UMB Financial Corporation (UMBF) is gaining from balance-sheet strength on the back of increasing loan and deposit balances. Also, steady capital distributions are backed by a decent liquidity position. However, intense competition, along with elevated expenses, are major headwinds. UMB Financial has a healthy balance sheet position. The company witnessed impressive net loan growth in the last three years (2020-2023), with compounded annual growth rate (CAGR) of 13%. Also, deposits saw a CAGR of 9.8% in the ...

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 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ____ | --- | --- | |----------------------------------------------------------------------------|---------------------------------------------| | Commission ...

stocknshares Shares of UMB Financial (NASDAQ:UMBF) rallied about 3% on Wednesday after the company reported strong Q2 results. These gains added to an impressive year with the stock up 47%. I last covered UMB in April, rating shares a "buy." Since that recommendation, UMBF is up 30%, far ahead of the market's 10% gain. With shares now above my $100 price target and with new financial data, now is a good time to revisit UMB. 5D 1M 10Y MAX Basic 1D Advanced 8 BO Nov 2023 May 2024 Jan 2024 Mar 2024 Seeking Alp ...

Financial Data and Key Metrics - GAAP earnings of $101.3 million or $2.07 per share, with operating earnings of $105.9 million or $2.16 per share [4] - Net interest income increased by $5.7 million or 2.4% to $245.1 million, driven by loan growth and higher liquidity [9] - Net interest margin increased by 3 basis points to 2.51%, outperforming expectations due to stronger-than-expected DDA balances [9] - Average loan balances grew by 7.7% linked-quarter annualized, with top-line loan production of $926 million [4] - Average total deposits grew by $815 million or 9.7% on a linked-quarter annualized basis [6] - Non-interest income was $144.9 million, a 9% linked-quarter reduction due to non-recurring items in the prior quarter [13] - Non-interest expense of $249.1 million included $9.6 million in pre-tax acquisition expenses [13] Business Line Data and Key Metrics - Commercial real estate and construction loans led the 7.7% linked-quarter annualized increase in average loan balances [4] - Average card balances increased by 26.1%, driven by the full quarter impact of the co-brand card portfolio acquired in March [4] - Fund Services' assets under administration grew to $460 billion, a 20% increase from June 30, 2023 [13] - Private Wealth teams brought in $781 million in net new assets year-to-date, ahead of full-year 2023 levels [13] - Credit and debit card spending reached $4.7 billion in Q2, up from $4 billion a year ago [13] Market Data and Key Metrics - Non-performing loans fell to six basis points of total loans, with net charge-offs at five basis points of average loans [5] - The coverage ratio increased by three basis points to 0.99% of total loans [6] - Average client deposits, excluding brokered CDs, increased by $1.3 billion from the last quarter [7] - Since Q2 2023, deposits excluding brokered CDs have increased by $4.2 billion or 14% [7] Company Strategy and Industry Competition - The pending acquisition of Heartland Financial is expected to accelerate growth, diversify, and derisk the business model [8] - The integration team is focused on ensuring a seamless transition without disrupting business activities [7] - The company expects to benefit from interest rate cuts in year one, with neutral implications for year two [11] - The acquisition is seen as a strategic, financial, and cultural fit, with opportunities for growth in 2025 and beyond [8] Management Commentary on Operating Environment and Future Outlook - Management believes the company is at the bottom of the rotation cycle for DDA balances, with most rotation already completed [18] - The company expects net interest margin to remain relatively stable in Q3, even with a potential Fed rate cut in September [10] - Management is optimistic about the strong pipeline for Q3, with growth expected across all segments [36] - The company remains focused on revenue growth and operating leverage, with opportunities in the institutional and C&I sectors [32] Other Important Information - The company's common equity Tier 1 capital increased to 11.14%, with tangible book value per share growing by 15.3% over the past year [12] - The effective tax rate for Q2 was 20.1%, compared to 18.1% in Q2 2023, with a full-year 2024 tax rate expected between 17% and 19% [14] - The company has $1.4 billion of securities with a yield of 2.54% rolling off over the next 12 months, which will be reinvested at higher yields [11] Q&A Session Summary Question: Pending acquisition and potential restructuring - The company does not expect any asset-side restructuring on the investment portfolio, with excess liquidity likely to be reduced [16][17] Question: DDA balance trajectory - Management believes the company is at the bottom of the rotation cycle for DDA balances, with most rotation already completed [18][19] Question: Asset quality and CECL model changes - Criticized and classified loans were flat quarter-over-quarter, with no changes to baseline assumptions in the CECL model [23][24] Question: Pro forma margins post-acquisition - It is too early to provide a pro forma look at margins due to purchase accounting adjustments and deposit betas [29][30] Question: Loan growth expectations - The company expects a strong Q3 pipeline, with growth across all segments, particularly in commercial real estate [35][36] Question: Institutional fee income opportunities - The company sees strong momentum in AI Alternative Investments, Corporate Trust, and Wealth Management, with continued growth expected [40][41][42] Question: Expense savings post-acquisition - The company expects 40% of the $27.5 million cost savings in 2025, with the remainder in 2026 and beyond [45] Question: Bank card fees outlook - Bank card fees are expected to remain at the new level of $21 million to $22 million per quarter, driven by organic and inorganic growth [49][50] Question: Bond book repricing impact on margin - Late-quarter bond purchases were for collateral needs and are not expected to provide a tailwind for Q3 margins [53] Question: Heartland acquisition consolidation - The acquisition is seen as an opportunity to leverage the work Heartland has already done in consolidating systems, with minimal near-term risk [54][55]

