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UMB Financial Corporation Reports First Quarter Net Income of $106.0 Million

First Quarter 2022 Financial Highlights

  • GAAP net income of $106.0 million, or $2.17 per diluted share; net operating income (a non-GAAP financial measure) of $106.1 million, or $2.17 per diluted share.
  • Pre-tax, pre-provision income on a fully tax equivalent basis (PTPP-FTE, a non-GAAP financial measure) of $125.7 million, an increase of 10.9% compared to the fourth quarter of 2021.
  • Excluding Paycheck Protection Program (PPP) balances, average loans increased 19.1% on a linked-quarter, annualized basis.
  • Quarterly average deposits grew 21.5% compared to the first quarter of 2021.
  • Noninterest income increased 13.6% as compared to the first quarter of 2021, equal to 37.0% of total revenue.
  • Credit quality remained strong, with net charge-offs of just 0.20% of average loans, consistent with the company’s historical performance.

UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the first quarter of 2022 of $106.0 million, or $2.17 per diluted share, compared to $78.5 million, or $1.61 per diluted share, in the fourth quarter of 2021 (linked quarter) and $92.6 million, or $1.91 per diluted share, in the first quarter of 2021.

Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $106.1 million, or $2.17 per diluted share, for the first quarter of 2022, compared to $78.9 million, or $1.62 per diluted share, for the linked quarter and $92.8 million, or $1.91 per diluted share, for the first quarter of 2021. PTPP-FTE, a non-GAAP measure reconciled to the components of net income before taxes, the nearest comparable GAAP measure, later in this release, was $125.7 million, or $2.57 per diluted share, for the first quarter of 2022, compared to $113.4 million, or $2.32 per diluted share, for the linked quarter, and $108.7 million, or $2.24 per diluted share, for the first quarter of 2021. These PTPP-FTE results represent increases of 10.9% on a linked-quarter basis and 15.6% compared to the first quarter of 2021.

“Our results for the first quarter of 2022 reflect the team’s continued execution of our differentiated business model, with robust growth on both sides of our balance sheet, strong asset quality metrics, and sustained momentum in our fee income businesses,” said Mariner Kemper, chairman, president and chief executive officer. “Compared to the first quarter of 2021, average loans excluding PPP balances and average deposits increased 15.6% and 21.5%, respectively. Together with a 13.6% increase in fee income, our first quarter revenues increased 10.2% compared to the prior period. In addition, our results benefited from a provision release of $6.5 million in the first quarter, driven by favorable portfolio metrics and the improving macro-economic outlook. I am also extremely proud of the team’s continued commitment to the communities we serve, which you may read about in our 2022 corporate citizenship and ESG report.”

Summary of quarterly financial results

 

UMB Financial Corporation

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

 

Q4

 

 

Q1

 

 

 

2022

 

 

2021

 

 

2021

 

Net income (GAAP)

 

$

105,963

 

 

$

78,496

 

 

$

92,643

 

Earnings per share (diluted)

 

 

2.17

 

 

 

1.61

 

 

 

1.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

119,255

 

 

 

106,869

 

 

 

102,066

 

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

 

 

2.44

 

 

 

2.19

 

 

 

2.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

125,654

 

 

 

113,352

 

 

 

108,744

 

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

 

 

2.57

 

 

 

2.32

 

 

 

2.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income (Non-GAAP)

 

 

106,073

 

 

 

78,921

 

 

 

92,780

 

Operating earnings per share (diluted)

 

 

2.17

 

 

 

1.62

 

 

 

1.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.10

%

 

 

0.82

%

 

 

1.14

%

Return on average equity

 

 

14.65

 

 

 

9.91

 

 

 

12.56

 

Efficiency ratio

 

 

63.98

 

 

 

67.78

 

 

 

66.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

1.10

%

 

 

0.82

%

 

 

1.14

%

Operating return on average equity

 

 

14.67

 

 

 

9.97

 

 

 

12.58

 

Operating efficiency ratio

 

 

63.93

 

 

 

67.61

 

 

 

66.40

 

Summary of revenue

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

 

Q4

 

 

Q1

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2022

 

 

2021

 

 

2021

 

 

LQ

 

 

PY

 

Net interest income

 

$

210,355

 

 

$

210,570

 

 

$

194,115

 

 

$

(215

)

 

$

16,240

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust and securities processing

 

 

59,528

 

 

 

58,515

 

 

 

54,834

 

 

 

1,013

 

 

 

4,694

 

Trading and investment banking

 

 

5,440

 

 

 

6,977

 

 

 

9,356

 

 

 

(1,537

)

 

 

(3,916

)

Service charges on deposit accounts

 

 

24,642

 

 

 

21,607

 

 

 

21,976

 

 

 

3,035

 

 

 

2,666

 

Insurance fees and commissions

 

 

259

 

 

 

359

 

 

 

420

 

 

 

(100

)

 

 

(161

)

Brokerage fees

 

 

3,456

 

 

 

3,346

 

 

 

3,334

 

 

 

110

 

 

 

122

 

Bankcard fees

 

 

16,635

 

 

 

16,642

 

 

 

14,673

 

 

 

(7

)

 

 

1,962

 

Investment securities (losses) gains, net

 

 

(522

)

 

 

1,448

 

 

 

(8,336

)

 

 

(1,970

)

 

 

7,814

 

Other

 

 

14,240

 

 

 

9,888

 

 

 

12,640

 

 

 

4,352

 

 

 

1,600

 

Total noninterest income

 

$

123,678

 

 

