UMB Financial : Reports First Quarter Net Income of $106.0 Million – Form 8-K







UMB Financial Corporation Reports First Quarter Net Income of $106.0 Million

First Quarter 2022 Financial Highlights

GAAP net income of $106.0 million, or $2.17 per diluted share; net operating income (a non-GAAP financial measure) of $106.1 million, or $2.17 per diluted share.

Pre-tax, pre-provision income on a fully tax equivalent basis (PTPP-FTE, a non-GAAP financial measure) of $125.7 million, an increase of 10.9% compared to the fourth quarter of 2021.

Excluding Paycheck Protection Program (PPP) balances, average loans increased 19.1% on a linked-quarter, annualized basis.

Quarterly average deposits grew 21.5% compared to the first quarter of 2021.

Noninterest income increased 13.6% as compared to the first quarter of 2021, equal to 37.0% of total revenue.

Credit quality remained strong, with net charge-offs of just 0.20% of average loans, consistent with the company’s historical performance.

KANSAS CITY, Mo. (April 26, 2022) – UMB Financial Corporation (Nasdaq: UMBF), afinancial services company, announced net income for the first quarter of 2022 of $106.0 million, or $2.17 per diluted share, compared to $78.5 million, or $1.61 per diluted share, in the fourth quarter of 2021 (linked quarter) and $92.6 million, or $1.91 per diluted share, in the first quarter of 2021.

Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $106.1 million, or $2.17 per diluted share, for the first quarter of 2022, compared to $78.9 million, or $1.62 per diluted share, for the linked quarter and $92.8 million, or $1.91 per diluted share, for the first quarter of 2021. PTPP-FTE, a non-GAAP measure reconciled to the components of net income before taxes, the nearest comparable GAAP measure, later in this release, was $125.7 million, or $2.57 per diluted share, for the first quarter of 2022, compared to $113.4 million, or $2.32 per diluted share, for the linked quarter, and $108.7 million, or $2.24 per diluted share, for the first quarter of 2021. These PTPP-FTE results represent increases of 10.9% on a linked-quarter basis and 15.6% compared to the first quarter of 2021.

“Our results for the first quarter of 2022 reflect the team’s continued execution of our differentiated business model, with robust growth on both sides of our balance sheet, strong asset quality metrics, and sustained momentum in our fee income businesses,” said Mariner Kemper, chairman, president and chief executive officer. “Compared to the first quarter of 2021, average loans excluding PPP balances and average deposits increased 15.6% and 21.5%, respectively. Together with a 13.6% increase in fee income, our first quarter revenues increased 10.2% compared to the prior period. In addition, our results benefited from a provision release of $6.5 million in the first quarter, driven by favorable portfolio metrics and the improving macro-economic outlook. I am also extremely proud of the team’s continued commitment to the communities we serve, which you may read about in our 2022 corporate citizenship and ESG report.”

Summary of quarterly financial results

UMB Financial Corporation

(unaudited, dollars in thousands, except per share data)

Q1

Q4

Q1

2022

2021

2021

Net income (GAAP)

$

105,963

$

78,496

$

92,643

Earnings per share (diluted)

2.17

1.61

1.91

Pre-tax, pre-provision income (Non-GAAP)

119,255

106,869

102,066

Pre-tax, pre-provision earnings per share (diluted)

2.44

2.19

2.10

Pre-tax, pre-provision income – FTE (Non-GAAP)

125,654

113,352

108,744

Pre-tax, pre-provision earnings per share – FTE (diluted)

2.57

2.32

2.24

Net operating income (Non-GAAP)

106,073

78,921

92,780

Operating earnings per share (diluted)

2.17

1.62

1.91

GAAP

Return on average assets

1.10

%

0.82

%

1.14

%

Return on average equity

14.65

9.91

12.56

Efficiency ratio

63.98

67.78

66.46

Non-GAAP

Operating return on average assets

1.10

%

0.82

%

1.14

%

Operating return on average equity

14.67

9.97

12.58

Operating efficiency ratio

63.93

67.61

66.40

Summary of revenue

UMB Financial Corporation

(unaudited, dollars in thousands)

Q1

Q4

Q1

CQ vs.

CQ vs.

