Second Quarter 2023 Financial Highlights
- GAAP net income of $90.1 million, or $1.85 per diluted
share.
- Net operating income of $93.8 million, or $1.93 per diluted
share.
- Average loans increased 17.3% on a linked-quarter, annualized
basis.
- Deposit balances at June 30, 2023 totaled $33.5 billion, up
from $31.9 billion at March 31, 2023.
- At June 30, 2023, total estimated uninsured deposits
represented approximately 65.5% of total deposits. When adjusted to
exclude affiliate (company-owned) and collateralized deposits,
estimated uninsured deposits were approximately 40.9% of total
deposits.
- Noninterest income increased 6.1% as compared to the linked
quarter, equal to 38.0% of total revenue.
- Credit quality remained strong, with net recoveries of $0.1
million and nonperforming loans of 0.09% of total loans.
UMB Financial Corporation (Nasdaq: UMBF), a financial services
company, announced net income for the second quarter of 2023 of
$90.1 million, or $1.85 per diluted share, compared to $92.4
million, or $1.90 per diluted share, in the first quarter of 2023
(linked quarter) and $137.6 million, or $2.83 per diluted share, in
the second quarter of 2022. The results for the second quarter of
2022 include a pre-tax gain of $66.2 million on the sale of the
company's entire investment in Visa Inc. Class B common shares, and
a pre-tax $5.0 million contribution to the company's charitable
foundation.
Net operating income, a non-GAAP financial measure reconciled
later in this release to net income, the nearest comparable GAAP
measure, was $93.8 million, or $1.93 per diluted share, for the
second quarter of 2023, compared to $92.8 million, or $1.91 per
diluted share, for the linked quarter and $137.6 million, or $2.83
per diluted share, for the second quarter of 2022. Operating
pre-tax, pre-provision income (operating PTPP), a non-GAAP measure
reconciled later in this release to the components of net income
before taxes, the nearest comparable GAAP measure, was $127.9
million, or $2.63 per diluted share, for the second quarter of
2023, compared to $135.4 million, or $2.78 per diluted share, for
the linked quarter, and $187.1 million, or $3.84 per diluted share,
for the second quarter of 2022. These operating PTPP results
represent decreases of 5.5% on a linked-quarter basis and 31.6%,
compared to the second quarter of 2022.
“In the second quarter of 2023, the positive impacts of fee
income trends, a double-digit annualized increase in average loan
balances, excellent asset quality metrics and expense management
were masked by higher interest expense driven by the Federal
Reserve’s monetary tightening actions as well as expected increases
in funding costs in this high interest rate environment,” said
Mariner Kemper, chairman, president and chief executive officer.
“Average loans increased 17.3% on a linked-quarter annualized basis
with nearly half of the increase driven by commercial &
industrial loan balances. Credit metrics remain strong as evidenced
by net recoveries this quarter and nine basis points of
non-performing loans to total loans. Noninterest income was $138.1
million for the quarter. It's important to note that noninterest
income for the same quarter in 2022 included a pre-tax gain of
$66.2 million on the sale of our Visa Inc. Class B common shares.
Finally, period-end deposit balances at quarter end were $33.5
billion, an increase of $1.6 billion, or 5.0%, as compared to March
31, 2023.”
Second Quarter 2023 earnings discussion
Summary of quarterly financial
results
UMB Financial
Corporation
(unaudited, dollars in thousands, except
per share data)
Q2
Q1
Q2
2023
2023
2022
Net income (GAAP)
$
90,110
$
92,437
$
137,556
Earnings per share (diluted)
1.85
1.90
2.83
Operating pre-tax, pre-provision income
(Non-GAAP)(i)
127,929
135,369
187,051
Operating pre-tax, pre-provision earnings
per share (diluted)
2.63
2.78
3.84
Operating pre-tax, pre-provision income -
FTE (Non-GAAP)(i)
134,504
141,924
193,329
Operating pre-tax, pre-provision earnings
per share - FTE (diluted)
2.77
2.91
3.97
Net operating income (Non-GAAP)(i)
93,841
92,836
137,596
Operating earnings per share (diluted)
1.93
1.91
2.83
GAAP
Return on average assets
0.90
%
0.97
%
1.47
%
Return on average equity
12.56
13.76
20.83
Efficiency ratio
65.59
63.12
53.08
Non-GAAP
(i)
Operating return on average assets
0.93
%
0.98
%
1.47
%
Operating return on average equity
13.08
13.82
20.84
Operating return on average tangible
equity excluding AOCI
11.63
12.21
18.65
Operating efficiency ratio
64.24
62.98
53.06
(i) See reconciliation of Non-GAAP
measures to their nearest comparable GAAP measures later in this
release.
Summary of year-to-date financial
results
UMB Financial
Corporation
(unaudited, dollars in thousands, except
per share data)
June
June
YTD
YTD
2023
2022
Net income (GAAP)
$
182,547
$
243,519
Earnings per share (diluted)
3.75
4.99
Operating pre-tax, pre-provision income
(Non-GAAP)(i)
263,298
306,451
Operating pre-tax, pre-provision earnings
per share (diluted)
5.41
6.29
Operating pre-tax, pre-provision income -
FTE (Non-GAAP)(i)
276,428
319,128
Operating pre-tax, pre-provision earnings
per share - FTE (diluted)
5.68
6.55
Net operating income (Non-GAAP)(i)
186,677
243,669
Operating earnings per share (diluted)
3.83
4.99
GAAP
Return on average assets
0.93
%
1.28
%
Return on average equity
13.14
17.60
Efficiency ratio
64.34
58.03
Non-GAAP
(i)
Operating return on average assets
0.95
%
1.28
%
Operating return on average equity
13.44
17.61
Operating return on average tangible
equity excluding AOCI
11.91
16.86
Operating efficiency ratio
63.61
58.00
(i) See reconciliation of Non-GAAP
measures to their nearest comparable GAAP measures later in this
release.
Summary of revenue
UMB Financial
Corporation
(unaudited, dollars in thousands)
Q2
Q1
Q2
CQ vs.