$

118,782

 

 

$

108,897

 

 

$

4,896

 

 

$

14,781

 

Total revenue

 

$

334,033

 

 

$

329,352

 

 

$

303,012

 

 

$

4,681

 

 

$

31,021

 

Net interest income (FTE)

 

$

216,754

 

 

$

217,053

 

 

$

200,793

 

 

 

 

 

 

 

 

 

Net interest margin (FTE)

 

 

2.35

%

 

 

2.37

%

 

 

2.59

%

 

 

 

 

 

 

 

 

Total noninterest income as a % of total revenue

 

 

37.03

 

 

 

36.07

 

 

 

35.94

 

 

 

 

 

 

 

 

 

Net interest income

  • Net interest income totaled $210.4 million, which is flat as compared to the linked quarter. The benefit from growth in average earning assets was partially offset by $4.1 million in reduced income from PPP loans. Average earning assets increased $1.2 billion, or 3.2%, driven by loan growth and an increase in investment securities purchases, while noninterest-bearing deposits increased $900.7 million, or 6.9% and interest-bearing liabilities increased $406.1 million, or 1.9%.
  • Net interest margin for the first quarter was 2.35%, a decrease of two basis points from the linked quarter, driven by a decline in loan yields primarily due to $4.1 million in reduced income from PPP loans. Earning asset yields declined two basis points from the linked quarter, driven by a twenty-basis-point decline in loan yields and mix changes. The cost of interest-bearing liabilities increased one basis point to 0.21%. Net interest spread decreased three basis points to 2.26% from the linked quarter and was 24 basis points lower than the first quarter of 2021.
  • On a year-over-year basis, net interest income increased $16.2 million, or 8.4%, driven by a $2.8 billion, or 26.2% increase in average securities, coupled with a $1.1 billion, or 6.9%, increase in average loans. These increases were driven by organic loan growth and excess liquidity.
  • Average deposits increased 3.0% on a linked-quarter basis and 21.5% compared to the first quarter of 2021. Average noninterest-bearing demand deposit balances increased 6.9% on a linked-quarter basis and 43.8% compared to the first quarter of 2021.

Noninterest income

  • First quarter 2022 noninterest income increased $4.9 million, or 4.1%, on a linked-quarter basis, largely due to:
    • An increase of $3.0 million in service charges on deposits primarily driven by increased healthcare income related to customer transfer and conversion fees.
    • A gain of $2.4 million on the sale of the company’s factoring loan portfolio during the first quarter of 2022, recorded in other income.
    • An increase of $1.9 million in derivative income and $0.8 million in company-owned life insurance income, both recorded in other income. The increase in company-owned life insurance is offset by a proportionate increase in deferred compensation expense as noted below.
    • Increases of $0.9 million in corporate trust income and $0.4 million in fund services income, both recorded in trust and securities processing.
    • These increases were partially offset by a decrease of $2.7 million in gains on sales of available-for-sale securities, recorded in investment securities gains, and a decrease of $1.5 million in trading and investment banking income driven by decreased trading volume.
  • Compared to the prior year, noninterest income in the first quarter of 2022 increased $14.8 million, or 13.6%, primarily driven by:
    • An increase of $7.8 million in investment securities gains, primarily due to mark-to-market valuations on the company’s equity investment in TTCF.
    • Increases of $5.0 million in derivative income, recorded in other income, and $2.0 million in bankcard income, due to higher interchange revenue.
    • An increase of $4.7 million in trust and securities processing income, primarily driven by increases of $6.4 million and $1.7 million in fund services and corporate trust income, respectively. These increases were partially offset by a decrease of $3.4 million in trust income.
    • An increase of $2.7 million in service charges on deposits driven by increased healthcare income related to customer transfer and conversion fees and increased corporate service charge income.
    • These increases were partially offset by decreases of $3.9 million in trading and investment banking income driven by lower trading volume, $2.1 million in gains on sale of other assets, and $1.2 million in company-owned life insurance income, both recorded in other income. The decrease in company-owned life insurance is offset by a proportionate decrease in deferred compensation expense as noted below.

Noninterest expense

Summary of noninterest expense

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

 

Q4

 

 

Q1

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2022

 

 

2021

 

 

2021

 

 

LQ

 

 

PY

 

Salaries and employee benefits

 

$

130,634

 

 

$

131,360

 

 

$

127,681

 

 

$

(726

)

 

$

2,953

 

Occupancy, net

 

 

12,232

 

 

 

10,907

 

 

 

11,935

 

 

 

1,325

 

 

 

297

 

Equipment

 

 

18,164

 

 

 

19,886

 

 

 

19,615

 

 

 

(1,722

)

 

 

(1,451

)

Supplies and services

 

 

3,262

 

 

 

4,646

 

 

 

3,492

 

 

 

(1,384

)

 

 

(230

)

Marketing and business development

 

 

4,932

 

 

 

6,528

 

 

 

2,345

 

 

 

(1,596

)

 

 

2,587

 

Processing fees

 

 

18,443

 

 

 

19,083

 

 

 

15,417

 

 

 

(640

)

 

 

3,026

 

Legal and consulting

 

 

6,911

 

 

 

10,858

 

 

 

5,755

 

 

 

(3,947

)

 

 

1,156

 

Bankcard

 

 

6,567

 

 

 

4,865

 

 

 

4,956

 

 

 

1,702

 

 

 

1,611

 

Amortization of other intangible assets

 

 

1,071

 

 

 

1,110

 

 

 

1,380

 

 

 

(39

)

