UMB Financial Corporation
|
1010 Grand Boulevard
Kansas City, MO 64106
816.860.7000
umb.com
|
//FOR IMMEDIATE RELEASE//
Contact: Mandie Nelson, 816.860.5088
Investor Relations Contact: Abby Mayer, 816.860.1685
|
UMB Financial Corporation Reports Second Quarter 2009 Earnings Per Share of $0.47
Selected financial highlights:
|
| · | Average loan balances increased $295.3 million, or 7.1 percent, to $4.4 billion |
| |
| · | Nonperforming loans of 0.33 percent of loans |
| |
| · | Average total deposits increased 21.0 percent |
| |
| · | Net interest income increased 12.4 percent |
| |
| · | Tier 1 capital ratio remains strong at 13.4 percent |
| |
Kansas City, Mo.(July 21, 2009)– UMB Financial Corporation (NASDAQ: UMBF), a financial services holding company, announced earnings for the three months ended June 30, 2009 of $19.0 million or $0.47 per share ($0.47 diluted). This is a decrease of $4.7 million, or 19.8 percent, compared to second quarter 2008 earnings of $23.7 million or $0.58 per share ($0.58 diluted). This decrease is the result of an increase in regulatory fees of $4.6 million after-tax. These regulatory fees include the Federal Deposit Insurance Corporation (FDIC) special assessment, the increase in routine quarterly FDIC assessments and the expenses related to the Transaction Account Guarantee Program (TAGP).
Earnings for the six months ended June 30, 2009 were $41.6 million or $1.03 per share ($1.02 diluted). This is a decrease of $14.5 million, or 25.8 percent, compared to the prior year earnings of $56.1 million or $1.37 per share ($1.36 diluted). Excluding the Visa-related transactions in the first quarter of 2008, net income for the first six months of 2009 decreased $6.2 million, or 13.0 percent, compared to the same period in 2008. The previously mentioned regulatory fees were $5.3 million after tax, which represents the majority of the remaining decrease. A table reconciling GAAP net income for the Visa-related transactions is included with this release.
“The majority of the change to our earnings this quarter compared to the second quarter of 2008 is the regulatory fees levied on insured banks,” commented Mariner Kemper, Chairman and CEO of UMB Financial Corporation. “These fees, including a higher FDIC base assessment and an additional special assessment, represent 86 percent of the decline in net income year-over-year. It’s unfortunate that banks like UMB that did not contribute to the financial crisis must share in this burden, but we understand our responsibility to the industry. We remain focused on factors we can control: investing in our fee businesses, maximizing efficiencies, growing loans and deposits, managing our capital base and deliveringtheunparalleled customer experience.”
Net Interest Income and Margin
Net interest income for the second quarter of 2009 increased $8.2 million, or 12.4 percent, compared to the same period in 2008 due primarily to a higher volume of average earning assets. Average earning assets increased by $1.6 billion, or 21.6 percent, compared to the second quarter of 2008. This increase was due to
a $295.3 million, or 7.1 percent, increase in average loans and a $996.7 million, or 31.6 percent, increase in total securities, including trading securities. Net interest margin decreased 29 basis points to 3.42 percent for the three months ended June 30, 2009 compared to the same quarter in 2008. The net interest margin decrease was a result of a 25 basis point reduction in the benefit of interest-free funds over the second quarter of 2008.
Noninterest Income and Expense
Noninterest income decreased $1.7 million, or 2.1 percent, for the three months ended June 30, 2009 compared to the same period in 2008. Trust and securities processing income decreased $4.5 million, or 13.6 percent, for the three months ended June 30, 2009 compared to the same period in 2008. This decrease was primarily due to a $2.4 million, or 24.4 percent, decrease in fee income from the Scout Funds and a $1.0 million, or 7.8 percent, decrease in fund administration and custody services. Trading and investment banking income increased $2.6 million, or 41.4 percent, primarily due to increased fixed income trading volume.
Non-interest expense increased $12.5 million, or 11.8 percent, for the three months ended June 30, 2009 compared to the same period in 2008. Salary expense increased by $4.5 million, or 8.2 percent, mostly due to higher employee base salaries, higher commissions and bonuses and higher cost of benefits. Equipment expense decreased by $1.2 million, or 9.0 percent, due to lower depreciation expense and amortization expense of equipment and software. Regulatory fees increased $7.2 million, or 998.3 percent, primarily due to increased deposit insurance assessments from the FDIC.