CQ vs.
2023
2023
2022
LQ
PY
Net interest income
$
225,611
$
241,696
$
224,791
$
(16,085
)
$
820
Noninterest income:
Trust and securities processing
61,589
62,359
58,886
(770
)
2,703
Trading and investment banking
4,800
5,308
7,123
(508
)
(2,323
)
Service charges on deposit accounts
21,381
21,159
20,835
222
546
Insurance fees and commissions
225
274
245
(49
)
(20
)
Brokerage fees
13,604
13,676
12,391
(72
)
1,213
Bankcard fees
18,579
18,172
17,840
407
739
Investment securities gains (losses),
net
900
(5,324
)
60,720
6,224
(59,820
)
Other
17,004
14,576
(1,705
)
2,428
18,709
Total noninterest income
$
138,082
$
130,200
$
176,335
$
7,882
$
(38,253
)
Total revenue
$
363,693
$
371,896
$
401,126
$
(8,203
)
$
(37,433
)
Net interest income (FTE)
$
232,186
$
248,251
$
231,069
Net interest margin (FTE)
2.44
%
2.76
%
2.60
%
Total noninterest income as a % of total
revenue
38.0
35.0
44.0
Net interest income
- Second quarter 2023 net interest income totaled $225.6 million,
a decrease of $16.1 million, or 6.7% from the linked quarter,
driven by higher interest expense primarily due to unfavorable mix
shift in the composition of liabilities, combined with higher
interest rates. This decrease was partially offset by continued
growth in average loans and higher liquidity balances, coupled with
increased yields.
- Average earning assets increased $1.8 billion, or 4.9% from the
linked quarter, largely driven by an increase of $1.2 billion in
interest-bearing due from banks and an increase of $920.0 million
in average loans, partially offset by decreases of $174.7 million
in federal funds sold and resell agreements and $143.4 million in
average securities.
- Average interest-bearing liabilities increased $3.1 billion, or
13.3% from the linked quarter, primarily driven by increases of
$1.9 billion in borrowed funds, primarily short-term borrowings,
and $1.3 billion in interest-bearing deposits. Average
noninterest-bearing deposits decreased $1.4 billion, or 11.6% as
compared to the linked quarter.
- Net interest margin for the second quarter was 2.44%, a
decrease of 32 basis points from the linked quarter, driven by
increased cost and mix of interest-bearing liabilities, partially
offset by improved loan yields, the benefit of free funds, and
earning asset mix changes. The cost of interest-bearing liabilities
increased 67 basis points to 3.58%. Total cost of funds increased
64 basis points from the linked quarter to 2.56%. Average loan
yields increased 32 basis points while earning asset yields
increased 29 basis points from the linked quarter.
- On a year-over-year basis, net interest income increased $0.8
million, or 0.4%, driven by a $3.9 billion, or 21.1%, increase in
average loans, partially offset by higher interest costs due to
unfavorable mix shift in the composition of liabilities as well as
the impact of higher short-term interest rates.
- Compared to the second quarter of 2022, average earning assets
increased $2.5 billion, or 7.1%, largely driven by the increase in
average loans noted above, partially offset by a decrease of $824.5
million in federal funds sold and resell agreements and a decrease
of $589.2 million in average securities.
- Average deposits decreased 0.4% compared to the second quarter
of 2022. Average noninterest-bearing demand deposit balances
decreased 25.9% compared to the second quarter of 2022, driven by
expected migration to rate-bearing deposit categories in a higher
interest rate environment. Demand deposit balances comprised 33.5%
of total deposits, compared to 37.8% in the linked quarter and
45.0% in the second quarter of 2022.
- Average borrowed funds increased $1.9 billion as compared to
the linked quarter and $2.9 billion as compared to the second
quarter of 2022, driven by short-term borrowings with the Federal
Home Loan Bank and the Federal Reserve Discount Window.
Noninterest income
- Second quarter 2023 noninterest income increased $7.9 million,
or 6.1%, on a linked-quarter basis, largely due to:
- An increase of $6.2 million in investment securities gains,
largely driven by an impairment loss on an available-for-sale
subordinated debt security recorded in the first quarter and
increased valuation of the company's equity investments in the
second quarter.
- An increase of $2.4 million in other income, primarily related
to a $4.0 million gain on sale of other assets recorded in the
second quarter, partially offset by a decrease of $1.3 million in
derivative income.
- These increases were partially offset by a decrease of $0.9
million in corporate trust income, recorded in trust and securities
processing.
- Compared to the prior year, noninterest income in the second
quarter of 2023 decreased $38.3 million, or 21.7%, primarily driven
by:
- A decrease of $59.8 million in investment securities gains,
primarily driven by the $66.2 million gain on sale of the company's
investment in Visa Inc. Class B common shares in the second quarter
of 2022. This was partially offset by an increase of $5.3 million
in the valuation of the company's marketable securities.
- A decrease of $2.3 million in trading and investment banking
due to decreased trading volume.
- These decreases were partially offset by the following
increases:
- An increase of $18.7 million in other income, driven by an
increase of $13.8 million in company-owned life insurance income
and a gain of $4.0 million on the sale of other assets recorded in
the second quarter of 2023. The increase in company-owned life
insurance is offset by a proportionate increase in deferred
compensation expense as noted below.
- Increases of $1.9 million and $1.1 million in fund services
income and corporate trust income, both recorded in trust and
securities processing.
- An increase of $1.2 million in brokerage income, largely driven
by increased 12b-1 fee income.
Noninterest expense
Summary of noninterest expense
UMB Financial
Corporation
(unaudited, dollars in thousands)
Q2
Q1
Q2
CQ vs.
CQ vs.
