bearing demand deposits increased $418.8 million, or 22.9 percent, compared to 2008. Total deposits as of March 31, 2009 were $7.6 billion, compared to $6.5 billion at March 31, 2008, a 17.4 percent increase.
“As our results indicate, we are growing deposits and putting those funds to good use. Low cost of funds in this environment has been paramount to driving net income,” said Mike Hagedorn, Chief Financial Officer. “Net interest income grew nearly 17 percent this quarter, making it just over 52 percent of total revenue. The significant balance sheet increases we experienced, even with a reduction in our net interest margin, drove our net interest income gains this quarter. We continue to focus on both sides of the balance sheet, putting on more earning assets and maintaining strong liquidity.”
As of March 31, 2009, UMB had total shareholders’ equity of $985.0 million, a 6.6 percent increase from the same period last year. For the three months ended March 31, 2009, the company repurchased 341,664 shares at an average price of $36.42 per share for a total cost of $12.4 million.
The company plans to host a conference call to discuss its first quarter financial results on April 22, 2009, at 8:30 a.m. (CDT). Interested parties may access the call by dialing U.S. (toll-free) 800.240.4186, by following the Web link to the live call: http://w.on24.com/r.htm?e=140483&s=1&k=B1CB3AF8D53A2A49B6CB6B473EDFED2B or by visiting umb.com to access the link to the live call.
A replay of the conference call may be heard until May 6, 2009, by calling U.S./Canada (toll-free) 800.405.2236 or 303.590.3000. The replay pass code required for playback is conference 11128783#. 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, our ability to integrate acquisitions 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 financial services 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 138 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.
NON-GAAP RECONCILIATION SCHEDULE
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UMB Financial Corporation
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(all dollars in thousands) (unaudited)
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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, |
| | | | | 2009 | | | | 2008 |
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| Net interest income after provision for loan losses | | $ | | 69,209 | | $ | | 61,374 |
| Noninterest income | | | | 68,909 | | | | 84,989 |
| Noninterest expense | | | | 106,644 | | | | 99,226 |
| Income tax provision | | | | 8,873 | | | | 14,781 |
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| Net income | | | | 22,601 | | | | 32,356 |
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| Adjustments | | | | | | | | |
| Noninterest income | | | | | | | | |
| Gain on mandatory redemption of Visa, Inc. | | | | | | | | |
| class B common stock | | | | - | | | | (8,875) |
| Noninterest expense | | | | | | | | |
| Covered litigation provision | | | | - | | | | (4,023) |
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| Total Adjustments pre-tax | | | | - | | | | (12,898) |
| Income tax provision | | | | - | | | | (4,643) |
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| After tax adjustments to GAAP | | | | - | | | | (8,255) |
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| Adjusted net income | | $ | | 22,601 | | $ | | 24,101 |
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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 |
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| (unaudited, dollars in thousands) | | | | | | |
| | | | | March 31, | | |
| Assets | | | | 2009 | | 2008 |
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| Loans | | $ | | 4,306,769 $ | | 4,113,809 |
| Allowance for loan losses | | | | (54,005) | | | | (47,481) |
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| Net loans | | | | 4,252,764 | | | | 4,066,328 |
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| Loans held for sale | | | | 34,799 | | | | 18,262 |
| Investment Securities: | | | | | | | | |
| Available for sale | | | | 4,071,584 | | | | 3,002,325 |
| Held to maturity | | | | 49,240 | | | | 39,502 |
| Trading securities | | | | 36,510 | | | | 27,133 |
