UMB Financial Corporation (Nasdaq: UMBF), a diversified financial holding company, announced earnings for the three months ended December 31, 2014, of $26.9 million or $0.60 per share ($0.59 diluted). This is a decrease of $7.7 million, or 22.3 percent, compared to fourth quarter 2013 earnings of $34.7 million or $0.78 per share ($0.77 diluted). Earnings for the year ended December 31, 2014, were $120.7 million or $2.69 per share ($2.65 diluted) or a decrease of $13.3 million, or 9.9 percent, compared to the prior year-end earnings of $134.0 million or $3.25 per share ($3.20 diluted).
“A decrease in equity earnings related to Prairie Capital Management coupled with the associated contingency reserve in 2014 was a primary cause of the change in net income year-over-year, masking the strength in our results,” said Mariner Kemper, chairman and chief executive officer. “All in all, 2014 was another successful year for UMB. We continue to demonstrate strong business fundamentals with double-digit, year-over-year loan growth, excellent credit metrics, diversified revenue streams and strong customer relationships. We once again hold the top deposit market-share position in Kansas City, and we are pleased with the growth across our footprint. Expectations for continuing headwinds in 2015 only reinforce the value of our differentiated business model, which is time-tested, and we believe our long-term performance will continue to set us apart from our peers.”
Net Interest Income and Margin
Net interest income for the fourth quarter of 2014 increased $5.0 million, or 5.8 percent, compared to the same period in 2013. Average earning assets increased by $697.0 million, or 4.8 percent, compared to the fourth quarter of 2013. This increase was due largely to an $837.2 million, or 12.9 percent, increase in average loans and a $177.3 million, or 2.5 percent, increase in average total securities, including trading securities, offset by a decrease of $339.7 million, or 37.3 percent, in interest-bearing due from banks. Net interest margin increased one basis point to 2.52 percent for the three months ended December 31, 2014, compared to the same period in 2013.
Noninterest Income and Expense
Noninterest income decreased $20.4 million, or 15.0 percent, for the three months ended December 31, 2014, compared to the same period in 2013. This decrease is primarily attributable to a decrease in equity earnings on alternative investments related to Prairie Capital Management (PCM) equity method investments of $19.6 million, or 129.7 percent. For the three months ended December 31, 2014, unrealized losses on PCM equity method investments totaled $4.5 million, compared to unrealized gains of $15.1 million for the same period last year. In addition, trust and securities processing income decreased $2.6 million, or 3.7 percent, for the three months ended December 31, 2014, compared to the same period in 2013. The decrease in trust and securities processing income was driven by a $6.7 million, or a 26.2 percent, decrease in advisory fee income from the Scout Funds, offset by a $1.9 million, or 8.3 percent, increase in fees related to institutional and personal investment management services, and a $1.7 million, or 8.3 percent, increase in fund administration and custody services. Other noninterest income decreased $2.5 million, or 40.5 percent, for the three months ended December 31, 2014, compared to the same period in 2013. Bankcard fees increased $3.0 million, or 20.6 percent, due to an increase in interchange income.
Looking at the fee businesses, Kemper said, “In the fourth quarter, noninterest income for Scout Investments decreased $5.7 million due largely to the shift in the mix of assets under management for the fourth quarter 2014 relative to the mix in the fourth quarter of 2013. AUM for the quarter remained approximately the same at $31.2 billion, but equity assets were 33 percent of total AUM in the fourth quarter 2014 compared to 51 percent in the same period a year ago. In other fee businesses, trust and securities processing income for Fund Services increased 8.3 percent in the fourth quarter, compared with the same period a year ago, driven by assets under administration of $198.3 billion as of December 31, 2014. In Payment Solutions, fourth quarter card purchase volume was $2.1 billion, driving bankcard fees to $17.3 million.”
