Financial Performance - Cash and cash equivalents increased to $6,943,108 thousand as of March 31, 2024, compared to $3,523,304 thousand in the same period of 2023, representing an increase of 96.5%[28]. - For the three months ended March 31, 2024, the total net income was $110,258,000, compared to $92,437,000 for the same period in 2023, representing a 19.3% increase[149]. - Noninterest income increased to $159,244,000 in Q1 2024 from $130,200,000 in Q1 2023, marking a significant rise of 22.3%[149]. - Average assets grew to $42,017,000,000 in Q1 2024 from $38,503,000,000 in Q1 2023, an increase of 9.8%[149]. - Noninterest income increased by $29.0 million, or 22.3%, during the three-month period ended March 31, 2024, compared to the same period in 2023[259]. Loan Portfolio - The Company reported a total of $9,940,480 thousand in commercial and industrial loans as of March 31, 2024, with $2,869 thousand past due and accruing[44]. - Total loans amounted to $23,637,612 thousand as of March 31, 2024, with $36,241 thousand classified as past due[44]. - The Company’s commercial real estate loans totaled $9,285,160 thousand as of March 31, 2024, with $1,901 thousand past due and accruing[44]. - The company sold consumer real estate loans with proceeds of $18.4 million in Q1 2024, compared to $13.7 million in Q1 2023, reflecting a year-over-year increase of 34.1%[45]. - The total loans outstanding were $23.172 billion as of December 31, 2023, with a slight increase in the overall loan portfolio[45]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses (ACL) is estimated using historical credit loss experience and current economic forecasts, with a reasonable and supportable forecast period of one year due to current economic conditions[94]. - The allowance for credit losses on loans increased to $229,979,000 as of March 31, 2024, compared to $212,850,000 as of March 31, 2023, reflecting a year-over-year increase of approximately 8.0%[106]. - The provision for credit losses for the three months ended March 31, 2024, was $10,000,000, compared to $23,250,000 for the same period in 2023, indicating a significant decrease of approximately 57.0%[106]. - Non-performing loans and credit quality indicators are continuously monitored, with specific attention to risk grading and economic conditions[52]. - The Company actively monitors credit quality indicators, which include updated financial records and credit scores, to assess risk changes across portfolio segments[102]. Securities and Investments - As of March 31, 2024, total securities available for sale amounted to $6.54 billion, down from $7.07 billion as of December 31, 2023, reflecting a decrease of approximately 7.5%[112]. - The unrealized losses in the company's investments were primarily due to changes in interest rates, not credit issues, with total unrealized losses amounting to $668.07 million as of March 31, 2024[117]. - The total amortized cost of held-to-maturity securities was $5,626,437,000, with a fair value of $5,025,138,000, reflecting a net unrealized loss of $601,299,000[121]. - The total amount of accrued interest on securities available for sale was $30.3 million as of March 31, 2024, down from $31.6 million as of December 31, 2023[116]. - The company had $9.4 billion of securities pledged to secure various deposits and transactions as of March 31, 2024, compared to $10.1 billion as of December 31, 2023[115]. Derivatives and Hedging - The fair value of the Company's derivative assets was $220.9 million as of March 31, 2024, compared to $161.5 million as of December 31, 2023, while derivative liabilities were $119.5 million and $105.1 million for the same periods, respectively[174]. - The Company had eight interest rate floors and floor spreads designated as cash flow hedges with an aggregate notional amount of $2.0 billion as of March 31, 2024, up from three with a notional amount of $1.0 billion as of December 31, 2023[180]. - The total fair value of derivatives designated as hedging instruments increased from $61.9 million as of December 31, 2023, to $107.3 million as of March 31, 2024[174]. - The unrealized gain on terminated fair value hedges remaining in accumulated other comprehensive income (AOCI) was $53.0 million net of tax as of March 31, 2024, down from $55.0 million net of tax as of December 31, 2023[177]. - The Company expects to reclassify $1.2 million from AOCI as a reduction to interest expense and $1.9 million from AOCI as a reduction to interest income during the next 12 months[182]. Borrowings and Debt - The total amount of borrowed funds as of March 31, 2024, was $2,183,742,000, slightly up from $2,183,247,000 as of December 31, 2023[136]. - The Company had $1,800,000,000 in total short-term debt as of March 31, 2024, unchanged from December 31, 2023[136]. - The Company issued $200,000,000 of 3.70% fixed-to-fixed rate subordinated notes maturing on September 17, 2030, with interest payable semi-annually[137]. - The Company had an $800,000,000 short-term borrowing outstanding with the Federal Reserve Bank's Bank Term Funding Program as of March 31, 2024[140]. - The Company’s borrowing capacity with the FHLB was $952,700,000 as of March 31, 2024[139]. Strategic Initiatives and Growth - The Company announced a definitive merger agreement with Heartland Financial USA, Inc. for a total market value of approximately $2.0 billion[215]. - The Company aims to grow noninterest income as a diverse revenue source not directly tied to interest rates[257]. - The company is focusing on fee-based products and services to align more closely with customer demands[258]. - Management believes it can offer fee-based products efficiently and profitably due to common platforms and support structures[258]. - The Company entered into a forward sale agreement to issue 2,800,000 shares of common stock for approximate proceeds of $201.6 million[217].
UMB Financial Corporation(UMBFP) - 2024 Q1 - Quarterly Report