| UMB Financial Corporation | | News Release |
| 1010 Grand Boulevard | | |
| Kansas City, MO 64106 | | |
| 816.860.7000 | | |
| umb.com | | |
//FOR IMMEDIATE RELEASE//
|
Media Contact: Mandie Nelson, 816.860.5088 Investor Relations Contact: Abby Wendel, 816.860.1685
UMB Financial Corporation Reports 10.2 Percent Increase in Net Income for the Third Quarter 2009
Selected financial highlights:
|
| · | Earnings per share of $0.60 ($0.59 diluted) |
| |
| · | Average loan balances increased 3.4 percent to $4.4 billion |
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| · | Nonperforming loans of 0.52 percent of loans |
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| · | Average deposits increased 14.6 percent |
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| · | Diversified revenue sources with fee income of 51.5 percent of total revenue |
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| · | Tier 1 capital ratio remains strong at 13.5 percent |
| |
Kansas City, Mo.(October 27, 2009)– UMB Financial Corporation (NASDAQ: UMBF), a financial services holding company, announced earnings for the three months ended September 30, 2009 of $24.0 million or $0.60 per share ($0.59 diluted). This is an increase of $2.2 million, or 10.2 percent, compared to third quarter 2008 earnings of $21.8 million or $0.54 per share ($0.53 diluted). Earnings for the nine months ended September 30, 2009 were $65.6 million or $1.62 per share ($1.61 diluted). This is a decrease of $12.2 million, or 15.7 percent, compared to the prior nine months ended September 30, 2008 of $77.8 million or $1.91 per share ($1.89 diluted).
A $1.1 million pre-tax gain was recognized in the third quarter of 2008 as a result of the final contingent payment received on the sale of the securities transfer product. Excluding the securities transfer product transaction, net income for the three months ended September 30, 2009 increased $2.9 million, or 13.9 percent, compared to the same period in 2008. A table reconciling GAAP net income for the securities transfer related transactions is included with this release.
“We are pleased to report double-digit earnings growth given the challenging economic environment and considering what continues to happen in the industry,” commented Mariner Kemper, Chairman and Chief Executive Officer. “Economic cycles change and customer needs shift, and we adapt to these changing conditions without altering our core principles. For UMB, this translates into quality earnings from diverse revenue sources and a continued focus on steady growth.”
Net Interest Income and Margin
|
Net interest income for the third quarter of 2009 increased $9.6 million, or 14.5 percent, compared to the same period in 2008 due primarily to a higher volume of average earning assets. Average earning assets increased by $1.3 billion, or 16.9 percent, compared to the third quarter of 2008. This increase was due to a $143.8 million, or 3.4 percent, increase in average loans and a $1.0 billion, or 32.2 percent, increase in total securities, including trading securities. Net interest margin decreased six basis points to 3.51 percent for the three months ended September 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 offset by a 19 basis point increase in net interest spread over the third quarter of 2008.
Noninterest Income and Expense
Noninterest income increased $1.4 million, or 1.8 percent, for the three months ended September 30, 2009 compared to the same period in 2008. Trust and securities processing income increased $1.1 million, or 3.5 percent, for the three months ended September 30, 2009 compared to the same period in 2008. This increase was primarily due to a $3.0 million, or 27.5 percent, increase in fund administration and custody services, partially offset by a $0.6 million, or 6.6 percent, decrease in fee income from the Scout Funds and a $0.8 million, or 22.2 percent, decrease in corporate trust income. Trading and investment banking income increased $3.9 million, or 132.5 percent, from the third quarter of 2008 due to market increases in the company’s mutual fund investments. Service charges on deposits decreased $2.0 million, or 9.0 percent, compared to the same period in 2008 primarily from a decrease in return item fees of $1.9 million, or 18.0 percent. Bankcard fees increased $1.2 million, or 11.6 percent, from the third quarter of 2008 due to increased credit card and ATM processing income. As noted, a $1.1 million pre-tax gain was recognized in the third quarter of 2008 as a result of the final contingent payment received on the sale of the securities transfer product, which took place in the third quarter of 2007.
Noninterest expense increased $5.4 million, or 4.9 percent, for the three months ended September 30, 2009 compared to the same period in 2008. Salary expense increased by $3.0 million, or 5.3 percent, mostly due to higher employee base salaries, higher commissions and bonuses and higher cost of benefits. Equipment expense decreased by $2.3 million, or 16.9 percent, due to lower depreciation and amortization expense of equipment and software. Regulatory fees increased $2.4 million, or 375.1 percent, primarily due to increased deposit insurance assessments from the FDIC. Supplies and services decreased by $1.5 million, or 23.5 percent, mostly due to decreases in telephone, data line, courier, and postage expenses. Processing fees increased $1.1 million, or 13.2 percent, due to increased third party custodian fees related to international transactions from mutual fund clients. Amortization of other intangibles increased $1.0 million, or 129.7 percent, primarily due to increased amortization from the acquisition of J.D. Clark & Company during the second quarter of 2009.
