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Share Name | Share Symbol | Market | Type |
---|---|---|---|
UMB Financial Corporation | NASDAQ:UMBF | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.69 | 0.84% | 82.56 | 78.81 | 84.84 | 83.57 | 81.63 | 82.88 | 561,264 | 01:00:00 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): 1/27/2015
UMB FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Commission File Number : 0-4887
MO | 43-0903811 | |
(State or other jurisdiction of incorporation) |
(IRS Employer Identification No.) |
1010 Grand Blvd., Kansas City, MO 64106
(Address of principal executive offices, including zip code)
(816) 860-7000
(Registrants telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13c-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
On January 27, 2015, UMB Financial Corporation (the Company) issued a press release announcing the financial results for the Company for the quarter ending December 31, 2014. A copy of the press release is attached as Exhibit 99.1.
The information contained in Item 2.02 of this Current Report and in Exhibit 99.1 is being furnished and shall not be deemed to be filed with the SEC for the purposes of Section 18 of the Exchange Act of 1934, as amended or otherwise subject to the liabilities of that section.
Item 7.01 | Regulation FD Disclosure |
The information provided under Item 7.01 of this Current Report on Form 8-K is being furnished and is not deemed to be filed with the SEC for the purposes of Section 18 of the Exchange Act of 1934, as amended or otherwise subject to the liabilities of that section.
The Company is furnishing a copy of materials that will be used in the Companys shareholder conference call on January 28, 2015, at 8:30 a.m. (CST). A copy of the materials is attached as Exhibit 99.2 and will be available on the Companys website at www.umbfinancial.com. The materials are dated January 27, 2015, and the Company disclaims any obligation to correct or update any of the materials in the future.
The Companys January 27, 2015, press release that is attached as Exhibit 99.1 also announced that the Board of Directors declared a regular quarterly dividend of $0.235 per share payable on April 1, 2015, to shareholders of record on March 10, 2015.
Item 9.01 | Financial Statements and Exhibits |
Exhibit 99.1 | Press Release announcing financial results for quarter ending December 31, 2014, and announcing dividend declaration | |
Exhibit 99.2 | Investor Presentation Materials, dated January 27, 2015. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
UMB FINANCIAL CORPORATION | ||
By: |
/s/ Brian J. Walker | |
Brian J. Walker | ||
EVP, Chief Financial Officer And Chief Accounting Officer |
Date: January 27, 2015
Exhibit 99.1
UMB Financial Corporation | News Release |
1010 Grand Boulevard
Kansas City, MO 64106
816.860.7000
umb.com
//FOR IMMEDIATE RELEASE//
Media Contact:
Kelli Christman
816.860.5088
Kelli.Christman@umb.com
Investor Relations Contact:
Abby Wendel
816.860.1685
Abigail.Wendel@umb.com
UMB Financial Corporation Reports Fourth Quarter Net Income of $26.9 Million and
Full-Year 2014 Net Income of $120.7 Million
Selected highlights:
| Fourth quarter 2014 earnings of $26.9 million, or $0.59 per diluted share, a decrease of $7.7 million compared to fourth quarter 2013 earnings |
| Equity earnings on alternative investments decreased $19.6 million in the fourth quarter 2014 compared to the fourth quarter 2013 due largely to mark-to-market valuations related to Prairie Capital Management investments |
| Noninterest income was 55.9 percent of total revenue for the fourth quarter 2014, down from 61.2 percent in the fourth quarter 2013 |
| Full-year 2014 earnings of $120.7 million, or $2.65 per diluted share, a decrease of $13.3 million compared to full-year 2013 earnings |
| Net loans at December 31, 2014 increased 14.6 percent to $7.4 billion compared to December 31, 2013 |
| Nonperforming loans decreased to 0.37 percent of loans as of December 31, 2014, from 0.47 percent of loans as of December 31, 2013 |
| Total assets under management stood at $42.8 billion as of December 31, 2014, an increase of 3.4 percent compared to year-end 2013 |
| Announced agreement to acquire Marquette Financial Companies to expand our presence in key growth markets of Phoenix and Dallas |
KANSAS CITY, Mo. (January 27, 2015) UMB Financial Corporation (Nasdaq: UMBF), a diversified financial holding company, announced earnings for the three months ended December 31, 2014, of $26.9 million or $0.60 per share ($0.59 diluted). This is a decrease of $7.7 million, or 22.3 percent, compared to fourth quarter 2013 earnings of $34.7 million or $0.78 per share ($0.77 diluted). Earnings for the year ended December 31, 2014, were $120.7 million or $2.69 per share ($2.65 diluted) or a decrease of $13.3 million, or 9.9 percent, compared to the prior year-end earnings of $134.0 million or $3.25 per share ($3.20 diluted).
A decrease in equity earnings related to Prairie Capital Management coupled with the associated contingency reserve in 2014 was a primary cause of the change in net income year-over-year, masking the strength in our results, said Mariner Kemper, chairman and chief executive officer. All in all, 2014 was another successful year for UMB. We continue to demonstrate strong business fundamentals with double-digit,
year-over-year loan growth, excellent credit metrics, diversified revenue streams and strong customer relationships. We once again hold the top deposit market-share position in Kansas City, and we are pleased with the growth across our footprint. Expectations for continuing headwinds in 2015 only reinforce the value of our differentiated business model, which is time-tested, and we believe our long-term performance will continue to set us apart from our peers.
Net Interest Income and Margin
Net interest income for the fourth quarter of 2014 increased $5.0 million, or 5.8 percent, compared to the same period in 2013. Average earning assets increased by $697.0 million, or 4.8 percent, compared to the fourth quarter of 2013. This increase was due largely to an $837.2 million, or 12.9 percent, increase in average loans and a $177.3 million, or 2.5 percent, increase in average total securities, including trading securities, offset by a decrease of $339.7 million, or 37.3 percent, in interest-bearing due from banks. Net interest margin increased one basis point to 2.52 percent for the three months ended December 31, 2014, compared to the same period in 2013.
Noninterest Income and Expense
Noninterest income decreased $20.4 million, or 15.0 percent, for the three months ended December 31, 2014, compared to the same period in 2013. This decrease is primarily attributable to a decrease in equity earnings on alternative investments related to Prairie Capital Management (PCM) equity method investments of $19.6 million, or 129.7 percent. For the three months ended December 31, 2014, unrealized losses on PCM equity method investments totaled $4.5 million, compared to unrealized gains of $15.1 million for the same period last year. In addition, trust and securities processing income decreased $2.6 million, or 3.7 percent, for the three months ended December 31, 2014, compared to the same period in 2013. The decrease in trust and securities processing income was driven by a $6.7 million, or a 26.2 percent, decrease in advisory fee income from the Scout Funds, offset by a $1.9 million, or 8.3 percent, increase in fees related to institutional and personal investment management services, and a $1.7 million, or 8.3 percent, increase in fund administration and custody services. Other noninterest income decreased $2.5 million, or 40.5 percent, for the three months ended December 31, 2014, compared to the same period in 2013. Bankcard fees increased $3.0 million, or 20.6 percent, due to an increase in interchange income.
Looking at the fee businesses, Kemper said, In the fourth quarter, noninterest income for Scout Investments decreased $5.7 million due largely to the shift in the mix of assets under management for the fourth quarter 2014 relative to the mix in the fourth quarter of 2013. AUM for the quarter remained approximately the same at $31.2 billion, but equity assets were 33 percent of total AUM in the fourth quarter 2014 compared to 51 percent in the same period a year ago. In other fee businesses, trust and securities processing income for Fund Services increased 8.3 percent in the fourth quarter, compared with the same period a year ago, driven by assets under administration of $198.3 billion as of December 31, 2014. In Payment Solutions, fourth quarter card purchase volume was $2.1 billion, driving bankcard fees to $17.3 million.