2023
2023
2022
LQ
PY
Salaries and employee benefits
$
143,312
$
142,498
$
121,390
$
814
$
21,922
Occupancy, net
11,746
12,177
11,976
(431
)
(230
)
Equipment
17,086
17,849
18,315
(763
)
(1,229
)
Supplies and services
4,195
3,875
3,492
320
703
Marketing and business development
7,124
5,335
5,308
1,789
1,816
Processing fees
26,572
23,240
19,338
3,332
7,234
Legal and consulting
7,059
7,285
11,265
(226
)
(4,206
)
Bankcard
8,307
7,133
5,880
1,174
2,427
Amortization of other intangible
assets
2,117
2,298
1,225
(181
)
892
Regulatory fees
6,123
5,551
3,464
572
2,659
Other
7,032
9,811
12,474
(2,779
)
(5,442
)
Total noninterest expense
$
240,673
$
237,052
$
214,127
$
3,621
$
26,546
- Noninterest expense for the second quarter of 2023 was $240.7
million, an increase of $3.6 million, or 1.5%, from the linked
quarter and an increase of $26.5 million, or 12.4%, from the second
quarter of 2022. Operating noninterest expense, a non-GAAP
financial measure reconciled later in this release to noninterest
expense, the nearest comparable GAAP measure, was $235.8 million
for the second quarter of 2023, a decrease of $0.8 million, or
0.3%, from the linked quarter and an increase of $21.7 million, or
10.1%, from the second quarter of 2022.
- The linked-quarter increase in GAAP noninterest expense was
driven by:
- Increases of $3.3 million in processing fees and $1.8 million
in marketing and business development expense due to the ongoing
modernization of the company's core systems and timing of multiple
projects, respectively. The increase in marketing and business
development expense was also partially driven by an increase in
advertising for various projects and an increase in travel and
entertainment expense.
- An increase of $0.8 million in salaries and employee benefits
expense driven by an increase of $7.4 million in salary and bonus
expense, partially offset by a decrease of $6.6 million in employee
benefits. The increase in salary and bonus expense was due to an
increase of $4.4 million in severance expense and higher salary
expense related to annual merit increases beginning in the second
quarter. The decrease in employee benefits was driven by the
seasonal decrease of $8.0 million in payroll taxes, insurance, and
401(k) expense, offset by an increase in other employee benefits
recorded in the second quarter.
- These increases were partially offset by a decrease of $2.0
million in operational losses as compared to the linked
quarter.
- The year-over-year increase in GAAP noninterest expense was
driven by:
- An increase of $21.9 million in salaries and employee benefits
expense, driven primarily by increases of $14.5 in employee
benefits expense and $7.4 million in salaries and bonus expense.
The increase in employee benefits expense is due to increases of
$12.5 million in deferred compensation plan expense and $1.3
million in payroll taxes, insurance, and 401(k) expense. The
increase in deferred compensation expense was offset by the
increase in company-owned life insurance income noted above. The
increase in salaries and bonus expense is due to an increase of
$4.8 million in severance expense and higher employee salaries as
compared to the second quarter of 2022.
- An increase of $7.2 million in processing fees expense due to
the ongoing modernization of the company’s core systems and the
timing of multiple software projects.
- An increase of $2.7 million in regulatory fees expense driven
by higher deposit insurance expense.
- These increases were offset by a decrease of $5.4 million in
other expense primarily due to the $5.0 million charitable
contribution recorded in the second quarter of 2022 mentioned
above.
Income taxes
- The company’s effective tax rate was 17.6% for the six months
ended June 30, 2023, compared to 18.7% for the same period in 2022.
The decrease in the effective tax rate in 2023 is primarily
attributable to a larger portion of income being earned from
tax-exempt municipal securities.
Balance sheet
- Average total assets for the second quarter of 2023 were $40.4
billion compared to $38.5 billion for the linked quarter and $37.6
billion for the same period in 2022.
Summary of average loans and leases -
QTD Average
UMB Financial
Corporation
(unaudited, dollars in thousands)
Q2
Q1
Q2
CQ vs.
CQ vs.
2023
2023
2022
LQ
PY
Commercial and industrial
$
9,724,300
$
9,287,319
$
7,918,552
$
436,981
$
1,805,748
Specialty lending
574,220
564,633
518,575
9,587
55,645
Commercial real estate
8,178,463
7,812,140
6,569,784
366,323
1,608,679
Consumer real estate
2,833,739
2,738,184
2,458,815
95,555
374,924
Consumer
139,705
136,571
148,412
3,134
(8,707
)
Credit cards
485,749
453,704
428,167
32,045
57,582
Leases and other
255,425
279,049
275,638
(23,624
)
(20,213
)
Total loans
$
22,191,601
$
21,271,600
$
18,317,943
$
920,001
$
3,873,658
- Average loans for the second quarter of 2023 increased $920.0
million, or 4.3%, on a linked-quarter basis and $3.9 billion, or
21.1%, compared to the second quarter of 2022.
Summary of average securities - QTD
Average
UMB Financial
Corporation
(unaudited, dollars in thousands)
Q2
Q1
Q2
CQ vs.
CQ vs.
2023
2023
2022
LQ
PY
Securities available for sale:
U.S. Treasury
$
797,104
$
783,170
$
639,161
$
13,934
$
157,943
U.S. Agencies
189,091
171,825
172,798
17,266
16,293
Mortgage-backed
3,813,234
3,938,137
4,764,452
(124,903
)
(951,218
)
State and political subdivisions
1,319,398
1,356,785
1,891,377
(37,387
)
(571,979
)
Corporates
349,318
364,854
377,586
(15,536
)
(28,268
)
Collateralized loan obligations
348,078
348,477
247,639
(399
)
100,439
Total securities available for sale
$
6,816,223
$
6,963,248
$
8,093,013
$
(147,025
)
$
(1,276,790
)
Securities held to maturity:
U.S. Agencies
$
123,135
$
123,106
$
65,964
$
29
$
57,171
Mortgage-backed
2,878,657
2,934,113
2,892,986
(55,456
)
(14,329
)
State and political subdivisions
2,822,218
2,814,912
2,240,018
7,306
582,200
Total securities held to maturity
$
5,824,010
$
5,872,131
$
5,198,968
$
(48,121
)
$
625,042
Trading securities
$
12,538
$
9,258
$
10,190
$
3,280
$
2,348
Other securities
407,754
359,238
347,527
48,516
60,227
Total securities
$
13,060,525
$
13,203,875
$
13,649,698
$
(143,350
)
$
(589,173
)
- Average total securities decreased 1.1% on a linked-quarter
basis and decreased 4.3% compared to the second quarter of
2022.
