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UMB Financial Corporation Reports Fourth Quarter Net Income of $100.2 Million and Record Full-Year Earnings of $431.7 Million

Fourth Quarter 2022 Financial Highlights

  • GAAP net income of $100.2 million, or $2.06 per diluted share.
  • Average loan balances increased $3.6 billion, or 21.6%, compared to the fourth quarter of 2021.
  • Average loans increased 21.0% on a linked-quarter, annualized basis.
  • Average deposits grew 21.2% on a linked-quarter, annualized basis.
  • Net interest income increased 5.0% from the linked quarter.
  • Noninterest income increased 5.7% as compared to the fourth quarter of 2021, equal to 33.9% of total revenue.
  • Net interest margin expanded seven basis points from the linked quarter.
  • Credit quality remained strong, with net charge-offs of just 0.04% of average loans.

UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the fourth quarter of 2022 of $100.2 million, or $2.06 per diluted share, compared to $88.0 million, or $1.81 per diluted share, in the third quarter of 2022 (linked quarter) and $78.5 million, or $1.61 per diluted share, in the fourth quarter of 2021.

Net operating income, a non-GAAP financial measure reconciled later in this release to net income, the nearest comparable GAAP measure, was $101.1 million, or $2.07 per diluted share, for the fourth quarter of 2022, compared to $88.3 million, or $1.82 per diluted share, for the linked quarter and $78.9 million, or $1.62 per diluted share, for the fourth quarter of 2021. Operating pre-tax, pre-provision income (Operating PTPP), a non-GAAP measure reconciled later in this release to the components of net income before taxes, the nearest comparable GAAP measure, was $134.1 million, or $2.75 per diluted share, for the fourth quarter of 2022, compared to $131.2 million, or $2.70 per diluted share, for the linked quarter, and $107.4 million, or $2.20 per diluted share, for the fourth quarter of 2021. These operating PTPP results represent increases of 2.2% on a linked-quarter basis and 24.8%, compared to the fourth quarter of 2021.

“As we enter the 110th year of business, our strong balance sheet and differentiated business mix position us well to deliver solid returns across all economic cycles, driven by our basic tenet of providing the Unparalleled Customer Experience to all our key constituents,” said Mariner Kemper, chairman, president and chief executive officer. “Our fourth quarter results capped off another year of record earnings, facilitated by strong balance sheet growth, stable credit metrics and contributions from our differentiated fee income sources. Revenue increased 14.4% over the prior year to $1.5 billion, driven by a 13.2% increase in average loans, 8.3% increase in average deposits, and an 18.6% percent increase in noninterest income. In 2022, we generated actual loan growth of nearly $4 billion, or more than three times the $1.1 billion we added in the prior calendar year. Our asset quality metrics remained solid as reflected in net loan charge-off rate of 21 basis points for the year. Nonperforming assets comprised a modest five basis points of total assets. We’ve long focused on operating leverage, and for the full year, we generated positive leverage of 6.7%.”

Fourth Quarter 2022 earnings discussion

Summary of quarterly financial results

 

UMB Financial Corporation

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

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q3

 

Q4

 

 

2022

 

2022

 

2021

Net income (GAAP)

 

$

100,173

 

 

$

87,990

 

 

$

78,496

 

Earnings per share (diluted)

 

 

2.06

 

 

 

1.81

 

 

 

1.61

 

 

 

 

 

 

 

 

 

 

 

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

 

 

134,054

 

 

 

131,166

 

 

 

107,415

 

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

 

 

2.75

 

 

 

2.70

 

 

 

2.20

 

 

 

 

 

 

 

 

 

 

 

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

 

 

140,717

 

 

 

137,620

 

 

 

113,898

 

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

 

 

2.89

 

 

 

2.83

 

 

 

2.33

 

 

 

 

 

 

 

 

 

 

 

Net operating income (Non-GAAP)

 

 

101,092

 

 

 

88,259

 

 

 

78,921

 

Operating earnings per share (diluted)