Noninterest expense decreased $3.7 million, or 2.2 percent, for the three months ended December 31, 2014, compared to the same period in 2013. Processing fees decreased $1.4 million, or 9.6 percent, primarily due to a decrease in fees paid by the advisor to third-party distributors of the Scout Funds. Other noninterest expense decreased by $9.7 million, or 64.8 percent, due to a $7.7 million decrease in fair value adjustments on contingent consideration liabilities. Salaries and employee benefits expense increased $1.4 million, or 1.6 percent, due to an increase in salaries and wages of $3.4 million, or 6.2 percent, offset by a decrease in employee benefits expense of $1.6 million or 11.0 percent. Equipment expense increased by $1.4 million, or 10.8 percent, due to an increase in computer hardware and software expenses. Bankcard expenses increased $2.2 million, or 49.3 percent, due to an increase in bankcard fraud losses of $1.9 million. Legal and consulting expenses increased $2.1 million, or 35.7 percent. Included in total noninterest expense for the three month period ended December 31, 2014 is $1.9 million of acquisition-related expenses, including $1.7 million of legal and consulting expenses, related to the pending acquisition of Marquette Financial Companies.
Balance Sheet
Average total assets for the three months ended December 31, 2014, were $16.2 billion compared to $15.5 billion for the same period in 2013, an increase of $0.7 billion, or 4.5 percent. Average earning assets increased by $0.7 billion, or 4.8 percent, for the year.
Average loan balances for the three months ended December 31, 2014, increased $0.8 million, or 12.9 percent, to $7.3 billion compared to the same period in 2013. Actual loan balances on December 31, 2014, were $7.5 billion, an increase of $0.9 billion, or 14.5 percent, compared to December 31, 2013. This increase was primarily driven by an increase in commercial loans of $512.5 million, or 15.5 percent, an increase in commercial real estate loans of $164.2 million, or 9.6 percent, an increase in construction loans of $103.1 million, or 67.5 percent, and an increase in HELOCs of $77.5 million, or 13.7 percent. Nonperforming loans, defined as nonaccrual loans and restructured loans, decreased to $27.4 million on December 31, 2014, from $30.7 million on December 31, 2013. As a percentage of loans, nonperforming loans decreased to 0.37 percent as of December 31, 2014, compared to 0.47 percent as of December 31, 2013. The companys allowance for loan losses totaled $76.1 million, or 1.02 percent of loans, as of December 31, 2014, compared to $74.8 million, or 1.15 percent of loans, as of December 31, 2013.
For the three months ended December 31, 2014, average securities, including trading securities, totaled $7.2 billion. This is an increase of $177.3 million, or 2.5 percent, from the same period in 2013.
Average total deposits increased $151.1 million, or 1.2 percent, to $12.9 billion for the three months ended December 31, 2014, compared to the same period in 2013. Average noninterest-bearing demand deposits increased $500.4 million, or 10.2 percent, compared to 2013. Average interest-bearing deposits decreased by $349.3 million, or 4.5 percent, in 2014 as compared to 2013. Total deposits as of December 31, 2014 and 2013 remained the same at $13.6 billion. Also, as of December 31, 2014, noninterest-bearing demand deposits were 41.4 percent of total deposits, compared to 38.0 percent as of December 31, 2013.
As of December 31, 2014, UMB had total shareholders equity of $1.6 billion, an increase of 9.1 percent, as compared to December 31, 2013.
Year-to-Date
Earnings for the year ended December 31, 2014, were $120.7 million or $2.69 per share ($2.65 diluted). This is a decrease of $13.3 million, or 9.9 percent, compared to the prior year-end earnings of $134.0 million or $3.25 per share ($3.20 diluted).
Net interest income for the year ended December 31, 2014, increased $16.8 million, or 5.0 percent, compared to the same period in 2013. Average earning assets increased by $1.0 billion, or 6.9 percent, compared to the same period in 2013. This increase was due primarily to a $754.0 million, or 12.1 percent, increase in average loans, and a $179.3 million, or 27.0 percent, increase in interest-bearing due from banks. Net interest margin decreased six basis points to 2.49 percent for the year ended December 31, 2014, compared to the same period in 2013.
Noninterest income increased $6.9 million, or 1.4 percent, to $498.7 million for the year ended December 31, 2014, as compared to the same period in 2013. The increase in noninterest income is primarily driven by increased trust and securities processing income of $22.1 million, or 8.3 percent. The increase in trust and securities processing income was primarily due to a $12.8 million, or 15.4 percent, increase in fees related to institutional and personal investment management services, and an $8.4 million, or 10.6 percent, increase in fund administration and custody services, offset by a $1.9 million, or 2.0 percent, decrease in advisory fee income from the Scout Funds. Bankcard fees increased $5.2 million, or 8.4 percent, due to increased interchange income. These increases in noninterest income were offset by a decrease in gains on sales of securities available for sale of $4.4 million, or 51.7 percent, and a decrease in equity earnings on alternative investments on PCM equity method investments of $15.1 million, or 79.1 percent, for the year ended December 31, 2014, compared to the same period in 2013.
Noninterest expense increased $42.7 million, or 6.8 percent, for the year ended December 31, 2014, compared to the same period in 2013. This increase was driven by an increase in salaries and employee benefits expense of $18.9 million, or 5.6 percent, an increase in equipment expense of $4.4 million, or 9.0
percent, and a $20.3 million contingency reserve. These increases were offset by a decrease in other noninterest expense of $4.6 million due to a decline in the fair value adjustments on contingent consideration liabilities.
Dividend Declaration
At the companys quarterly board meeting, the Board of Directors declared a $0.235 per share quarterly cash dividend, payable on April 1, 2015, to shareholders of record at the close of business on March 10, 2015.
Conference Call
The company plans to host a conference call to discuss its 2014 fourth quarter and full-year earnings results on Jan. 28, 2015, at 8:30 a.m. (CT).
Interested parties may access the call by dialing (toll-free) 888-317-6016 or (U.S.) 412-317-6016 and requesting to join the UMB Financial call. The live call can also be accessed by visiting the investor relations area of umbfinancial.com or by using the following the link:
http://services.choruscall.com/links/umbf150128.html
A replay of the conference call may be heard until Feb. 11, 2015, by calling (toll-free) 877-344-7529 or (U.S.) 412-317-0088. The replay pass code required for playback is 10058917. The call replay may also be accessed via the companys website umbfinancial.com by visiting the investor relations area.
Forward-Looking Statements:
This 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, 2013, 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 SEC. 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. 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 diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors. For more information, visit umb.com, umbfinancial.com, blog.umb.com or follow us on Twitter at @UMBBank, Facebook at facebook.com/UMBBank and LinkedIn at linkedin.com/company/umb-bank.