Noninterest expense decreased $3.7 million, or 2.2 percent, for the three months ended December 31, 2014, compared to the same period in 2013. Processing fees decreased $1.4 million, or 9.6 percent, primarily due to a decrease in fees paid by the advisor to third-party distributors of the Scout Funds. Other noninterest expense decreased by $9.7 million, or 64.8 percent, due to a $7.7 million decrease in fair value adjustments on contingent consideration liabilities. Salaries and employee benefits expense increased $1.4 million, or 1.6 percent, due to an increase in salaries and wages of $3.4 million, or 6.2 percent, offset by a decrease in employee benefits expense of $1.6 million or 11.0 percent. Equipment expense increased by $1.4 million, or 10.8 percent, due to an increase in computer hardware and software expenses. Bankcard expenses increased $2.2 million, or 49.3 percent, due to an increase in bankcard fraud losses of $1.9 million. Legal and consulting expenses increased $2.1 million, or 35.7 percent. Included in total noninterest expense for the three month period ended December 31, 2014 is $1.9 million of acquisition-related expenses, including $1.7 million of legal and consulting expenses, related to the pending acquisition of Marquette Financial Companies.
Balance Sheet
Average total assets for the three months ended December 31, 2014, were $16.2 billion compared to $15.5 billion for the same period in 2013, an increase of $0.7 billion, or 4.5 percent. Average earning assets increased by $0.7 billion, or 4.8 percent, for the year.
Average loan balances for the three months ended December 31, 2014, increased $0.8 million, or 12.9 percent, to $7.3 billion compared to the same period in 2013. Actual loan balances on December 31, 2014, were $7.5 billion, an increase of $0.9 billion, or 14.5 percent, compared to December 31, 2013. This increase was primarily driven by an increase in commercial loans of $512.5 million, or 15.5 percent, an increase in commercial real estate loans of $164.2 million, or 9.6 percent, an increase in construction loans of $103.1 million, or 67.5 percent, and an increase in HELOCs of $77.5 million, or 13.7 percent. Nonperforming loans, defined as nonaccrual loans and restructured loans, decreased to $27.4 million on December 31, 2014, from $30.7 million on December 31, 2013. As a percentage of loans, nonperforming loans decreased to 0.37 percent as of December 31, 2014, compared to 0.47 percent as of December 31, 2013. The company’s allowance for loan losses totaled $76.1 million, or 1.02 percent of loans, as of December 31, 2014, compared to $74.8 million, or 1.15 percent of loans, as of December 31, 2013.
For the three months ended December 31, 2014, average securities, including trading securities, totaled $7.2 billion. This is an increase of $177.3 million, or 2.5 percent, from the same period in 2013.
Average total deposits increased $151.1 million, or 1.2 percent, to $12.9 billion for the three months ended December 31, 2014, compared to the same period in 2013. Average noninterest-bearing demand deposits increased $500.4 million, or 10.2 percent, compared to 2013. Average interest-bearing deposits decreased by $349.3 million, or 4.5 percent, in 2014 as compared to 2013. Total deposits as of December 31, 2014 and 2013 remained the same at $13.6 billion. Also, as of December 31, 2014, noninterest-bearing demand deposits were 41.4 percent of total deposits, compared to 38.0 percent as of December 31, 2013.
As of December 31, 2014, UMB had total shareholders’ equity of $1.6 billion, an increase of 9.1 percent, as compared to December 31, 2013.
Year-to-Date
Earnings for the year ended December 31, 2014, were $120.7 million or $2.69 per share ($2.65 diluted). This is a decrease of $13.3 million, or 9.9 percent, compared to the prior year-end earnings of $134.0 million or $3.25 per share ($3.20 diluted).
Net interest income for the year ended December 31, 2014, increased $16.8 million, or 5.0 percent, compared to the same period in 2013. Average earning assets increased by $1.0 billion, or 6.9 percent, compared to the same period in 2013. This increase was due primarily to a $754.0 million, or 12.1 percent, increase in average loans, and a $179.3 million, or 27.0 percent, increase in interest-bearing due from banks. Net interest margin decreased six basis points to 2.49 percent for the year ended December 31, 2014, compared to the same period in 2013.
Noninterest income increased $6.9 million, or 1.4 percent, to $498.7 million for the year ended December 31, 2014, as compared to the same period in 2013. The increase in noninterest income is primarily driven by increased trust and securities processing income of $22.1 million, or 8.3 percent. The increase in trust and securities processing income was primarily due to a $12.8 million, or 15.4 percent, increase in fees related to institutional and personal investment management services, and an $8.4 million, or 10.6 percent, increase in fund administration and custody services, offset by a $1.9 million, or 2.0 percent, decrease in advisory fee income from the Scout Funds. Bankcard fees increased $5.2 million, or 8.4 percent, due to increased interchange income. These increases in noninterest income were offset by a decrease in gains on sales of securities available for sale of $4.4 million, or 51.7 percent, and a decrease in equity earnings on alternative investments on PCM equity method investments of $15.1 million, or 79.1 percent, for the year ended December 31, 2014, compared to the same period in 2013.
