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Section 1: 8-K (FORM 8-K)

umbf-8k_20200128.htm
false 0000101382 0000101382 2020-01-28 2020-01-28

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  1/28/2020

 

 

UMB FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Commission File Number: 001-38481

 

Missouri

  

43-0903811

(State or other jurisdiction of

  

(IRS Employer

incorporation)

  

Identification No.)

 

1010 Grand Blvd., Kansas City, MO 64106

(Address of principal executive offices, including zip code)

 

(816) 860-7000

(Registrant’s telephone number, including area code)

 

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13c-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 Par Value

UMBF

The NASDAQ Global Select Market

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 


Item 2.02Results of Operations and Financial Condition

 

On January 28, 2020, UMB Financial Corporation (the “Company”) issued a press release announcing the financial results for the Company for the quarter and year ended December 31, 2019.  A copy of the press release is attached as Exhibit 99.1 and the information is hereby incorporated by reference herein.

 

The information contained in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, is being furnished and shall not be deemed to be “filed” with the Securities and Exchange Commission (“SEC”) for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section and is not incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference to this Current Report on Form 8-K in such a filing.

 

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

 

On January 28, 2020, the Board of Directors of the Company appointed Mr. David Odgers to the position of Chief Accounting Officer (“CAO”) of the Company, effective immediately. Mr. Odgers, age 50, has been with the Company for fifteen (15) years, first serving as Assistant Controller, and, for the last six (6) years, serving as the Company’s Controller, a position he will retain. Prior to his time with the Company, Mr. Odgers was with Gold Banc Corporation, in Leawood, Kansas, serving in various capacities, including as Senior Corporate Accountant.  

 

Mr. Odgers replaces Mr. Brian Walker, who, on November 12, 2019, announced his decision to retire, effective March 2, 2020.  Mr. Walker will remain with the Company in a consultative role until his retirement date.

 

Mr. Odgers will receive an annual salary of $230,000 and will participate in the Company’s 2020 Short-Term Incentive Compensation Program at a target of 35% of his annual salary and in the Company’s Long-Term Incentive Compensation Program at 25% of his annual salary. There are no other arrangements or understandings between him and any other person pursuant to which he was selected as an officer. The Company knows of no transactions between him, or any of his related persons, and the Company that need to be reported pursuant to Item 404 (a) of Regulation S-K.

 

 

Item 7.01    Regulation FD Disclosure

 

On January 28, 2020, the Company announced in the same press release that the Board of Directors of the Company (the “Board”) had declared a quarterly dividend of $0.31 per share that is payable on April 1, 2020 to shareholders of record of the Company as of the close of business on March 10, 2020. This press release is attached as Exhibit 99.1, and the information included in the press release is hereby incorporated herein by reference.

 

The Company is furnishing a copy of materials that will be used in the Company’s shareholder conference call at 8:30 a.m. (CT) on January 29, 2020.  A copy of the materials is attached as Exhibit 99.2 and will be available on the Company’s website at www.umb.com.  The materials are dated January 28, 2020, and the Company disclaims any obligation to correct or update any of the materials in the future.

 

The information provided under Item 7.01 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 hereto, is being furnished and is not deemed to be “filed” with the SEC for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section and is not incorporated by reference into any filing of the Company under the Securities Act or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference to this Current Report on Form 8-K in such a filing.

                                       

Item 9.01    Financial Statements and Exhibits

 

99.1

Press Release announcing financial results for quarter and year ended December 31, 2019, and announcing dividend declaration.


 

 

99.2

Investor Presentation Materials, dated January 28, 2020.

 

 

104

The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

 

 

 

 


SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

UMB FINANCIAL CORPORATION

 

 

By:

 

 

/s/ Ram Shankar

 

Ram Shankar

Chief Financial Officer

Date: January 28, 2020

 

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

umbf-ex991_6.htm

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

YTD

 

 

 

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

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

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.

Noninterest income

 

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

 

(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

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

%