“Revenue diversity is a key strength for UMB, as demonstrated through our near even split between fee income and net interest income in the second quarter 2009. During the quarter, we made three acquisitions that generate fee income: J.D. Clark & Company, an alternative investments service provider with $18 billion in assets under administration; TrendStar, an investment advisor based in Kansas City; and Harris Bank’s Indiana corporate trust portfolio,” said Peter deSilva, President and Chief Operating Officer. “We’re pleased to be building out these important lines of business for the company. Throughout the quarter, we added key sales associates in Asset Management, Brokerage and Commercial Lending. These additions are expected to contribute to our growth in future quarters. We remain opportunistic as it relates to acquiring talent despite the challenging environment.”
Balance Sheet
Average total assets for the three months ended June 30, 2009 were $10.0 billion compared to $8.6 billion for the same period in 2008, an increase of $1.4 billion, or 17.0 percent. Average earning assets increased by $1.6 billion for the period, or 21.6 percent.
Actual loan balances on June 30, 2009 were $4.3 billion, compared to $4.1 billion on June 30, 2008. Real estate loans increased $317.3 million, or 23.1 percent, due to increases in commercial real estate and home equity loans. Consumer loans decreased $183.0 million, or 27.7 percent, due to the continued reduction in indirect auto loans as we exit the market. Average loan balances for the three months ended June 30, 2009 increased $295.3 million, or 7.1 percent, to $4.4 billion from $4.1 billion for the three months ended June 30, 2008.
Nonperforming loans increased to $14.1 million at June 30, 2009 from $8.2 million at June 30, 2008. As a percentage of loans, nonperforming loans increased to 0.33 percent as of June 30, 2009 compared to 0.20 percent at June 30, 2008. Nonperforming loans are defined as nonaccrual loans and restructured loans. By comparison, the industry average for nonperforming loans as of March 31, 2009 was 2.44 percent. The company’s allowance for loan losses totaled $55.1 million, or 1.27 percent of loans as of June 30, 2009 compared to $48.1 million, or 1.17 percent of loans as of June 30, 2008.
For the three months ended June 30, 2009, average securities, including trading securities, totaled $4.2 billion. This is an increase of $996.7 million, or 31.6 percent, from the same period in 2008. Average federal funds sold and resell agreements for the second quarter decreased $205.4 million, or 81.7 percent, from the same period in 2008 to $46.0 million.
Average total deposits increased $1.3 billion, or 21.0 percent, to $7.6 billion for the three months ended June 30, 2009 compared to the same period in 2008. The increase in deposits came primarily from our public funds, mutual funds, treasury management accounts, and savings accounts.Average savings accounts increased $528.9 million for the three months ended June 30, 2009 as compared to 2008. Average money market accounts increased by $136.0 million, or 10.5 percent, in 2009 as compared to 2008. Average noninterest-bearing demand deposits increased $483.7 million, or 24.6 percent, compared to 2008. Total deposits as of June 30, 2009 were $7.7 billion, compared to $6.4 billion at June 30, 2008, a 20.7 percent increase.
“At a time when many financial services companies’ capital ratios are under stress, UMB continues to maintain a disciplined approach to growing both sides of our balance sheet,” said Mike Hagedorn, Chief Financial Officer. “We are growing loans and deposits, maintaining our dividend, repurchasing shares, making acquisitions, and increasing our provision all while growing shareholder equity.”
As of June 30, 2009, UMB had total shareholders’ equity of $992.0 million, which was an increase of 8.2 percent, over June 30, 2008. For the three months ended June 30, 2009, the company repurchased 121,283shares at an average price of $40.03 per share for a total cost of $4.9 million. The company declared its regular quarterly cash dividend of $0.175 cents per share to be paid on October 1, 2009, to shareholders of record at the close of business on September 10, 2009.
Year-to-Date
Earnings for the six months ended June 30, 2009 were $41.6 million or $1.03 per share ($1.02 diluted). This is a decrease of $14.5 million, or 25.8 percent, compared to the prior year-to-date earnings of $56.1 million or $1.37 per share ($1.36 diluted).
Excluding the Visa-related transactions in the first quarter of 2008, net income for the six months ended June 30, 2009 decreased $6.2 million, or 13.0 percent, compared to the same period in 2008. Regulatory fees were $5.3 million after tax, which represents the majority of the remaining decrease. A table reconciling GAAP net income for the Visa-related items is included with this release.
Net interest income for the six months ended June 30, 2009 increased $19.0 million, or 14.6 percent, compared to the same period in 2008 due primarily to higher average earning assets. Net interest margin decreased to 3.41 percent for the six months ended June 30, 2008 as compared to 3.60 percent for the same period in 2008.
Noninterest income decreased $17.7 million, or 10.8 percent, to $146.2 million for the six months ended June 30, 2009 as compared to the same period in 2008. The decrease is primarily attributable to lower trust and securities processing income offset by an increase in trading and investment banking income. Trust and securities processing income decreased $10.8 million, or 16.8 percent, for year-to-date June 30, 2009 as compared to the same period in 2008. Trading and investment banking income was $2.0 million, or 16.6 percent, higher for the six months ended June 30, 2009. As a direct result of Visa, Inc.’s (Visa) Initial Public Offering (IPO) during the first quarter of 2008, 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 of 2008 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 its IPO process.
