UMB(US:UMBF)2025-05-02 13:02Financial Performance - The net income for the three months ended March 31, 2025, was $81,333 thousand, a decrease of 26.3% compared to $110,258 thousand for the same period in 2024[33]. - Basic net income per common share for Q1 2025 was $1.22, down from $2.27 in Q1 2024, reflecting a decline of 46.2%[33]. - Noninterest income for the three months ended March 31, 2025, totaled $166.198 million, up from $159.244 million in the same period of 2024, reflecting a growth of 4.4%[159]. - The total noninterest expense for the three months ended March 31, 2025, was $384.787 million, up from $254.804 million in the same period of 2024, representing an increase of 50.9%[159]. - The Commercial Banking segment reported a net income of $62.385 million for the three months ended March 31, 2025, compared to $82.178 million in the same period of 2024, a decrease of 24.2%[159]. - The Institutional Banking segment's net income was $50.043 million for the three months ended March 31, 2025, compared to $35.321 million for the same period in 2024, reflecting an increase of 41.7%[159]. - The Personal Banking segment reported a net loss of $31.095 million for the three months ended March 31, 2025, compared to a net loss of $7.241 million in the same period of 2024, indicating a worsening performance[159]. Asset and Loan Growth - As of March 31, 2025, cash and cash equivalents totaled $10,610,066 thousand, up from $6,943,108 thousand as of March 31, 2024, representing an increase of approximately 52.5%[28]. - As of March 31, 2025, the total loans amounted to $35,936.2 million, compared to $25,642.3 million on December 31, 2024, reflecting a significant increase[47]. - The total current loans increased to $35,762.1 million at March 31, 2025, from $25,603.9 million at December 31, 2024[47]. - Total loans amounted to $35,936.28 million, with a significant increase from $5,077.094 million in the previous year[52]. - The total amount of non-performing loans is monitored as part of the credit quality indicators, reflecting ongoing risk assessment[54]. - The company continues to focus on market expansion and new strategies to enhance loan offerings and customer engagement[52]. Credit Quality and Risk Management - The Company maintains an independent loan review department to continually assess and validate risk within its loan portfolio[38]. - The Company utilizes a risk grading matrix to continuously monitor credit risk across its loan portfolio[55]. - The company assigns risk ratings to borrowers based on their financial position, with categories including Pass, Special Mention, Substandard, and Doubtful[59]. - The company tracks individual borrower credit risk based on their loan to collateral position, with any borrower position where the underlying value of collateral is below the fair value of the loan considered higher risk[62]. - The company emphasizes the importance of economic conditions on the performance of non-owner-occupied commercial real estate loans, which are sensitive to local market factors[65]. - The company actively monitors credit quality indicators, which include changes in economic forecasts and updated financial records from borrowers[105]. Allowance for Credit Losses - The allowance for credit losses (ACL) is estimated based on historical credit loss experience and current loan-specific risk characteristics, with a focus on economic forecasts from Moody's[98]. - The ACL for Commercial and industrial loans was $192,146,000 as of March 31, 2025, up from $160,912,000 at the beginning of the period, reflecting a provision of $22,018,000[110]. - Total ACL for all segments reached $373,488,000 as of March 31, 2025, compared to $261,734,000 at the beginning of the previous year, indicating a significant increase in credit loss provisions[110]. - The ACL for Consumer segments is driven by the year of origination and macroeconomic variables such as unemployment and home price index[103]. Securities and Investments - As of March 31, 2025, the total fair value of securities available for sale was $10,895,659 thousand, an increase from $7,774,334 thousand as of December 31, 2024, representing a growth of 40%[117][118]. - The Company holds $5,717,330,000 in securities held to maturity, with unrealized losses of $(619,383,000) as of March 31, 2025, compared to $5,378,912,000 and $(642,009,000) as of December 31, 2024[126][129]. - The total investment securities (losses) gains, net for the three months ended March 31, 2025, was $(4.78) million, a decrease from $9.37 million in the same period of 2024[140]. - The Company has no allowance for credit losses related to available-for-sale securities as the decline in fair value did not result from credit issues[125]. Borrowings and Debt - As of March 31, 2025, total borrowed funds amounted to $654.4 million, an increase from $385.3 million as of December 31, 2024, reflecting a significant growth in long-term debt[144]. - The total long-term debt increased to $654.4 million as of March 31, 2025, driven by the acquisition activities and new issuances[144]. - The Company’s borrowing capacity with the FHLB was $1.6 billion as of March 31, 2025, indicating strong liquidity support[150]. Derivatives and Fair Value Measurements - The fair value of the company's assets measured at fair value as of March 31, 2025, was $11,237.155 million, with $1,910.925 million classified as Level 1 inputs and $9,326.230 million as Level 2 inputs[203]. - The estimated fair value of derivatives as of March 31, 2025, was $294,003,000, compared to $234,443,000 on December 31, 2024, reflecting an increase of approximately 25%[214][215]. - The company employs various valuation methods for financial instruments, including external appraisals and market comparisons, ensuring accurate fair value measurements[212].