“During the third quarter we continued to focus on the successful integration of JD Clark – our recently purchased alternative investments provider. We are very pleased with the overall progress and sales momentum we are seeing related to this acquisition,” said Peter deSilva, President and Chief Operating Officer. “A key focus for UMB continues to be further growth and diversification in our revenues and improvements in our efficiency ratio. Achieving greater scale from our key fee businesses including Scout Investment Advisors, Corporate Trust, Private Banking, Investment Banking and Fund Services will enable us to achieve our dual goals of strong growth and improvements in operating efficiencies. During the quarter our efficiency ratio improved to 71.72 percent from 73.85 percent in the third quarter of 2008.”
Balance Sheet
Average total assets for the three months ended September 30, 2009 were $9.8 billion compared to $8.6 billion for the same period in 2008, an increase of $1.2 billion, or 14.3 percent. Average earning assets increased by $1.3 billion for the period, or 16.9 percent.
Actual loan balances on September 30, 2009 were $4.3 billion, compared to $4.2 billion on September 30, 2008. Real estate loans increased $258.0 million, or 17.2 percent, due to increases in commercial real estate and home equity loans. Consumer loans decreased $154.3 million, or 25.5 percent, due to the continued reduction in indirect auto loans as we exit the market. Average loan balances for the three months ended September 30, 2009 increased $143.8 million, or 3.4 percent, to $4.4 billion from $4.2 billion for the three months ended September 30, 2008.
Nonperforming loans increased to $22.4 million at September 30, 2009 from $6.9 million at September 30, 2008. As a percentage of loans, nonperforming loans increased to 0.52 percent as of September 30, 2009 compared to 0.16 percent at September 30, 2008. This increase is predominately due to one syndicated national credit, which was placed on nonaccrual during the quarter. Nonperforming loans are defined as nonaccrual loans and restructured loans. By comparison, the industry average for nonperforming loans as of June 30, 2009 was 2.80 percent. The company’s allowance for loan losses totaled $58.8 million, or 1.36 percent of loans as of September 30, 2009 compared to $50.4 million, or 1.19 percent of loans as of September 30, 2008.
For the three months ended September 30, 2009, average securities, including trading securities, totaled $4.2 billion. This is an increase of $1.0 billion, or 32.2 percent, from the same period in 2008. Average federal funds sold and resell agreements for the third quarter decreased $330.2 million, or 89.2 percent, to $40.1 million from the same period in 2008.
Average total deposits increased $949.9 million, or 14.6 percent, to $7.5 billion for the three months ended September 30, 2009 compared to the same period in 2008. The increase in deposits came primarily from public funds, mutual funds, treasury management accounts, and savings accounts. Average time deposit accounts increased $259.8 million, or 18.9 percent, for the three months ended September 30, 2009 as compared to 2008. Average money market accounts increased by $107.3 million, or 8.2 percent, in 2009 as compared to 2008. Average noninterest-bearing demand deposits increased $434.8 million, or 23.3 percent, compared to 2008. Total deposits as of September 30, 2009 were $7.9 billion, compared to $7.1 billion at September 30, 2008, an 11.4 percent increase.
“Our balance sheet continues to be a source of strength for the company,” said Mike Hagedorn, Chief Financial Officer. “Record deposits in the quarter helped drive a 16.9 percent increase in average earning assets. In addition, our low cost of funds allows us to maintain a respectable margin without reaching for yield or jeopardizing our investment portfolio mix.”
As of September 30, 2009, UMB had total shareholders’ equity of $1.0 billion, which was an increase of 8.5 percent, over September 30, 2008. For the three months ended September 30, 2009, the company repurchased 226,796 shares at an average price of $39.83 per share for a total cost of $9.0 million.
Year-to-Date
Earnings for the nine months ended September 30, 2009 were $65.6 million or $1.62 per share ($1.61 diluted). This is a decrease of $12.2 million, or 15.7 percent, compared to the prior year-to-date earnings of $77.8 million or $1.91 per share ($1.89 diluted).
Excluding the securities transfer product transaction and the Visa, Inc. (Visa)-related transactions in the first quarter of 2008, net income for the nine months ended September 30, 2009 decreased $3.3 million, or 4.7 percent, compared to the same period in 2008. A table reconciling GAAP net income for the securities transfer and Visa-related items is included with this release.
Net interest income for the nine months ended September 30, 2009 increased $28.6 million, or 14.5 percent, compared to the same period in 2008 due primarily to higher average earning assets. Net interest margin decreased to 3.44 percent for the nine months ended September 30, 2009 as compared to 3.59 percent for the same period in 2008.
