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 Wendel, 816.860.1685
UMB Financial Corporation Reports Second Quarter Earnings of $23.0 Million, an Increase of 20.9 Percent
Selected financial highlights:
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| · | Earnings per share of $0.57 vs. $0.47 per share a year ago |
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| · | Average earning assets increased 8.4 percent to $9.9 billion |
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| · | Nonperforming loans were $23.1 million, or 0.52 percent of loans of $4.4 billion, well below industry levels |
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| · | Average total deposits increased 8.9 percent to $8.3 billion |
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| · | Noninterest income increased 15.2 percent to $89.1 million |
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| · | Tier 1 capital ratio remains strong at 13.2 percent |
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Kansas City, Mo.(July 28, 2010)– UMB Financial Corporation (NASDAQ: UMBF), a financial services holding company, announced earnings for the three months ended June 30, 2010 of $23.0 million or $0.57 per share ($0.57 diluted). This is an increase of $4.0 million, or 20.9 percent, compared to second quarter 2009 earnings of $19.0 million or $0.47 per share ($0.47 diluted). Earnings for the six months ended June 30, 2010 were $49.2 million or $1.23 per share ($1.22 diluted). This is an increase of $7.6 million, or 18.2 percent, compared to the prior year-to-date earnings of $41.6 million or $1.03 per share ($1.02 diluted).
“We are executing on our strategies, as evidenced by this quarter’s results, in spite of the continuing effects of the weak economy and low interest rates,” noted Mariner Kemper, Chairman and Chief Executive Officer of UMB Financial Corporation. “At a time when improvements in industry earnings are driven in part by decreasing provision for loan losses, I am particularly proud of our positive results considering we did not benefit from provision reductions. We take pride in knowing that our business model – anchored by diverse revenue streams – drives solid performance in all types of economic environments.”
Net Interest Income and Margin
Net interest income for the second quarter of 2010 increased $3.5 million, or 4.7 percent, compared to the same period in 2009. Average earning assets increased by $770.8 million, or 8.4 percent, compared to the second quarter of 2009. This increase was due to a $776.9 million, or 18.7 percent, increase in average total securities, including trading securities. Net interest margin decreased 13 basis points to 3.29 percent for the three months ended June 30, 2010 compared to the same quarter in 2009.
Noninterest Income and Expense
Noninterest income increased $11.8 million, or 15.2 percent, for the three months ended June 30, 2010 compared to the same period in 2009. This increase is primarily attributed to increased trust and securities processing income of $10.0 million, or 34.9 percent, for the three months ended June 30, 2010 compared to the same period in 2009. This increase was primarily due to a $4.3 million, or 38.3 percent, increase in fund administration and custody services and a $4.5 million, or 59.1 percent, increase in advisory fee income from the Scout Funds.
Noninterest expense increased $7.2 million, or 6.1 percent, for the three months ended June 30, 2010 compared to the same period in 2009. The primary drivers of this increase are higher salary and benefits expense of $4.0 million, or 6.6 percent, and increased processing fees of $3.1 million, or 37.8 percent. Salaries and benefits increased mostly due to higher base salary, commission, and health insurance costs. The processing fees increase, which is correlated to the increase in trust and securities processing income noted above, is due to increased third party custodian fees related to international transactions from mutual fund clients and fees paid by the advisor to third-party distributors of the Scout Funds.
“During the second quarter, we continued to achieve greater scale in the overall diversity of our revenue mix,” said Peter deSilva, President and Chief Operating Officer. “Assets under management in our Scout Funds grew from $5.2 billion at June 30, 2009 to $7.0 billion at June 30, 2010. Fee income from our fund services business and advisory fee income from the Scout funds made strong contributions as well this quarter, with a 38.3 and 59.1 percent increase, respectively, compared to last year. Additionally, we signed a definitive agreement during the quarter with Prairie Capital Management which has assets under management of $2.2 billion.Prairie Capital Management will provide our wealth management clients with the sophisticated products and services they need to accumulate, grow and protecttheir wealth.”