CONSOLIDATED BALANCE SHEETS | UMB Financial Corporation | |||||||
|
||||||||
(unaudited, dollars in thousands) | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Assets |
||||||||
Loans |
$ | 7,465,794 | $ | 6,520,512 | ||||
Allowance for loan losses |
(76,140 | ) | (74,751 | ) | ||||
|
|
|
|
|||||
Net loans |
7,389,654 | 6,445,761 | ||||||
|
|
|
|
|||||
Loans held for sale |
624 | 1,357 | ||||||
Investment securities: |
||||||||
Available for sale |
6,911,936 | 6,762,411 | ||||||
Held to maturity |
278,054 | 209,770 | ||||||
Trading securities |
27,203 | 28,464 | ||||||
Federal Reserve Bank Stock and other |
68,474 | 50,482 | ||||||
|
|
|
|
|||||
Total investment securities |
7,285,667 | 7,051,127 | ||||||
|
|
|
|
|||||
Federal funds and resell agreements |
118,105 | 87,018 | ||||||
Interest-bearing due from banks |
1,539,386 | 2,093,467 | ||||||
Cash and due from banks |
444,299 | 521,001 | ||||||
Bank premises and equipment, net |
257,835 | 249,689 | ||||||
Accrued income |
79,297 | 78,216 | ||||||
Goodwill |
209,758 | 209,758 | ||||||
Other intangibles |
43,991 | 55,585 | ||||||
Other assets |
132,344 | 118,873 | ||||||
|
|
|
|
|||||
Total assets |
$ | 17,500,960 | $ | 16,911,852 | ||||
|
|
|
|
|||||
Liabilities |
||||||||
Deposits: |
||||||||
Noninterest-bearing demand |
$ | 5,643,989 | $ | 5,189,998 | ||||
Interest-bearing demand and savings |
6,709,281 | 7,001,126 | ||||||
Time deposits under $100,000 |
424,925 | 491,792 | ||||||
Time deposits of $100,000 or more |
838,664 | 957,850 | ||||||
|
|
|
|
|||||
Total deposits |
13,616,859 | 13,640,766 | ||||||
|
|
|
|
|||||
Federal funds and repurchase agreements |
2,025,132 | 1,583,218 | ||||||
Short-term debt |
| 107 | ||||||
Long-term debt |
8,810 | 5,055 | ||||||
Accrued expenses and taxes |
180,074 | 153,450 | ||||||
Other liabilities |
26,327 | 23,191 | ||||||
|
|
|
|
|||||
Total liabilities |
15,857,202 | 15,405,787 | ||||||
|
|
|
|
|||||
Shareholders Equity |
||||||||
Common stock |
55,057 | 55,057 | ||||||
Capital surplus |
894,602 | 882,407 | ||||||
Retained earnings |
963,911 | 884,630 | ||||||
Accumulated other comprehensive income |
11,006 | (32,640 | ) | |||||
Treasury stock |
(280,818 | ) | (283,389 | ) | ||||
|
|
|
|
|||||
Total shareholders equity |
1,643,758 | 1,506,065 | ||||||
|
|
|
|
|||||
Total liabilities and shareholders equity |
$ | 17,500,960 | $ | 16,911,852 | ||||
|
|
|
|
Consolidated Statements of Income | UMB Financial Corporation | |||||||||||||||
|
||||||||||||||||
(unaudited, dollars in thousands except share and per share data) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest Income |
||||||||||||||||
Loans |
$ | 64,433 | $ | 59,206 | $ | 245,278 | $ | 229,665 | ||||||||
Securities: |
||||||||||||||||
Taxable interest |
19,338 | 18,881 | 76,204 | 75,202 | ||||||||||||
Tax-exempt interest |
9,759 | 10,183 | 39,209 | 40,399 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total securities income |
29,097 | 29,064 | 115,413 | 115,601 | ||||||||||||
Federal funds and resell agreements |
93 | 67 | 259 | 193 | ||||||||||||
Interest-bearing due from banks |
510 | 642 | 2,525 | 1,918 | ||||||||||||
Trading securities |
85 | 152 | 396 | 964 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total interest income |
94,218 | 89,131 | 363,871 | 348,341 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Interest Expense |
||||||||||||||||
Deposits |
3,076 | 2,961 | 12,242 | 13,183 | ||||||||||||
Federal funds and repurchase agreements |
323 | 296 | 1,616 | 1,739 | ||||||||||||
Other |
(95 | ) | (40 | ) | (42 | ) | 150 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Total interest expense |
3,304 | 3,217 | 13,816 | 15,072 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net interest income |
90,914 | 85,914 | 350,055 | 333,269 | ||||||||||||
Provision for loan losses |
3,000 | 4,000 | 17,000 | 17,500 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net interest income after provision for loan losses |
87,914 | 81,914 | 333,055 | 315,769 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Noninterest Income |
||||||||||||||||
Trust and securities processing |
69,072 | 71,685 | 288,054 | 265,948 | ||||||||||||
Trading and investment banking |
4,840 | 4,317 | 19,398 | 20,641 | ||||||||||||
Service charges on deposits |
21,480 | 20,692 | 85,299 | 84,133 | ||||||||||||
Insurance fees and commissions |
765 | 661 | 3,011 | 3,727 | ||||||||||||
Brokerage fees |
2,595 | 2,743 | 10,761 | 11,470 | ||||||||||||
Bankcard fees |
17,321 | 14,365 | 67,250 | 62,031 | ||||||||||||
Gains on sale of available for sale securities, net |
62 | (10 | ) | 4,127 | 8,542 | |||||||||||
Equity earnings on alternative investments |
(4,487 | ) | 15,100 | 3,975 | 19,048 | |||||||||||
Other |
3,600 | 6,054 | 16,813 | 16,293 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total noninterest income |
115,248 | 135,607 | 498,688 | 491,833 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Noninterest Expense |
||||||||||||||||
Salaries and employee benefits |
90,115 | 88,691 | 358,569 | 339,691 | ||||||||||||
Occupancy, net |
10,312 | 10,116 | 40,197 | 39,291 | ||||||||||||
Equipment |
14,618 | 13,195 | 53,609 | 49,207 | ||||||||||||
Supplies and services |
5,403 | 5,777 | 20,411 | 20,387 | ||||||||||||
Marketing and business development |
7,182 | 7,190 | 24,148 | 22,703 | ||||||||||||
Processing fees |
13,496 | 14,936 | 56,049 | 57,791 | ||||||||||||
Legal and consulting |
7,907 | 5,826 | 20,407 | 18,703 | ||||||||||||
Bankcard |
6,812 | 4,563 | 19,594 | 18,381 | ||||||||||||
Amortization of intangible assets |
2,974 | 3,164 | 12,193 | 13,218 | ||||||||||||
Regulatory fees |
2,643 | 2,064 | 10,445 | 9,129 | ||||||||||||
Contingency reserve |
| | 20,272 | | ||||||||||||
Other |
5,251 | 14,904 | 31,032 | 35,677 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total noninterest expense |
166,713 | 170,426 | 666,926 | 624,178 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
36,449 | 47,095 | 164,817 | 183,424 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income tax provision |
9,509 | 12,432 | 44,162 | 49,459 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ | 26,940 | $ | 34,663 | $ | 120,655 | 133,965 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | ||||||||||||||||
Per Share Data |
||||||||||||||||
Net income - basic |
$ | 0.60 | $ | 0.78 | $ | 2.69 | $ | 3.25 | ||||||||
Net income diluted |
0.59 | 0.77 | 2.65 | 3.20 | ||||||||||||
Dividends |
0.235 | 0.225 | 0.910 | 0.870 | ||||||||||||
Weighted average shares outstanding |
44,920,106 | 44,511,742 | 44,844,578 | 41,275,839 |
Condensed Statements of Consolidated Comprehensive Income | UMB Financial Corporation | |||||||||||||||
|
||||||||||||||||
(unaudited, dollars in thousands, except per share data) | ||||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net Income |
$ | 26,940 | $ | 34,663 | $ | 120,655 | $ | 133,965 | ||||||||
Other comprehensive income, net of tax: |
||||||||||||||||
Unrealized gains on securities: |
