UMB Financial Corporation Reports Second Quarter Net Income of $90.1 Million

Business Wire
18 min read
0
In this article:

Second Quarter 2023 Financial Highlights

  • GAAP net income of $90.1 million, or $1.85 per diluted share.

  • Net operating income of $93.8 million, or $1.93 per diluted share.

  • Average loans increased 17.3% on a linked-quarter, annualized basis.

  • Deposit balances at June 30, 2023 totaled $33.5 billion, up from $31.9 billion at March 31, 2023.

  • At June 30, 2023, total estimated uninsured deposits represented approximately 65.5% of total deposits. When adjusted to exclude affiliate (company-owned) and collateralized deposits, estimated uninsured deposits were approximately 40.9% of total deposits.

  • Noninterest income increased 6.1% as compared to the linked quarter, equal to 38.0% of total revenue.

  • Credit quality remained strong, with net recoveries of $0.1 million and nonperforming loans of 0.09% of total loans.

KANSAS CITY, Mo., July 25, 2023--(BUSINESS WIRE)--UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the second quarter of 2023 of $90.1 million, or $1.85 per diluted share, compared to $92.4 million, or $1.90 per diluted share, in the first quarter of 2023 (linked quarter) and $137.6 million, or $2.83 per diluted share, in the second quarter of 2022. The results for the second quarter of 2022 include a pre-tax gain of $66.2 million on the sale of the company's entire investment in Visa Inc. Class B common shares, and a pre-tax $5.0 million contribution to the company's charitable foundation.

Net operating income, a non-GAAP financial measure reconciled later in this release to net income, the nearest comparable GAAP measure, was $93.8 million, or $1.93 per diluted share, for the second quarter of 2023, compared to $92.8 million, or $1.91 per diluted share, for the linked quarter and $137.6 million, or $2.83 per diluted share, for the second quarter of 2022. Operating pre-tax, pre-provision income (operating PTPP), a non-GAAP measure reconciled later in this release to the components of net income before taxes, the nearest comparable GAAP measure, was $127.9 million, or $2.63 per diluted share, for the second quarter of 2023, compared to $135.4 million, or $2.78 per diluted share, for the linked quarter, and $187.1 million, or $3.84 per diluted share, for the second quarter of 2022. These operating PTPP results represent decreases of 5.5% on a linked-quarter basis and 31.6%, compared to the second quarter of 2022.

"In the second quarter of 2023, the positive impacts of fee income trends, a double-digit annualized increase in average loan balances, excellent asset quality metrics and expense management were masked by higher interest expense driven by the Federal Reserve’s monetary tightening actions as well as expected increases in funding costs in this high interest rate environment," said Mariner Kemper, chairman, president and chief executive officer. "Average loans increased 17.3% on a linked-quarter annualized basis with nearly half of the increase driven by commercial & industrial loan balances. Credit metrics remain strong as evidenced by net recoveries this quarter and nine basis points of non-performing loans to total loans. Noninterest income was $138.1 million for the quarter. It's important to note that noninterest income for the same quarter in 2022 included a pre-tax gain of $66.2 million on the sale of our Visa Inc. Class B common shares. Finally, period-end deposit balances at quarter end were $33.5 billion, an increase of $1.6 billion, or 5.0%, as compared to March 31, 2023."

Second Quarter 2023 earnings discussion

Summary of quarterly financial results

UMB Financial Corporation

(unaudited, dollars in thousands, except per share data)

Q2

Q1

Q2

2023

2023

2022

Net income (GAAP)

$

90,110

$

92,437

$

137,556

Earnings per share (diluted)

1.85

1.90

2.83

Operating pre-tax, pre-provision income (Non-GAAP)(i)

127,929

135,369

187,051

Operating pre-tax, pre-provision earnings per share (diluted)

2.63

2.78

3.84

Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i)

134,504

141,924

193,329

Operating pre-tax, pre-provision earnings per share - FTE (diluted)

2.77

2.91

3.97

Net operating income (Non-GAAP)(i)

93,841

92,836

137,596

Operating earnings per share (diluted)

1.93

1.91

2.83

GAAP

Return on average assets

0.90

%

0.97

%

1.47

%

Return on average equity

12.56

13.76

20.83

Efficiency ratio

65.59

63.12

53.08

Non-GAAP (i)

Operating return on average assets

0.93

%

0.98

%

1.47

%

Operating return on average equity

13.08

13.82

20.84

Operating return on average tangible equity excluding AOCI

11.63

12.21

18.65

Operating efficiency ratio

64.24

62.98

53.06

(i) See reconciliation of Non-GAAP measures to their nearest comparable GAAP measures later in this release.

Summary of year-to-date financial results

UMB Financial Corporation

(unaudited, dollars in thousands, except per share data)

June

June

YTD

YTD

2023

2022

Net income (GAAP)

$

182,547

$

243,519

Earnings per share (diluted)

3.75

4.99

Operating pre-tax, pre-provision income (Non-GAAP)(i)

263,298

306,451

Operating pre-tax, pre-provision earnings per share (diluted)

5.41

6.29

Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i)

276,428

319,128

Operating pre-tax, pre-provision earnings per share - FTE (diluted)

5.68

6.55

Net operating income (Non-GAAP)(i)

186,677

243,669

Operating earnings per share (diluted)

3.83

4.99

GAAP

Return on average assets

0.93

%

1.28

%

Return on average equity

13.14

17.60

Efficiency ratio

64.34

58.03

Non-GAAP (i)

Operating return on average assets

0.95

%

1.28

%

Operating return on average equity

13.44

17.61

Operating return on average tangible equity excluding AOCI

11.91

16.86

Operating efficiency ratio

63.61

58.00

(i) See reconciliation of Non-GAAP measures to their nearest comparable GAAP measures later in this release.

Summary of revenue

UMB Financial Corporation

(unaudited, dollars in thousands)

Q2

Q1

Q2

CQ vs.

CQ vs.

