Exhibit 99.1
UMB Financial Corporation News Release
1010 Grand Boulevard
Kansas City, MO 64106
816.860.7000
umb.com
//FOR IMMEDIATE RELEASE//
Media Contact: Stephanie Hague: 816.860.5088
Investor Relations Contact: Kay Gregory: 816.860.7106
UMB Financial Corporation Reports Record Earnings of $243.6 Million
for the Full-Year 2019
2019 Financial Highlights (all comparisons to the prior year)
• Average loan balances increased $1.2 billion, or 10.0 percent; annual gross loan production of $3.6 billion increased 39.1 percent
• Average deposits grew 13.7 percent to $19.3 billion
• Noninterest income increased 6.2 percent, and comprised 38.9 percent of revenue
• Credit quality remained strong, with net charge-offs of just 0.27 percent of average loans, consistent with the company’s historical performance
KANSAS CITY, Mo. (January 28, 2020) – UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced income from continuing operations for the fourth quarter of 2019 of $66.5 million, or $1.35 per diluted share, compared to $62.4 million, or $1.27 per diluted share, in the third quarter of 2019 (linked quarter) and $25.5 million, or $0.52 per diluted share, in the fourth quarter of 2018. The results for 2018 included increased provision expense related to the charge-off of a single $48.1 million factoring credit. The reported GAAP income from continuing operations represents an increase of 6.6 percent on a linked-quarter basis and an increase of 161.3 percent compared to the fourth quarter of 2018. For the year ended December 31, 2019, income from continuing operations was $243.6 million, or $4.96 per diluted share, which is an increase of 24.1 percent compared to $196.3 million, or $3.94 per diluted share, for the year ended December 31, 2018.
“We capped off another strong year of financial performance, reporting record earnings in 2019. I am particularly pleased with our fourth quarter 2019 results, with income from continuing operations of $66.5 million, an increase of 6.6 percent compared to the third quarter,” said Mariner Kemper, chairman, president and chief executive officer. “Highlights for the quarter include strong balance sheet growth, with average loan balances increasing 2.6 percent compared to the third quarter, and 10.6 percent compared to the fourth quarter 2018. This growth, together with strong fee income, resulted in total revenue increases of 4.0 percent on a linked-quarter basis and 10.1 percent compared to fourth quarter 2018 levels. Expenses were elevated in the fourth quarter, driven largely by incentives tied to business and revenue growth, as well as overall company performance. For the full year 2019, we earned $243.6 million, or $4.96 per diluted share. We saw continued momentum in noninterest income, including a 50.6 percent increase in trading and investment banking income, along with solid performance in corporate trust and many of our other businesses.”
|
Summary of quarterly financial results |
|
UMB Financial Corporation |
|
|||||||||
|
(unaudited, dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 |
|
|
Q3 |
|
|
Q4 |
|
|||
|
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|||
|
Income from continuing operations |
|
$ |
66,515 |
|
|
$ |
62,382 |
|
|
$ |
25,454 |
|
|
Loss from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Net income |
|
|
66,515 |
|
|
|
62,382 |
|
|
|
25,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing operations (diluted) |
|
|
1.35 |
|
|
|
1.27 |
|
|
|
0.52 |
|
|
Losses per share from discontinued operations (diluted) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Earnings per share (diluted) |
|
|
1.35 |
|
|
|
1.27 |
|
|
|
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income from continuing operations |
|
|
67,038 |
|
|
|
62,525 |
|
|
|
27,578 |
|
|
Operating earnings per share from continuing operations (diluted) |
|
|
1.36 |
|
|
|
1.27 |
|
|
0.56 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
GAAP - continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
1.05 |
% |
|
|
1.03 |
% |
|
|
0.46 |
% |
|
Return on average equity |
|
|
10.15 |
|
|
|
9.69 |
|
|
|
4.57 |
|
|
Efficiency ratio |
|
|
71.59 |
|
|
|
70.70 |
|
|
|
71.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP - continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return on average assets |
|
|
1.06 |
% |
|
|
1.04 |
% |
|
|
0.50 |
% |
|
Operating return on average equity |
|
|
10.23 |
|
|
|
9.72 |
|
|
|
4.95 |
|
|
Operating efficiency ratio |
|
|
71.35 |
|
|
|
70.63 |
|
|
|
70.19 |
|
|
Summary of year-to-date financial results |
|
UMB Financial Corporation |
|
|||||
|
(unaudited, dollars in thousands, except per share data) |
|
December |
|
|
December |
|
||
|
|
|
YTD |
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|
YTD |
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||
|
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|
2019 |
|
|
2018 |
|
||
|
Income from continuing operations |
|
$ |
243,600 |
|
|
$ |
196,260 |
|
|
Loss from discontinued operations |
|
|
— |
|
|
|
(747 |
) |
|
Net income |
|
|
243,600 |
|
|
|
195,513 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing operations (diluted) |
|
|
4.96 |
|
|
|
3.94 |
|
|
Losses per share from discontinued operations (diluted) |
|
|
— |
|
|
|
(0.01 |
) |
|
Earnings per share (diluted) |
|
|
4.96 |
|
|
|
3.93 |
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income from continuing operations |
|
|
245,016 |
|
|
|
200,743 |
|
|
Operating earnings per share from continuing operations (diluted) |
|
|
4.99 |
|
|
|
4.03 |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP - continuing operations |
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
1.02 |
% |
|
|
0.93 |
% |
|
Return on average equity |
|
|
9.94 |
|
|
|
8.94 |
|
|
Efficiency ratio |
|
|
70.66 |
|
|
|
70.39 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP - continuing operations |
|
|
|
|
|
|
|
|
|
Operating return on average assets |
|
|
1.03 |
% |
|
|
0.96 |
% |
|
Operating return on average equity |
|
|
9.99 |
|
|
|
9.15 |
|
|
Operating efficiency ratio |
|
|
70.49 |
|
|
|
69.82 |
|
Discussion of results from continuing operations
|
Summary of revenue |
|
UMB Financial Corporation |
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|
(unaudited, dollars in thousands) |
|
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|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 |
|
|
Q3 |
|
|
Q4 |
|
|
CQ vs. |
|
|
CQ vs. |
|
|||||
|
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
LQ |
|
|
PY |
|
|||||
|
Net interest income |
|
$ |
172,363 |
|
|
$ |
168,260 |
|
|
$ |
161,808 |
|
|
$ |
4,103 |
|
|
$ |
10,555 |
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and securities processing |
|
|
46,835 |
|
|
|
45,218 |
|
|
|
41,891 |
|
|
|
1,617 |
|
|
|
4,944 |
|
|
Trading and investment banking |
|
|
6,720 |
|
|
|
5,712 |
|
|
|
3,119 |
|
|
|
1,008 |
|
|
|
3,601 |
|
|
Service charges on deposit accounts |
|
|
20,100 |
|
|
|
20,620 |
|
|
|
20,733 |
|
|
|
(520 |
) |
|
|
(633 |
) |
|
Insurance fees and commissions |
|
|
511 |
|
|
|
320 |
|
|
|
312 |
|
|
|
191 |
|
|
|
199 |
|
|
Brokerage fees |
|
|
8,839 |
|
|
|
8,102 |
|
|
|
6,761 |
|
|
|
737 |
|
|
|
2,078 |
|
|
Bankcard fees |
|
|
16,326 |
|
|
|
16,895 |
|
|
|
16,375 |
|
|
|
(569 |
) |
|
|
(49 |
) |
|
Gains on sales of securities available for sale, net |
|
|
755 |
|
|
|
3,057 |
|
|
|
— |
|
|
|
(2,302 |
) |
|
|
755 |
|
|
Other |
|
|
10,269 |
|
|
|
3,711 |
|
|
|
5,808 |
|
|
|
6,558 |
|
|
|
4,461 |
|
|
Total noninterest income |
|
$ |
110,355 |
|
|
$ |
103,635 |
|
|
$ |
94,999 |
|
|
$ |
6,720 |
|
|
$ |
15,356 |
|
|
Total revenue |
|
$ |
282,718 |
|
|
$ |
271,895 |
|
|
$ |
256,807 |
|
|
$ |
10,823 |
|
|
$ |
25,911 |
|
|
Net interest margin |
|
|
3.02 |
% |
|
|
3.09 |
% |
|
|
3.24 |
% |
|
|