 

 

(309

)

Regulatory fees

 

 

3,482

 

 

 

3,393

 

 

 

2,546

 

 

 

89

 

 

 

936

 

Other

 

 

9,080

 

 

 

9,847

 

 

 

5,824

 

 

 

(767

)

 

 

3,256

 

Total noninterest expense

 

$

214,778

 

 

$

222,483

 

 

$

200,946

 

 

$

(7,705

)

 

$

13,832

 

  • Noninterest expense for the first quarter of 2022 was $214.8 million, a decrease of $7.7 million, or 3.5%, from the linked quarter and an increase of $13.8 million, or 6.9%, from the first quarter of 2021.
  • The linked-quarter decrease in noninterest expense was driven by:
    • A decrease of $11.5 million in salaries and bonus expense, recorded in salaries and employee benefits, driven primarily by increased incentive compensation tied to business growth and higher overall company performance during the fourth quarter of 2021.
    • Decreases of $3.9 million in legal and consulting expense and $1.6 million in marketing and business development due to the timing of multiple projects.
    • Decreases of $1.7 million in equipment expense driven by reduced software expense and $1.4 million in supplies expense primarily due to decreased computer hardware purchases.
    • These decreases were partially offset by increases of $10.7 million in employee benefits expense driven by a seasonal increase of $9.3 million in payroll taxes, insurance, and 401(k) expense recognized in the first quarter, as well as an increase of $1.5 million in deferred compensation expense, all recorded in salaries and employee benefits. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above. Additionally, there was an increase of $1.7 million in bankcard processing expense.
  • The year-over-year increase in noninterest expense was driven by:
    • An increase of $3.0 million in processing fees due to the timing of multiple software projects.
    • Increases of $2.6 million in marketing and business development and $1.2 million in legal and consulting expense due to the timing of multiple projects.
    • Increases of $2.4 million in salaries and bonus expense and $1.3 million in payroll taxes, insurance, and 401(k) expense, both recorded in salaries and employee benefits, primarily driven by increased company performance in the first quarter of 2022.
    • An increase of $1.6 million in bankcard expense primarily due to higher processing expense and bankcard fraud losses.
    • Increases of $1.2 million in operational losses, and $0.9 million in derivative-related expense, both recorded in other expense.
    • These increases were partially offset by a decrease of $1.2 million in deferred compensation expense, recorded in salaries and employee benefits. The decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.

Income taxes

  • The company’s effective tax rate was 15.7% for the three months ended March 31, 2022, compared to 15.4% for the same period in 2021.

Balance sheet

  • Average total assets for the first quarter of 2022 were $39.2 billion compared to $38.1 billion for the linked quarter and $33.1 billion for the same period in 2021.

Summary of average loans and leases - QTD Average

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

 

Q4

 

 

Q1

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2022

 

 

2021

 

 

2021

 

 

LQ

 

 

PY

 

Commercial and industrial

 

$

7,409,623

 

 

$

6,994,935

 

 

$

7,139,101

 

 

$

414,688

 

 

$

270,522

 

Specialty lending

 

 

463,793

 

 

 

484,552

 

 

 

502,585

 

 

 

(20,759

)

 

 

(38,792

)

Commercial real estate

 

 

6,338,160

 

 

 

6,218,138

 

 

 

5,971,047

 

 

 

120,022

 

 

 

367,113

 

Consumer real estate

 

 

2,339,050

 

 

 

2,272,498

 

 

 

1,970,767

 

 

 

66,552

 

 

 

368,283

 

Consumer

 

 

135,942

 

 

 

107,841

 

 

 

117,095

 

 

 

28,101

 

 

 

18,847

 

Credit cards

 

 

399,857

 

 

 

414,267

 

 

 

362,051

 

 

 

(14,410

)

 

 

37,806

 

Leases and other

 

 

274,652

 

 

 

200,417

 

 

 

183,447

 

 

 

74,235

 

 

 

91,205

 

Total loans

 

$

17,361,077

 

 

$

16,692,648

 

 

$

16,246,093

 

 

$

668,429

 

 

$

1,114,984

 

  • Average loans for the first quarter of 2022 increased 4.0% on a linked-quarter basis and 6.9% compared to the first quarter of 2021. Excluding PPP balances, average loans increased 4.8% on a linked-quarter basis and increased 15.6% as compared to the first quarter of 2021.

Summary of average securities - QTD Average

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

 

Q4

 

 

Q1

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2022

 

 

2021

 

 

2021

 

 

LQ

 

 

PY

 

Securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

176,476

 

 

$

69,398

 

 

$

36,032

 

 

$

107,078

 

 

$

140,444

 

U.S. Agencies

 

 

125,017

 

 

 

93,619

 

 

 

95,494

 

 

 

31,398

 

 

 

29,523

 

Mortgage-backed

 

 

7,317,968

 

 

 

7,395,528

 

 

 

5,599,987

 

 

 

(77,560

)

 

 

1,717,981

 

State and political subdivisions

 

 

3,170,757

 

 

 

3,437,841

 

 

 

3,552,945

 

 

 

(267,084

)

 

 

(382,188

)

Corporates

 

 

337,526

 

 

 

236,743

 

 

 

83,271

 

 

 

100,783

 

 

 

254,255

 

Collateralized loan obligations

 

 

150,134

 

 

 

38,099

 

 

 

 

 

 

112,035

 

 

 

150,134

 

Total securities available for sale

 

$

11,277,878

 

 

$

11,271,228

 

 

$

9,367,729

 

 