||||||||||||||||
Change in unrealized holding gains (losses), net |
14,991 | (26,769 | ) | 74,147 | (178,500 | ) | ||||||||||
Less: Reclassifications adjustment for (gains) losses included in net income |
(62 | ) | 10 | (4,127 | ) | (8,542 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Change in unrealized gains (losses) on securities during the period |
14,929 | (26,759 | ) | 70,020 | (187,042 | ) | ||||||||||
Income tax (expense) benefit |
(5,750 | ) | 9,804 | (26,374 | ) | 68,814 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss) |
9,179 | (16,955 | ) | 43,646 | (118,228 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income |
$ | 36,119 | $ | 17,708 | $ | 164,301 | $ | 15,737 | ||||||||
|
|
|
|
|
|
|
|
Consolidated Statements of | ||||||||||||||||||||||||
Shareholders Equity | UMB Financial Corporation | |||||||||||||||||||||||
|
||||||||||||||||||||||||
(unaudited, dollars in thousands, except per share data) | ||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Common | Capital | Retained | Comprehensive | Treasury | ||||||||||||||||||||
Stock | Surplus | Earnings | (Loss) Income | Stock | Total | |||||||||||||||||||
Balance - January 1, 2013 |
$ | 55,057 | $ | 732,069 | $ | 787,015 | $ | 85,588 | $ | (380,384 | ) | $ | 1,279,345 | |||||||||||
Total Comprehensive income |
| | 133,965 | (118,228 | ) | | 15,737 | |||||||||||||||||
Cash dividends ($0.87 per share) |
| | (36,350 | ) | | | (36,350 | ) | ||||||||||||||||
Purchase of treasury stock |
| | | | (3,501 | ) | (3,501 | ) | ||||||||||||||||
Issuance of equity awards |
| (1,651 | ) | | | 2,101 | 450 | |||||||||||||||||
Recognition of equity based compensation |
| 7,936 | | | | 7,936 | ||||||||||||||||||
Net tax benefit related to equity compensation plans |
| 1,224 | | | | 1,224 | ||||||||||||||||||
Sale of treasury stock |
| 520 | | | 256 | 776 | ||||||||||||||||||
Exercise of stock options |
| 3,986 | | | 5,032 | 9,018 | ||||||||||||||||||
Common Stock Issuance |
| 138,323 | | | 93,107 | 231,430 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance December 31, 2013 |
$ | 55,057 | $ | 882,407 | $ | 884,630 | $ | (32,640 | ) | $ | (283,389 | ) | $ | 1,506,065 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance - January 1, 2014 |
$ | 55,057 | 882,407 | 884,630 | (32,640 | ) | (283,389 | ) | 1,506,065 | |||||||||||||||
Total Comprehensive income |
| | 120,655 | 43,646 | | 164,301 | ||||||||||||||||||
Cash dividends ($0.91 per share) |
| | (41,374 | ) | | | (41,374 | ) | ||||||||||||||||
Purchase of treasury stock |
| | | | (5,741 | ) | (5,741 | ) | ||||||||||||||||
Issuance of equity awards |
| (2,338 | ) | | | 2,827 | 489 | |||||||||||||||||
Recognition of equity based compensation |
| 9,172 | | | | 9,172 | ||||||||||||||||||
Net tax benefit related to equity compensation plans |
| 1,880 | | | | 1,880 | ||||||||||||||||||
Sale of treasury stock |
| 596 | | | 340 | 936 | ||||||||||||||||||
Exercise of stock options |
| 2,885 | | | 5,145 | 8,030 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance December 31, 2014 |
$ | 55,057 | $ | 894,602 | $ | 963,911 | $ | 11,006 | $ | (280,818 | ) | $ | 1,643,758 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances / Yields and Rates | UMB Financial Corporation | |||||||||||||||
(tax - equivalent basis) | ||||||||||||||||
(unaudited, dollars in thousands) | Three Months Ended December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Average Balance |
Average Yield/Rate |
Average Balance |
Average Yield/Rate |
|||||||||||||
Assets |
||||||||||||||||
Loans, net of unearned interest |
$ | 7,320,930 | 3.49 | % | $ | 6,483,711 | 3.62 | % | ||||||||
Securities: |
||||||||||||||||
Taxable |
5,006,800 | 1.53 | 4,820,959 | 1.55 | ||||||||||||
Tax-exempt |
2,148,256 | 2.77 | 2,148,904 | 2.91 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total securities |
7,155,056 | 1.91 | 6,969,863 | 1.97 | ||||||||||||
Federal funds and resell agreements |
73,821 | 0.50 | 51,635 | 0.51 | ||||||||||||
Interest-bearing due from banks |
571,921 | 0.35 | 911,623 | 0.28 | ||||||||||||
Trading securities |
29,019 | 1.46 | 36,888 | 1.93 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total earning assets |
15,150,747 | 2.61 | 14,453,720 | 2.60 | ||||||||||||
Allowance for loan losses |
(77,527 | ) | (75,135 | ) | ||||||||||||
Other assets |
1,158,402 | 1,155,176 | ||||||||||||||
|
|
|
|
|||||||||||||
Total assets |
$ | 16,231,622 | $ | 15,533,761 | ||||||||||||
|
|
|
|
|||||||||||||
Liabilities and Shareholders Equity |
||||||||||||||||
Interest-bearing deposits |
$ | 7,446,164 | 0.16 | % | $ | 7,795,495 | 0.15 | % | ||||||||
Federal funds and repurchase agreements |
1,535,253 | 0.08 | 1,172,917 | 0.10 | ||||||||||||
Borrowed funds |
7,021 | (5.37 | ) | 5,223 | (2.96 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total interest-bearing liabilities |
8,988,438 | 0.15 | 8,973,635 | 0.14 | ||||||||||||
Noninterest-bearing demand deposits |
5,403,856 | 4,903,429 | ||||||||||||||
Other liabilities |
187,359 | 142,552 | ||||||||||||||
Shareholders equity |
1,651,969 | 1,514,145 | ||||||||||||||
|
|
|
|
|||||||||||||
Total liabilities and shareholders equity |
$ | 16,231,622 | $ | 15,533,761 | ||||||||||||
|
|
|
|
|||||||||||||
Net interest spread |
2.46 | % | 2.47 | % | ||||||||||||
Net interest margin |
2.52 | 2.51 | ||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Average Balance |
Average Yield/Rate |
Average Balance |
Average Yield/Rate |
|||||||||||||
Assets |
||||||||||||||||
Loans, net of unearned interest |
$ | 6,975,338 | 3.52 | % | $ | 6,221,318 | 3.69 | % | ||||||||
Securities: |
||||||||||||||||
Taxable |
4,898,826 | 1.56 | 4,876,304 | 1.54 | ||||||||||||
Tax-exempt |
2,122,822 | 2.84 | 2,102,216 | 2.97 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total securities |
7,021,648 | 1.94 | 6,978,520 | 1.97 | ||||||||||||
Federal funds and resell agreements |
48,869 | 0.53 | 36,589 | 0.53 | ||||||||||||
Interest-bearing due from banks |
843,134 | 0.30 | 663,818 | 0.29 | ||||||||||||
Trading securities |
32,189 | 1.46 | 56,022 | 1.90 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total earning assets |
14,921,178 | 2.58 | 13,956,267 | 2.66 | ||||||||||||
Allowance for loan losses |
(76,459 | ) | (72,370 | ) | ||||||||||||
Other assets |
1,154,174 | 1,146,865 | ||||||||||||||
|
|
|
|
|||||||||||||
Total assets |
$ | 15,998,893 | $ | 15,030,762 | ||||||||||||
|
|
|
|
|||||||||||||
Liabilities and Shareholders Equity |
||||||||||||||||
Interest-bearing deposits |
$ | 7,494,744 | 0.16 | % | $ | 7,220,675 | 0.18 | % | ||||||||
Federal funds and repurchase agreements |
1,535,038 | 0.11 | 1,613,584 | 0.11 | ||||||||||||
Borrowed funds |
6,059 | (0.69 | ) | 4,972 | 3.02 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total interest-bearing liabilities |
9,035,841 | 0.15 | 8,839,231 | 0.17 | ||||||||||||
Noninterest-bearing demand deposits |
5,196,529 | 4,709,643 | ||||||||||||||
Other liabilities |
