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 ...

UMB Financial (UMBF) reported $412.72 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 14%. EPS of $2.25 for the same period compares to $2.02 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $398.83 million, representing a surprise of +3.48%. The company delivered an EPS surprise of +4.17%, with the consensus EPS estimate being $2.16.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings - ...

UMB Financial (UMBF) came out with quarterly earnings of $2.25 per share, beating the Zacks Consensus Estimate of $2.16 per share. This compares to earnings of $2.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 4.17%. A quarter ago, it was expected that this bank holding company would post earnings of $1.96 per share when it actually produced earnings of $2.16, delivering a surprise of 10.20%. Over the last four quarters, ...

[Executive Summary & Highlights](index=1&type=section&id=1_Executive_Summary_Highlights) UMB Financial Corporation reported strong Q3 2024 financial results with increased GAAP and net operating income, significant loan and deposit growth, and solid credit quality, while the Heartland Financial acquisition remains on track [Third Quarter 2024 Financial Highlights](index=1&type=section&id=1_1_Third_Quarter_2024_Financial_Highlights) UMB Financial Corporation reported strong third-quarter 2024 results with increased GAAP and net operating income, significant loan and deposit growth, and maintained strong credit quality Financial Highlights Summary | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :----- | :------ | :------ | :------ | | GAAP Net Income | $109.6 million | $101.3 million | $96.6 million | | GAAP Diluted EPS | $2.23 | $2.07 | $1.98 | | Net Operating Income (Non-GAAP) | $110.4 million | $105.9 million | $98.4 million | | Net Operating Diluted EPS (Non-GAAP) | $2.25 | $2.16 | $2.02 | | Average Loans (Linked-quarter annualized growth) | $24.4 billion | | | | Average Loans (YoY growth) | $1.6 billion | | | | Average Deposits (Linked-quarter annualized growth) | $35.3 billion | | | | Net Charge-offs (YTD) | 0.08% of average loans | | | [CEO Commentary](index=1&type=section&id=1_2_CEO_Commentary) CEO Mariner Kemper highlighted solid financial performance driven by strong institutional banking activity, leading to increased fee income and net interest income from loan growth, also noting a slight decrease in net interest margin due to deposit mix shifts and confirming the Heartland Financial acquisition is on track for Q1 2025 - Strong institutional banking activity contributed to a **9.5% increase** in fee income compared to the linked quarter[5](index=5&type=chunk) - Near-double digit annualized loan growth drove net interest income higher[5](index=5&type=chunk) - The pending acquisition of Heartland Financial is on track for completion in Q1 2025, aiming to add diversity and scale[6](index=6&type=chunk) [Third Quarter 2024 Earnings Discussion](index=2&type=section&id=2_Third_Quarter_2024_Earnings_Discussion) This section details UMB Financial Corporation's Q3 2024 earnings, covering net interest income, noninterest income, expenses, and tax performance [Summary of Quarterly Financial Results](index=2&type=section&id=2_1_Summary_of_Quarterly_Financial_Results) This section provides a detailed breakdown of GAAP and Non-GAAP financial metrics for Q3 2024, Q2 2024, and Q3 2023, including net income, EPS, operating pre-tax, pre-provision income, and key ratios like return on assets and efficiency ratio Quarterly Financial Results Summary | Metric | Q3 2024 ($ in thousands) | Q2 2024 ($ in thousands) | Q3 2023 ($ in thousands) | | :----- | :------ | :------ | :------ | | Net income (GAAP) | $109,643 | $101,345 | $96,554 | | Earnings per share - diluted (GAAP) | $2.23 | $2.07 | $1.98 | | Operating pre-tax, pre-provision income (Non-GAAP) | $154,594 | $146,840 | $126,592 | | Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP) | $3.15 | $3.00 | $2.60 | | Return on average assets (GAAP) | 1.01% | 0.96% | 0.97% | | Return on average equity (GAAP) | 12.63% | 12.73% | 13.25% | | Efficiency ratio (GAAP) | 61.69% | 63.37% | 64.51% | | Operating return on average assets (Non-GAAP) | 1.01% | 1.00% | 0.99% | | Operating return on average equity (Non-GAAP) | 12.71% | 13.30% | 13.50% | | Operating efficiency ratio (Non-GAAP) | 61.46% | 61.86% | 63.83% | [Summary of Year-to-Date Financial Results](index=3&type=section&id=2_2_Summary_of_Year_to_Date_Financial_Results) This section presents the year-to-date financial performance for September 30, 2024, compared to September 30, 2023, highlighting growth in net income, operating income, and improvements in efficiency ratios Year-to-Date Financial Results Summary | Metric | YTD 2024 ($ in thousands) | YTD 2023 ($ in thousands) | YoY Change | | :----- | :------- | :------- | :--------- | | Net income (GAAP) | $321,246 | $279,101 | +15.1% | | Earnings per share - diluted (GAAP) | $6.56 | $5.73 | +14.5% | | Operating pre-tax, pre-provision income (Non-GAAP) | $458,885 | $389,890 | +17.7% | | Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP) | $9.37 | $8.00 | +17.1% | | Return on average assets (GAAP) | 1.01% | 0.95% | +0.06 pp | | Return on average equity (GAAP) | 13.13% | 13.18% | -0.05 pp | | Efficiency ratio (GAAP) | 62.82% | 64.40% | -1.58 pp | | Operating return on average assets (Non-GAAP) | 1.06% | 0.97% | +0.09 pp | | Operating return on average equity (Non-GAAP) | 13.77% | 13.46% | +0.31 pp | | Operating efficiency ratio (Non-GAAP) | 61.12% | 63.68% | -2.56 pp | [Net Interest Income](index=3&type=section&id=2_3_Net_Interest_Income) Net interest income increased both linked-quarter and year-over-year, primarily driven by loan growth and higher earning assets, despite a slight decrease in net interest margin due to increased cost of interest-bearing liabilities and a shift in funding mix Net Interest Income Metrics | Metric | Q3 2024 ($ in thousands) | Q2 2024 ($ in thousands) | Q3 2023 ($ in thousands) | QoQ Change | YoY Change | | :----- | :------ | :------ | :------ | :--------- | :--------- | | Net interest income | $247,376 | $245,108 | $222,287 | +0.9% | +11.3% | | Net interest margin (FTE) | 2.46% | 2.51% | 2.43% | -5 bps | +3 bps | | Average earning assets (QoQ) | | | | +1.9% | | | Average loans (QoQ) | | | | +2.4% | | | Average interest-bearing liabilities (QoQ) | | | | +4.0% | | | Average noninterest-bearing demand deposits (QoQ) | | | | -5.9% | | | Cost of interest-bearing liabilities (QoQ) | 4.18% | 4.15% | | +3 bps | | | Total cost of funds (QoQ) | 3.16% | 3.06% | | +10 bps | | [Noninterest Income](index=5&type=section&id=2_4_Noninterest_Income) Noninterest income saw significant increases both linked-quarter and year-over-year, primarily driven by investment securities gains, growth in fund services and corporate trust income, and higher trading and investment banking activity Noninterest Income Breakdown | Metric | Q3 2024 ($ in thousands) | Q2 2024 ($ in thousands) | Q3 2023 ($ in thousands) | QoQ Change | YoY Change | | :----- | :------ | :------ | :------ | :--------- | :--------- | | Total noninterest income | $158,743 | $144,919 | $133,317 | +9.5% | +19.1% | | Investment securities gains (losses), net | $2,623 | ($1,867) | $271 | +$4,490 | +$2,352 | | Trust and securities processing | $74,222 | $70,010 | $66,668 | +$4,212 | +$7,554 | | Trading and investment banking | $7,118 | $5,461 | $3,771 | +$1,657 | +$3,347 | | Other noninterest income | $16,266 | $12,421 | $8,559 | +$3,845 | +$7,707 | | Service charges on deposit accounts | $20,089 | $22,261 | $21,080 | -$2,172 | -$991 | [Noninterest Expense](index=6&type=section&id=2_5_Noninterest_Expense) GAAP noninterest expense increased linked-quarter and year-over-year, primarily due to higher salaries and employee benefits, regulatory fees (partially offset by FDIC special assessment adjustments), processing fees, and legal/consulting expenses related to the Heartland Financial acquisition Noninterest Expense Breakdown | Metric | Q3 2024 ($ in thousands) | Q2 2024 ($ in thousands) | Q3 2023 ($ in thousands) | QoQ Change | YoY Change | | :----- | :------ | :------ | :------ | :--------- | :--------- | | Total noninterest expense (GAAP) | $252,454 | $249,067 | $231,441 | +1.4% | +9.1% | | Salaries and employee benefits | $146,984 | $142,861 | $133,380 | +$4,123 | +$13,604 | | Regulatory fees | $4,686 | $2,568 | $6,153 | +$2,118 | -$1,467 | | Legal and consulting | $9,518 | $16,566 | $7,230 | -$7,048 | +$2,288 | | Processing fees | $29,697 | $29,701 | $26,016 | -$4 | +$3,681 | [Income Taxes](index=7&type=section&id=2_6_Income_Taxes) The company's effective tax rate for the nine months ended