Core Viewpoint - UMB Financial Corp. reported strong fourth-quarter 2024 results, with operating earnings per share of $2.49, exceeding estimates and showing year-over-year growth [1][2]. Financial Performance - Fourth-quarter net income on a GAAP basis was $119.9 million, reflecting a 69.2% increase year over year [2]. - For the full year 2024, operating earnings per share reached $12.75, surpassing the consensus estimate of $9.23 and increasing from $10.76 in 2023 [3]. - Total net income for 2024 was $441.2 million, up 26% from the previous year [3]. Revenue and Expenses - Quarterly revenues amounted to $440.5 million, a 16.7% increase year over year, and exceeded the Zacks Consensus Estimate by 6.4% [4]. - For 2024, total revenue was $1.65 billion, surpassing the consensus estimate of $1.62 billion and rising 10.7% year over year [4]. - Non-interest income for the fourth quarter was $165.2 million, up 17.8% year over year, driven by increases in various fee income components [5]. - Non-interest expenses decreased to $270.4 million, down 6.8% year over year, primarily due to lower regulatory fees [6]. Loans and Deposits - As of December 31, 2024, average loans and leases were $25.3 billion, up 3.7% sequentially, while average deposits increased 7.7% to $38.1 billion [7]. Credit Quality - The ratio of net charge-offs to average loans was 0.14%, up from 0.02% in the prior-year quarter, indicating a decline in credit quality [8]. - Total non-accrual and restructured loans rose to $19.3 million, a 45.9% increase year over year [8]. - The provision for credit losses for the fourth quarter was $19 million, compared to no provision in the year-ago quarter [8]. Capital Ratios - As of December 31, 2024, the Tier 1 risk-based capital ratio was 11.29%, up from 10.94% a year earlier [9]. - The Tier 1 leverage ratio increased to 8.50% from 8.49% as of December 31, 2023 [9]. - The total risk-based capital ratio grew to 13.21%, up from 12.85% in the prior year [9]. Profitability Ratios - Return on average assets at the end of the quarter was 1.06%, an increase from 0.69% in the year-ago quarter [10]. - The operating return on average equity was 13.82%, down from 15.04% in the prior-year quarter [10]. Overall Assessment - UMB Financial benefits from strong revenue growth driven by rising loan and deposit balances, alongside diversified fee income, although concerns remain regarding deteriorating asset quality [11].

4th Quarter 2024 Update January 28, 2025 Kansas City, MO Presentation Index | Corporate Overview | 3 | | --- | --- | | Acquisition Update | 7 | | Our Investment Thesis | 10 | | 4th Quarter 2024 Results | 18 | | Line of Business Updates | 34 | | Appendix | 45 | Board of Directors Peer Group Non-GAAP Reconciliations Forward-Looking Statements HTLF Financial Update Please refer to the Forward-Looking Statements on slides 49-51 for important disclosures about information contained in this presentation. 2 Corpor ...