2022

2021

2021

LQ

PY

Net interest income

$

210,355

$

210,570

$

194,115

$

(215

)

$

16,240

Noninterest income:

Trust and securities processing

59,528

58,515

54,834

1,013

4,694

Trading and investment banking

5,440

6,977

9,356

(1,537

)

(3,916

)

Service charges on deposit accounts

24,642

21,607

21,976

3,035

2,666

Insurance fees and commissions

259

359

420

(100

)

(161

)

Brokerage fees

3,456

3,346

3,334

110

122

Bankcard fees

16,635

16,642

14,673

(7

)

1,962

Investment securities (losses) gains, net

(522

)

1,448

(8,336

)

(1,970

)

7,814

Other

14,240

9,888

12,640

4,352

1,600

Total noninterest income

$

123,678

$

118,782

$

108,897

$

4,896

$

14,781

Total revenue

$

334,033

$

329,352

$

303,012

$

4,681

$

31,021

Net interest income (FTE)

$

216,754

$

217,053

$

200,793

Net interest margin (FTE)

2.35

%

2.37

%

2.59

%

Total noninterest income as a % of total revenue

37.03

36.07

35.94

Net interest income

Net interest income totaled $210.4 million, which is flat as compared to the linked quarter. The benefit from growth in average earning assets was partially offset by $4.1 million in reduced income from PPP loans. Average earning assets increased $1.2 billion, or 3.2%, driven by loan

growth and an increase in investment securities purchases,while noninterest-bearing deposits increased $900.7 million, or 6.9% and interest-bearing liabilities increased $406.1 million, or 1.9%.

Net interest margin for the first quarter was 2.35%, a decrease of two basis points from the linked quarter, driven by a decline in loan yields primarily due to $4.1 million in reduced income from PPP loans. Earning asset yields declined two basis points from the linked quarter, driven by a twenty-basis-point decline in loan yields and mix changes. The cost of interest-bearing liabilities increased one basis point to 0.21%. Net interest spread decreased three basis points to 2.26% from the linked quarter and was 24 basis points lower than the first quarter of 2021.

On a year-over-year basis, net interest income increased $16.2 million, or 8.4%, driven by a $2.8 billion, or 26.2% increase in average securities, coupled with a $1.1 billion, or 6.9%, increase in average loans. These increases were driven by organic loan growth and excess liquidity.

Average deposits increased 3.0% on a linked-quarter basis and 21.5% compared to the first quarter of 2021. Average noninterest-bearing demand deposit balances increased 6.9% on a linked-quarter basis and 43.8% compared to the first quarter of 2021.

Noninterest income

First quarter 2022 noninterest income increased $4.9 million, or 4.1%, on a linked-quarter basis, largely due to:

o

An increase of $3.0 million in service charges on deposits primarily driven by increased healthcare income related to customer transfer and conversion fees.

o

A gain of $2.4 million on the sale of the company’s factoring loan portfolio during the first quarter of 2022, recorded in other income.

o

An increase of $1.9 million in derivative income and $0.8 million in company-owned life insurance income, both recorded in other income. The increase in company-owned life insurance is offset by a proportionate increase in deferred compensation expense as noted below.

o

Increases of $0.9 million in corporate trust income and $0.4 million in fund services income, both recorded in trust and securities processing.

o

These increases were partially offset by a decrease of $2.7 million in gains on sales of available-for-sale securities, recorded in investment securities gains, and a decrease of $1.5 million in trading and investment banking income driven by decreased trading volume.

Compared to the prior year, noninterest income in the first quarter of 2022 increased $14.8 million, or 13.6%, primarily driven by:

o

An increase of $7.8 million in investment securities gains, primarily due to mark-to-market valuations on the company’s equity investment in TTCF.

o

Increases of $5.0 million in derivative income, recorded in other income, and $2.0 million in bankcard income, due to higher interchange revenue.

o

An increase of $4.7 million in trust and securities processing income, primarily driven by increases of $6.4 million and $1.7 million in fund services and corporate trust income, respectively. These increases were partially offset by a decrease of $3.4 million in trust income.

o

An increase of $2.7 million in service charges on deposits driven by increased healthcare income related to customer transfer and conversion fees and increased corporate service charge income.

o

These increases were partially offset by decreases of $3.9 million in trading and investment banking income driven by lower trading volume, $2.1 million in gains on sale of other assets, and $1.2 million in company-owned life insurance income, both recorded

in other income. The decrease in company-owned life insurance is offset by a proportionate decrease in deferred compensation expense as noted below.

Noninterest expense

Summary of noninterest expense

UMB Financial Corporation

(unaudited, dollars in thousands)

Q1

Q4

Q1

CQ vs.

CQ vs.