- At June 30, 2023, the unrealized pre-tax net loss on the
available-for-sale securities portfolio was $765.9 million, or
10.3% of the $7.4 billion amortized cost value. At June 30, 2023,
the unrealized pre-tax net loss on the securities designated as
held to maturity was $576.4 million, or 9.9% of the $5.8 billion
amortized cost value.
- During 2022, the company transferred securities with an
amortized cost balance of $4.1 billion and a fair value of $3.8
billion from the available-for-sale category to the
held-to-maturity category. The remaining balance of unrealized
pre-tax net losses related to transferred securities was $226.7
million as of June 30, 2023 and was included in the amortized cost
balance of held-to-maturity securities.
- At June 30, 2023, an after-tax gain of $56.9 million was
included in accumulated other comprehensive income (AOCI) related
to the company’s fair value hedges of municipal securities. During
2021, the company entered into ten of these hedge transactions,
nine of which have since been terminated. The gain on the
terminated hedges is being amortized over the remaining life of the
underlying bonds.
Summary of average deposits - QTD
Average
UMB Financial
Corporation
(unaudited, dollars in thousands)
Q2
Q1
Q2
CQ vs.
CQ vs.
2023
2023
2022
LQ
PY
Deposits:
Noninterest-bearing demand
$
10,535,325
$
11,919,277
$
14,209,159
$
(1,383,952
)
$
(3,673,834
)
Interest-bearing demand and savings
17,463,022
18,427,662
16,808,998
(964,640
)
654,024
Time deposits
3,476,616
1,215,506
570,812
2,261,110
2,905,804
Total deposits
$
31,474,963
$
31,562,445
$
31,588,969
$
(87,482
)
$
(114,006
)
Noninterest bearing deposits as % of
total
33.5
%
37.8
%
45.0
%
- Average deposits decreased 0.3% on a linked-quarter basis and
decreased 0.4% compared to the second quarter of 2022.
- As of June 30, 2023, the total estimated uninsured deposits
were $22.0 billion or approximately 65.5% of total deposits.
Estimated uninsured deposits, when adjusted to exclude affiliate
(company-owned) and collateralized deposits, were $13.7 billion and
represented approximately 40.9% of total deposits.
Capital
Capital information
UMB Financial
Corporation
(unaudited, dollars in thousands, except
per share data)
June 30, 2023
March 31, 2023
June 30, 2022
Total equity
$
2,831,628
$
2,814,659
$
2,642,888
Accumulated other comprehensive loss,
net
(685,831
)
(626,776
)
(564,803
)
Book value per common share
58.36
58.03
54.71
Tangible book value per common share
(Non-GAAP)(i)
52.54
52.17
50.64
Regulatory capital:
Common equity Tier 1 capital
$
3,273,841
$
3,196,111
$
3,055,747
Tier 1 capital
3,273,841
3,196,111
3,055,747
Total capital
3,870,101
3,776,407
3,473,040
Regulatory capital ratios:
Common equity Tier 1 capital ratio
10.65
%
10.57
%
11.44
%
Tier 1 risk-based capital ratio
10.65
10.57
11.44
Total risk-based capital ratio
12.59
12.49
13.00
Tier 1 leverage ratio
8.16
8.35
8.17
(i) See reconciliation of Non-GAAP
measures to their nearest comparable GAAP measures later in this
release.
- At June 30, 2023, 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)
Q2
Q1
Q4
Q3
Q2
2023
2023
2022
2022
2022
Net (recoveries) charge-offs - total
loans
$
(139
)
$
4,643
$
2,189
$
1,173
$
28,128
Net loan (recoveries) charge-offs as a %
of total average loans
(0.00
)%
0.09
%
0.04
%
0.02
%
0.62
%
Loans over 90 days past due
$
10,861
$
1,723
$
1,617
$
2,513
$
3,446
Loans over 90 days past due as a % of
total loans
0.05
%
0.01
%
0.01
%
0.01
%
0.02
%
Nonaccrual and restructured loans
$
19,347
$
15,480
$
19,269
$
19,817
$
18,117
Nonaccrual and restructured loans as a %
of total loans
0.09
%
0.07
%
0.09
%
0.10
%
0.10
%
Provision for credit losses
$
13,000
$
23,250
$
9,000
$
22,000
$
13,400
- Provision for credit losses for the second quarter totaled
$13.0 million, a decrease of $10.3 million from the linked quarter
and a decrease of $0.4 million from the second quarter of 2022.
These changes are driven largely by loan growth and changes in
macro-economic variables in the current period as compared to the
prior periods.
- Net recoveries for the second quarter totaled $0.1 million,
compared to net charge-offs of $4.6 million, or 0.09%, of average
loans in the linked quarter, and $28.1 million, or 0.62%, of
average loans for the second quarter of 2022.
Dividend Declaration and Share
Repurchase Authorization
At the company’s quarterly board meeting, the Board of Directors
declared a $0.38 per share quarterly cash dividend, payable on
October 2, 2023, to shareholders of record at the close of business
on September 11, 2023.
The Board also approved the repurchase of up to 1,000,000 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 2024 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
second quarter 2023 earnings results on Wednesday, July 26, 2023,
at 9:30 a.m. (CT).
Interested parties may access the call by dialing (toll-free)
833-470-1428 or (international) 404-975-4839 and requesting to join
the UMB Financial call with access code 835446. The live call may
also be accessed by visiting investorrelations.umb.com or by using
the following link:
UMB Financial 2Q 2023 Conference Call
A replay of the conference call may be heard through August 9,
2023, by calling (toll-free) 866-813-9403 or (international)
929-458-6194. The replay access code required for playback is
506453. The call replay may also be accessed at
investorrelations.umb.com.