| Non-marketable | | | | 21,614 | | | | 19,186 |
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| Total investment securities | | | | 4,178,948 | | | | 3,088,146 |
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| Federal funds and resell agreements | | | | 51,834 | | | | 628,857 |
| Interest-bearing due from banks | | | | 928,471 | | | | - |
| Cash and due from banks | | | | 351,722 | | | | 682,533 |
| Bank premises and equipment, net | | | | 221,622 | | | | 229,951 |
| Accrued income | | | | 61,783 | | | | 62,410 |
| Goodwill | | | | 104,914 | | | | 94,512 |
| Other intangibles | | | | 17,125 | | | | 15,742 |
| Other assets | | | | 42,876 | | | | 48,676 |
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| Total assets | | $ | | 10,246,858 | | $ | | 8,935,417 |
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| Liabilities | | | | | | | | |
| Deposits: | | | | | | | | |
| Noninterest-bearing demand | | $ | | 2,614,082 | | $ | | 2,210,944 |
| Interest-bearing demand and savings | | | | 3,604,529 | | | | 2,857,861 |
| Time deposits under $100,000 | | | | 763,723 | | | | 908,510 |
| Time deposits of $100,000 or more | | | | 694,479 | | | | 559,617 |
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| Total deposits | | | | 7,676,813 | | | | 6,536,932 |
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| Federal funds and repurchase agreements | | | | 1,414,239 | | | | 1,299,752 |
| Short-term debt | | | | 27,161 | | | | 15,154 |
| Long-term debt | | | | 34,759 | | | | 35,029 |
| Accrued expenses and taxes | | | | 80,107 | | | | 86,894 |
| Other liabilities | | | | 28,795 | | | | 37,857 |
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| Total liabilities | | | | 9,261,874 | | | | 8,011,618 |
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| Shareholders' Equity | | | | | | | | |
| Common stock | | | | 55,057 | | | | 55,057 |
| Capital surplus | | | | 708,044 | | | | 703,429 |
| Retained earnings | | | | 517,486 | | | | 457,028 |
| Accumulated other comprehensive income | | | | 46,475 | | | | 36,136 |
| Treasury stock | | | | (342,078) | | | | (327,851) |
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| Total shareholders' equity | | | | 984,984 | | | | 923,799 |
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| Total liabilities and shareholders' equity | | $ | | 10,246,858 | | $ | | 8,935,417 |
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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 |
| | | | | March 31, | | |
| Interest Income | | | | 2009 | | | | 2008 |
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| Loans | | $ | | 52,800 | | $ | | 64,638 |
| Securities: | | | | | | | | |
| Taxable interest | | | | 29,122 | | | | 27,463 |
| Tax-exempt interest | | | | 7,020 | | | | 6,614 |
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| Total securities income | | | | 36,142 | | | | 34,077 |
| Federal funds and resell agreements | | | | 130 | | | | 4,087 |
| Interest-bearing due from banks | | | | 842 | | | | - |
| Trading securities | | | | 168 | | | | 312 |
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| Total interest income | | | | 90,082 | | | | 103,114 |
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| Interest Expense | | | | | | | | |
| Deposits | | | | 13,823 | | | | 27,950 |
| Federal funds and repurchase agreements | | | | 660 | | | | 10,282 |
| Short-term debt | | | | - | | | | 92 |
| Long-term debt | | | | 390 | | | | 416 |
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| Total interest expense | | | | 14,873 | | | | 38,740 |
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| Net interest income | | | | 75,209 | | | | 64,374 |
| Provision for loan losses | | | | 6,000 | | | | 3,000 |
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| Net interest income after provision for loan losses | | | | 69,209 | | | | 61,374 |
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| Noninterest Income | | | | | | | | |
| Trust and securities processing | | | | 24,899 | | | | 31,231 |
| Trading and investment banking | | | | 4,861 | | | | 5,514 |
| Service charges on deposits | | | | 20,795 | | | | 20,622 |
| Insurance fees and commissions | | | | 1,570 | | | | 1,140 |