Noninterest expense increased $19.9 million, or 9.7 percent, for the six months ended June 30, 2009 compared to the same period in 2008. Salary expense increased by $7.4 million, or 6.8 percent, mostly due to higher employee base salaries, higher commissions and bonuses and higher cost of benefits. Regulatory fees increased $8.4 million, or 655.1 percent, primarily due to increased deposit insurance assessments from the FDIC and the $4.8 million accrued for a special assessment payable to the FDIC in the third quarter of 2009. Bankcard expense increased $1.4 million, or 25.7 percent, from the same period in 2008 due to increased processing costs. Processing fees decreased by $1.5 million, or 9.0 percent, due to decreased third-party custodian fees related to international transactions from mutual fund clients and sub-transfer agency fees paid for the shareholder servicing of the 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 of 2008.
The company plans to host a conference call to discuss its second quarter financial results on July 22, 2009, at 8:30 a.m. (CDT). Interested parties may access the call by dialing U.S. (toll-free) 877-941-2332 or access the following Web link to the live call: http://w.on24.com/r.htm?e=153028&s=1&k=9ED6ADE4EDB80B786EF8592C10D8547B or visit umb.com.
A replay of the conference call may be heard until August 5, 2009, by calling (toll-free) 800-406-7325 or (U.S.) 303-590-3030. The replay pass code required for playback is conference ID 4098279. 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 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 a mutual fund and alternative investments services group based in Milwaukee, Wisconsin, single-purpose companies that deal with brokerage services and insurance, and Scout Investment Advisors 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 | | | | Three Months | | | | Six Months | | | | Six Months |
| | | | | Ended | | | | Ended | | | | Ended | | | | Ended |
| | | | | June 30, | | | | June 30, | | | | June 30, | | | | June 30, |
| | | | | 2009 | | | | 2008 | | | | 2009 | | | | 2008 |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Net interest income after provision | | $ | | 67,874 | | $ | | 61,161 | | $ | | 137,081 | | $ | | 122,538 |
| Noninterest income | | | | 77,323 | | | | 78,988 | | | | 146,233 | | | | 163,977 |
| Noninterest expense | | | | 118,880 | | | | 106,365 | | | | 225,523 | | | | 205,594 |
| Income tax provision | | | | 7,290 | | | | 10,060 | | | | 16,163 | | | | 24,841 |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Net income after taxes | | | | 19,027 | | | | 23,724 | | | | 41,628 | | | | 56,080 |
| |
| 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) |
| Less: Income taxes | | | | - | | | | - | | | | - | | | | (4,643) |
| |
| |
| |
| |
| |
| |
| |
| |
|
| After tax adjustments to GAAP | | | | - | | | | - | | | | - | | | | (8,255) |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Adjusted net income | | $ | | 19,027 | | $ | | 23,724 | | $ | | 41,628 | | $ | | 47,825 |
| |
| |
| |
| |
| |
| |
| |
| |
|
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 |
| |
| |
|
| (unaudited, dollars in thousands) | | | | | | |
| | | | | June 30, | | |
| Assets | | | | 2009 | | 2008 |
| |
| |
| |
|
| |
| Loans | | $ | | 4,331,887 $ | | 4,106,078 |
| Allowance for loan losses | | | | (55,109) | | (48,101) |
| |
| |
| |
|
| Net loans | | | | 4,276,778 | | 4,057,977 |
| |
| |
| |
|
| Loans held for sale | | | | 38,060 | | 17,611 |
| Investment securities: | | | | | | |
| Available for sale | | | | 3,826,390 | | 2,915,559 |
| Held to maturity | | | | 48,757 | | | | 39,015 |
| Trading securities | | | | 38,023 | | | | 62,972 |
| Federal Reserve Bank Stock and other | | | | 21,962 | | | | 19,263 |
| |
| |
| |
| |
|
| Total investment securities | | | | 3,935,132 | | | | 3,036,809 |
| |
| |
| |
| |
|
| Federal funds and resell agreements | | | | 130,100 | | | | 510,965 |