166,758 | 144,781 | ||||||||||||||
Shareholders equity |
1,599,765 | 1,337,107 | ||||||||||||||
|
|
|
|
|||||||||||||
Total liabilities and shareholders equity |
$ | 15,998,893 | $ | 15,030,762 | ||||||||||||
|
|
|
|
|||||||||||||
Net interest spread |
2.43 | % | 2.49 | % | ||||||||||||
Net interest margin |
2.49 | 2.55 |
FOURTH QUARTER 2014 | ||||||||
FINANCIAL HIGHLIGHTS | UMB Financial Corporation | |||||||
|
||||||||
(unaudited, dollars in thousands, except share and per share data) | ||||||||
Year Ended December 31 |
2014 | 2013 | ||||||
Net interest income |
$ | 350,055 | $ | 333,269 | ||||
Provision for loan losses |
17,000 | 17,500 | ||||||
Noninterest income |
498,688 | 491,833 | ||||||
Noninterest expense |
666,926 | 624,178 | ||||||
Income before income taxes |
164,817 | 183,424 | ||||||
Net income |
120,655 | 133,965 | ||||||
Net income per share - Basic |
2.69 | 3.25 | ||||||
Net income per share - Diluted |
2.65 | 3.20 | ||||||
Return on average assets |
0.75 | % | 0.89 | % | ||||
Return on average equity |
7.54 | % | 10.02 | % | ||||
Three Months Ended December 31 |
||||||||
Net interest income |
$ | 90,914 | $ | 85,914 | ||||
Provision for loan losses |
3,000 | 4,000 | ||||||
Noninterest income |
115,248 | 135,607 | ||||||
Noninterest expense |
166,713 | 170,426 | ||||||
Income before income taxes |
36,449 | 47,095 | ||||||
Net income |
26,940 | 34,663 | ||||||
Net income per share - Basic |
0.60 | 0.78 | ||||||
Net income per share - Diluted |
0.59 | 0.77 | ||||||
Return on average assets |
0.66 | % | 0.89 | % | ||||
Return on average equity |
6.47 | % | 9.08 | % | ||||
At December 31 |
||||||||
Assets |
$ | 17,500,960 | $ | 16,911,852 | ||||
Loans, net of unearned interest |
7,465,794 | 6,520,512 | ||||||
Securities |
7,285,667 | 7,051,127 | ||||||
Deposits |
13,616,859 | 13,640,766 | ||||||
Shareholders equity |
1,643,758 | 1,506,065 | ||||||
Book value per share |
36.10 | 33.30 | ||||||
Market price per share |
56.89 | 64.28 | ||||||
Equity to assets |
9.39 | % | 8.91 | % | ||||
Allowance for loan losses |
$ | 76,140 | $ | 74,751 | ||||
As a % of loans |
1.02 | % | 1.15 | % | ||||
Nonaccrual and restructured loans |
$ | 27,382 | $ | 30,706 | ||||
As a % of loans |
0.37 | % | 0.47 | % | ||||
Loans over 90 days past due |
$ | 3,830 | $ | 3,218 | ||||
As a % of loans |
0.05 | % | 0.05 | % | ||||
Other real estate owned |
$ | 394 | $ | 1,288 | ||||
Net loan charge-offs quarter-to-date |
$ | 4,176 | $ | 4,187 | ||||
As a % of average loans |
0.23 | % | 0.26 | % | ||||
Net loan charge-offs year-to-date |
$ | 15,610 | $ | 14,175 | ||||
As a % of average loans |
0.22 | % | 0.23 | % | ||||
Common shares outstanding |
45,532,188 | 45,221,237 | ||||||
Average Balances | ||||||||
Year Ended December 31 |
||||||||
Assets |
$ | 15,998,893 | $ | 15,030,762 | ||||
Loans, net of unearned interest |
6,975,338 | 6,221,318 | ||||||
Securities |
7,053,837 | 7,034,542 | ||||||
Deposits |
12,691,273 | 11,930,318 | ||||||
Shareholders equity |
1,599,765 | 1,337,107 |
Business Segment Information | UMB Financial Corporation | |||||||||||||||||||
|
||||||||||||||||||||
(unaudited, dollars in thousands) | ||||||||||||||||||||
Three Months Ended December 31, 2014 | ||||||||||||||||||||
Bank | Payment Solutions |
Institutional Investment Management |
Asset Servicing |
Total | ||||||||||||||||
Net interest income |
$ | 75,862 | $ | 14,003 | $ | | $ | 1,049 | $ | 90,914 | ||||||||||
Provision for loan losses |
1,617 | 1,383 | | | 3,000 | |||||||||||||||
Noninterest income |
42,380 | 21,479 | 29,212 | 22,177 | 115,248 | |||||||||||||||
Noninterest expense |
97,070 | 26,507 | 23,156 | 19,980 | 166,713 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income before taxes |
19,555 | 7,592 | 6,056 | 3,246 | 36,449 | |||||||||||||||
Income tax expense |
5,158 | 2,029 | 1,445 | 877 | 9,509 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income |
$ | 14,397 | $ | 5,563 | $ | 4,611 | $ | 2,369 | $ | 26,940 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Average assets |
$ | 12,324,000 | $ | 2,948,000 | $ | 72,000 | $ | 888,000 | $ | 16,232,000 | ||||||||||
Three Months Ended December 31, 2013 | ||||||||||||||||||||
Bank | Payment Solutions |
Institutional Investment Management |
Asset Servicing |
Total | ||||||||||||||||
Net interest income |
$ | 73,874 | $ | 11,505 | $ | (10 | ) | $ | 545 | $ | 85,914 | |||||||||
Provision for loan losses |
1,765 | 2,235 | | | 4,000 | |||||||||||||||
Noninterest income |
62,406 | 17,737 | 34,892 | 20,572 | 135,607 | |||||||||||||||
Noninterest expense |
99,080 | 23,121 | 29,582 | 18,643 | 170,426 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income before taxes |
35,435 | 3,886 | 5,300 | 2,474 | 47,095 | |||||||||||||||
Income tax expense |
8,918 | 1,271 | 1,127 | 1,116 | 12,432 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income |
$ | 26,517 | $ | 2,615 | $ | 4,173 | $ | 1,358 | $ | 34,663 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Average assets |
$ | 11,277,000 | $ | 1,780,000 | $ | 75,000 | $ | 2,402,000 | $ | 15,534,000 |
Year Ended December 31, 2014 | ||||||||||||||||||||
Bank | Payment Solutions |
Institutional Investment Management |
Asset Servicing |
Total | ||||||||||||||||
Net interest income |
$ | 292,357 | $ | 52,251 | $ | (3 | ) | $ | 5,450 | $ | 350,055 | |||||||||
Provision for loan losses |
9,175 | 7,825 | | | 17,000 | |||||||||||||||
Noninterest income |
194,223 | 84,477 | 131,226 | 88,762 | 498,688 | |||||||||||||||
Noninterest expense |
405,065 | 94,177 | 92,008 | 75,676 | 666,926 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income before taxes |
72,340 | 34,726 | 39,215 | 18,536 | 164,817 | |||||||||||||||
Income tax expense |
19,487 | 9,311 | 10,331 | 5,033 | 44,162 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income |
$ | 52,853 | $ | 25,415 | $ | 28,884 | $ | 13,503 | $ | 120,655 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Average assets |
$ | 12,099,000 | $ | 2,456,000 | $ | 72,000 | $ | 1,372,000 | $ | 15,999,000 | ||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Bank | Payment Solutions |
Institutional Investment Management |
Asset Servicing |
Total | ||||||||||||||||
Net interest income |
$ | 285,112 | $ | 45,832 | $ | (32 | ) | $ | 2,357 | $ | 333,269 | |||||||||
Provision for loan losses |
5,535 | 11,965 | | | 17,500 | |||||||||||||||
Noninterest income |
210,535 | 74,223 | 126,442 | 80,633 | 491,833 | |||||||||||||||
Noninterest expense |
376,307 | 86,746 | 88,336 | 72,789 | 624,178 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income before taxes |
113,805 | 21,344 | 38,074 | 10,201 | 183,424 | |||||||||||||||
Income tax expense |
28,548 | 6,739 | 10,002 | 4,170 | 49,459 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income |
$ | 85,257 | $ | 14,605 | $ | 28,072 | $ | 6,031 | $ | 133,965 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Average assets |
$ | 11,255,000 | $ | 1,736,000 | $ | 77,000 | $ | 1,963,000 | $ | 15,031,000 |
Quality endures.