2023

2023

2022

LQ

PY

Net interest income

$

225,611

$

241,696

$

224,791

$

(16,085

)

$

820

Noninterest income:

Trust and securities processing

61,589

62,359

58,886

(770

)

2,703

Trading and investment banking

4,800

5,308

7,123

(508

)

(2,323

)

Service charges on deposit accounts

21,381

21,159

20,835

222

546

Insurance fees and commissions

225

274

245

(49

)

(20

)

Brokerage fees

13,604

13,676

12,391

(72

)

1,213

Bankcard fees

18,579

18,172

17,840

407

739

Investment securities gains (losses), net

900

(5,324

)

60,720

6,224

(59,820

)

Other

17,004

14,576

(1,705

)

2,428

18,709

Total noninterest income

$

138,082

$

130,200

$

176,335

$

7,882

$

(38,253

)

Total revenue

$

363,693

$

371,896

$

401,126

$

(8,203

)

$

(37,433

)

Net interest income (FTE)

$

232,186

$

248,251

$

231,069

Net interest margin (FTE)

2.44

%

2.76

%

2.60

%

Total noninterest income as a % of total revenue

38.0

35.0

44.0

Net interest income

  • Second quarter 2023 net interest income totaled $225.6 million, a decrease of $16.1 million, or 6.7% from the linked quarter, driven by higher interest expense primarily due to unfavorable mix shift in the composition of liabilities, combined with higher interest rates. This decrease was partially offset by continued growth in average loans and higher liquidity balances, coupled with increased yields.

  • Average earning assets increased $1.8 billion, or 4.9% from the linked quarter, largely driven by an increase of $1.2 billion in interest-bearing due from banks and an increase of $920.0 million in average loans, partially offset by decreases of $174.7 million in federal funds sold and resell agreements and $143.4 million in average securities.

  • Average interest-bearing liabilities increased $3.1 billion, or 13.3% from the linked quarter, primarily driven by increases of $1.9 billion in borrowed funds, primarily short-term borrowings, and $1.3 billion in interest-bearing deposits. Average noninterest-bearing deposits decreased $1.4 billion, or 11.6% as compared to the linked quarter.

  • Net interest margin for the second quarter was 2.44%, a decrease of 32 basis points from the linked quarter, driven by increased cost and mix of interest-bearing liabilities, partially offset by improved loan yields, the benefit of free funds, and earning asset mix changes. The cost of interest-bearing liabilities increased 67 basis points to 3.58%. Total cost of funds increased 64 basis points from the linked quarter to 2.56%. Average loan yields increased 32 basis points while earning asset yields increased 29 basis points from the linked quarter.

  • On a year-over-year basis, net interest income increased $0.8 million, or 0.4%, driven by a $3.9 billion, or 21.1%, increase in average loans, partially offset by higher interest costs due to unfavorable mix shift in the composition of liabilities as well as the impact of higher short-term interest rates.

  • Compared to the second quarter of 2022, average earning assets increased $2.5 billion, or 7.1%, largely driven by the increase in average loans noted above, partially offset by a decrease of $824.5 million in federal funds sold and resell agreements and a decrease of $589.2 million in average securities.

  • Average deposits decreased 0.4% compared to the second quarter of 2022. Average noninterest-bearing demand deposit balances decreased 25.9% compared to the second quarter of 2022, driven by expected migration to rate-bearing deposit categories in a higher interest rate environment. Demand deposit balances comprised 33.5% of total deposits, compared to 37.8% in the linked quarter and 45.0% in the second quarter of 2022.

  • Average borrowed funds increased $1.9 billion as compared to the linked quarter and $2.9 billion as compared to the second quarter of 2022, driven by short-term borrowings with the Federal Home Loan Bank and the Federal Reserve Discount Window.

Noninterest income

  • Second quarter 2023 noninterest income increased $7.9 million, or 6.1%, on a linked-quarter basis, largely due to:

    • An increase of $6.2 million in investment securities gains, largely driven by an impairment loss on an available-for-sale subordinated debt security recorded in the first quarter and increased valuation of the company's equity investments in the second quarter.

    • An increase of $2.4 million in other income, primarily related to a $4.0 million gain on sale of other assets recorded in the second quarter, partially offset by a decrease of $1.3 million in derivative income.

    • These increases were partially offset by a decrease of $0.9 million in corporate trust income, recorded in trust and securities processing.

  • Compared to the prior year, noninterest income in the second quarter of 2023 decreased $38.3 million, or 21.7%, primarily driven by:

    • A decrease of $59.8 million in investment securities gains, primarily driven by the $66.2 million gain on sale of the company's investment in Visa Inc. Class B common shares in the second quarter of 2022. This was partially offset by an increase of $5.3 million in the valuation of the company's marketable securities.

    • A decrease of $2.3 million in trading and investment banking due to decreased trading volume.

    • These decreases were partially offset by the following increases:

      • An increase of $18.7 million in other income, driven by an increase of $13.8 million in company-owned life insurance income and a gain of $4.0 million on the sale of other assets recorded in the second quarter of 2023. The increase in company-owned life insurance is offset by a proportionate increase in deferred compensation expense as noted below.

      • Increases of $1.9 million and $1.1 million in fund services income and corporate trust income, both recorded in trust and securities processing.

      • An increase of $1.2 million in brokerage income, largely driven by increased 12b-1 fee income.

Noninterest expense

Summary of noninterest expense

UMB Financial Corporation

(unaudited, dollars in thousands)

Q2

Q1

Q2

CQ vs.

CQ vs.

2023

2023

2022

LQ

PY

Salaries and employee benefits

$

143,312

$

142,498

$

121,390

$

814

$

21,922

Occupancy, net

11,746

12,177

11,976

(431

)

(230

)

Equipment

17,086

17,849

18,315

(763

)

(1,229

)

Supplies and services

4,195

3,875

3,492

320

703

Marketing and business development

7,124

5,335

5,308

1,789

1,816

Processing fees

26,572

23,240

19,338

3,332

7,234

Legal and consulting

7,059

7,285

11,265

(226

)

(4,206

)

Bankcard

8,307

7,133

5,880

1,174

2,427

Amortization of other intangible assets

2,117

2,298

1,225

(181

)

892

Regulatory fees

6,123

5,551

3,464

572

2,659

Other

7,032

9,811

12,474

(2,779

)

(5,442

)

Total noninterest expense

$

240,673

$

237,052

$

214,127

$

3,621

$

26,546

  • Noninterest expense for the second quarter of 2023 was $240.7 million, an increase of $3.6 million, or 1.5%, from the linked quarter and an increase of $26.5 million, or 12.4%, from the second quarter of 2022. Operating noninterest expense, a non-GAAP financial measure reconciled later in this release to noninterest expense, the nearest comparable GAAP measure, was $235.8 million for the second quarter of 2023, a decrease of $0.8 million, or 0.3%, from the linked quarter and an increase of $21.7 million, or 10.1%, from the second quarter of 2022.