$

6,650

 

 

$

1,910,149

 

Securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Agencies

 

$

133

 

 

$

 

 

$

 

 

$

133

 

 

$

133

 

Mortgage-backed

 

 

708,075

 

 

 

105,622

 

 

 

 

 

 

602,453

 

 

 

708,075

 

State and political subdivisions

 

 

1,185,609

 

 

 

1,089,587

 

 

 

1,023,418

 

 

 

96,022

 

 

 

162,191

 

Total securities held to maturity

 

$

1,893,817

 

 

$

1,195,209

 

 

$

1,023,418

 

 

$

698,608

 

 

$

870,399

 

Trading securities

 

 

20,836

 

 

 

29,426

 

 

 

17,540

 

 

 

(8,590

)

 

 

3,296

 

Other securities

 

 

329,611

 

 

 

299,829

 

 

 

308,297

 

 

 

29,782

 

 

 

21,314

 

Total securities

 

$

13,522,142

 

 

$

12,795,692

 

 

$

10,716,984

 

 

$

726,450

 

 

$

2,805,158

 

  • Average total securities increased 5.7% on a linked-quarter basis and 26.2% compared to the first quarter of 2021.
  • In March 2022, securities with an amortized cost of $3.0 billion and a fair value of $2.9 billion were transferred from the available-for-sale classification to the held-to-maturity classification in order to reduce volatility in the company’s equity as a result of higher interest rates.

Summary of average deposits - QTD Average

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

 

Q4

 

 

Q1

 

 

CQ vs.

 

 

CQ vs.

 

 

 

2022

 

 

2021

 

 

2021

 

 

LQ

 

 

PY

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

14,025,585

 

 

$

13,124,918

 

 

$

9,753,680

 

 

$

900,667

 

 

$

4,271,905

 

Interest-bearing demand and savings

 

 

17,852,721

 

 

 

17,809,817

 

 

 

16,302,880

 

 

 

42,904

 

 

 

1,549,841

 

Time deposits

 

 

701,973

 

 

 

701,836

 

 

 

769,464

 

 

 

137

 

 

 

(67,491

)

Total deposits

 

$

32,580,279

 

 

$

31,636,571

 

 

$

26,826,024

 

 

$

943,708

 

 

$

5,754,255

 

Noninterest bearing deposits as % of total

 

 

43.05

%

 

 

41.49

%

 

 

36.36

%

 

 

 

 

 

 

 

 

  • Average deposits increased 3.0% on a linked-quarter basis and 21.5% compared to the first quarter of 2021.
  • Average noninterest-bearing demand deposits increased 6.9% on a linked-quarter basis to $14.0 billion.

Capital

Capital information

 

UMB Financial Corporation

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

2022

 

 

December 31,

2021

 

 

March 31,

2021

 

Total equity

 

$

2,748,405

 

 

$

3,145,424

 

 

$

2,958,239

 

Book value per common share

 

 

56.78

 

 

 

64.95

 

 

 

61.24

 

Tangible book value per common share

 

 

52.69

 

 

 

61.05

 

 

 

57.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory capital:

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital

 

$

2,938,100

 

 

$

2,885,576

 

 

$

2,660,102

 

Tier 1 capital

 

 

2,938,100

 

 

 

2,885,576

 

 

 

2,660,102

 

Total capital

 

 

3,369,866

 

 

 

3,324,284

 

 

 

3,102,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio

 

 

11.81

%

 

 

12.05

%

 

 

12.25

%

Tier 1 risk-based capital ratio

 

 

11.81

 

 

 

12.05

 

 

 

12.25

 

Total risk-based capital ratio

 

 

13.55

 

 

 

13.88

 

 

 

14.28

 

Tier 1 leverage ratio

 

 

7.53

 

 

 

7.61

 

 

 

8.08

 

  • At March 31, 2022, 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

 

 

2022

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

Net charge-offs - Total loans

 

$

8,378

 

 

$

8,061

 

 

$

3,127

 

 

$

28,374

 

 

$

5,310

 

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

 

 

0.20

%

 

 

0.19

%

 

 

0.07

%

 

 

0.68

%

 

 

0.13

%

Loans over 90 days past due

 

$

3,600

 

 

$

2,633

 

 

$

2,319

 

 

$

1,265

 

 

$

1,773

 

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

 

 

0.02

%

 

 

0.02

%

 

 

0.01

%

 

 

0.01

%

 

 

0.01

%

Nonaccrual and restructured loans

 

$

110,356

 

 

$

92,300

 

 

$

96,536

 

 

$

58,219

 

 

$

76,706

 

Nonaccrual and restructured loans as a % of total loans

 

 

0.62

%

 

 

0.54

%

 

 

0.59

%

 

 

0.34

%

 

 

0.46

%

Provision for credit losses

 

$

(6,500

)

 

$

8,500

 

 

$

(5,000

)

 

$

24,000

 

 

$

(7,500

)

  • Provision for credit losses for the first quarter decreased $15.0 million from the linked quarter and increased $1.0 million from the first quarter of 2021. Provision expense in the first quarter of 2022 represented a release of the Allowance for Credit Losses (ACL) based on positive macro-economic data and portfolio credit metrics.
  • Net charge-offs for the first quarter totaled $8.4 million, or 0.20%, of average loans, compared to $8.1 million, or 0.19%, of average loans in the linked quarter, and $5.3 million, or 0.13%, of average loans for the first quarter of 2021.