|
|
|
|
|
|
|
Total noninterest income as a % of total revenue |
|
|
39.03 |
|
|
|
38.12 |
|
|
|
36.99 |
|
|
|
|
|
|
|
|
|
|
|
• |
Net interest income totaled $172.4 million, an increase of $4.1 million, or 2.4 percent, from linked quarter levels, driven by a $341.0 million, or 2.6 percent, increase in average loans, and a 4.8 percent increase in average earning assets. These benefits were offset by the impact of recent reductions in short-term interest rates on net interest margin. |
|
|
• |
Net interest margin for the fourth quarter was 3.02 percent, down seven basis points from the linked quarter, in large part due to lower short-term interest rates as well as an unfavorable shift in the mix of earning assets. Earning asset yields declined 23 basis points from the linked quarter, driven by declining yields in the loan portfolio due to recent reductions in short-term interest rates and the impact of excess liquidity. The cost of interest-bearing liabilities decreased 24 basis points to 1.10 percent, driven by a 22-basis-point decline in cost of interest-bearing deposits and lower borrowing costs. |
|
|
• |
On a year-over-year basis, the increase in net interest income was driven by a $1.3 billion, or 10.6 percent, increase in average loans, and a $1.2 billion, or 16.7 percent, increase in average investment securities. These benefits were coupled with higher average securities yields, which increased 13 basis points compared to 2018. |
|
|
• |
For the fourth quarter of 2019, earning assets averaged $23.5 billion, an increase of 14.7 percent compared to the fourth quarter of 2018. |
|
|
• |
Fourth quarter 2019 noninterest income increased $6.7 million, or 6.5 percent, on a linked-quarter basis, largely due to: |
|
|
o |
Increases of $3.0 million in company-owned life insurance income, $2.5 million in equity earnings on alternative investments, and $1.4 million in derivative income, all recorded in other income. The increase in company-owned life insurance income is offset by a proportionate increase in deferred compensation expense noted below. |
|
|
o |
An increase of $1.0 million in trading and investment banking income due to increased trading volume. |
|
|
o |
An increase of $0.9 million and $0.8 million in fund servicing revenue and corporate trust income, both recorded in trust and securities processing. |
|
|
o |
These increases were partially offset by a decrease of $2.3 million in gains on sales of available-for-sale securities. |
|
|
• |
Compared to the prior year, noninterest income in the fourth quarter of 2019 increased $15.4 million, or 16.2 percent, primarily driven by: |
|
|
o |
Increases of $6.8 million in company-owned life insurance and $1.8 million in derivative income, both recorded in other income. The increase in company-owned life insurance income is offset by a proportionate increase in deferred compensation expense noted below. |
|
|
o |
An increase of $3.6 million in trading and investment banking income due to increased trading volume. |
|
|
o |
An increase of $2.7 million in fund servicing income and an increase of $2.2 million in corporate trust income, both recorded in trust and securities processing. |
|
|
o |
An increase of $2.1 million in brokerage fees, primarily driven by higher money market and 12b-1 income. |
|
|
o |
These increases were partially offset by a decrease of $2.4 million in gains on sales of assets and $0.9 million on loss recoveries, both recorded in other income in the prior year. |
Noninterest expense
|
Summary of noninterest expense |
|
UMB Financial Corporation |
|
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|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 |
|
|
Q3 |
|
|
Q4 |
|
|
CQ vs. |
|
|
CQ vs. |
|
|||||
|
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
LQ |
|
|
PY |
|
|||||
|
Salaries and employee benefits |
|
$ |
120,806 |
|
|
$ |
110,153 |
|
|
$ |
103,992 |
|
|
$ |
10,653 |
|
|
$ |
16,814 |
|
|
Occupancy, net |
|
|
12,249 |
|
|
|
12,240 |
|
|
|
11,845 |
|
|
|
9 |
|
|
|
404 |
|
|
Equipment |
|
|
20,803 |
|
|
|
19,775 |
|
|
|
18,983 |
|
|
|
1,028 |
|
|
|
1,820 |
|
|
Supplies and services |
|
|
6,280 |
|
|
|
4,261 |
|
|
|
3,669 |
|
|
|
2,019 |
|
|
|
2,611 |
|
|
Marketing and business development |
|
|
8,385 |
|
|
|
5,655 |
|
|
|
6,483 |
|
|
|
2,730 |
|
|
|
1,902 |
|
|
Processing fees |
|
|
13,351 |
|
|
|
13,619 |
|
|
|
11,948 |
|
|
|
(268 |
) |
|
|
1,403 |
|
|
Legal and consulting |
|
|
10,001 |
|
|
|
8,374 |
|
|
|
11,085 |
|
|
|
1,627 |
|
|
|
(1,084 |
) |
|
Bankcard |
|
|
4,061 |
|
|
|
4,643 |
|
|
|
4,316 |
|
|
|
(582 |
) |
|
|
(255 |
) |
|
Amortization of other intangible assets |
|
|
1,593 |
|
|
|
1,335 |
|
|
|
1,332 |
|
|
|
258 |
|
|
|
261 |
|
|
Regulatory fees |
|
|
2,940 |
|
|
|
2,749 |
|
|
|
2,681 |
|
|
|
191 |
|
|
|
259 |
|
|
Other |
|
|
2,981 |
|
|
|
8,593 |
|
|
|
7,987 |
|
|
|
(5,612 |
) |
|
|
(5,006 |
) |
|
Total noninterest expense |
|
$ |
203,450 |
|
|
$ |
191,397 |
|
|
$ |
184,321 |
|
|
$ |
12,053 |
|
|
$ |
19,129 |
|
|
|
• |
GAAP noninterest expense for the fourth quarter of 2019 was $203.5 million, an increase of $12.1 million, or 6.3 percent, from the linked quarter and an increase of $19.1 million, or 10.4 percent, from the fourth quarter of 2018. |
|
|
• |
The linked quarter increase in noninterest expense was driven by: |
|
|
o |
An increase of $10.7 million in salaries and employee benefits, largely driven by a $6.8 million increase in bonus and commission expense tied to higher business volumes and revenue growth, as well as overall company performance, a $1.6 million increase in salary and wage expense, and a $2.5 million increase in deferred compensation expense, which is offset by the increase in company-owned life insurance income noted above. |
|
|
o |
A $2.7 million increase in marketing and business development expense, primarily driven by an increase of $2.3 million in advertising and business development due to the timing of multiple product initiatives and an increase of $0.5 million in travel and entertainment expense. |
|
|
o |
An increase of $2.0 million in supplies and services expense primarily due to expenses related to credit card campaign mailings and an increase of $1.4 million in consulting expense due to the timing of multiple technology initiatives. |
|
|
o |
These increases were partially offset by a decrease of $5.6 million in other expense, primarily driven by a decrease of $5.1 million in derivative valuation expense and $0.7 million in property and real estate taxes. |
|
|
• |
The year-over-year increase in noninterest expense was driven by: |
|
|
o |
A $16.8 million increase in salaries and employee benefits, primarily due to increases of $9.2 million in employee benefits expense, $4.5 million in bonus and commission expense, and $3.2 million in salary and wages expense. The increase in employee benefits expense was primarily driven by an increase of $7.5 million in deferred compensation expense, which is offset by the increase in company-owned life insurance income noted above. |
|
|
o |
An increase of $1.6 million in postage due to credit card campaign mailings and $0.8 million in purchases of computers, both recorded in supplies and services expense. |
|
|
o |
An increase of $1.9 million in marketing and business development due to timing of multiple product initiatives. |
|
|
o |
Increases of $1.8 million in equipment expense and $1.4 million in processing fees expense due to investments in digital channel and integrated platform solutions to support business growth and the ongoing modernization of the company’s core systems. |
|
|
o |
These increases were offset by decreases of $4.6 million in derivative valuation expense and $1.1 million in contributions expense, both recorded in other noninterest expense. |
