Document and Entity Information
Document and Entity Information | ||
3 Months Ended
Mar. 31, 2010 | Apr. 30, 2010
| |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | 2010-03-31 | |
Document Fiscal Year Focus | 2,010 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | UMBF | |
Entity Registrant Name | UMB FINANCIAL CORP | |
Entity Central Index Key | 0000101382 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 40,464,984 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Thousands | Mar. 31, 2010
| Dec. 31, 2009
|
ASSETS | ||
Loans: | $4,301,965 | $4,314,705 |
Allowance for loan losses | (67,442) | (64,139) |
Net loans | 4,234,523 | 4,250,566 |
Loans held for sale | 17,706 | 17,523 |
Investment Securities: | ||
Available for sale | 4,740,505 | 4,885,788 |
Held to maturity (market value of $57,570 and $58,366, respectively) | 55,968 | 56,986 |
Federal Reserve Bank stock and other | 22,432 | 22,732 |
Trading securities | 34,858 | 38,214 |
Total investment securities | 4,853,763 | 5,003,720 |
Federal funds sold and securities purchased under agreements to resell | 21,177 | 329,765 |
Interest-bearing due from banks | 724,437 | 1,057,195 |
Cash and due from banks | 319,966 | 458,093 |
Bank premises and equipment, net | 213,330 | 217,642 |
Accrued income | 61,515 | 64,949 |
Goodwill | 131,356 | 131,356 |
Other intangibles | 46,635 | 47,462 |
Other assets | 99,648 | 85,084 |
Total assets | 10,724,056 | 11,663,355 |
Deposits: | ||
Noninterest-bearing demand | 2,716,510 | 2,775,222 |
Interest-bearing demand and savings | 3,904,509 | 3,904,268 |
Time deposits under $100,000 | 738,260 | 772,040 |
Time deposits of $100,000 or more | 861,230 | 1,082,958 |
Total deposits | 8,220,509 | 8,534,488 |
Federal funds purchased and repurchase agreements | 1,311,296 | 1,927,607 |
Short-term debt | 21,874 | 29,514 |
Long-term debt | 24,212 | 25,458 |
Accrued expenses and taxes | 103,549 | 107,896 |
Other liabilities | 13,165 | 22,841 |
Total liabilities | 9,694,605 | 10,647,804 |
SHAREHOLDERS' EQUITY | ||
Common stock, $1.00 par value; 80,000,000 shares authorized, 55,056,730 shares issued, and 40,488,195 and 40,439,607 shares outstanding, respectively | 55,057 | 55,057 |
Capital surplus | 713,062 | 712,774 |
Retained earnings | 581,443 | 562,748 |
Accumulated other comprehensive income | 36,631 | 40,454 |
Treasury stock, 14,568,535 and 14,617,123 shares, at cost, respectively | (356,742) | (355,482) |
Total shareholders' equity | 1,029,451 | 1,015,551 |
Total liabilities and shareholders' equity | $10,724,056 | $11,663,355 |
1_CONDENSED CONSOLIDATED BALANC
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | ||
In Thousands, except Share data | Mar. 31, 2010
| Dec. 31, 2009
|
Held to maturity, market value | $57,570 | $58,366 |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 55,056,730 | 55,056,730 |
Common stock, shares outstanding | 40,488,195 | 40,439,607 |
Treasury stock, shares | 14,568,535 | 14,617,123 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | ||
In Thousands, except Share data | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
INTEREST INCOME | ||
Loans | $53,483 | $52,800 |
Securities: | ||
Taxable interest | 23,779 | 29,122 |
Tax-exempt interest | 7,317 | 7,020 |
Total securities income | 31,096 | 36,142 |
Federal funds and resell agreements | 61 | 130 |
Interest-bearing due from banks | 1,319 | 842 |
Trading securities | 142 | 168 |
Total interest income | 86,101 | 90,082 |
INTEREST EXPENSE | ||
Deposits | 9,624 | 13,823 |
Federal funds and repurchase agreements | 444 | 660 |
Long-term debt | 259 | 390 |
Total interest expense | 10,327 | 14,873 |
Net interest income | 75,774 | 75,209 |
Provision for loan losses | 8,310 | 6,000 |
Net interest income after provision for loan losses | 67,464 | 69,209 |
NONINTEREST INCOME | ||
Trust and securities processing | 35,572 | 24,899 |
Trading and investment banking | 7,027 | 4,861 |
Service charges on deposits | 20,519 | 20,795 |
Insurance fees and commissions | 1,699 | 1,570 |
Brokerage fees | 1,336 | 2,352 |
Bankcard fees | 12,020 | 10,947 |
Gain on sales of securities available for sale, net | 5,382 | 42 |
Other | 2,875 | 3,443 |
Total noninterest income | 86,430 | 68,909 |
NONINTEREST EXPENSE | ||
Salaries and employee benefits | 62,253 | 57,996 |