Financial Performance - UMB Financial reported $440.55 million in revenue for Q4 2024, a year-over-year increase of 16.7% [1] - The EPS for the same period was $2.49, compared to $2.29 a year ago, reflecting an increase [1] - Revenue exceeded the Zacks Consensus Estimate by 6.40%, which was $414.06 million [1] - EPS also surpassed the consensus estimate of $2.30 by 8.26% [1] Key Metrics - Efficiency Ratio (GAAP) was 61.8%, higher than the four-analyst average estimate of 60.8% [4] - Net interest margin (FTE) was 2.6%, slightly above the 2.5% estimated by four analysts [4] - Net loan charge-offs as a percentage of total average loans were 0.1%, better than the three-analyst average estimate of 0.2% [4] - Average balance of total earning assets was $42.62 billion, exceeding the $41.81 billion estimate by three analysts [4] - Tier 1 risk-based capital ratio was 11.3%, matching the estimate by two analysts [4] - Tier 1 Leverage Ratio was 8.5%, slightly above the 8.4% average estimate [4] - Total Risk-based Capital Ratio was 13.2%, consistent with the estimate by two analysts [4] - Net interest income (FTE) was $275.34 million, surpassing the four-analyst average estimate of $262.91 million [4] - Total noninterest income reached $165.21 million, compared to the $150.91 million average estimate [4] - Bankcard fees were $21.09 million, below the $22.34 million average estimate [4] - Service charges on deposit accounts were $21.41 million, exceeding the $20.13 million average estimate [4] - Trust and securities processing income was $76.86 million, above the $74.69 million estimate [4] Stock Performance - UMB shares returned +7.1% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Company Performance - UMB Financial (UMBF) reported quarterly earnings of $2.49 per share, exceeding the Zacks Consensus Estimate of $2.30 per share, and up from $2.29 per share a year ago, representing an earnings surprise of 8.26% [1] - The company posted revenues of $440.55 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.40%, compared to year-ago revenues of $377.45 million [2] - UMB has consistently surpassed consensus EPS estimates over the last four quarters [2] Stock Outlook - UMB shares have increased approximately 7.3% since the beginning of the year, outperforming the S&P 500's gain of 2.2% [3] - The current consensus EPS estimate for the upcoming quarter is $2.02 on revenues of $455.63 million, and for the current fiscal year, it is $9.40 on revenues of $2.35 billion [7] - The estimate revisions trend for UMB is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - Midwest industry, to which UMB belongs, is currently in the top 8% of over 250 Zacks industries, suggesting a strong industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Fourth quarter 2024 net income was $120.0 million, or $2.44 per diluted share, up from $109.6 million in the third quarter and $70.9 million in the fourth quarter of 2023[3] - Full-year 2024 net income reached a record $441.2 million, with net operating income of $461.7 million and net interest income surpassing $1.0 billion[5] - GAAP net income for the year ended December 31, 2024, was $441.2 million, or $8.99 per diluted share, representing an increase of 16.3% compared to $350.0 million, or $7.18 per diluted share in 2023[15] - Operating pre-tax, pre-provision income for 2024 was $625.8 million, or $12.75 per diluted share, representing a 19.2% increase from 2023[16] - The net income for the year ended December 31, 2024, was $441,243,000, up from $350,024,000 in 2023, representing a year-over-year increase of about 26%[52] Loan and Deposit Growth - Average loans increased 14.8% on a linked-quarter annualized basis to $25.3 billion, and rose $2.2 billion, or 9.4%, compared to the fourth quarter of 2023[6] - Average deposits increased 30.9% on a linked-quarter annualized basis to $38.0 billion, with average noninterest-bearing demand deposits rising 12.0%[6] - Average loans for Q4 2024 increased by $902.6 million, or 3.7%, on a linked-quarter basis and $2.2 billion, or 9.4%, compared to Q4 2023, totaling $25.3 billion[22] - Total deposits reached $43,142,029, compared to $35,792,859, reflecting a growth of approximately 20.5%[43] - The total interest-bearing deposits increased to $25,224,201,000 in 2024 from $21,122,305,000 in 2023, marking a growth of approximately 19%[48] Income and Expense Analysis - Net interest income for the fourth quarter was $269.0 million, an increase of $21.6 million, or 8.7%, from the linked quarter[11] - Noninterest income increased $6.5 million, or 4.1%, on a linked-quarter basis, driven by gains from the sale of UMB Distribution Services and increased brokerage income[13] - Full-year net interest income increased by $80.8 million, or 8.8%, driven by a $3.3 billion, or 8.9%, increase in average earning assets[19] - Total noninterest expense for the year ended December 31, 2024, was $1,026,686 thousand, up from $999,140 thousand in 2023, reflecting a 2.8% increase[44] - Noninterest expense for Q4 2024 was $270,361 thousand, a decrease of 6.0% from $289,974 thousand in Q4 2023[53] Efficiency and Ratios - The efficiency ratio improved to 61.83% in the fourth quarter, down from 77.65% in the previous year[9] - The efficiency ratio improved to 62.56% in 2024 from 67.76% in 2023, indicating better operational efficiency[16] - The company's return on average assets for the year ended December 31, 2024, was 1.02%, compared to 0.88% in 2023, showing an improvement in efficiency[52] Credit Quality - Credit quality remained strong, with net charge-offs at just 0.10% of average loans for the year ended December 31, 2024[6] - Net charge-offs for Q4 totaled $8.9 million, or 0.14% of average loans, consistent with the previous quarter[29] - Provision for credit losses increased by $1.0 million from the linked quarter and $19.0 million from Q4 2023[35] - The provision for credit losses for the year 2024 was $61,050 thousand, compared to $41,227 thousand in 2023, indicating a 48.3% increase[44] Shareholder Information - The company declared a quarterly cash dividend of $0.40 per share, payable on April 1, 2025[31] - The company declared dividends of $0.40 per share for Q4 2024, slightly up from $0.39 in Q4 2023[44] - Total shareholders' equity as of December 31, 2024, was $3,466,541 thousand, up from $3,100,419 thousand in 2023, representing a growth of 11.8%[55] Company Overview - UMB Financial Corporation is headquartered in Kansas City, Missouri, and offers a range of financial services including commercial banking, personal banking, and institutional banking[41] - The company operates branches across multiple states including Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona, and Texas[42] - UMB serves business clients nationwide and institutional clients in several countries, indicating a broad market reach[42]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for UMB Financial, driven by higher revenues, with a focus on how actual results will compare to estimates [1][2]. Company Summary - UMB Financial is expected to report quarterly earnings of $2.30 per share, reflecting a year-over-year change of +0.4% [3]. - Revenues are projected to be $414.06 million, representing a 9.7% increase from the previous year [3]. - The consensus EPS estimate has been revised 0.37% higher in the last 30 days, indicating a slight positive adjustment by analysts [4]. Earnings Prediction Insights - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for UMB is lower than the consensus estimate, resulting in an Earnings ESP of -2.47%, indicating a bearish outlook [10][11]. - Despite the negative Earnings ESP, UMB holds a Zacks Rank of 2 (Buy), complicating predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, UMB exceeded the expected earnings of $2.16 per share by delivering $2.25, achieving a surprise of +4.17% [12]. - Over the past four quarters, UMB has consistently beaten consensus EPS estimates [13]. Industry Comparison - Associated Banc-Corp, a peer in the Midwest banking industry, is expected to report earnings of $0.55 per share, with a year-over-year change of +3.8% and revenues of $343.34 million, up 6.6% from the previous year [17]. - The consensus EPS estimate for Associated Banc-Corp has been revised 4.4% higher recently, resulting in a positive Earnings ESP of 3.64%, suggesting a likely earnings beat [18].