Noninterest income decreased $16.3 million, or 6.7 percent, to $226.8 million for the nine months ended September 30, 2009 as compared to the same period in 2008. The decrease is primarily attributable to lower trust and securities processing income partially offset by an increase in trading and investment banking income. Trust and securities processing income decreased $9.7 million, or 10.1 percent, for year-to-date September 30, 2009 as compared to the same period in 2008. Trading and investment banking income was $5.8 million, or 39.5 percent, higher for the nine months ended September 30, 2009. As a direct result of Visa’s Initial Public Offering during the first quarter of 2008, earnings for the first nine 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. As noted above, a $1.1 million pre-tax gain was recognized in the third quarter of 2008 as a result of the final contingent payment received on the sale of the securities transfer product.
Noninterest expense increased $25.3 million, or 8.0 percent, for the nine months ended September 30, 2009 compared to the same period in 2008. Salary expense increased by $10.5 million, or 6.2 percent, mostly due to higher employee base salaries, higher commissions and bonuses and higher cost of benefits. Regulatory fees increased $10.8 million, or 561.4 percent, primarily due to increased deposit insurance assessments from the FDIC and a $4.8 million special assessment paid to the FDIC in the third quarter of 2009. Equipment expense decreased $3.8 million, or 9.4 percent, from the same period in 2008 due to lower depreciation and amortization expense of equipment and software. Amortization of other intangibles increased by $2.1 million, or 91.2 percent, primarily due to increased amortization from the acquisition of J.D. Clark & Company during the second quarter of 2009. Noninterest expense in 2008 was impacted by a reduction of the covered litigation provision of $4.0 million related to the Visa-covered litigation escrow established due to the Visa IPO during the first quarter of 2008.
The company plans to host a conference call to discuss its third quarter results on October 28, 2009, at 8:30 a.m. (CDT). Interested parties may access the call by dialing U.S. (toll-free) 877-941-2333 or access the following Web link to the live call: http://w.on24.com/r.htm?e=164722&s=1&k=937FBE7392F7ED2CB4E230EE84290E93 or visit umb.com.
A replay of the conference call may be heard until November 11, 2009, by calling (U.S.) 800-406-7325 or (U.S.) 303-590-3030. The replay pass code required for playback is conference ID 4161441. 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. They also exclude the gains on sale of UMB’s securities transfer product. 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, Mo., offering complete banking, asset management, health spending solutions and related financial services to both individual and business customers nationwide. Its banking subsidiaries own and operate 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 mutual fund and alternative investment services groups, single-purpose companies that deal with brokerage services and insurance, and a registered investment advisor that manages the company’s proprietary mutual funds and investment advisory accounts for institutional customers. Visit umb.com for more company information.
| NON-GAAP RECONCILIATION SCHEDULE | | UMB Financial |
| (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 | | | | Nine Months | | Nine |
| | | Ended | | | | Ended | | | | Ended | | |
| | | September 30, | | | | September 30, | | | | September 30, | | |
| | | 2009 | | | | 2008 | | | | 2009 | | |
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| |
| |
| |
| |
| |
|
| Net interest income after provision | | $ 67,596 | | $ | | 61,798 | | $ | | 204,677 | | $ |
| Noninterest income | | 80,518 | | | | 79,121 | | | | 226,750 | | |
| Noninterest expense | | 115,257 | | | | 109,853 | | | | 340,779 | | |
| Income tax provision | | | | 8,859 | | | | 9,297 | | | | 25,022 | | |
| |
| |
| |
| |
| |
| |
| |
|
| Net income after taxes | | | | 23,998 | | | | 21,769 | | | | 65,626 | | |
| |
| Adjustments | | | | | | | | | | | | | | |
| Noninterest income | | | | | | | | | | | | | | |
| Gain on mandatory redemption of Visa, Inc. | | | | | | | | | | | | | | |
| class B common stock | | | | - | | | | - | | | | - | | |
| Gain on sale of securities transfer | | | | - | | | | (1,090) | | | | - | | |
| Noninterest expense | | | | | | | | | | | | | | |
| Covered litigation provision | | | | - | | | | - | | | | - | | |
| |
| |
| |
| |
| |
| |
| |
|
| Total adjustments pre-tax | | | | - | | | | (1,090) | | | | - | | |
| Less: Income taxes | | | | - | | | | (392) | | | | - | | |
| |
| |
| |
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| After tax adjustments to GAAP | | | | - | | | | (698) | | | | - | | |
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|
| Adjusted net income | | $ | | 23,998 | | $ | | 21,071 | | $ | | 65,626 | | $ |
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The above table presents the variation in net income on an as reported (GAAP) basis and excluding the gain on the sale of securities transfer, gains related to the redemption of class B common shares of Visa, Inc. and the adjustment of the covered litigation provision. The press release commentary that compares both GAAP and non-GAAP financial measures.