Dividend Declaration and Share Repurchase Authorization

At the company’s quarterly board meeting, the Board of Directors declared a $0.37 per share quarterly cash dividend, payable on July 1, 2022, to shareholders of record at the close of business on June 10, 2022.

As in prior years, the Board also approved the repurchase of up to 2,000,000 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 2023 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 first quarter 2022 earnings results on Wednesday, April 27, 2022, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 844-200-6205 or (international) 929-526-1599 and requesting to join the UMB Financial call with access code 758098. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 1Q 2022 Conference Call

A replay of the conference call may be heard through May 11, 2022 by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 176268. The call replay may also be accessed at investorrelations.umb.com.

Non-GAAP Financial Information

In this release, we 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, pre-tax, pre-provision income, pre-tax, pre-provision earnings per share – diluted (PTPP EPS), pre-tax, pre-provision income on a fully tax equivalent basis (PTPP-FTE), pre-tax, pre-provision FTE earnings per share – diluted (PTPP-FTE EPS), tangible shareholders’ equity, and tangible book value per share, 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, PTPP, PTPP EPS, PTPP-FTE, PTPP-FTE EPS, tangible shareholders’ equity, and tangible book value per share – 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-, severance-, and COVID-19 related items that management does not believe reflect the company’s fundamental operating performance. COVID-19 related expense includes hazard pay for branch associates, computer hardware expense to support associates working remotely, and additional equipment, cleaning, and janitorial supplies to protect the well-being of our associates and customers while on the company’s premises.

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, COVID-19 related 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).

PTPP income for the relevant period is defined as GAAP net income, adjusted to reflect the impact of excluding income tax and provision expenses.

PTPP-FTE for the relevant period is defined as GAAP net interest income on a fully tax equivalent basis plus noninterest income, less noninterest 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.

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, 2021, 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 other challenges and uncertainties related to the COVID-19 pandemic, such as the impacts to the U.S. and global economies; 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, or follow us on Twitter at @UMBBank.

Consolidated Balance Sheets

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

 

 

Loans

 

$

17,731,700

 

 

$

16,497,385

 

Allowance for credit losses on loans

 

 

(179,288

)

 

 

(202,814

)

Net loans

 

 

17,552,412

 

 

 

16,294,571

 

Loans held for sale

 

 

384

 

 

 

10,275

 

Securities:

 

 

 

 

 

 

 

 

Available for sale

 

 

8,550,093

 

 

 

9,753,392

 

Held to maturity, net of allowance for credit losses

 

 

4,600,187

 

 

 

1,039,711

 

Trading securities

 

 

17,059

 

 

 

29,099

 

Other securities

 

 

332,123

 

 

 

298,209

 

Total securities

 

 

13,499,462

 

 

 

11,120,411

 

Federal funds sold and resell agreements

 

 

1,319,809

 

 

 

1,629,813

 

Interest-bearing due from banks

 

 

6,355,941

 

 

 

3,860,763

 

Cash and due from banks

 

 

357,772

 

 

 

387,230

 

Premises and equipment, net

 

 

264,519

 

 

 

286,068

 

Accrued income

 

 

127,139

 

 

 

131,533

 

Goodwill

 

 

182,225

 

 

 

174,518

 

Other intangibles, net

 

 

15,690

 

 

 

17,793

 

Other assets

 

 

930,389

 

 

 

756,414

 

Total assets

 

$

40,605,742

 

 

$

34,669,389

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

15,946,738

 

 

$

11,604,415

 

Interest-bearing demand and savings

 

 

17,828,794

 

 

 

16,011,812

 

Time deposits under $250,000

 

 

399,467

 

 

 

457,290

 

Time deposits of $250,000 or more

 

 

187,566

 

 

 

207,275

 

Total deposits

 

 

34,362,565

 

 

 

28,280,792

 

Federal funds purchased and repurchase agreements

 

 

2,840,535

 

 

 

2,759,818

 

Long-term debt

 

 

272,036

 

 

 

270,074

 

Accrued expenses and taxes

 

 

178,130

 

 

 

239,001

 

Other liabilities

 

 

204,071

 

 

 

161,465

 

Total liabilities

 

 

37,857,337

 

 

 

31,711,150

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Common stock

 

 

55,057

 

 

 

55,057

 

Capital surplus

 

 

1,109,585

 

 

 

1,093,667

 

Retained earnings

 

 

2,265,129

 

 

 

1,968,318

 

Accumulated other comprehensive (loss) income, net

 

 

(343,128

)

 

 

169,197

 

Treasury stock

 

 

(338,238

)

 

 

(328,000

)

Total shareholders' equity

 

 

2,748,405

 

 

 

2,958,239

 

Total liabilities and shareholders' equity

 

$

40,605,742

 

 

$

34,669,389

 

Consolidated Statements of Income

 

UMB Financial Corporation

 

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

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

INTEREST INCOME

 

 

 

 

 

 

 

 

Loans

 

$

149,470

 

 

$

150,170

 

Securities:

 

 

 

 

 

 

 

 

Taxable interest

 

 

43,382

 

 

 

27,162

 

Tax-exempt interest

 

 

23,855

 

 

 

24,964

 

Total securities income

 

 

67,237

 

 

 

52,126

 

Federal funds and resell agreements

 

 

2,450

 

 

 

2,821

 

Interest-bearing due from banks

 

 

2,457

 

 

 

703

 

Trading securities

 

 

185

 

 

 

159

 

Total interest income

 

 

221,799

 

 

 

205,979

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

Deposits

 

 

6,173

 

 

 

6,798

 