Non-GAAP Financial
Information
In this release, we may 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, operating pre-tax,
pre-provision income (operating PTPP), operating pre-tax,
pre-provision earnings per share – diluted (operating PTPP EPS),
operating pre-tax, pre-provision income on a fully tax equivalent
basis (operating PTPP-FTE), operating pre-tax, pre-provision FTE
earnings per share – diluted (operating PTPP-FTE EPS), tangible
shareholders’ equity, tangible book value per share, and operating
return on average tangible equity excluding AOCI, 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, operating PTPP,
operating PTPP EPS, operating PTPP-FTE, operating PTPP-FTE EPS,
tangible shareholders’ equity, tangible book value per share, and
operating return on average tangible equity excluding AOCI – 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- and severance-related items that
management does not believe reflect the company’s fundamental
operating performance.
Net operating income for the relevant period is defined as GAAP
net income, adjusted to reflect the impact of excluding expenses
related to acquisitions, severance expense, and the cumulative tax
impact of these adjustments.
Operating EPS (diluted) is calculated as earnings per share as
reported, adjusted to reflect, on a per share basis, the impact of
excluding the non-GAAP adjustments described above for the relevant
period. Operating ROE is calculated as net operating income,
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).
Operating PTPP income for the relevant period is defined as GAAP
net interest income plus GAAP noninterest income, less noninterest
expense, adjusted to reflect the impact of excluding expenses
related to acquisitions and severance expense.
Operating PTPP-FTE for the relevant period is defined as GAAP
net interest income on a fully tax equivalent basis plus GAAP
noninterest income, less noninterest expense, adjusted to reflect
the impact of excluding expenses related to acquisitions and
severance 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.
Operating return on average tangible equity excluding AOCI is
calculated as net operating income, divided by the company’s
average tangible shareholders’ equity exclusive of AOCI for the
relevant period.
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, 2022, 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 adverse developments and
uncertainties related to the collateral effects of the collapse of,
and challenges for, domestic and international banks, including the
impacts to the U.S. and global economies; sustained levels of high
inflation and the potential for an economic recession on the heels
of aggressive quantitative tightening by the Federal Reserve, 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.
Consolidated Balance Sheets
UMB Financial
Corporation
(unaudited, dollars in thousands)
June 30,
2023
2022
ASSETS
Loans
$
22,483,542
$
18,972,158
Allowance for credit losses on loans
(222,161
)
(164,346
)
Net loans
22,261,381
18,807,812
Loans held for sale
3,819
750
Securities:
Available for sale
6,668,615
7,739,216
Held to maturity, net of allowance for
credit losses
5,807,763
5,707,282
Trading securities
28,887
9,646
Other securities
428,149
342,543
Total securities
12,933,414
13,798,687
Federal funds sold and resell
agreements
319,838
1,055,459
Interest-bearing due from banks
3,369,911
1,825,295
Cash and due from banks
431,527
360,242
Premises and equipment, net
255,127
257,729
Accrued income
190,387
144,874
Goodwill
207,385
182,225
Other intangibles, net
75,184
14,465
Other assets
1,195,069
1,060,303
Total assets
$
41,243,042
$
37,507,841
LIABILITIES
Deposits:
Noninterest-bearing demand
$
12,142,906
$
14,925,555
Interest-bearing demand and savings
18,184,063
16,007,087
Time deposits under $250,000
2,665,166
383,832
Time deposits of $250,000 or more
528,326
169,550
Total deposits
33,520,461
31,486,024
Federal funds purchased and repurchase
agreements
2,050,583
2,661,283
Short-term debt
1,800,000
—
Long-term debt
382,280
272,505
Accrued expenses and taxes
256,845
182,185
Other liabilities
401,245
262,956
Total liabilities
38,411,414
34,864,953
SHAREHOLDERS' EQUITY
Common stock
55,057
55,057
Capital surplus
1,124,977
1,115,504
Retained earnings
2,681,448
2,384,454
Accumulated other comprehensive loss,
net
(685,831
)
(564,803
)
Treasury stock
(344,023
)
(347,324
)
Total shareholders' equity
2,831,628
2,642,888
Total liabilities and shareholders'
equity
$
41,243,042
$
37,507,841
Consolidated Statements of
Income
UMB Financial
Corporation
(unaudited, dollars in thousands except
share and per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
INTEREST INCOME
Loans
$
342,994
$
169,919
$
651,435
$
319,389
Securities:
Taxable interest
54,587
47,295
107,636
90,677
Tax-exempt interest
25,550
23,538
50,856
47,393
Total securities income
80,137
70,833
158,492
138,070
Federal funds and resell agreements
3,889
3,497
9,540
5,947
Interest-bearing due from banks
34,206
4,207
50,372
6,664
Trading securities
154
114
288
299
Total interest income
461,380
248,570