| Interest-bearing due from banks | | | | 698,246 | | | | - |
| Cash and due from banks | | | | 359,469 | | | | 658,218 |
| Bank premises and equipment, net | | | | 220,280 | | | | 225,942 |
| Accrued income | | | | 61,076 | | | | 58,679 |
| Goodwill | | | | 123,827 | | | | 94,512 |
| Other intangibles | | | | 39,769 | | | | 16,360 |
| Other assets | | | | 72,589 | | | | 129,449 |
| |
| |
| |
| |
|
| Total assets | | $ | | 9,955,126 | | $ | | 8,806,522 |
| |
| |
| |
| |
|
| |
| |
| Liabilities | | | | | | | | |
| Deposits: | | | | | | | | |
| Noninterest-bearing demand | | $ | | 2,512,369 | | $ | | 2,088,221 |
| Interest-bearing demand and savings | | | | 3,557,310 | | | | 2,831,851 |
| Time deposits under $100,000 | | | | 784,535 | | | | 830,114 |
| Time deposits of $100,000 or more | | | | 819,795 | | | | 605,233 |
| |
| |
| |
| |
|
| Total deposits | | | | 7,674,009 | | | | 6,355,419 |
| |
| |
| |
| |
|
| Federal funds and repurchase agreements | | | | 1,088,446 | | | | 1,204,136 |
| Short-term debt | | | | 35,596 | | | | 215,378 |
| Long-term debt | | | | 31,073 | | | | 34,449 |
| Accrued expenses and taxes | | | | 110,255 | | | | 64,968 |
| Other liabilities | | | | 23,363 | | | | 15,159 |
| |
| |
| |
| |
|
| Total liabilities | | | | 8,963,142 | | | | 7,889,509 |
| |
| |
| |
| |
|
| |
| Shareholders' Equity | | | | | | | | |
| Common stock | | | | 55,057 | | | | 55,057 |
| Capital surplus | | | | 709,839 | | | | 705,136 |
| Retained earnings | | | | 529,448 | | | | 473,998 |
| Accumulated other comprehensive income | | | | 44,238 | | | | 12,573 |
| Treasury stock | | | | (346,598) | | | | (329,751) |
| |
| |
| |
| |
|
| Total shareholders' equity | | | | 991,984 | | | | 917,013 |
| |
| |
| |
| |
|
| Total liabilities and shareholders' equity | | $ | | 9,955,126 | | $ | | 8,806,522 |
| |
| |
| |
| |
|
| Consolidated Statements of Income | | | | | | | | | | UMB Financial Corporation |
| |
| |
| |
| |
| |
|
| (unaudited, dollars in thousands except share and per share data) | | | | | | | | | | | | | | |
| | | Three Months Ended | | | | Six Months Ended |
| | | June 30, | | | | | | | | June 30, | | |
| Interest Income | | 2009 | | | | 2008 | | | | 2009 | | | | 2008 |
| |
| |
| |
| |
| |
| |
| |
|
| Loans | | $ 53,535 | | $ | | 58,710 | | $ | | 106,335 | | $ | | 123,351 |
| Securities: | | | | | | | | | | | | | | |
| Taxable interest | | 25,818 | | | | 25,329 | | | | 54,935 | | | | 52,792 |
| Tax-exempt interest | | 7,168 | | | | 6,591 | | | | 14,188 | | | | 13,205 |
| |
| |
| |
| |
| |
| |
| |
|
| Total securities income | | 32,986 | | | | 31,920 | | | | 69,123 | | | | 65,997 |
| Federal funds and resell agreements | | 50 | | | | 1,375 | | | | 181 | | | | 5,463 |
| Interest-bearing due from banks | | 942 | | | | - | | | | 1,787 | | | | - |
| Trading securities | | 194 | | | | 335 | | | | 362 | | | | 646 |
| |
| |
| |
| |
| |
| |
| |
|
| Total interest income | | 87,707 | | | | 92,340 | | | | 177,788 | | | | 195,457 |
| |
| |
| |
| |
| |
| |
| |
|
| |
| Interest Expense | | | | | | | | | | | | | | |
| Deposits | | 12,609 | | | | 20,845 | | | | 26,433 | | | | 48,795 |
| Federal funds and repurchase agreements | | 537 | | | | 5,001 | | | | 1,197 | | | | 15,283 |
| Short-term debt | | - | | | | 65 | | | | - | | | | 157 |
| Long-term debt | | 387 | | | | 418 | | | | 777 | | | | 834 |
| |
| |
| |
| |
| |
| |
| |
|
| Total interest expense | | 13,533 | | | | 26,329 | | | | 28,407 | | | | 65,069 |
| |
| |
| |
| |
| |
| |
| |
|
| Net interest income | | 74,174 | | | | 66,011 | | | | 149,381 | | | | 130,388 |
| Provision for loan losses | | 6,300 | | | | 4,850 | | | | 12,300 | | | | 7,850 |
| |
| |
| |
| |
| |
| |
| |
|
| Net interest income after provision for loan losses | | 67,874 | | | | 61,161 | | | | 137,081 | | | | 122,538 |
| |
| |
| |
| |
| |
| |
| |
|
| |
| Noninterest Income | | | | | | | | | | | | | | |
| Trust and securities processing | | 28,635 | | | | 33,132 | | | | 53,534 | | | | 64,363 |