Noninterest expense increased $42.7 million, or 6.8 percent, for the year ended December 31, 2014, compared to the same period in 2013. This increase was driven by an increase in salaries and employee benefits expense of $18.9 million, or 5.6 percent, an increase in equipment expense of $4.4 million, or 9.0 percent, and a $20.3 million contingency reserve. These increases were offset by a decrease in other noninterest expense of $4.6 million due to a decline in the fair value adjustments on contingent consideration liabilities.
Dividend Declaration
At the company’s quarterly board meeting, the Board of Directors declared a $0.235 per share quarterly cash dividend, payable on April 1, 2015, to shareholders of record at the close of business on March 10, 2015.
Forward-Looking Statements:
This 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, 2013, 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 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. 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 diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors. For more information, visit umb.com, umbfinancial.com, blog.umb.com or follow us on Twitter at @UMBBank, Facebook at facebook.com/UMBBank and LinkedIn at linkedin.com/company/umb-bank.
Consolidated Balance Sheets | UMB Financial Corporation | |||||||
(unaudited, dollars in thousands) | ||||||||
December 31, | ||||||||
Assets | 2014 | 2013 | ||||||
Loans | $ | 7,465,794 | $ | 6,520,512 | ||||
Allowance for loan losses | (76,140) | (74,751) | ||||||
Net loans | 7,389,654 | 6,445,761 | ||||||
Loans held for sale | 624 | 1,357 | ||||||
Investment securities: | ||||||||
Available for sale | 6,911,936 | 6,762,411 | ||||||
Held to maturity | 278,054 | 209,770 | ||||||
Trading securities | 27,203 | 28,464 | ||||||
Federal Reserve Bank Stock and other | 68,474 | 50,482 | ||||||
Total investment securities | 7,285,667 | 7,051,127 | ||||||
Federal funds and resell agreements | 118,105 | 87,018 | ||||||
Interest-bearing due from banks | 1,539,386 | 2,093,467 | ||||||
Cash and due from banks | 444,299 | 521,001 | ||||||
Bank premises and equipment, net | 257,835 | 249,689 | ||||||
Accrued income | 79,297 | 78,216 | ||||||
Goodwill | 209,758 | 209,758 | ||||||
Other intangibles | 43,991 | 55,585 | ||||||
Other assets | 132,344 | 118,873 | ||||||
Total assets | $ | 17,500,960 | $ | 16,911,852 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 5,643,989 | $ | 5,189,998 | ||||
Interest-bearing demand and savings | 6,709,281 | 7,001,126 | ||||||
Time deposits under $100,000 | 424,925 | 491,792 | ||||||
Time deposits of $100,000 or more | 838,664 | 957,850 | ||||||
Total deposits | 13,616,859 | 13,640,766 | ||||||
Federal funds and repurchase agreements | 2,025,132 | 1,583,218 | ||||||
Short-term debt | - | 107 | ||||||
Long-term debt | 8,810 | 5,055 | ||||||
Accrued expenses and taxes | 180,074 | 153,450 | ||||||
Other liabilities | 26,327 | 23,191 | ||||||
Total liabilities | 15,857,202 | 15,405,787 | ||||||
Shareholders' Equity | ||||||||
Common stock | 55,057 | 55,057 | ||||||
Capital surplus | 894,602 | 882,407 | ||||||
Retained earnings | 963,911 | 884,630 | ||||||
Accumulated other comprehensive income | 11,006 | (32,640) | ||||||
Treasury stock | (280,818) | (283,389) | ||||||
Total shareholders' equity | 1,643,758 | 1,506,065 | ||||||
Total liabilities and shareholders' equity | $ | 17,500,960 | $ | 16,911,852 | ||||
