UMB Financial Corporation
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1010 Grand Boulevard
Kansas City, MO 64106
816.860.7000
umb.com
//FOR IMMEDIATE RELEASE//
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Media Contact: Mandie Nelson, 816.860.5088
Investor Relations Contact: Abby Wendel, 816.860.1685
UMB Financial Corporation Reports Third Quarter Earnings of $22.8 Million, or $0.57 per Diluted Share
Selected financial highlights:
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| · | Average loans increased 4.9 percent to $4.6 billion |
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| · | Nonperforming loans were $25.0 million, or 0.55 percent of loans of $4.6 billion |
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| · | Average total deposits increased 10.9 percent to $8.3 billion |
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| · | Average noninterest bearing deposits increased 18.0 percent |
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| · | Noninterest income increased 11.9 percent to $90.1 million |
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| · | Total Assets Under Management were $16.5 billion, up 46 percent |
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| · | Tier 1 capital ratio remains strong at 12.6 percent |
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Kansas City, Mo.(October 27, 2010)– UMB Financial Corporation (NASDAQ: UMBF), a financial services holding company, announced earnings for the three months ended September 30, 2010 of $22.8 million or $0.57 per share ($0.57 diluted). This is a decrease of $1.2 million, or 5.1 percent, compared to third quarter 2009 earnings of $24.0 million or $0.60 per share ($0.59 diluted). Earnings for the nine months ended September 30, 2010 were $72.0 million or $1.80 per share ($1.78 diluted). This is an increase of $6.3 million, or 9.7 percent, compared to the prior year-to-date earnings of $65.6 million or $1.62 per share ($1.61 diluted).
“Our strong results for the third quarter demonstrate continued successful execution on our business model, which is built on quality, revenue diversity, and stability,” noted Mariner Kemper, Chairman and Chief Executive Officer. “Actual loans increased 6.2 percent, and total revenue was 7.7 percent higher, fueled by an 11.9 percent increase in noninterest income, compared to the third quarter 2009. We are very pleased with these results considering we remain in the midst of a slow economic recovery. Although expenses also advanced this quarter, approximately 40 percent of the increase reflects investments we’re making in acquisitions to drive long term shareholder value.Over time, we expect operating leverage on these investments to improve as we continue to gain scale in our fee businesses.”
Net Interest Income and Margin
Net interest income for the third quarter of 2010 increased $2.5 million, or 3.3 percent, compared to the same period in 2009. Average earning assets increased by $1.1 billion, or 11.8 percent, compared to the third quarter of 2009. This increase was due to a $978.1 million, or 23.3 percent, increase in average total securities, including trading securities. Net interest margin decreased 28 basis points to 3.23 percent for the three months ended September 30, 2010 compared to the same quarter in 2009.
Noninterest Income and Expense
Noninterest income increased $9.6 million, or 11.9 percent, for the three months ended September 30, 2010 compared to the same period in 2009. This increase is primarily attributed to increased trust and
securities processing income of $7.2 million, or 22.1 percent, for the three months ended September 30, 2010 compared to the same period in 2009. This increase was primarily due to a $3.2 million, or 36.0 percent, increase in advisory fee income from the Scout Funds, a $1.8 million, or 12.9 percent, increase in fund administration and custody services, and $1.6 million of fee revenue from the newly acquired Prairie Capital Management, LLC. Bankcard fees increased $2.9 million, or 24.7 percent, compared to the third quarter of 2009 from increased processing fee income. Gains of $0.8 million on securities available for sale were recognized in the third quarter of 2010 compared to $3.3 million during the same period in 2009.
Noninterest expense increased $15.4 million, or 13.3 percent, for the three months ended September 30, 2010 compared to the same period in 2009. The primary driver of this increase is higher salary and benefits expense of $8.9 million, or 14.7 percent, due to higher base salary, commission, and health insurance costs. Of this increase in salary and benefits expense, approximately $3.7 million, or 41.6 percent, is related to salary and benefits from acquisitions. Processing fees increased $1.9 million, or 19.8 percent. 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. Amortization of intangible assets increased $1.3 million, or 70.6 percent, and legal and consulting expenses increased $1.3 million, or 48.7 percent, from the third quarter of 2009.