2022

2021

2021

LQ

PY

Salaries and employee benefits

$

130,634

$

131,360

$

127,681

$

(726

)

$

2,953

Occupancy, net

12,232

10,907

11,935

1,325

297

Equipment

18,164

19,886

19,615

(1,722

)

(1,451

)

Supplies and services

3,262

4,646

3,492

(1,384

)

(230

)

Marketing and business development

4,932

6,528

2,345

(1,596

)

2,587

Processing fees

18,443

19,083

15,417

(640

)

3,026

Legal and consulting

6,911

10,858

5,755

(3,947

)

1,156

Bankcard

6,567

4,865

4,956

1,702

1,611

Amortization of other intangible assets

1,071

1,110

1,380

(39

)

(309

)

Regulatory fees

3,482

3,393

2,546

89

936

Other

9,080

9,847

5,824

(767

)

3,256

Total noninterest expense

$

214,778

$

222,483

$

200,946

$

(7,705

)

$

13,832

Noninterest expense for the first quarter of 2022 was $214.8 million, a decrease of $7.7 million, or 3.5%, from the linked quarter and an increase of $13.8 million, or 6.9%, from the first quarter of 2021.

The linked-quarter decrease in noninterest expense was driven by:

o

A decrease of $11.5 million in salaries and bonus expense, recorded in salaries and employee benefits, driven primarily by increased incentive compensation tied to business growth and higher overall company performance during the fourth quarter of 2021.

o

Decreases of $3.9 million in legal and consulting expense and $1.6 million in marketing and business development due to the timing of multiple projects.

o

Decreases of $1.7 million in equipment expense driven by reduced software expense and $1.4 million in supplies expense primarily due to decreased computer hardware purchases.

o

These decreases were partially offset by increases of $10.7 million in employee benefits expense driven by a seasonal increase of $9.3 million in payroll taxes, insurance, and 401(k) expense recognized in the first quarter, as well as an increase of $1.5 million in deferred compensation expense, all recorded in salaries and employee benefits. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above. Additionally, there was an increase of $1.7 million in bankcard processing expense.

The year-over-year increase in noninterest expense was driven by:

o

An increase of $3.0 million in processing fees due to the timing of multiple software projects.

o

Increases of $2.6 million in marketing and business development and $1.2 million in legal and consulting expense due to the timing of multiple projects.

o

Increases of $2.4 million in salaries and bonus expense and $1.3 million in payroll taxes, insurance, and 401(k) expense, both recorded in salaries and employee benefits, primarily driven by increased company performance in the first quarter of 2022.

o

An increase of $1.6 million in bankcard expense primarily due to higher processing expense and bankcard fraud losses.

o

Increases of $1.2 million in operational losses, and $0.9 million in derivative-related expense, both recorded in other expense.

o

These increases were partially offset by a decrease of $1.2 million in deferred compensation expense, recorded in salaries and employee benefits. The decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.

Income taxes

The company’s effective tax rate was 15.7% for the three months ended March 31, 2022, compared to 15.4% for the same period in 2021.

Balance sheet

Average total assets for the first quarter of 2022 were $39.2 billion compared to $38.1 billion for the linked quarter and $33.1 billion for the same period in 2021.

Summary of average loans and leases – QTD Average

UMB Financial Corporation

(unaudited, dollars in thousands)

Q1

Q4

Q1

CQ vs.

CQ vs.

2022

2021

2021

LQ

PY

Commercial and industrial

$

7,409,623

$

6,994,935

$

7,139,101

$

414,688

$

270,522

Specialty lending

463,793

484,552

502,585

(20,759

)

(38,792

)

Commercial real estate

6,338,160

6,218,138

5,971,047

120,022

367,113

Consumer real estate

2,339,050

2,272,498

1,970,767

66,552

368,283

Consumer

135,942

107,841

117,095

28,101

18,847

Credit cards

399,857

414,267

362,051

(14,410

)

37,806

Leases and other

274,652

200,417

183,447

74,235

91,205

Total loans

$

17,361,077

$

16,692,648

$

16,246,093

$

668,429

$

1,114,984

Average loans for the first quarter of 2022 increased 4.0% on a linked-quarter basis and 6.9% compared to the first quarter of 2021. Excluding PPP balances, average loans increased 4.8% on a linked-quarter basis and increased 15.6% as compared to the first quarter of 2021.

Summary of average securities – QTD Average

UMB Financial Corporation

(unaudited, dollars in thousands)

Q1

Q4

Q1

CQ vs.

CQ vs.