Occupancy, net | 8,921 | 8,144 |
Equipment | 10,870 | 12,996 |
Supplies and services | 4,707 | 5,377 |
Marketing and business development | 3,705 | 3,191 |
Processing fees | 11,029 | 7,004 |
Legal and consulting | 1,622 | 1,548 |
Bankcard | 3,190 | 3,957 |
Amortization of other intangible assets | 2,091 | 976 |
Regulatory Fees | 3,238 | 1,727 |
Other | 5,752 | 3,728 |
Total noninterest expense | 117,378 | 106,644 |
Income before income taxes | 36,516 | 31,474 |
Income tax provision | 10,331 | 8,873 |
NET INCOME | $26,185 | $22,601 |
PER SHARE DATA | ||
Net income - basic | 0.65 | 0.56 |
Net income - diluted | 0.65 | 0.55 |
Dividends | 0.185 | 0.175 |
Weighted average shares outstanding | 40,089,527 | 40,598,097 |
2_CONDENSED CONSOLIDATED STATEM
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | ||||||
In Thousands | Common Stock
| Capital Surplus
| Retained Earnings
| Accumulated Other Comprehensive Income
| Treasury Stock
| Total
|
Beginning Balance at Dec. 31, 2008 | $55,057 | $707,812 | $502,073 | $41,105 | ($331,236) | $974,811 |
Comprehensive income | ||||||
Net Income | 22,601 | 22,601 | ||||
Change in unrealized gains on securities | 5,370 | 5,370 | ||||
Total comprehensive income | 27,971 | |||||
Cash dividends ($0.185 per share in 2010 and $0.175 per share in 2009) | (7,188) | (7,188) | ||||
Purchase of treasury stock | (12,443) | (12,443) | ||||
Issuance of equity awards | (1,261) | 1,393 | 132 | |||
Recognition of equity based compensation | 1,202 | 1,202 | ||||
Net tax benefit related to equity compensation plans | 58 | 58 | ||||
Sale of treasury stock | 114 | 54 | 168 | |||
Exercise of stock options | 119 | 154 | 273 | |||
Ending Balance at Mar. 31, 2009 | 55,057 | 708,044 | 517,486 | 46,475 | (342,078) | 984,984 |
Beginning Balance at Dec. 31, 2009 | 55,057 | 712,774 | 562,748 | 40,454 | (355,482) | 1,015,551 |
Comprehensive income | ||||||
Net Income | 26,185 | 26,185 | ||||
Change in unrealized gains on securities | (3,823) | (3,823) | ||||
Total comprehensive income | 22,362 | |||||
Cash dividends ($0.185 per share in 2010 and $0.175 per share in 2009) | (7,490) | (7,490) | ||||
Purchase of treasury stock | (2,961) | (2,961) | ||||
Issuance of equity awards | (1,374) | 1,498 | 124 | |||
Recognition of equity based compensation | 1,410 | 1,410 | ||||
Net tax benefit related to equity compensation plans | 48 | 48 | ||||
Sale of treasury stock | 113 | 63 | 176 | |||
Exercise of stock options | 91 | 140 | 231 | |||
Ending Balance at Mar. 31, 2010 | $55,057 | $713,062 | $581,443 | $36,631 | ($356,742) | $1,029,451 |
3_CONDENSED CONSOLIDATED STATEM
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | ||
3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 | |
Cash dividends, per share | 0.185 | 0.175 |
4_CONDENSED CONSOLIDATED STATEM
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | ||
In Thousands | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
Operating Activities | ||
Net Income | $26,185 | $22,601 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 8,310 | 6,000 |
Depreciation and amortization | 9,170 | 9,561 |
Deferred income tax benefit | (3,087) | (2,532) |
Net decrease in trading securities | 3,356 | 1,970 |
Gains on sale of securities available for sale | (5,382) | (42) |
Losses on sale of assets | 92 | 1 |
Amortization of securities premiums, net of discount accretion | 7,299 | 3,963 |
Originations of loans held for sale | (26,577) | (67,157) |
Net gains on sales of loans held for sale | (170) | (389) |
Proceeds from sales of loans held for sale | 26,564 | 54,633 |
Issuance of equity awards | 124 | 132 |
Equity based compensation | 1,410 | 1,202 |
Changes in: | ||
Accrued income | 3,434 | 2,730 |
Accrued expenses and taxes | 640 | (1,947) |
Other assets and liabilities, net | (5,423) | 6,263 |
Net cash provided by operating activities | 45,945 | 36,989 |
Investing Activities | ||
Proceeds from maturities of securities held to maturity | 2,626 | 1,229 |
Proceeds from sales of securities available for sale | 360,020 | 98 |
Proceeds from maturities of securities available for sale | 624,202 | 1,194,813 |
Purchases of securities held to maturity | (1,678) | (1,468) |
Purchases of securities available for sale | (865,300) | (436,286) |