Balance Sheet
Average total assets for the three months ended June 30, 2010 were $10.9 billion compared to $10.0 billion for the same period in 2009, an increase of $851.4 million, or 8.5 percent. Average earning assets increased by $770.8 million for the period, or 8.4 percent.
Actual loan balances on June 30, 2010 were $4.4 billion, an increase of $116.5 million, or 2.7 percent, compared to 2009. Real estate loans increased $215.6 million, or 12.7 percent, due to increases in commercial real estate and home equity loans. Commercial loans decreased $86.9 million, or 4.2 percent. Average loan balances for the three months ended June 30, 2010 and 2009 were flat at $4.4 billion.
Nonperforming loans increased to $23.1 million at June 30, 2010 from $14.1 million at June 30, 2009. As a percentage of loans, nonperforming loans increased to 0.52 percent as of June 30, 2010 compared to 0.33 percent at June 30, 2009. This increase continues to be predominately due to one syndicated national credit, which was placed on nonaccrual during 2009. Nonperforming loans are defined as nonaccrual loans and restructured loans. By comparison, the industry median for nonperforming loans as of March 31, 2010 was 4.14 percent. The company’s allowance for loan losses totaled $70.1 million, or 1.58 percent of loans as of June 30, 2010 compared to $55.1 million, or 1.27 percent of loans as of June 30, 2009.
For the three months ended June 30, 2010, average securities, including trading securities, totaled $4.9 billion. This is an increase of $776.9 million, or 18.7 percent, from the same period in 2009.
Average total deposits increased $679.9 million, or 8.9 percent, to $8.3 billion for the three months ended June 30, 2010 compared to the same period in 2009. Average money market accounts increased by $266.9 million, or 18.6 percent, in 2010 as compared to 2009. Average noninterest-bearing demand deposits increased $319.2 million, or 13.0 percent, compared to 2009. Total deposits as of June 30, 2010 were $8.4 billion, compared to $7.7 billion at June 30, 2009, a 9.7 percent increase.
“The securities portfolio is again the largest earning asset on our balance sheet. While the interest rate environment continues to challenge the financial industry, we effectively managed our duration, interest rate, and liquidity risks,” said Mike Hagedorn, Chief Financial Officer. “UMB is well positioned despite the pressures the industry is facing. Executing on our business model has continued to deliver sound financial results, as we are not overly dependent on any one core business for growth.”
As of June 30, 2010, UMB had total shareholders’ equity of $1.1 billion, an increase of 7.7 percent over June 30, 2009.The company declared its regular quarterly cash dividend of $0.185 cents per
share to be paid on October 1, 2010, to shareholders of record at the close of business on September 10, 2010.
Year-to-Date
Earnings for the six months ended June 30, 2010 were $49.2 million or $1.23 per share ($1.22 diluted). This is an increase of $7.6 million, or 18.2 percent, compared to the prior year-to-date earnings of $41.6 million or $1.03 per share ($1.02 diluted).
Net interest income for the six months ended June 30, 2010 increased $4.1 million, or 2.7 percent, compared to the same period in 2009. Net interest margin decreased to 3.24 percent for the six months ended June 30, 2010 as compared to 3.41 percent for the same period in 2009.
Noninterest income increased $29.3 million, or 20.0 percent, to $175.5 million for the six months ended June 30, 2010 as compared to the same period in 2009. The increase is primarily attributable to higher trust and securities processing income. Trust and securities processing income increased $20.7 million, or 38.6 percent, for year-to-date June 30, 2010 as compared to the same period in 2009. Gains from the sale of securities available for sale of $6.5 million were recognized during the first six months of 2010.
