Financial 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 in 2024, marking a 52% increase[159]. - For the three months ended September 30, 2025, net interest income was $475.0 million, a significant increase from $247.4 million for the same period in 2024[157][158]. - Net interest income for the nine months ended September 30, 2025, was $1,339,705, a significant increase from $731,918 in the same period of 2024, representing an 83% growth[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 reached $37,706.50 million, an increase from $35,277.68 million in the previous year[55]. - The commercial and industrial loan segment reached $2.33 billion in 2024, up from $1.40 billion in 2023, indicating a growth of about 66.3%[56]. - The total accrued interest on loans was $178.2 million as of September 30, 2025, compared to $125.7 million on December 31, 2024, representing an increase of 41.8%[56]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses increased to $406.816 million as of September 30, 2025, compared to $251.669 million at the end of September 2024, reflecting a significant rise of 61.5%[110]. - The total allowance for credit losses across all segments reached $406,816 thousand for the three months ended September 30, 2025, compared to $251,669 thousand in 2024, reflecting a comprehensive increase in risk provisions[109]. - The provision for credit losses for the three months ended September 30, 2025, was $22.5 million, compared to $18.0 million in the same period of 2024[157][158]. - The company actively monitors credit quality indicators that influence the current estimate of expected credit losses across all portfolio segments[104]. - The risk grading matrix categorizes loans into Pass, Special Mention, Substandard, and Doubtful, with ongoing monitoring of credit quality indicators[57][58]. Loan Portfolio Composition - The Company operates through three reportable segments: Commercial Banking, Institutional Banking, and Personal Banking, reflecting diverse customer needs and services[152]. - The total for consumer credit cards was $689.81 million, with a current period charge-off of $20.02 million[55]. - The total for asset-based lending was $448.72 million, with no current period charge-offs reported[55]. - The total for commercial real estate loans reached $16,583.09 million, with a current period charge-off of $5,295 million[55]. - The total amortized cost for revolving loans was $2,221.48 million, compared to $2,454.04 million in the previous year[55]. Securities and Investments - 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]. - As of September 30, 2025, the total fair value of securities available for sale was $13.378 billion, with an amortized cost of $13.747 billion[117]. - The Company reported gross unrealized losses of $467.335 million on its available-for-sale investments as of September 30, 2025[121]. - The total amount of securities pledged to secure U.S. Government deposits and other public deposits was $11.6 billion as of September 30, 2025[119]. - The total amount of securities held to maturity amounted to $5.654 billion, with a net carrying amount of $5.120 billion after unrealized losses of $547.8 million[124]. Derivative Instruments and Risk Management - The Company has entered into derivative financial instruments to manage exposures related to interest rate, liquidity, and credit risk, reflecting a proactive risk management strategy[183]. - As of September 30, 2025, the Company had two interest rate swaps designated as cash flow hedges with an aggregate notional amount of $51.5 million[190]. - The Company had 13 interest rate floors and floor spreads designated as cash flow hedges with an aggregate notional amount of $3.0 billion as of September 30, 2025[191]. - The Company expects to reclassify $0.6 million from AOCI as a reduction to Interest expense and $1.8 million from AOCI as a reduction to Interest income during the next 12 months[192]. - The Company has minimum collateral posting thresholds with certain derivative counterparties, which could require settlement of obligations if breached[199]. Noninterest Income and Expenses - Noninterest income for the nine months ended September 30, 2025, totaled $591,681, up from $462,906 in 2024, reflecting a 28% increase[159]. - The company recorded $38.6 million in expenses related to rebates and rewards programs for the nine months ended September 30, 2025, up from $28.5 million in 2024, a 35% increase[165]. - 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, indicating a growth of 10%[171]. - Bankcard fees for the three months ended September 30, 2025, were $29,561, compared to $34,421 in the same period of 2024, showing a decrease of 14%[171].
UMB Financial Corporation(UMBFP) - 2025 Q3 - Quarterly Report