UMB(US:UMBF)2021-10-28 13:02Financial Performance - Total net income for the three months ended September 30, 2021, was $94,467,000, compared to $73,092,000 for the same period in 2020, marking a significant increase of 29.2%[145]. - The company recorded net income of $274.5 million for the nine-month period ended September 30, 2021, a 110.5% increase from $130.2 million in the same period of 2020[231]. - Basic earnings per share for the nine-month period ended September 30, 2021 were $5.69, compared to $2.70 for the same period in 2020, representing a 110.7% increase[231]. - For the three months ended September 30, 2021, net interest income was $209,765,000, an increase from $184,384,000 in the same period of 2020, representing a growth of 13.8%[145]. - Net interest income for the nine-month period ended September 30, 2021 increased by $68.4 million, or 12.7%, compared to the same period in 2020[232]. Loan Portfolio and Credit Quality - Total loans as of September 30, 2021, amounted to $16,469,463 thousand, an increase from $16,103,651 thousand as of December 31, 2020[45]. - Nonaccrual loans with no related allowance for credit losses totaled $91,900 thousand at September 30, 2021, compared to $42,100 thousand at December 31, 2020, representing a 118.5% increase[47]. - Total past due loans amounted to $115,413 thousand as of September 30, 2021, compared to $99,644 thousand at December 31, 2020, reflecting a 15.83% increase[45]. - The company continues to monitor credit quality indicators, including trends in net charge-offs and non-performing loans, to assess the overall health of its loan portfolio[52]. - The company tracks individual borrower credit risk based on their loan to collateral position, with any borrower position where the collateral value is below the loan's fair value considered higher risk[61]. Allowance for Credit Losses - The allowance for credit losses (ACL) at the end of September 30, 2021, was $194,156,000, compared to $200,563,000 at the beginning of the period, reflecting a decrease of approximately 3%[110]. - The ACL for Commercial & Industrial loans is calculated using a probability of default (PD) and loss given default (LGD) method, with primary risk drivers being risk ratings and macroeconomic variables[99]. - The provision for credit losses for the three months ended September 30, 2021, was a reversal of $5,000,000 compared to a provision of $16,000,000 in the same period of 2020, indicating improved credit quality[145]. - The ACL for Consumer real estate and Consumer segments is measured using an origination vintage loss rate method, focusing on the year of origination and macroeconomic factors like unemployment[102]. - The allowance for credit losses (ACL) increased to $214,494 million as of September 30, 2021, from $203,605 million at the beginning of the period, reflecting a provision of $16,000 million[112]. Securities and Investments - Securities available for sale had a fair value of $11.163 billion as of September 30, 2021, up from $9.300 billion at December 31, 2020[119]. - The mortgage-backed securities portfolio was valued at $7.370 billion with unrealized losses of $66.164 million as of September 30, 2021[119]. - The company had no Allowance for Credit Losses (ACL) related to available-for-sale securities as of September 30, 2021, indicating no credit issues[125]. - The total amount of other securities decreased from $296,053 thousand as of December 31, 2020, to $274,645 thousand as of September 30, 2021[135]. - The total accrued interest on securities available for sale totaled $35.8 million as of September 30, 2021, down from $42.6 million at December 31, 2020[122]. Economic Conditions and Market Impact - The Company expects continued volatility in economic markets due to the COVID-19 pandemic, which may impact its balance sheet and income statement[227]. - The company emphasizes the importance of economic conditions on the performance of commercial real estate loans, particularly for non-owner-occupied properties[66]. - The company continues to assess the impact of economic cycles on loan performance, particularly for longer-term loans[75]. - The Company has a dynamic reasonable and supportable forecast period for credit losses that currently stands at one year due to economic conditions[97]. - The company reported a beginning balance of ACL of $218,583 million for the nine months ended September 30, 2020, indicating a significant increase in credit loss provisions compared to previous periods[113]. Shareholder Equity and Capital Management - Total shareholders' equity reached $3.1 billion as of September 30, 2021, an increase of $258.7 million, or 9.1%, from the previous year[229]. - The total risk-based capital ratio was 14.17% as of September 30, 2021, positively impacted by a $200 million subordinated note issuance in Q3 2020[229]. - The Company repurchased 2,035 shares of common stock at an average price of $88.76 per share during Q3 2021[229]. - Average assets for the three months ended September 30, 2021, were $35,873,000,000, compared to $29,481,000,000 in the same period of 2020, representing an increase of 21.7%[145]. - The Company aims to improve operating efficiencies and has identified ongoing efficiencies that will contribute to improved operating leverage[225].