“The increase in noninterest income is due to three primary drivers: revenue from fund administration and custody services, advisory fee income from the Scout Funds, and fee revenue from our growing card services business,” said Peter deSilva, President and Chief Operating Officer. “We are pleased with the performance of these businesses, with each posting double-digit growth rates for an increase of $7.9 million in noninterest income for the third quarter 2010 compared to the third quarter 2009. Additionally, we closed on the Prairie Capital Management transaction during the quarter and announced a definitive agreement to acquire Reams Asset Management. We look forward to working with the clients of these two outstanding businesses.”
Balance Sheet
Average total assets for the three months ended September 30, 2010 were $11.0 billion compared to $9.8 billion for the same period in 2009, an increase of $1.2 billion, or 11.7 percent. Average earning assets increased by $1.1 billion for the period, or 11.8 percent.
Actual loan balances on September 30, 2010 were $4.6 billion, an increase of $268.6 million, or 6.2 percent, compared to 2009. Real estate loans increased $242.3 million, or 13.8 percent, due to increases in commercial real estate and home equity loans. Commercial loans increased $38.1 million, or 1.9 percent. Average loan balances for the three months ended September 30, 2010 increased $214.9 million, or 4.9 percent compared to the same period in 2009.
Nonperforming loans increased to $25.0 million at September 30, 2010 from $22.4 million at September 30, 2009. As a percentage of loans, nonperforming loans increased to 0.55 percent as of September 30, 2010 compared to 0.52 percent at September 30, 2009. Nonperforming loans are defined as nonaccrual loans and restructured loans. By comparison, the industry median for nonperforming loans as of June 30, 2010 was 4.07 percent. The company’s allowance for loan losses totaled $72.7 million, or 1.59 percent of loans as of September 30, 2010 compared to $58.8 million, or 1.36 percent of loans as of September 30, 2009.
For the three months ended September 30, 2010, average securities, including trading securities, totaled $5.2 billion. This is an increase of $978.1 million, or 23.3 percent, from the same period in 2009.
Average total deposits increased $816.1 million, or 10.9 percent, to $8.3 billion for the three months ended September 30, 2010 compared to the same period in 2009. Average money market accounts increased by $374.1 million, or 26.4 percent, in 2010 as compared to 2009. Average noninterest-bearing demand deposits increased $413.2 million, or 18.0 percent, compared to 2009. Total deposits
as of September 30, 2010 were $8.6 billion, compared to $7.9 billion at September 30, 2009, a 9.0 percent increase.
“Actions taken in our investment portfolio, combined with loan growth, contributed to reducing net interest margin compression allowing net interest income to grow 3.3 percent this quarter. On a linked-quarter basis, margin decreased just 6 basis points, compared to the 28 basis point decline from the third quarter 2009 to the third quarter 2010,” said Mike Hagedorn, Chief Financial Officer. “We purchased securities during the third quarter 2010 at slightly higher interest rates than the purchases we made in the second quarter 2010. Overall, our balance sheet remains strong, fueled by growth in deposits, a strength that underpins our franchise value.”
As of September 30, 2010, UMB had total shareholders’ equity of $1.1 billion, an increase of 7.6 percent over September 30, 2009.
Year-to-Date
Earnings for the nine months ended September 30, 2010 were $72.0 million or $1.80 per share ($1.78 diluted). This is an increase of $6.3 million, or 9.7 percent, compared to the prior year-to-date earnings of $65.6 million or $1.62 per share ($1.61 diluted).
Net interest income for the nine months ended September 30, 2010 increased $6.5 million, or 2.9 percent, compared to the same period in 2009. Net interest margin decreased to 3.24 percent for the nine months ended September 30, 2010 as compared to 3.44 percent for the same period in 2009.
