Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...

UMB Financial Corporation (UMBF) shares touched a 52-week high of $106.54 on Monday. The stock closed the session a little lower at $105.8, gaining 30.5% in the past three months. The stock has outperformed the industry and its peers like Commerce Bancshares, Inc. (CBSH) and 1st Source Corporation (SRCE) in the same time frame. Image Source: Zacks Investment Research Three-Month Price Performance Chart Factors Leading to UMBF Stock's New 52-Week High A major factor for this upward movement of UMBF stock can ...

A month has gone by since the last earnings report for UMB Financial (UMBF) . Shares have added about 0.4% in that time frame, underperforming 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 its most recent earnings report in order to get a better handle on the important drivers. UMB Financial Q2 Earnings Top Estimates UMB Financial's ...

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 ...

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 ...

Company Performance - UMB Financial (UMBF) reported quarterly earnings of $2.16 per share, exceeding the Zacks Consensus Estimate of $1.96 per share, and up from $1.93 per share a year ago [3] - The company achieved revenues of $396.43 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 3.15%, compared to $370.27 million in the same quarter last year [7] - UMB has surpassed consensus EPS estimates four times over the last four quarters [1] Stock Performance - UMB shares have increased approximately 17.3% since the beginning of the year, outperforming the S&P 500's gain of 14.5% [4] - The current status of estimate revisions for UMB is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [5] Industry Outlook - The Zacks Industry Rank for Banks - Midwest is currently in the top 26% of over 250 Zacks industries, suggesting a favorable outlook for the industry [2] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [11] Future Expectations - The current consensus EPS estimate for the upcoming quarter is $1.99 on revenues of $388.17 million, and for the current fiscal year, it is $8.04 on revenues of $1.56 billion [14]

[Second Quarter 2024 Financial Highlights](index=1&type=section&id=Second%20Quarter%202024%20Financial%20Highlights) The second quarter of 2024 highlights key GAAP and non-GAAP financial metrics, including net income, EPS, and growth in loans and deposits Key Financial Highlights for Q2 2024 | Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | GAAP Net Income (Millions USD) | 101.3 | 110.3 | 90.1 | | GAAP Diluted EPS | 2.07 | 2.25 | 1.85 | | Operating Net Income (Non-GAAP, Millions USD) | 105.9 | 120.7 | 93.8 | | Operating Diluted EPS (Non-GAAP) | 2.16 | 2.47 | 1.93 | | Average Loan Growth (QoQ Annualized) | 7.7% | - | - | | Average Deposit Growth (QoQ Annualized) | 9.7% | - | - | | Net Interest Margin | 2.51% | 2.48% | 2.44% | | Average Loan Net Charge-off Rate | 0.05% | 0.05% | (0.00%) | [Second Quarter 2024 Earnings Discussion](index=2&type=section&id=Second%20Quarter%202024%20earnings%20discussion) This section provides a detailed analysis of UMB Financial Corporation's Q2 2024 earnings, covering net interest income, noninterest income, noninterest expense, and income taxes [Overview of Quarterly Financial Results](index=2&type=section&id=Summary%20of%20quarterly%20financial%20results) UMB Financial Corporation reported Q2 2024 GAAP net income of $101.3 million and diluted EPS of $2.07, showing a sequential decline but year-over-year improvement, with non-GAAP metrics indicating strong underlying operations Overview of Quarterly and Half-Year Financial Results | Metric | Q2 2024 | Q1 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | | **GAAP** | | | | | | | Net Income (Thousands USD) | 101,345 | 110,258 | 90,110 | 211,603 | 182,547 | | Diluted EPS | 2.07 | 2.25 | 1.85 | 4.32 | 3.75 | | Return on Average Assets | 0.96% | 1.06% | 0.90% | 1.01% | 0.93% | | Return on Average Equity | 12.73% | 14.11% | 12.56% | 13.41% | 13.14% | | Efficiency