  • The linked-quarter increase in GAAP noninterest expense was driven by:

    • Increases of $3.3 million in processing fees and $1.8 million in marketing and business development expense due to the ongoing modernization of the company's core systems and timing of multiple projects, respectively. The increase in marketing and business development expense was also partially driven by an increase in advertising for various projects and an increase in travel and entertainment expense.

    • An increase of $0.8 million in salaries and employee benefits expense driven by an increase of $7.4 million in salary and bonus expense, partially offset by a decrease of $6.6 million in employee benefits. The increase in salary and bonus expense was due to an increase of $4.4 million in severance expense and higher salary expense related to annual merit increases beginning in the second quarter. The decrease in employee benefits was driven by the seasonal decrease of $8.0 million in payroll taxes, insurance, and 401(k) expense, offset by an increase in other employee benefits recorded in the second quarter.

    • These increases were partially offset by a decrease of $2.0 million in operational losses as compared to the linked quarter.

  • The year-over-year increase in GAAP noninterest expense was driven by:

    • An increase of $21.9 million in salaries and employee benefits expense, driven primarily by increases of $14.5 in employee benefits expense and $7.4 million in salaries and bonus expense. The increase in employee benefits expense is due to increases of $12.5 million in deferred compensation plan expense and $1.3 million in payroll taxes, insurance, and 401(k) expense. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above. The increase in salaries and bonus expense is due to an increase of $4.8 million in severance expense and higher employee salaries as compared to the second quarter of 2022.

    • An increase of $7.2 million in processing fees expense due to the ongoing modernization of the company’s core systems and the timing of multiple software projects.

    • An increase of $2.7 million in regulatory fees expense driven by higher deposit insurance expense.

    • These increases were offset by a decrease of $5.4 million in other expense primarily due to the $5.0 million charitable contribution recorded in the second quarter of 2022 mentioned above.

Income taxes

  • The company’s effective tax rate was 17.6% for the six months ended June 30, 2023, compared to 18.7% for the same period in 2022. The decrease in the effective tax rate in 2023 is primarily attributable to a larger portion of income being earned from tax-exempt municipal securities.

Balance sheet

  • Average total assets for the second quarter of 2023 were $40.4 billion compared to $38.5 billion for the linked quarter and $37.6 billion for the same period in 2022.

Summary of average loans and leases - QTD Average

UMB Financial Corporation

(unaudited, dollars in thousands)

Q2

Q1

Q2

CQ vs.

CQ vs.

2023

2023

2022

LQ

PY

Commercial and industrial

$

9,724,300

$

9,287,319

$

7,918,552

$

436,981

$

1,805,748

Specialty lending

574,220

564,633

518,575

9,587

55,645

Commercial real estate

8,178,463

7,812,140

6,569,784

366,323

1,608,679

Consumer real estate

2,833,739

2,738,184

2,458,815

95,555

374,924

Consumer

139,705

136,571

148,412

3,134

(8,707

)

Credit cards

485,749

453,704

428,167

32,045

57,582

Leases and other

255,425

279,049

275,638

(23,624

)

(20,213

)

Total loans

$

22,191,601

$

21,271,600

$

18,317,943

$

920,001

$

3,873,658

  • Average loans for the second quarter of 2023 increased $920.0 million, or 4.3%, on a linked-quarter basis and $3.9 billion, or 21.1%, compared to the second quarter of 2022.

Summary of average securities - QTD Average

UMB Financial Corporation

(unaudited, dollars in thousands)

Q2

Q1

Q2

CQ vs.

CQ vs.

2023

2023

2022

LQ

PY

Securities available for sale:

U.S. Treasury

$

797,104

$

783,170

$

639,161

$

13,934

$

157,943

U.S. Agencies

189,091

171,825

172,798

17,266

16,293

Mortgage-backed

3,813,234

3,938,137

4,764,452

(124,903

)

(951,218

)

State and political subdivisions

1,319,398

1,356,785

1,891,377

(37,387

)

(571,979

)

Corporates

349,318

364,854

377,586

(15,536

)

(28,268

)

Collateralized loan obligations

348,078

348,477

247,639

(399

)

100,439

Total securities available for sale

$

6,816,223

$

6,963,248

$

8,093,013

$

(147,025

)

$

(1,276,790

)

Securities held to maturity:

U.S. Agencies

$

123,135

$

123,106

$

65,964

$

29

$

57,171

Mortgage-backed

2,878,657

2,934,113

2,892,986

(55,456

)

(14,329

)

State and political subdivisions

2,822,218

2,814,912

2,240,018

7,306

582,200

Total securities held to maturity

$

5,824,010

$

5,872,131

$

5,198,968

$

(48,121

)

$

625,042

Trading securities

$

12,538

$

9,258

$

10,190

$

3,280

$

2,348

Other securities

407,754

359,238

347,527

48,516

60,227

Total securities

$

13,060,525

$

13,203,875

$

13,649,698

$

(143,350

)

$

(589,173

)

  • Average total securities decreased 1.1% on a linked-quarter basis and decreased 4.3% compared to the second quarter of 2022.

  • At June 30, 2023, the unrealized pre-tax net loss on the available-for-sale securities portfolio was $765.9 million, or 10.3% of the $7.4 billion amortized cost value. At June 30, 2023, the unrealized pre-tax net loss on the securities designated as held to maturity was $576.4 million, or 9.9% of the $5.8 billion amortized cost value.

  • During 2022, the company transferred securities with an amortized cost balance of $4.1 billion and a fair value of $3.8 billion from the available-for-sale category to the held-to-maturity category. The remaining balance of unrealized pre-tax net losses related to transferred securities was $226.7 million as of June 30, 2023 and was included in the amortized cost balance of held-to-maturity securities.

  • At June 30, 2023, an after-tax gain of $56.9 million was included in accumulated other comprehensive income (AOCI) related to the company’s fair value hedges of municipal securities. During 2021, the company entered into ten of these hedge transactions, nine of which have since been terminated. The gain on the terminated hedges is being amortized over the remaining life of the underlying bonds.

