UMB Financial Corp (UMBF) Reports Q3 Net Income of $96.6 Million, Up 9.7% YoY
GAAP net income of $96.6 million, or $1.98 per diluted share.
Average loans increased 10.1% on a linked-quarter, annualized basis, to $22.8 billion.
Deposit balances at September 30, 2023 totaled $33.4 billion, up from $31.8 billion at September 30, 2022.
Net interest margin of 2.43%, consistent with the linked quarter.
On October 24, 2023, UMB Financial Corp (NASDAQ:UMBF) reported its third-quarter earnings, showcasing a strong performance with a GAAP net income of $96.6 million, or $1.98 per diluted share. This represents an increase from $90.1 million, or $1.85 per diluted share, in the second quarter of 2023, and $88.0 million, or $1.81 per diluted share, in the third quarter of 2022.
Financial Highlights
UMBF's third-quarter results demonstrated strong loan growth, stable deposits, continued momentum in many of its fee-generating businesses, and solid asset quality. Average loan balances increased more than 10% on a linked-quarter, annualized basis, driven primarily by construction draws and commercial & industrial loan growth. Deposit balances at September 30, 2023, totaled $33.4 billion, up from $31.8 billion at September 30, 2022, and consistent with June 30, 2023 balances.
Income Statement Analysis
Net operating income, a non-GAAP financial measure, was $98.4 million, or $2.02 per diluted share, for the third quarter of 2023, compared to $93.8 million, or $1.93 per diluted share, for the linked quarter and $88.3 million, or $1.82 per diluted share, for the third quarter of 2022. Operating pre-tax, pre-provision income was $126.6 million, or $2.60 per diluted share, for the third quarter of 2023, compared to $127.9 million, or $2.63 per diluted share, for the linked quarter, and $131.2 million, or $2.70 per diluted share, for the third quarter of 2022.
Balance Sheet and Cash Flow Statement Summary
UMBF's balance sheet remained strong with average total assets for the third quarter of 2023 at $39.5 billion compared to $40.4 billion for the linked quarter and $36.3 billion for the same period in 2022. Average loans for the third quarter of 2023 increased $559.9 million, or 2.5%, on a linked-quarter basis and $3.5 billion, or 18.0%, compared to the third quarter of 2022. The company's effective tax rate was 18.1% for the nine months ended September 30, 2023, compared to 18.8% for the same period in 2022.
Looking Ahead
UMBF's strong third-quarter results reflect its commitment to driving growth and delivering value to its shareholders. The company's solid financial position, coupled with its strategic initiatives, positions it well for future growth. At the companys quarterly board meeting, the Board of Directors approved a 2.6% increase in the quarterly cash dividend to $0.39 per share, payable on January 2, 2024, to shareholders of record at the close of business on December 11, 2023.
This article first appeared on GuruFocus.