2022

2021

2021

LQ

PY

Securities available for sale:

U.S. Treasury

$

176,476

$

69,398

$

36,032

$

107,078

$

140,444

U.S. Agencies

125,017

93,619

95,494

31,398

29,523

Mortgage-backed

7,317,968

7,395,528

5,599,987

(77,560

)

1,717,981

State and political subdivisions

3,170,757

3,437,841

3,552,945

(267,084

)

(382,188

)

Corporates

337,526

236,743

83,271

100,783

254,255

Collateralized loan obligations

150,134

38,099

112,035

150,134

Total securities available for sale

$

11,277,878

$

11,271,228

$

9,367,729

$

6,650

$

1,910,149

Securities held to maturity:

U.S. Agencies

$

133

$

$

$

133

$

133

Mortgage-backed

708,075

105,622

602,453

708,075

State and political subdivisions

1,185,609

1,089,587

1,023,418

96,022

162,191

Total securities held to maturity

$

1,893,817

$

1,195,209

$

1,023,418

$

698,608

$

870,399

Trading securities

20,836

29,426

17,540

(8,590

)

3,296

Other securities

329,611

299,829

308,297

29,782

21,314

Total securities

$

13,522,142

$

12,795,692

$

10,716,984

$

726,450

$

2,805,158

Average total securities increased 5.7% on a linked-quarter basis and 26.2% compared to the first quarter of 2021.

In March 2022, securities with an amortized cost of $3.0 billion and a fair value of $2.9 billion were transferred from the available-for-sale classification to the held-to-maturity classification in order to reduce volatility in the company’s equity as a result of higher interest rates.

Summary of average deposits – QTD Average

UMB Financial Corporation

(unaudited, dollars in thousands)

Q1

Q4

Q1

CQ vs.

CQ vs.

2022

2021

2021

LQ

PY

Deposits:

Noninterest-bearing demand

$

14,025,585

$

13,124,918

$

9,753,680

$

900,667

$

4,271,905

Interest-bearing demand and savings

17,852,721

17,809,817

16,302,880

42,904

1,549,841

Time deposits

701,973

701,836

769,464

137

(67,491

)

Total deposits

$

32,580,279

$

31,636,571

$

26,826,024

$

943,708

$

5,754,255

Noninterest bearing deposits as % of total

43.05

%

41.49

%

36.36

%

Average deposits increased 3.0% on a linked-quarter basis and 21.5% compared to the first quarter of 2021.

Average noninterest-bearing demand deposits increased 6.9% on a linked-quarter basis to $14.0 billion.

Capital

Capital information

UMB Financial Corporation

(unaudited, dollars in thousands, except per share data)

March 31, 2022

December 31, 2021

March 31, 2021

Total equity

$

2,748,405

$

3,145,424

$

2,958,239

Book value per common share

56.78

64.95

61.24

Tangible book value per common share

52.69

61.05

57.26

Regulatory capital:

Common equity Tier 1 capital

$

2,938,100

$

2,885,576

$

2,660,102

Tier 1 capital

2,938,100

2,885,576

2,660,102

Total capital

3,369,866

3,324,284

3,102,333

Regulatory capital ratios:

Common equity Tier 1 capital ratio

11.81

%

12.05

%

12.25

%

Tier 1 risk-based capital ratio

11.81

12.05

12.25

Total risk-based capital ratio

13.55

13.88

14.28

Tier 1 leverage ratio

7.53

7.61

8.08

At March 31, 2022, 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)

Q1

Q4

Q3

Q2

Q1

2022

2021

2021

2021

2021

Net charge-offs – Total loans

$

8,378

$

8,061

$

3,127

$

28,374

$

5,310

Net loan charge-offs as a % of total average loans

0.20

%

0.19

%

0.07

%

0.68

%

0.13

%

Loans over 90 days past due

$

3,600

$

2,633

$

2,319

$

1,265

$

1,773

Loans over 90 days past due as a % of total loans

0.02

%

0.02

%

0.01

%

0.01

%

0.01

%

Nonaccrual and restructured loans

$

110,356

$

92,300

$

96,536

$

58,219

$

76,706

Nonaccrual and restructured loans as a % of total loans

0.62

%

0.54

%

0.59

%

0.34

%

0.46

%

Provision for credit losses

$

(6,500

)

$

8,500

$

(5,000

)

$

24,000

$

(7,500

)

Provision for credit losses for the first quarter decreased $15.0 million from the linked quarter and increased $1.0 million from the first quarter of 2021. Provision expense in the first quarter of 2022 represented a release of the Allowance for Credit Losses (ACL) based on positive macro-economic data and portfolio credit metrics.

Net charge-offs for the first quarter totaled $8.4 million, or 0.20%, of average loans, compared to $8.1 million, or 0.19%, of average loans in the linked quarter, and $5.3 million, or 0.13%, of average loans for the first quarter of 2021.