Fourth Quarter & Year-End 2014
January 27, 2015
UMB Financial
Exhibit 99.2 |
Cautionary Notice about Forward-Looking Statements
2
This presentation 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, 2013, 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 Securities
and Exchange Commission (SEC). 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. 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. |
Performance Highlights |
Earnings Summary
4Q 2014
$ in thousands, except per-share data; unaudited
4
4Q'14
4Q'13
3Q'14
vs. 4Q'13
vs. 3Q'14
Net Interest Income
90,914
$
85,914
$
87,526
$
5.8
3.9
Noninterest Income
115,248
135,607
126,475
(15.0)
(8.9)
Total Revenue
206,162
221,521
214,001
(6.9)
(3.7)
Noninterest Expense
166,713
170,426
161,461
(2.2)
3.3
Income Before Provision & Taxes
39,449
51,095
52,540
(22.8)
(24.9)
Provision for loan losses
3,000
4,000
4,500
(25.0)
(33.3)
Income before Taxes
36,449
47,095
48,040
(22.6)
(24.1)
Income Tax Provision
9,509
12,432
12,410
(23.5)
(23.4)
Net Income
26,940
$
34,663
$
35,630
$
(22.3)
(24.4)
Diluted EPS
0.59
$
0.77
$
0.78
$
(23.4)
(24.4)
Dividends per share
0.235
0.225
0.225
4.4
4.4
WASO
44,920,106
44,511,742
44,890,309
0.9
0.1
% variance |
Earnings Summary
Full-Year 2014
$ in thousands, except per-share data; unaudited
5
2014
2013
2012
'14 to '13
'13 to '12
Net Interest Income
350,055
$
333,269
$
320,056
$
5.0
4.1
Noninterest Income
498,688
491,833
458,122
1.4
7.4
Total Revenue
848,743
825,102
778,178
2.9
6.0
Noninterest Expense
666,926
624,178
590,454
6.8
5.7
Income Before Provision & Taxes
181,817
200,924
187,724
(9.5)
7.0
Provision for loan losses
17,000
17,500
17,500
(2.9)
-
Income before Taxes
164,817
183,424
170,224
(10.1)
7.8
Income Tax Provision
44,162
49,459
47,507
(10.7)
4.1
Net Income
120,655
$
133,965
$
122,717
$
(9.9)
9.2
Diluted EPS
2.65
$
3.20
$
3.04
$
(17.2)
5.3
Dividends per share
0.910
0.870
0.830
4.6
4.8
WASO
44,844,578
41,275,839
40,034,428
8.6
3.1
Variance |
9.08%
6.13%
8.77%
8.77%
6.47%
0.89%
0.58%
0.89%
0.90%
0.66%
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
Return on Avg Equity
Return on Avg Assets
73.64%
79.67%
73.32%
72.25%
77.46%
2.51%
2.39%
2.53%
2.53%
2.52%
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
Efficiency Ratio
Net Interest Margin
Performance Metrics
ROAE/ROAA
Efficiency Ratio/NIM
6 |
4
th
Quarter 2014
Average Balance, AFS:
$6.8 billion
Average Yield:
1.84%
Investment Mix
Securities Available for Sale,
At December 31, 2014
Agencies
High Quality Investment Portfolio
7
Corporates
Municipals
Mortgage-Backed Securities
Treasuries
AFS Portfolio Statistics
47.4%
29.0%
14.3%
7.5%
1.8%
Roll off
Purchased
($ millions)
Yield
($ millions)
Yield
1Q'14
$528
1.53%
$618
1.26%
2Q'14
$275
2.23%
$560
1.35%
3Q'14
$244
1.98%
$311
1.45%
4Q'14
$285
2.12%
$382
1.55%
Scheduled Cash Flow
1Q'15
$335
2.06%
Next 12 months
$1,238
1.79%
Securities Gains
$ in thousands
4Q'13
(10)
$
1Q'14
1,470
$
2Q'14
2,569
$
3Q'14
26
$
4Q'14
62
$
Duration/Life
(in months)
at 12/31/14
at 09/30/14
Avg. Life Total
43.62
45.15
Duration Total
37.71
40.20 |
38.8%
42.2%
38.0%
41.4%
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
Interest Bearing
Non-Interest Bearing
Deposit Growth
Deposits & % of Free Funds
At period end; $ billions
4Q14
Cost of Funds 0.15%
Including DDA 0.09%
8
$10.2
$13.6
$11.7
$13.6 |
Select Balance Sheet Items
9
$ in thousands, average balances; unaudited
vs. Dec '13
vs. Sep '14
Avg. Balance
Avg. Balance
Avg. Balance
Assets
Loans, net of unearned interest
7,320,930
$
3.49
6,483,711
$
3.62
6,996,363
$
3.50
12.9
4.6
Total securities
7,155,056
1.91
6,969,863
1.97
6,992,618
1.92
2.7
2.3
Total earning assets
15,150,747
2.61
14,453,720
2.60
14,575,849
2.62
4.8
3.9
Allowance for loan losses
(77,527)
(75,135)
(77,347)
3.2
0.2
Total assets
16,231,622
$
15,533,761
$
15,638,322
$
4.5
3.8
Liabilities and Shareholders' Equity
Interest-bearing deposits
7,446,164
$
0.16
7,795,495
$
0.15
7,444,093
$
0.16
(4.5)
0.0
Total interest-bearing liabilities
8,988,438
0.15
8,973,635
0.14
8,797,486
0.15
0.2
2.2
Noninterest-bearing demand deposits
5,403,856
4,903,429
5,060,662
10.2
6.8
Shareholders' Equity
1,651,969
1,514,145
1,612,470
9.1
2.4
Total liabilities and shareholders' equity
16,231,622
$
15,533,761
$
15,638,322
$
4.5
3.8
Net interest spread
2.46
2.47
2.47
Net interest margin
2.52
2.51
2.53
% variance
December 31, 2014
December 31, 2013
September 30, 2014
Avg Yield
/ Rate %
Avg Yield
/ Rate %
Avg Yield
/ Rate %
Three Months Ended |
Consistent Loan Growth
5 Year
CAGR
11.1%
10
Average Loans & Loan Yields
$4.6
$4.9
$5.4
$6.5
$7.3
4.81%
4.45%
4.01%
3.62%
3.49%
Average Loans, Net of Unearned Interest
Average Loan Yield |
$4,187
$3,737
$3,713
$3,985
$4,176
0.26%
0.23%
0.22%
0.23%
0.23%
4Q'13
1Q'14
2Q'14
3Q'14
4Q\'14
Net Charge-offs
NCOs/Avg Loans
Quality Credit Metrics
Net Charge-Offs
$000s
11
$30,706
$30,153
$27,175
$32,662
$27,382
0.47%
0.45%
0.39%
0.46%
0.37%
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
Nonperforming Loans
NPLs/Loans
Nonperforming Loans
$000s |
12.45
12.20
11.92
14.43
14.04
11.30
11.20
11.05
13.61
13.29
6.56
6.71
6.81
8.41
8.72
2010
2011
2012
2013
2014
Total Risk-Based Capital
Tier 1 Capital
Tier 1 Leverage
Tier 1 Capital Ratio vs. Industry
4Q 2014
12
Average Equity
($ billions)
5 yr
CAGR
10.0%
Capital Ratio Trends
Industry Median as of 3Q14; Source: SNL Financial
Balance Sheet
Strong Capital Position |
59.9%
18.6%
15.0%
4.2%
3.1%
2.3%
0.7%
0.1%
Bankcard Fees
Noninterest Income Highlights
4Q 2014
5 Year
CAGR
15.0%
Trust & Securities Processing Composition:
Trading & Investment Banking
Other
Deposit Service Charges
Trust & Securities Processing
Brokerage Fees
Gains on Sale of Securities
($ millions)
Insurance Fees
13
Source of income:
4Q'14
4Q'13
Institutional Investment Mgmt.