Federal funds and repurchase agreements

 

 

2,148

 

 

 

1,886

 

Other

 

 

3,123

 

 

 

3,180

 

Total interest expense

 

 

11,444

 

 

 

11,864

 

Net interest income

 

 

210,355

 

 

 

194,115

 

Provision for credit losses

 

 

(6,500

)

 

 

(7,500

)

Net interest income after provision for credit losses

 

 

216,855

 

 

 

201,615

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

Trust and securities processing

 

 

59,528

 

 

 

54,834

 

Trading and investment banking

 

 

5,440

 

 

 

9,356

 

Service charges on deposit accounts

 

 

24,642

 

 

 

21,976

 

Insurance fees and commissions

 

 

259

 

 

 

420

 

Brokerage fees

 

 

3,456

 

 

 

3,334

 

Bankcard fees

 

 

16,635

 

 

 

14,673

 

Investment securities losses, net

 

 

(522

)

 

 

(8,336

)

Other

 

 

14,240

 

 

 

12,640

 

Total noninterest income

 

 

123,678

 

 

 

108,897

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

130,634

 

 

 

127,681

 

Occupancy, net

 

 

12,232

 

 

 

11,935

 

Equipment

 

 

18,164

 

 

 

19,615

 

Supplies and services

 

 

3,262

 

 

 

3,492

 

Marketing and business development

 

 

4,932

 

 

 

2,345

 

Processing fees

 

 

18,443

 

 

 

15,417

 

Legal and consulting

 

 

6,911

 

 

 

5,755

 

Bankcard

 

 

6,567

 

 

 

4,956

 

Amortization of other intangible assets

 

 

1,071

 

 

 

1,380

 

Regulatory fees

 

 

3,482

 

 

 

2,546

 

Other

 

 

9,080

 

 

 

5,824

 

Total noninterest expense

 

 

214,778

 

 

 

200,946

 

Income before income taxes

 

 

125,755

 

 

 

109,566

 

Income tax expense

 

 

19,792

 

 

 

16,923

 

NET INCOME

 

$

105,963

 

 

$

92,643

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

Net income – basic

 

$

2.19

 

 

$

1.93

 

Net income – diluted

 

 

2.17

 

 

 

1.91

 

Dividends

 

 

0.37

 

 

 

0.32

 

Weighted average shares outstanding – basic

 

 

48,406,840

 

 

 

48,096,643

 

Weighted average shares outstanding – diluted

 

 

48,832,177

 

 

 

48,520,752

 

Consolidated Statements of Comprehensive Income

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

Net income

 

$

105,963

 

 

$

92,643

 

Other comprehensive loss, before tax:

 

 

 

 

 

 

 

 

Unrealized gains and losses on debt securities:

 

 

 

 

 

 

 

 

Change in unrealized holding gains and losses, net

 

 

(622,910

)

 

 

(199,038

)

Less: Reclassification adjustment for gains included in net income

 

 

 

 

 

(2,720

)

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

 

 

582

 

 

 

 

Change in unrealized gains and losses on debt securities

 

 

(622,328

)

 

 

(201,758

)

Unrealized gains and losses on derivative hedges:

 

 

 

 

 

 

 

 

Change in unrealized gains and losses on derivative hedges, net

 

 

4,680

 

 

 

6,503

 

Less: Reclassification adjustment for gains included in net income

 

 

(851

)

 

 

(842

)

Change in unrealized gains and losses on derivative hedges

 

 

3,829

 

 

 

5,661

 

Other comprehensive loss, before tax

 

 

(618,499

)

 

 

(196,097

)

Income tax benefit

 

 

149,057

 

 

 

46,954

 

Other comprehensive loss

 

 

(469,442

)

 

 

(149,143

)

Comprehensive loss

 

$

(363,479

)

 

$

(56,500

)

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, 2021

 

$

55,057

 

 

$

1,090,450

 

 

$

1,891,246

 

 

$

318,340

 

 

$

(338,145

)

 

$

3,016,948

 

Total comprehensive income (loss)

 

 

 

 

 

 

 

 

92,643

 

 

 

(149,143

)

 

 

 

 

 

(56,500

)

Dividends ($0.32 per share)

 

 

 

 

 

 

 

 

(15,571

)

 

 

 

 

 

 

 

 

(15,571

)

Purchase of treasury stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,027

)

 

 

(4,027

)

Issuances of equity awards, net of forfeitures

 

 

 

 

 

(4,043

)

 

 

 

 

 

 

 

 

4,738

 

 

 

695

 

Recognition of equity-based compensation

 

 

 

 

 

4,457

 

 

 

 

 

 

 

 

 

 

 

 

4,457

 

Sale of treasury stock

 

 

 

 

 

65

 

 

 

 

 

 

 

 

 

86

 

 

 

151

 

Exercise of stock options

 

 

 

 

 

2,738

 

 

 

 

 

 

 

 

 

9,348

 

 

 

12,086

 

Balance - March 31, 2021

 

$

55,057

 

 

$

1,093,667

 

 

$

1,968,318

 

 

$

169,197

 

 

$

(328,000

)

 

$

2,958,239

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance - January 1, 2022

 

$

55,057

 

 

$

1,110,520

 

 

$

2,176,998

 

 

$

126,314

 

 

$

(323,465

)

 

$

3,145,424

 

Total comprehensive income (loss)

 

 

 

 

 

 

 

 

105,963

 

 

 

(469,442

)

 

 

 

 

 

(363,479

)

Dividends ($0.37 per share)

 

 

 

 