| CONSOLIDATED BALANCE SHEETS | | | | UMB Financial Corporation |
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| (unaudited, dollars in thousands) | | | | | | | | |
| | | | | September 30, | | |
| Assets | | | | 2009 | | | | 2008 |
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| |
|
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| Loans | | $ | | 4,314,977 | | $ | | 4,224,441 |
| Allowance for loan losses | | | | (58,812) | | | | (50,428) |
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| |
|
| Net loans | | | | 4,256,165 | | | | 4,174,013 |
| |
| |
| |
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|
| Loans held for sale | | | | 19,410 | | | | 19,887 |
| Investment securities: | | | | | | | | |
| Available for sale | | | | 4,385,619 | | | | 3,617,484 |
| Held to maturity | | | | 46,881 | | | | 44,604 |
| Trading securities | | | | 46,487 | | | | 37,164 |
| Federal Reserve Bank Stock and other | | | | 23,609 | | | | 21,745 |
| |
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| Total investment securities | | | | 4,502,596 | | | | 3,720,997 |
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| Federal funds and resell agreements | | | | 103,954 | | | | 454,424 |
| Interest-bearing due from banks | | | | 539,357 | | | | - |
| Cash and due from banks | | | | 288,422 | | | | 524,849 |
| Bank premises and equipment, net | | | | 217,491 | | | | 222,083 |
| Accrued income | | | | 64,804 | | | | 60,186 |
| Goodwill | | | | 125,739 | | | | 94,512 |
| Other intangibles | | | | 40,528 | | | | 15,705 |
| Other assets | | | | 77,030 | | | | 50,685 |
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| Total assets | | $ | | 10,235,496 | | $ | | 9,337,341 |
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| Liabilities | | | | | | | | |
| Deposits: | | | | | | | | |
| Noninterest-bearing demand | | $ | | 2,594,635 | | $ | | 2,287,377 |
| Interest-bearing demand and savings | | | | 3,657,651 | | | | 3,448,176 |
| Time deposits under $100,000 | | | | 781,196 | | | | 771,936 |
| Time deposits of $100,000 or more | | | | 856,707 | | | | 573,659 |
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| Total deposits | | | | 7,890,189 | | | | 7,081,148 |
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| Federal funds and repurchase agreements�� | | | | 1,146,676 | | | | 1,186,004 |
| Short-term debt | | | | 20,336 | | | | 18,655 |
| Long-term debt | | | | 32,358 | | | | 36,807 |
| Accrued expenses and taxes | | | | 119,659 | | | | 69,048 |
| Other liabilities | | | | 12,650 | | | | 11,591 |
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| |
| |
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| Total liabilities | | | | 9,221,868 | | | | 8,403,253 |
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| |
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|
| Shareholders' Equity | | | | | | | | |
| Common stock | | | | 55,057 | | | | 55,057 |
| Capital surplus | | | | 711,373 | | | | 706,584 |
| Retained earnings | | | | 546,370 | | | | 489,012 |
| Accumulated other comprehensive income | | | | 56,324 | | | | 14,323 |
| Treasury stock | | | | (355,496) | | | | (330,888) |
| |
| |
| |
| |
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| Total shareholders' equity | | | | 1,013,628 | | | | 934,088 |
| |
| |
| |
| |
|
| Total liabilities and shareholders' equity | | $ | | 10,235,496 | | $ | | 9,337,341 |
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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 | | Nine Months Ended |
| | | September 30, | | | | September 30, |
| Interest Income | | 2009 | | | | 2008 | | 2009 | | | | 2008 |
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| Loans | | $ 54,478 | | $ | | 59,208 | | $ 160,813 | | $ | | 182,559 |
| Securities: | | | | | | | | | | | | |
| Taxable interest | | 25,455 | | | | 25,419 | | 80,395 | | | | 78,211 |
| Tax-exempt interest | | 7,554 | | | | 6,357 | | 21,742 | | | | 19,561 |
| |
| |
| |
| |
| |
| |
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| Total securities income | | 33,009 | | | | 31,776 | | 102,137 | | | | 97,772 |
| Federal funds and resell agreements | | 48 | | | | 1,948 | | 229 | | | | 7,411 |
| Interest-bearing due from banks | | 1,181 | | | | - | | 2,965 | | | | - |
| Trading securities | | 210 | | | | 442 | | 570 | | | | 1,089 |
| |
| |
| |
| |
| |
| |
|
| Total interest income | | 88,926 | | | | 93,374 | | 266,714 | | | | 288,831 |
| |
| |
| |
| |
| |
| |
|
| |
| Interest Expense | | | | | | | | | | | | |
| Deposits | | 12,223 | | | | 22,339 | | 38,656 | | | | 71,133 |
| Federal funds and repurchase agreements | | 446 | | | | 4,275 | | 1,643 | | | | 19,558 |