Full year 2019 financial discussion
|
|
• |
The 9.9 percent year-over-year increase in net interest income was driven by benefits from higher short-term interest rates, favorable reinvestment yields on cash flows from the investment securities portfolio and increased loan balances. In 2019, average loan balances increased $1.2 billion and average securities increased $957.5 million, with average loan yields increasing 18 basis points and average securities yields increasing 23 basis points. Average interest-bearing liabilities increased $2.1 billion, while the cost of interest-bearing liabilities increased 34 basis points. |
|
|
• |
Full-year noninterest income increased $25.1 million, or 6.2 percent, due to: |
|
|
o |
Increases of $8.7 million in company-owned life insurance and $3.3 million in derivative income, both recorded in other noninterest income. The increase in company-owned life insurance income is offset by a proportionate increase in deferred compensation expense noted below. |
|
|
o |
A $7.9 million increase in trading and investment banking due to increased trading volume. |
|
|
o |
An increase of $6.9 million in corporate trust income, recorded in trust and securities processing. |
|
|
o |
A $5.5 million increase in brokerage fees, primarily driven by higher money market and 12b-1 income. |
|
|
o |
These increases were partially offset by a decrease of $2.5 million in equity earnings on alternative investments, recorded in other income, and decreases of $1.4 million in fund servicing revenue and $0.7 million in trust services income, both recorded in trust and securities processing. |
|
|
• |
Full-year noninterest expense increased $61.1 million, or 8.5 percent, primarily due to: |
|
|
o |
A $42.4 million increase in salary and employee benefit expense driven in part by increased employee headcount, and increased bonus and sales commission expense tied to business volumes and revenue growth, and overall company performance. |
|
|
o |
A $5.2 million increase in processing fees expense and a $3.9 million increase in equipment expense due to investments in digital channel and integrated platform solutions to support business growth and the ongoing modernization of the company’s core systems. |
|
|
o |
An increase of $3.9 million in operational losses during the current year, recorded in other noninterest expense. |
|
|
o |
An increase of $1.6 million in postage due to credit card campaign mailings and $0.7 million in purchases of computers, both recorded in supplies and services expense. |
|
|
o |
Additional increases of $2.5 million in occupancy expense and $1.9 million in marketing and business development expense. |
Income taxes
|
|
• |
The company’s effective tax rate was 14.8 percent for the year ended December 31, 2019, compared to 12.2 percent for the same period in 2018. The effective tax rate for 2018 reflected a net discrete tax benefit of $5.1 million, primarily related to the re-measurement of the company’s estimates for the impacts of the Tax Cuts & Jobs Act. |
Balance sheet
|
|
• |
Average total assets for the fourth quarter of 2019 were $25.1 billion compared to $23.9 billion for the linked quarter and $21.9 billion for the same period in 2018. |
|
Summary of average loans and leases - QTD Average |
UMB Financial Corporation |
|
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|
(unaudited, dollars in thousands) |
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|
|
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|
Q4 |
|
|
Q3 |
|
|
Q4 |
|
|
CQ vs. |
|
|
CQ vs. |
|
|||||
|
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
LQ |
|
|
PY |
|
|||||
|
Commercial |
|
$ |
5,595,358 |
|
|
$ |
5,443,718 |
|
|
$ |
4,977,907 |
|
|
$ |
151,640 |
|
|
$ |
617,451 |
|
|
Asset-based loans |
|
|
350,905 |
|
|
|
372,938 |
|
|
|
381,477 |
|
|
|
(22,033 |
) |
|
|
(30,572 |
) |
|
Factoring loans |
|
|
188,927 |
|
|
|
221,862 |
|
|
|
300,265 |
|
|
|
(32,935 |
) |
|
|
(111,338 |
) |
|
Commercial credit card |
|
|
195,970 |
|
|
|
204,905 |
|
|
|
178,772 |
|
|
|
(8,935 |
) |
|
|
17,198 |
|
|
Real estate - construction |
|
|
894,756 |
|
|
|
819,926 |
|
|
|
826,310 |
|
|
|
74,830 |
|
|
|
68,446 |
|
|
Real estate - commercial |
|
|
4,254,780 |
|
|
|
4,164,477 |
|
|
|
3,663,610 |
|
|
|
90,303 |
|
|
|
591,170 |
|
|
Real estate - residential |
|
|
890,324 |
|
|
|
805,994 |
|
|
|
697,927 |
|
|
|
84,330 |
|
|
|
192,397 |
|
|
Real estate - HELOC |
|
|
480,843 |
|
|
|
498,460 |
|
|
|
555,161 |
|
|
|
(17,617 |
) |
|
|
(74,318 |
) |
|
Consumer credit card |
|
|
242,503 |
|
|
|
220,363 |
|
|
|
248,309 |
|
|
|
22,140 |
|
|
|
(5,806 |
) |
|
Consumer other |
|
|
135,525 |
|
|
|
136,117 |
|
|
|
132,812 |
|
|
|
(592 |
) |
|
|
2,713 |
|
|
Leases |
|
|
1,993 |
|
|
|
2,118 |
|
|
|
5,386 |
|
|
|
(125 |
) |
|
|
(3,393 |
) |
|
Total loans |
|
$ |
13,231,884 |
|
|
$ |
12,890,878 |
|
|
$ |
11,967,936 |
|
|
$ |
341,006 |
|
|
$ |
1,263,948 |
|
|
|
• |
Average loans for the fourth quarter of 2019 increased 2.6 percent on a linked-quarter basis and 10.6 percent compared to the fourth quarter of 2018. |
|
Summary of average securities - QTD Average |
|
UMB Financial Corporation |
|
|||||||||||||||||
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 |
|
|
Q3 |
|
|
Q4 |
|
|
CQ vs. |
|
|
CQ vs. |
|
|||||
|
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
LQ |
|
|
PY |
|
|||||
|
Securities available for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury |
|
$ |
220,830 |
|
|
$ |
250,552 |
|
|
$ |
105,509 |
|
|
$ |
(29,722 |
) |
|
$ |
115,321 |
|
|
U.S. Agencies |
|
|
93,258 |
|
|
|
93,440 |
|
|
|
198 |
|
|
|
(182 |
) |
|
|
93,060 |
|
|
Mortgage-backed |
|
|
3,967,051 |
|
|
|
3,987,463 |
|
|
|
3,703,212 |
|
|
|
(20,412 |
) |
|
|
263,839 |
|
|
State and political subdivisions |
|
|
2,968,305 |
|
|
|
2,795,210 |
|
|
|
2,353,816 |
|
|
|
173,095 |
|
|
|
614,489 |
|
|
Corporates |
|
|
184,503 |
|
|
|
155,656 |
|
|
|
— |
|
|
|
28,847 |
|
|
|
184,503 |
|
|
Total securities available for sale |
|
$ |
7,433,947 |
|
|
$ |
7,282,321 |
|
|
$ |
6,162,735 |
|
|
$ |
151,626 |
|
|
$ |
1,271,212 |
|
|
Securities held to maturity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and political subdivisions |
|
$ |
1,117,268 |
|
|
$ |
1,105,397 |
|
|
$ |
1,180,061 |
|
|
$ |
11,871 |
|
|
$ |
(62,793 |
) |
|
Trading securities |
|
|
56,653 |
|
|
|
44,571 |
|
|
|
61,629 |
|
|
|
12,082 |
|
|
|
(4,976 |
) |
|
Other securities |
|
|
96,994 |
|
|
|
90,008 |
|
|
|
66,760 |
|
|
|
6,986 |
|
|
|
30,234 |
|
|
Total securities |
|
$ |
8,704,862 |
|
|
$ |
8,522,297 |
|
|
$ |
7,471,185 |
|
|
$ |
182,565 |
|
|
$ |
1,233,677 |
|
|
|
• |
Average securities available for sale increased 2.1 percent on a linked-quarter basis and increased 20.6 percent compared to the fourth quarter of 2018. |
|
Summary of average deposits - QTD Average |
UMB Financial Corporation |
|
||||||||||||||||||
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 |
|
|
Q3 |
|
|
Q4 |
|
|
CQ vs. |
|
|
CQ vs. |
|
|||||
|
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
LQ |
|
|
PY |
|
|||||
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
6,398,309 |
|
|
$ |
6,082,498 |
|
|
$ |
6,052,011 |
|
|
$ |
315,811 |
|
|
$ |
346,298 |
|
|
Interest-bearing demand and savings |
|
|
12,959,948 |
|
|
|
12,214,570 |
|
|
|
11,057,273 |
|
|
|
745,378 |
|
|
|
1,902,675 |
|
|
Time deposits |
|
|
1,028,293 |
|
|
|
1,011,862 |
|
|
|
1,060,838 |
|
|
|
16,431 |
|
|
|
(32,545 |
) |
|
Total deposits |
|
$ |
20,386,550 |
|
|
$ |
19,308,930 |
|
|
$ |
18,170,122 |
|
|
$ |
1,077,620 |
|
|
$ |
2,216,428 |
|
|
Noninterest bearing deposits as % of total |
|
|
31.38 |
% |
|
|
31.50 |
% |
|
|
33.31 |
% |
|
|
|
|
|
|
|
|
|
|
• |
Average deposits increased 5.6 percent on a linked-quarter basis and 12.2 percent compared to the fourth quarter of 2018. |