 

 

 

 

(17,832

)

 

 

 

 

 

 

 

 

(17,832

)

Purchase of treasury stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22,487

)

 

 

(22,487

)

Issuances of equity awards, net of forfeitures

 

 

 

 

 

(6,630

)

 

 

 

 

 

 

 

 

7,309

 

 

 

679

 

Recognition of equity-based compensation

 

 

 

 

 

5,485

 

 

 

 

 

 

 

 

 

 

 

 

5,485

 

Sale of treasury stock

 

 

 

 

 

84

 

 

 

 

 

 

 

 

 

54

 

 

 

138

 

Exercise of stock options

 

 

 

 

 

126

 

 

 

 

 

 

 

 

 

351

 

 

 

477

 

Balance - March 31, 2022

 

$

55,057

 

 

$

1,109,585

 

 

$

2,265,129

 

 

$

(343,128

)

 

$

(338,238

)

 

$

2,748,405

 

Average Balances / Yields and Rates

 

UMB Financial Corporation

 

(tax - equivalent basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

 

 

Average

 

 

Average

 

 

Average

 

 

Average

 

 

 

Balance

 

 

Yield/Rate

 

 

Balance

 

 

Yield/Rate

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned interest

 

$

17,361,077

 

 

 

3.49

%

 

$

16,246,093

 

 

 

3.75

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

9,461,567

 

 

 

1.86

 

 

 

6,398,188

 

 

 

1.72

 

Tax-exempt

 

 

4,039,739

 

 

 

3.03

 

 

 

4,301,256

 

 

 

2.98

 

Total securities

 

 

13,501,306

 

 

 

2.21

 

 

 

10,699,444

 

 

 

2.23

 

Federal funds and resell agreements

 

 

1,265,776

 

 

 

0.78

 

 

 

1,643,894

 

 

 

0.70

 

Interest bearing due from banks

 

 

5,320,360

 

 

 

0.19

 

 

 

2,823,771

 

 

 

0.10

 

Trading securities

 

 

20,836

 

 

 

4.38

 

 

 

17,540

 

 

 

4.30

 

Total earning assets

 

 

37,469,355

 

 

 

2.47

 

 

 

31,430,742

 

 

 

2.74

 

Allowance for credit losses

 

 

(198,217

)

 

 

 

 

 

 

(219,672

)

 

 

 

 

Other assets

 

 

1,882,376

 

 

 

 

 

 

 

1,841,224

 

 

 

 

 

Total assets

 

$

39,153,514

 

 

 

 

 

 

$

33,052,294

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

18,554,694

 

 

 

0.13

%

 

$

17,072,344

 

 

 

0.16

%

Federal funds and repurchase agreements

 

 

2,973,785

 

 

 

0.29

 

 

 

2,519,373

 

 

 

0.30

 

Borrowed funds

 

 

271,731

 

 

 

4.66

 

 

 

269,576

 

 

 

4.78

 

Total interest-bearing liabilities

 

 

21,800,210

 

 

 

0.21

 

 

 

19,861,293

 

 

 

0.24

 

Noninterest-bearing demand deposits

 

 

14,025,585

 

 

 

 

 

 

 

9,753,680

 

 

 

 

 

Other liabilities

 

 

394,714

 

 

 

 

 

 

 

445,777

 

 

 

 

 

Shareholders' equity

 

 

2,933,005

 

 

 

 

 

 

 

2,991,544

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

39,153,514

 

 

 

 

 

 

$

33,052,294

 

 

 

 

 

Net interest spread

 

 

 

 

 

 

2.26

%

 

 

 

 

 

 

2.50

%

Net interest margin

 

 

 

 

 

 

2.35

 

 

 

 

 

 

 

2.59

 

Business Segment Information

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2022

 

 

 

Commercial Banking

 

 

Institutional Banking

 

 

Personal Banking

 

 

Total

 

Net interest income

 

$

145,002

 

 

$

26,253

 

 

$

39,100

 

 

$

210,355

 

Provision for credit losses

 

 

(7,040

)

 

 

151

 

 

 

389

 

 

 

(6,500

)

Noninterest income

 

 

26,707

 

 

 

73,262

 

 

 

23,709

 

 

 

123,678

 

Noninterest expense

 

 

79,596

 

 

 

75,592

 

 

 

59,590

 

 

 

214,778

 

Income before taxes

 

 

99,153

 

 

 

23,772

 

 

 

2,830

 

 

 

125,755

 

Income tax expense

 

 

15,606

 

 

 

3,741

 

 

 

445

 

 

 

19,792

 

Net income

 

$

83,547

 

 

$

20,031

 

 

$

2,385

 

 

$

105,963

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2021

 

 

 

Commercial Banking

 

 

Institutional Banking

 

 

Personal Banking

 

 

Total

 

Net interest income

 

$

136,410

 

 

$

22,138

 

 

$

35,567

 

 

$

194,115

 

Provision for credit losses

 

 

(8,178

)

 

 

220

 

 

 

458

 

 

 

(7,500

)

Noninterest income

 

 

8,176

 

 

 

68,421

 

 

 

32,300

 

 

 

108,897

 

Noninterest expense

 

 

69,725

 

 

 

71,282

 

 

 

59,939

 

 

 

200,946

 

Income before taxes

 

 

83,039

 

 

 

19,057

 

 

 

7,470

 

 

 

109,566

 

Income tax expense

 

 

12,826

 

 

 

2,943

 

 

 

1,154

 

 

 

16,923

 

Net income

 

$

70,213

 

 

$

16,114

 

 

$

6,316

 

 

$

92,643

 

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 March 31, 2022.