September 30, 2024, increased to 19.0% from 18.1% in the prior year, mainly due to a smaller portion of income from tax-exempt municipal securities and higher non-deductible acquisition costs Income Tax Metrics | Metric | YTD 2024 | YTD 2023 | Change | | :----- | :------- | :------- | :----- | | Effective tax rate | 19.0% | 18.1% | +0.9 pp | - Increase in effective tax rate primarily due to a smaller portion of income from tax-exempt municipal securities and higher non-deductible acquisition costs[28](index=28&type=chunk) [Balance Sheet Overview](index=7&type=section&id=3_Balance_Sheet_Overview) This section provides an overview of UMB Financial Corporation's balance sheet, including average assets, loans, securities, and deposits [Average Total Assets](index=7&type=section&id=3_1_Average_Total_Assets) Average total assets for Q3 2024 increased to $43.3 billion, up from $42.5 billion in the linked quarter and $39.5 billion in Q3 2023, reflecting overall balance sheet growth Average Total Assets | Metric | Q3 2024 | Q2 2024 | Q3 2023 | QoQ Change | YoY Change | | :----- | :------ | :------ | :------ | :--------- | :--------- | | Average total assets | $43.3 billion | $42.5 billion | $39.5 billion | +$0.8 billion | +$3.8 billion | [Average Loans and Leases](index=8&type=section&id=3_2_Average_Loans_and_Leases) Average loans for Q3 2024 grew by 2.4% linked-quarter and 7.2% year-over-year, reaching $24.4 billion, with significant increases in commercial real estate and commercial and industrial loans Average Loans and Leases by Category | Loan Category | Q3 2024 Average ($ in thousands) | Q2 2024 Average ($ in thousands) | Q3 2023 Average ($ in thousands) | QoQ Change ($ in thousands) | YoY Change ($ in thousands) | | :------------ | :-------------- | :-------------- | :-------------- | :--------- | :--------- | | Total loans | $24,387,163 | $23,805,829 | $22,751,467 | +$581,334 | +$1,635,696 | | Commercial and industrial | $10,176,502 | $9,926,855 | $9,852,335 | +$249,647 | +$324,167 | | Commercial real estate | $9,669,076 | $9,360,991 | $8,545,206 | +$308,085 | +$1,123,870 | | Credit cards | $613,663 | $617,502 | $477,904 | -$3,839 | +$135,759 | [Average Securities](index=8&type=section&id=3_3_Average_Securities) Average total securities remained relatively stable, with a slight linked-quarter increase of 0.3% and a slight year-over-year decrease of 0.2%, while the portfolio continues to hold significant unrealized losses, particularly in held-to-maturity securities Average Securities and Unrealized Losses | Metric | Q3 2024 Average ($ in thousands) | Q2 2024 Average ($ in thousands) | Q3 2023 Average ($ in thousands) | QoQ Change | YoY Change | | :----- | :-------------- | :-------------- | :-------------- | :--------- | :--------- | | Total securities | $12,744,105 | $12,700,238 | $12,765,684 | +0.3% | -0.2% | | Unrealized pre-tax net loss (AFS) | $449.4 million | | | | | | Unrealized pre-tax net loss (HTM) | $563.5 million | | | | | [Average Deposits](index=10&type=section&id=3_4_Average_Deposits) Average deposits increased 2.8% linked-quarter and 12.6% year-over-year, reaching $35.3 billion, though noninterest-bearing demand deposits decreased both sequentially and annually, impacting the overall deposit mix Average Deposits by Category | Deposit Category | Q3 2024 Average ($ in thousands) | Q2 2024 Average ($ in thousands) | Q3 2023 Average ($ in thousands) | QoQ Change | YoY Change | | :--------------- | :-------------- | :-------------- | :-------------- | :--------- | :--------- | | Total deposits | $35,291,956 | $34,340,761 | $31,330,447 | +2.8% | +12.6% | | Noninterest-bearing demand | $9,502,106 | $10,103,035 | $10,014,686 | -5.9% | -5.1% | | Interest-bearing demand and savings | $23,779,651 | $21,914,116 | $18,142,212 | +8.5% | +31.1% | | Time deposits | $2,010,199 | $2,323,610 | $3,173,549 | -13.5% | -36.7% | | Noninterest bearing deposits as % of total | 26.9% | 29.4% | 32.0% | -2.5 pp | -5.1 pp | [Capital & Asset Quality](index=10&type=section&id=4_Capital_Asset_Quality) This section reviews UMB Financial Corporation's capital adequacy and asset quality, including regulatory ratios, equity, and credit loss provisions [Capital Information](index=10&type=section&id=4_1_Capital_Information) UMB Financial Corporation maintained strong capital ratios as of September 30, 2024, exceeding