Capital
|
Capital information |
|
UMB Financial Corporation |
|
|||||||||
|
(unaudited, dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 |
|
|
September 30, 2019 |
|
|
December 31, 2018 |
|
|||
|
Total equity |
|
$ |
2,606,440 |
|
|
$ |
2,563,866 |
|
|
$ |
2,228,470 |
|
|
Book value per common share |
|
|
53.09 |
|
|
|
52.23 |
|
|
|
45.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 capital |
|
$ |
2,330,533 |
|
|
$ |
2,284,417 |
|
|
$ |
2,142,469 |
|
|
Tier 1 capital |
|
|
2,330,533 |
|
|
|
2,284,417 |
|
|
|
2,142,469 |
|
|
Total capital |
|
|
2,505,397 |
|
|
|
2,464,698 |
|
|
|
2,318,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 capital ratio |
|
|
12.33 |
% |
|
|
12.53 |
% |
|
|
12.89 |
% |
|
Tier 1 risk-based capital ratio |
|
|
12.33 |
|
|
|
12.53 |
|
|
|
12.89 |
|
|
Total risk-based capital ratio |
|
|
13.26 |
|
|
|
13.51 |
|
|
|
13.95 |
|
|
Tier 1 leverage ratio |
|
|
9.37 |
|
|
|
9.62 |
|
|
|
9.87 |
|
|
|
• |
At December 31, 2019, the regulatory capital ratios presented in the foregoing table exceeded all “well-capitalized” regulatory thresholds. |
Asset Quality
|
Credit quality |
|
UMB Financial Corporation |
|
|||||||||||||||||
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 |
|
|
Q3 |
|
|
Q2 |
|
|
Q1 |
|
|
Q4 |
|
|||||
|
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|||||
|
Net charge-offs - Commercial loans |
|
$ |
6,075 |
|
|
$ |
568 |
|
|
$ |
11,790 |
|
|
$ |
10,537 |
|
|
$ |
44,010 |
|
|
Net (recoveries) charge-offs - Real estate loans |
|
|
(166 |
) |
|
|
161 |
|
|
|
(714 |
) |
|
|
41 |
|
|
|
28 |
|
|
Net charge-offs - Consumer credit card loans |
|
|
1,616 |
|
|
|
1,377 |
|
|
|
1,336 |
|
|
|
1,676 |
|
|
|
1,606 |
|
|
Net charge-offs - Consumer other loans |
|
|
93 |
|
|
|
80 |
|
|
|
157 |
|
|
|
70 |
|
|
|
23 |
|
|
Net charge-offs - Total loans |
|
|
7,618 |
|
|
|
2,186 |
|
|
|
12,569 |
|
|
|
12,324 |
|
|
|
45,667 |
|
|
Net loan charge-offs as a % of total average loans |
|
|
0.23 |
% |
|
|
0.07 |
% |
|
|
0.40 |
% |
|
|
0.41 |
% |
|
|
1.51 |
% |
|
Loans over 90 days past due |
|
$ |
2,069 |
|
|
$ |
2,466 |
|
|
$ |
1,825 |
|
|
$ |
1,874 |
|
|
$ |
6,009 |
|
|
Loans over 90 days past due as a % of total loans |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.05 |
% |
|
Nonaccrual and restructured loans |
|
$ |
56,347 |
|
|
$ |
71,838 |
|
|
$ |
53,395 |
|
|
$ |
63,270 |
|
|
$ |
43,018 |
|
|
Nonaccrual and restructured loans as a % of total loans |
|
|
0.42 |
% |
|
|
0.55 |
% |
|
|
0.41 |
% |
|
|
0.50 |
% |
|
|
0.35 |
% |
|
Provision for loan losses |
|
$ |
2,000 |
|
|
$ |
7,500 |
|
|
$ |
11,000 |
|
|
$ |
12,350 |
|
|
$ |
48,000 |
|
|
|
• |
Provision for loan losses totaled $2.0 million, a decrease of $5.5 million from the linked quarter, and $46.0 million from the fourth quarter of 2018. The provision expense for 2018 included increased provision expense related to the charge-off of a single $48.1 million factoring credit. |
|
|
• |
Net charge-offs totaled $7.6 million, or 0.23 percent, of average loans, compared to $2.2 million, or 0.07 percent, of average loans in the linked quarter. |
Dividend Declaration
At the company’s quarterly board meeting, the Board of Directors declared a $0.31 per share quarterly cash dividend, payable on April 1, 2020, to shareholders of record at the close of business on March 10, 2020.
Conference Call
The company plans to host a conference call to discuss its fourth quarter and full year 2019 earnings results on Wednesday, January 29, 2020, at 8:30 a.m. (CT).
Interested parties may access the call by dialing (toll-free) 877-267-8760 or (international) 412-542-4148 and requesting to join the UMB Financial call. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:
UMB Financial 4Q 2019 Conference Call
A replay of the conference call may be heard through February 12, 2020 by calling (toll-free)
877-344-7529 or (international) 412-317-0088. The replay access code required for playback is 10137932. The call replay may also be accessed at investorrelations.umb.com.
Non-GAAP Financial Information
In this release, we provide information about net operating income from continuing operations (net operating income), operating earnings per share from continuing operations - diluted (operating EPS), operating return on average equity (operating ROE), operating return on average assets (operating ROA), operating noninterest expense, and operating efficiency ratio, all of which are non-GAAP financial measures. This information supplements the results that are reported according to generally accepted accounting principles in the United States (GAAP) and should not be viewed in isolation from, or as a substitute for, GAAP results. The differences between the non-GAAP financial measures – net operating income, operating EPS, operating ROE, operating ROA, operating noninterest expense, and operating efficiency ratio – and the nearest comparable GAAP financial measures are reconciled later in this release. The company believes that these non-GAAP financial measures and the reconciliations may be
useful to investors because they adjust for acquisition-, divestiture-, and severance-related items that management does not believe reflect the company’s fundamental operating performance.
Net operating income for the relevant period is defined as GAAP net income, adjusted to reflect the impact of excluding expenses related to acquisitions and divestitures, severance expense, and the cumulative tax impact of these adjustments.
Operating EPS (diluted) is calculated as earnings per share as reported, adjusted to reflect, on a per share basis, the impact of excluding the non-GAAP adjustments described above for the relevant period. Operating ROE is calculated as net operating income from continuing operations, divided by the company’s average total shareholders’ equity for the relevant period. Operating ROA is calculated as net operating income from continuing operations, divided by the company’s average assets for the relevant period. Operating noninterest expense for the relevant period is defined as GAAP noninterest expense, adjusted to reflect the pre-tax impact of non-GAAP adjustments described above. Operating efficiency ratio is calculated as the company’s operating noninterest expense, net of amortization of other intangibles, divided by the company’s total non-GAAP revenue (calculated as net interest income plus noninterest income, less gains on sales of securities available for sale, net).
Forward-Looking Statements:
This press release contains, and our other communications may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “outlook,” “forecast,” “target,” “trend,” “plan,” “goal,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, results, or aspirations. All forward-looking statements are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Our actual future objectives, strategies, plans, prospects, performance, condition, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events, circumstances, or aspirations to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2018, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (SEC). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except to the extent required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K, or other applicable document that is filed or furnished with the SEC.
About UMB:
UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Mo. UMB offers personal banking, commercial banking, healthcare services and institutional banking, which includes services to mutual funds and alternative-investment entities and registered investment advisors. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas. For more information, visit UMB.com, UMB Blog or follow us on Twitter at @UMBBank, UMB Facebook and UMB LinkedIn.
