Financial Performance - UMB Financial Corporation reported third quarter net income of $109.6 million, or $2.23 per diluted share, up from $101.3 million in the previous quarter and $96.6 million in the same quarter last year[1][2][4]. - Net operating income for the third quarter was $110.4 million, or $2.25 per diluted share, compared to $105.9 million in the linked quarter and $98.4 million in the third quarter of 2023[2][4]. - The company reported a return on average assets of 1.01% and a return on average equity of 12.63% for the third quarter[6][7]. - The efficiency ratio improved to 61.69% compared to 63.37% in the previous quarter, indicating better operational efficiency[6][7]. - The diluted earnings per share (GAAP) for the three months ended September 30, 2024, was $2.23, up from $1.98 in the same period of 2023[43]. - For the nine months ended September 30, 2024, net income was $321,246 thousand, a 15.1% increase from $279,101 thousand in the same period of 2023[43]. Income and Revenue - Net interest income for the third quarter totaled $247.4 million, an increase of $2.3 million, or 0.9%, from the linked quarter[8]. - Total interest income for the three months ended September 30, 2024, was $557,694 thousand, up 18.1% from $471,976 thousand in 2023[37]. - Noninterest income increased by $13.8 million, or 9.5%, on a linked-quarter basis, largely due to investment securities gains and increases in fund services income[9][11]. - Noninterest income for the three months ended September 30, 2024, was $158,743 thousand, representing a 19.1% increase from $133,317 thousand in the prior year[42]. - Operating pre-tax, pre-provision income for the three months ended September 30, 2024, was $154,594 thousand, an increase from $126,592 thousand in the prior year[45]. Loans and Deposits - Average loans increased 9.8% on a linked-quarter annualized basis to $24.4 billion, and increased $1.6 billion, or 7.2%, compared to the third quarter of 2023[4][8]. - Average deposits rose 11.1% on a linked-quarter annualized basis to $35.3 billion, with average noninterest-bearing demand deposits decreasing 5.9% compared to the linked quarter[4][11]. - Total deposits reached $39,702,592 thousand, up from $33,431,752 thousand in 2023, indicating a growth of 18.7%[36]. - Net loans rose to $24,741,884 thousand, compared to $22,660,227 thousand in the previous year, marking an increase of 9.2%[36]. Expenses - GAAP noninterest expense for Q3 2024 was $252.5 million, an increase of $3.4 million, or 1.4% from the linked quarter, and an increase of $21.0 million, or 9.1% from Q3 2023[14]. - Total noninterest expense for the three months ended September 30, 2024, was $252,454 thousand, compared to $231,441 thousand in the same period of 2023, indicating an increase of 9.1%[44]. - The year-over-year increase in GAAP noninterest expense was driven by increases in salary and wage expenses by $5.4 million and processing fees by $3.7 million[17]. Credit Quality - Net charge-offs for Q3 2024 totaled $8,454 thousand, or 0.14% of average loans, compared to $4,618 thousand, or 0.08% in Q3 2023[23][28]. - Provision for credit losses increased by $4,000 thousand from the previous quarter and $13,000 thousand from Q3 2023, driven by significant increases in period-end loans[28]. - The provision for credit losses for the three months ended September 30, 2024, was $18,000 thousand, significantly higher than $4,977 thousand in the same period of 2023[42]. - Nonaccrual and restructured loans amounted to $19,291 thousand, representing 0.08% of total loans, compared to 0.07% in Q3 2023[23]. - Loans over 90 days past due increased to $7,133 thousand, or 0.03% of total loans, up from 0.01% in Q3 2023[23]. Capital and Equity - As of September 30, 2024, total equity increased to $3,535,489 thousand from $2,806,659 thousand in the same period last year, reflecting a growth of 26%[21]. - The common equity Tier 1 capital ratio stood at 11.22%, exceeding the "well-capitalized" regulatory threshold[22]. - Total risk-based capital ratio improved to 13.14%, compared to 12.68% a year ago[21]. - The book value per common share rose to $72.45, up from $57.83 a year ago, representing a 25% increase[21]. - Total shareholders' equity increased to $3,535,489 thousand as of September 30, 2024, from $2,806,659 thousand in 2023, reflecting a growth of 25.9%[36]. Future Outlook - UMB Financial Corporation is on track to complete the acquisition of Heartland Financial in the first quarter of 2025, pending regulatory approvals[5]. - The company plans to host a conference call on October 30, 2024, to discuss its Q3 2024 earnings results[25].
UMB Financial Corporation(UMBFP) - 2024 Q3 - Quarterly Results