Noninterest income increased $38.8 million, or 17.1 percent, to $265.6 million for the nine months ended September 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 $27.9 million, or 32.3 percent, for year-to-date September 30, 2010 as compared to the same period in 2009. Bankcard fees increased $6.8 million, or 20.1 percent.
Noninterest expense increased $33.3 million, or 9.8 percent, for the nine months ended September 30, 2010 compared to the same period in 2009. Salary and employee benefit expense increased by $17.1 million, or 9.6 percent, mostly due to higher employee base salaries, higher commissions and bonuses and higher cost of benefits. Processing fees increased $9.0 million, or 36.3 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 2010 third quarter earnings results on October 27, 2010, at 8:30 a.m. (CST). Interested parties may access the call by dialing U.S. (toll-free) 877-941-2927 or (U.S.) 480-629-9690, 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 November 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 4370229#. 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 133 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) | | | | | | | | |
| | | | | September 30, |
| Assets | | | | 2010 | | | | 2009 |
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| Loans | | $ | | 4,583,562 | | $ | | 4,314,977 |
| Allowance for loan losses | | | | (72,719) | | | | (58,812) |
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| Net loans | | | | 4,510,843 | | | | 4,256,165 |
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| Loans held for sale | | | | 11,256 | | | | 19,410 |
| Investment securities: | | | | | | | | |
| Available for sale | | | | 5,058,667 | | | | 4,385,619 |
| Held to maturity | | | | 59,910 | | | | 46,881 |
| Trading securities | | | | 40,520 | | | | 46,487 |
| Federal Reserve Bank Stock and other | | | | 22,344 | | | | 23,609 |
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| Total investment securities | | | | 5,181,441 | | | | 4,502,596 |
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| Federal funds and resell agreements | | | | 22,399 | | | | 103,954 |
| Interest-bearing due from banks | | | | 658,347 | | | | 539,357 |
| Cash and due from banks | | | | 332,699 | | | | 288,422 |
| Bank premises and equipment, net | | | | 215,627 | | | | 217,491 |
| Accrued income | | | | 63,990 | | | | 64,804 |
| Goodwill | | | | 163,584 | | | | 125,739 |
| Other intangibles | | | | 69,723 | | | | 40,528 |
| Other assets | | | | 110,132 | | | | 77,030 |
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| Total assets | | $ | | 11,340,041 | | $ | | 10,235,496 |
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| Liabilities | | | | | | | | |
| Deposits: | | | | | | | | |
| Noninterest-bearing demand | | $ | | 2,778,728 | | $ | | 2,594,635 |
| Interest-bearing demand and savings | | | | 4,278,388 | | | | 3,657,651 |
| Time deposits under $100,000 | | | | 710,991 | | | | 781,196 |
| Time deposits of $100,000 or more | | | | 833,708 | | | | 856,707 |
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| Total deposits | | | | 8,601,815 | | | | 7,890,189 |
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| Federal funds and repurchase agreements | | | | 1,432,179 | | | | 1,146,676 |
| Short-term debt | | | | 27,847 | | | | 20,336 |
| Long-term debt | | | | 9,040 | | | | 32,358 |
| Accrued expenses and taxes | | | | 148,927 | | | | 119,659 |
| Other liabilities | | | | 30,053 | | | | 12,650 |