| Trading and investment banking | | 8,977 | | | | 6,350 | | | | 13,838 | | | | 11,864 |
| Service charges on deposits | | 21,135 | | | | 20,935 | | | | 41,929 | | | | 41,557 |
| Insurance fees and commissions | | 886 | | | | 937 | | | | 2,456 | | | | 2,077 |
| Brokerage fees | | 1,512 | | | | 2,147 | | | | 3,864 | | | | 4,241 |
| Bankcard fees | | 11,142 | | | | 11,708 | | | | 22,089 | | | | 22,428 |
| Gains on sale of securities available for sale, net | | 1,849 | | | | 29 | | | | 1,891 | | | | 411 |
| Gain on mandatory redemption of Visa, Inc. class B common | | - | | | | - | | | | - | | | | 8,875 |
| stock | | | | | | | | | | | | | | |
| Other | | 3,187 | | | | 3,750 | | | | 6,632 | | | | 8,161 |
| |
| |
| |
| |
| |
| |
| |
|
| Total noninterest income | | 77,323 | | | | 78,988 | | | | 146,233 | | | | 163,977 |
| |
| |
| |
| |
| |
| |
| |
|
| |
| Noninterest Expense | | | | | | | | | | | | | | |
| Salaries and employee benefits | | 59,596 | | | | 55,100 | | | | 117,593 | | | | 110,144 |
| Occupancy, net | | 8,572 | | | | 7,762 | | | | 16,716 | | | | 15,409 |
| Equipment | | 11,998 | | | | 13,188 | | | | 24,994 | | | | 26,471 |
| Supplies and services | | 5,570 | | | | 6,065 | | | | 10,947 | | | | 11,926 |
| Marketing and business development | | 4,171 | | | | 4,459 | | | | 7,361 | | | | 8,349 |
| Processing fees | | 8,140 | | | | 8,967 | | | | 15,143 | | | | 16,643 |
| Legal and consulting | | 2,644 | | | | 1,831 | | | | 4,192 | | | | 2,934 |
| Bankcard | | 2,927 | | | | 2,618 | | | | 6,884 | | | | 5,475 |
| Amortization of other intangibles | | 1,495 | | | | 733 | | | | 2,471 | | | | 1,454 |
| Covered litigation provision | | - | | | | - | | | | - | | | | (4,023) |
| Regulatory fees | | 7,908 | | | | 720 | | | | 9,635 | | | | 1,276 |
| Other | | 5,859 | | | | 4,922 | | | | 9,587 | | | | 9,536 |
| |
| |
| |
| |
| |
| |
| |
|
| Total noninterest expense | | 118,880 | | | | 106,365 | | | | 225,523 | | | | 205,594 |
| |
| Income before income taxes | | 26,317 | | | | 33,784 | | | | 57,791 | | | | 80,921 |
| Income tax provision | | 7,290 | | | | 10,060 | | | | 16,163 | | | | 24,841 |
| |
| |
| |
| |
| |
| |
| |
|
| Net income | | $ 19,027 | | $ | | 23,724 | | $ | | 41,628 | | $ | | 56,080 |
| |
| |
| |
| |
| |
| |
| |
|
| |
| Per Share Data | | | | | | | | | | | | | | |
| Net income - basic | | $ 0.47 | | $ | | 0.58 | | $ | | 1.03 | | $ | | 1.37 |
| Net income - diluted | | 0.47 | | | | 0.58 | | | | 1.02 | | | | 1.36 |
| Dividends | | 0.175 | | | | 0.165 | | | | 0.350 | | | | 0.315 |
| Weighted average shares outstanding | | 40,374,963 | | | | 40,657,351 | | | | 40,485,689 | | | | 40,817,350 |
| Consolidated Statements of | | | | | | | | | | | | | | | | | | | | | | | | |
| Shareholders' Equity | | | | | | | | | | | | | | | | | | | | UMB Financial Corporation |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| (unaudited, dollars in thousands, except per share data) | | | | | | | | | | | | | | | | | | |
| |
| |
| | | | | | | | | | | | | | | | | Accumulated | | | | | | | | |
| | | | | | | | | | | | | | | | | Other | | | | | | | | |
| | | | | Common | | | | Capital | | | | Retained | | | | Comprehensive | | | | Treasury | | | | |
| | | | | Stock | | | | Surplus | | | | Earnings | | | | Income | | | | Stock | | | | Total |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| |
| 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 ($0.315 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 |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| |
| |
| Balance - January 1, 2009 | | $ | | 55,057 | | $ | | 707,812 | | $ | | 502,073 | | $ | | 41,105 | | $ | | (331,236) | | $ | | 974,811 |
| Comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | - | | | | - | | | | 41,628 | | | | - | | | | - | | | | 41,628 |
| Change in unrealized gains on | | | | | | | | | | | | | | | | | | | | | | | | |