Consolidated Statements of Income | UMB Financial Corporation | ||||||||||||||
(unaudited, dollars in thousands except share and per share data) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
Interest Income | 2014 | 2013 | 2014 | 2013 | |||||||||||
Loans | $ | 64,433 | $ | 59,206 | $ | 245,278 | $ | 229,665 | |||||||
Securities: | |||||||||||||||
Taxable interest | 19,338 | 18,881 | 76,204 | 75,202 | |||||||||||
Tax-exempt interest | 9,759 | 10,183 | 39,209 | 40,399 | |||||||||||
Total securities income | 29,097 | 29,064 | 115,413 | 115,601 | |||||||||||
Federal funds and resell agreements | 93 | 67 | 259 | 193 | |||||||||||
Interest-bearing due from banks | 510 | 642 | 2,525 | 1,918 | |||||||||||
Trading securities | 85 | 152 | 396 | 964 | |||||||||||
Total interest income | 94,218 | 89,131 | 363,871 | 348,341 | |||||||||||
Interest Expense | |||||||||||||||
Deposits | 3,076 | 2,961 | 12,242 | 13,183 | |||||||||||
Federal funds and repurchase agreements | 323 | 296 | 1,616 | 1,739 | |||||||||||
Other | (95) | (40) | (42) | 150 | |||||||||||
Total interest expense | 3,304 | 3,217 | 13,816 | 15,072 | |||||||||||
Net interest income | 90,914 | 85,914 | 350,055 | 333,269 | |||||||||||
Provision for loan losses | 3,000 | 4,000 | 17,000 | 17,500 | |||||||||||
Net interest income after provision for loan losses | 87,914 | 81,914 | 333,055 | 315,769 | |||||||||||
Noninterest Income | |||||||||||||||
Trust and securities processing | 69,072 | 71,685 | 288,054 | 265,948 | |||||||||||
Trading and investment banking | 4,840 | 4,317 | 19,398 | 20,641 | |||||||||||
Service charges on deposits | 21,480 | 20,692 | 85,299 | 84,133 | |||||||||||
Insurance fees and commissions | 765 | 661 | 3,011 | 3,727 | |||||||||||
Brokerage fees | 2,595 | 2,743 | 10,761 | 11,470 | |||||||||||
Bankcard fees | 17,321 | 14,365 | 67,250 | 62,031 | |||||||||||
Gains on sale of available for sale securities, net | 62 | (10) | 4,127 | 8,542 | |||||||||||
Equity earnings on alternative investments | (4,487) | 15,100 | 3,975 | 19,048 | |||||||||||
Other | 3,600 | 6,054 | 16,813 | 16,293 | |||||||||||
Total noninterest income | 115,248 | 135,607 | 498,688 | 491,833 | |||||||||||
Noninterest Expense | |||||||||||||||
Salaries and employee benefits | 90,115 | 88,691 | 358,569 | 339,691 | |||||||||||
Occupancy, net | 10,312 | 10,116 | 40,197 | 39,291 | |||||||||||
Equipment | 14,618 | 13,195 | 53,609 | 49,207 | |||||||||||
Supplies and services | 5,403 | 5,777 | 20,411 | 20,387 | |||||||||||
Marketing and business development | 7,182 | 7,190 | 24,148 | 22,703 | |||||||||||
Processing fees | 13,496 | 14,936 | 56,049 | 57,791 | |||||||||||
Legal and consulting | 7,907 | 5,826 | 20,407 | 18,703 | |||||||||||
Bankcard | 6,812 | 4,563 | 19,594 | 18,381 | |||||||||||
Amortization of intangible assets | 2,974 | 3,164 | 12,193 | 13,218 | |||||||||||
Regulatory fees | 2,643 | 2,064 | 10,445 | 9,129 | |||||||||||
Contingency reserve | - | - | 20,272 | - | |||||||||||
Other | 5,251 | 14,904 | 31,032 | 35,677 | |||||||||||
Total noninterest expense | 166,713 | 170,426 | 666,926 | 624,178 | |||||||||||
Income before income taxes | 36,449 | 47,095 | 164,817 | 183,424 | |||||||||||
Income tax provision | 9,509 | 12,432 | 44,162 | 49,459 | |||||||||||
Net income | $ | 26,940 | $ | 34,663 | $ | 120,655 | $ | 133,965 | |||||||
Per Share Data | |||||||||||||||