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| Total liabilities | | | | 10,249,861 | | | | 9,221,868 |
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| Shareholders' Equity | | | | | | | | |
| Common stock | | | | 55,057 | | | | 55,057 |
| Capital surplus | | | | 716,278 | | | | 711,373 |
| Retained earnings | | | | 612,265 | | | | 546,370 |
| Accumulated other comprehensive income | | | | 67,399 | | | | 56,324 |
| Treasury stock | | | | (360,819) | | | | (355,496) |
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| Total shareholders' equity | | | | 1,090,180 | | | | 1,013,628 |
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| Total liabilities and shareholders' equity | | $ | | 11,340,041 | | $ | | 10,235,496 |
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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 | | 2010 | | | | 2009 | | | | 2010 | | | | 2009 |
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| Loans | | $ 56,581 | | $ | | 54,478 | | $ | | 166,013 | | $ | | 160,813 |
| Securities: | | | | | | | | | | | | | | |
| Taxable interest | | 22,026 | | | | 25,455 | | | | 68,301 | | | | 80,395 |
| Tax-exempt interest | | 7,330 | | | | 7,554 | | | | 21,675 | | | | 21,742 |
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| Total securities income | | 29,356 | | | | 33,009 | | | | 89,976 | | | | 102,137 |
| Federal funds and resell agreements | | 29 | | | | 48 | | | | 137 | | | | 229 |
| Interest-bearing due from banks | | 749 | | | | 1,181 | | | | 3,099 | | | | 2,965 |
| Trading securities | | 176 | | | | 210 | | | | 500 | | | | 570 |
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| Total interest income | | 86,891 | | | | 88,926 | | | | 259,725 | | | | 266,714 |
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| Interest Expense | | | | | | | | | | | | | | |
| Deposits | | 7,900 | | | | 12,223 | | | | 25,985 | | | | 38,656 |
| Federal funds and repurchase agreements | | 525 | | | | 446 | | | | 1,473 | | | | 1,643 |
| Long-term debt | | 83 | | | | 361 | | | | 441 | | | | 1,138 |
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| Total interest expense | | 8,508 | | | | 13,030 | | | | 27,899 | | | | 41,437 |
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| Net interest income | | 78,383 | | | | 75,896 | | | | 231,826 | | | | 225,277 |
| Provision for loan losses | | 7,700 | | | | 8,300 | | | | 24,110 | | | | 20,600 |
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| Net interest income after provision for loan losses | | 70,683 | | | | 67,596 | | | | 207,716 | | | | 204,677 |
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| Noninterest Income | | | | | | | | | | | | | | |
| Trust and securities processing | | 39,843 | | | | 32,630 | | | | 114,029 | | | | 86,164 |
| Trading and investment banking | | 7,897 | | | | 6,787 | | | | 20,454 | | | | 20,625 |
| Service charges on deposits | | 19,431 | | | | 20,598 | | | | 60,114 | | | | 62,527 |
| Insurance fees and commissions | | 1,554 | | | | 1,255 | | | | 4,540 | | | | 3,710 |
| Brokerage fees | | 1,746 | | | | 1,629 | | | | 4,679 | | | | 5,493 |
| Bankcard fees | | 14,555 | | | | 11,671 | | | | 40,554 | | | | 33,760 |
| Gains on sale of securities available for sale, net | | 752 | | | | 3,306 | | | | 7,270 | | | | 5,198 |
| Other | | 4,306 | | | | 2,642 | | | | 13,950 | | | | 9,273 |
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| Total noninterest income | | 90,084 | | | | 80,518 | | | | 265,590 | | | | 226,750 |
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| Noninterest Expense | | | | | | | | | | | | | | |