| Brokerage fees | | | | 2,352 | | | | 2,094 |
| Bankcard fees | | | | 10,947 | | | | 10,721 |
| Gains on sale of securities available for sale, net | | | | 42 | | | | 382 |
| Gain on mandatory redemption of Visa, Inc. class B common | | | | - | | | | 8,875 |
| stock | | | | | | | | |
| Other | | | | 3,443 | | | | 4,410 |
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| Total noninterest income | | | | 68,909 | | | | 84,989 |
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| Noninterest Expense | | | | | | | | |
| Salaries and employee benefits | | | | 57,996 | | | | 55,041 |
| Occupancy, net | | | | 8,144 | | | | 7,647 |
| Equipment | | | | 12,996 | | | | 13,282 |
| Supplies and services | | | | 5,377 | | | | 5,862 |
| Marketing and business development | | | | 3,191 | | | | 3,890 |
| Processing fees | | | | 7,004 | | | | 7,676 |
| Legal and consulting | | | | 1,548 | | | | 1,103 |
| Bankcard | | | | 3,957 | | | | 2,857 |
| Amortization of other intangibles | | | | 976 | | | | 721 |
| Covered litigation provision | | | | - | | | | (4,023) |
| Other | | | | 5,455 | | | | 5,170 |
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| Total noninterest expense | | | | 106,644 | | | | 99,226 |
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| Income before income taxes | | | | 31,474 | | | | 47,137 |
| Income tax provision | | | | 8,873 | | | | 14,781 |
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| Net income | | $ | | 22,601 | | $ | | 32,356 |
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| Per Share Data | | | | | | | | |
| Net income - basic | | $ | | 0.56 | | $ | | 0.79 |
| Net income - diluted | | | | 0.55 | | | | 0.78 |
| Dividends | | | | 0.175 | | | | 0.15 |
| Weighted average shares outstanding | | | | 40,598,097 | | | | 40,977,349 |
| Consolidated Statements of | | | | | | | | | | | | | | | | | | | | | | |
| Shareholders' Equity | | | | | | | | | | | | | | | | | | UMB Financial Corporation |
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| (unaudited, dollars in thousands, except per share data) | | | | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | | | | Accumulated | | | | | | |
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| | | | | Common | | | | Capital | | | | Retained | | | | Comprehensive | | Treasury | | | | |
| | | | | Stock | | | | Surplus | | | | Earnings | | | | Income (Loss) | | Stock | | | | Total |
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| Balance - January 1, 2008 | | $ | | 55,057 | | $ | | 702,914 | | $ | | 430,824 | | $ | | 12,246 | | $ (310,467) | | $ | | 890,574 |
| Comprehensive income | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | - | | | | - | | | | 32,356 | | | | - | | - | | | | 32,356 |
| Change in unrealized gains on | | | | | | | | | | | | | | | | | | | | | | |
| securities | | | | - | | | | - | | | | - | | | | 23,890 | | - | | | | 23,890 |
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| Total comprehensive income | | | | | | | | | | | | | | | | | | | | | | 52,246 |
| Cash dividends ($0.15 per share) | | | | - | | | | - | | | | (6,152) | | | | - | | - | | | | (6,152) |
| Purchase of treasury stock | | | | - | | | | - | | | | - | | | | - | | (18,594) | | | | (18,594) |
| Issuance of equity awards | | | | - | | | | (728) | | | | - | | | | - | | 869 | | | | 140 |
| Recognition of equity 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 |
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| Balance – March 31,2008 | | $ | | 55,057 | | $ | | 703,429 | | $ | | 457,028 | | $ | | 36,136 | | $ (327,851) | | $ | | 923,799 |
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| Balance - January 1, 2009 | | $ | | 55,057 | | $ | | 707,813 | | $ | | 502,073 | | $ | | 41,105 | | $ (331,236) | | $ | | 974,811 |
| Comprehensive income | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | - | | | | - | | | | 22,601 | | | | - | | - | | | | 22,601 |
| Change in unrealized gains on | | | | | | | | | | | | | | | | | | | | | | |
| securities | | | | - | | | | - | | | | - | | | | 5,370 | | - | | | | 5,370 |
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| Total comprehensive income | | | | | | | | | | | | | | | | | | | | | | 27,971 |
| Cash dividends ($0.175 per share) | | | | - | | | | - | | | | (7,188) | | | | - | | - | | | | (7,188) |