Summary of average deposits - QTD Average

UMB Financial Corporation

(unaudited, dollars in thousands)

Q2

Q1

Q2

CQ vs.

CQ vs.

2023

2023

2022

LQ

PY

Deposits:

Noninterest-bearing demand

$

10,535,325

$

11,919,277

$

14,209,159

$

(1,383,952

)

$

(3,673,834

)

Interest-bearing demand and savings

17,463,022

18,427,662

16,808,998

(964,640

)

654,024

Time deposits

3,476,616

1,215,506

570,812

2,261,110

2,905,804

Total deposits

$

31,474,963

$

31,562,445

$

31,588,969

$

(87,482

)

$

(114,006

)

Noninterest bearing deposits as % of total

33.5

%

37.8

%

45.0

%

  • Average deposits decreased 0.3% on a linked-quarter basis and decreased 0.4% compared to the second quarter of 2022.

  • As of June 30, 2023, the total estimated uninsured deposits were $22.0 billion or approximately 65.5% of total deposits. Estimated uninsured deposits, when adjusted to exclude affiliate (company-owned) and collateralized deposits, were $13.7 billion and represented approximately 40.9% of total deposits.

Capital

Capital information

UMB Financial Corporation

(unaudited, dollars in thousands, except per share data)

June 30, 2023

March 31, 2023

June 30, 2022

Total equity

$

2,831,628

$

2,814,659

$

2,642,888

Accumulated other comprehensive loss, net

(685,831

)

(626,776

)

(564,803

)

Book value per common share

58.36

58.03

54.71

Tangible book value per common share (Non-GAAP)(i)

52.54

52.17

50.64

Regulatory capital:

Common equity Tier 1 capital

$

3,273,841

$

3,196,111

$

3,055,747

Tier 1 capital

3,273,841

3,196,111

3,055,747

Total capital

3,870,101

3,776,407

3,473,040

Regulatory capital ratios:

Common equity Tier 1 capital ratio

10.65

%

10.57

%

11.44

%

Tier 1 risk-based capital ratio

10.65

10.57

11.44

Total risk-based capital ratio

12.59

12.49

13.00

Tier 1 leverage ratio

8.16

8.35

8.17

(i) See reconciliation of Non-GAAP measures to their nearest comparable GAAP measures later in this release.

  • At June 30, 2023, the regulatory capital ratios presented in the foregoing table exceeded all "well-capitalized" regulatory thresholds.

Asset Quality

Credit quality

UMB Financial Corporation

(unaudited, dollars in thousands)

Q2

Q1

Q4

Q3

Q2

2023

2023

2022

2022

2022

Net (recoveries) charge-offs - total loans

$

(139

)

$

4,643

$

2,189

$

1,173

$

28,128

Net loan (recoveries) charge-offs as a % of total average loans

(0.00

)%

0.09

%

0.04

%

0.02

%

0.62

%

Loans over 90 days past due

$

10,861

$

1,723

$

1,617

$

2,513

$

3,446

Loans over 90 days past due as a % of total loans

0.05

%

0.01

%

0.01

%

0.01

%

0.02

%

Nonaccrual and restructured loans

$

19,347

$

15,480

$

19,269

$

19,817

$

18,117

Nonaccrual and restructured loans as a % of total loans

0.09

%

0.07

%

0.09

%

0.10

%

0.10

%

Provision for credit losses

$

13,000

$

23,250

$

9,000

$

22,000

$

13,400

  • Provision for credit losses for the second quarter totaled $13.0 million, a decrease of $10.3 million from the linked quarter and a decrease of $0.4 million from the second quarter of 2022. These changes are driven largely by loan growth and changes in macro-economic variables in the current period as compared to the prior periods.

  • Net recoveries for the second quarter totaled $0.1 million, compared to net charge-offs of $4.6 million, or 0.09%, of average loans in the linked quarter, and $28.1 million, or 0.62%, of average loans for the second quarter of 2022.

Dividend Declaration and Share Repurchase Authorization

At the company’s quarterly board meeting, the Board of Directors declared a $0.38 per share quarterly cash dividend, payable on October 2, 2023, to shareholders of record at the close of business on September 11, 2023.

The Board also approved the repurchase of up to 1,000,000 shares of the company's common stock. Share repurchases may occur from time to time at any point until the regular meeting of the Board that immediately follows the 2024 annual meeting of the company’s shareholders. Shares acquired under the repurchase program may be available for reissuance or resale, including in connection with the company's compensation plans and dividend reinvestment plan. Under the repurchase program, the company may acquire the shares from time to time in open market or privately negotiated transactions, at the discretion of management.

Conference Call

The company plans to host a conference call to discuss its second quarter 2023 earnings results on Wednesday, July 26, 2023, at 9:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 833-470-1428 or (international) 404-975-4839 and requesting to join the UMB Financial call with access code 835446. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 2Q 2023 Conference Call

A replay of the conference call may be heard through August 9, 2023, by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 506453. The call replay may also be accessed at investorrelations.umb.com.

Non-GAAP Financial Information

In this release, we may provide information about net operating income, operating earnings per share – diluted (operating EPS), operating return on average equity (operating ROE), operating return on average assets (operating ROA), operating noninterest expense, operating efficiency ratio, operating pre-tax, pre-provision income (operating PTPP), operating pre-tax, pre-provision earnings per share – diluted (operating PTPP EPS), operating pre-tax, pre-provision income on a fully tax equivalent basis (operating PTPP-FTE), operating pre-tax, pre-provision FTE earnings per share – diluted (operating PTPP-FTE EPS), tangible shareholders’ equity, tangible book value per share, and operating return on average tangible equity excluding AOCI, all of which are non-GAAP financial measures. This information supplements the results that are reported according to generally accepted accounting principles in the United States (GAAP) and should not be viewed in isolation from, or as a substitute for, GAAP results. The differences between the non-GAAP financial measures – net operating income, operating EPS, operating ROE, operating ROA, operating noninterest expense, operating efficiency ratio, operating PTPP, operating PTPP EPS, operating PTPP-FTE, operating PTPP-FTE EPS, tangible shareholders’ equity, tangible book value per share, and operating return on average tangible equity excluding AOCI – and the nearest comparable GAAP financial measures are reconciled later in this release. The company believes that these non-GAAP financial measures and the reconciliations may be useful to investors because they adjust for acquisition- and severance-related items that management does not believe reflect the company’s fundamental operating performance.