Noninterest expense increased $18.0 million, or 8.0 percent, for the six months ended June 30, 2010 compared to the same period in 2009. Salary and employee benefit expense increased by $8.2 million, or 7.0 percent, mostly due to higher employee base salaries, higher commissions and bonuses and higher cost of benefits. Processing fees increased $7.1 million, or 46.9 percent, due to increased third party custodian fees related to international transactions from mutual fund clients and fees paid by the advisor to third-party distributors of the Scout Funds.
The company plans to host a conference call to discuss its second quarter financial results on July 28, 2010, at 8:30 a.m. (CDT). Interested parties may access the call by dialing U.S. (toll-free) 1-800-762-8779 or (U.S.) 1-480-629-9771 or by following the Web link to the live call or by visiting umb.com to access the link to the live call.
A replay of the conference call may be heard until August 11, 2010, by calling (toll-free) 1-800-406-7325 or (U.S.) 1-303-590-3030. The replay pass code required for playback is conference ID 4324369. 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, its 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.
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 commercial, institutional and personal 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. For more information, visit umb.com or follow us on Twitter at @UMBFinancial.
| CONSOLIDATED BALANCE SHEETS | | | | UMB Financial Corporation |
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| (unaudited, dollars in thousands) | | | | | | | | |
| | | | | | | June 30, | | |
| Assets | | | | 2010 | | | | 2009 |
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| Loans | | $ | | 4,448,418 | | $ | | 4,331,887 |
| Allowance for loan losses | | | | (70,110) | | | | (55,109) |
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| Net loans | | | | 4,378,308 | | | | 4,276,778 |
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| Loans held for sale | | | | 10,439 | | | | 38,060 |
| Investment securities: | | | | | | | | |
| Available for sale | | | | 4,925,822 | | | | 3,826,390 |
| Held to maturity | | | | 57,075 | | | | 48,757 |
| Trading securities | | | | 47,779 | | | | 38,023 |
| Federal Reserve Bank Stock and other | | | | 21,838 | | | | 21,962 |
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| Total investment securities | | | | 5,052,514 | | | | 3,935,132 |
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| Federal funds and resell agreements | | | | 29,636 | | | | 130,100 |
| Interest-bearing due from banks | | | | 718,410 | | | | 698,246 |
| Cash and due from banks | | | | 311,171 | | | | 359,469 |
| Bank premises and equipment, net | | | | 213,648 | | | | 220,280 |
| Accrued income | | | | 61,810 | | | | 61,076 |
| Goodwill | | | | 131,356 | | | | 123,627 |
| Other intangibles | | | | 53,015 | | | | 39,769 |
| Other assets | | | | 101,973 | | | | 72,589 |
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| Total assets | | $ | | 11,062,280 | | $ | | 9,955,126 |
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| Liabilities | | | | | | | | |
| Deposits: | | | | | | | | |
| Noninterest-bearing demand | | $ | | 2,865,776 | | $ | | 2,512,369 |
| Interest-bearing demand and savings | | | | 4,047,404 | | | | 3,557,310 |
| Time deposits under $100,000 | | | | 716,839 | | | | 784,535 |
| Time deposits of $100,000 or more | | | | 790,373 | | | | 819,795 |
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| Total deposits | | | | 8,420,392 | | | | 7,674,009 |
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| Federal funds and repurchase agreements | | | | 1,400,866 | | | | 1,088,446 |
| Short-term debt | | | | 19,722 | | | | 35,996 |
| Long-term debt | | | | 18,216 | | | | 31,073 |