| Purchase of treasury stock | | | | - | | | | - | | | | - | | | | - | | (12,443) | | | | (12,443) |
| Issuance of equity awards | | | | - | | | | (1,261) | | | | - | | | | - | | 1,393 | | | | 132 |
| Recognition of equity based | | | | | | | | | | | | | | | | | | | | | | |
| compensation | | | | - | | | | 1,202 | | | | - | | | | - | | - | | | | 1,202 |
| Net tax benefit related to equity | | | | | | | | | | | | | | | | | | | | | | |
| compensation plans | | | | - | | | | 58 | | | | - | | | | - | | - | | | | 58 |
| Sale of treasury stock | | | | - | | | | 114 | | | | - | | | | - | | 54 | | | | 168 |
| Exercise of stock options | | | | - | | | | 119 | | | | - | | | | - | | 154 | | | | 273 |
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| Balance – March 31, 2009 | | $ | | 55,057 | | $ | | 708,044 | | $ | | 517,486 | | $ | | 46,475 | | $ (342,078) | | $ | | 984,984 |
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| Average Balances / Yields and Rates | | | | | | UMB Financial Corporation | | | | |
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| (tax - equivalent basis) | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| (unaudited, dollars in thousands) | | | | Three Months Ended March 31, | | | | |
| | | 2009 | | | | | | 2008 | | | | |
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| | | Average | | Average | | | | | | Average | | Average | | |
| Assets | | Balance | | Yield/Rate | | | | | | Balance | | Yield/Rate | | |
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| Loans, net of unearned interest | | $ 4,413,064 | | 4.86 | | % | | $ | | 4,079,731 | | 6.38 | | % |
| Securities: | | | | | | | | | | | | | | |
| Taxable | | 3,685,760 | | 3.20 | | | | | | 2,394,220 | | 4.61 | | |
| Tax-exempt | | 853,703 | | 5.18 | | | | | | 766,409 | | 5.21 | | |
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| Total securities | | 4,539,463 | | 3.58 | | | | | | 3,160,629 | | 4.76 | | |
| Federal funds and resell agreements | | 86,452 | | 0.61 | | | | | | 505,669 | | 3.25 | | |
| Interest-bearing due from banks | | 408,177 | | 0.84 | | | | | | - | | - | | |
| Trading securities | | 31,346 | | 2.39 | | | | | | 40,192 | | 3.48 | | |
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| | | | | |
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| Total earning assets | | 9,478,502 | | 4.02 | | | | | | 7,786,221 | | 5.50 | | |
| Allowance for loan losses | | (53,615) | | | | | | | | (47,008) | | | | |
| Other assets | | 821,415 | | | | | | | | 950,845 | | | | |
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| Total assets | | $ 10,246,302 | | | | | | $ | | 8,690,058 | | | | |
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| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ 5,197,118 | | 1.08 | | % | | $ | | 4,344,963 | | 2.59 | | % |
| Federal funds and repurchase agreements | | 1,659,010 | | 0.16 | | | | | | 1,446,142 | | 2.86 | | |
| Borrowed funds | | 52,219 | | 3.03 | | | | | | 49,325 | | 4.14 | | |
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| Total interest-bearing liabilities | | 6,908,347 | | 0.87 | | | | | | 5,840,430 | | 2.67 | | |
| Noninterest-bearing demand deposits | | 2,248,865 | | | | | | | | 1,830,036 | | | | |
| Other liabilities | | 96,252 | | | | | | | | 97,964 | | | | |
| Shareholders' equity | | 992,838 | | | | | | | | 921,628 | | | | |
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| Total liabilities and shareholders' equity | | $ 10,246,302 | | | | | | $ | | 8,690,058 | | | | |
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| Net interest spread | | | | 3.15 | | % | | | | | | 2.83 | | % |
| Net interest margin | | | | 3.39 | | | | | | | | 3.50 | | |
| FIRST QUARTER 2009 | | | | | | | | | | | | |
| FINANCIAL HIGHLIGHTS | | | | UMB Financial Corporation | | |
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| (unaudited, dollars in thousands, except share and per share data) | | | | | | | | | | |
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| Three Months Ended March 31 | | | | 2009 | | | | | | 2008 | | |
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| Net interest income | | $ | | 75,209 | | | | $ | | 64,374 | | |
| Provision for loan losses | | | | 6,000 | | | | | | 3,000 | | |