$29.1
$34.3
Asset Servicing
$22.2
$20.5
Bank (inst. & personal asset mgmt.)
$17.8
$16.9
$69.1
$71.7
Excludes ($4,487) from Equity Earnings on Alternative Investments, which represents
(3.9%) of noninterest income $34.4
$46.3
$51.1
$58.3
$71.7
$69.1
Trust & Securities Processing Revenue |
57.8%
17.1%
13.5%
3.9%
3.4%
2.2%
0.8%
0.8%
0.6%
Bankcard Fees
Noninterest Income Highlights
Full-Year 2014
Trust & Securities Processing Composition:
Equity Earnings/Alternatives
Trading & Investment Banking
Other
Deposit Service Charges
Trust & Securities Processing
Brokerage Fees
Gains on Sale of Securities
($ millions)
Insurance Fees
14
Source of income:
2014
2013
Institutional Investment Mgmt.
$130.5
$124.5
Asset Servicing
$88.1
$79.7
Bank (inst. & personal asset mgmt.)
$69.5
$61.7
$288.1
$265.9
$120.5
$160.4
$208.4
$225.1
$265.9
$288.1
5 Year
CAGR
19.0%
Trust & Securities Processing Revenue |
0%
20%
40%
60%
80%
100%
$100
$200
$300
$400
$500
$600
$700
Salary/Benefit Expense
Noninterest Income
Total Noninterest Expense
Coverage Ratio*
Non-Int
Expense
5yr
CAGR
7.7%
Noninterest Expense
4th
Quarter
noninterest
expense
decreased
2.2%,
or
$3.7
million,
to
$166.7
million
vs.
4Q13
Salary
5yr
CAGR
8.3%
Non-Int
Income
5yr
CAGR
10.0%
Managed FTE Costs; Growing Noninterest Income
15
* Noninterest Income/Noninterest Expense
Demonstrating Annual
Operating Leverage
Full-year 2014 noninterest expense increased 6.8%, or $42.7 million, to $666.9
million vs. 2013 Primary drivers:
Contingency reserve expense related to Prairie Capital Management was $20.3
million in 2014 versus $0 in 2013
Salary and benefit expense increased $18.9 million, or 5.6%
Equipment expense increased by $4.4 million, or 8.9%
Primary drivers:
Other
expense
decreased
by
$9.7
million,
or
64.8%,
primarily
due
to
a
$7.7
million
decrease
in
fair
value
adjustments
on contingent consideration liabilities.
Processing fees decreased $1.4 million, or 9.6%, driven by reduced distribution
fees paid by Scout |
Business Segment Updates |
$8.5
$9.6
$10.5
$11.9
$12.7
33.1%
35.6%
40.5%
39.5%
40.9%
2010
2011
2012
2013
2014
Interest Bearing
Non-Interest Bearing
$4.5
$4.8
$5.3
$6.2
$7.0
2010
2011
2012
2013
2014
Bank
17
Average Net Loans
$ in billions
5 yr
CAGR
9.7%
5 yr
CAGR
10.8%
Average Deposits
$ in billions
Net loans grew for the 19
consecutive quarter, increasing by
14.6% year-over-year to $7.4 billion
AUM for individual and institutional
bank clients stood at $11.6 billion at
year-end and its 5-year compound
annual growth rate is 20.8%
Private Banking average loans
increased 31.5% to $428.2 million vs.
4Q13
4 Quarter 2014 Highlights
% Change
% Change
Y/Y
Y/Y
2014
2013
2014
2013
Net interest income
292,357
$
285,112
$
2.5%
75,862
$
73,874
$
2.7%
Provision for loan losses
9,175
5,535
65.8%
1,617
1,765
-8.4%
Noninterest income
194,223
210,535
-7.7%
42,380
62,406
-32.1%
Noninterest expense
405,065
376,307
7.6%
97,070
99,080
-2.0%
NI before taxes
72,340
113,805
-36.4%
19,555
35,435
-44.8%
Income tax expense
19,487
28,548
-31.7%
5,158
8,918
-42.2%
Net income
52,853
$
85,257
$
-38.0%
14,397
$
26,517
$
-45.7%
pre-tax profit margin
14.9%
23.0%
16.5%
26.0%
12 mos Ended
December 31,
3 mos Ended
December 31,
Bank
Segment
Results
$
in
000s,
unaudited
th
th |
Bank -
Lending
18
Diverse Loan Book
(Actual Loan Balances at December 31)
*includes C&I, real estate construction and leases
45.2%
55.0%
28.3%
25.0%
10.4%
$5.0B
$6.5B
8.6%
8.9%
$5.7B
$7.5B
5.7%
4.2%
4.3%
3.0%
$4.6B
1.4%
2010
2011
2012
2013
2014
Commercial & Industrial*
Commercial Real Estate
Home Equity
Credit Card
Consumer Real Estate
Consumer -
Other |
Bank -
Deposits
Diverse Sources of Deposits
(Average Deposits for 12 Months Ended December 31)
19
29.9%
33.3%
40.3%
24.9%
8.1%
9.8%
4.6%
6.8%
7.0%
6.8%
2.4%
6.2%
4.2%
2.8%
7.5%
4.5%
$8.5B
$9.6B
$10.5B
$11.9B
$12.7B
0.7%
0.2%
2010
2011
2012
2013
2014
Commercial/Treasury Mgmt
Consumer Banking
Asset Servicing
Private Wealth Mgmt
Institutional Asset Mgmt
Healthcare Svcs
Small Business Banking
Inst. Banking & Investor Services
Other |
$3.49
$3.75
$4.19
$5.09
$5.74
2010
2011
2012
2013
2014
Commercial Loans By Region
Average C&I and CRE Loan Balances for Twelve Months Ended December 31
47.8%
45.9%
44.1%
42.6%
42.1%
0%
50%
100%
2010
2011
2012
2013
2014
KC
CO
STL
Greater MO
KS
OK
AZ
NE
TX
Bank
Commercial Banking
High Growth Regions
2014 vs. 2013
Texas
+493.9%
Arizona
+41.1%
Kansas
+13.7%
Loan Balances
$ in billions, Average C&I and CRE Loan Balances for Twelve Months Ended
December 31 5 yr
CAGR
11.1%
20 |
Bank
Private Wealth Mgmt. & Consumer Banking
21
$436
$533
$574
$566
$644
$479
$559
$608
$663
$755
47.7%
48.8%
48.5%
46.1%
46.0%
2010
2011
2012
2013
2014
Balances
Unused Commitments
Utilization
$7.4B
$7.6B
$8.8B
$10.2B
$11.6B
$0.91B
$1.09B
$1.18B
$1.23B
$1.40B
Home Equity Lines of Credit
$ in millions
Assets Under Management
$ in millions
$5,490
$5,366
$6,390
$7,044
$7,610
$1,744
$2,035
$2,219
$2,853
$3,603
$152
$188
$226
$351
$419
2010
2011
2012
2013
2014
Private Wealth & Institutional Asset Mgmt
Prairie Capital Management
Brokerage Assets |
$31.2
$32.2
$32.4
$30.6
$31.2
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
Institutional Investment Management
22
Total Scout Assets Under Management
$ in billions
Reams was selected by Russell
Investments to replace PIMCO in
a $2.7B sub-advised mandate
covering our Low Duration and
Core Plus products
Assets under management have
grown at a 4-year CAGR of
11.9% since the acquisition of
Reams at the end of 2010.