870,127
470,369
INTEREST EXPENSE
Deposits
170,550
15,439
298,449
21,612
Federal funds and repurchase
agreements
24,745
4,998
48,047
7,146
Other
40,474
3,342
56,324
6,465
Total interest expense
235,769
23,779
402,820
35,223
Net interest income
225,611
224,791
467,307
435,146
Provision for credit losses
13,000
13,400
36,250
6,900
Net interest income after provision for
credit losses
212,611
211,391
431,057
428,246
NONINTEREST INCOME
Trust and securities processing
61,589
58,886
123,948
118,414
Trading and investment banking
4,800
7,123
10,108
12,563
Service charges on deposit accounts
21,381
20,835
42,540
45,477
Insurance fees and commissions
225
245
499
504
Brokerage fees
13,604
12,391
27,280
15,847
Bankcard fees
18,579
17,840
36,751
34,475
Investment securities gains (losses),
net
900
60,720
(4,424
)
60,198
Other
17,004
(1,705
)
31,580
12,535
Total noninterest income
138,082
176,335
268,282
300,013
NONINTEREST EXPENSE
Salaries and employee benefits
143,312
121,390
285,810
252,024
Occupancy, net
11,746
11,976
23,923
24,208
Equipment
17,086
18,315
34,935
36,479
Supplies and services
4,195
3,492
8,070
6,754
Marketing and business development
7,124
5,308
12,459
10,240
Processing fees
26,572
19,338
49,812
37,781
Legal and consulting
7,059
11,265
14,344
18,176
Bankcard
8,307
5,880
15,440
12,447
Amortization of other intangible
assets
2,117
1,225
4,415
2,296
Regulatory fees
6,123
3,464
11,674
6,946
Other
7,032
12,474
16,843
21,554
Total noninterest expense
240,673
214,127
477,725
428,905
Income before income taxes
110,020
173,599
221,614
299,354
Income tax expense
19,910
36,043
39,067
55,835
NET INCOME
$
90,110
$
137,556
$
182,547
$
243,519
PER SHARE DATA
Net income – basic
$
1.86
$
2.85
$
3.77
$
5.03
Net income – diluted
1.85
2.83
3.75
4.99
Dividends
0.38
0.37
0.76
0.74
Weighted average shares outstanding –
basic
48,514,277
48,347,226
48,474,865
48,376,868
Weighted average shares outstanding –
diluted
48,668,413
48,673,964
48,707,487
48,755,059
Consolidated Statements of
Comprehensive Income
UMB Financial
Corporation
(unaudited, dollars in thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
Net income
$
90,110
$
137,556
$
182,547
$
243,519
Other comprehensive (loss) income, before
tax:
Unrealized gains and losses on debt
securities:
Change in unrealized holding gains and
losses, net
(87,505
)
(308,352
)
6,152
(931,262
)
Less: Reclassification adjustment for net
losses included in net income
—
—
433
—
Amortization of net unrealized loss on
securities transferred from available-for-sale to
held-to-maturity
10,312
12,539
20,295
13,121
Change in unrealized gains and losses on
debt securities
(77,193
)
(295,813
)
26,880
(918,141
)
Unrealized gains and losses on derivative
hedges:
Change in unrealized gains and losses on
derivative hedges, net
1,848
4,437
321
9,117
Less: Reclassification adjustment for net
gains included in net income
(2,660
)
(1,090
)
(5,221
)
(1,941
)
Change in unrealized gains and losses on
derivative hedges
(812
)
3,347
(4,900
)
7,176
Other comprehensive (loss) income, before
tax
(78,005
)
(292,466
)
21,980
(910,965
)
Income tax benefit (expense)
18,950
70,791
(5,076
)
219,848
Other comprehensive (loss) income
(59,055
)
(221,675
)
16,904
(691,117
)
Comprehensive income (loss)
$
31,055
$
(84,119
)
$
199,451
$
(447,598
)
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, 2022
$
55,057
$
1,110,520
$
2,176,998
$
126,314
$
(323,465
)
$
3,145,424
Total comprehensive income (loss)
—
—
243,519
(691,117
)
—
(447,598
)
Dividends ($0.74 per share)
—
—
(36,063
)
—
—
(36,063
)
Purchase of treasury stock
—
—
—
—
(31,806
)
(31,806
)
Issuances of equity awards, net of
forfeitures
—
(6,630
)
—
—
7,309
679
Recognition of equity-based
compensation
—
11,223
—
—
—
11,223
Sale of treasury stock
—
174
—
—
111
285
Exercise of stock options
—
217
—
—
527
744
Balance - June 30, 2022
$
55,057
$
1,115,504
$
2,384,454
$
(564,803
)
$
(347,324
)
$
2,642,888
Balance - January 1, 2023
$
55,057
$
1,125,949
$
2,536,086
$
(702,735
)
$
(347,264
)
$
2,667,093
Total comprehensive income
—
—
182,547
16,904
—
199,451
Dividends ($0.76 per share)
—
—
(37,185
)
—
—
(37,185
)
Purchase of treasury stock
—
—
—
—
(7,902
)
(7,902
)
Issuances of equity awards, net of
forfeitures
—
(9,764
)
—
—
10,483
719
Recognition of equity-based
compensation
—
8,455
—
—
—
8,455
Sale of treasury stock
—
115
—
—
140
255
Exercise of stock options
—
222
—
—
520
742
Balance - June 30, 2023
$
55,057
$
1,124,977
$
2,681,448
$
(685,831
)
$
(344,023
)
$
2,831,628
Average Balances / Yields and
Rates
UMB Financial
Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
Three Months Ended June
30,
2023
2022
Average
Average
Average
Average
Balance
Yield/Rate
Balance
Yield/Rate
Assets
Loans, net of unearned interest
$
22,191,601
6.20
%
$
18,317,943
3.72
%
Securities:
Taxable
9,228,103
2.37
9,825,114
1.93
Tax-exempt
3,819,884
3.36
3,814,394
3.13
Total securities
13,047,987
2.66
13,639,508
2.27
Federal funds and resell agreements
276,459
5.64
1,100,918
1.27
Interest bearing due from banks
2,707,740
5.07
2,632,307
0.64
Trading securities
12,538
5.37
10,190
5.35
Total earning assets