Dividend Declaration and Share Repurchase Authorization

At the company’s quarterly board meeting, the Board of Directors declared a $0.37 per share quarterly cash dividend, payable on July 1, 2022, to shareholders of record at the close of business on June 10, 2022.

As in prior years, the Board also approved the repurchase of up to 2,000,000 shares of the company’s common stock. Share repurchases may occur from time to time at any point until the regular meeting of the Board that immediately follows the 2023 annual meeting of the company’s shareholders. Shares acquired under the repurchase program may be available for reissuance or resale, including in connection with the company’s compensation plans and dividend reinvestment plan. Under the repurchase program, the company may acquire the shares from time to time in open market or privately negotiated transactions, at the discretion of management.

Conference Call

The company plans to host a conference call to discuss its first quarter 2022 earnings results on Wednesday, April 27, 2022, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 844-200-6205 or (international) 929-526-1599 and requesting to join the UMB Financial call with access code 758098. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 1Q 2022 Conference Call

A replay of the conference call may be heard through May 11, 2022 by calling (toll-free)

866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 176268. 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, operating earnings per share – diluted (operating EPS), operating return on average equity (operating ROE), operating return on average assets (operating ROA), operating noninterest expense, operating efficiency ratio, pre-tax, pre-provision income, pre-tax, pre-provision earnings per share – diluted (PTPP EPS), pre-tax, pre-provision income on a fully tax equivalent basis (PTPP-FTE), pre-tax, pre-provision FTE earnings per share – diluted (PTPP-FTE

EPS), tangible shareholders’ equity, and tangible book value per share, 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, operating efficiency ratio, PTPP, PTPP EPS, PTPP-FTE, PTPP-FTE EPS, tangible shareholders’ equity, and tangible book value per share – 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-, severance-, and COVID-19 related items that management does not believe reflect the company’s fundamental operating performance. COVID-19 related expense includes hazard pay for branch associates, computer hardware expense to support associates working remotely, and additional equipment, cleaning, and janitorial supplies to protect the well-being of our associates and customers while on the company’s premises.

Net operating income for the relevant period is defined as GAAP net income, adjusted to reflect the impact of excluding expenses related to acquisitions, severance expense, COVID-19 related 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, divided by the company’s average total shareholders’ equity for the relevant period. Operating ROA is calculated as net operating income, 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).

PTPP income for the relevant period is defined as GAAP net income, adjusted to reflect the impact of excluding income tax and provision expenses.

PTPP-FTE for the relevant period is defined as GAAP net interest income on a fully tax equivalent basis plus noninterest income, less noninterest expense.

Tangible shareholders’ equity for the relevant period is defined as GAAP shareholders’ equity, net of intangible assets. Tangible book value per share is defined as tangible shareholders’ equity divided by the Company’s total shares outstanding.

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, 2021, 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). In addition to such factors that have been disclosed previously: macroeconomic and other challenges and uncertainties related to the COVID-19 pandemic, such as the impacts to the U.S. and global economies; and impacts related to or resulting from Russia’s military action in Ukraine, such as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements.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, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas. As the company’s reach continues to grow, it also serves business clients nationwide and institutional clients in several countries. For more information, visit UMB.com, UMB Blog,UMB Facebook and UMB LinkedIn, or follow us on Twitter at @UMBBank.

Consolidated Balance Sheets

UMB Financial Corporation

(unaudited, dollars in thousands)

March 31,

2022

2021

ASSETS

Loans

$

17,731,700

$

16,497,385

Allowance for credit losses on loans

(179,288

)

(202,814

)

Net loans

17,552,412

16,294,571

Loans held for sale

384

10,275

Securities:

Available for sale

8,550,093

9,753,392

Held to maturity, net of allowance for credit losses

4,600,187

1,039,711

Trading securities

17,059

29,099

Other securities

332,123

298,209

Total securities

13,499,462

11,120,411

Federal funds sold and resell agreements

1,319,809

1,629,813

Interest-bearing due from banks

6,355,941

3,860,763

Cash and due from banks

357,772

387,230

Premises and equipment, net

264,519

286,068

Accrued income

127,139

131,533

Goodwill

182,225

174,518

Other intangibles, net

15,690

17,793

Other assets

930,389

756,414

Total assets

$

40,605,742

$

34,669,389

LIABILITIES

Deposits:

Noninterest-bearing demand

$

15,946,738

$

11,604,415

Interest-bearing demand and savings

17,828,794

16,011,812

Time deposits under $250,000

399,467

457,290

Time deposits of $250,000 or more

187,566

207,275

Total deposits

34,362,565

28,280,792

Federal funds purchased and repurchase agreements

2,840,535

2,759,818

Long-term debt

272,036

270,074

Accrued expenses and taxes

178,130

239,001

Other liabilities

204,071

161,465

Total liabilities

37,857,337

31,711,150

SHAREHOLDERS’ EQUITY

Common stock

55,057

55,057

Capital surplus

1,109,585

1,093,667

Retained earnings

2,265,129

1,968,318

Accumulated other comprehensive (loss) income, net

(343,128

)

169,197

Treasury stock

(338,238

)

(328,000

)

Total shareholders’ equity

2,748,405

2,958,239

Total liabilities and shareholders’ equity

$

40,605,742

$

34,669,389

Consolidated Statements of Income

UMB Financial Corporation

(unaudited, dollars in thousands except share and per share data)

Three Months Ended

March 31,

2022

2021

INTEREST INCOME

Loans

$

149,470

$

150,170

Securities:

Taxable interest

43,382

27,162

Tax-exempt interest

23,855

24,964

Total securities income

67,237

52,126

Federal funds and resell agreements

2,450

2,821

Interest-bearing due from banks

2,457

703

Trading securities

185

159

Total interest income

221,799

205,979

INTEREST EXPENSE

Deposits

6,173

6,798

Federal funds and repurchase agreements

2,148

1,886

Other

3,123

3,180

Total interest expense

11,444

11,864

Net interest income

210,355

194,115

Provision for credit losses

(6,500

)

(7,500

)

Net interest income after provision for credit losses

216,855

201,615

NONINTEREST INCOME

Trust and securities processing

59,528

54,834

Trading and investment banking

5,440

9,356

Service charges on deposit accounts

24,642

21,976

Insurance fees and commissions

259

420

Brokerage fees

3,456

3,334

Bankcard fees

16,635

14,673

Investment securities losses, net

(522

)

(8,336

)

Other

14,240

12,640

Total noninterest income

123,678

108,897

NONINTEREST EXPENSE

Salaries and employee benefits

130,634

127,681

Occupancy, net

12,232

11,935

Equipment

18,164

19,615

Supplies and services

3,262

3,492

Marketing and business development

4,932

2,345

Processing fees

18,443

15,417

Legal and consulting

6,911

5,755

Bankcard

6,567

4,956

Amortization of other intangible assets

1,071

1,380

Regulatory fees

3,482

2,546

Other

9,080

5,824

Total noninterest expense

214,778

200,946

Income before income taxes

125,755

109,566

Income tax expense

19,792

16,923

NET INCOME

$

105,963

$

92,643

PER SHARE DATA

Net income – basic

$

2.19

$

1.93

Net income – diluted

2.17

1.91

Dividends

0.37

0.32

Weighted average shares outstanding – basic

48,406,840

48,096,643

Weighted average shares outstanding – diluted

48,832,177

48,520,752

Consolidated Statements of Comprehensive Income

UMB Financial Corporation

(unaudited, dollars in thousands)

Three Months Ended

March 31,

2022

2021

Net income

$

105,963

$

92,643

Other comprehensive loss, before tax:

Unrealized gains and losses on debt securities:

Change in unrealized holding gains and losses, net

(622,910

)

(199,038

)

Less: Reclassification adjustment for gains included in net income

(2,720

)

Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity

582

Change in unrealized gains and losses on debt securities

(622,328

)

(201,758

)

Unrealized gains and losses on derivative hedges:

Change in unrealized gains and losses on derivative hedges, net

4,680

6,503

Less: Reclassification adjustment for gains included in net income

(851

)

(842

)

Change in unrealized gains and losses on derivative hedges

3,829

5,661

Other comprehensive loss, before tax

(618,499

)

(196,097

)

Income tax benefit

149,057

46,954

Other comprehensive loss

(469,442

)

(149,143

)

Comprehensive loss

$

(363,479

)

$

(56,500

)

Consolidated Statements of Shareholders’ Equity

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

Common

Stock

Capital

Surplus

Retained

Earnings

Accumulated Other Comprehensive Income (Loss)

Treasury

Stock

Total

Balance – January 1, 2021

$

55,057

$

1,090,450

$

1,891,246

$

318,340

$

(338,145

)

$

3,016,948

Total comprehensive income (loss)

92,643

(149,143

)

(56,500

)

Dividends ($0.32 per share)

(15,571

)

(15,571

)

Purchase of treasury stock

(4,027

)

(4,027

)

Issuances of equity awards, net of forfeitures

(4,043

)

4,738

695

Recognition of equity-based compensation

4,457

4,457

Sale of treasury stock

65

86

151

Exercise of stock options

2,738

9,348

12,086

Balance – March 31, 2021

$

55,057

$

1,093,667

$

1,968,318

$

169,197

$

(328,000

)