|
Consolidated Balance Sheets |
|
UMB Financial Corporation |
|
|||||
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|||||
|
|
|
2019 |
|
|
2018 |
|
||
|
|
|
(unaudited) |
|
|
(audited) |
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
13,431,722 |
|
|
$ |
12,178,150 |
|
|
Allowance for loan losses |
|
|
(101,788 |
) |
|
|
(103,635 |
) |
|
Net loans |
|
|
13,329,934 |
|
|
|
12,074,515 |
|
|
Loans held for sale |
|
|
7,803 |
|
|
|
3,192 |
|
|
Securities: |
|
|
|
|
|
|
|
|
|
Available for sale |
|
|
7,447,362 |
|
|
|
6,542,800 |
|
|
Held to maturity |
|
|
1,116,102 |
|
|
|
1,170,646 |
|
|
Trading securities |
|
|
45,618 |
|
|
|
61,011 |
|
|
Other securities |
|
|
108,420 |
|
|
|
73,692 |
|
|
Total securities |
|
|
8,717,502 |
|
|
|
7,848,149 |
|
|
Federal funds sold and resell agreements |
|
|
1,578,345 |
|
|
|
627,001 |
|
|
Interest-bearing due from banks |
|
|
1,225,491 |
|
|
|
1,047,830 |
|
|
Cash and due from banks |
|
|
472,958 |
|
|
|
645,123 |
|
|
Premises and equipment, net |
|
|
300,334 |
|
|
|
283,879 |
|
|
Accrued income |
|
|
124,508 |
|
|
|
110,168 |
|
|
Goodwill |
|
|
180,867 |
|
|
|
180,867 |
|
|
Other intangibles, net |
|
|
27,597 |
|
|
|
15,003 |
|
|
Other assets |
|
|
596,016 |
|
|
|
515,392 |
|
|
Total assets |
|
$ |
26,561,355 |
|
|
$ |
23,351,119 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
6,944,465 |
|
|
$ |
6,680,070 |
|
|
Interest-bearing demand and savings |
|
|
13,432,415 |
|
|
|
11,454,442 |
|
|
Time deposits under $250,000 |
|
|
611,587 |
|
|
|
593,904 |
|
|
Time deposits of $250,000 or more |
|
|
614,777 |
|
|
|
552,844 |
|
|
Total deposits |
|
|
21,603,244 |
|
|
|
19,281,260 |
|
|
Federal funds purchased and repurchase agreements |
|
|
1,896,508 |
|
|
|
1,518,920 |
|
|
Long-term debt |
|
|
97,490 |
|
|
|
82,671 |
|
|
Accrued expenses and taxes |
|
|
232,200 |
|
|
|
177,731 |
|
|
Other liabilities |
|
|
125,473 |
|
|
|
62,067 |
|
|
Total liabilities |
|
|
23,954,915 |
|
|
|
21,122,649 |
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Common stock |
|
|
55,057 |
|
|
|
55,057 |
|
|
Capital surplus |
|
|
1,073,764 |
|
|
|
1,054,601 |
|
|
Retained earnings |
|
|
1,672,438 |
|
|
|
1,488,421 |
|
|
Accumulated other comprehensive income (loss), net |
|
|
83,180 |
|
|
|
(95,782 |
) |
|
Treasury stock |
|
|
(277,999 |
) |
|
|
(273,827 |
) |
|
Total shareholders' equity |
|
|
2,606,440 |
|
|
|
2,228,470 |
|
|
Total liabilities and shareholders' equity |
|
$ |
26,561,355 |
|
|
$ |
23,351,119 |
|
|
Consolidated Statements of Income |
|
UMB Financial Corporation |
|
|||||||||||||
|
(dollars in thousands except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(audited) |
|
||||
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
156,503 |
|
|
$ |
154,120 |
|
|
$ |
637,845 |
|
|
$ |
559,351 |
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable interest |
|
|
26,996 |
|
|
|
22,767 |
|
|
|
106,053 |
|
|
|
83,333 |
|
|
Tax-exempt interest |
|
|
24,177 |
|
|
|
19,137 |
|
|
|
90,064 |
|
|
|
74,411 |
|
|
Total securities income |
|
|
51,173 |
|
|
|
41,904 |
|
|
|
196,117 |
|
|
|
157,744 |
|
|
Federal funds and resell agreements |
|
|
4,875 |
|
|
|
2,353 |
|
|
|
13,843 |
|
|
|
4,808 |
|
|
Interest-bearing due from banks |
|
|
2,765 |
|
|
|
3,761 |
|
|
|
12,882 |
|
|
|
7,910 |
|
|
Trading securities |
|
|
504 |
|
|
|
581 |
|
|
|
2,205 |
|
|
|
2,148 |
|
|
Total interest income |
|
|
215,820 |
|
|
|
202,719 |
|
|
|
862,892 |
|
|
|
731,961 |
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
35,698 |
|
|
|
34,140 |
|
|
|
154,192 |
|
|
|
92,101 |
|
|
Federal funds and repurchase agreements |
|
|
6,629 |
|
|
|
5,815 |
|
|
|
32,553 |
|
|
|
24,737 |
|
|
Other |
|
|
1,130 |
|
|
|
956 |
|
|
|
5,242 |
|
|
|
4,677 |
|
|
Total interest expense |
|
|
43,457 |
|
|
|
40,911 |
|
|
|
191,987 |
|
|
|
121,515 |
|
|
Net interest income |
|
|
172,363 |
|
|
|
161,808 |
|
|
|
670,905 |
|
|
|
610,446 |
|
|
Provision for loan losses |
|
|
2,000 |
|
|
|
48,000 |
|
|
|
32,850 |
|
|
|
70,750 |
|
|
Net interest income after provision for loan losses |
|
|
170,363 |
|
|
|
113,808 |
|
|
|
638,055 |
|
|
|
539,696 |
|
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and securities processing |
|
|
46,835 |
|
|
|
41,891 |
|
|
|
176,913 |
|
|
|
172,163 |
|
|
Trading and investment banking |
|
|
6,720 |
|
|
|
3,119 |
|
|
|
23,466 |
|
|
|
15,584 |
|
|
Service charges on deposit accounts |
|
|
20,100 |
|
|
|
20,733 |
|
|
|
82,748 |
|
|
|
84,287 |
|
|
Insurance fees and commissions |
|
|
511 |
|
|
|
312 |
|
|
|
1,634 |
|
|
|
1,292 |
|
|
Brokerage fees |
|
|
8,839 |
|
|
|
6,761 |
|
|
|
31,261 |
|
|
|
25,807 |
|
|
Bankcard fees |
|
|
16,326 |
|
|
|
16,375 |
|
|
|
66,727 |
|
|
|
68,520 |
|
|
Gains on sales of securities available for sale, net |
|
|
755 |
|
|
|
— |
|
|
|
3,218 |
|
|
|
578 |
|
|
Other |
|
|
10,269 |
|
|
|
5,808 |
|
|
|
40,803 |
|
|
|
33,467 |
|
|
Total noninterest income |
|
|
110,355 |
|
|
|
94,999 |
|
|
|
426,770 |
|
|
|
401,698 |
|
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
120,806 |
|
|
|
103,992 |
|
|
|
461,445 |
|
|
|
419,091 |
|
|
Occupancy, net |
|
|
12,249 |
|
|
|
11,845 |
|
|
|
47,771 |
|
|
|
45,239 |
|
|
Equipment |
|
|
20,803 |
|
|
|
18,983 |
|
|
|
79,086 |
|
|
|
75,184 |
|
|
Supplies and services |
|
|
6,280 |
|
|
|
3,669 |
|
|
|
18,699 |
|
|
|
16,103 |
|
|
Marketing and business development |
|
|
8,385 |
|
|
|
6,483 |
|
|
|
26,257 |
|
|
|
24,372 |
|
|
Processing fees |
|
|
13,351 |
|
|
|
11,948 |
|
|
|
52,198 |
|
|
|
46,977 |
|
|
Legal and consulting |
|
|
10,001 |
|
|
|
11,085 |
|
|
|
31,504 |
|
|
|
29,859 |
|
|
Bankcard |
|
|
4,061 |
|
|
|
4,316 |
|
|
|
17,750 |
|
|
|
17,514 |
|
|
Amortization of other intangible assets |
|
|
1,593 |
|
|
|
1,332 |
|
|
|
5,506 |
|
|
|
5,764 |
|
|
Regulatory fees |
|
|
2,940 |
|
|
|
2,681 |
|
|
|
11,489 |
|
|
|
12,695 |
|
|
Other |
|
|
2,981 |
|
|
|
7,987 |
|
|
|
27,155 |
|
|
|
25,002 |
|
|
Total noninterest expense |
|
|
203,450 |
|
|
|
184,321 |
|
|
|
778,860 |
|
|
|
717,800 |
|
|
Income before income taxes |
|
|
77,268 |
|
|
|
24,486 |
|
|
|
285,965 |
|
|
|
223,594 |
|
|
Income tax expense (benefit) |
|
|
10,753 |
|
|
|
(968 |
) |
|
|
42,365 |
|
|
|
27,334 |
|
|
Income from continuing operations |
|
|
66,515 |
|
|
|
25,454 |
|
|
|
243,600 |
|
|
|
196,260 |
|
|
Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations before income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(917 |
) |
|
Income tax benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(170 |
) |
|
Loss from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(747 |
) |
|
NET INCOME |
|
$ |
66,515 |
|
|
$ |
25,454 |
|
|
$ |
243,600 |
|
|
$ |
195,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
1.36 |
|
|
$ |
0.52 |
|
|
$ |
4.99 |
|
|
$ |
3.98 |
|
|
Loss from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
Net income – basic |
|
|
1.36 |
|
|
|
0.52 |
|
|
|
4.99 |
|
|
|
3.97 |
|
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
1.35 |
|
|
|
0.52 |
|
|
|
4.96 |
|
|
|
3.94 |
|
|
Loss from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
Net income – diluted |
|
|
1.35 |
|
|
|
0.52 |
|
|
|
4.96 |
|
|
|
3.93 |
|
|
Dividends |
|
|
0.31 |
|
|
|
0.30 |
|
|
|
1.21 |
|
|
|
1.17 |
|
|
Weighted average shares outstanding – basic |
|
|
48,828,509 |
|
|
|
48,898,286 |
|
|
|
48,779,263 |
|
|
|
49,334,937 |
|
|
Weighted average shares outstanding – diluted |
|
|
49,187,291 |
|
|
|
49,230,321 |
|
|
|
49,089,877 |
|
|
|
49,770,737 |
|
|
Consolidated Statements of Comprehensive Income |
|
UMB Financial Corporation |
|
|||||||||||||
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(audited) |
|
||||
|
Net income |
|
$ |
66,515 |
|
|
$ |
25,454 |
|
|
$ |
243,600 |
|
|
$ |
195,513 |
|
|
Other comprehensive (loss) income, before tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains and losses on debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in unrealized holding gains and losses, net |
|
|
(14,209 |
) |
|
|
81,742 |
|
|
|
253,891 |
|
|
|
(51,271 |
) |
|
Less: Reclassification adjustment for gains included in net income |
|
|
(755 |
) |
|
|
— |
|
|
|
(3,218 |
) |
|
|
(578 |
) |
|
Change in unrealized gains and losses on debt securities |
|
|
(14,964 |
) |
|
|
81,742 |
|
|
|
250,673 |
|
|
|
(51,849 |
) |
|
Unrealized gains and losses on derivative hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in unrealized gains and losses on derivative hedges, net |
|
|
(2,700 |
) |
|
|
(2,368 |
) |
|
|
(15,318 |
) |
|
|
1,906 |
|
|
Less: Reclassification adjustment for losses included in net income |
|
|
728 |
|
|
|
— |
|
|
|
1,023 |
|
|
|
— |
|
|
Change in unrealized gains and losses on derivative hedges |
|
|
(1,972 |
) |
|
|
(2,368 |
) |
|
|
(14,295 |
) |
|
|
1,906 |
|
|
Other comprehensive (loss) income, before tax |
|
|
(16,936 |
) |
|
|
79,374 |
|
|
|
236,378 |
|
|
|
(49,943 |
) |
|
Income tax benefit (expense) |
|
|
4,095 |
|
|
|
(19,515 |
) |
|
|
(57,416 |
) |
|
|
12,735 |
|
|
Other comprehensive (loss) income before reclassifications |
|
|
(12,841 |
) |
|
|
59,859 |
|
|
|
178,962 |
|
|
|
(37,208 |
) |
|
Amounts reclassified from accumulated other comprehensive income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13,049 |
) |
|
Net current-period other comprehensive (loss) income |
|
|
(12,841 |
) |
|
|
59,859 |
|
|
|
178,962 |
|
|
|
(50,257 |
) |
|
Comprehensive income |
|
$ |
53,674 |
|
|
$ |
85,313 |
|
|
$ |
422,562 |
|
|
$ |
145,256 |
|
|
Consolidated Statements of Shareholders' Equity |
UMB Financial Corporation |
|
||||||||||||||||||||||
|
(dollars in thousands except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
(audited) |
|
Common Stock |
|
|
Capital Surplus |
|
|
Retained Earnings |
|
|
Accumulated Other Comprehensive (Loss) Income |
|
|
Treasury Stock |
|
|
Total |
|
||||||
|
Balance - January 1, 2018 |
|
$ |
55,057 |
|
|
$ |
1,046,095 |
|
|
$ |
1,338,110 |
|
|
$ |
(45,525 |
) |
|
$ |
(212,206 |
) |
|
$ |
2,181,531 |
|
|
Total comprehensive income (loss) |
|
|
— |
|
|
|
— |
|
|
|
195,513 |
|
|
|
(50,257 |
) |
|
|
— |
|
|
|
145,256 |
|
|
Reclassification of certain tax effects |
|
|
— |
|
|
|
— |
|
|
|
12,917 |
|
|
|
— |
|
|
|
— |
|
|
|
12,917 |
|
|
Dividends ($1.17 per share) |
|
|
— |
|
|
|
— |
|
|
|
(58,264 |
) |
|
|
— |
|
|
|
— |
|
|
|
(58,264 |
) |
|
Purchase of treasury stock |
|
|
— |
|
|
|
(2,807 |
) |
|
|
— |
|
|
|
— |
|
|
|
(73,700 |
) |
|
|
(76,507 |
) |
|
Issuances of equity awards, net of forfeitures |
|
|
— |
|
|
|
(2,004 |
) |
|
|
— |
|
|
|
— |
|
|
|
2,499 |
|
|
|
495 |
|
|
Recognition of equity-based compensation |
|
|
— |
|
|
|
10,579 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,579 |
|
|
Sale of treasury stock |
|
|
— |
|
|
|
524 |
|
|
|
— |
|
|
|
— |
|
|
|
538 |
|
|
|
1,062 |
|
|
Exercise of stock options |
|
|
— |
|
|
|
2,214 |
|
|
|
— |
|
|
|
— |
|
|
|
9,042 |
|
|
|
11,256 |
|
|
Cumulative effect adjustments |
|
|
— |
|
|
|
— |
|
|
|
145 |
|
|
|
— |
|
|
|
— |
|
|
|
145 |
|
|
Balance - December 31, 2018 |
|
$ |
55,057 |
|
|
$ |
1,054,601 |
|
|
$ |
1,488,421 |
|
|
$ |
(95,782 |
) |
|
$ |
(273,827 |
) |
|
$ |
2,228,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance - January 1, 2019 |
|
$ |
55,057 |
|
|
$ |
1,054,601 |
|
|
$ |
1,488,421 |
|
|
$ |
(95,782 |
) |
|
$ |
(273,827 |
) |
|
$ |
2,228,470 |
|
|
Total comprehensive income |
|
|
— |
|
|
|
— |
|
|
|
243,600 |
|
|
|
178,962 |
|
|
|
— |
|
|
|
422,562 |
|
|
Dividends ($1.21 per share) |
|
|
— |
|
|
|
— |
|
|
|
(59,583 |
) |
|
|
— |
|
|
|
— |
|
|
|
(59,583 |
) |
|
Purchase of treasury stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,496 |
) |
|
|
(4,496 |
) |
|
Forfeitures of equity awards, net of issuances |
|
|
— |
|
|
|
3,820 |
|
|
|
— |
|
|
|
— |
|
|
|
(3,204 |
) |
|
|
616 |
|
|
Recognition of equity-based compensation |
|
|
— |
|
|
|
14,234 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,234 |
|
|
Sale of treasury stock |
|
|
— |
|
|
|
344 |
|
|
|
— |
|
|
|
— |
|
|
|
487 |
|
|
|
831 |
|
|
Exercise of stock options |
|
|
— |
|
|
|
765 |
|
|
|
— |
|
|
|
— |
|
|
|
3,041 |
|
|
|
3,806 |
|
|
Balance - December 31, 2019 |
|
$ |
55,057 |
|
|
$ |
1,073,764 |
|
|
$ |
1,672,438 |
|
|
$ |
83,180 |
|
|
$ |
(277,999 |
) |
|
$ |
2,606,440 |
|
|
Average Balances / Yields and Rates |
|
UMB Financial Corporation |
|
|||||||||||||
|
(tax - equivalent basis) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|||||||||||||
|
|
|
2019 |
|
|
2018 |
|
||||||||||
|
|
|
Average |
|
|
Average |
|
|
Average |
|
|
Average |
|
||||
|
|
|
Balance |
|
|
Yield/Rate |
|
|
Balance |
|
|
Yield/Rate |
|
||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned interest |
|
$ |
13,231,884 |
|
|
|
4.69 |
% |
|