all "well-capitalized" regulatory thresholds, with total equity and book value per common share increasing significantly year-over-year Capital Ratios and Equity | Metric | Sep 30, 2024 ($ in thousands) | Jun 30, 2024 ($ in thousands) | Sep 30, 2023 ($ in thousands) | QoQ Change | YoY Change | | :----- | :----------- | :----------- | :----------- | :--------- | :--------- | | Total equity | $3,535,489 | $3,227,347 | $2,806,659 | +9.6% | +25.9% | | Book value per common share | $72.45 | $66.21 | $57.83 | +9.4% | +25.3% | | Tangible book value per common share (Non-GAAP) | $66.86 | $60.58 | $52.06 | +10.4% | +28.4% | | Common equity Tier 1 capital ratio | 11.22% | 11.14% | 10.77% | +0.08 pp | +0.45 pp | | Tier 1 risk-based capital ratio | 11.22% | 11.14% | 10.77% | +0.08 pp | +0.45 pp | | Total risk-based capital ratio | 13.14% | 13.08% | 12.68% | +0.06 pp | +0.46 pp | | Tier 1 leverage ratio | 8.58% | 8.50% | 8.55% | +0.08 pp | +0.03 pp | - All regulatory capital ratios exceeded "well-capitalized" thresholds[35](index=35&type=chunk) [Asset Quality](index=10&type=section&id=4_2_Asset_Quality) Credit quality remained strong, although net charge-offs increased in Q3 2024 compared to prior periods, and the provision for credit losses also increased, primarily reflecting loan growth Asset Quality Metrics | Metric | Q3 2024 ($ in thousands) | Q2 2024 ($ in thousands) | Q3 2023 ($ in thousands) | QoQ Change | YoY Change | | :----- | :------ | :------ | :------ | :--------- | :--------- | | Net charge-offs - total loans | $8,454 | $2,856 | $4,618 | +196.0% | +83.1% | | Net loan charge-offs as % of total average loans | 0.14% | 0.05% | 0.08% | +0.09 pp | +0.06 pp | | Loans over 90 days past due | $7,133 | $5,644 | $3,044 | +26.4% | +134.4% | | Nonaccrual and restructured loans | $19,291 | $13,743 | $17,042 | +40.4% | +13.2% | | Provision for credit losses | $18,000 | $14,050 | $4,977 | +28.1% | +261.7% | - Increase in provision for credit losses driven by **$793.3 million** linked-quarter and **$2.1 billion** year-over-year increases in period-end loans[37](index=37&type=chunk) [Corporate Actions & Information](index=12&type=section&id=5_Corporate_Actions_Information) This section covers UMB Financial Corporation's dividend declaration, conference call details, non-GAAP financial information, and forward-looking statements [Dividend Declaration](index=12&type=section&id=5_1_Dividend_Declaration) The Board of Directors approved a 2.6% increase in the quarterly cash dividend to $0.40 per share, payable on January 2, 2025 - Quarterly cash dividend increased by **2.6%** to **$0.40 per share**[39](index=39&type=chunk) - Dividend payable on January 2, 2025, to shareholders of record on December 10, 2024[39](index=39&type=chunk) [Conference Call](index=12&type=section&id=5_2_Conference_Call) UMB Financial Corporation will host a conference call on October 30, 2024, at 8:30 a.m. (CT) to discuss its third-quarter 2024 earnings results, with replay available through November 13, 2024 - Q3 2024 earnings conference call scheduled for Wednesday, October 30, 2024, at 8:30 a.m. (CT)[39](index=39&type=chunk) - Replay available through November 13, 2024[40](index=40&type=chunk) [Non-GAAP Financial Information](index=12&type=section&id=5_3_Non_GAAP_Financial_Information) This section defines and explains various non-GAAP financial measures used in the release, such as net operating income, operating EPS, operating ROE, operating ROA, operating noninterest expense, operating efficiency ratio, operating PTPP, and tangible book value per share, which adjust for acquisition- and severance-related items and the FDIC special assessment to provide insights into fundamental operating performance - Non-GAAP measures adjust for acquisition-related items, severance expense, and the FDIC special assessment[41](index=41&type=chunk) - Net operating income is GAAP net income adjusted to reflect the impact of excluding expenses related to acquisitions, severance expense, the FDIC special assessment, and the cumulative tax impact of these adjustments[42](index=42&type=chunk) - Operating PTPP income is GAAP net interest income plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions and severance, and the FDIC special assessment[44](index=44&type=chunk) [Forward-Looking Statements](index=13&type=section&id=5_4_Forward_Looking_Statements) This