 

 

2.07

 

 

 

1.82

 

 

 

1.62

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.06

%

 

 

0.96

%

 

 

0.82

%

Return on average equity

 

 

15.16

 

 

 

12.90

 

 

 

9.91

 

Efficiency ratio

 

 

63.72

 

 

 

63.58

 

 

 

67.78

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

1.07

%

 

 

0.96

%

 

 

0.82

%

Operating return on average equity

 

 

15.30

 

 

 

12.94

 

 

 

9.97

 

Operating efficiency ratio

 

 

63.39

 

 

 

63.49

 

 

 

67.61

 

Summary of revenue

 

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q3

 

Q4

 

CQ vs.

 

CQ vs.

 

 

2022

 

2022

 

2021

 

LQ

 

PY

Net interest income

 

$

245,166

 

 

$

233,485

 

 

$

210,570

 

 

$

11,681

 

 

$

34,596

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust and securities processing

 

 

59,207

 

 

 

59,586

 

 

 

58,515

 

 

 

(379

)

 

 

692

 

Trading and investment banking

 

 

5,251

 

 

 

5,387

 

 

 

6,977

 

 

 

(136

)

 

 

(1,726

)

Service charges on deposit accounts

 

 

19,758

 

 

 

19,932

 

 

 

21,607

 

 

 

(174

)

 

 

(1,849

)

Insurance fees and commissions

 

 

459

 

 

 

375

 

 

 

359

 

 

 

84

 

 

 

100

 

Brokerage fees

 

 

13,332

 

 

 

13,840

 

 

 

3,346

 

 

 

(508

)

 

 

9,986

 

Bankcard fees

 

 

19,597

 

 

 

19,379

 

 

 

16,642

 

 

 

218

 

 

 

2,955

 

Investment securities (losses) gains, net

 

 

(409

)

 

 

(1,345

)

 

 

1,448

 

 

 

936

 

 

 

(1,857

)

Other

 

 

8,302

 

 

 

11,569

 

 

 

9,888

 

 

 

(3,267

)

 

 

(1,586

)

Total noninterest income

 

$

125,497

 

 

$

128,723

 

 

$

118,782

 

 

$

(3,226

)

 

$

6,715

 

Total revenue

 

$

370,663

 

 

$

362,208

 

 

$

329,352

 

 

$

8,455

 

 

$

41,311

 

Net interest income (FTE)

 

$

251,829

 

 

$

239,939

 

 

$

217,053

 

 

 

 

 

 

 

Net interest margin (FTE)

 

 

2.83

%

 

 

2.76

%

 

 

2.37

%

 

 

 

 

 

 

Total noninterest income as a % of total revenue

 

 

33.9

 

 

 

35.5

 

 

 

36.1

 

 

 

 

 

 

 

Net interest income

  • Fourth quarter 2022 net interest income totaled $245.2 million, an increase of $11.7 million, or 5.0% from the linked quarter, driven by an increase of $1.0 billion in average loans and the impact from higher short-term and long-term interest rates.
  • Average earning assets increased $831.6 million, or 2.4% from the linked quarter, largely driven by the increase in average loans noted above, an increase of $502.8 million in interest-bearing due from banks, partially offset by a decrease of $488.8 million in average securities.
  • Average interest-bearing liabilities increased $987.5 million, or 4.8% from the linked quarter, primarily driven by an increase of $1.5 billion in interest-bearing deposits, partially offset by a decrease of $631.0 million in federal funds purchased and repurchase agreements.
  • Net interest margin for the fourth quarter was 2.83%, an increase of seven basis points from the linked quarter, driven by benefits of higher short-term interest rates, loan fees, favorable earning asset mix changes, and the benefit of free funds, partially offset by increased cost of interest-bearing liabilities. Average loan yields increased 89 basis points while earning asset yields increased 67 basis points from the linked quarter. The cost of interest-bearing liabilities increased 94 basis points to 2.22%.
  • On a year-over-year basis, net interest income increased $34.6 million, or 16.4%, driven by a $3.6 billion, or 21.6% increase in average loans, coupled with a $402.7 million, or 3.1% increase in average securities. These increases were driven by organic loan growth and a reduction in excess liquidity.
  • Average earning assets decreased $1.0 billion, or 2.8%, largely driven by a decrease of $4.6 billion in interest-bearing due from banks, partially offset by the increases in average loans and securities noted above.
  • Average deposits increased 5.3% on a linked-quarter basis and decreased 0.8% compared to the fourth quarter of 2021. Average noninterest-bearing demand deposit balances increased 0.5% on a linked-quarter basis and decreased 5.1% compared to the fourth quarter of 2021. Demand deposit balances comprised 39.7% of total deposits, compared to 41.6% in the linked quarter and 41.5% in the fourth quarter of 2021.