$

2,958,239

Balance – January 1, 2022

$

55,057

$

1,110,520

$

2,176,998

$

126,314

$

(323,465

)

$

3,145,424

Total comprehensive income (loss)

105,963

(469,442

)

(363,479

)

Dividends ($0.37 per share)

(17,832

)

(17,832

)

Purchase of treasury stock

(22,487

)

(22,487

)

Issuances of equity awards, net of forfeitures

(6,630

)

7,309

679

Recognition of equity-based compensation

5,485

5,485

Sale of treasury stock

84

54

138

Exercise of stock options

126

351

477

Balance – March 31, 2022

$

55,057

$

1,109,585

$

2,265,129

$

(343,128

)

$

(338,238

)

$

2,748,405

Average Balances / Yields and Rates

UMB Financial Corporation

(tax – equivalent basis)

(unaudited, dollars in thousands)

Three Months Ended March 31,

2022

2021

Average

Average

Average

Average

Balance

Yield/Rate

Balance

Yield/Rate

Assets

Loans, net of unearned interest

$

17,361,077

3.49

%

$

16,246,093

3.75

%

Securities:

Taxable

9,461,567

1.86

6,398,188

1.72

Tax-exempt

4,039,739

3.03

4,301,256

2.98

Total securities

13,501,306

2.21

10,699,444

2.23

Federal funds and resell agreements

1,265,776

0.78

1,643,894

0.70

Interest bearing due from banks

5,320,360

0.19

2,823,771

0.10

Trading securities

20,836

4.38

17,540

4.30

Total earning assets

37,469,355

2.47

31,430,742

2.74

Allowance for credit losses

(198,217

)

(219,672

)

Other assets

1,882,376

1,841,224

Total assets

$

39,153,514

$

33,052,294

Liabilities and Shareholders’ Equity

Interest-bearing deposits

$

18,554,694

0.13

%

$

17,072,344

0.16

%

Federal funds and repurchase agreements

2,973,785

0.29

2,519,373

0.30

Borrowed funds

271,731

4.66

269,576

4.78

Total interest-bearing liabilities

21,800,210

0.21

19,861,293

0.24

Noninterest-bearing demand deposits

14,025,585

9,753,680

Other liabilities

394,714

445,777

Shareholders’ equity

2,933,005

2,991,544

Total liabilities and shareholders’ equity

$

39,153,514

$

33,052,294

Net interest spread

2.26

%

2.50

%

Net interest margin

2.35

2.59

Business Segment Information

UMB Financial Corporation

(unaudited, dollars in thousands)

Three Months Ended March 31, 2022

Commercial Banking

Institutional Banking

Personal Banking

Total

Net interest income

$

145,002

$

26,253

$

39,100

$

210,355

Provision for credit losses

(7,040

)

151

389

(6,500

)

Noninterest income

26,707

73,262

23,709

123,678

Noninterest expense

79,596

75,592

59,590

214,778

Income before taxes

99,153

23,772

2,830

125,755

Income tax expense

15,606

3,741

445

19,792

Net income

$

83,547

$

20,031

$

2,385

$

105,963

Three Months Ended March 31, 2021

Commercial Banking

Institutional Banking

Personal Banking

Total

Net interest income

$

136,410

$

22,138

$

35,567

$

194,115

Provision for credit losses

(8,178

)

220

458

(7,500

)

Noninterest income

8,176

68,421

32,300

108,897

Noninterest expense

69,725

71,282

59,939

200,946

Income before taxes

83,039

19,057

7,470

109,566

Income tax expense

12,826

2,943

1,154

16,923

Net income

$

70,213

$

16,114

$

6,316

$

92,643

The company has strategically aligned its operations into the following three reportable segments: Commercial Banking, Institutional Banking, and Personal Banking. 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 March 31, 2022.

Non-GAAP Financial Measures

Net operating income Non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

Three Months Ended March 31,

2022

2021

Net income (GAAP)

$

105,963

$

92,643

Adjustments:

Acquisition expense

Severance expense

145

21

COVID-19 related expense

155

Tax-impact of adjustments (i)

(35

)

(39

)

Total Non-GAAP adjustments (net of tax)

110

137

Net operating income (Non-GAAP)

$

106,073

$

92,780

Earnings per share – diluted (GAAP)

$

2.17

$

1.91

Acquisition expense

Severance expense

COVID-19 related expense

Tax-impact of adjustments (i)

Operating earnings per share – diluted (Non-GAAP)

$

2.17

$

1.91

GAAP

Return on average assets

1.10

%

1.14

%

Return on average equity

14.65

12.56

Non-GAAP

Operating return on average assets

1.10

%

1.14

%

Operating return on average equity

14.67

12.58

(i) Calculated using the company’s marginal tax rate of 24.0% in 2022 and 22.2% in 2021.