| Accrued expenses and taxes | | | | 117,837 | | | | 110,255 |
| Other liabilities | | | | 16,749 | | | | 23,363 |
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| Total liabilities | | | | 9,993,782 | | | | 8,963,142 |
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| Shareholders' Equity | | | | | | | | |
| Common stock | | | | 55,057 | | | | 55,057 |
| Capital surplus | | | | 715,038 | | | | 709,839 |
| Retained earnings | | | | 596,973 | | | | 529,448 |
| Accumulated other comprehensive income | | | | 60,378 | | | | 44,238 |
| Treasury stock | | | | (358,948) | | | | (346,598) |
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| Total shareholders' equity | | | | 1,068,498 | | | | 991,984 |
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| Total liabilities and shareholders' equity | | $ | | 11,062,280 | | $ | | 9,955,126 |
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| Consolidated Statements of Income | | | | | | | | | | UMB Financial Corporation |
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| (unaudited, dollars in thousands except share and per share data) | | | | | | | | | | | | | | |
| | | Three Months Ended | | | | Six Months Ended |
| | | June 30, | | | | | | | | June 30, | | |
| Interest Income | | 2010 | | | | 2009 | | | | 2010 | | | | 2009 |
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| Loans | | $ 55,949 | | $ | | 53,535 | | $ | | 109,432 | | $ | | 106,335 |
| Securities: | | | | | | | | | | | | | | |
| Taxable interest | | 22,496 | | | | 25,818 | | | | 46,275 | | | | 54,935 |
| Tax-exempt interest | | 7,028 | | | | 7,168 | | | | 14,345 | | | | 14,188 |
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| Total securities income | | 29,524 | | | | 32,986 | | | | 60,620 | | | | 69,123 |
| Federal funds and resell agreements | | 47 | | | | 50 | | | | 109 | | | | 181 |
| Interest-bearing due from banks | | 1,032 | | | | 942 | | | | 2,350 | | | | 1,787 |
| Trading securities | | 181 | | | | 194 | | | | 323 | | | | 362 |
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| Total interest income | | 86,733 | | | | 87,707 | | | | 172,834 | | | | 177,788 |
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| Interest Expense | | | | | | | | | | | | | | |
| Deposits | | 8,462 | | | | 12,609 | | | | 18,085 | | | | 26,433 |
| Federal funds and repurchase agreements | | 503 | | | | 537 | | | | 948 | | | | 1,197 |
| Long-term debt | | 100 | | | | 387 | | | | 360 | | | | 777 |
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| Total interest expense | | 9,065 | | | | 13,533 | | | | 19,393 | | | | 28,407 |
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| Net interest income | | 77,668 | | | | 74,174 | | | | 153,441 | | | | 149,381 |
| Provision for loan losses | | 8,100 | | | | 6,300 | | | | 16,410 | | | | 12,300 |
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| Net interest income after provision for loan losses | | 69,568 | | | | 67,874 | | | | 137,031 | | | | 137,081 |
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| Noninterest Income | | | | | | | | | | | | | | |
| Trust and securities processing | | 38,615 | | | | 28,635 | | | | 74,187 | | | | 53,534 |
| Trading and investment banking | | 5,530 | | | | 8,977 | | | | 12,557 | | | | 13,838 |
| Service charges on deposits | | 20,163 | | | | 21,135 | | | | 40,683 | | | | 41,929 |
| Insurance fees and commissions | | 1,287 | | | | 886 | | | | 2,986 | | | | 2,456 |
| Brokerage fees | | 1,598 | | | | 1,512 | | | | 2,934 | | | | 3,864 |
| Bankcard fees | | 13,979 | | | | 11,142 | | | | 25,998 | | | | 22,089 |
| Gains on sale of securities available for sale, net | | 1,136 | | | | 1,849 | | | | 6,518 | | | | 1,891 |
| Other | | 6,792 | | | | 3,187 | | | | 9,643 | | | | 6,632 |
