UMB FINANCIAL CORP [UMBF] Filings

10-Q 1 umbf-20240630.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to ____

Commission file number 001-38481

UMB FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)


Missouri		43-0903811
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)


1010 Grand Boulevard, Kansas City, Missouri		64106
(Address of principal executive offices)		(Zip Code)

(Registrant's telephone number, including area code): (816) 860-7000

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non- accelerated filer	☐	Smaller reporting company	☐
		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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of July 26, 2024, UMB Financial Corporation had 48,746,015 shares of common stock outstanding.

UMB FINANCIAL CORPORATION

FORM 10-Q

INDEX


PART I – FINANCIAL INFORMATION		3

ITEM 1.	FINANCIAL STATEMENTS (UNAUDITED)	3
CONSOLIDATED BALANCE SHEETS		3
CONSOLIDATED STATEMENTS OF INCOME		4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME		5
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY		6
CONSOLIDATED STATEMENTS OF CASH FLOWS		7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		9
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	57
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	79
ITEM 4.	CONTROLS AND PROCEDURES	84

PART II - OTHER INFORMATION		85

ITEM 1.	LEGAL PROCEEDINGS	85
ITEM 1A.	RISK FACTORS	85
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	85
ITEM 6.	EXHIBITS	86
SIGNATURES		87

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

UMB FINANCIAL CORPORATION

CONSOLIDATED BALANCE SHEETS

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


	June 30,			December 31,
	2024			2023
ASSETS
Loans	$	24,197,462		$	23,172,484
Allowance for credit losses on loans		(239,167	)		(219,738	)
Net loans		23,958,295			22,952,746
Loans held for sale		4,211			4,420
Securities:
Available for sale (amortized cost of $7,786,039 and $7,692,860, respectively)		7,107,373			7,068,613
Held to maturity, net of allowance for credit losses of $2,956 and $3,258, respectively (fair value of $4,913,408 and $5,183,367, respectively)		5,546,634			5,688,610
Trading securities		28,981			18,093
Other securities		447,650			492,935
Total securities		13,130,638			13,268,251
Federal funds sold and securities purchased under agreements to resell		247,462			245,344
Interest-bearing due from banks		4,640,418			5,159,802
Cash and due from banks		464,719			447,201
Premises and equipment, net		226,860			241,700
Accrued income		237,874			220,306
Goodwill		207,385			207,385
Other intangibles, net		67,141			71,012
Other assets		1,284,411			1,193,507
Total assets	$	44,469,414		$	44,011,674

LIABILITIES
Deposits:
Noninterest-bearing demand	$	12,034,606		$	12,130,662
Interest-bearing demand and savings		22,400,255			20,588,606
Time deposits under $250,000		1,421,513			2,292,899
Time deposits of $250,000 or more		661,196			780,692
Total deposits		36,517,570			35,792,859
Federal funds purchased and repurchase agreements		2,217,033			2,119,644
Short-term debt		1,300,000			1,800,000
Long-term debt		384,245			383,247
Accrued expenses and taxes		352,778			389,860
Other liabilities		470,441			425,645
Total liabilities		41,242,067			40,911,255

SHAREHOLDERS' EQUITY
Common stock, $1.00 par value; 80,000,000 shares authorized; 55,056,730 shares issued, 48,745,090 and 48,554,127 shares outstanding, respectively		55,057			55,057
Capital surplus		1,132,301			1,134,363
Retained earnings		2,984,152			2,810,824
Accumulated other comprehensive loss, net		(605,634	)		(556,935	)
Treasury stock, 6,311,640 and 6,502,603 shares, at cost, respectively		(338,529	)		(342,890	)
Total shareholders' equity		3,227,347			3,100,419
Total liabilities and shareholders' equity	$	44,469,414		$	44,011,674

See Notes to Consolidated Financial Statements.