Ratio | 63.37% | 63.44% | 65.59% | 63.41% | 64.34% | | **Non-GAAP** | | | | | | | Operating Pre-Tax, Pre-Provision Income (Thousands USD) | 146,840 | 157,451 | 127,929 | 304,291 | 263,298 | | Operating Diluted EPS | 2.16 | 2.47 | 1.93 | 4.63 | 3.83 | | Operating Return on Average Assets | 1.00% | 1.16% | 0.93% | 1.08% | 0.95% | | Operating Return on Average Equity | 13.30% | 15.44% | 13.08% | 14.36% | 13.44% | | Operating Efficiency Ratio | 61.86% | 60.04% | 64.24% | 60.94% | 63.61% | [Net Interest Income](index=3&type=section&id=Net%20interest%20income) Net interest income for Q2 2024 increased sequentially by $5.7 million and year-over-year by $19.5 million, driven by loan growth and liquidity, with net interest margin expanding to 2.51% Net Interest Income and Net Interest Margin | Metric | Q2 2024 | Q1 2024 | Q2 2023 | QoQ Change (Thousands USD) | YoY Change (Thousands USD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Interest Income (Thousands USD) | 245,108 | 239,434 | 225,611 | 5,674 | 19,497 | | Net Interest Margin (FTE) | 2.51% | 2.48% | 2.44% | +0.03% | +0.07% | | Cost of Interest-Bearing Liabilities | 4.15% | 4.03% | 3.27% | +0.12% | +0.88% | | Average Loan Yield | 6.77% | 6.64% | 6.20% | +0.13% | +0.57% | | Yield on Earning Assets | 5.44% | 5.31% | 4.91% | +0.13% | +0.53% | [Noninterest Income](index=5&type=section&id=Noninterest%20income) Noninterest income decreased sequentially by $14.3 million to $144.9 million, primarily due to reduced investment securities gains and other miscellaneous income, yet showed year-over-year growth Noninterest Income Breakdown (Thousands USD) | Item | Q2 2024 | Q1 2024 | Q2 2023 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Trust and Securities Processing | 70,010 | 69,478 | 61,589 | 532 | 8,421 | | Trading and Investment Banking | 5,461 | 5,462 | 4,800 | (1) | 661 | | Deposit Account Service Charges | 22,261 | 20,757 | 21,381 | 1,504 | 880 | | Bankcard Fees | 22,346 | 21,968 | 18,579 | 378 | 3,767 | | Net Gains (Losses) on Investment Securities | (1,867) | 9,371 | 900 | (11,238) | (2,767) | | Other | 12,421 | 18,765 | 17,004 | (6,344) | (4,583) | | **Total Noninterest Income** | **144,919** | **159,244** | **138,082** | **(14,325)** | **6,837** | - The sequential decline was primarily driven by a **$11.2 million reduction in net gains on investment securities**, mainly due to an $8.6 million gain from the disposition of two non-marketable securities in Q1 and a $2.6 million decrease in the value of a non-marketable security in Q2; other miscellaneous income also decreased by $5.8 million, related to a $4.0 million legal settlement and $1.8 million land sale gain recorded in Q1[10](index=10&type=chunk)[68](index=68&type=chunk) - Year-over-year growth was primarily driven by a **$5.6 million increase in fund services income**, a $1.5 million increase in corporate trust income, and a $1.3 million increase in trust income, all recorded within trust and securities processing; bankcard income increased by $3.8 million due to higher interchange revenue and lower rebates and rewards expense; and deposit account service charges increased by $1.0 million, related to increased healthcare revenue from client transfers and conversions[11](index=11&type=chunk)[69](index=69&type=chunk)[90](index=90&type=chunk) [Noninterest Expense](index=6&type=section&id=Noninterest%20expense) GAAP noninterest expense decreased sequentially by $5.7 million to $249.1 million, driven by lower regulatory fees, but increased year-over-year due to acquisition-related legal and consulting costs Noninterest Expense Breakdown (Thousands USD) | Item | Q2 2024 | Q1 2024 | Q2 2023 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Salaries and Employee Benefits | 142,861 | 143,006 | 143,312 | (145) | (451) | | Net Occupancy | 11,723 | 12,270 | 11,746 | (547) | (23) | | Equipment | 15,603 | 16,503 | 17,086 | (900) | (1,483) | | Processing Fees | 29,701 | 27,936 | 26,572 | 1,765 | 3,129 | | Legal and Consulting | 16,566 | 7,894 | 7,059 | 8,672 | 9,507 | | Bankcard | 11,818 | 10,567 | 8,307 | 1,251 | 3,511 | | Regulatory Fees | 2,568 | 19,395 | 6,123 | (16,827) | (3,555) | | **Total Noninterest Expense** | **249,067** | **254,804** | **240,673** | **(5,737)** | **8,394** | - The sequential decrease was primarily driven by a **$16.8 million reduction in regulatory fees**, benefiting from an industry-wide decrease in FDIC special assessment fees; this decrease was partially offset by an $8.7 million increase in legal and consulting fees related to the Heartland Financial USA, Inc. acquisition, a $1.8 million increase in processing fees, and a $1.3 million increase in bankcard expenses[13](index=13&type=chunk)[37](index=37&type=chunk)[70](index=70&type=chunk) - The year-over-year increase was primarily driven by a **$9.5 million increase in legal and consulting fees**, mainly related to the Heartland Financial USA, Inc. acquisition, and a **$3.5 million increase in bankcard expenses**[14](index=14&type=chunk)[38](index=38&type=chunk)[72](index=72&type=chunk) [Income Taxes](index=8&type=section&id=Income%20taxes) The effective tax rate for the first half of 2024 rose to 18.9% due to a lower proportion of tax-exempt income and reduced excess tax benefits from equity awards - The effective tax rate for the six months ended June 30, 2024, increased to **18.9%** (compared to 17.6% for the same period in 2023), primarily due to a lower proportion of income from tax-exempt municipal securities and reduced excess tax benefits related to equity awards[15](index=15&type=chunk)[92](index=92&type=chunk) [Balance Sheet Analysis](index=8&type=section&id=Balance%20sheet) This section analyzes UMB Financial Corporation's balance sheet, focusing on average earning assets, loans, deposits, and the securities portfolio [Average Earning Assets](index=9&type=section&id=Average%20earning%20assets) Average total assets grew to $42.5 billion in Q2 2024, primarily driven by increased average loans and interest-bearing bank deposits, partially offset by reduced average securities Average Assets Overview (Billions USD) | Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Average Total Assets | 42.5 | 42.0 | 40.4 | | Average Earning Assets | 40.2 | 39.9 | 38.2 | - Average earning assets increased sequentially by **$359.7 million (0.9%)**, driven by a $451.8 million increase in average loans and a $182.8 million increase in interest-bearing bank deposits, partially offset by a $314.6 million decrease in average securities[5](index=5&type=chunk) - Compared to Q2 2023, average earning assets increased by **$2.0 billion (5.2%)**, driven by an increase in average loans and a $779.2 million increase in interest-bearing bank deposits, partially offset by a $360.3 million decrease in average securities[88](index=88&type=chunk) [Average Loans](index=1&type=section&id=Average%20loans) Average loans increased sequentially by $451.8 million and year-over-year by $1.6 billion to $23.8 billion in Q2 2024, with growth across commercial real estate, consumer real estate, and credit card categories Average Loans and Leases Overview (Thousands USD) | Loan Category | Q2 2024 | Q1 2024 | Q2 2023 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial and Industrial | 9,926,855 | 9,942,457 | 9,724,300 | (15,602) | 202,555 | | Specialty Loans | 502,646 | 485,989 | 574,220 | 16,657 | (71,574) | | Commercial Real Estate | 9,360,991 | 9,026,511 | 8,178,463 | 334,480 | 1,182,528 | | Consumer Real Estate | 2,998,560 | 2,968,320 | 2,833,739 | 30,240 | 164,821 | | Consumer | 159,743 | 154,062 | 139,705 | 5,681 | 20,038 | | Credit Card | 617,502 | 489,546 | 485,749 | 127,956 | 131,753 | | Leases and Other | 239,532 | 287,158 | 255,425 | (47,626) | (15,893) | | **Total Loans** | **23,805,829** | **23,354,043** | **22,191,601** | **451,786** | **1,614,228** | [Average Deposits](index=1&type=section&id=Average%20deposits) Average deposits grew sequentially by $814.6 million and year-over-year by $2.9 billion to $34.3 billion in Q2 2024, reflecting a shift towards interest-bearing categories