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| Total noninterest income | | 89,100 | | | | 77,323 | | | | 175,506 | | | | 146,233 |
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| Noninterest Expense | | | | | | | | | | | | | | |
| Salaries and employee benefits | | 63,552 | | | | 59,596 | | | | 125,805 | | | | 117,593 |
| Occupancy, net | | 8,924 | | | | 8,572 | | | | 17,844 | | | | 16,716 |
| Equipment | | 11,213 | | | | 11,998 | | | | 22,083 | | | | 24,994 |
| Supplies and services | | 4,680 | | | | 5,570 | | | | 9,387 | | | | 10,947 |
| Marketing and business development | | 4,430 | | | | 4,171 | | | | 8,135 | | | | 7,361 |
| Processing fees | | 11,214 | | | | 8,140 | | | | 22,242 | | | | 15,143 |
| Legal and consulting | | 2,770 | | | | 2,644 | | | | 4,392 | | | | 4,192 |
| Bankcard | | 4,360 | | | | 2,927 | | | | 7,550 | | | | 6,884 |
| Amortization of other intangibles | | 2,442 | | | | 1,495 | | | | 4,533 | | | | 2,471 |
| Regulatory fees | | 3,516 | | | | 7,908 | | | | 6,754 | | | | 9,635 |
| Other | | 9,021 | | | | 5,859 | | | | 14,750 | | | | 9,587 |
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| Total noninterest expense | | 126,122 | | | | 118,880 | | | | 243,475 | | | | 225,523 |
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| Income before income taxes | | 32,546 | | | | 26,317 | | | | 69,062 | | | | 57,791 |
| Income tax provision | | 9,533 | | | | 7,290 | | | | 19,864 | | | | 16,163 |
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| Net income | | $ 23,013 | | $ | | 19,027 | | $ | | 49,198 | | $ | | 41,628 |
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| Per Share Data | | | | | | | | | | | | | | |
| Net income - basic | | $ 0.57 | | $ | | 0.47 | | $ | | 1.23 | | $ | | 1.03 |
| Net income – diluted | | 0.57 | | | | 0.47 | | | | 1.22 | | | | 1.02 |
| Dividends | | 0.185 | | | | 0.175 | | | | 0.370 | | | | 0.350 |
| Weighted average shares outstanding | | 40,079,714 | | | | 40,374,963 | | | | 40,084,593 | | | | 40,485,689 |
| 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 | | | | Stock | | | | Total |
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| 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 |
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| 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 |
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| Balance – June 30,2009 | | $ | | 55,057 | | $ | | 709,839 | | $ | | 529,448 | | $ | | 44,238 | | $ | | (346,598) | | $ | | 991,984 |
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| Balance - January 1, 2010 | | $ | | 55,057 | | | | 712,774 | | | | 562,748 | | | | 40,454 | | | | (355,482) | | | | 1,015,551 |
| Comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | - | | | | - | | | | 49,198 | | | | - | | | | - | | | | 49,198 |
| Change in unrealized gains on | | | | | | | | | | | | | | | | | | | | | | | | |
| securities | | | | - | | | | - | | | | - | | | | 19,924 | | | | - | | | | 19,924 |
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| Total comprehensive income | | | | | | | | | | | | | | | | �� | | | | | | | | 69,122 |
| Cash dividends ($0.37 per share) | | | | - | | | | - | | | | (14,973) | | | | - | | | | - | | | | (14,973) |
| Purchase of treasury stock | | | | - | | | | - | | | | - | | | | - | | | | (5,211) | | | | (5,211) |
| Issuance of equity awards | | | | - | | | | (1,225) | | | | - | | | | - | | | | 1,350 | | | | 125 |
| Recognition of equity based | | | | | | | | | | | | | | | | | | | | | | | | |
| compensation | | | | - | | | | 2,882 | | | | - | | | | - | | | | - | | | | 2,882 |
| Net tax benefit related to equity | | | | | | | | | | | | | | | | | | | | | | | | |
| compensation plans | | | | - | | | | 147 | | | | - | | | | - | | | | - | | | | 147 |
| Sale of treasury stock | | | | - | | | | 233 | | | | - | | | | - | | | | 125 | | | | 358 |