Noninterest income

  • Fourth quarter 2022 noninterest income decreased $3.2 million, or 2.5%, on a linked-quarter basis, largely due to:
    • Decreases of $2.3 million in company-owned life insurance income and $0.9 million in derivative 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.
    • A decrease of $0.5 million in brokerage income, largely driven by a decrease in money market income.
    • These decreases were partially offset by an increase of $0.9 million in investment securities gains.
  • Compared to the prior year, noninterest income in the fourth quarter of 2022 increased $6.7 million, or 5.7%, primarily driven by:
    • An increase of $10.0 million in brokerage income, largely driven by increases in 12b-1 fees and money market income.
    • An increase of $3.0 million in bankcard income, driven by increased interchange income and reduced rewards expense.
    • An increase of $1.0 million in company-owned life insurance income, recorded in other income. The increase in company-owned life insurance is offset by a proportionate increase in deferred compensation expense as noted below.
    • These increases were partially offset by the following decreases:
      • A decrease of $1.9 million in investment securities gains, largely driven by $2.7 million in gains on sales of available-for-sale securities in the prior year, offset by an increase of $0.9 million in the valuation of the company’s equity investments.
      • A decrease of $1.8 million in service charges on deposits primarily due to reduced corporate service charge income and decreased healthcare services income related to customer transfer and conversion fees.
      • Decreases of $2.0 million in derivative income, recorded in other income, and $1.7 million in trading and investment banking due to decreased trading volume.

Noninterest expense

Summary of noninterest expense

 

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q3

 

Q4

 

CQ vs.

 

CQ vs.

 

 

2022

 

2022

 

2021

 

LQ

 

PY

Salaries and employee benefits

 

$

135,940

 

 

$

136,467

 

 

$

131,360

 

 

$

(527

)

 

$

4,580

 

Occupancy, net

 

 

12,409

 

 

 

12,231

 

 

 

10,907

 

 

 

178

 

 

 

1,502

 

Equipment

 

 

18,969

 

 

 

18,811

 

 

 

19,886

 

 

 

158

 

 

 

(917

)

Supplies and services

 

 

3,697

 

 

 

3,139

 

 

 

4,646

 

 

 

558

 

 

 

(949

)

Marketing and business development

 

 

8,788

 

 

 

6,671

 

 

 

6,528

 

 

 

2,117

 

 

 

2,260

 

Processing fees

 

 

23,545

 

 

 

20,901

 

 

 

19,083

 

 

 

2,644

 

 

 

4,462

 

Legal and consulting

 

 

10,664

 

 

 

10,255

 

 

 

10,858

 

 

 

409

 

 

 

(194

)

Bankcard

 

 

7,369

 

 

 

6,551

 

 

 

4,865

 

 

 

818

 

 

 

2,504

 

Amortization of other intangible assets

 

 

1,649

 

 

 

1,092

 

 

 

1,110

 

 

 

557

 

 

 

539

 

Regulatory fees

 

 

4,232

 

 

 

4,200

 

 

 

3,393

 

 

 

32

 

 

 

839

 

Other

 

 

10,556

 

 

 

11,078

 

 

 

9,847

 

 

 