Net decrease in loans | 19,334 | 76,740 |
Net decrease in fed funds sold and resell agreements | 308,588 | 183,258 |
Net increase in interest-bearing balances due from other financial institutions | (18,458) | (10,391) |
Purchases of bank premises and equipment | (3,096) | (3,581) |
Net cash paid for acquisitions | (12,386) | |
Proceeds from sales of bank premises and equipment | 169 | 163 |
Net cash provided by investing activities | 414,021 | 1,004,575 |
Financing Activities | ||
Net decrease in demand and savings deposits | (58,621) | (45,008) |
Net decrease in time deposits | (255,508) | (3,505) |
Net decrease in fed funds purchased and repurchase agreements | (616,311) | (713,114) |
Net (decrease) increase in short-term debt | (7,640) | 11,354 |
Repayment of long-term debt | (1,246) | (1,166) |
Cash dividends paid | (7,477) | (7,178) |
Net tax benefit related to equity compensation plans | 48 | 58 |
Proceeds from exercise of stock options and sales of treasury shares | 407 | 441 |
Purchases of treasury stock | (2,961) | (12,443) |
Net cash used in financing activities | (949,309) | (770,561) |
(Decrease) increase in cash and due from banks | (489,343) | 271,003 |
Cash and due from banks at beginning of period | 1,229,645 | 887,559 |
Cash and due from banks at end of period | 740,302 | 1,158,562 |
Supplemental Disclosures: | ||
Income taxes paid | 783 | 208 |
Total interest paid | $13,255 | $16,269 |
Financial Statement Presentatio
Financial Statement Presentation | |
3 Months Ended
Mar. 31, 2010 | |
Financial Statement Presentation | 1. Financial Statement Presentation The condensed consolidated financial statements include the accounts of UMB Financial Corporation and its subsidiaries (collectively, the Company) after elimination of all significant intercompany transactions. In the opinion of management of the Company, all adjustments, which were of a normal recurring nature and necessary for a fair presentation of the financial position and results of operations, have been made. The results of operations and cash flows for the interim periods presented may not be indicative of the results of the full year. The financial statements should be read in conjunction with Managements Discussion and Analysis of Financial Condition and Results of Operations and in conjunction with the Companys Annual Report on Form 10-K for the fiscal year ended December31, 2009. |
Summary of Accounting Policies
Summary of Accounting Policies | |
3 Months Ended
Mar. 31, 2010 | |
Summary of Accounting Policies | 2. Summary of Accounting Policies The Company is a multi-bank financial holding company, which offers a wide range of banking and other financial services to its customers through its branches and offices in the states of Missouri, Kansas, Colorado, Illinois, Oklahoma, Arizona, Nebraska, Pennsylvania, South Dakota, Indiana, and Wisconsin. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions also impact reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A summary of the significant accounting policies to assist the reader in understanding the financial presentation is listed in the Notes to Consolidated Financial Statements in the Companys Annual Report on Form 10-K for the fiscal year ended December31, 2009. Interest-bearing Due From Banks Amounts due from the Federal Reserve Bank which are interest-bearing for all periods presented, and amounts due from certificates of deposits held at other financial institutions are included in interest-bearing due from banks. The amount due from the Federal Reserve Bank totaled $420.3 million and $806.8 million at March31, 2010 and March31, 2009, respectively, and is considered cash and cash equivalents. The amounts due from certificates of deposit totaled $304.1 million and $121.5 million at March31, 2010 and March31, 2009, respectively. This table provides a summary of cash and due from banks as presented on the Consolidated Statement of Cash Flows as of March31, 2010 and March31, 2009 (in thousands): March31, 2010 2009 Due from the Federal Reserve $ 420,336 $ 806,840 Cash and due from banks 319,966 351,722 Cash and due from banks at end of period $ 740,302 $ 1,158,562 Per Share Data Basic income per share is computed based on the weighted average number of shares of common stock outstanding during each period. Diluted income per share includes the dilutive effect of 285,268 and 282,226 shares issuable upon the exercise of stock options granted by the Company at March31, 2010 and 2009, respectively. Options issued under employee benefit plans to purchase 1,119,068 and 971,191 shares of common stock were outstanding at March31, 2010 and 2009, respectively, but were not included in the computation of diluted EPS because the options were anti-dilutive. |