Net income - basic | $ | 0.60 | $ | 0.78 | $ | 2.69 | $ | 3.25 | |||||||
Net income – diluted | 0.59 | 0.77 | 2.65 | 3.20 | |||||||||||
Dividends | 0.235 | 0.225 | 0.910 | 0.870 | |||||||||||
Weighted average shares outstanding | 44,920,106 | 44,511,742 | 44,844,578 | 41,275,839 | |||||||||||
Statements of Consolidated Comprehensive Income | UMB Financial Corporation | |||||||||||||||
(unaudited, dollars in thousands, except per share data) | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net Income | $ | 26,940 | $ | 34,663 | $ | 120,655 | $ | 133,965 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Unrealized gains on securities: | ||||||||||||||||
Change in unrealized holding gains (losses), net | 14,991 | (26,769) | 74,147 | (178,500) | ||||||||||||
Less: Reclassifications adjustment for (gains) losses | (62) | 10 | (4,127) | (8,542) | ||||||||||||
Change in unrealized gains (losses) on securities | 14,929 | (26,759) | 70,020 | (187,042) | ||||||||||||
Income tax (expense) benefit | (5,750) | 9,804 | (26,374) | 68,814 | ||||||||||||
Other comprehensive income (loss) | 9,179 | (16,955) | 43,646 | (118,228) | ||||||||||||
Comprehensive income | $ | 36,119 | $ | 17,708 | $ | 164,301 | $ | 15,737 | ||||||||
Consolidated Statements of | ||||||||||||||||||||||||
Shareholders' Equity | UMB Financial Corporation | |||||||||||||||||||||||
(unaudited, dollars in thousands, except per share data) | ||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Common | Capital | Retained | Comprehensive | Treasury | ||||||||||||||||||||
Stock | Surplus | Earnings | (Loss) Income | Stock | Total | |||||||||||||||||||
Balance - January 1, 2013 | $ | 55,057 | $ | 732,069 | $ | 787,015 | $ | 85,588 | $ | (380,384) | $ | 1,279,345 | ||||||||||||
Total Comprehensive income | - | - | 133,965 | (118,228) | - | 15,737 | ||||||||||||||||||
Cash dividends ($0.87 per share) | - | - | (36,350) | - | - | (36,350) | ||||||||||||||||||
Purchase of treasury stock | - | - | - | - | (3,501) | (3,501) | ||||||||||||||||||
Issuance of equity awards | - | (1,651) | - | - | 2,101 | 450 | ||||||||||||||||||
Recognition of equity based compensation | - | 7,936 | - | - | - | 7,936 | ||||||||||||||||||
Net tax benefit related to equity compensation plans | - | 1,224 | - | - | - | 1,224 | ||||||||||||||||||
Sale of treasury stock | - | 520 | - | - | 256 | 776 | ||||||||||||||||||
Exercise of stock options | - | 3,986 | - | - | 5,032 | 9,018 | ||||||||||||||||||
Common Stock Issuance | - | 138,323 | - | - | 93,107 | 231,430 | ||||||||||||||||||
Balance – December 31, 2013 | $ | 55,057 | $ | 882,407 | $ | 884,630 | $ | (32,640) | $ | (283,389) | $ | 1,506,065 | ||||||||||||
Balance - January 1, 2014 | $ | 55,057 | $ | 882,407 | $ | 884,630 | $ | (32,640) | $ | (283,389) | $ | 1,506,065 | ||||||||||||
Total Comprehensive income | - | - | 120,655 | 43,646 | - | 164,301 | ||||||||||||||||||
Cash dividends ($0.91 per share) | - | - | (41,374) | - | - | (41,374) | ||||||||||||||||||
Purchase of treasury stock | - | - | - | - | (5,741) | (5,741) | ||||||||||||||||||
Issuance of equity awards | - | (2,338) | - | - | 2,827 | 489 | ||||||||||||||||||
Recognition of equity based compensation | - | 9,172 | - | - | - | 9,172 | ||||||||||||||||||
Net tax benefit related to equity compensation plans | - | 1,880 | - | - | - | 1,880 | ||||||||||||||||||
Sale of treasury stock | - | 596 | - | - | 340 | 936 | ||||||||||||||||||