| securities | | | | - | | | | - | | | | - | | | | 3,133 | | | | - | | | | 3,133 |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Total comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | 44,761 |
| Cash dividends ($0.35 per share) | | | | - | | | | - | | | | (14,253) | | | | - | | | | - | | | | (14,253) |
| Purchase of treasury stock | | | | - | | | | - | | | | - | | | | - | | | | (17,298) | | | | (17,298) |
| Issuance of equity awards | | | | - | | | | (1,263) | | | | - | | | | - | | | | 1,395 | | | | 132 |
| Recognition of equity based | | | | | | | | | | | | | | | | | | | | | | | | |
| compensation | | | | - | | | | 2,571 | | | | - | | | | - | | | | - | | | | 2,571 |
| Net tax benefit related to equity | | | | | | | | | | | | | | | | | | | | | | | | |
| compensation plans | | | | - | | | | 169 | | | | - | | | | - | | | | - | | | | 169 |
| Sale of treasury stock | | | | - | | | | 221 | | | | - | | | | - | | | | 106 | | | | 327 |
| Exercise of stock options | | | | - | | | | 329 | | | | - | | | | - | | | | 435 | | | | 764 |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Balance – June 30, 2009 | | $ | | 55,057 | | $ | | 709,839 | | $ | | 529,448 | | $ | | 44,238 | | $ | | (346,598) | | $ | | 991,984 |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Average Balances / Yields and Rates | | | | | | | | UMB Financial Corporation | | | | |
| |
| |
| |
| |
| |
| |
|
| (tax - equivalent basis) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (unaudited, dollars in thousands) | | | | | | Three Months Ended June 30, | | | | |
| | | | | 2009 | | | | | | 2008 | | | | |
| |
| |
| |
| |
| |
| |
| |
|
| | | | | Average | | Average | | | | | | Average | | Average | | |
| Assets | | | | Balance | | Yield/Rate | | | | | | Balance | | Yield/Rate | | |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Loans, net of unearned interest | | $ | | 4,433,564 | | 4.85 | | % | | $ | | 4,138,271 | | 5.71 | | % |
| Securities: | | | | | | | | | | | | | | | | |
| Taxable | | | | 3,224,646 | | 3.21 | | | | | | 2,349,393 | | 4.34 | | |
| Tax-exempt | | | | 894,669 | | 4.99 | | | | | | 762,667 | | 5.29 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total securities | | | | 4,119,315 | | 3.60 | | | | | | 3,112,060 | | 4.57 | | |
| Federal funds and resell agreements | | | | 45,967 | | 0.44 | | | | | | 251,372 | | 2.20 | | |
| Interest-bearing due from banks | | | | 539,774 | | 0.70 | | | | | | - | | - | | |
| Trading securities | | | | 31,056 | | 2.84 | | | | | | 41,556 | | 3.41 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total earning assets | | | | 9,169,676 | | 4.01 | | | | | | 7,543,269 | | 5.11 | | |
| Allowance for loan losses | | | | (55,336) | | | | | | | | (48,879) | | | | |
| Other assets | | | | 890,399 | | | | | | | | 1,055,688 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| Total assets | | $ | | 10,004,739 | | | | | | $ | | 8,550,078 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| |
| |
| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | | 5,149,419 | | 0.98 | | % | | $ | | 4,311,905 | | 1.94 | | % |
| Federal funds and repurchase agreements | | | | 1,254,984 | | 0.17 | | | | | | 1,203,088 | | 1.67 | | |
| Borrowed funds | | | | 55,023 | | 2.82 | | | | | | 48,147 | | 4.03 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total interest-bearing liabilities | | | | 6,459,426 | | 0.84 | | | | | | 5,563,140 | | 1.90 | | |
| Noninterest-bearing demand deposits | | | | 2,452,041 | | | | | | | | 1,968,295 | | | | |
| Other liabilities | | | | 97,302 | | | | | | | | 98,652 | | | | |
| Shareholders' equity | | | | 995,970 | | | | | | | | 919,991 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| Total liabilities and shareholders' equity | | $ | | 10,004,739 | | | | | | $ | | 8,550,078 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| Net interest spread | | | | | | 3.17 | | % | | | | | | 3.21 | | % |
| Net interest margin | | | | | | 3.42 | | | | | | | | 3.71 | | |