| Salaries and employee benefits | | 69,044 | | | | 60,193 | | | | 194,849 | | | | 177,786 |
| Occupancy, net | | 9,162 | | | | 8,982 | | | | 27,007 | | | | 25,698 |
| Equipment | | 11,122 | | | | 11,187 | | | | 33,205 | | | | 36,181 |
| Supplies and services | | 4,822 | | | | 4,787 | | | | 14,209 | | | | 15,734 |
| Marketing and business development | | 4,426 | | | | 4,036 | | | | 12,561 | | | | 11,397 |
| Processing fees | | 11,570 | | | | 9,659 | | | | 33,812 | | | | 24,803 |
| Legal and consulting | | 4,108 | | | | 2,763 | | | | 8,500 | | | | 6,954 |
| Bankcard | | 4,292 | | | | 3,615 | | | | 11,842 | | | | 10,498 |
| Amortization of other intangibles | | 3,150 | | | | 1,847 | | | | 7,684 | | | | 4,318 |
| Regulatory fees | | 3,219 | | | | 3,036 | | | | 9,974 | | | | 12,672 |
| Other | | 5,720 | | | | 5,152 | | | | 20,470 | | | | 14,738 |
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| Total noninterest expense | | 130,635 | | | | 115,257 | | | | 374,113 | | | | 340,779 |
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| Income before income taxes | | 30,132 | | | | 32,857 | | | | 99,193 | | | | 90,648 |
| Income tax provision | | 7,359 | | | | 8,859 | | | | 27,223 | | | | 25,022 |
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| Net income | | $ 22,773 | | $ | | 23,998 | | $ | | 71,970 | | $ | | 65,626 |
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| Per Share Data | | | | | | | | | | | | | | |
| Net income - basic | | $ 0.57 | | $ | | 0.60 | | $ | | 1.80 | | $ | | 1.62 |
| Net income - diluted | | 0.57 | | | | 0.59 | | | | 1.78 | | | | 1.61 |
| Dividends | | 0.185 | | | | 0.175 | | | | 0.555 | | | | 0.525 |
| Weighted average shares outstanding | | 40,081,108 | | | | 40,240,293 | | | | 40,083,419 | | | | 40,402,992 |
| 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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| 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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| Balance - January 1, 2010 | | $ | | 55,057 | | $ | | 712,774 | | $ | | 562,748 | | $ | | 40,454 | | $ | | (355,482) | | $ | | 1,015,551 |
| Comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | - | | | | - | | | | 71,970 | | | | - | | | | - | | | | 71,970 |
| Change in unrealized gains on | | | | | | | | | | | | | | | | | | | | | | | | |
| securities | | | | - | | | | - | | | | - | | | | 26,945 | | | | - | | | | 26,945 |
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| Total comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | 98,915 |
| Cash dividends ($0.555 per share) | | | | - | | | | - | | | | (22,453) | | | | - | | | | - | | | | (22,453) |
| Purchase of treasury stock | | | | - | | | | - | | | | - | | | | - | | | | (7,554) | | | | (7,554) |
| Issuance of equity awards | | | | - | | | | (1,617) | | | | - | | | | - | | | | 1,742 | | | | 125 |
| Recognition of equity based | | | | | | | | | | | | | | | | | | | | | | | | |
| compensation | | | | - | | | | 4,398 | | | | - | | | | - | | | | - | | | | 4,398 |
| Net tax benefit related to equity | | | | | | | | | | | | | | | | | | | | | | | | |
| compensation plans | | | | - | | | | 155 | | | | - | | | | - | | | | - | | | | 155 |
| Sale of treasury stock | | | | - | | | | 333 | | | | - | | | | - | | | | 188 | | | | 521 |
| Exercise of stock options | | | | - | | | | 235 | | | | - | | | | - | | | | 287 | | | | 522 |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Balance – September 30, 2010 | | $ | | 55,057 | | $ | | 716,278 | | $ | | 612,265 | | $ | | 67,399 | | $ | | (360,819) | | $ | | 1,090,180 |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Average Balances / Yields and Rates | | | | | | | | UMB Financial Corporation | | | | |