| Exercise of stock options | | | | - | | | | 227 | | | | - | | | | - | | | | 270 | | | | 497 |
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| Balance – June 30, 2010 | | $ | | 55,057 | | | | 715,038 | | | | 596,973 | | | | 60,378 | | | | (358,948) | | | | 1,068,498 |
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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 June 30, | | | | |
| | | | | 2010 | | | | | | 2009 | | | | |
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| | | | | Average | | Average | | | | | | Average | | Average | | |
| Assets | | | | Balance | | Yield/Rate | | | | | | Balance | | Yield/Rate | | |
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| Loans, net of unearned interest | | $ | | 4,418,479 | | 5.08 | | % | | $ | | 4,433,564 | | 4.85 | | % |
| Securities: | | | | | | | | | | | | | | | | |
| Taxable | | | | 3,909,296 | | 2.31 | | | | | | 3,224,646 | | 3.21 | | |
| Tax-exempt | | | | 977,538 | | 4.47 | | | | | | 894,669 | | 4.99 | | |
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| Total securities | | | | 4,886,834 | | 2.74 | | | | | | 4,119,315 | | 3.60 | | |
| Federal funds and resell agreements | | | | 43,402 | | 0.43 | | | | | | 45,967 | | 0.44 | | |
| Interest-bearing due from banks | | | | 551,402 | | 0.75 | | | | | | 539,774 | | 0.70 | | |
| Trading securities | | | | 40,399 | | 1.92 | | | | | | 31,056 | | 2.84 | | |
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| Total earning assets | | | | 9,940,516 | | 3.66 | | | | | | 9,169,676 | | 4.01 | | |
| Allowance for loan losses | | | | (67,991) | | | | | | | | (55,336) | | | | |
| Other assets | | | | 983,600 | | | | | | | | 890,399 | | | | |
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| Total assets | | $ | | 10,856,125 | | | | | | $ | | 10,004,739 | | | | |
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| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | | 5,510,102 | | 0.62 | | % | | $ | | 5,149,419 | | 0.98 | | % |
| Federal funds and repurchase agreements | | | | 1,345,516 | | 0.15 | | | | | | 1,254,984 | | 0.17 | | |
| Borrowed funds | | | | 46,154 | | 0.87 | | | | | | 55,023 | | 2.82 | | |
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| Total interest-bearing liabilities | | | | 6,901,772 | | 0.53 | | | | | | 6,459,426 | | 0.84 | | |
| Noninterest-bearing demand deposits | | | | 2,771,267 | | | | | | | | 2,452,041 | | | | |
| Other liabilities | | | | 131,067 | | | | | | | | 97,302 | | | | |
| Shareholders' equity | | | | 1,052,019 | | | | | | | | 995,970 | | | | |
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| Total liabilities and shareholders' equity | | $ | | 10,856,125 | | | | | | $ | | 10,004,739 | | | | |
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| Net interest spread | | | | | | 3.13 | | % | | | | | | 3.17 | | % |
| Net interest margin | | | | | | 3.29 | | | | | | | | 3.42 | | |
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| | | | | | | Six Months Ended June 30, | | | | |
| | | | | 2010 | | | | | | 2009 | | | | |
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| | | | | Average | | Average | | | | | | Average | | Average | | |
| Assets | | | | Balance | | Yield/Rate | | | | | | Balance | | Yield/Rate | | |
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| Loans, net of unearned interest | | $ | | 4,391,601 | | 5.03 | | % | | $ | | 4,423,369 | | 4.85 | | % |
| Securities: | | | | | | | | | | | | | | | | |
| Taxable | | | | 3,823,603 | | 2.44 | | | | | | 3,454,857 | | 3.21 | | |
| Tax-exempt | | | | 979,218 | | 4.58 | | | | | | 874,301 | | 5.08 | | |
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| Total securities | | | | 4,802,821 | | 2.88 | | | | | | 4,329,158 | | 3.59 | | |
| Federal funds and resell agreements | | | | 65,854 | | 0.33 | | | | | | 66,097 | | 0.55 | | |