Average Deposits Overview (Thousands USD) | Deposit Category | Q2 2024 | Q1 2024 | Q2 2023 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Noninterest-Bearing Demand Deposits | 10,103,035 | 10,066,409 | 10,535,325 | 36,626 | (432,290) | | Interest-Bearing Demand and Savings | 21,914,116 | 20,701,659 | 17,463,022 | 1,212,457 | 4,451,094 | | Time Deposits | 2,323,610 | 2,758,064 | 3,476,616 | (434,454) | (1,153,006) | | **Total Deposits** | **34,340,761** | **33,526,132** | **31,474,963** | **814,629** | **2,865,798** | | Noninterest-Bearing Deposits as % of Total Deposits | 29.4% | 30.0% | 33.5% | -0.6% | -4.1% | - Average noninterest-bearing demand deposit balances decreased by **4.1% year-over-year**, primarily due to the continued shift of funds to interest-bearing deposit categories in a higher interest rate environment[9](index=9&type=chunk) - Average interest-bearing liabilities increased sequentially by **$375.9 million (1.3%)**, driven by a $778.0 million increase in interest-bearing deposits, partially offset by a $439.0 million decrease in borrowed funds[60](index=60&type=chunk) [Securities Portfolio](index=9&type=section&id=Securities%20portfolio) Average total securities decreased sequentially by $314.6 million and year-over-year by $360.3 million, with significant pre-tax unrealized net losses in both available-for-sale and held-to-maturity portfolios Average Securities Overview (Thousands USD) | Securities Category | Q2 2024 | Q1 2024 | Q2 2023 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Available-for-Sale Securities | 6,650,812 | 6,865,302 | 6,816,223 | (214,490) | (165,411) | | Total Held-to-Maturity Securities | 5,575,030 | 5,652,804 | 5,824,010 | (77,774) | (248,980) | | Trading Securities | 26,381 | 17,893 | 12,538 | 8,488 | 13,843 | | Other Securities | 448,015 | 478,805 | 407,754 | (30,790) | 40,261 | | **Total Securities** | **12,700,238** | **13,014,804** | **13,060,525** | **(314,566)** | **(360,287)** | - As of June 30, 2024, the available-for-sale securities portfolio had a pre-tax unrealized net loss of **$678.7 million**, representing 8.7% of amortized cost, while the held-to-maturity securities portfolio had a pre-tax unrealized net loss of **$636.2 million**, representing 11.5% of amortized cost[94](index=94&type=chunk) [Asset Quality](index=1&type=section&id=Asset%20Quality) Credit quality remained strong in Q2 2024 with an average loan net charge-off rate of 0.05%, nonperforming loans decreasing to 0.06% of total loans, and an increased provision for credit losses Credit Quality Metrics (Thousands USD) | Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Net Charge-offs (Recoveries) on Loans | 2,856 | 3,017 | (139) | | Net Charge-offs (Recoveries) on Loans as % of Average Loans | 0.05% | 0.05% | (0.00%) | | Loans 90 Days or More Past Due | 5,644 | 3,076 | 10,675 | | Loans 90 Days or More Past Due as % of Total Loans | 0.02% | 0.01% | 0.05% | | Nonperforming and Restructured Loans | 13,743 | 17,756 | 19,347 | | Nonperforming and Restructured Loans as % of Total Loans | 0.06% | 0.08% | 0.09% | | Provision for Credit Losses | 14,050 | 10,000 | 13,000 | - Nonperforming loans decreased to **0.06% of total loans** in the second quarter[57](index=57&type=chunk) - The provision for credit losses increased sequentially by **$4.1 million** and year-over-year by **$1.1 million** in the second quarter; these changes were primarily driven by the ongoing recalibration of the economic loss model and macroeconomic drivers for certain loan portfolios, as well as a **$600 million increase in period-end loans** from March 31, 2024[96](index=96&type=chunk) [Capital and Dividends](index=9&type=section&id=Capital) Regulatory capital ratios exceeded 'well-capitalized' thresholds as of June 30, 2024, with the board declaring a quarterly cash dividend of $0.39 per share Capital and Dividends Overview (Thousands USD, except per share data) | Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Quarterly Dividend (Per Share) | 0.39 | 0.39 | 0.38 | | Total