standard disclaimer advises readers that the press release contains forward-looking statements subject to various assumptions, risks, and uncertainties, and actual results may differ materially, with the company not undertaking to update these statements except as required by law - Forward-looking statements convey expectations, intentions, or forecasts about future events, circumstances, results, or aspirations, which are subject to assumptions, risks, and uncertainties[47](index=47&type=chunk) - The company does not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the statement was made, except to the extent required by applicable securities laws[47](index=47&type=chunk) [About UMB](index=13&type=section&id=5_5_About_UMB) UMB Financial Corporation is a Kansas City-headquartered financial services company offering commercial, personal, and institutional banking services across multiple states and to business and institutional clients nationwide and internationally - UMB Financial Corporation is a financial services company headquartered in Kansas City, Missouri[48](index=48&type=chunk) - Offers commercial banking, personal banking (wealth management and financial planning services), and institutional banking (asset servicing, corporate trust solutions, investment banking, and healthcare services)[48](index=48&type=chunk) - Operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona, and Texas, serving business clients nationwide and institutional clients in several countries[48](index=48&type=chunk) [Consolidated Financial Statements](index=15&type=section&id=6_Consolidated_Financial_Statements) This section presents UMB Financial Corporation's consolidated balance sheets, statements of income, comprehensive income, and shareholders' equity [Consolidated Balance Sheets](index=15&type=section&id=6_1_Consolidated_Balance_Sheets) The consolidated balance sheet shows total assets increased to $47.5 billion as of September 30, 2024, from $41.5 billion in the prior year, driven by growth in loans, securities, and interest-bearing due from banks, with total deposits also increasing significantly Consolidated Balance Sheet | Metric | Sep 30, 2024 ($ in thousands) | Sep 30, 2023 ($ in thousands) | YoY Change | | :----- | :----------- | :----------- | :--------- | | Total assets | $47,496,428 | $41,464,682 | +14.5% | | Net loans | $24,741,884 | $22,660,227 | +9.2% | | Total securities | $12,992,024 | $12,558,160 | +3.5% | | Interest-bearing due from banks | $6,601,866 | $3,556,076 | +85.7% | | Total deposits | $39,702,592 | $33,431,752 | +18.7% | | Total liabilities | $43,960,939 | $38,658,023 | +13.7% | | Total shareholders' equity | $3,535,489 | $2,806,659 | +25.9% | [Consolidated Statements of Income](index=16&type=section&id=6_2_Consolidated_Statements_of_Income) The consolidated statement of income for Q3 2024 shows strong growth in net interest income and noninterest income compared to Q3 2023, leading to a significant increase in net income despite higher provision for credit losses and noninterest expenses Consolidated Statements of Income | Metric | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | YoY Change | YTD 2024 ($ in thousands) | YTD 2023 ($ in thousands) | YTD YoY Change | | :----- | :------ | :------ | :--------- | :------- | :------- | :------------- | | Total interest income | $557,694 | $471,976 | +18.2% | $1,616,041 | $1,342,103 | +20.4% | | Total interest expense | $310,318 | $249,689 | +24.3% | $884,123 | $652,509 | +35.5% | | Net interest income | $247,376 | $222,287 | +11.3% | $731,918 | $689,594 | +6.1% | | Provision for credit losses | $18,000 | $4,977 | +261.7% | $42,050 | $41,227 | +2.0% | | Total noninterest income | $158,743 | $133,317 | +19.1% | $462,906 | $401,599 | +15.3% | | Total noninterest expense | $252,454 | $231,441 | +9.1% | $756,325 | $709,166 | +6.6% | | Income before income taxes | $135,665 | $119,186 | +13.8% | $396,449 | $340,800 | +16.3% | | Income tax expense | $26,022 | $22,632 | +15.0% | $75,203 | $61,699 | +21.9% | | NET INCOME | $109,643 | $96,554 | +13.5% | $321,246 | $279,101 | +15.1% | | Diluted EPS | $2.23 | $1.98 | +12.6% | $6.56 | $5.73 | +14.5% | [Consolidated Statements of Comprehensive Income](index=17&type=section&id=6_3_Consolidated_Statements_of_Comprehensive_Income) The consolidated statements of comprehensive income show a