| |
| |
| |
| |
| |
| |
|
| (tax - equivalent basis) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (unaudited, dollars in thousands) | | | | | | Three Months Ended September 30, | | | | |
| | | | | 2010 | | | | | | 2009 | | | | |
| |
| |
| |
| |
| |
| |
| |
|
| | | | | Average | | Average | | | | | | Average | | Average | | |
| Assets | | | | Balance | | Yield/Rate | | | | | | Balance | | Yield/Rate | | |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Loans, net of unearned interest | | $ | | 4,569,900 | | 4.92 | | % | | $ | | 4,354,961 | | 4.97 | | % |
| Securities: | | | | | | | | | | | | | | | | |
| Taxable | | | | 4,044,955 | | 2.16 | | | | | | 3,175,441 | | 3.18 | | |
| Tax-exempt | | | | 1,089,222 | | 4.14 | | | | | | 984,534 | | 4.73 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total securities | | | | 5,134,177 | | 2.58 | | | | | | 4,159,975 | | 3.55 | | |
| Federal funds and resell agreements | | | | 23,462 | | 0.49 | | | | | | 40,057 | | 0.48 | | |
| Interest-bearing due from banks | | | | 365,481 | | 0.81 | | | | | | 473,868 | | 0.99 | | |
| Trading securities | | | | 41,197 | | 1.79 | | | | | | 37,250 | | 2.47 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total earning assets | | | | 10,134,217 | | 3.56 | | | | | | 9,066,111 | | 4.08 | | |
| Allowance for loan losses | | | | (70,385) | | | | | | | | (57,957) | | | | |
| Other assets | | | | 938,083 | | | | | | | | 839,486 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| Total assets | | $ | | 11,001,915 | | | | | | $ | | 9,847,640 | | | | |
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| |
| | | | | |
| |
| | | | |
| |
| |
| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | | 5,574,615 | | 0.56 | | % | | $ | | 5,171,736 | | 0.94 | | % |
| Federal funds and repurchase agreements | | | | 1,459,219 | | 0.14 | | | | | | 1,184,647 | | 0.15 | | |
| Borrowed funds | | | | 36,635 | | 0.90 | | | | | | 50,285 | | 2.85 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total interest-bearing liabilities | | | | 7,070,469 | | 0.48 | | | | | | 6,406,668 | | 0.81 | | |
| Noninterest-bearing demand deposits | | | | 2,711,061 | | | | | | | | 2,297,832 | | | | |
| Other liabilities | | | | 133,474 | | | | | | | | 133,028 | | | | |
| Shareholders' equity | | | | 1,086,911 | | | | | | | | 1,010,112 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| Total liabilities and shareholders' equity | | $ | | 11,001,915 | | | | | | $ | | 9,847,640 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| Net interest spread | | | | | | 3.08 | | % | | | | | | 3.27 | | % |
| Net interest margin | | | | | | 3.23 | | | | | | | | 3.51 | | |
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| |
| | | | | | | Nine Months Ended September 30, | | | | |
| | | | | 2010 | | | | | | 2009 | | | | |
| |
| |
| |
| |
| |
| |
| |
|
| | | | | Average | | Average | | | | | | Average | | Average | | |
| Assets | | | | Balance | | Yield/Rate | | | | | | Balance | | Yield/Rate | | |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Loans, net of unearned interest | | $ | | 4,451,687 | | 4.99 | | % | | $ | | 4,400,316 | | 4.89 | | % |
| Securities: | | | | | | | | | | | | | | | | |
| Taxable | | | | 3,897,936 | | 2.34 | | | | | | 3,361,316 | | 3.20 | | |