Net operating income for the relevant period is defined as GAAP net income, adjusted to reflect the impact of excluding expenses related to acquisitions, severance expense, and the cumulative tax impact of these adjustments.

Operating EPS (diluted) is calculated as earnings per share as reported, adjusted to reflect, on a per share basis, the impact of excluding the non-GAAP adjustments described above for the relevant period. Operating ROE is calculated as net operating income, divided by the company’s average total shareholders’ equity for the relevant period. Operating ROA is calculated as net operating income, divided by the company’s average assets for the relevant period. Operating noninterest expense for the relevant period is defined as GAAP noninterest expense, adjusted to reflect the pre-tax impact of non-GAAP adjustments described above. Operating efficiency ratio is calculated as the company’s operating noninterest expense, net of amortization of other intangibles, divided by the company’s total non-GAAP revenue (calculated as net interest income plus noninterest income, less gains on sales of securities available for sale, net).

Operating PTPP income for the relevant period is defined as GAAP net interest income plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions and severance expense.

Operating PTPP-FTE for the relevant period is defined as GAAP net interest income on a fully tax equivalent basis plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions and severance expense.

Tangible shareholders’ equity for the relevant period is defined as GAAP shareholders’ equity, net of intangible assets. Tangible book value per share is defined as tangible shareholders’ equity divided by the Company’s total shares outstanding.

Operating return on average tangible equity excluding AOCI is calculated as net operating income, divided by the company’s average tangible shareholders’ equity exclusive of AOCI for the relevant period.

Forward-Looking Statements:

This press release contains, and our other communications may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as "believe," "expect," "anticipate," "intend," "estimate," "project," "outlook," "forecast," "target," "trend," "plan," "goal," or other words of comparable meaning or future-tense or conditional verbs such as "may," "will," "should," "would," or "could." Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, results, or aspirations. All forward-looking statements are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Our actual future objectives, strategies, plans, prospects, performance, condition, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events, circumstances, or aspirations to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2022, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (SEC). In addition to such factors that have been disclosed previously: macroeconomic and adverse developments and uncertainties related to the collateral effects of the collapse of, and challenges for, domestic and international banks, including the impacts to the U.S. and global economies; sustained levels of high inflation and the potential for an economic recession on the heels of aggressive quantitative tightening by the Federal Reserve, and impacts related to or resulting from Russia’s military action in Ukraine, such as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except to the extent required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K, or other applicable document that is filed or furnished with the SEC.

About UMB:

UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas. As the company’s reach continues to grow, it also serves business clients nationwide and institutional clients in several countries. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn.

Consolidated Balance Sheets

UMB Financial Corporation

(unaudited, dollars in thousands)

June 30,

2023

2022

ASSETS

Loans

$

22,483,542

$

18,972,158

Allowance for credit losses on loans

(222,161

)

(164,346

)

Net loans

22,261,381

18,807,812

Loans held for sale

3,819

750

Securities:

Available for sale

6,668,615

7,739,216

Held to maturity, net of allowance for credit losses

5,807,763

5,707,282

Trading securities

28,887

9,646

Other securities

428,149

342,543

Total securities

12,933,414

13,798,687

Federal funds sold and resell agreements

319,838

1,055,459

Interest-bearing due from banks

3,369,911

1,825,295

Cash and due from banks

431,527

360,242

Premises and equipment, net

255,127

257,729

Accrued income

190,387

144,874

Goodwill

207,385

182,225

Other intangibles, net

75,184

14,465

Other assets

1,195,069

1,060,303

Total assets

$

41,243,042

$

37,507,841

LIABILITIES

Deposits:

Noninterest-bearing demand

$

12,142,906

$

14,925,555

Interest-bearing demand and savings

18,184,063

16,007,087

Time deposits under $250,000

2,665,166

383,832

Time deposits of $250,000 or more

528,326

169,550

Total deposits

33,520,461

31,486,024

Federal funds purchased and repurchase agreements

2,050,583

2,661,283

Short-term debt

1,800,000

—

Long-term debt

382,280

272,505

Accrued expenses and taxes

256,845

182,185

Other liabilities

401,245

262,956

Total liabilities

38,411,414

34,864,953

SHAREHOLDERS' EQUITY

Common stock

55,057

55,057

Capital surplus

1,124,977

1,115,504

Retained earnings

2,681,448

2,384,454

Accumulated other comprehensive loss, net

(685,831

)

(564,803

)

Treasury stock

(344,023

)

(347,324

)

Total shareholders' equity

2,831,628

2,642,888

Total liabilities and shareholders' equity

$

41,243,042

$

37,507,841

Consolidated Statements of Income

UMB Financial Corporation

(unaudited, dollars in thousands except share and per share data)

Three Months Ended

Six Months Ended

June 30,

June 30,

2023

2022

2023

2022

INTEREST INCOME

Loans

$

342,994

$

169,919

$

651,435

$

319,389

Securities:

Taxable interest

54,587

47,295

107,636

90,677

Tax-exempt interest

25,550

23,538

50,856

47,393

Total securities income

80,137

70,833

158,492

138,070

Federal funds and resell agreements

3,889

3,497

9,540

5,947

Interest-bearing due from banks

34,206

4,207

50,372

6,664

Trading securities

154

114

288

299

Total interest income

461,380

248,570

870,127

470,369

INTEREST EXPENSE

Deposits

170,550

15,439

298,449

21,612

Federal funds and repurchase agreements

24,745

4,998

48,047

7,146

Other

40,474

3,342

56,324

6,465

Total interest expense

235,769

23,779

402,820

35,223

Net interest income

225,611

224,791

467,307

435,146

Provision for credit losses

13,000

13,400

36,250

6,900

Net interest income after provision for credit losses

212,611

211,391

431,057

428,246

NONINTEREST INCOME

Trust and securities processing

61,589

58,886

123,948

118,414

Trading and investment banking

4,800

7,123

10,108

12,563

Service charges on deposit accounts

21,381

20,835

42,540

45,477

Insurance fees and commissions

225

245

499

504

Brokerage fees

13,604

12,391

27,280

15,847

Bankcard fees

18,579

17,840

36,751

34,475

Investment securities gains (losses), net

900

60,720

(4,424

)