New Accounting Pronouncements
New Accounting Pronouncements | |
3 Months Ended
Mar. 31, 2010 | |
New Accounting Pronouncements | 3. New Accounting Pronouncements Accounting for Transfers of Financial Assets- an amendment of FASB Statement No.140 In June 2009, the Financial Accounting Standards Board (FASB) issued SFAS No.166 Accounting for Transfers of Financial Assets-an amendment of FASB Statement No.140 or Accounting Standards Codification (ASC) 860. The objective of this Statement is to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferors continuing involvement, if any, in transferred financial assets. This Statement removes the concept of a qualifying special-purpose entity from SFAS No.140 and removes the exception from applying FASB Interpretation No.46 to qualifying special-purpose entities. The Company adopted this statement on January1, 2010 without a material impact on its financial position or results of operations. Amendments to FASB Interpretation No.46(R) In June 2009, the FASB issued SFAS No.167, Amendments to FASB Interpretation No.46(R) or ASC 810, which amends the consolidation guidance applicable to variable interest entities. The amendments to the consolidation guidance affect all entities currently within the scope of FIN 46(R), as well as qualifying special-purpose entities that are currently excluded from the scope of FIN 46(R). The Company adopted this statement on January1, 2010 without a material impact on its financial position or results of operations. Fair Value Measurements and Disclosures In January2010, the FASB issued Accounting Standards Update (ASU) No.2010-06, Fair Value Measurements and Disclosures (ASU 2010-06), which amends ASC 820, adding new requirements for disclosures for Levels 1 and 2, separate disclosures of purchases, sales, issuances, and settlements relating to Level 3 measurements and clarification of existing fair value disclosures.ASU 2010-06 is effective for interim and annual periods beginning after December15, 2009, except for the requirement to provide Level 3 activity of purchases, sales, issuances, and settlements on a gross basis, which will be effective for fiscal years beginning after December15, 2010.The Company adopted this statement on January1, 2010 without a material impact on its financial position or results of operations. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | |
3 Months Ended
Mar. 31, 2010 | |
Loans and Allowance for Loan Losses | 4. Loans and Allowance for Loan Losses This table provides a summary of the major categories of loans as of March31, 2010 and December31, 2009 (in thousands): March 31, 2010 December31, 2009 Commercial, financial, and agricultural $ 1,943,520 $ 1,963,533 Real estate construction 98,884 106,914 Consumer 412,607 441,406 Real estate 1,839,418 1,795,342 Leases 7,536 7,510 Total loans 4,301,965 4,314,705 Loans held for sale 17,706 17,523 Total loans and loans held for sale $ 4,319,671 $ 4,332,228 This table is an analysis of the allowance for loan losses for the three months ended March31, 2010 and 2009 (in thousands): ThreeMonthsEndedMarch31, 2010 2009 Beginning allowance - January 1 $ 64,139 $ 52,297 Additions (deductions): Charge-offs (6,007 ) (5,970 ) Recoveries 1,000 1,678 Net charge-offs (5,007 ) (4,292 ) Provision charged to expense 8,310 6,000 Ending allowance - March 31 $ 67,442 $ 54,005 Impaired loans Impaired loans are measured based on the present value of expected future cash flows discounted at the loans effective interest rate, at the loans observable market price, or at the fair value of the collateral securing the loan. The summary below provides an analysis of impaired loans as of and for the three months ended March31, 2010 and twelve months ended December31, 2009 (in thousands): March 31, 2010 December31, 2009 Total impaired loans as of March31 and December31 $ 23,449 $ 20,880 Amount of impaired loans which have a related allowance 17,186 14,290 Amount of related allowance 7,736 3,813 Remaining impaired loans with no allowance 6,263 6,590 Average recorded investment in impaired loans during the period 22,165 14,974 |