Shareholders' Equity (GAAP) | 3,227,347 | 3,152,816 | 2,831,628 | | Tangible Shareholders' Equity (Non-GAAP) | 2,952,821 | 2,878,247 | 2,549,059 | | Book Value Per Share (GAAP) | 66.21 | 64.68 | 58.36 | | Tangible Book Value Per Share (Non-GAAP) | 60.58 | 59.01 | 52.54 | - As of June 30, 2024, all regulatory capital ratios exceeded all "well-capitalized" regulatory thresholds[18](index=18&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.39 per share**, payable on October 1, 2024, to shareholders of record at the close of business on September 10, 2024[44](index=44&type=chunk) [Non-GAAP Financial Information](index=12&type=section&id=Non-GAAP%20Financial%20Information) This section provides definitions and reconciliation tables for non-GAAP financial measures used by UMB Financial Corporation to offer insights into underlying operational performance [Non-GAAP Financial Information Definitions](index=12&type=section&id=Non-GAAP%20Financial%20Information%20Definitions) This section defines UMB Financial Corporation's non-GAAP financial metrics, including operating net income, operating EPS, and tangible shareholders' equity, adjusted for specific acquisition, severance, and FDIC assessment items - Operating net income is defined as GAAP net income, adjusted to exclude expenses related to acquisitions, severance, and FDIC special assessments, along with the cumulative tax impact of these adjustments[45](index=45&type=chunk) - Operating pre-tax, pre-provision income (Operating PTPP) is defined as GAAP net interest income plus GAAP noninterest income, less noninterest expense, adjusted to exclude the impact of expenses related to acquisitions, severance, and FDIC special assessments[22](index=22&type=chunk) - Tangible shareholders' equity is defined as GAAP shareholders' equity less intangible assets, and tangible book value per share is defined as tangible shareholders' equity divided by the company's total common shares outstanding[46](index=46&type=chunk) [Non-GAAP Reconciliations](index=23&type=section&id=Non-GAAP%20reconciliations) Detailed reconciliation tables are provided for GAAP to non-GAAP financial metrics, including operating net income and tangible book value, highlighting the impact of acquisition, severance, and FDIC special assessment adjustments Non-GAAP Financial Measures Reconciliations (Thousands USD, except per share data) | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Operating Net Income Reconciliation** | | | | | | Net Income (GAAP) | 101,345 | 90,110 | 211,603 | 182,547 | | Adjustments (Net of Tax) | 4,528 | 3,731 | 14,982 | 4,130 | | **Operating Net Income (Non-GAAP)** | **105,873** | **93,841** | **226,585** | **186,677** | | **Operating Pre-Tax, Pre-Provision Income Reconciliation** | | | | | | Net Interest Income (GAAP) | 245,108 | 225,611 | 484,542 | 467,307 | | Noninterest Income (GAAP) | 144,919 | 138,082 | 304,163 | 268,282 | | Noninterest Expense (GAAP) | (249,067) | (240,673) | (503,871) | (477,725) | | Adjustments (Pre-Tax) | 5,880 | 4,909 | 19,457 | 5,434 | | **Operating Pre-Tax, Pre-Provision Income (Non-GAAP)** | **146,840** | **127,929** | **304,291** | **263,298** | | **Tangible Shareholders' Equity Reconciliation** | | | | | | Total Shareholders' Equity (GAAP) | 3,227,347 | 2,831,628 | - | - | | Less: Intangible Assets | (274,526) | (282,569) | - | - | | **Tangible Shareholders' Equity (Non-GAAP)** | **2,952,821** | **2,549,059** | - | - | [Consolidated Financial Statements](index=14&type=section&id=Consolidated%20Financial%20Statements) This section presents the consolidated financial statements of UMB Financial Corporation, including statements of income, shareholders' equity, comprehensive income, and balance sheets [Consolidated Statements of Income](index=15&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income for Q2 2024 show total interest income of $538.3 million, total interest expense of $293.2 million, resulting in net interest income of $245.1 million and net income of $101.3 million Consolidated Statements of