Non-GAAP Financial Measures

Net operating income Non-GAAP reconciliations:

 

UMB Financial Corporation

 

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Net income (GAAP)

 

$

105,963

 

 

$

92,643

 

Adjustments:

 

 

 

 

 

 

 

 

Acquisition expense

 

 

 

 

 

 

Severance expense

 

 

145

 

 

 

21

 

COVID-19 related expense

 

 

 

 

 

155

 

Tax-impact of adjustments (i)

 

 

(35

)

 

 

(39

)

Total Non-GAAP adjustments (net of tax)

 

 

110

 

 

 

137

 

Net operating income (Non-GAAP)

 

$

106,073

 

 

$

92,780

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted (GAAP)

 

$

2.17

 

 

$

1.91

 

Acquisition expense

 

 

 

 

 

 

Severance expense

 

 

 

 

 

 

COVID-19 related expense

 

 

 

 

 

 

Tax-impact of adjustments (i)

 

 

 

 

 

 

Operating earnings per share - diluted (Non-GAAP)

 

$

2.17

 

 

$

1.91

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.10

%

 

 

1.14

%

Return on average equity

 

 

14.65

 

 

 

12.56

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

1.10

%

 

 

1.14

%

Operating return on average equity

 

 

14.67

 

 

 

12.58

 

(i) Calculated using the company’s marginal tax rate of 24.0% in 2022 and 22.2% in 2021.

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

 

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Noninterest expense

 

$

214,778

 

 

$

200,946

 

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

 

 

 

 

 

 

 

 

Acquisition expense

 

 

 

 

 

 

Severance expense

 

 

145

 

 

 

21

 

COVID-19 related expense

 

 

 

 

 

155

 

Total Non-GAAP adjustments (pre-tax)

 

 

145

 

 

 

176

 

Operating noninterest expense (Non-GAAP)

 

$

214,633

 

 

$

200,770

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

$

214,778

 

 

$

200,946

 

Less: Amortization of other intangibles

 

 

1,071

 

 

 

1,380

 

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

 

$

213,707

 

 

$

199,566

 

 

 

 

 

 

 

 

 

 

Operating noninterest expense

 

$

214,633

 

 

$

200,770

 

Less: Amortization of other intangibles

 

 

1,071

 

 

 

1,380

 

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

 

$

213,562

 

 

$

199,390

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

210,355

 

 

$

194,115

 

Noninterest income

 

 

123,678

 

 

 

108,897

 

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

 

 

 

 

 

2,720

 

Total Non-GAAP Revenue (denominator A)

 

$

334,033

 

 

$

300,292

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (numerator A/denominator A)

 

 

63.98

%

 

 

66.46

%

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

 

 

63.93

 

 

 

66.40

 

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

UMB Financial Corporation

 

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Net income before taxes (GAAP)

 

$

125,755

 

 

$

109,566

 

Adjustments:

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

(6,500

)

 

 

(7,500

)

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

 

$

119,255

 

 

$

102,066

 

 

 

 

 

 

 

 

 

 

Pre-tax earnings per share - diluted (GAAP)

 

$

2.58

 

 

$

2.26

 

Provision for credit losses

 

 

(0.14

)

 

 

(0.16

)

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

 

$

2.44

 

 

$

2.10

 

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

 

UMB Financial Corporation

 

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Net interest income

 

$

210,355

 

 

$

194,115

 

Adjustments to arrive at net interest income - FTE:

 

 

 

 

 

 

 

 

Tax equivalent interest

 

 

6,399

 

 

 

6,678

 

Net interest income - FTE

 

$

216,754

 

 

$

200,793

 

Noninterest income

 

 

123,678

 

 

 

108,897

 

Less: Noninterest expense

 

 

214,778

 

 

 

200,946

 

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

 

$

125,654

 

 

$

108,744

 

 

 

 

 

 

 

 

 

 

Net interest income earnings per share - diluted

 

$

4.31

 

 

$

4.00

 

Tax equivalent interest

 

 

0.13

 

 

 

0.14

 

Net interest income - FTE

 

 

4.44

 

 

 

4.14

 

Noninterest income

 

 

2.53

 

 

 

2.24

 

Less: Noninterest expense

 

 

4.40

 

 

 

4.14

 

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

 

$

2.57

 

 

$

2.24

 

Tangible book value non-GAAP reconciliations:

UMB Financial Corporation

 

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

 

 

 

 

 

 

 

 

 

 

As of March 31,

 

 

 

2022

 

 

2021

 

Total shareholders' equity (GAAP)

 

$

2,748,405

 

 

$

2,958,239

 

Less: Intangible assets

 

 

 

 

 

 

 

 

Goodwill

 

 

182,225

 

 

 

174,518

 

Other intangibles, net

 

 

15,690

 

 

 

17,793

 

Total intangibles, net

 

 

197,915

 

 

 

192,311

 

Total tangible shareholders' equity (Non-GAAP)

 

$

2,550,490

 

 

$

2,765,928

 

 

 

 

 

 

 

 

 

 

Total shares outstanding

 

 

48,403,262

 

 

 

48,302,634

 

 

 

 

 

 

 

 

 

 

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

 

$

56.78

 

 

$

61.24

 

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

 

 

52.69

 

 

 

57.26

 

 

Contacts

Media Contact: Stephanie Hague: 816.860.5088

Investor Relations Contact: Kay Gregory: 816.860.7106

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