| Short-term debt | | - | | | | 27 | | - | | | | 184 |
| Long-term debt | | 361 | | | | 435 | | 1,138 | | | | 1,270 |
| |
| |
| |
| |
| |
| |
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| Total interest expense | | 13,030 | | | | 27,076 | | 41,437 | | | | 92,145 |
| |
| |
| |
| |
| |
| |
|
| Net interest income | | 75,896 | | | | 66,298 | | 225,277 | | | | 196,686 |
| Provision for loan losses | | 8,300 | | | | 4,500 | | 20,600 | | | | 12,350 |
| |
| |
| |
| |
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| |
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| Net interest income after provision for loan losses | | 67,596 | | | | 61,798 | | 204,677 | | | | 184,336 |
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| |
| |
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|
| |
| Noninterest Income | | | | | | | | | | | | |
| Trust and securities processing | | 32,630 | | | | 31,530 | | 86,164 | | | | 95,892 |
| Trading and investment banking | | 6,787 | | | | 2,919 | | 20,625 | | | | 14,783 |
| Service charges on deposits | | 20,598 | | | | 22,624 | | 62,527 | | | | 64,180 |
| Insurance fees and commissions | | 1,255 | | | | 1,355 | | 3,710 | | | | 3,432 |
| Brokerage fees | | 1,629 | | | | 2,189 | | 5,493 | | | | 6,430 |
| Bankcard fees | | 11,671 | | | | 10,456 | | 33,760 | | | | 32,884 |
| Gains on sale of securities available for sale, net | | 3,306 | | | | 2,829 | | 5,198 | | | | 3,240 |
| Gain on mandatory redemption of Visa, Inc. class B common | | - | | | | - | | - | | | | 8,875 |
| stock | | | | | | | | | | | | |
| Gain on sale of securities transfer, net | | - | | | | 1,090 | | - | | | | 1,090 |
| Other | | 2,642 | | | | 4,129 | | 9,273 | | | | 12,292 |
| |
| |
| |
| |
| |
| |
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| Total noninterest income | | 80,518 | | | | 79,121 | | 226,750 | | | | 243,098 |
| |
| |
| |
| |
| |
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|
| |
| Noninterest Expense | | | | | | | | | | | | |
| Salaries and employee benefits | | 60,193 | | | | 57,187 | | 177,786 | | | | 167,331 |
| Occupancy, net | | 8,982 | | | | 8,542 | | 25,698 | | | | 23,952 |
| Equipment | | 11,187 | | | | 13,461 | | 36,181 | | | | 39,932 |
| Supplies and services | | 4,787 | | | | 6,254 | | 15,734 | | | | 18,180 |
| Marketing and business development | | 4,036 | | | | 4,976 | | 11,397 | | | | 13,325 |
| Processing fees | | 9,659 | | | | 8,535 | | 24,803 | | | | 25,178 |
| Legal and consulting | | 2,763 | | | | 2,097 | | 6,954 | | | | 5,030 |
| Bankcard | | 3,615 | | | | 3,103 | | 10,498 | | | | 8,578 |
| Amortization of other intangibles | | | | | | | | | | | | 1,847 | | | | 804 | | | | 4,318 | | | | 2,258 |
| Covered litigation provision | | | | | | | | | | | | - | | | | - | | | | - | | | | (4,023) |
| Regulatory fees | | | | | | | | | | | | 3,036 | | | | 639 | | | | 12,672 | | | | 1,916 |
| Other | | | | | | | | | | | | 5,152 | | | | 4,255 | | | | 14,738 | | | | 13,791 |
| | | | | | | | | |
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| Total noninterest expense | | | | | | | | | | | | 115,257 | | | | 109,853 | | | | 340,779 | | | | 315,448 |
| |
| Income before income taxes | | | | | | | | | | | | 32,857 | | | | 31,066 | | | | 90,648 | | | | 111,986 |
| Income tax provision | | | | | | | | | | | | 8,859 | | | | 9,297 | | | | 25,022 | | | | 34,138 |
| | | | | | | | | |
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| Net income | | | | | | | | | | $ | | 23,998 | | $ | | 21,769 | | $ | | 65,626 | | $ | | 77,848 |
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| Per Share Data | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income - basic | | | | | | | | | | $ | | 0.60 | | $ | | 0.54 | | $ | | 1.62 | | $ | | 1.91 |
| Net income - diluted | | | | | | | | | | | | 0.59 | | | | 0.53 | | | | 1.61 | | | | 1.89 |
| Dividends | | | | | | | | | | | | 0.175 | | | | 0.170 | | | | 0.525 | | | | 0.480 |
| Weighted average shares outstanding | | | | | | | | | | | | 40,240,293 | | | | 40,659,564 | | | | 40,402,992 | | | | 40,764,371 |
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| 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 | | | | | | | | |
| | | | | | | | | | | | | | | | | Other | | | | | | | | |
| | | | | Common | | | | Capital | | | | Retained | | | | Comprehensive | | | | Treasury | | | | |
| | | | | Stock | | | | Surplus | | | | Earnings | | | | Income | | | | Stock | | | | Total |
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|
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| Balance - January 1, 2008 | | $ | | 55,057 | | $ | | 702,914 | | $ | | 430,824 | | $ | | 12,246 | | $ | | (310,467) | | $ | | 890,574 |
| Comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | - | | | | - | | | | 77,848 | | | | - | | | | - | | | | 77,848 |
| Change in unrealized gains on | | | | | | | | | | | | | | | | | | | | | | | | |
| securities | | | | - | | | | - | | | | - | | | | 2,077 | | | | - | | | | 2,077 |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Total comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | 79,925 |
| Cash dividends ($0.480 per share) | | | | - | | | | - | | | | (19,660) | | | | - | | | | - | | | | (19,660) |
| Purchase of treasury stock | | | | - | | | | - | | | | - | | | | - | | | | (22,574) | | | | (22,574) |
| Issuance of equity awards | | | | - | | | | (814) | | | | - | | | | - | | | | 954 | | | | 140 |
| Recognition of equity based | | | | | | | | | | | | | | | | | | | | | | | | |
| compensation | | | | - | | | | 3,174 | | | | - | | | | - | | | | - | | | | 3,174 |
| Net tax benefit related to equity | | | | | | | | | | | | | | | | | | | | | | | | |
| compensation plans | | | | - | | | | 367 | | | | - | | | | - | | | | - | | | | 367 |
| Sale of treasury stock | | | | - | | | | 289 | | | | - | | | | - | | | | 131 | | | | 420 |
| Exercise of stock options | | | | - | | | | 654 | | | | - | | | | - | | | | 1,068 | | | | 1,722 |
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|
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| Balance – September 30, 2008 | | $ | | 55,057 | | $ | | 706,584 | | $ | | 489,012 | | $ | | 14,323 | | $ | | (330,888) | | $ | | 934,088 |
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| Balance - January 1, 2009 | | $ | | 55,057 | | $ | | 707,812 | | $ | | 502,073 | | $ | | 41,105 | | $ | | (331,236) | | $ | | 974,811 |
| Comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | - | | | | - | | | | 65,626 | | | | - | | | | - | | | | 65,626 |
| Change in unrealized gains on | | | | | | | | | | | | | | | | | | | | | | | | |
| securities | | | | - | | | | - | | | | - | | | | 15,219 | | | | - | | | | 15,219 |
| | | | | | | | | | | | | | | | | | | | | | | |
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| Total comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | 80,845 |
| Cash dividends ($0.525 per share) | | | | - | | | | - | | | | (21,329) | | | | - | | | | - | | | | (21,329) |
| Purchase of treasury stock | | | | - | | | | - | | | | - | | | | - | | | | (26,331) | | | | (26,331) |
| Issuance of equity awards | | | | - | | | | (1,263) | | | | - | | | | - | | | | 1,395 | | | | 132 |
| Recognition of equity based | | | | | | | | | | | | | | | | | | | | | | | | |
| compensation | | | | - | | | | 3,948 | | | | - | | | | - | | | | - | | | | 3,948 |
| Net tax benefit related to equity | | | | | | | | | | | | | | | | | | | | | | | | |
| compensation plans | | | | - | | | | 187 | | | | - | | | | - | | | | - | | | | 187 |
| Sale of treasury stock | | | | - | | | | 314 | | | | - | | | | - | | | | 159 | | | | 473 |
| Exercise of stock options | | | | - | | | | 375 | | | | - | | | | - | | | | 517 | | | | 892 |
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| Balance – September 30, 2009 | | $ | | 55,057 | | $ | | 711,373 | | $ | | 546,370 | | $ | | 56,324 | | $ | | (355,496) | | $ | | 1,013,628 |
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| Average Balances / Yields and Rates | | | | | | | | UMB Financial Corporation | | | | |
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| (tax - equivalent basis) | | | | | | | | | | | | | | | | |
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| (unaudited, dollars in thousands) | | | | | | Three Months Ended September 30, | | | | |
| | | | | 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 | | $ | | 4,354,961 | | 4.97 | | % | | $ | | 4,211,114 | | 5.60 | | % |
| Securities: | | | | | | | | | | | | | | | | |
| Taxable | | | | 3,175,441 | | 3.18 | | | | | | 2,386,983 | | 4.24 | | |
| Tax-exempt | | | | 984,534 | | 4.73 | | | | | | 737,617 | | 5.19 | | |
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| | | | | |
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| Total securities | | | | 4,159,975 | | 3.55 | | | | | | 3,124,600 | | 4.46 | | |
| Federal funds and resell agreements | | | | 40,057 | | 0.48 | | | | | | 370,291 | | 2.09 | | |
| Interest-bearing due from banks | | | | 473,868 | | 0.99 | | | | | | - | | - | | |
| Trading securities | | | | 37,250 | | 2.47 | | | | | | 49,325 | | 3.69 | | |
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| | | | | |
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| Total earning assets | | | | 9,066,111 | | 4.08 | | | | | | 7,755,330 | | 4.96 | | |