| |
| |
| | | | | | | Six Months Ended June 30, | | | | |
| | | | | 2009 | | | | | | 2008 | | | | |
| |
| |
| |
| |
| |
| |
| |
|
| | | | | Average | | Average | | | | | | Average | | Average | | |
| Assets | | | | Balance | | Yield/Rate | | | | | | Balance | | Yield/Rate | | |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Loans, net of unearned interest | | $ | | 4,423,369 | | 4.85 | | % | | $ | | 4,109,000 | | 6.04 | | % |
| Securities: | | | | | | | | | | | | | | | | |
| Taxable | | | | 3,454,857 | | 3.21 | | | | | | 2,371,806 | | 4.48 | | |
| Tax-exempt | | | | 874,301 | | 5.08 | | | | | | 764,538 | | 5.25 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total securities | | | | 4,329,158 | | 3.59 | | | | | | 3,136,344 | | 4.66 | | |
| Federal funds and resell agreements | | | | 66,097 | | 0.55 | | | | | | 378,522 | | 2.90 | | |
| Interest-bearing due from banks | | | | 473,480 | | 0.76 | | | | | | - | | - | | |
| Trading securities | | | | 31,200 | | 2.62 | | | | | | 40,879 | | 3.44 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total earning assets | | | | 9,323,304 | | 4.02 | | | | | | 7,664,745 | | 5.31 | | |
| Allowance for loan losses | | | | (54,479) | | | | | | | | (47,943) | | | | |
| Other assets | | | | 856,635 | | | | | | | | 1,003,266 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| Total assets | | $ | | 10,125,460 | | | | | | $ | | 8,620,068 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| |
| |
| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | | 5,173,137 | | 1.03 | | % | | $ | | 4,328,435 | | 2.27 | | % |
| Federal funds and repurchase agreements | | | | 1,455,881 | | 0.17 | | | | | | 1,324,614 | | 2.32 | | |
| Borrowed funds | | | | 53,629 | | 2.92 | | | | | | 48,736 | | 4.09 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total interest-bearing liabilities | | | | 6,682,647 | | 0.86 | | | | | | 5,701,785 | | 2.29 | | |
| Noninterest-bearing demand deposits | | | | 2,351,013 | | | | | | | | 1,899,165 | | | | |
| Other liabilities | | | | 97,388 | | | | | | | | 98,309 | | | | |
| Shareholders' equity | | | | 994,412 | | | | | | | | 920,809 | | | | |
| | | |
| | | | | | | |
| | | | |
| Total liabilities and shareholders' equity | | $ 10,125,460 | | | | | | $ | | 8,620,068 | | | | |
| |
| | | | | |
| |
| | | | |
| Net interest spread | | | | 3.16 | | % | | | | | | 3.02 | | % |
| Net interest margin | | | | 3.41 | | | | | | | | 3.60 | | |
| SECOND QUARTER 2009 | | | | | | | | | | | | |
| FINANCIAL HIGHLIGHTS | | | | UMB Financial Corporation | | |
| |
| |
| |
|
| (unaudited, dollars in thousands, except share and per share data) | | | | | | | | | | |
| |
| Six Months Ended June 30 | | | | 2009 | | | | | | 2008 | | |
| |
| |
| |
| |
| |
| |
|
| Net interest income | | $ | | 149,381 | | | | $ | | 130,388 | | |
| Provision for loan losses | | | | 12,300 | | | | | | 7,850 | | |
| Noninterest income | | | | 146,233 | | | | | | 163,977 | | |
| Noninterest expense | | | | 225,523 | | | | | | 205,594 | | |
| Income before income taxes | | | | 57,791 | | | | | | 80,921 | | |
| Net income | | | | 41,628 | | | | | | 56,080 | | |
| Net income per share - Basic | | | | 1.03 | | | | | | 1.37 | | |
| Net income per share - Diluted | | | | 1.02 | | | | | | 1.36 | | |
| Return on average assets | | | | 0.83 | | % | | | | 1.31 | | % |
| Return on average equity | | | | 8.44 | | % | | | | 12.25 | | % |
| |
| Three Months Ended June 30 | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Net interest income | | $ | | 74,174 | | | | $ | | 66,011 | | |
| Provision for loan losses | | | | 6,300 | | | | | | 4,850 | | |
| Noninterest income | | | | 77,323 | | | | | | 78,988 | | |
| Noninterest expense | | | | 118,880 | | | | | | 106,365 | | |
| Income before income taxes | | | | 26,317 | | | | | | 33,784 | | |
| Net income | | | | 19,027 | | | | | | 23,724 | | |
| Net income per share - Basic | | | | 0.47 | | | | | | 0.58 | | |
