UMB(US:UMBF)2025-10-30 13:01Financial Performance - Net income for the three months ended September 30, 2025, was $188,316 thousand, representing a 71.6% increase compared to $109,643 thousand for the same period in 2024[35]. - The net income available to common shareholders for the nine months ended September 30, 2025, was $475,074 thousand, up 48.0% from $321,246 thousand in 2024[35]. - Net income for the nine months ended September 30, 2025, was $487,043, compared to $321,246 for the same period in 2024, reflecting a 52% increase[159]. - Net interest income was $475.0 million for the three months ended September 30, 2025, a significant increase from $247.4 million for the same period in 2024[157]. - Net interest income for the nine months ended September 30, 2025, was $1,339,705, a 83% increase from $731,918 in the same period of 2024[159]. Asset and Loan Growth - As of September 30, 2025, cash and cash equivalents totaled $8,841,410 thousand, an increase of 21.5% from $7,276,764 thousand in the same period of 2024[30]. - As of September 30, 2025, the total loans amounted to $37,706.5 million, an increase from $25,642.3 million on December 31, 2024[50]. - Total loans increased to $37,706.50 million in 2025, up from $36,075.83 million in 2024, representing a growth of approximately 3%[55]. - The company reported a total of $6,075.83 million in loans for 2025, up from $5,277.68 million in 2024, representing an increase of approximately 15.1%[55]. - The total commercial real estate loans amounted to $16,583.09 million in 2025, compared to $15,295.00 million in 2024, reflecting a growth of about 8.4%[55]. Credit Quality and Risk Management - The Company has implemented lending policies to minimize risk, including an independent loan review department that continuously assesses risk[40]. - The company utilizes a risk grading matrix to monitor credit quality, categorizing loans into Pass, Special Mention, Substandard, and Doubtful[58]. - The company tracks credit quality indicators, including trends in risk grading, net charge-offs, and non-performing loans, to assess the overall health of its loan portfolio[57]. - The agricultural loan segment is exposed to risks from adverse weather conditions and volatile commodity prices, which can significantly impact borrowers' ability to service debt[60]. - The company has identified risks associated with market volatility and collateral depreciation impacting consumer loans[82][83]. Allowance for Credit Losses - The allowance for credit losses (ACL) is estimated using historical credit loss experience and is adjusted based on current loan-specific risk characteristics and macroeconomic conditions[96]. - The allowance for credit losses increased to $406,816 thousand for the three months ended September 30, 2025, compared to $251,669 thousand for the same period in 2024, reflecting a significant rise of approximately 61.5%[109]. - The total allowance for credit losses on commercial and industrial loans was $223,268 thousand for the three months ended September 30, 2025, compared to $158,162 thousand for the same period in 2024, an increase of 41.2%[109]. - The provision for credit losses for the three months ended September 30, 2025, was $23,000 thousand, compared to $18,000 thousand for the same period in 2024, indicating a year-over-year increase of 27.8%[109]. - The provision for credit losses for the nine months ended September 30, 2025, was $129,500, significantly higher than $42,050 in the same period of 2024[159]. Securities and Investments - The total fair value of securities available for sale as of September 30, 2025, was $13.378 billion, with an amortized cost of $13.747 billion, resulting in unrealized losses of $467.335 million[117]. - The Company acquired securities available for sale with an acquisition date fair value of $3.1 billion during 2025 related to the acquisition of HTLF[119]. - The total amortized cost of securities held to maturity was $5,654.2 million, with a net carrying amount of $5,119.7 million after accounting for unrealized losses of $547.8 million[124][129]. - The company acquired securities held to maturity with an acquisition date fair value of $438.9 million during 2025 related to the acquisition of HTLF[125]. - The fair value of available-for-sale securities was $13,378,280, with $2,420,287 in Level 1 and $10,957,993 in Level 2[204]. Borrowings and Debt - Total borrowed funds reached $471.331 million as of September 30, 2025, up from $385.292 million as of December 31, 2024, indicating a 22.3% increase[144]. - The Company issued $110.0 million of 6.25% fixed-to-fixed rate subordinated notes maturing on September 28, 2032, with unamortized debt issuance costs of $0.9 million as of September 30, 2025[146]. - Long-term debt obligations from acquisitions totaled $262.9 million in contractual balance and $218.9 million in carrying value as of September 30, 2025[148]. - The Company had $10.2 million of FHLB stock and a remaining borrowing capacity of $1.8 billion with the FHLB as of September 30, 2025[149]. - Total repurchase agreements outstanding were $2,766.1 million as of September 30, 2025, with significant collateral pledged from U.S. Treasury and U.S. Agencies[151]. Noninterest Income - Noninterest income for the nine months ended September 30, 2025, reached $591,681, up 28% from $462,906 in the prior year[159]. - Total noninterest income for the three months ended September 30, 2025, was $203,298, compared to $200,000 in the same period of 2024, reflecting a slight increase[171]. - Trust and securities processing revenue for the three months ended September 30, 2025, was $87,926, compared to $80,000 in the same period of 2024, showing an increase[171]. - The company recorded $38.6 million in expenses related to rebates and rewards programs for the nine months ended September 30, 2025, compared to $28.5 million in the same period of 2024, an increase of 35%[165]. - Bankcard fees for the three months ended September 30, 2025, totaled $29,561, compared to $34,421 for the same period in 2024, indicating a decrease of 14%[171]. Derivatives and Fair Value Measurements - The fair value of total derivative assets as of September 30, 2025, was $299,164 thousand, an increase from $234,443 thousand at December 31, 2024[186]. - The company had 834 interest rate swaps with an aggregate notional amount of $11.6 billion related to its risk management program[195]. - Fair value measurements of the company's assets and liabilities are categorized into three levels based on the observability of inputs used in the valuation[202]. - The company employs various valuation methods for fair value measurements, including market prices and dealer quotes for securities[206][207]. - The fair value of collateral dependent assets as of September 30, 2025, was $73,336, with total losses recognized during the nine months ended September 30, 2025, amounting to $(34,283)[211].