| Allowance for loan losses | | | | (57,957) | | | | | | | | (49,877) | | | | |
| Other assets | | | | 839,486 | | | | | | | | 912,501 | | | | |
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| | | | | |
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| | | | |
| Total assets | | $ | | 9,847,640 | | | | | | $ | | 8,617,954 | | | | |
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| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | | 5,171,736 | | 0.94 | | % | | $ | | 4,656,627 | | 1.91 | | % |
| Federal funds and repurchase agreements | | | | 1,184,647 | | 0.15 | | | | | | 1,038,779 | | 1.64 | | |
| Borrowed funds | | | | 50,285 | | 2.85 | | | | | | 41,801 | | 4.40 | | |
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| Total interest-bearing liabilities | | | | 6,406,668 | | 0.81 | | | | | | 5,737,207 | | 1.88 | | |
| Noninterest-bearing demand deposits | | | | 2,297,832 | | | | | | | | 1,863,035 | | | | |
| Other liabilities | | | | 133,028 | | | | | | | | 81,630 | | | | |
| Shareholders' equity | | | | 1,010,112 | | | | | | | | 936,082 | | | | |
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| Total liabilities and shareholders' equity | | $ | | 9,847,640 | | | | | | $ | | 8,617,954 | | | | |
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| Net interest spread | | | | | | 3.27 | | % | | | | | | 3.08 | | % |
| Net interest margin | | | | | | 3.51 | | | | | | | | 3.57 | | |
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| | | | | | | Nine Months Ended September 30, | | | | |
| | | | | 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 | | $ | | 4,400,316 | | 4.89 | | % | | $ | | 4,143,287 | | 5.89 | | % |
| Securities: | | | | | | | | | | | | | | | | |
| Taxable | | | | 3,361,316 | | 3.20 | | | | | | 2,376,901 | | 4.40 | | |
| Tax-exempt | | | | 911,449 | | 4.96 | | | | | | 755,499 | | 5.23 | | |
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| Total securities | | | | 4,272,765 | | 3.57 | | | | | | 3,132,400 | | 4.60 | | |
| Federal funds and resell agreements | | | | 57,322 | | 0.53 | | | | | | 375,759 | | 2.63 | | |
| Interest-bearing due from banks | | | | 473,040 | | 0.84 | | | | | | - | | - | | |
| Trading securities | | | | 33,239 | | 2.56 | | | | | | 43,715 | | 3.54 | | |
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| Total earning assets | | | | 9,236,682 | | 4.04 | | | | | | 7,695,161 | | 5.19 | | |
| Allowance for loan losses | | | | (55,651) | | | | | | | | (48,593) | | | | |
| Other assets | | | | 849,803 | | | | | | | | 972,405 | | | | |
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| Total assets | | $ | | 10,030,834 | | | | | | $ | | 8,618,973 | | | | |
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| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | | 5,172,665 | | 1.00 | | % | | $ | | 4,438,631 | | 2.14 | | % |
| Federal funds and repurchase agreements | | | | 1,364,476 | | 0.16 | | | | | | 1,228,640 | | 2.13 | | |
| Borrowed funds | | | | 52,502 | | 2.90 | | | | | | 46,407 | | 4.19 | | |
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| Total interest-bearing liabilities | | | | 6,589,643 | | 0.84 | | | | | | 5,713,678 | | 2.15 | | |
| Noninterest-bearing demand deposits | | | | 2,333,091 | | | | | | | | 1,887,034 | | | | |
| Other liabilities | | | | 108,397 | | | | | | | | 92,323 | | | | |
| Shareholders' equity | | | | 999,703 | | | | | | | | 925,938 | | | | |
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| | | | |
| Total liabilities and shareholders' equity | | $ | | 10,030,834 | | | | | | $ | | 8,618,973 | | | | |
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| Net interest spread | | | | 3.20 % | | | | | | 3.04 | | % |
| Net interest margin | | | | 3.44 | | | | | | 3.59 | | |
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| THIRD QUARTER 2009 | | | | | | | | | | | | |
| Shareholders' equity | | UMB999,703Financial Corporation | | 925,938 | | | | | | |
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| | | | |
| (unaudited, dollars in thousands, except share and per share data) | | | | | | | | | | | | |
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| Nine Months Ended September 30 | | 2009 | | | | 2008 | | | | | | |
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| | | | |
| Net interest income | | $ 225,277 | | $ | | 196,686 | | | | | | |
| Provision for loan losses | | 20,600 | | | | 12,350 | | | | | | |
| Noninterest income | | 226,750 | | | | 243,098 | | | | | | |
| Noninterest expense | | 340,779 | | | | 315,448 | | | | | | |
| Income before income taxes | | 90,648 | | | | 111,986 | | | | | | |