4 Quarter 2014 Highlights
Institutional Investment Management Segment Results
$ in 000s, unaudited
% Change
% Change
Y/Y
Y/Y
2014
2013
2014
2013
Net Interest income
(3)
$
(32)
$
90.6%
-
$
(10)
$
100.0%
Noninterest income
131,226
126,442
3.8%
29,212
34,892
-16.3%
Noninterest expense
92,008
88,336
4.2%
23,156
29,582
-21.7%
NI before taxes
39,215
38,074
3.0%
6,056
5,300
14.3%
Income tax expense
10,331
10,002
3.3%
1,445
1,127
28.2%
Net income
28,884
$
28,072
$
2.9%
4,611
$
4,173
$
10.5%
pre-tax profit margin
29.9%
30.1%
20.7%
15.2%
December 31,
12 mos Ended
3 mos Ended
December 31,
th |
AUM
Drivers $ in millions
$230.7
$996.1
Total Change
($millions)
$32,394.3
$32,163.5
Total AUM
($millions)
Institutional Investment Management
23
$1,858.5
$31,167.4
($1,767.0)
$30,627.3
$550.7
$31,178.1 |
Total AUM
$31.2B
$19.9B
$19.7B
Institutional Investment Management
24
$23.5B
$31.2B |
32.4%
30.8%
18.2%
10.0%
4.2%
4.4%
AUM by Strategy
As of December 31, 2014
Equity Strategies
International
Mid Cap
International ADR
Emerging Markets
Global
Small Cap
Other:
25
Fixed Income Strategies
Core Plus
Low Duration
Long Duration
Core
Intermediate
Unconstrained
Unconstrained UCITS
Real Return
Equity
Fixed Income
67%
33%
56.1%
37.2%
3.7%
2.6%
0.4%
Other:
Large Cap
Equity Opportunity
Global Aggregate |
$1.08
$1.31
$1.36
$1.29
$1.26
$1.58
$1.48
$1.37
$1.38
$1.79
$1.72
$1.64
$1.63
$2.10
$2.18
$2.11
$2.08
$14.6
$14.2
$15.7
$15.9
$18.0
Purchase Volume ($ billions)
Interchange ($ millions)
Payment Solutions
Total Card Purchase Volume
& Interchange Revenue
26
Durbin
effective
Credit and debit card purchase
volume increased 27.3% vs. 4Q13
to $2.1 billion and for the full year
reached nearly $8.5 billion
HSA deposits and assets grew by
42.8% vs. 4Q13 to $917.5 million
The number of Health Savings
Accounts increased by 34.4% year-
over-year and now stands at more
than 588,000
4 Quarter 2014 Highlights
th
% Change
% Change
Y/Y
Y/Y
2014
2013
2014
2013
Net interest income
52,251
$
45,832
$
14.0%
14,003
$
11,505
$
21.7%
Provision for loan losses
7,825
11,965
-34.6%
1,383
2,235
-38.1%
Noninterest income
84,477
74,223
13.8%
21,479
17,737
21.1%
Noninterest expense
94,177
86,746
8.6%
26,507
23,121
14.6%
NI before taxes
34,726
21,344
62.7%
7,592
3,886
95.4%
Income tax expense
9,311
6,739
38.2%
2,029
1,271
59.6%
Net income
25,415
$
14,605
$
74.0%
5,563
$
2,615
$
112.7%
pre-tax profit margin
25.4%
17.8%
21.4%
13.3%
3 mos Ended
December 31,
December 31,
12 mos Ended
Payment
Solutions
Segment
Results
$
in
000s,
unaudited |
8.9%
16.9%
23.4%
22.7%
32.5%
37.7%
41.0%
$252.3
$512.2
$461.2
$393.8
$350.0
$682.2
$536.4
$448.0
$421.4
$881.3
$748.6
$680.2
$649.1
$1,150.0
$1,152.1
$1,082.9
$1,052.3
0.41%
0.40%
0.42%
0.32%
0.28%
0.20%
0.25%
0.30%
0.35%
0.40%
0.45%
Virtual Card Volume
Other Healthcare Volume
Effective Interchange Rate *
Payment Solutions
27
Healthcare Purchase Volume Trends
$millions
* Interchange revenue from Healthcare cards divided by purchase volume on
Healthcare cards |
$84.2
$125.1
$169.8
$255.2
$298.5
$399.6
$595.0
$841.7
$16.7
$15.4
$20.9
$24.7
$24.9
$30.9
$47.4
$75.8
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
HSA $ Deposits (in millions)
HSA $ Assets (in millions)
Payment Solutions
28
Healthcare Deposits and Assets
$millions
$36.6M
$65.8M
$100.8M
$140.5M
$190.7M
$279.9M
$323.3M
$430.5M
$642.4M
$917.5M
Healthcare
provided
6.2% of Total
Avg. Deposits
in 2014 |
Asset Servicing
29
Assets Under Administration
$billions
Assets in the IMST increased 99% year-
over-year and now stand at $11.8 billion.
The number of funds serviced grew by
143 in the past 12 months, an increase of
nearly 14%
UMB Fund Services was named Best
Administrator
Liquid Alternatives
at
HFMWeeks 2014 US Hedge Fund
Services Awards in November
4 Quarter 2014 Highlights
th
% Change
% Change
Y/Y
Y/Y
2014
2013
2014
2013
Net interest income
5,450
$
2,357
$
131.2%
1,049
$
545
$
92.5%
Noninterest income
88,762
80,633
10.1%
22,177
20,572
7.8%
Noninterest expense
75,676
72,789
4.0%
19,980
18,643
7.2%
NI before taxes
18,536
10,201
81.7%
3,246
2,474
31.2%
Income tax expense
5,033
4,170
20.7%
877
1,116
-21.4%
Net income
13,503
$
6,031
$
123.9%
2,369
$
1,358
$
74.4%
pre-tax profit margin
19.7%
12.3%
14.0%
11.7%
3 mos Ended
December 31,
December 31,
12 mos Ended
Asset
Servicing
Segment
Results
$
in
000s,
unaudited |
Asset Servicing
Fund Accounting & Administration
Alternative Asset Servicing
Custody
Transfer Agency
30
$30.5
$35.9
$44.1
$63.0
$72.1
116
160
179
219
249
2010
2011
2012
2013
2014
Assets Under Administration
# of Funds Serviced
$21.3
$24.7
$26.3
$27.9
$31.5
406
467
532
514
579
2010
2011
2012
2013
2014
Assets Under Administration
# of Funds Serviced
$101.4
$115.6
$54.9
$68.0
$62.4
470
499
443
411
454
2010
2011
2012
2013
2014
Assets Under Administration
# of Custody Accounts
554.9
802.4
946.8
1,280.1
1,111.2
227
256
270
301
349
2010
2011
2012
2013
2014
# of Shareholders
# of Funds Serviced |
Strengths We are Leveraging
Diversified
revenue
Growing fee
businesses
Leadership
Success building a smartly
diversified financial services
company
Building scale through
strategic acquisitions
Professional management
teams leading highly engaged
workforce across the footprint
31 |
Building a company
for the next 100 years.
UMB Financial
Fourth Quarter & Year-End 2014 |
1 Year UMB Financial Chart |
1 Month UMB Financial Chart |
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