| Interest-bearing due from banks | | | | 748,294 | | 0.63 | | | | | | 473,480 | | 0.76 | | |
| Trading securities | | | | 38,308 | | 1.84 | | | | | | 31,200 | | 2.62 | | |
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| Total earning assets | | | | 10,046,878 | | 3.63 | | | | | | 9,323,304 | | 4.02 | | |
| Allowance for loan losses | | | | (66,499) | | | | | | | | (54,479) | | | | |
| Other assets | | | | 953,165 | | | | | | | | 856,635 | | | | |
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| Total assets | | $ | | 10,933,544 | | | | | | $ | | 10,125,460 | | | | |
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| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | | 5,587,925 | | 0.65 | | % | | $ | | 5,173,137 | | 1.03 | | % |
| Federal funds and repurchase agreements | | | | 1,367,838 | | 0.14 | | | | | | 1,455,881 | | 0.17 | | |
| Borrowed funds | | | | 46,934 | | 1.55 | | | | | | 53,629 | | 2.92 | | |
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| Total interest-bearing liabilities | | | | 7,002,697 | | 0.56 | | | | | | 6,682,647 | | 0.86 | | |
| Noninterest-bearing demand deposits | | | | 2,759,309 | | | | | | | | 2,351,013 | | | | |
| Other liabilities | | | | 127,346 | | | | | | | | 97,388 | | | | |
| Shareholders' equity | | | | 1,044,192 | | | | | | | | 994,412 | | | | |
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| Total liabilities and shareholders' equity | | $ | | 10,933,544 | | | | | | $ | | 10,125,460 | | | | |
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| Net interest spread | | 3.07 | | % | | 3.16 | | % |
| Net interest margin | | 3.24 | | | | 3.41 | | |
| SECOND QUARTER 2010 | | | | | | | | | | | | |
| FINANCIAL HIGHLIGHTS | | | | UMB Financial Corporation | | |
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| (unaudited, dollars in thousands, except share and per share data) | | | | | | | | | | |
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| Six Months Ended June 30 | | | | 2010 | | | | | | 2009 | | |
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| Net interest income | | $ | | 153,441 | | | | $ | | 149,381 | | |
| Provision for loan losses | | | | 16,410 | | | | | | 12,300 | | |
| Noninterest income | | | | 175,506 | | | | | | 146,233 | | |
| Noninterest expense | | | | 243,475 | | | | | | 225,523 | | |
| Income before income taxes | | | | 69,062 | | | | | | 57,791 | | |
| Net income | | | | 49,198 | | | | | | 41,628 | | |
| Net income per share – Basic | | | | 1.23 | | | | | | 1.03 | | |
| Net income per share – Diluted | | | | 1.22 | | | | | | 1.02 | | |
| Return on average assets | | | | 0.91 | | % | | | | 0.83 | | % |
| Return on average equity | | | | 9.50 | | % | | | | 8.44 | | % |
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| Three Months Ended June 30 | | | | | | | | | | | | |
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| Net interest income | | $ | | 77,668 | | | | $ | | 74,174 | | |
| Provision for loan losses | | | | 8,100 | | | | | | 6,300 | | |
| Noninterest income | | | | 89,100 | | | | | | 77,323 | | |
| Noninterest expense | | | | 126,122 | | | | | | 118,880 | | |
| Income before income taxes | | | | 32,546 | | | | | | 26,317 | | |
| Net income | | | | 23,013 | | | | | | 19,027 | | |
| Net income per share – Basic | | | | 0.57 | | | | | | 0.47 | | |
| Net income per share – Diluted | | | | 0.57 | | | | | | 0.47 | | |
| Return on average assets | | | | 0.85 | | % | | | | 0.76 | | % |
| Return on average equity | | | | 8.77 | | % | | | | 7.66 | | % |
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| At June 30 | | | | | | | | | | | | |
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| Assets | | $ | | 11,062,280 | | | | $ | | 9,955,126 | | |
| Loans, net of unearned interest | | | | 4,448,418 | | | | | | 4,331,887 | | |