60,198

Other

17,004

(1,705

)

31,580

12,535

Total noninterest income

138,082

176,335

268,282

300,013

NONINTEREST EXPENSE

Salaries and employee benefits

143,312

121,390

285,810

252,024

Occupancy, net

11,746

11,976

23,923

24,208

Equipment

17,086

18,315

34,935

36,479

Supplies and services

4,195

3,492

8,070

6,754

Marketing and business development

7,124

5,308

12,459

10,240

Processing fees

26,572

19,338

49,812

37,781

Legal and consulting

7,059

11,265

14,344

18,176

Bankcard

8,307

5,880

15,440

12,447

Amortization of other intangible assets

2,117

1,225

4,415

2,296

Regulatory fees

6,123

3,464

11,674

6,946

Other

7,032

12,474

16,843

21,554

Total noninterest expense

240,673

214,127

477,725

428,905

Income before income taxes

110,020

173,599

221,614

299,354

Income tax expense

19,910

36,043

39,067

55,835

NET INCOME

$

90,110

$

137,556

$

182,547

$

243,519

PER SHARE DATA

Net income – basic

$

1.86

$

2.85

$

3.77

$

5.03

Net income – diluted

1.85

2.83

3.75

4.99

Dividends

0.38

0.37

0.76

0.74

Weighted average shares outstanding – basic

48,514,277

48,347,226

48,474,865

48,376,868

Weighted average shares outstanding – diluted

48,668,413

48,673,964

48,707,487

48,755,059

Consolidated Statements of Comprehensive Income

UMB Financial Corporation

(unaudited, dollars in thousands)

Three Months Ended

Six Months Ended

June 30,

June 30,

2023

2022

2023

2022

Net income

$

90,110

$

137,556

$

182,547

$

243,519

Other comprehensive (loss) income, before tax:

Unrealized gains and losses on debt securities:

Change in unrealized holding gains and losses, net

(87,505

)

(308,352

)

6,152

(931,262

)

Less: Reclassification adjustment for net losses included in net income

—

—

433

—

Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity

10,312

12,539

20,295

13,121

Change in unrealized gains and losses on debt securities

(77,193

)

(295,813

)

26,880

(918,141

)

Unrealized gains and losses on derivative hedges:

Change in unrealized gains and losses on derivative hedges, net

1,848

4,437

321

9,117

Less: Reclassification adjustment for net gains included in net income

(2,660

)

(1,090

)

(5,221

)

(1,941

)

Change in unrealized gains and losses on derivative hedges

(812

)

3,347

(4,900

)

7,176

Other comprehensive (loss) income, before tax

(78,005

)

(292,466

)

21,980

(910,965

)

Income tax benefit (expense)

18,950

70,791

(5,076

)

219,848

Other comprehensive (loss) income

(59,055

)

(221,675

)

16,904

(691,117

)

Comprehensive income (loss)

$

31,055

$

(84,119

)

$

199,451

$

(447,598

)

Consolidated Statements of Shareholders' Equity

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

Common
Stock

Capital
Surplus

Retained
Earnings

Accumulated
Other
Comprehensive
Income (Loss)

Treasury
Stock

Total

Balance - January 1, 2022

$

55,057

$

1,110,520

$

2,176,998

$

126,314

$

(323,465

)

$

3,145,424

Total comprehensive income (loss)

—

—

243,519

(691,117

)

—

(447,598

)

Dividends ($0.74 per share)

—

—

(36,063

)

—

—

(36,063

)

Purchase of treasury stock

—

—

—

—

(31,806

)

(31,806

)

Issuances of equity awards, net of forfeitures

—

(6,630

)

—

—

7,309

679

Recognition of equity-based compensation

—

11,223

—

—

—

11,223

Sale of treasury stock

—

174

—

—

111

285

Exercise of stock options

—

217

—

—

527

744

Balance - June 30, 2022

$

55,057

$

1,115,504

$

2,384,454

$

(564,803

)

$

(347,324

)

$

2,642,888

Balance - January 1, 2023

$

55,057

$

1,125,949

$

2,536,086

$

(702,735

)

$

(347,264

)

$

2,667,093

Total comprehensive income

—

—

182,547

16,904

—

199,451

Dividends ($0.76 per share)

—

—

(37,185

)

—

—

(37,185

)

Purchase of treasury stock

—

—

—

—

(7,902

)

(7,902

)

Issuances of equity awards, net of forfeitures

—

(9,764

)

—

—

10,483

719

Recognition of equity-based compensation

—

8,455

—

—

—

8,455

Sale of treasury stock

—

115

—

—

140

255

Exercise of stock options

—

222

—

—

520

742

Balance - June 30, 2023

$

55,057

$

1,124,977

$

2,681,448

$

(685,831

)

$

(344,023

)

$

2,831,628

Average Balances / Yields and Rates

UMB Financial Corporation

(tax - equivalent basis)

(unaudited, dollars in thousands)

Three Months Ended June 30,

2023

2022

Average

Average

Average

Average

Balance

Yield/Rate

Balance

Yield/Rate

Assets

Loans, net of unearned interest

$

22,191,601

6.20

%

$

18,317,943

3.72

%

Securities:

Taxable

9,228,103

2.37

9,825,114

1.93

Tax-exempt

3,819,884

3.36

3,814,394

3.13

Total securities

13,047,987

2.66

13,639,508

2.27

Federal funds and resell agreements

276,459

5.64

1,100,918

1.27

Interest bearing due from banks

2,707,740

5.07

2,632,307

0.64

Trading securities

12,538

5.37

10,190

5.35

Total earning assets

38,236,325

4.91

35,700,866

2.86

Allowance for credit losses

(216,876

)

(182,118

)