Exercise of stock options | - | 2,885 | - | - | 5,145 | 8,030 | ||||||||||||||||||
Balance – December 31, 2014 | $ | 55,057 | $ | 894,602 | $ | 963,911 | $ | 11,006 | $ | (280,818) | $ | 1,643,758 | ||||||||||||
Average Balances / Yields and Rates | UMB Financial Corporation | |||||||||||||||
(tax - equivalent basis) | ||||||||||||||||
(unaudited, dollars in thousands) | Three Months Ended December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Average | Average | Average | Average | |||||||||||||
Assets | Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||
Loans, net of unearned interest | $ | 7,320,930 | 3.49 | % | $ | 6,483,711 | 3.62 | % | ||||||||
Securities: | ||||||||||||||||
Taxable | 5,006,800 | 1.53 | 4,820,959 | 1.55 | ||||||||||||
Tax-exempt | 2,148,256 | 2.77 | 2,148,904 | 2.91 | ||||||||||||
Total securities | 7,155,056 | 1.91 | 6,969,863 | 1.97 | ||||||||||||
Federal funds and resell agreements | 73,821 | 0.50 | 51,635 | 0.51 | ||||||||||||
Interest-bearing due from banks | 571,921 | 0.35 | 911,623 | 0.28 | ||||||||||||
Trading securities | 29,019 | 1.46 | 36,888 | 1.93 | ||||||||||||
Total earning assets | 15,150,747 | 2.61 | 14,453,720 | 2.60 | ||||||||||||
Allowance for loan losses | (77,527) | (75,135) | ||||||||||||||
Other assets | 1,158,402 | 1,155,176 | ||||||||||||||
Total assets | $ | 16,231,622 | $ | 15,533,761 | ||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||
Interest-bearing deposits | $ | 7,446,164 | 0.16 | % | $ | 7,795,495 | 0.15 | % | ||||||||
Federal funds and repurchase agreements | 1,535,253 | 0.08 | 1,172,917 | 0.10 | ||||||||||||
Borrowed funds | 7,021 | (5.37) | 5,223 | (2.96) | ||||||||||||
Total interest-bearing liabilities | 8,988,438 | 0.15 | 8,973,635 | 0.14 | ||||||||||||
Noninterest-bearing demand deposits | 5,403,856 | 4,903,429 | ||||||||||||||
Other liabilities | 187,359 | 142,552 | ||||||||||||||
Shareholders' equity | 1,651,969 | 1,514,145 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 16,231,622 | $ | 15,533,761 | ||||||||||||
Net interest spread | 2.46 | % | 2.47 | % | ||||||||||||
Net interest margin | 2.52 | 2.51 | ||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Average | Average | Average | Average | |||||||||||||
Assets | Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||
Loans, net of unearned interest | $ | 6,975,338 | 3.52 | % | $ | 6,221,318 | 3.69 | % | ||||||||
Securities: | ||||||||||||||||
Taxable | 4,898,826 | 1.56 | 4,876,304 | 1.54 | ||||||||||||
Tax-exempt | 2,122,822 | 2.84 | 2,102,216 | 2.97 | ||||||||||||
Total securities | 7,021,648 | 1.94 | 6,978,520 | 1.97 | ||||||||||||
Federal funds and resell agreements | 48,869 | 0.53 | 36,589 | 0.53 | ||||||||||||
Interest-bearing due from banks | 843,134 | 0.30 | 663,818 | 0.29 | ||||||||||||
Trading securities | 32,189 | 1.46 | 56,022 | 1.90 | ||||||||||||
Total earning assets | 14,921,178 | 2.58 | 13,956,267 | 2.66 | ||||||||||||
Allowance for loan losses | (76,459) | (72,370) | ||||||||||||||
Other assets | 1,154,174 | 1,146,865 | ||||||||||||||
Total assets | $ | 15,998,893 | $ | 15,030,762 | ||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||
Interest-bearing deposits | $ | 7,494,744 | 0.16 | % | $ | 7,220,675 | 0.18 | % | ||||||||
Federal funds and repurchase agreements | 1,535,038 | 0.11 | 1,613,584 | 0.11 | ||||||||||||
Borrowed funds | 6,059 | (0.69) | 4,972 | 3.02 | ||||||||||||