(522

)

 

 

709

 

Total noninterest expense

 

$

237,818

 

 

$

231,396

 

 

$

222,483

 

 

$

6,422

 

 

$

15,335

 

  • Noninterest expense for the fourth quarter of 2022 was $237.8 million, an increase of $6.4 million, or 2.8%, from the linked quarter and an increase of $15.3 million, or 6.9%, from the fourth quarter of 2021.
  • The linked-quarter increase in noninterest expense was driven by:
    • Increases of $2.6 million in processing fees and $2.1 million in marketing and business development expense due to the ongoing modernization of the company’s core systems and timing of multiple projects, respectively. The increase in marketing and business development expense was also partially driven by an increase in advertising for various projects and an increase in travel and entertainment expense.
    • Increases of $0.8 million, $0.6 million, and $0.6 million in bankcard expense, supplies expense, and intangible amortization expense, respectively. The increase in amortization expense is related to the acquisition of the healthcare savings account business from Old National Bank, completed in the fourth quarter of 2022.
    • These increases were partially offset by a decrease of $0.5 million in salaries and employee benefits expense. This decrease was driven by a decrease of $2.7 million in employee benefits expense, partially offset by an increase of $2.2 million in salaries and bonus expense. The decrease in employee benefits expense was driven by a $1.5 million decrease in deferred compensation expense and a $1.0 million decrease in payroll taxes, insurance, and 401(k) expense as employee maximums were reached during the quarter. This decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.
  • The year-over-year increase in noninterest expense was driven by:
    • An increase of $4.6 million in salaries and employee benefits expense, driven primarily by increases of $7.7 million in salaries and wage expense and $2.3 million in employee benefits expense, primarily due to an increase of $1.1 million in payroll taxes, insurance, and 401(k) expense, and an increase of $0.7 million in deferred compensation expense. These increases were partially offset by a decrease of $5.4 million in bonus and commission expense. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above.
    • Increases of $4.5 million and $2.3 million in processing fees and marketing and business development expense, respectively, due to the ongoing modernization of the company’s core systems and timing of multiple projects, respectively. The increase in marketing and business development expense was also partially driven by an increase in advertising for various projects and an increase in travel and entertainment expense.
    • Increases of $2.5 million and $1.5 million in bankcard expense and occupancy expense, respectively.

Full year 2022 earnings discussion

Net income for the year ended December 31, 2022 was $431.7 million, or $8.86 per diluted share, compared to $353.0 million, or $7.24 per diluted share in 2021. Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $433.0 million, or $8.88 per diluted share, compared to $354.4 million, or $7.27 per diluted share in 2021. These results represent increases of 22.3% and 22.2%, respectively. Operating PTPP, a non-GAAP measure reconciled later in this release to the components of net income before taxes, the nearest comparable GAAP measure, was $571.7 million, or $11.73 per diluted share, compared to $450.9 million, or $9.26 per diluted share, for 2021. These results represent an increase of 26.8% as compared to 2021.

Summary of year-to-date financial results

 

UMB Financial Corporation

 

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

 

December

 

 

December

 

 

 

YTD

 

 

YTD

 

 

 

2022

 

 

2021

 

Net income (GAAP)

 

$

431,682

 

 

$

353,018

 

Earnings per share (diluted)

 

 

8.86

 

 

 

7.24

 

 

 

 

 

 

 

 

 

 

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

 

 

571,671

 

 

 

450,896

 

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

 

 

11.73

 

 

 

9.26

 

 

 

 

 

 

 

 

 

 

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

 

 

597,465

 

 

 

477,230

 

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

 

 

12.26

 

 

 

9.79

 

 

 

 

 

 

 

 

 

 

Net operating income (Non-GAAP)

 

 

433,020

 

 

 

354,446

 

Operating earnings per share (diluted)

 

 

8.88

 

 

 

7.27

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.15

%

 

 

1.00

%

Return on average equity

 

 

15.83

 

 

 

11.43

 

Efficiency ratio

 