Operating noninterest expense and operating efficiency ratio Non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands)

Three Months Ended March 31,

2022

2021

Noninterest expense

$

214,778

$

200,946

Adjustments to arrive at operating noninterest expense (pre-tax):

Acquisition expense

Severance expense

145

21

COVID-19 related expense

155

Total Non-GAAP adjustments (pre-tax)

145

176

Operating noninterest expense (Non-GAAP)

$

214,633

$

200,770

Noninterest expense

$

214,778

$

200,946

Less: Amortization of other intangibles

1,071

1,380

Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A)

$

213,707

$

199,566

Operating noninterest expense

$

214,633

$

200,770

Less: Amortization of other intangibles

1,071

1,380

Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B)

$

213,562

$

199,390

Net interest income

$

210,355

$

194,115

Noninterest income

123,678

108,897

Less: Gains on sales of securities available for sale, net

2,720

Total Non-GAAP Revenue (denominator A)

$

334,033

$

300,292

Efficiency ratio (numerator A/denominator A)

63.98

%

66.46

%

Operating efficiency ratio (Non-GAAP) (numerator B/denominator A)

63.93

66.40

Pre-tax, pre-provision income non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

Three Months Ended March 31,

2022

2021

Net income before taxes (GAAP)

$

125,755

$

109,566

Adjustments:

Provision for credit losses

(6,500

)

(7,500

)

Pre-tax, pre-provision income (Non-GAAP)

$

119,255

$

102,066

Pre-tax earnings per share – diluted (GAAP)

$

2.58

$

2.26

Provision for credit losses

(0.14

)

(0.16

)

Pre-tax, pre-provision earnings per share – diluted (Non-GAAP)

$

2.44

$

2.10

Pre-tax, pre-provision income – FTE Non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

Three Months Ended March 31,

2022

2021

Net interest income

$

210,355

$

194,115

Adjustments to arrive at net interest income – FTE:

Tax equivalent interest

6,399

6,678

Net interest income – FTE

$

216,754

$

200,793

Noninterest income

123,678

108,897

Less: Noninterest expense

214,778

200,946

Pre-tax, pre-provision income – FTE (Non-GAAP)

$

125,654

$

108,744

Net interest income earnings per share – diluted

$

4.31

$

4.00

Tax equivalent interest

0.13

0.14

Net interest income – FTE

4.44

4.14

Noninterest income

2.53

2.24

Less: Noninterest expense

4.40

4.14

Pre-tax, pre-provision income – FTE earnings per share – diluted (Non-GAAP)

$

2.57

$

2.24

Tangible book value non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands except share and per share data)

As of March 31,

2022

2021

Total shareholders’ equity (GAAP)

$

2,748,405

$

2,958,239

Less: Intangible assets

Goodwill

182,225

174,518

Other intangibles, net

15,690

17,793

Total intangibles, net

197,915

192,311

Total tangible shareholders’ equity (Non-GAAP)

$

2,550,490

$

2,765,928

Total shares outstanding

48,403,262

48,302,634

Ratio of total shareholders’ equity (book value) per share

$

56.78

$

61.24

Ratio of total tangible shareholders’ equity (tangible book value) per share (Non-GAAP)

52.69

57.26

Disclaimer

UMB Financial Corporation published this content on 26 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2022 21:24:06 UTC.

Publicnow 2022

All news about UMB FINANCIAL CORPORATION

Analyst Recommendations on UMB FINANCIAL CORPORATION

Sales 2022 1 381 M

Net income 2022 355 M

Net Debt 2022

P/E ratio 2022 12,9x
Yield 2022 1,59%
Capitalization 4 541 M
4 541 M
Capi. / Sales 2022 3,29x
Capi. / Sales 2023 3,10x
Nbr of Employees 3 529
Free-Float 79,1%

Chart UMB FINANCIAL CORPORATION



Duration :


Period :




UMB Financial Corporation Technical Analysis Chart | MarketScreener

Technical analysis trends UMB FINANCIAL CORPORATION

Short Term Mid-Term Long Term
Trends Bearish Bearish Neutral



Income Statement Evolution

Sell

Buy

Mean consensus OUTPERFORM
Number of Analysts 5
Last Close Price 93,78 $
Average target price 112,80 $
Spread / Average Target 20,3%


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