Securities
Securities | |
3 Months Ended
Mar. 31, 2010 | |
Securities | 5. Securities Securities Available for Sale This table provides detailed information about securities available for sale at March31, 2010 and December31, 2009 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March31, 2010 U.S. Treasury $ 805,784 $ 3,375 $ (402 ) $ 808,757 U.S. Agencies 1,526,156 8,711 (926 ) 1,533,941 Mortgage-backed 1,419,839 27,333 (1,821 ) 1,445,351 State and political subdivisions 930,966 22,284 (794 ) 952,456 Total $ 4,682,745 $ 61,703 $ (3,943 ) $ 4,740,505 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December31, 2009 U.S. Treasury $ 596,067 $ 3,549 $ (539 ) $ 599,077 U.S. Agencies 1,479,784 10,426 (1,450 ) 1,488,760 Mortgage-backed 1,786,899 33,038 (6,279 ) 1,813,658 State and political subdivisions 958,231 26,530 (468 ) 984,293 Total $ 4,820,981 $ 73,543 $ (8,736 ) $ 4,885,788 The following table presents contractual maturity information for securities available for sale at March31, 2010 (in thousands): Amortized Cost Fair Value Due in 1 year or less $ 869,510 $ 874,518 Due after 1 year through 5 years 2,189,684 2,213,263 Due after 5 years through 10 years 193,688 197,240 Due after 10 years 10,024 10,133 Total 3,262,906 3,295,154 Mortgage-backed securities 1,419,839 1,445,351 Total securities available for sale $ 4,682,745 $ 4,740,505 Securities may be disposed of before contractual maturities due to sales by the Company or because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. For the three months ended March31, 2010, proceeds from the sales of securities available for sale were $360,020,000 compared to $98,000 for the same period in 2009. Securities transactions resulted in gross realized gains of $5,610,000 and $42,000 for the three months ended March31, 2010 and 2009. The gross realized losses for the three months ended March31, 2010 and 2009 were $228,000 and $0, respectively. Trading Securities The net unrealized gains on trading securities at March31, 2010 and March31, 2009 were $283,488 and $173,860, respectively, and were included in trading and investment banking income. Securities Held to Maturity The table below provides detailed information for securities held to maturity at March31, 2010 and December31, 2009 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March31, 2010 State and political subdivisions $ 55,968 $ 1,602 $ $ 57,570 December31, 2009 State and political subdivi |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | |
3 Months Ended
Mar. 31, 2010 | |
Goodwill and Other Intangibles | 6. Goodwill and Other Intangibles Changes in the carrying amount of goodwill for the periods ended March31, 2010 and December31, 2009 by operating segment are as follows (in thousands): Commercial Financial Services Institutional Financial Services Personal Financial Services Total Balances as of January1, 2009 $ 42,999 $ 25,988 $ 35,937 $ 104,924 Acquisition of J.D. Clark Co., Inc. 19,476 19,476 Other goodwill acquired during period 5,875 1,355 7,230 Other (154 ) (120 ) (274 ) Balances as of December31,2009 $ 42,845 $ 51,339 $ 37,172 $ 131,356 Balances as of January1, 2010 $ 42,845 $ 51,339 $ 37,172 $ 131,356 Balances as of March31, 2010 $ 42,845 $ 51,339 $ 37,172 $ 131,356 Following are the intangible assets that continue to be subject to amortization as of March31, 2010 and December31, 2009 (in thousands): As of March31, 2010 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Core deposit intangible assets $ 36,497 $ 25,035 $ 11,462 Other intangible assets 44,680 10,752 33,928 Other intangible assets acquired during period 1,264 19 1,245 Total other intangible assets 45,944 10,771 35,173 Total intangible assets $ 82,441 $ 35,806 $ 46,635 As of December 31, 2009 Core deposit intangible assets $ 36,497 $ 24,444 $ 12,053 Other intangible assets 9,151 6,812 2,315 Other intangible assets acquired from the acquisition of J.D. Clark 24,831 2,278 22,553 Other intangible assets acquired during period 10,699 182 10,541 Total other intangible assets 44,681 9,272 35,409 Total intangible assets $ 81,178 $ 33,716 $ 47,462 Following is the aggregate amortization expense recognized in each period (in thousands): ThreeMonthsEnded March31, 2010 2009 Aggregate amortization expense $ 2,091 $ 976 Estimated amortization expense of intangible assets on future years (in thousands): For the nine months ended December31, 2010 $ 6,100 For the year ended December31, 2011 7,248 For the year ended December31, 2012 6,132 For the year ended December31, 2013 5,177 For the year ended December31, 2014 4,563 |