 

60.84

 

 

 

65.02

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

1.15

%

 

 

1.00

%

Operating return on average equity

 

 

15.88

 

 

 

11.47

 

Operating efficiency ratio

 

 

60.72

 

 

 

64.87

 

  • Net interest income increased $98.3 million, or 12.1%, year-over-year due to a $2.1 billion increase in earning assets and the impact from increased short-term and long-term interest rates. The increase in earning assets was primarily driven by a $2.2 billion, or 13.2%, increase in average loans, and an increase of $1.8 billion, or 15.7% in average securities. This growth was partially offset by a decrease of $1.7 billion in interest-bearing due from banks. Average interest-bearing liabilities increased $583.1 million, while noninterest-bearing demand deposits increased $2.0 billion, or 17.9%. The yield on earning assets increased 62 basis points, while the cost of interest-bearing liabilities increased 84 basis points. Net interest margin for 2022 was 2.63%, an increase of 13 basis points from 2021.
  • Full-year noninterest income increased $87.1 million, or 18.6%, due to:
    • An increase of $53.4 million in investment securities gains, largely driven by the gain on the sale of the company’s Visa Inc. Class B common shares during the second quarter of 2022.
    • An increase of $30.8 million in brokerage fees, primarily driven by higher 12b-1 and money market income.
    • An increase of $13.1 million in trust and securities processing, due to increases of $12.9 million and $6.5 million in fund services income and corporate trust income, respectively, partially offset by a decrease of $6.3 million in trust income.
    • These increases were partially offset by a decrease of $10.1 million in company-owned life insurance income, recorded in other income. The decrease in company-owned life insurance is offset by a proportionate decrease in deferred compensation expense as noted below.
  • Full-year noninterest expense increased $64.5 million, or 7.7%, primarily due to:
    • An increase of $20.0 million in salaries and employee benefits expense, driven by an increase of $21.8 million in salaries and bonus expense, partially offset by a decrease of $1.9 million in employee benefits expense. The increase in salaries and bonus expense was driven by higher salaries and improved company performance. The decrease in employee benefits expense was due to a decrease of $9.5 million in deferred compensation expense, partially offset by an increase of $5.0 million in payroll taxes, insurance, and 401(k) expense. This decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.
    • An increase of $14.7 million in processing fees due to the ongoing modernization of the company’s core systems and timing of multiple projects.
    • Increases of $7.2 million and $6.7 million in marketing and business development and legal and consulting expense, respectively, due to the timing of multiple projects. The increase in marketing and business development expense was also partially driven by an increase in advertising for various projects and an increase in travel and entertainment expense.
    • An increase of $7.2 million in bankcard expense primarily due to higher processing expense and bankcard fraud losses.
    • Increases of $6.1 million in operational losses and $2.4 million in charitable contributions, both recorded in other expense.

Income taxes

  • The company’s effective tax rate was 18.9% for the year ended December 31, 2022, compared to 17.7% for the same period in 2021. The increase in the effective rate in 2022 is primarily attributable to a smaller portion of income being earned from tax-exempt municipal securities.

Balance sheet

  • Average total assets for the fourth quarter of 2022 were $37.3 billion compared to $36.3 billion for the linked quarter and $38.1 billion for the same period in 2021.

Summary of average loans and leases - QTD Average

UMB Financial Corporation

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q3

 

Q4

 

CQ vs.

 

CQ vs.