Income (Thousands USD) | Item | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Interest Income | 538,282 | 461,380 | 1,058,347 | 870,127 | | 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 | | Total Noninterest Income | 144,919 | 138,082 | 304,163 | 268,282 | | Total Noninterest Expense | 249,067 | 240,673 | 503,871 | 477,725 | | Income Tax Expense | 25,565 | 19,910 | 49,181 | 39,067 | | **Net Income** | **101,345** | **90,110** | **211,603** | **182,547** | | Diluted EPS | 2.07 | 1.85 | 4.32 | 3.75 | [Consolidated Statements of Shareholders' Equity](index=17&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) The consolidated statements of shareholders' equity detail changes in common stock, capital surplus, retained earnings, and other components, with total equity reaching $3.227 billion as of June 30, 2024 Consolidated Statements of Shareholders' Equity (Thousands USD) | Item | Balance as of January 1, 2024 | Balance as of June 30, 2024 | | :--- | :--- | :--- | | Common Stock | 55,057 | 55,057 | | Capital Surplus | 1,134,363 | 1,132,301 | | Retained Earnings | 2,810,824 | 2,984,152 | | Accumulated Other Comprehensive Loss, Net | (556,935) | (605,634) | | Treasury Stock | (342,890) | (338,529) | | **Total Shareholders' Equity** | **3,100,419** | **3,227,347** | [Consolidated Statements of Comprehensive Income](index=17&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The consolidated statements of comprehensive income show total comprehensive income of $162.9 million for the first half of 2024, comprising net income offset by other comprehensive losses Consolidated Statements of Comprehensive Income (Thousands USD) | Item | Q2 2024 | Q1 2024 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Income | 101,345 | 110,258 | 211,603 | 182,547 | | Other Comprehensive (Loss) Income, Net | (11,096) | (59,055) | (48,699) | 16,904 | | **Comprehensive Income** | **90,249** | **31,055** | **162,904** | **199,451** | [Consolidated Balance Sheets](index=14&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets as of June 30, 2024, report total assets of $44.5 billion, total liabilities of $41.2 billion, with key assets including loans and securities, and total deposits of $36.5 billion Consolidated Balance Sheets (Thousands USD) | Item | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Net Loans | 23,958,295 | 22,261,381 | | Total Securities | 13,130,638 | 12,933,414 | | Interest-Bearing Bank Deposits | 4,640,418 | 3,369,911 | | **Total Assets** | **44,469,414** | **41,243,042** | | **Liabilities** | | | | Total Deposits | 36,517,570 | 33,520,461 | | Federal Funds Purchased and Repurchase Agreements | 2,217,033 | 2,050,583 | | Short-Term Borrowings | 1,300,000 | 1,800,000 | | **Total Liabilities** | **41,242,067** | **38,411,414** | | **Shareholders' Equity** | | | | **Total Shareholders' Equity** | **3,227,347** | **2,831,628** | [Average Balances and Rates](index=19&type=section&id=Average%20Balances%20and%20Rates) This section details average balances and corresponding yields/rates for earning assets and interest-bearing liabilities for Q2 2024 and Q2 2023, highlighting increases in earning assets and deposits, and expanded yields and rates Average Balances and Rates (Thousands USD, except percentages) | Item | 2024 Average Balance | 2024 Average Yield/Rate | 2023 Average Balance | 2023 Average Yield/Rate | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Net Loans | 23,805,829 | 6.77% | 22,191,601 | 6.20% | | Total Securities | 12,673,857 | 2.95% | 13,047,987 | 2.66% | | Interest-Bearing Bank Deposits | 3,486,907 | 5.44% | 2,707,740 | 5.07% | | **Total Earning Assets** | **40,239,106** | **5.44%** | **38,236,325** | **4.91%** | | **Liabilities** | | | | | | Interest-Bearing Deposits | 24,237,726 | 3.99% | 20,939,638 | 3.27% | | Federal Funds and Repurchase Agreements | 2,421,727 | 4.66% | 2,336,929 | 4.25% | | Borrowed Funds | 1,744,448 | 5.66% | 3,137,267 | 5.17% | | **Total Interest-Bearing Liabilities** | **28,403,901** | **4.15%** | **26,413,834** | **3.58%** | | **Net