| Tax-exempt | | | | 1,016,550 | | 4.42 | | | | | | 911,449 | | 4.96 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total securities | | | | 4,914,486 | | 2.77 | | | | | | 4,272,765 | | 3.57 | | |
| Federal funds and resell agreements | | | | 51,568 | | 0.36 | | | | | | 57,322 | | 0.53 | | |
| Interest-bearing due from banks | | | | 619,288 | | 0.67 | | | | | | 473,040 | | 0.84 | | |
| Trading securities | | | | 39,281 | | 1.83 | | | | | | 33,239 | | 2.56 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total earning assets | | | | 10,076,310 | | 3.61 | | | | | | 9,236,682 | | 4.04 | | |
| Allowance for loan losses | | | | (67,809) | | | | | | | | (55,651) | | | | |
| Other assets | | | | 946,802 | | | | | | | | 849,803 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| Total assets | | $ | | 10,955,303 | | | | | | $ | | 10,030,834 | | | | |
| |
| |
| | | | | |
| |
| | | | |
| |
| |
| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | | 5,583,440 | | 0.62 | | % | | $ | | 5,172,665 | | 1.00 | | % |
| Federal funds and repurchase agreements | | | | 1,398,633 | | 0.14 | | | | | | 1,364,476 | | 0.16 | | |
| Borrowed funds | | | | 43,463 | | 1.36 | | | | | | 52,502 | | 2.90 | | |
| | | |
| |
| | | | | |
| |
| | |
| Total interest-bearing liabilities | | | | 7,025,536 | | 0.53 | | | | | | 6,589,643 | | 0.84 | | |
| Noninterest-bearing demand deposits | | | | 2,743,050 | | | | | | | | 2,333,091 | | | | |
| Other liabilities | | | | 128,129 | | | | | | | | 108,397 | | | | |
| Shareholders' equity | | | | 1,058,588 | | | | | | | | 999,703 | | | | |
| | | |
| | | | | | | |
| | | | |
| Total liabilities and shareholders' equity | | $ 10,955,303 | | | | | | $ | | 10,030,834 | | | | |
| |
| | | | | |
| |
| | | | |
| Net interest spread | | | | 3.08 | | % | | | | | | 3.20 | | % |
| Net interest margin | | | | 3.24 | | | | | | | | 3.44 | | |
| THIRD QUARTER 2010 | | | | | | | | | | | | |
| FINANCIAL HIGHLIGHTS | | | | UMB Financial Corporation | | |
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| |
| |
|
| (unaudited, dollars in thousands, except share and per share data) | | | | | | | | | | |
| |
| Nine Months Ended September 30 | | | | 2010 | | | | | | 2009 | | |
| |
| |
| |
| |
| |
| |
|
| Net interest income | | $ | | 231,826 | | | | $ | | 225,277 | | |
| Provision for loan losses | | | | 24,110 | | | | | | 20,600 | | |
| Noninterest income | | | | 265,590 | | | | | | 226,750 | | |
| Noninterest expense | | | | 374,113 | | | | | | 340,779 | | |
| Income before income taxes | | | | 99,193 | | | | | | 90,648 | | |
| Net income | | | | 71,970 | | | | | | 65,626 | | |
| Net income per share - Basic | | | | 1.80 | | | | | | 1.62 | | |
| Net income per share - Diluted | | | | 1.78 | | | | | | 1.61 | | |
| Return on average assets | | | | 0.88 | | % | | | | 0.87 | | % |
| Return on average equity | | | | 9.09 | | % | | | | 8.78 | | % |
| |
| Three Months Ended September 30 | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Net interest income | | $ | | 78,383 | | | | $ | | 75,896 | | |
| Provision for loan losses | | | | 7,700 | | | | | | 8,300 | | |
| Noninterest income | | | | 90,084 | | | | | | 80,518 | | |
| Noninterest expense | | | | 130,635 | | | | | | 115,257 | | |
| Income before income taxes | | | | 30,132 | | | | | | 32,857 | | |
| Net income | | | | 22,773 | | | | | | 23,998 | | |
| Net income per share - Basic | | | | 0.57 | | | | | | 0.60 | | |
| Net income per share - Diluted | | | | 0.57 | | | | | | 0.59 | | |
| Return on average assets | | | | 0.82 | | % | | | | 0.97 | | % |
| Return on average equity | | | | 8.31 | | % | | | | 9.43 | | % |