UMB FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

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


	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2024			2023		2024		2023
INTEREST INCOME
Loans	$	400,351		$	342,994	$	785,917	$	651,435
Securities:
Taxable interest		61,582			54,587		122,693		107,636
Tax-exempt interest		25,077			25,550		50,410		50,856
Total securities income		86,659			80,137		173,103		158,492
Federal funds and resell agreements		3,674			3,889		6,736		9,540
Interest-bearing due from banks		47,174			34,206		91,862		50,372
Trading securities		424			154		729		288
Total interest income		538,282			461,380		1,058,347		870,127
INTEREST EXPENSE
Deposits		240,525			170,550		464,400		298,449
Federal funds and repurchase agreements		28,081			24,745		55,743		48,047
Other		24,568			40,474		53,662		56,324
Total interest expense		293,174			235,769		573,805		402,820
Net interest income		245,108			225,611		484,542		467,307
Provision for credit losses		14,050			13,000		24,050		36,250
Net interest income after provision for credit losses		231,058			212,611		460,492		431,057
NONINTEREST INCOME
Trust and securities processing		70,010			61,589		139,488		123,948
Trading and investment banking		5,461			4,800		10,923		10,108
Service charges on deposit accounts		22,261			21,381		43,018		42,540
Insurance fees and commissions		267			225		550		499
Brokerage fees		14,020			13,604		27,180		27,280
Bankcard fees		22,346			18,579		44,314		36,751
Investment securities (losses) gains, net		(1,867	)		900		7,504		(4,424	)
Other		12,421			17,004		31,186		31,580
Total noninterest income		144,919			138,082		304,163		268,282
NONINTEREST EXPENSE
Salaries and employee benefits		142,861			143,312		285,867		285,810
Occupancy, net		11,723			11,746		23,993		23,923
Equipment		15,603			17,086		32,106		34,935
Supplies and services		3,404			4,195		6,705		8,070
Marketing and business development		6,598			7,124		12,623		12,459
Processing fees		29,701			26,572		57,637		49,812
Legal and consulting		16,566			7,059		24,460		14,344
Bankcard		11,818			8,307		22,385		15,440
Amortization of other intangible assets		1,911			2,117		3,871		4,415
Regulatory fees		2,568			6,123		21,963		11,674
Other		6,314			7,032		12,261		16,843
Total noninterest expense		249,067			240,673		503,871		477,725
Income before income taxes		126,910			110,020		260,784		221,614
Income tax expense		25,565			19,910		49,181		39,067
NET INCOME	$	101,345		$	90,110	$	211,603	$	182,547

PER SHARE DATA
Net income – basic	$	2.08		$	1.86	$	4.34	$	3.77
Net income – diluted		2.07			1.85		4.32		3.75
Dividends		0.39			0.38		0.78		0.76
Weighted average shares outstanding – basic		48,744,636			48,514,277		48,704,075		48,474,865
Weighted average shares outstanding – diluted		48,974,265			48,668,413		48,952,054		48,707,487

See Notes to Consolidated Financial Statements.

UMB FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited, dollars in thousands)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Net income	$	101,345		$	90,110		$	211,603		$	182,547
Other comprehensive (loss) income, before tax:
Unrealized gains and losses on debt securities:
Change in unrealized holding gains and losses, net		(12,727	)		(87,505	)		(54,280	)		6,152
Less: Reclassification adjustment for net (gains) losses included in net income		—			—			(139	)		433
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity		8,938			10,312			17,727			20,295
Change in unrealized gains and losses on debt securities		(3,789	)		(77,193	)		(36,692	)		26,880
Unrealized gains and losses on derivative hedges:
Change in unrealized gains and losses on derivative hedges, net		(8,775	)		1,848			(22,433	)		321
Less: Reclassification adjustment for net gains included in net income		(2,066	)		(2,660	)		(5,726	)		(5,221	)
Change in unrealized gains and losses on derivative hedges		(10,841	)		(812	)		(28,159	)		(4,900	)
Other comprehensive (loss) income, before tax		(14,630	)		(78,005	)		(64,851	)		21,980
Income tax benefit (expense)		3,534			18,950			16,152			(5,076	)
Other comprehensive (loss) income		(11,096	)		(59,055	)		(48,699	)		16,904
Comprehensive income	$	90,249		$	31,055		$	162,904		$	199,451

See Notes to Consolidated Financial Statements.

UMB FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

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


	Common Stock		Capital Surplus		Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Total
Balance – April 1, 2023	$	55,057	$	1,120,877	$	2,609,928		$	(626,776	)	$	(344,427	)	$	2,814,659
Total comprehensive income (loss)		—		—		90,110			(59,055	)		—			31,055
Dividends ($0.38 per share)		—		—		(18,590	)		—			—			(18,590	)
Purchase of treasury stock		—		—		—			—			—			—
Issuances of equity awards, net of forfeitures		—		—		—			—			—			—
Recognition of equity-based compensation		—		3,939		—			—			—			3,939
Sale of treasury stock		—		44		—			—			84			128
Exercise of stock options		—		117

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10-Q	[2020-07-30]
10-Q	[2020-04-30]
10-K	[2020-02-27]
10-Q	[2019-10-31]
10-Q	[2019-08-01]
10-Q	[2019-05-02]
10-K	[2019-03-01]
10-Q	[2018-10-30]
10-Q	[2018-08-02]
10-Q	[2018-05-03]
10-K	[2018-02-22]
10-Q	[2017-11-02]
10-Q	[2017-08-03]
10-Q	[2017-05-02]
10-K	[2017-02-23]
10-Q	[2016-11-01]
10-Q	[2016-08-02]
10-Q	[2016-05-03]
10-K	[2016-02-25]
10-Q	[2015-11-03]
10-Q	[2015-08-04]
10-Q	[2015-05-05]
10-K	[2015-02-27]
10-Q	[2014-11-06]
10-Q	[2014-07-31]
10-Q	[2014-05-01]
10-K	[2014-02-25]
10-Q	[2013-10-31]
10-Q	[2013-08-01]
10-Q	[2013-05-02]
10-K	[2013-02-25]
10-Q	[2012-11-01]
10-Q	[2012-08-02]
10-Q	[2012-05-03]
10-K	[2012-02-28]