| Net income per share - Diluted | | | | 0.47 | | | | | | 0.58 | | |
| Return on average assets | | | | 0.76 | | % | | | | 1.12 | | % |
| Return on average equity | | | | 7.66 | | % | | | | 10.37 | | % |
| |
| At December 31 | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Assets | | $ | | 9,955,126 | | | | $ | | 8,806,522 | | |
| Loans, net of unearned interest | | | | 4,331,887 | | | | | | 4,106,078 | | |
| Securities | | | | 3,935,132 | | | | | | 3,036,809 | | |
| Deposits | | | | 7,674,009 | | | | | | 6,355,419 | | |
| Shareholders' equity | | | | 991,984 | | | | | | 917,013 | | |
| Book value per share | | | | 24.42 | | | | | | 22.40 | | |
| Market price per share | | | | 38.01 | | | | | | 51.27 | | |
| Equity to assets | | | | 9.96 | | % | | | | 10.41 | | % |
| Allowance for loan losses | | $ | | 55,109 | | | | $ | | 48,101 | | |
| As a % of loans | | | | 1.27 | | % | | | | 1.17 | | % |
| Nonaccrual and restructured loans | | $ | | 14,123 | | | | $ | | 8,192 | | |
| As a % of loans | | | | 0.33 | | % | | | | 0.20 | | % |
| Loans over 90 days past due | | $ | | 6,833 | | | | $ | | 5,724 | | |
| As a % of loans | | | | 0.16 | | % | | | | 0.14 | | % |
| Other real estate owned | | $ | | 3,859 | | | | $ | | 1,381 | | |
| Net loan charge-offs quarter-to-date | | $ | | 5,196 | | | | $ | | 4,230 | | |
| As a % of average loans | | | | 0.47 | | % | | | | 0.41 | | % |
| Net loan charge-offs year-to-date | | $ | | 9,488 | | | | $ | | 5,735 | | |
| As a % of average loans | | | | 0.44 | | % | | | | 0.28 | | % |
| |
| Common shares outstanding | | | | 40,626,555 | | | | | | 40,935,097 | | |
| |
| Average Balances | | | | | | | | | | | | |
| Six Months Ended June 30 | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Assets | | $ | | 10,125,460 | | | | $ | | 8,620,068 | | |
| Loans, net of unearned interest | | | | 4,423,369 | | | | | | 4,109,000 | | |
| Securities | | | | 4,329,185 | | | | | | 3,136,344 | | |
| Deposits | | | | 7,524,150 | | | | | | 6,227,600 | | |
| Shareholders' equity | | | | 994,412 | | | | | | 920,809 | | |
| Selected Financial Data | | | | | | | | | | |
| of Affiliate Banks | | | | | | | | UMB Financial Corporation |
| |
| |
| |
| |
|
| (unaudited, dollars in thousands) | | | | | | June 30, 2009 | | |
| | | | | | | Loans | | | | |
| | | | | | | Net of | | | | |
| | | Total | | | | Unearned | | Total | | Shareholders' |
| Missouri | | Assets | | | | Interest | | Deposits | | Equity |
| |
| |
| |
| |
| |
|
| UMB Bank, n.a. | | $ 8,383,252 | | $ | | 3,542,039 $ | | 6,530,786 $ | | 628,388 |
| |
| Colorado | | | | | | | | | | |
| |
| |
| |
| |
| |
|
| UMB Bank Colorado, n. a. | | 951,960 | | | | 530,692 | | 754,943 | | 154,710 |
| |
| Kansas | | | | | | | | | | |
| |
| |
| |
| |
| |
|
| UMB National Bank of America | | 606,207 | | | | 219,467 | | 423,641 | | 62,606 |
| |
| Arizona | | | | | | | | | | |
| |
| |
| |
| |
| |
|
| UMB Bank Arizona, n. a. | | 84,855 | | | | 74,279 | | 32,226 | | 8,895 |
| |
| Banking - Related Subsidiaries | | | | | | | | | | |
| |
| |
| |
| |
| |
|
| UMBCDC, Inc. | | | | | | | | | | |
| UMB Banc Leasing Corp. | | | | | | | | | | |
| UMB Financial Services, Inc. | | | | | | | | | | |
| UMB Scout Insurance Services, Inc. | | | | | | | | | | |
| UMB Capital Corporation | | | | | | | | | | |
| United Missouri Insurance Company | | | | | | | | | | |
| UMB South Dakota Trust Company | | | | | | | | | | |
| Scout Investment Advisors, Inc. | | | | | | | | | | |
| UMB Fund Services, Inc. | | | | | | | | | | |
| Kansas City Realty Company | | | | | | | | | | |
| Kansas City Financial Corp. | | | | | | | | | | |
| UMB Redevelopment Corporation | | | | | | | | | | |
| UMB Realty Company, LLC | | | | | | | | | | |
| Grand Distribution Services, LLC | | | | | | | | | | |
| UMB Distribution Services, LLC | | | | | | | | | | |
| J. D. Clark & Company, Inc. | | | | | | | | | | |
| UMB Bank & Trust, National Association | | | | | | | | | | |