| |
| At September 30 | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Assets | | $ | | 11,340,041 | | | | $ | | 10,235,496 | | |
| Loans, net of unearned interest | | | | 4,583,562 | | | | | | 4,314,977 | | |
| Securities | | | | 5,181,441 | | | | | | 4,502,596 | | |
| Deposits | | | | 8,601,815 | | | | | | 7,890,189 | | |
| Shareholders' equity | | | | 1,090,180 | | | | | | 1,013,628 | | |
| Book value per share | | | | 26.98 | | | | | | 25.08 | | |
| Market price per share | | | | 35.51 | | | | | | 40.44 | | |
| Equity to assets | | | | 9.61 | | % | | | | 9.90 | | % |
| Allowance for loan losses | | $ | | 72,719 | | | | $ | | 58,812 | | |
| As a % of loans | | | | 1.59 | | % | | | | 1.36 | | % |
| Nonaccrual and restructured loans | | $ | | 25,022 | | | | $ | | 22,392 | | |
| As a % of loans | | | | 0.55 | | % | | | | 0.52 | | % |
| Loans over 90 days past due | | $ | | 7,454 | | | | $ | | 5,624 | | |
| As a % of loans | | | | 0.16 | | % | | | | 0.13 | | % |
| Other real estate owned | | $ | | 5,714 | | | | $ | | 4,666 | | |
| Net loan charge-offs quarter-to-date | | $ | | 5,099 | | | | $ | | 4,596 | | |
| As a % of average loans | | | | 0.45 | | % | | | | 0.42 | | % |
| Net loan charge-offs year-to-date | | $ | | 15,530 | | | | $ | | 14,085 | | |
| As a % of average loans | | | | 0.47 | | % | | | | 0.43 | | % |
| |
| Common shares outstanding | | | | 40,410,612 | | | | | | 40,409,389 | | |
| |
| Average Balances | | | | | | | | | | | | |
| Nine Months Ended September 30 | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Assets | | $ | | 10,955,303 | | | | $ | | 10,030,834 | | |
| Loans, net of unearned interest | | | | 4,451,687 | | | | | | 4,400,316 | | |
| Securities | | | | 4,953,767 | | | | | | 4,272,765 | | |
| Deposits | | | | 8,326,490 | | | | | | 7,505,756 | | |
| Shareholders' equity | | | | 1,058,588 | | | | | | 999,703 | | |
| Selected Financial Data | | | | | | | | | | |
| of Affiliate Banks | | | | | | | | UMB Financial Corporation |
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| |
| |
|
| (unaudited, dollars in thousands) | | | | | | September 30, 2010 | | |
| | | | | | | Loans | | | | |
| | | | | | | Net of | | | | |
| | | Total | | | | Unearned | | Total | | Shareholders' |
| Missouri | | Assets | | | | Interest | | Deposits | | Equity |
| |
| |
| |
| |
| |
|
| UMB Bank, n.a. | | $ 9,495,895 | | $ | | 3,739,643 $ | | 7,301,792 $ | | 696,762 |
| |
| Colorado | | | | | | | | | | |
| |
| |
| |
| |
| |
|
| UMB Bank Colorado, n. a. | | 1,091,443 | | | | 543,117 | | 913,743 | | 142,953 |
| |
| Kansas | | | | | | | | | | |
| |
| |
| |
| |
| |
|
| UMB National Bank of America | | 623,573 | | | | 220,020 | | 421,622 | | 58,369 |
| |
| Arizona | | | | | | | | | | |
| |
| |
| |
| |
| |
|
| UMB Bank Arizona, n. a. | | 105,777 | | | | 90,529 | | 45,926 | | 11,307 |
| |
| Banking - Related Subsidiaries | | | | | | | | | | |
| |
| |
| |
| |
| |
|
| 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 Corporation | | | | | | | | | | |
| UMBRedevelopmentCorporation | | | | | | | | | | |
| UMB Realty Company, LLC | | | | | | | | | | |
| Grand Distribution Services, LLC | | | | | | | | | | |
| UMB Distribution Services, LLC | | | | | | | | | | |
| J. D. Clark & Co., Inc. | | | | | | | | | | |
| UMB Bank & Trust, National Association | | | | | | | | | | |
| Scout Distributors, LLC | | | | | | | | | | |
| Scout Investment Advisors, Inc. | | | | | | | | | | |
| Prairie Capital Management, LLC | | | | | | | | | | |
| UMB Merchant Banc, LLC | | | | | | | | | | |
