Financial Position - As of March 31, 2023, cash and cash equivalents totaled $3,523,304, a decrease of 47.3% from $6,686,658 on March 31, 2022[27]. - The Company reported a total loan portfolio of $21,812,972 as of March 31, 2023, compared to $21,031,189 as of December 31, 2022, indicating an increase of 3.7%[41]. - The total loans reported as of March 31, 2023, amounted to $21,812,972,000, reflecting a significant portfolio size[46]. - As of March 31, 2023, total loans amounted to $21.03 billion, an increase from $19.12 billion as of December 31, 2022[47]. - Total borrowed funds as of March 31, 2023, amounted to $3,181,796,000, an increase from $381,311,000 as of December 31, 2022[143]. Loan Performance - Nonaccrual loans with no related allowance for credit losses amounted to $13,900 at March 31, 2023, down from $16,700 at December 31, 2022, reflecting a decrease of 16.8%[42]. - The Company sold consumer real estate loans with proceeds of $13.7 million in Q1 2023, compared to $9.5 million in Q1 2022, representing a year-over-year increase of 44.2%[41]. - The Company has ceased the recognition of interest on loans with a carrying value of $15.5 million as of March 31, 2023, down from $19.3 million at December 31, 2022, a decrease of 19.7%[42]. - The Company’s consumer loans that are 90 days past due or more are classified as non-performing, with a focus on monitoring delinquencies across its portfolio[38]. - The total loans with no related allowance for credit losses increased to $15,480,000 in March 2023 from $19,269,000 in December 2022, indicating a decrease of approximately 19.5%[43]. Credit Quality - The Company maintains an independent loan review department to continually assess risk, ensuring sound credit policies are adhered to[32]. - The risk grading matrix indicates that a significant portion of loans are classified as non-watch list, with a total of $4.11 billion in this category[55]. - The company has identified $1.94 billion in loans under the "Watch" category, indicating higher than average risk[55]. - The total amount of loans classified as "Substandard" was $153.56 million, reflecting potential weaknesses in repayment prospects[55]. - The company continues to monitor credit quality indicators, including trends in net charge-offs and non-performing loans[49]. Allowance for Credit Losses - The allowance for credit losses (ACL) for the total portfolio increased to $212,850,000 as of March 31, 2023, from $194,243,000 a year earlier, reflecting a provision of $23,250,000 during the quarter[105]. - Charge-offs for the three months ended March 31, 2023, totaled $5,834,000, while recoveries amounted to $1,191,000, resulting in a net charge-off impact on the ACL[105]. - The ACL for Commercial & Industrial and Leases segments is calculated using a probability of default (PD) and loss given default (LGD) method, with primary risk drivers being individual loan risk ratings and macroeconomic changes[95]. - The Company actively monitors credit quality indicators, including economic forecasts and borrower financial records, to adjust risk ratings and expected credit losses accordingly[101]. - The total allowance for credit losses on off-balance sheet credit exposures was $3,088,000 as of March 31, 2023, unchanged from the previous period[105]. Securities and Investments - The total securities available for sale decreased from $7,006,347 million on December 31, 2022, to $6,907,897 million on March 31, 2023, indicating a decline of approximately 1.3%[115]. - The company reported gross unrealized losses of $682.2 million on available-for-sale investments as of March 31, 2023, with $641.6 million attributed to securities held for more than 12 months[120]. - The total fair value of held-to-maturity investments was $4,795,170, with unrealized losses amounting to $(522,399) compared to $4,850,756 and $(598,569) as of December 31, 2022[130]. - The mortgage-backed securities portfolio had a fair value of $2,565,532 with unrealized losses of $(346,680) as of March 31, 2023, compared to $2,570,735 and $(392,530) as of December 31, 2022[130]. - The Company reported no net unrealized gains or losses on trading securities at March 31, 2023, compared to net unrealized losses of $280,000 at March 31, 2022[136]. Income and Expenses - Net interest income for the three months ended March 31, 2023, was $241,696,000, up from $210,355,000 in the same period of 2022, reflecting a growth of approximately 14.9%[158]. - Noninterest income for the three months ended March 31, 2023, was $130,200,000, an increase from $123,678,000 in the same period of 2022[158]. - Brokerage fees amounted to $13.7 million for Q1 2023, compared to $3.5 million in Q1 2022, reflecting a significant increase of 292%[170]. - Bankcard fees generated $18.2 million in Q1 2023, up from $16.6 million in Q1 2022, indicating a growth of 9.0%[170]. - The provision for credit losses for the three months ended March 31, 2023, was $23,250,000, compared to a negative provision of $6,500,000 in the same period of 2022[158]. Borrowings and Debt - The Company has $2,800,000,000 in short-term debt, including $1,800,000,000 from the Federal Home Loan Bank and $1,000,000,000 from the Federal Reserve Discount Window[143][148]. - Long-term debt as of March 31, 2023, totaled $381,796,000, with significant components being subordinated debentures and notes[143]. - The Company issued $200,000,000 of 3.70% subordinated notes in September 2020, maturing in 2030, and $110,000,000 of 6.25% subordinated notes in September 2022, maturing in 2032[145][146]. - The Company had a $1,626,336,000 balance in repurchase agreements as of March 31, 2023, with total repurchase agreements amounting to $1,983,915,000[152]. - The Company’s borrowing capacity with the Federal Home Loan Bank was $866,200,000 as of March 31, 2023[147].
UMB Financial Corporation(UMBFP) - 2023 Q1 - Quarterly Report