significant increase in comprehensive income for Q3 2024 and YTD 2024, primarily driven by positive changes in unrealized gains and losses on debt securities and derivative hedges, net of tax Consolidated Statements of Comprehensive Income | Metric | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | YoY Change | YTD 2024 ($ in thousands) | YTD 2023 ($ in thousands) | YTD YoY Change | | :----- | :------ | :------ | :--------- | :------- | :------- | :------------- | | Net income | $109,643 | $96,554 | +13.5% | $321,246 | $279,101 | +15.1% | | Other comprehensive income (loss), before tax | $277,682 | ($140,556) | N/A | $212,831 | ($118,576) | N/A | | Comprehensive income (loss) | $319,421 | ($9,986) | N/A | $482,325 | $189,465 | +154.6% | - Significant positive change in unrealized gains and losses on debt securities and derivative hedges contributed to the increase in comprehensive income[51](index=51&type=chunk) [Consolidated Statements of Shareholders' Equity](index=18&type=section&id=6_4_Consolidated_Statements_of_Shareholders_Equity) Total shareholders' equity increased significantly from January 1, 2024, to September 30, 2024, primarily due to total comprehensive income, partially offset by dividends and treasury stock purchases Consolidated Statements of Shareholders' Equity | Metric | Sep 30, 2024 ($ in thousands) | Jan 1, 2024 ($ in thousands) | Change | | :----- | :----------- | :---------- | :----- | | Total Shareholders' Equity | $3,535,489 | $3,100,419 | +14.0% | | Retained Earnings | $3,074,617 | $2,810,824 | +9.4% | | Accumulated other comprehensive loss, net | ($395,856) | ($556,935) | +28.9% (reduction in loss) | [Average Balances and Rates](index=20&type=section&id=7_Average_Balances_and_Rates) This section details UMB Financial Corporation's average balances and corresponding yields/rates for earning assets and interest-bearing liabilities [Average Balances and Rates - Q3 2024 vs Q3 2023](index=20&type=section&id=7_1_Average_Balances_and_Rates_Q3_2024_vs_Q3_2023) This section details the average balances and corresponding yields/rates for earning assets and interest-bearing liabilities for Q3 2024 compared to Q3 2023, showing increases in loan yields and interest-bearing deposit costs Average Balances and Rates - Q3 2024 vs Q3 2023 | Metric | Q3 2024 Average Balance ($ in thousands) | Q3 2024 Average Yield/Rate | Q3 2023 Average Balance ($ in thousands) | Q3 2023 Average Yield/Rate | | :----- | :---------------------- | :------------------------- | :---------------------- | :------------------------- | | Loans, net of unearned interest | $24,387,163 | 6.79% | $22,751,467 | 6.41% | | Total earning assets | $41,022,254 | 5.47% | $37,369,882 | 5.08% | | Interest-bearing deposits | $25,789,850 | 4.05% | $21,315,761 | 3.57% | | Total interest-bearing liabilities | $29,552,483 | 4.18% | $25,949,040 | 3.82% | | Net interest spread | | 1.29% | | 1.26% | [Average Balances and Rates - Q2 2024 vs Q2 2023](index=21&type=section&id=7_2_Average_Balances_and_Rates_Q2_2024_vs_Q2_2023) This section provides average balances and rates for Q2 2024 compared to Q2 2023, showing similar trends of increased earning asset yields and higher costs for interest-bearing liabilities Average Balances and Rates - Q2 2024 vs Q2 2023 | Metric | Q2 2024 Average Balance ($ in thousands) | Q2 2024 Average Yield/Rate | Q2 2023 Average Balance ($ in thousands) | Q2 2023 Average Yield/Rate | | :----- | :---------------------- | :------------------------- | :---------------------- | :------------------------- | | Loans, net of unearned interest | $23,850,976 | 6.73% | $22,076,977 | 6.17% | | Total earning assets | $40,382,473 | 5.41% | $37,363,726 | 4.87% | | Interest-bearing deposits | $24,500,489 | 3.96% | $20,638,982 | 3.18% | | Total interest-bearing liabilities | $28,664,704 | 4.12% | $25,232,460 | 3.46% | | Net interest spread | | 1.29% | | 1.41% | [Segment Reporting](index=22&type=section&id=8_Segment_Reporting) This section provides a breakdown of UMB Financial Corporation's financial performance by Commercial, Institutional, and Personal Banking segments [Three Months Ended September 30, 2024](index=22&type=section&id=8_1_Three_Months_Ended_September_30_2024) Commercial Banking was the largest contributor to net income in Q3 2024, followed by Institutional Banking, while Personal Banking reported a net loss