| --- | --- | --- | |-------|--------------|-------| | | | | | | Quarter 2024 | | | | | | Presentation Index Corporate Overview 3 Acquisition Update 7 Our Investment Thesis 10 2nd Quarter 2024 Results 19 Line of Business Updates 35 Appendix 46 Board of Directors Forward-Looking Statements Peer Group Non-GAAP Reconciliations Please refer to the Forward-Looking Statements on slides 48-51 for important disclosures about information contained in this presentation. 2 Corporate Overview | --- | --- | --- | --- | ...

For the quarter ended June 2024, UMB Financial (UMBF) reported revenue of $396.43 million, up 7.1% over the same period last year. EPS came in at $2.16, compared to $1.93 in the year-ago quarter. The reported revenue represents a surprise of +3.15% over the Zacks Consensus Estimate of $384.33 million. With the consensus EPS estimate being $1.96, the EPS surprise was +10.20%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stree ...

Over the last four quarters, the company has surpassed consensus EPS estimates four times. While UMB has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 5 ...

UMB Financial Corporation News Release 1010 Grand Boulevard Kansas City, MO 64106 816.860.7000 umb.com • GAAP net income of $101.3 million, or $2.07 per diluted share. • Net operating income (i) of $105.9 million, or $2.16 per diluted share. • Average loans increased 7.7% on a linked-quarter, annualized basis, to $23.8 billion. • Average loans increased $1.6 billion, or 7.3%, as compared to the second quarter of 2023. • Average deposits increased 9.7% on a linked-quarter, annualized basis, to $34.3 billion. ...

Kuehn Law is investigating whether the Boards of the below companies 1) acted to maximize shareholder value, 2) failed to disclose material information, and 3) conducted a fair process: Alimera Sciences, Inc. has agreed to sell to ANI Pharmaceuticals, Inc. for $5.50 per share in cash at closing, plus a non-tradable contingent value right for up to $0.50 per share if specific net revenue targets are met in 2026 and 2027. BEST, Inc. has entered into a definitive agreement to merge with BEST Global Partners an ...

The Zacks Consensus Estimate for UMB Financial's 2024 and 2025 earnings have been revised upward by 14.4% and 16.3%, respectively, over the past 60 days, indicating that analysts are optimistic regarding its earnings growth potential. UMBF currently sports a Zacks Rank #1 (Strong Buy). Image Source: Zacks Investment Research Revenue Growth: UMB Financial has been witnessing steady revenue growth. The company's revenues witnessed a compound annual growth rate (CAGR) of 7.6% in the last five years (2018-2023) ...