| Noninterest income | | | | 68,909 | | | | | | 84,989 | | |
| Noninterest expense | | | | 106,644 | | | | | | 99,226 | | |
| Income before income taxes | | | | 31,474 | | | | | | 47,137 | | |
| Net income | | | | 22,601 | | | | | | 32,356 | | |
| Net income per share - Basic | | | | 0.56 | | | | | | 0.79 | | |
| Net income per share - Diluted | | | | 0.55 | | | | | | 0.78 | | |
| Return on average assets | | | | 0.89 | | % | | | | 1.50 | | % |
| Return on average equity | | | | 9.23 | | % | | | | 14.12 | | % |
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| At March 31 | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Assets | | $ | | 10,246,858 | | | | $ | | 8,935,417 | | |
| Loans, net of unearned interest | | | | 4,306,769 | | | | | | 4,113.809 | | |
| Securities | | | | 4,178,948 | | | | | | 3,088,146 | | |
| Deposits | | | | 7,676,813 | | | | | | 6,536,932 | | |
| Shareholders' equity | | | | 984,984 | | | | | | 923,799 | | |
| Book value per share | | | | 24.19 | | | | | | 22.57 | | |
| Market price per share | | | | 42.49 | | | | | | 41.20 | | |
| Equity to assets | | | | 9.61 | | % | | | | 10.34 | | % |
| Allowance for loan losses | | $ | | 54,005 | | | | $ | | 47,481 | | |
| As a % of loans | | | | 1.25 | | % | | | | 1.15 | | % |
| Nonaccrual and restructured loans | | $ | | 14,648 | | | | $ | | 5,054 | | |
| As a % of loans | | | | 0.34 | | % | | | | 0.12 | | % |
| Loans over 90 days past due | | $ | | 6,658 | | | | $ | | 3,634 | | |
| As a % of loans | | | | 0.15 | | % | | | | 0.09 | | % |
| Other real estate owned | | $ | | 1,905 | | | | $ | | 310 | | |
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| Net loan charge-offs quarter-to-date | | $ | | 4,292 | | | | $ | | 1,505 | | |
| As a % of average loans | | | | 0.40 | | % | | | | 0.15 | | % |
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| Common shares outstanding | | | | 40,720,210 | | | | | | 40,932,607 | | |
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| Average Balances | | | | | | | | | | | | |
| Three Months ended March 31 | | | | | | | | | | | | |
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| Assets | | $ | | 10,246,302 | | | | $ | | 8,690,058 | | |
| Loans, net of unearned interest | | | | 4,413,064 | | | | | | 4,079,731 | | |
| Securities | | | | 4,539,463 | | | | | | 3,160,629 | | |
| Deposits | | | | 7,445,983 | | | | | | 6,174,999 | | |
| Shareholders' equity | | | | 992,838 | | | | | | 921,628 | | |
| Selected Financial Data | | | | | | | | | | |
| of Affiliate Banks | | | | | | | | UMB Financial Corporation |
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| (unaudited, dollars in thousands) | | | | | | March 31, 2009 | | |
| | | | | | | Loans | | | | |
| | | | | | | Net of | | | | |
| | | Total | | | | Unearned | | Total | | Shareholders' |
| Missouri | | Assets | | | | Interest | | Deposits | | Equity |
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| UMB Bank, n.a. | | $ 8,698,421 | | $ | | 3,511,978 $ | | 6,629,679 $ | | 635,056 |
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| Colorado | | | | | | | | | | |
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| UMB Bank Colorado, n. a. | | 932,463 | | | | 534,425 | | 735,805 | | 155,192 |
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| Kansas | | | | | | | | | | |
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| UMB National Bank of America | | 650,503 | | | | 215,819 | | 368,742 | | 63,744 |
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| Arizona | | | | | | | | | | |
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| UMB Bank Arizona, n. a. | | 88,704 | | | | 75,915 | | 29,107 | | 8,823 |
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| Banking - Related Subsidiaries | | | | | | | | | | |
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| 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. | | | | | | | | | | |
| Kansas City Realty Company | | | | | | | | | | |
| Kansas City Financial Corporation | | | | | | | | | | |
| UMB Redevelopment Corporation | | | | | | | | | | |
| UMB Realty Company, LLC | | | | | | | | | | |
| Grand Distribution Services, LLC | | | | | | | | | | |
| UMB Distribution Service, LLC | | | | | | | | | | |