Total interest-bearing liabilities | 9,035,841 | 0.15 | 8,839,231 | 0.17 | ||||||||||||
Noninterest-bearing demand deposits | 5,196,529 | 4,709,643 | ||||||||||||||
Other liabilities | 166,758 | 144,781 | ||||||||||||||
Shareholders' equity | 1,599,765 | 1,337,107 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 15,998,893 | $ | 15,030,762 | ||||||||||||
Net interest spread | 2.43 | % | 2.49 | % | ||||||||||||
Net interest margin | 2.49 | 2.55 | ||||||||||||||
Fourth Quarter 2014 | ||||||||||
Financial Highlights | UMB Financial Corporation | |||||||||
(unaudited, dollars in thousands, except share and per share data) | ||||||||||
Year Ended December 31 | 2014 | 2013 | ||||||||
Net interest income | $ | 350,055 | $ | 333,269 | ||||||
Provision for loan losses | 17,000 | 17,500 | ||||||||
Noninterest income | 498,688 | 491,833 | ||||||||
Noninterest expense | 666,926 | 624,178 | ||||||||
Income before income taxes | 164,817 | 183,424 | ||||||||
Net income | 120,655 | 133,965 | ||||||||
Net income per share - Basic | 2.69 | 3.25 | ||||||||
Net income per share - Diluted | 2.65 | 3.20 | ||||||||
Return on average assets | 0.75 | % | 0.89 | % | ||||||
Return on average equity | 7.54 | % | 10.02 | % | ||||||
Three Months Ended December 31 | ||||||||||
Net interest income | $ | 90,914 | $ | 85,914 | ||||||
Provision for loan losses | 3,000 | 4,000 | ||||||||
Noninterest income | 115,248 | 135,607 | ||||||||
Noninterest expense | 166,713 | 170,426 | ||||||||
Income before income taxes | 36,449 | 47,095 | ||||||||
Net income | 26,940 | 34,663 | ||||||||
Net income per share - Basic | 0.60 | 0.78 | ||||||||
Net income per share - Diluted | 0.59 | 0.77 | ||||||||
Return on average assets | 0.66 | % | 0.89 | % | ||||||
Return on average equity | 6.47 | % | 9.08 | % | ||||||
At December 31 | ||||||||||
Assets | $ | 17,500,960 | $ | 16,911,852 | ||||||
Loans, net of unearned interest | 7,465,794 | 6,520,512 | ||||||||
Securities | 7,285,667 | 7,051,127 | ||||||||
Deposits | 13,616,859 | 13,640,766 | ||||||||
Shareholders' equity | 1,643,758 | 1,506,065 | ||||||||
Book value per share | 36.10 | 33.30 | ||||||||
Market price per share | 56.89 | 64.28 | ||||||||
Equity to assets | 9.39 | % | 8.91 | % | ||||||
Allowance for loan losses | $ | 76,140 | $ | 74,751 | ||||||
As a % of loans | 1.02 | % | 1.15 | % | ||||||
Nonaccrual and restructured loans | $ | 27,382 | $ | 30,706 | ||||||
As a % of loans | 0.37 | % | 0.47 | % | ||||||
Loans over 90 days past due | $ | 3,830 | $ | 3,218 | ||||||
As a % of loans | 0.05 | % | 0.05 | % | ||||||
Other real estate owned | $ | 394 | $ | 1,288 | ||||||
Net loan charge-offs quarter-to-date | $ | 4,176 | $ | 4,187 | ||||||
As a % of average loans | 0.23 | % | 0.26 | % | ||||||
Net loan charge-offs year-to-date | $ | 15,610 | $ | 14,175 | ||||||
As a % of average loans | 0.22 | % | 0.23 | % | ||||||
Common shares outstanding | 45,532,188 | 45,221,237 | ||||||||
Average Balances | ||||||||||
Year Ended December 31 | ||||||||||
Assets | $ | 15,998,893 | $ | 15,030,762 | ||||||
Loans, net of unearned interest | 6,975,338 | 6,221,318 | ||||||||
Securities | 7,053,837 | 7,034,542 | ||||||||
Deposits | 12,691,273 | 11,930,318 | ||||||||
Shareholders' equity | 1,599,765 | 1,337,107 | ||||||||
Business Segment Information | UMB Financial Corporation | ||||||||||||||||||||
(unaudited, dollars in thousands) | |||||||||||||||||||||