Liquidity and Capital Distribution - UMB Financial had $1.43 billion in debt and $7.4 billion in cash and due from banks as of Sept 30, 2024, indicating strong liquidity [1] - The company has raised dividends annually since 2002, with a 2.6% hike announced in October 2024 [2] - UMB Financial approved repurchasing up to one million shares of its common stock in Q1 2024, with no repurchases made to date [2] - The company's capital distribution activities are sustainable due to solid liquidity and favorable debt-to-equity ratio [2] Financial Performance and Metrics - UMB Financial's ROE of 13.80% outperforms the industry average of 10.42%, reflecting efficient use of shareholder funds [9] - The company's shares rallied 38.9% over the past six months, outperforming the industry's 26% rise [5] - Net interest income (NII) grew at a CAGR of 8.2% over the last four years, with the uptrend continuing in the first nine months of 2024 [12] - Federal Reserve rate cuts are expected to stabilize funding costs and benefit NII [12] Balance Sheet and Growth - UMB Financial witnessed net loan growth at a CAGR of 13% and deposit growth at a CAGR of 9.8% from 2020 to 2023 [11] - The acquisition of Heartland Financial will strengthen the company's balance sheet by adding meaningful loans and deposits [11] Challenges and Competition - Non-interest expenses increased at a CAGR of 6.4% over the last four years, with higher salaries and employee benefits costs impacting bottom-line growth [3] - UMB Financial faces intense competition from FinTech companies and online service providers, which are less regulated [4] Industry Comparison - Civista Bancshares (CIVB) shares gained 44.7% over the past six months, with earnings estimates unchanged at $1.92 for 2024 [6] - Lakeland Financial Corp (LKFN) shares gained 15.2% over the past six months, with earnings estimates unchanged at $3.42 for 2024 [7]

Group 1 - UMB Financial's shares have increased by over 35% in 2024, although they are down more than 10% from their peak [1] - The decline in UMB Financial's stock price is in line with trends observed in many regional banks, attributed to the rise in long-term yields [1] - The article emphasizes a contrarian investment approach based on macro views and stock-specific turnaround stories to achieve favorable risk/reward profiles [1]

A month has gone by since the last earnings report for UMB Financial (UMBF) . Shares have added about 13.4% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is UMB due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. UMB Financial Q3 Earnings Beat on Higher NII & Fee Income, ...

During the Q3 2024 release day, Heartland Financial (NASDAQ: HTLF ) reported a 4.38% increase in price per share, yet its quarterly results were not very exciting: normalized EPS was in line with expectations and revenues were below expectations.Hi there, welcome to my profile. My name is Eugenio Catone, I live in Italy and I am 26 years old. In 2023 I graduated in Business Administration and I am completing my studies. My interest in financial markets started about 5 years ago when I accidentally came acro ...