| Securities | | | | 5,052,514 | | | | | | 3,935,132 | | |
| Deposits | | | | 8,420,392 | | | | | | 7,674,009 | | |
| Shareholders' equity | | | | 1,068,498 | | | | | | 991,984 | | |
| Book value per share | | | | 26.42 | | | | | | 24.42 | | |
| Market price per share | | | | 35.56 | | | | | | 38.01 | | |
| Equity to assets | | | | 9.66 | | % | | | | 9.96 | | % |
| Allowance for loan losses | | $ | | 70,110 | | | | $ | | 55,109 | | |
| As a % of loans | | | | 1.58 | | % | | | | 1.27 | | % |
| Nonaccrual and restructured loans | | $ | | 23,139 | | | | $ | | 14,123 | | |
| As a % of loans | | | | 0.52 | | % | | | | 0.33 | | % |
| Loans over 90 days past due | | $ | | 14,630 | | | | $ | | 6,833 | | |
| As a % of loans | | | | 0.33 | | % | | | | 0.16 | | % |
| Other real estate owned | | $ | | 6,737 | | | | $ | | 3,859 | | |
| Net loan charge-offs quarter-to-date | | $ | | 5,433 | | | | $ | | 5,196 | | |
| As a % of average loans | | | | 0.49 | | % | | | | 0.47 | | % |
| Net loan charge-offs year-to-date | | $ | | 10,440 | | | | $ | | 9,488 | | |
| As a % of average loans | | | | 0.48 | | % | | | | 0.44 | | % |
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| Common shares outstanding | | | | 40,443,242 | | | | | | 40,626,555 | | |
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| Average Balances | | | | | | | | | | | | |
| Six Months Ended June 30 | | | | | | | | | | | | |
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| Assets | | $ | | 10,933,544 | | | | $ | | 10,125,460 | | |
| Loans, net of unearned interest | | | | 4,391,601 | | | | | | 4,423,369 | | |
| Securities | | | | 4,802,821 | | | | | | 4,329,185 | | |
| Deposits | | | | 8,347,234 | | | | | | 7,524,150 | | |
| Shareholders' equity | | | | 1,044,192 | | | | | | 994,412 | | |
| Selected Financial Data | | | | | | | | | | |
| of Affiliate Banks | | | | | | | | UMB Financial Corporation |
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| (unaudited, dollars in thousands) | | | | | | June 30, 2010 | | |
| | | | | | | Loans | | | | |
| | | | | | | Net of | | | | |
| | | Total | | | | Unearned | | Total | | Shareholders' |
| Missouri | | Assets | | | | Interest | | Deposits | | Equity |
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| UMB Bank, n.a. | | $ 9,454,453 | | $ | | 3,612,422 $ | | 7,179,066 $ | | 673,680 |
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| Colorado | | | | | | | | | | |
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| UMB Bank Colorado, n. a. | | 1,060,363 | | | | 539,493 | | 872,502 | | 159,540 |
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| Kansas | | | | | | | | | | |
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| UMB National Bank of America | | 645,783 | | | | 218,700 | | 411,476 | | 65,275 |
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| Arizona | | | | | | | | | | |
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| UMB Bank Arizona, n. a. | | 102,117 | | | | 86,606 | | 46,267 | | 10,878 |
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| Banking - Related Subsidiaries | | | | | | | | | | |
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| UMB CDC, Inc. | | | | | | | | | | |
| UMB Banc Leasing Corp. | | | | | | | | | | |
| UMB Financial Services, Inc. | | | | | | | | | | |
| UMB Insurance, Inc. | | | | | | | | | | |
| UMB Capital Corporation | | | | | | | | | | |
| United Missouri Insurance Company | | | | | | | | | | |
| UMB South Dakota Trust Company | | | | | | | | | | |
| UMB Fund Services, Inc. | | | | | | | | | | |
| Kansas City Realty Company | | | | | | | | | | |
| Kansas City Financial Cor UMB Bank & | | | | | | | | | | |
| UMB RedevelopmentAssociationCorporation | | | | | | | | | | |
| 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. | | | | | | | | | | |
