UMB(UMBF) - 2024 Q4 - Annual Results

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]