$ |
11,967,936 |
|
|
|
5.11 |
% |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
4,654,669 |
|
|
|
2.30 |
|
|
|
3,943,891 |
|
|
|
2.29 |
|
|
Tax-exempt |
|
|
3,993,540 |
|
|
|
3.04 |
|
|
|
3,465,665 |
|
|
|
2.77 |
|
|
Total securities |
|
|
8,648,209 |
|
|
|
2.64 |
|
|
|
7,409,556 |
|
|
|
2.51 |
|
|
Federal funds and resell agreements |
|
|
893,954 |
|
|
|
2.16 |
|
|
|
344,502 |
|
|
|
2.71 |
|
|
Interest bearing due from banks |
|
|
633,328 |
|
|
|
1.73 |
|
|
|
672,916 |
|
|
|
2.22 |
|
|
Trading securities |
|
|
56,653 |
|
|
|
4.09 |
|
|
|
61,629 |
|
|
|
4.44 |
|
|
Total earning assets |
|
|
23,464,028 |
|
|
|
3.76 |
|
|
|
20,456,539 |
|
|
|
4.03 |
|
|
Allowance for loan losses |
|
|
(109,967 |
) |
|
|
|
|
|
|
(101,221 |
) |
|
|
|
|
|
Other assets |
|
|
1,716,962 |
|
|
|
|
|
|
|
1,523,434 |
|
|
|
|
|
|
Total assets |
|
$ |
25,071,023 |
|
|
|
|
|
|
$ |
21,878,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
13,988,241 |
|
|
|
1.01 |
% |
|
$ |
12,118,111 |
|
|
|
1.12 |
% |
|
Federal funds and repurchase agreements |
|
|
1,661,285 |
|
|
|
1.58 |
|
|
|
1,206,152 |
|
|
|
1.91 |
|
|
Borrowed funds |
|
|
91,302 |
|
|
|
4.91 |
|
|
|
80,442 |
|
|
|
4.71 |
|
|
Total interest-bearing liabilities |
|
|
15,740,828 |
|
|
|
1.10 |
|
|
|
13,404,705 |
|
|
|
1.21 |
|
|
Noninterest-bearing demand deposits |
|
|
6,398,309 |
|
|
|
|
|
|
|
6,052,011 |
|
|
|
|
|
|
Other liabilities |
|
|
332,771 |
|
|
|
|
|
|
|
213,107 |
|
|
|
|
|
|
Shareholders' equity |
|
|
2,599,115 |
|
|
|
|
|
|
|
2,208,929 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
25,071,023 |
|
|
|
|
|
|
$ |
21,878,752 |
|
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
2.66 |
% |
|
|
|
|
|
|
2.82 |
% |
|
Net interest margin |
|
|
|
|
|
|
3.02 |
|
|
|
|
|
|
|
3.24 |
|
|
Average Balances / Yields and Rates |
|
UMB Financial Corporation |
|
|||||||||||||
|
(tax - equivalent basis) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|||||||||||||
|
|
|
2019 |
|
|
2018 |
|
||||||||||
|
|
|
Average |
|
|
Average |
|
|
Average |
|
|
Average |
|
||||
|
|
|
Balance |
|
|
Yield/Rate |
|
|
Balance |
|
|
Yield/Rate |
|
||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned interest |
|
$ |
12,764,623 |
|
|
|
5.00 |
% |
|
$ |
11,606,544 |
|
|
|
4.82 |
% |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
4,524,955 |
|
|
|
2.34 |
|
|
|
3,858,829 |
|
|
|
2.16 |
|
|
Tax-exempt |
|
|
3,796,983 |
|
|
|
3.00 |
|
|
|
3,505,602 |
|
|
|
2.68 |
|
|
Total securities |
|
|
8,321,938 |
|
|
|
2.64 |
|
|
|
7,364,431 |
|
|
|
2.41 |
|
|
Federal funds and resell agreements |
|
|
535,393 |
|
|
|
2.59 |
|
|
|
178,801 |
|
|
|
2.69 |
|
|
Interest bearing due from banks |
|
|
584,756 |
|
|
|
2.20 |
|
|
|
419,768 |
|
|
|
1.88 |
|
|
Trading securities |
|
|
52,306 |
|
|
|
4.79 |
|
|
|
49,345 |
|
|
|
4.97 |
|
|
Total earning assets |
|
|
22,259,016 |
|
|
|
3.98 |
|
|
|
19,618,889 |
|
|
|
3.83 |
|
|
Allowance for loan losses |
|
|
(107,422 |
) |
|
|
|
|
|
|
(100,948 |
) |
|
|
|
|
|
Other assets |
|
|
1,633,031 |
|
|
|
|
|
|
|
1,481,936 |
|
|
|
|
|
|
Total assets |
|
$ |
23,784,625 |
|
|
|
|
|
|
$ |
20,999,877 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
13,172,181 |
|
|
|
1.17 |
% |
|
$ |
11,156,002 |
|
|
|
0.83 |
% |
|
Federal funds and repurchase agreements |
|
|
1,657,283 |
|
|
|
1.96 |
|
|
|
1,559,149 |
|
|
|
1.59 |
|
|
Borrowed funds |
|
|
85,920 |
|
|
|
6.10 |
|
|
|
79,191 |
|
|
|
5.91 |
|
|
Total interest-bearing liabilities |
|
|
14,915,384 |
|
|
|
1.29 |
|
|
|
12,794,342 |
|
|
|
0.95 |
|
|
Noninterest-bearing demand deposits |
|
|
6,132,187 |
|
|
|
|
|
|
|
5,828,545 |
|
|
|
|
|
|
Other liabilities |
|
|
285,207 |
|
|
|
|
|
|
|
182,202 |
|
|
|
|
|
|
Shareholders' equity |
|
|
2,451,847 |
|
|
|
|
|
|
|
2,194,788 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
23,784,625 |
|
|
|
|
|
|
$ |
20,999,877 |
|
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
2.69 |
% |
|
|
|
|
|
|
2.88 |
% |
|
Net interest margin |
|
|
|
|
|
|
3.12 |
|
|
|
|
|
|
|
3.21 |
|
|
Business Segment Information |
|
UMB Financial Corporation |
|
|||||||||||||||||
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2019 |
|
|||||||||||||||||
|
|
|
Commercial Banking |
|
|
Institutional Banking |
|
|
Personal Banking |
|
|
Healthcare Services |
|
|
Total |
|
|||||
|
Net interest income |
|
$ |
105,479 |
|
|
$ |
21,586 |
|
|
$ |
33,150 |
|
|
$ |
12,148 |
|
|
$ |
172,363 |
|
|
Provision for loan losses |
|
|
558 |
|
|
|
251 |
|
|
|
1,191 |
|
|
|
— |
|
|
|
2,000 |
|
|
Noninterest income |
|
|
19,167 |
|
|
|
53,562 |
|
|
|
28,862 |
|
|
|
8,764 |
|
|
|
110,355 |
|
|
Noninterest expense |
|
|
65,567 |
|
|
|
59,183 |
|
|
|
66,331 |
|
|
|
12,369 |
|
|
|
203,450 |
|
|
Income (loss) before taxes |
|
|
58,521 |
|
|
|
15,714 |
|
|
|
(5,510 |
) |
|
|
8,543 |
|
|
|
77,268 |
|
|
Income tax expense (benefit) |
|
|
8,144 |
|
|
|
2,187 |
|
|
|
(767 |
) |
|
|
1,189 |
|
|
|
10,753 |
|
|
Income (loss) from continuing operations |
|
$ |
50,377 |
|
|
$ |
13,527 |
|
|
$ |
(4,743 |
) |
|
$ |
7,354 |
|
|
$ |
66,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2018 |
|
|||||||||||||||||
|
|
|
Commercial Banking |
|
|
Institutional Banking |
|
|
Personal Banking |
|
|
Healthcare Services |
|
|
Total |
|
|||||
|
Net interest income |
|
$ |
100,423 |
|
|
$ |
19,361 |
|
|
$ |
31,988 |
|
|
$ |
10,036 |
|
|
$ |
161,808 |
|
|
Provision for loan losses |
|
|
46,662 |
|
|
|
308 |
|
|
|
1,030 |
|
|
|
— |
|
|
|
48,000 |
|
|
Noninterest income |
|
|
14,689 |
|
|
|
41,569 |
|
|
|
30,310 |
|
|
|
8,431 |
|
|
|
94,999 |
|
|
Noninterest expense |
|
|
65,037 |
|
|
|
48,175 |
|
|
|
59,112 |
|
|
|
11,997 |
|
|
|
184,321 |
|
|
Income before taxes |
|
|
3,413 |
|
|
|
12,447 |
|
|
|
2,156 |
|
|
|
6,470 |
|
|
|
24,486 |
|
|
Income tax benefit |
|
|
(135 |
) |
|
|
(492 |
) |
|
|
(85 |
) |
|
|
(256 |
) |
|
|
(968 |
) |
|
Income from continuing operations |
|
$ |
3,548 |
|
|
$ |
12,939 |
|
|
$ |
2,241 |
|
|
$ |
6,726 |
|
|
$ |
25,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2019 |
|
|||||||||||||||||
|
|
|
Commercial Banking |
|
|
Institutional Banking |
|
|
Personal Banking |
|
|
Healthcare Services |
|
|
Total |
|
|||||
|
Net interest income |
|
$ |
412,232 |
|
|
$ |
80,185 |
|
|
$ |
132,082 |
|
|
$ |
46,406 |
|
|
$ |
670,905 |
|
|
Provision for loan losses |
|
|
26,159 |
|
|
|
975 |
|
|
|
5,716 |
|
|
|