Other Comprehensive Income
Other Comprehensive Income | |
3 Months Ended
Mar. 31, 2010 | |
Other Comprehensive Income | 7. Other Comprehensive Income The Companys only component of other comprehensive income for the three months ended March31, 2010 and 2009 was the net unrealized gains and losses on available for sale securities (in thousands): ThreeMonthsEndedMarch31, 2010 2009 Change in unrealized holding gains, net $ (670 ) $ 8,568 Less: Reclassification adjustments for gains included in income (5,382 ) (42 ) Net unrealized holding (losses) gains (6,052 ) 8,526 Income tax benefit (expense) 2,229 (3,156 ) Other comprehensive income $ (3,823 ) $ 5,370 |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | |
3 Months Ended
Mar. 31, 2010 | |
Commitments, Contingencies and Guarantees | 8. Commitments, Contingencies and Guarantees In the normal course of business, the Company is party to financial instruments with off-balance-sheet risk in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, commercial letters of credit, standby letters of credit, futures contracts, forward foreign exchange contracts and spot foreign exchange contracts. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheet. The contract or notional amount of those instruments reflects the extent of involvement the Company has in particular classes of financial instruments. Many of the commitments expire without being drawn upon, therefore, the total amount of these commitments does not necessarily represent the future cash requirements of the Company. The Companys exposure to credit loss in the event of nonperformance by the counterparty to the financial instruments for commitments to extend credit, commercial letters of credit, and standby letters of credit is represented by the contract or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The following table summarizes the Companys off-balance sheet financial instruments. Contract or Notional Amount (in thousands): March 31, 2010 December31, 2009 Commitments to extend credit for loans (excluding credit card loans) $ 1,764,927 $ 1,868,869 Commitments to extend credit under credit card loans 1,357,374 1,320,416 Commercial letters of credit 3,673 3,538 Standby letters of credit 306,918 308,866 Futures contracts 13,000 13,300 Forward foreign exchange contracts 60,080 69,342 Spot foreign exchange contracts 5,599 5,513 In the normal course of business, the Company and its subsidiaries are named defendants in various lawsuits and counter-claims. In the opinion of management, after consultation with legal counsel, none of these lawsuits are expected to have a materially adverse effect on the financial position, results of operations or cash flows of the Company. |
Business Segment Reporting
Business Segment Reporting | |
3 Months Ended
Mar. 31, 2010 | |
Business Segment Reporting | 9. Business Segment Reporting The Company has strategically aligned its operations into the following three reportable segments (collectively, Business Segments): Commercial Financial Services, Institutional Financial Services, and Personal Financial Services. The Business Segments were redefined during the first quarter of 2010 to better organize the Companys business around customer needs. In 2009, the Business Segments were Commercial Banking and Lending, Payment and Technology Solutions, Banking Services, Consumer Services, Asset Management, and Fund Services. Business segment financial results produced by the Companys internal management accounting system are evaluated regularly by the Executive Committee in deciding how to allocate resources and assess performance for individual