Interest Spread** | | **1.29%** | | **1.33%** | [Segment Information](index=21&type=section&id=Segment%20Information) UMB Financial Corporation operates through Commercial Banking, Institutional Banking, and Personal Banking segments, with Commercial Banking being the largest net income contributor in Q2 2024 Segment Performance Overview (Thousands USD) | Item | Commercial Banking | Institutional Banking | Personal Banking | Total | | :--- | :--- | :--- | :--- | :--- | | **Q2 2024** | | | | | | Net Interest Income | 160,487 | 51,502 | 33,119 | 245,108 | | Noninterest Income | 27,720 | 95,092 | 22,107 | 144,919 | | Noninterest Expense | 85,780 | 95,531 | 67,756 | 249,067 | | Net Income (Loss) | 73,089 | 40,920 | (12,664) | 101,345 | | **YTD 2024** | | | | | | Net Interest Income | 317,734 | 101,362 | 65,446 | 484,542 | | Noninterest Income | 70,686 | 187,808 | 45,669 | 304,163 | | Noninterest Expense | 178,199 | 195,907 | 129,765 | 503,871 | | Net Income (Loss) | 156,068 | 75,110 | (19,575) | 211,603 | - The company has strategically divided its business into three reportable segments: Commercial Banking, Institutional Banking, and Personal Banking; senior management regularly assesses the financial performance of these business segments to determine resource allocation and evaluate performance[104](index=104&type=chunk) [About UMB](index=13&type=section&id=About%20UMB) UMB Financial Corporation, based in Kansas City, Missouri, provides commercial, personal, and institutional banking services across multiple states and globally, focusing on client relationships and growth - UMB Financial Corporation is a financial services company headquartered in Kansas City, Missouri, offering commercial banking, personal banking, and institutional banking services; the company operates across several U.S. states and serves commercial clients nationwide and institutional clients globally, committed to building strong client relationships and planning for continued growth through initiatives like the Heartland Financial acquisition[2](index=2&type=chunk)[7](index=7&type=chunk)[47](index=47&type=chunk) [UMB Financial Q2 2024 Conference Call](index=11&type=section&id=UMB%20Financial%202Q%202024%20Conference%20Call) UMB Financial Corporation will host a conference call on July 31, 2024, to discuss its Q2 2024 earnings, with participation and replay details provided - UMB Financial Corporation will host a conference call on Wednesday, July 31, 2024, at 8:30 a.m. Central Time, to discuss its second-quarter 2024 earnings results; participants can join by dialing toll-free 833-470-1428 or international 404-975-4839 and entering access code 944750; a live webcast of the call will also be accessible via investorrelations.umb.com, with a replay service available until August 14, 2024[20](index=20&type=chunk)[78](index=78&type=chunk)[97](index=97&type=chunk) [Forward-Looking Statements](index=13&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements subject to assumptions, risks, and uncertainties beyond the company's control, where actual results may differ materially, with no obligation to update - This press release contains forward-looking statements that involve expectations, intentions, or projections about future events, circumstances, or results; these statements are subject to assumptions, risks, and uncertainties, many of which are beyond the company's control, and investors should not consider any forward-looking statement as a prediction or guarantee of future performance; actual results may differ materially from forward-looking statements, and readers are advised to consult the company's filings with the U.S. Securities and Exchange Commission (SEC), such as annual reports on Form 10-K, quarterly reports on Form 10-Q, or current reports on Form 8-K, for more detailed disclosures of risk factors; the company undertakes no obligation to update any forward-looking statements unless required by applicable securities laws[23](index=23&type=chunk)[100](index=100&type=chunk)