— |
|
|
|
32,850 |
|
|
Noninterest income |
|
|
81,609 |
|
|
|
195,932 |
|
|
|
112,717 |
|
|
|
36,512 |
|
|
|
426,770 |
|
|
Noninterest expense |
|
|
267,345 |
|
|
|
219,490 |
|
|
|
243,092 |
|
|
|
48,933 |
|
|
|
778,860 |
|
|
Income (loss) before taxes |
|
|
200,337 |
|
|
|
55,652 |
|
|
|
(4,009 |
) |
|
|
33,985 |
|
|
|
285,965 |
|
|
Income tax expense (benefit) |
|
|
29,679 |
|
|
|
8,245 |
|
|
|
(594 |
) |
|
|
5,035 |
|
|
|
42,365 |
|
|
Income (loss) from continuing operations |
|
$ |
170,658 |
|
|
$ |
47,407 |
|
|
$ |
(3,415 |
) |
|
$ |
28,950 |
|
|
$ |
243,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2018 |
|
|||||||||||||||||
|
|
|
Commercial Banking |
|
|
Institutional Banking |
|
|
Personal Banking |
|
|
Healthcare Services |
|
|
Total |
|
|||||
|
Net interest income |
|
$ |
380,266 |
|
|
$ |
66,585 |
|
|
$ |
125,045 |
|
|
$ |
38,550 |
|
|
$ |
610,446 |
|
|
Provision for loan losses |
|
|
63,841 |
|
|
|
1,335 |
|
|
|
5,574 |
|
|
|
— |
|
|
|
70,750 |
|
|
Noninterest income |
|
|
74,931 |
|
|
|
173,591 |
|
|
|
118,344 |
|
|
|
34,832 |
|
|
|
401,698 |
|
|
Noninterest expense |
|
|
253,740 |
|
|
|
189,708 |
|
|
|
225,406 |
|
|
|
48,946 |
|
|
|
717,800 |
|
|
Income before taxes |
|
|
137,616 |
|
|
|
49,133 |
|
|
|
12,409 |
|
|
|
24,436 |
|
|
|
223,594 |
|
|
Income tax expense |
|
|
16,824 |
|
|
|
6,007 |
|
|
|
1,517 |
|
|
|
2,986 |
|
|
|
27,334 |
|
|
Income from continuing operations |
|
$ |
120,792 |
|
|
$ |
43,126 |
|
|
$ |
10,892 |
|
|
$ |
21,450 |
|
|
$ |
196,260 |
|
The company has strategically aligned its operations into the following four reportable segments: Commercial Banking, Institutional Banking, Personal Banking, and Healthcare Services. Senior executive officers regularly evaluate business segment financial results produced by the company’s internal reporting system in deciding how to allocate resources and assess performance for individual business segments. The company’s reportable segments include certain corporate overhead, technology and service costs that are allocated based on methodologies that are applied consistently between periods. For comparability purposes, amounts in all periods are based on methodologies in effect at December 31, 2019.
Non-GAAP Financial Measures
|
Net operating income Non-GAAP reconciliations: |
|
UMB Financial Corporation |
|
|||||||||||||
|
(unaudited, dollars in thousands except per share data) |
|
|
|
|||||||||||||
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
Income from continuing operations (GAAP) |
|
$ |
66,515 |
|
|
$ |
25,454 |
|
|
$ |
243,600 |
|
|
$ |
196,260 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and divestiture expense |
|
|
100 |
|
|
|
5 |
|
|
|
268 |
|
|
|
2 |
|
|
Severance expense |
|
|
572 |
|
|
|
2,725 |
|
|
|
1,552 |
|
|
|
5,760 |
|
|
Tax-impact of adjustments (i) |
|
|
(149 |
) |
|
|
(606 |
) |
|
|
(404 |
) |
|
|
(1,279 |
) |
|
Total Non-GAAP adjustments (net of tax) |
|
|
523 |
|
|
|
2,124 |
|
|
|
1,416 |
|
|
|
4,483 |
|
|
Net operating income from continuing operations (Non-GAAP) |
|
$ |
67,038 |
|
|
$ |
27,578 |
|
|
$ |
245,016 |
|
|
$ |
200,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing operations - diluted (GAAP) |
|
$ |
1.35 |
|
|
$ |
0.52 |
|
|
$ |
4.96 |
|
|
$ |
3.94 |
|
|
Acquisition and divestiture expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Severance expense |
|
|
0.01 |
|
|
|
0.05 |
|
|
|
0.03 |
|
|
|
0.12 |
|
|
Tax-impact of adjustments (i) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.03 |
) |
|
Operating earnings per share from continuing operations - diluted (Non-GAAP) |
|
$ |
1.36 |
|
|
$ |
0.56 |
|
|
$ |
4.99 |
|
|
$ |
4.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
1.05 |
% |
|
|
0.46 |
% |
|
|
1.02 |
% |
|
|
0.93 |
% |
|
Return on average equity |
|
|
10.15 |
|
|
|
4.57 |
|
|
|
9.94 |
|
|
|
8.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return on average assets |
|
|
1.06 |
% |
|
|
0.50 |
% |
|
|
1.03 |
% |
|
|
0.96 |
% |
|
Operating return on average equity |
|
|
10.23 |
|
|
|
4.95 |
|
|
|
9.99 |
|
|
|
9.15 |
|
(i) Calculated using the company’s marginal tax rate of 22.2 percent.
|
Operating noninterest expense and operating efficiency ratio Non-GAAP reconciliations: |
|
UMB Financial Corporation |
|
|||||||||||||
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
Noninterest expense |
|
$ |
203,450 |
|
|
$ |
184,321 |
|
|
$ |
778,860 |
|
|
$ |
717,800 |
|
|
Adjustments to arrive at operating noninterest expense (pre-tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and divestiture expense |
|
|
100 |
|
|
|
5 |
|
|
|
268 |
|
|
|
2 |
|
|
Severance expense |
|
|
572 |
|
|
|
2,725 |
|
|
|
1,552 |
|
|
|
5,760 |
|
|
Total Non-GAAP adjustments (pre-tax) |
|
|
672 |
|
|
|
2,730 |
|
|
|
1,820 |
|
|
|
5,762 |
|
|
Operating noninterest expense (Non-GAAP) |
|
$ |
202,778 |
|
|
$ |
181,591 |
|
|
$ |
777,040 |
|
|
$ |
712,038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense |
|
$ |
203,450 |
|
|
$ |
184,321 |
|
|
$ |
778,860 |
|
|
$ |
717,800 |
|
|
Less: Amortization of other intangibles |
|
|
1,593 |
|
|
|
1,332 |
|
|
|
5,506 |
|
|
|
5,764 |
|
|
Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A) |
|
$ |
201,857 |
|
|
$ |
182,989 |
|
|
$ |
773,354 |
|
|
$ |
712,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating noninterest expense |
|
$ |
202,778 |
|
|
$ |
181,591 |
|
|
$ |
777,040 |
|
|
$ |
712,038 |
|
|
Less: Amortization of other intangibles |
|
|
1,593 |
|
|
|
1,332 |
|
|
|
5,506 |
|
|
|
5,764 |
|
|
Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B) |
|
$ |
201,185 |
|
|
$ |
180,259 |
|
|
$ |
771,534 |
|
|
$ |
706,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
172,363 |
|
|
$ |
161,808 |
|
|
$ |
670,905 |
|
|
$ |
610,446 |
|
|
Noninterest income |
|
|
110,355 |
|
|
|
94,999 |
|
|
|
426,770 |
|
|
|
401,698 |
|
|
Less: Gains on sales of securities available for sale, net |
|
|
755 |
|
|
|
— |
|
|
|
3,218 |
|
|
|
578 |
|
|
Total Non-GAAP Revenue (denominator A) |
|
$ |
281,963 |
|
|
$ |
256,807 |
|
|
$ |
1,094,457 |
|
|
$ |
1,011,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (numerator A/denominator A) |
|
|
71.59 |
% |
|
|
71.26 |
% |
|
|
70.66 |
% |
|
|
70.39 |
% |
|
Operating efficiency ratio (Non-GAAP) (numerator B/denominator A) |
|
|
71.35 |
|
|
|
70.19 |
|
|
|
70.49 |
|
|
|
69.82 |
|