38,236,325
4.91
35,700,866
2.86
Allowance for credit losses
(216,876
)
(182,118
)
Other assets
2,345,714
2,043,977
Total assets
$
40,365,163
$
37,562,725
Liabilities and Shareholders'
Equity
Interest-bearing deposits
$
20,939,638
3.27
%
$
17,379,810
0.36
%
Federal funds and repurchase
agreements
2,336,929
4.25
2,658,219
0.75
Borrowed funds
3,137,267
5.17
272,254
4.92
Total interest-bearing liabilities
26,413,834
3.58
20,310,283
0.47
Noninterest-bearing demand deposits
10,535,325
14,209,159
Other liabilities
539,172
394,923
Shareholders' equity
2,876,832
2,648,360
Total liabilities and shareholders'
equity
$
40,365,163
$
37,562,725
Net interest spread
1.33
%
2.39
%
Net interest margin
2.44
2.60
Average Balances / Yields and
Rates
UMB Financial
Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
Six Months Ended June
30,
2023
2022
Average
Average
Average
Average
Balance
Yield/Rate
Balance
Yield/Rate
Assets
Loans, net of unearned interest
$
21,734,142
6.05
%
$
17,842,153
3.61
%
Securities:
Taxable
9,288,392
2.34
9,644,345
1.90
Tax-exempt
3,832,505
3.36
3,926,444
3.08
Total securities
13,120,897
2.64
13,570,789
2.24
Federal funds and resell agreements
363,341
5.29
1,182,891
1.01
Interest bearing due from banks
2,127,343
4.77
3,965,267
0.34
Trading securities
10,907
5.77
15,484
4.70
Total earning assets
37,356,630
4.77
36,576,584
2.66
Allowance for credit losses
(206,559
)
(190,123
)
Other assets
2,292,479
1,966,176
Total assets
$
39,442,550
$
38,352,637
Liabilities and Shareholders'
Equity
Interest-bearing deposits
$
20,294,984
2.97
%
$
17,964,006
0.24
%
Federal funds and repurchase
agreements
2,399,090
4.04
2,815,130
0.51
Borrowed funds
2,174,157
5.22
271,994
4.79
Total interest-bearing liabilities
24,868,231
3.27
21,051,130
0.34
Noninterest-bearing demand deposits
11,223,478
14,117,879
Other liabilities
549,787
393,732
Shareholders' equity
2,801,054
2,789,896
Total liabilities and shareholders'
equity
$
39,442,550
$
38,352,637
Net interest spread
1.50
%
2.32
%
Net interest margin
2.59
2.47
Business Segment Information
UMB Financial
Corporation
(unaudited, dollars in thousands)
Three Months Ended June 30,
2023
Commercial Banking
Institutional Banking
Personal Banking
Total
Net interest income
$
144,389
$
50,397
$
30,825
$
225,611
Provision for credit losses
11,055
234
1,711
13,000
Noninterest income
25,666
86,813
25,603
138,082
Noninterest expense
85,896
91,591
63,186
240,673
Income (loss) before taxes
73,104
45,385
(8,469
)
110,020
Income tax expense (benefit)
13,230
8,213
(1,533
)
19,910
Net income (loss)
$
59,874
$
37,172
$
(6,936
)
$
90,110
Three Months Ended June 30,
2022
Commercial Banking
Institutional Banking
Personal Banking
Total
Net interest income
$
149,094
$
34,981
40,716
$
224,791
Provision for credit losses
12,067
89
1,244
13,400
Noninterest income
56,894
81,082
38,359
176,335
Noninterest expense
79,521
76,511
58,095
214,127
Income before taxes
114,400
39,463
19,736
173,599
Income tax expense
23,752
8,193
4,098
36,043
Net income
$
90,648
$
31,270
$
15,638
$
137,556
Six Months Ended June 30,
2023
Commercial Banking
Institutional Banking
Personal Banking
Total
Net interest income
$
295,416
$
105,482
$
66,409
$
467,307
Provision for credit losses
32,099
331
3,820
36,250
Noninterest income
48,568
171,051
48,663
268,282
Noninterest expense
169,900
180,962
126,863
477,725
Income (loss) before taxes
141,985
95,240
(15,611
)
221,614
Income tax expense (benefit)
25,030
16,789
(2,752
)
39,067
Net income (loss)
$
116,955
$
78,451
$
(12,859
)
$
182,547
Six Months Ended June 30,
2022
Commercial Banking
Institutional Banking
Personal Banking
Total
Net interest income
$
294,096
$
61,233
$
79,817
$
435,146
Provision for credit losses
5,027
240
1,633
6,900
Noninterest income
83,594
154,354
62,065
300,013
Noninterest expense
159,110
152,112
117,683
428,905
Income before taxes
213,553
63,235
22,566
299,354
Income tax expense
39,831
11,795
4,209
55,835
Net income
$
173,722
$
51,440
$
18,357
$
243,519
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 June 30, 2023.
Non-GAAP Financial Measures
Net operating income Non-GAAP
reconciliations:
UMB Financial
Corporation
(unaudited, dollars in thousands except
per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Net income (GAAP)
$
90,110
$
137,556
$
182,547
$
243,519
Adjustments:
Acquisition expense
18
—
57
—
Severance expense
4,891
52
5,377
197
Tax-impact of adjustments (i)
(1,178
)
(12
)
(1,304
)
(47
)
Total Non-GAAP adjustments (net of
tax)
3,731
40
4,130
150
Net operating income (Non-GAAP)
$
93,841
$
137,596
$
186,677
$
243,669
Earnings per share - diluted (GAAP)
$
1.85
$
2.83
$
3.75
$
4.99
Acquisition expense
—
—
—
—
Severance expense
0.10
—
0.11
—
Tax-impact of adjustments (i)
(0.02
)
—
(0.03
)
—
Operating earnings per share - diluted
(Non-GAAP)
$
1.93
$
2.83
$
3.83
$
4.99
GAAP
Return on average assets
0.90
%
1.47
%
0.93
%
1.28
%
Return on average equity
12.56
20.83
13.14
17.60
Non-GAAP
Operating return on average assets
0.93
%
1.47
%
0.95
%
1.28
%
Operating return on average equity
13.08
20.84
13.44
17.61
(i) Calculated using the company’s
marginal tax rate of 24.0%.