Three Months Ended December 31, 2014 | |||||||||||||||||||||
Bank | Payment | Institutional | Asset | Total | |||||||||||||||||
Net interest income | $ | 75,862 | $ | 14,003 | $ | - | $ | 1,049 | $ | 90,914 | |||||||||||
Provision for loan losses | 1,617 | 1,383 | - | - | 3,000 | ||||||||||||||||
Noninterest income | 42,380 | 21,479 | 29,212 | 22,177 | 115,248 | ||||||||||||||||
Noninterest expense | 97,070 | 26,507 | 23,156 | 19,980 | 166,713 | ||||||||||||||||
Income before taxes | 19,555 | 7,592 | 6,056 | 3,246 | 36,449 | ||||||||||||||||
Income tax expense | 5,158 | 2,029 | 1,445 | 877 | 9,509 | ||||||||||||||||
Net income | $ | 14,397 | $ | 5,563 | $ | 4,611 | $ | 2,369 | $ | 26,940 | |||||||||||
Average assets | $ | 12,324,000 | $ | 2,948,000 | $ | 72,000 | $ | 888,000 | $ | 16,232,000 | |||||||||||
Three Months Ended December 31, 2013 | |||||||||||||||||||||
Bank | Payment | Institutional | Asset | Total | |||||||||||||||||
Net interest income | $ | 73,874 | $ | 11,505 | $ | (10) | $ | 545 | $ | 85,914 | |||||||||||
Provision for loan losses | 1,765 | 2,235 | - | - | 4,000 | ||||||||||||||||
Noninterest income | 62,406 | 17,737 | 34,892 | 20,572 | 135,607 | ||||||||||||||||
Noninterest expense | 99,080 | 23,121 | 29,582 | 18,643 | 170,426 | ||||||||||||||||
Income before taxes | 35,435 | 3,886 | 5,300 | 2,474 | 47,095 | ||||||||||||||||
Income tax expense | 8,918 | 1,271 | 1,127 | 1,116 | 12,432 | ||||||||||||||||
Net income | $ | 26,517 | $ | 2,615 | $ | 4,173 | $ | 1,358 | $ | 34,663 | |||||||||||
Average assets | $ | 11,277,000 | $ | 1,780,000 | $ | 75,000 | $ | 2,402,000 | $ | 15,534,000 | |||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Bank | Payment | Institutional | Asset | Total | ||||||||||||||||
Net interest income | $ | 292,357 | $ | 52,251 | $ | (3) | $ | 5,450 | $ | 350,055 | ||||||||||
Provision for loan losses | 9,175 | 7,825 | - | - | 17,000 | |||||||||||||||
Noninterest income | 194,223 | 84,477 | 131,226 | 88,762 | 498,688 | |||||||||||||||
Noninterest expense | 405,065 | 94,177 | 92,008 | 75,676 | 666,926 | |||||||||||||||
Income before taxes | 72,340 | 34,726 | 39,215 | 18,536 | 164,817 | |||||||||||||||
Income tax expense | 19,487 | 9,311 | 10,331 | 5,033 | 44,162 | |||||||||||||||
Net income | $ | 52,853 | $ | 25,415 | $ | 28,884 | $ | 13,503 | $ | 120,655 | ||||||||||
Average assets | $ | 12,099,000 | $ | 2,456,000 | $ | 72,000 | $ | 1,372,000 | $ | 15,999,000 | ||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Bank | Payment | Institutional | Asset | Total | ||||||||||||||||
Net interest income | $ | 285,112 | $ | 45,832 | $ | (32) | $ | 2,357 | $ | 333,269 | ||||||||||
Provision for loan losses | 5,535 | 11,965 | - | - | 17,500 | |||||||||||||||
Noninterest income | 210,535 | 74,223 | 126,442 | 80,633 | 491,833 | |||||||||||||||
Noninterest expense | 376,307 | 86,746 | 88,336 | 72,789 | 624,178 | |||||||||||||||
Income before taxes | 113,805 | 21,344 | 38,074 | 10,201 | 183,424 | |||||||||||||||
Income tax expense | 28,548 | 6,739 | 10,002 | 4,170 | 49,459 | |||||||||||||||
Net income | $ | 85,257 | $ | 14,605 | $ | 28,072 | $ | 6,031 | $ | 133,965 | ||||||||||
Average assets | $ | 11,255,000 | $ | 1,736,000 | $ | 77,000 | $ | 1,963,000 | $ | 15,031,000 | ||||||||||
Contacts:
Media Contact:
Kelli
Christman, 816-860-5088
Kelli.Christman@umb.com
or
Investor
Relations Contact:
Abby Wendel, 816-860-1685
Abigail.Wendel@umb.com