Other assets

2,345,714

2,043,977

Total assets

$

40,365,163

$

37,562,725

Liabilities and Shareholders' Equity

Interest-bearing deposits

$

20,939,638

3.27

%

$

17,379,810

0.36

%

Federal funds and repurchase agreements

2,336,929

4.25

2,658,219

0.75

Borrowed funds

3,137,267

5.17

272,254

4.92

Total interest-bearing liabilities

26,413,834

3.58

20,310,283

0.47

Noninterest-bearing demand deposits

10,535,325

14,209,159

Other liabilities

539,172

394,923

Shareholders' equity

2,876,832

2,648,360

Total liabilities and shareholders' equity

$

40,365,163

$

37,562,725

Net interest spread

1.33

%

2.39

%

Net interest margin

2.44

2.60

Average Balances / Yields and Rates

UMB Financial Corporation

(tax - equivalent basis)

(unaudited, dollars in thousands)

Six Months Ended June 30,

2023

2022

Average

Average

Average

Average

Balance

Yield/Rate

Balance

Yield/Rate

Assets

Loans, net of unearned interest

$

21,734,142

6.05

%

$

17,842,153

3.61

%

Securities:

Taxable

9,288,392

2.34

9,644,345

1.90

Tax-exempt

3,832,505

3.36

3,926,444

3.08

Total securities

13,120,897

2.64

13,570,789

2.24

Federal funds and resell agreements

363,341

5.29

1,182,891

1.01

Interest bearing due from banks

2,127,343

4.77

3,965,267

0.34

Trading securities

10,907

5.77

15,484

4.70

Total earning assets

37,356,630

4.77

36,576,584

2.66

Allowance for credit losses

(206,559

)

(190,123

)

Other assets

2,292,479

1,966,176

Total assets

$

39,442,550

$

38,352,637

Liabilities and Shareholders' Equity

Interest-bearing deposits

$

20,294,984

2.97

%

$

17,964,006

0.24

%

Federal funds and repurchase agreements

2,399,090

4.04

2,815,130

0.51

Borrowed funds

2,174,157

5.22

271,994

4.79

Total interest-bearing liabilities

24,868,231

3.27

21,051,130

0.34

Noninterest-bearing demand deposits

11,223,478

14,117,879

Other liabilities

549,787

393,732

Shareholders' equity

2,801,054

2,789,896

Total liabilities and shareholders' equity

$

39,442,550

$

38,352,637

Net interest spread

1.50

%

2.32

%

Net interest margin

2.59

2.47

Business Segment Information

UMB Financial Corporation

(unaudited, dollars in thousands)

Three Months Ended June 30, 2023

Commercial
Banking

Institutional
Banking

Personal
Banking

Total

Net interest income

$

144,389

$

50,397

$

30,825

$

225,611

Provision for credit losses

11,055

234

1,711

13,000

Noninterest income

25,666

86,813

25,603

138,082

Noninterest expense

85,896

91,591

63,186

240,673

Income (loss) before taxes

73,104

45,385

(8,469

)

110,020

Income tax expense (benefit)

13,230

8,213

(1,533

)

19,910

Net income (loss)

$

59,874

$

37,172

$

(6,936

)

$

90,110

Three Months Ended June 30, 2022

Commercial
Banking

Institutional
Banking

Personal
Banking

Total

Net interest income

$

149,094

$

34,981

40,716

$

224,791

Provision for credit losses

12,067

89

1,244

13,400

Noninterest income

56,894

81,082

38,359

176,335

Noninterest expense

79,521

76,511

58,095

214,127

Income before taxes

114,400

39,463

19,736

173,599

Income tax expense

23,752

8,193

4,098

36,043

Net income

$

90,648

$

31,270

$

15,638

$

137,556

Six Months Ended June 30, 2023

Commercial
Banking

Institutional
Banking

Personal
Banking

Total

Net interest income

$

295,416

$

105,482

$

66,409

$

467,307

Provision for credit losses

32,099

331

3,820

36,250

Noninterest income

48,568

171,051

48,663

268,282

Noninterest expense

169,900

180,962

126,863

477,725

Income (loss) before taxes

141,985

95,240

(15,611

)

221,614

Income tax expense (benefit)

25,030

16,789

(2,752

)

39,067

Net income (loss)

$

116,955

$

78,451

$

(12,859

)

$

182,547

Six Months Ended June 30, 2022

Commercial
Banking

Institutional
Banking

Personal
Banking

Total

Net interest income

$

294,096

$

61,233

$

79,817

$

435,146

Provision for credit losses

5,027

240

1,633

6,900

Noninterest income

83,594

154,354

62,065

300,013

Noninterest expense

159,110

152,112

117,683

428,905

Income before taxes

213,553

63,235

22,566

299,354

Income tax expense

39,831

11,795

4,209

55,835

Net income

$

173,722

$

51,440

$

18,357

$

243,519

The company has strategically aligned its operations into the following three reportable segments: Commercial Banking, Institutional Banking, and Personal Banking. Senior executive officers regularly evaluate business segment financial results produced by the company’s internal reporting system in deciding how to allocate resources and assess performance for individual business segments. The company’s reportable segments include certain corporate overhead, technology and service costs that are allocated based on methodologies that are applied consistently between periods. For comparability purposes, amounts in all periods are based on methodologies in effect at June 30, 2023.

Non-GAAP Financial Measures

Net operating income Non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2023

2022

2023

2022

Net income (GAAP)

$

90,110

$

137,556

$

182,547

$

243,519

Adjustments:

Acquisition expense

18

—

57

—

Severance expense

4,891

52

5,377

197

Tax-impact of adjustments (i)

(1,178

)

(12

)

(1,304

)

(47

)

Total Non-GAAP adjustments (net of tax)

3,731

40

4,130

150

Net operating income (Non-GAAP)

$

93,841

$

137,596

$

186,677

$

243,669

Earnings per share - diluted (GAAP)

$

1.85

$

2.83

$

3.75

$

4.99

Acquisition expense

—

—

—

—

Severance expense

0.10

—

0.11

—

Tax-impact of adjustments (i)

(0.02

)

—

(0.03

)

—

Operating earnings per share - diluted (Non-GAAP)

$

1.93

$

2.83

$

3.83

$

4.99

GAAP

Return on average assets

0.90

%

1.47

%

0.93

%

1.28

%

Return on average equity

12.56

20.83

13.14

17.60

Non-GAAP

Operating return on average assets

0.93

%

1.47

%

0.95

%

1.28

%

Operating return on average equity

13.08

20.84

13.44

17.61

(i) Calculated using the company’s marginal tax rate of 24.0%.