Business Segments. The management accounting system assigns balance sheet and income statement items to each business segment using methodologies that are refined on an ongoing basis. For comparability purposes, amounts in all periods are based on methodologies in effect at March31, 2010. The following summaries provide information about the activities of each segment: Commercial Financial Services resulted in combining Commercial Banking and Lending with Treasury Management (previously a component of Payment and Technology Solutions). Commercial Financial Services serves the commercial lending and leasing, capital markets, and treasury management needs of the Companys mid-market businesses and governmental entities by offering various products and services. Such services include commercial loans, letters of credit, loan syndication services, consultative services, and a variety of financial options for companies that need non-traditional banking services. Capital markets services include asset-based financing, asset securitization, equity and mezzanine financing, factoring, private and public placement of senior debt, as well as merger and acquisition consulting. Treasury management services include depository services, account reconciliation services, electronic fund transfer services, controlled disbursements, lockbox services, and remote deposit capture services. Institutional Financial Services is a combination of Banking Services, Fund Services, and Asset Management services provided to institutional clients. This segment also includes consumer credit card services, formerly included in Consumer Services, and commercial credit card, formerly included in Payment and Technology Solutions. Healthcare services, mutual fund cash management and international payments, previously included in Payment and Technology Solutions, are also included in this segment. Institutional Financial Services includes businesses such as the Companys institutional investment services functions, Scout Investment Advisors, UMB Fund Services, corporate trust and escrow services as well as correspondent banking, investment banking, and UMB Healthcare Services. Products and services include bond trading transactions, cash letter collections, FiServ account processing, investment portfolio accounting and safekeeping, reporting for asset/liability management, and Fed funds tr |
Fair Value Measurements
Fair Value Measurements | |
3 Months Ended
Mar. 31, 2010 | |
Fair Value Measurements | 10. Fair Value Measurements The following table presents information about the Companys assets measured at fair value on a recurring basis as of March31, 2010, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair values determined by Level 1 inputs utilize quoted prices in active markets for identical assets and liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the hierarchy. In such cases, the fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Assets measured at fair value on a recurring basis as of March31, 2010 (in thousands): Fair Value Measurement at Reporting Date Using Description March31,2010 QuotedPricesin Active Markets for Identical Assets (Level 1) SignificantOther ObservableInputs (Level 2) Significant Unobservable Inputs(Level3) U.S. Treasury 400 400 U.S. Agencies 13,374 13,374 Mortgage-backed 1,227 1,227 State and political subdivisions 6,580 6,580 Trading - other 13,277 13,277 Trading securities 34,858 27,051 7,807 U.S. Treasury 808,757 808,757 U.S. Agencies 1,533,941 1,533,941 Mortgage-backed 1,445,351 1,445,351 State and political subdivisions 952,456 952,456 Available for sale securities 4,740,505 2,342,698 2,397,807 Total 4,775,363 2,369,764 2,405,599 The fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis is required to be disclosed. The following methods and assumptions were used to estimate the fair value of each class of financial instruments: Cash and Short-Term Investments The carrying amounts of cash and due from banks, federal funds sold and resell agreements are reasonable estimates of their fair values. Securities Available for Sale Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Trading Securities Fair values for trading securities (including financial futures), are based on quoted market prices wh |