Segment Performance for September 30, 2024 | Segment | Net Interest Income ($ in thousands) | Provision for Credit Losses ($ in thousands) | Noninterest Income ($ in thousands) | Noninterest Expense ($ in thousands) | Net Income (Loss) ($ in thousands) | | :------ | :------------------ | :-------------------------- | :----------------- | :------------------ | :---------------- | | Commercial Banking | $167,769 | $15,764 | $30,223 | $85,198 | $78,503 | | Institutional Banking | $45,341 | $435 | $100,687 | $102,565 | $34,881 | | Personal Banking | $34,266 | $1,801 | $27,833 | $64,691 | ($3,741) | | Total | $247,376 | $18,000 | $158,743 | $252,454 | $109,643 | [Three Months Ended September 30, 2023](index=22&type=section&id=8_2_Three_Months_Ended_September_30_2023) In Q3 2023, Commercial Banking and Institutional Banking were profitable, with Commercial Banking being the largest contributor to net income, while Personal Banking incurred a net loss Segment Performance for September 30, 2023 | Segment | Net Interest Income ($ in thousands) | Provision for Credit Losses ($ in thousands) | Noninterest Income ($ in thousands) | Noninterest Expense ($ in thousands) | Net Income (Loss) ($ in thousands) | | :------ | :------------------ | :-------------------------- | :----------------- | :------------------ | :---------------- | | Commercial Banking | $148,666 | $3,010 | $23,091 | $81,767 | $70,799 | | Institutional Banking | $43,133 | $423 | $86,521 | $87,502 | $33,932 | | Personal Banking | $30,488 | $1,544 | $23,705 | $62,172 | ($8,177) | | Total | $222,287 | $4,977 | $133,317 | $231,441 | $96,554 | [Nine Months Ended September 30, 2024](index=22&type=section&id=8_3_Nine_Months_Ended_September_30_2024) For the nine months ended September 30, 2024, Commercial Banking and Institutional Banking were profitable, with Commercial Banking being the primary driver of net income, while Personal Banking reported a net loss Segment Performance for September 30, 2024 | Segment | Net Interest Income ($ in thousands) | Provision for Credit Losses ($ in thousands) | Noninterest Income ($ in thousands) | Noninterest Expense ($ in thousands) | Net Income (Loss) ($ in thousands) | | :------ | :------------------ | :-------------------------- | :----------------- | :------------------ | :---------------- | | Commercial Banking | $485,503 | $34,763 | $100,908 | $263,397 | $234,504 | | Institutional Banking | $146,703 | $1,760 | $288,495 | $298,472 | $109,950 | | Personal Banking | $99,712 | $5,527 | $73,503 | $194,456 | ($23,208) | | Total | $731,918 | $42,050 | $462,906 | $756,325 | $321,246 | [Nine Months Ended September 30, 2023](index=22&type=section&id=8_4_Nine_Months_Ended_September_30_2023) For the nine months ended September 30, 2023, Commercial Banking and Institutional Banking were profitable, with Commercial Banking contributing the most to net income, and Personal Banking reporting a net loss Segment Performance for September 30, 2023 | Segment | Net Interest Income ($ in thousands) | Provision for Credit Losses ($ in thousands) | Noninterest Income ($ in thousands) | Noninterest Expense ($ in thousands) | Net Income (Loss) ($ in thousands) | | :------ | :------------------ | :-------------------------- | :----------------- | :------------------ | :---------------- | | Commercial Banking | $444,083 | $35,110 | $71,658 | $251,667 | $188,237 | | Institutional Banking | $148,615 | $754 | $257,573 | $268,464 | $112,565 | | Personal Banking | $96,896 | $5,363 | $72,368 | $189,035 | ($21,701) | | Total | $689,594 | $41,227 | $401,599 | $709,166 | $279,101 | [Non-GAAP Reconciliations](index=24&type=section&id=9_Non_GAAP_Reconciliations) This section provides reconciliations of UMB Financial Corporation's GAAP to non-GAAP financial measures, including net operating income and efficiency ratios [Net Operating Income Reconciliations](index=24&type=section&id=9_1_Net_Operating_Income_Reconciliations) This section reconciles GAAP net income to non-GAAP net operating income by adjusting for acquisition expense, severance expense, and FDIC special assessment, showing the impact of these items on net income and related ratios for both quarterly and year-to-date periods Net Operating Income Reconciliations | Metric | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | YTD 2024 ($ in thousands) | YTD 2023 ($ in thousands) | | :----- | :------ | :------ | :------- | :------- | | Net income (GAAP) | $109,643 | $96,554 | $321,246 | $279,101 | | Total Non-GAAP adjustments (net of tax) | $715 | $1,846 | $15,697 | $5,976 | | Net operating income (Non-GAAP) | $110,358 | $98,400 | $336,943 | $285,077 | | Operating earnings per share - diluted (Non-GAAP) | $2.25 | $2.02 | $6.88 | $5.85 | | Operating return on average assets (Non-GAAP) | 1.01% | 0.99% | 1.06% | 0.97% | [Operating Efficiency Ratio Reconciliations](index=25&type=section&id=9_2_Operating_Efficiency_Ratio_Reconciliations) This section reconciles GAAP noninterest expense to operating noninterest expense and calculates the operating efficiency ratio by adjusting for acquisition expense, severance expense, and FDIC special assessment, providing a clearer view of core operational efficiency Operating Efficiency Ratio Reconciliations | Metric | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | YTD 2024 ($ in thousands) | YTD 2023 ($ in thousands) | | :----- | :------ | :------ | :------- | :------- | | Noninterest expense (GAAP) | $252,454 | $231,441 | $756,325 | $709,166 | | Total Non-GAAP adjustments (pre-tax) | $929 | $2,429 | $20,386 | $7,863 | | Operating noninterest expense (Non-GAAP) | $251,525 | $229,012 | $735,939 | $701,303 | | Operating efficiency ratio (Non-GAAP) | 61.46% | 63.83% | 61.12% | 63.68% | [Operating Pre-Tax, Pre-Provision Income Reconciliations](index=26&type=section&id=9_3_Operating_Pre_Tax_Pre_Provision_Income_Reconciliations) This section reconciles GAAP pre-tax, pre-provision income to its non-GAAP operating counterpart by adjusting noninterest expense for specific non-operating items, offering a view of profitability before taxes and credit provisions, and excluding one-time or non-core expenses Operating Pre-Tax, Pre-Provision Income Reconciliations | Metric | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | YTD 2024 ($ in thousands) | YTD 2023 ($ in thousands) | | :----- | :------ | :------ | :------- | :------- | | Net interest income (GAAP) | $247,376 | $222,287 | $731,918 | $689,594 | | Noninterest income (GAAP) | $158,743 | $133,317 | $462,906 | $401,599 | | Noninterest expense (GAAP) | $252,454 | $231,441 | $756,325 | $709,166 | | Total Non-GAAP adjustments (pre-tax) | $929 | $2,429 | $20,386 | $7,863 | | Operating pre-tax, pre-provision income (Non-GAAP) | $154,594 | $126,592 | $458,885 | $389,890 | | Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP) | $3.15 | $2.60 | $9.37 | $8.00 | [Operating Pre-Tax, Pre-Provision Income - FTE Reconciliations](index=27&type=section&id=9_4_Operating_Pre_Tax_Pre_Provision_Income_FTE_Reconciliations) This section provides a reconciliation of GAAP net interest income to a fully tax-equivalent (FTE) basis and then calculates operating pre-tax, pre-provision income on an FTE basis, adjusting for non-GAAP items, to allow for better comparability across different tax treatments Operating Pre-Tax, Pre-Provision Income - FTE Reconciliations | Metric | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | YTD 2024 ($ in thousands) | YTD 2023 ($ in thousands) | | :----- | :------ | :------ | :------- | :------- | | Net interest income (GAAP) | $247,376 | $222,287 | $731,918 | $689,594 | | Net interest income - FTE (Non-GAAP) | $253,977 | $228,846 | $751,442 | $709,283 | | Operating pre-tax, pre-provision income - FTE (Non-GAAP) | $161,195 | $133,151 | $478,409 | $409,579 | | Operating pre-tax, pre-provision income - FTE earnings per share - diluted (Non-GAAP) | $3.28 | $2.73 | $9.76 | $8.40 | [Tangible Book Value Reconciliations](index=27&type=section&id=9_5_Tangible_Book_Value_Reconciliations) This section reconciles GAAP total shareholders' equity to non-GAAP tangible shareholders' equity by subtracting goodwill and other intangible assets, providing a measure of equity excluding intangible assets, and calculates tangible book value per share Tangible Book Value Reconciliations | Metric | Sep 30, 2024 ($ in thousands) | Sep 30, 2023 ($ in thousands) | YoY Change | | :----- | :----------- | :----------- | :--------- | | Total shareholders' equity (GAAP) | $3,535,489 | $2,806,659 | +25.9% | | Total intangibles, net | $272,949 | $280,445 | -2.7% | | Total tangible shareholders' equity (Non-GAAP) | $3,262,540 | $2,526,214 | +29.1% | | Tangible book value per share (Non-GAAP) | $66.86 | $52.06 | +28.4% |