Operating noninterest expense and operating efficiency ratio Non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands)

Three Months Ended
June 30,

Six Months Ended
June 30,

2023

2022

2023

2022

Noninterest expense

$

240,673

$

214,127

$

477,725

$

428,905

Adjustments to arrive at operating noninterest expense (pre-tax):

Acquisition expense

18

—

57

—

Severance expense

4,891

52

5,377

197

Total Non-GAAP adjustments (pre-tax)

4,909

52

5,434

197

Operating noninterest expense (Non-GAAP)

$

235,764

$

214,075

$

472,291

$

428,708

Noninterest expense

$

240,673

$

214,127

$

477,725

$

428,905

Less: Amortization of other intangibles

2,117

1,225

4,415

2,296

Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A)

$

238,556

$

212,902

$

473,310

$

426,609

Operating noninterest expense

$

235,764

$

214,075

$

472,291

$

428,708

Less: Amortization of other intangibles

2,117

1,225

4,415

2,296

Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B)

$

233,647

$

212,850

$

467,876

$

426,412

Net interest income

$

225,611

$

224,791

$

467,307

$

435,146

Noninterest income

138,082

176,335

268,282

300,013

Less: Losses on sales of securities available for sale, net

—

—

(2

)

—

Total Non-GAAP Revenue (denominator A)

$

363,693

$

401,126

$

735,591

$

735,159

Efficiency ratio (numerator A/denominator A)

65.59

%

53.08

%

64.34

%

58.03

%

Operating efficiency ratio (Non-GAAP) (numerator B/denominator A)

64.24

53.06

63.61

58.00

Operating pre-tax, pre-provision income non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2023

2022

2023

2022

Net interest income (GAAP)

$

225,611

$

224,791

$

467,307

$

435,146

Noninterest income (GAAP)

138,082

176,335

268,282

300,013

Noninterest expense (GAAP)

240,673

214,127

477,725

428,905

Adjustments to arrive at operating noninterest expense:

Acquisition expense

18

—

57

—

Severance expense

4,891

52

5,377

197

Total Non-GAAP adjustments

4,909

52

5,434

197

Operating noninterest expense (Non-GAAP)

235,764

214,075

472,291

428,708

Operating pre-tax, pre-provision income (Non-GAAP)

$

127,929

$

187,051

$

263,298

$

306,451

Net interest income earnings per share - diluted (GAAP)

$

4.64

$

4.62

$

9.60

$

8.93

Noninterest income (GAAP)

2.84

3.62

5.51

6.16

Noninterest expense (GAAP)

4.95

4.40

9.81

8.80

Acquisition expense

—

—

—

—

Severance expense

0.10

—

0.11

—

Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP)

$

2.63

$

3.84

$

5.41

$

6.29

Operating pre-tax, pre-provision income - FTE Non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2023

2022

2023

2022

Net interest income (GAAP)

$

225,611

$

224,791

$

467,307

$

435,146

Adjustments to arrive at net interest income - FTE:

Tax equivalent interest

6,575

6,278

13,130

12,677

Net interest income - FTE (Non-GAAP)

232,186

231,069

480,437

447,823

Noninterest income (GAAP)

138,082

176,335

268,282

300,013

Noninterest expense (GAAP)

240,673

214,127

477,725

428,905

Adjustments to arrive at operating noninterest expense:

Acquisition expense

18

—

57

—

Severance expense

4,891

52

5,377

197

Total Non-GAAP adjustments

4,909

52

5,434

197

Operating noninterest expense (Non-GAAP)

235,764

214,075

472,291

428,708

Operating pre-tax, pre-provision income - FTE (Non-GAAP)

$

134,504

$

193,329

$

276,428

$

319,128

Net interest income earnings per share - diluted (GAAP)

$

4.64

$

4.62

$

9.60

$

8.93

Tax equivalent interest

0.14

0.13

0.27

0.26

Net interest income - FTE (Non-GAAP)

4.78

4.75

9.87

9.19

Noninterest income (GAAP)

2.84

3.62

5.51

6.16

Noninterest expense (GAAP)

4.95

4.40

9.81

8.80

Acquisition expense

—

—

—

—

Severance expense

0.10

—

0.11

—

Operating pre-tax, pre-provision income - FTE earnings per share - diluted (Non-GAAP)

$

2.77

$

3.97

$

5.68

$

6.55

Tangible book value non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands except share and per share data)

As of June 30,

2023

2022

Total shareholders' equity (GAAP)

$

2,831,628

$

2,642,888

Less: Intangible assets

Goodwill

207,385

182,225

Other intangibles, net

75,184

14,465

Total intangibles, net

282,569

196,690

Total tangible shareholders' equity (Non-GAAP)

$

2,549,059

$

2,446,198

Total shares outstanding

48,517,750

48,305,286

Ratio of total shareholders' equity (book value) per share

$

58.36

$

54.71

Ratio of total tangible shareholders' equity (tangible book value) per share (Non-GAAP)

52.54

50.64

Operating return on average tangible equity excluding AOCI non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands)

Three Months Ended
June 30,

Six Months Ended
June 30,

2023

2022

2023

2022

Average total shareholders' equity (GAAP)

$

2,876,832

$

2,648,360

$

2,801,054

$

2,789,896

Less: Average intangible assets

Average goodwill

207,385

182,225

207,385

178,478

Average other intangibles, net

75,685

15,261

76,954

14,686

Average total intangibles, net

283,070

197,486

284,339

193,164

Average total tangible shareholders' equity (Non-GAAP)

2,593,762

2,450,874

2,516,715

2,596,732

Less: Average accumulated other comprehensive loss (AOCI)

(644,003

)

(507,740

)

(643,782

)

(318,119

)

Average total tangible shareholders' equity excluding AOCI (Non-GAAP)

$

3,237,765

$

2,958,614

$

3,160,497

$

2,914,851

Net operating income (Non-GAAP)

$

93,841

$

137,596

$

186,677

$

243,669

Non-GAAP

Operating return on average tangible equity excluding AOCI

11.63

%

18.65

%

11.91

%

16.86

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20230725886576/en/

Contacts

Media Contact: Stephanie Hague: 816.860.5088
Investor Relations Contact: Kay Gregory: 816.860.7106

Advertisement

Recommended Stories