Operating noninterest expense and
operating efficiency ratio Non-GAAP reconciliations:
UMB Financial
Corporation
(unaudited, dollars in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Noninterest expense
$
240,673
$
214,127
$
477,725
$
428,905
Adjustments to arrive at operating
noninterest expense (pre-tax):
Acquisition expense
18
—
57
—
Severance expense
4,891
52
5,377
197
Total Non-GAAP adjustments (pre-tax)
4,909
52
5,434
197
Operating noninterest expense
(Non-GAAP)
$
235,764
$
214,075
$
472,291
$
428,708
Noninterest expense
$
240,673
$
214,127
$
477,725
$
428,905
Less: Amortization of other
intangibles
2,117
1,225
4,415
2,296
Noninterest expense, net of amortization
of other intangibles (Non-GAAP) (numerator A)
$
238,556
$
212,902
$
473,310
$
426,609
Operating noninterest expense
$
235,764
$
214,075
$
472,291
$
428,708
Less: Amortization of other
intangibles
2,117
1,225
4,415
2,296
Operating expense, net of amortization of
other intangibles (Non-GAAP) (numerator B)
$
233,647
$
212,850
$
467,876
$
426,412
Net interest income
$
225,611
$
224,791
$
467,307
$
435,146
Noninterest income
138,082
176,335
268,282
300,013
Less: Losses on sales of securities
available for sale, net
—
—
(2
)
—
Total Non-GAAP Revenue (denominator A)
$
363,693
$
401,126
$
735,591
$
735,159
Efficiency ratio (numerator A/denominator
A)
65.59
%
53.08
%
64.34
%
58.03
%
Operating efficiency ratio (Non-GAAP)
(numerator B/denominator A)
64.24
53.06
63.61
58.00
Operating pre-tax, pre-provision income
non-GAAP reconciliations:
UMB Financial
Corporation
(unaudited, dollars in thousands except
per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Net interest income (GAAP)
$
225,611
$
224,791
$
467,307
$
435,146
Noninterest income (GAAP)
138,082
176,335
268,282
300,013
Noninterest expense (GAAP)
240,673
214,127
477,725
428,905
Adjustments to arrive at operating
noninterest expense:
Acquisition expense
18
—
57
—
Severance expense
4,891
52
5,377
197
Total Non-GAAP adjustments
4,909
52
5,434
197
Operating noninterest expense
(Non-GAAP)
235,764
214,075
472,291
428,708
Operating pre-tax, pre-provision income
(Non-GAAP)
$
127,929
$
187,051
$
263,298
$
306,451
Net interest income earnings per share -
diluted (GAAP)
$
4.64
$
4.62
$
9.60
$
8.93
Noninterest income (GAAP)
2.84
3.62
5.51
6.16
Noninterest expense (GAAP)
4.95
4.40
9.81
8.80
Acquisition expense
—
—
—
—
Severance expense
0.10
—
0.11
—
Operating pre-tax, pre-provision earnings
per share - diluted (Non-GAAP)
$
2.63
$
3.84
$
5.41
$
6.29
Operating pre-tax, pre-provision income
- FTE Non-GAAP reconciliations:
UMB Financial
Corporation
(unaudited, dollars in thousands except
per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Net interest income (GAAP)
$
225,611
$
224,791
$
467,307
$
435,146
Adjustments to arrive at net interest
income - FTE:
Tax equivalent interest
6,575
6,278
13,130
12,677
Net interest income - FTE (Non-GAAP)
232,186
231,069
480,437
447,823
Noninterest income (GAAP)
138,082
176,335
268,282
300,013
Noninterest expense (GAAP)
240,673
214,127
477,725
428,905
Adjustments to arrive at operating
noninterest expense:
Acquisition expense
18
—
57
—
Severance expense
4,891
52
5,377
197
Total Non-GAAP adjustments
4,909
52
5,434
197
Operating noninterest expense
(Non-GAAP)
235,764
214,075
472,291
428,708
Operating pre-tax, pre-provision income -
FTE (Non-GAAP)
$
134,504
$
193,329
$
276,428
$
319,128
Net interest income earnings per share -
diluted (GAAP)
$
4.64
$
4.62
$
9.60
$
8.93
Tax equivalent interest
0.14
0.13
0.27
0.26
Net interest income - FTE (Non-GAAP)
4.78
4.75
9.87
9.19
Noninterest income (GAAP)
2.84
3.62
5.51
6.16
Noninterest expense (GAAP)
4.95
4.40
9.81
8.80
Acquisition expense
—
—
—
—
Severance expense
0.10
—
0.11
—
Operating pre-tax, pre-provision income -
FTE earnings per share - diluted (Non-GAAP)
$
2.77
$
3.97
$
5.68
$
6.55
Tangible book value non-GAAP
reconciliations:
UMB Financial
Corporation
(unaudited, dollars in thousands except
share and per share data)
As of June 30,
2023
2022
Total shareholders' equity (GAAP)
$
2,831,628
$
2,642,888
Less: Intangible assets
Goodwill
207,385
182,225
Other intangibles, net
75,184
14,465
Total intangibles, net
282,569
196,690
Total tangible shareholders' equity
(Non-GAAP)
$
2,549,059
$
2,446,198
Total shares outstanding
48,517,750
48,305,286
Ratio of total shareholders' equity (book
value) per share
$
58.36
$
54.71
Ratio of total tangible shareholders'
equity (tangible book value) per share (Non-GAAP)
52.54
50.64
Operating return on average tangible
equity excluding AOCI non-GAAP reconciliations:
UMB Financial
Corporation
(unaudited, dollars in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Average total shareholders' equity
(GAAP)
$
2,876,832
$
2,648,360
$
2,801,054
$
2,789,896
Less: Average intangible assets
Average goodwill
207,385
182,225
207,385
178,478
Average other intangibles, net
75,685
15,261
76,954
14,686
Average total intangibles, net
283,070
197,486
284,339
193,164
Average total tangible shareholders'
equity (Non-GAAP)
2,593,762
2,450,874
2,516,715
2,596,732
Less: Average accumulated other
comprehensive loss (AOCI)
(644,003
)
(507,740
)
(643,782
)
(318,119
)
Average total tangible shareholders'
equity excluding AOCI (Non-GAAP)
$
3,237,765
$
2,958,614
$
3,160,497
$
2,914,851
Net operating income (Non-GAAP)
$
93,841
$
137,596
$
186,677
$
243,669
Non-GAAP
Operating return on average tangible
equity excluding AOCI
11.63
%
18.65
%
11.91
%
16.86
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230725886576/en/
Media Contact: Stephanie Hague: 816.860.5088 Investor Relations
Contact: Kay Gregory: 816.860.7106
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