| Net income | | 65,626 | | | | 77,848 | | | | | | |
| Net income per share - Basic | | 1.62 | | | | 1.91 | | | | | | |
| Net income per share - Diluted | | 1.61 | | | | 1.89 | | | | | | |
| Return on average assets | | 0.87 | | % | | 1.21 | | % | | | | |
| Return on average equity | | 8.78 | | % | | 11.23 | | % | | | | |
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| Three Months Ended September 30 | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Net interest income | | $ 75,896 | | $ | | 66,298 | | | | | | |
| Provision for loan losses | | 8,300 | | | | 4,500 | | | | | | |
| Noninterest income | | 80,518 | | | | 79,121 | | | | | | |
| Noninterest expense | | 115,257 | | | | 109,853 | | | | | | |
| Income before income taxes | | 32,857 | | | | 31,066 | | | | | | |
| Net income | | 23,998 | | | | 21,769 | | | | | | |
| Net income per share - Basic | | 0.60 | | | | 0.54 | | | | | | |
| Net income per share - Diluted | | 0.59 | | | | 0.53 | | | | | | |
| Return on average assets | | 0.97 | | % | | 1.00 | | % | | | | |
| Return on average equity | | 9.43 | | % | | 9.25 | | % | | | | |
| |
| At December 31 | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Assets | | $ 10,235,496 | | $ | | 9,337,341 | | | | | | |
| Loans, net of unearned interest | | 4,314,977 | | | | 4,224,441 | | | | | | |
| Securities | | 4,502,596 | | | | 3,720,997 | | | | | | |
| Deposits | | 7,890,189 | | | | 7,081,148 | | | | | | |
| Shareholders' equity | | 1,013,628 | | | | 934,088 | | | | | | |
| Book value per share | | 25.08 | | | | 22.82 | | | | | | |
| Market price per share | | 40.44 | | | | 52.52 | | | | | | |
| Equity to assets | | 9.90 | | % | | 10.00 | | % | | | | |
| Allowance for loan losses | | $ 58,812 | | $ | | 50,428 | | | | | | |
| As a % of loans | | 1.36 | | % | | 1.19 | | % | | | | |
| Nonaccrual and restructured loans | | $ 22,392 | | $ | | 6,937 | | | | | | |
| As a % of loans | | 0.52 | | % | | 0.16 | | % | | | | |
| Loans over 90 days past due | | $ 5,624 | | $ | | 7,925 | | | | | | |
| As a % of loans | | 0.13 | | % | | 0.19 | | % | | | | |
| Other real estate owned | | $ 4,666 | | $ | | 1,557 | | | | | | |
| Net loan charge-offs quarter-to-date | | $ 4,596 | | $ | | 2,173 | | | | | | |
| As a % of average loans | | 0.42 | | % | | 0.21 | | % | | | | |
| Net loan charge-offs year-to-date | | $ 14,085 | | $ | | 7,908 | | | | | | |
| As a % of average loans | | 0.43 | | % | | 0.26 | | % | | | | |
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| Common shares outstanding | | 40,409,389 | | | | 40,930,514 | | | | | | |
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| Average Balances | | | | | | | | | | | | |
| Nine Months Ended September 30 | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Assets | | $ 10,030,834 | | $ | | 8,618,973 | | | | | | |
| Loans, net of unearned interest | | 4,400,316 | | | | 4,143,287 | | | | | | |
| Securities | | 4,272,765 | | | | 3,132,400 | | | | | | |
| Deposits | | 7,505,756 | | | | 6,325,665 | | | | | | |
| Selected Financial Data | | | | | | | | | | |
| of Affiliate Banks | | | | | | | | UMB Financial Corporation |
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| (unaudited, dollars in thousands) | | | | | | September 30, 2009 | | |
| | | | | | | Loans | | | | |
| | | | | | | Net of | | | | |
| | | Total | | | | Unearned | | Total | | Shareholders' |
| Missouri | | Assets | | | | Interest | | Deposits | | Equity |
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| UMB Bank, n.a. | | $ 8,619,907 | | $ | | 3,506,015 $ | | 6,813,583 $ | | 611,146 |
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| Colorado | | | | | | | | | | |
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| UMB Bank Colorado, n. a. | | 977,964 | | | | 535,231 | | 779,129 | | 157,813 |
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| Kansas | | | | | | | | | | |
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| UMB National Bank of America | | 571,074 | | | | 222,476 | | 406,578 | | 64,640 |
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| Arizona | | | | | | | | | | |
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| UMB Bank Arizona, n. a. | | 79,688 | | | | 67,535 | | 39,836 | | 10,342 |
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| Banking - Related Subsidiaries | | | | | | | | | | |
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| 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 | | | | | | | | | | |
| 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 | | | | | | | | | | |
| Scout Distributors, LLC | | | | | | | | | | |
| Scout Investment Advisors, Inc. | | | | | | | | | | |