 

 

2022

 

2022

 

2021

 

LQ

 

PY

Commercial and industrial

 

$

8,891,356

 

 

$

8,417,174

 

 

$

6,994,935

 

 

$

474,182

 

 

$

1,896,421

 

Specialty lending

 

 

559,200

 

 

 

559,797

 

 

 

484,552

 

 

 

(597

)

 

 

74,648

 

Commercial real estate

 

 

7,323,877

 

 

 

6,892,484

 

 

 

6,218,138

 

 

 

431,393

 

 

 

1,105,739

 

Consumer real estate

 

 

2,678,771

 

 

 

2,574,926

 

 

 

2,272,498

 

 

 

103,845

 

 

 

406,273

 

Consumer

 

 

145,811

 

 

 

142,348

 

 

 

107,841

 

 

 

3,463

 

 

 

37,970

 

Credit cards

 

 

457,043

 

 

 

438,235

 

 

 

414,267

 

 

 

18,808

 

 

 

42,776

 

Leases and other

 

 

238,603

 

 

 

259,298

 

 

 

200,417

 

 

 

(20,695

)

 

 

38,186

 

Total loans

 

$

20,294,661

 

 

$

19,284,262

 

 

$

16,692,648

 

 

$

1,010,399

 

 

$

3,602,013

 

  • Average loans for the fourth quarter of 2022 increased 5.2% on a linked-quarter basis and 21.6% compared to the fourth quarter of 2021.

Summary of average securities - QTD Average

 

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q3

 

Q4

 

CQ vs.

 

CQ vs.

 

 

2022

 

2022

 

2021

 

LQ

 

PY

Securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

752,339

 

$

746,429

 

$

69,398

 

$

5,910

 

 

$

682,941

 

U.S. Agencies

 

 

171,171

 

 

 

173,980

 

 

 

93,619

 

 

 

(2,809

)

 

 

77,552

 

Mortgage-backed

 

 

4,027,120

 

 

 

4,363,838

 

 

 

7,395,528

 

 

 

(336,718

)

 

 

(3,368,408

)

State and political subdivisions

 

 

1,353,307

 

 

 

1,600,043

 

 

 

3,437,841

 

 

 

(246,736

)

 

 

(2,084,534

)

Corporates

 

 

366,131

 

 

 

381,151

 

 

 

236,743

 

 

 

(15,020

)

 

 

129,388

 

Collateralized loan obligations

 

 

328,475

 

 

 

300,475

 

 

 

38,099

 

 

 

28,000

 

 

 

290,376

 

Total securities available for sale

 

$

6,998,543

 

 

$

7,565,916

 

 

$

11,271,228

 

 

$

(567,373

)

 

$

(4,272,685

)

Securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Agencies

 

$

123,077

 

 

$

123,048

 

 

$

 

 

$

29

 

 

$

123,077

 

Mortgage-backed

 

 

2,983,489

 

 

 

3,039,998

 

 

 

105,622

 

 

 

(56,509

)

 

 

2,877,867

 

State and political subdivisions

 

 

2,765,717

 

 

 

2,621,633

 

 

 

1,089,587

 

 

 

144,084

 

 

 

1,676,130

 

Total securities held to maturity

 

$

5,872,283

 

 

$

5,784,679

 

 

$

1,195,209

 

 

$

87,604

 

 

$

4,677,074

 

Trading securities

 

 

11,799

 

 

 

5,651

 

 

 

29,426

 

 

 

6,148

 

 

 

(17,627

)

Other securities

 

 

315,748

 

 

 

330,950

 

 

 

299,829

 

 

 

(15,202

)

 

 

15,919

 

Total securities

 

$

13,198,373

 

 

$

13,687,196

 

 

$

12,795,692

 

 

$

(488,823

)

 

$

402,681

 

  • Average total securities decreased 3.6% on a linked-quarter basis and increased 3.1% compared to the fourth quarter of 2021.

Summary of average deposits - QTD Average

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q3

 

Q4

 

CQ vs.

 

CQ vs.

 

 

2022

 

2022

 

2021

 

LQ

 

PY

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

12,454,413

 

 

$

12,394,251

 

 

$

13,124,918

 

 

$

60,162

 

$

(670,505

)

Interest-bearing demand and savings

 

 

17,952,568

 

 

 

16,723,205

 

 

 

17,809,817

 

 

 

1,229,363

 

 

 

142,751

 

Time deposits

 

 

966,969

 

 

 

679,994

 

 

 

701,836

 

 

 

286,975

 

 

 

265,133

 

Total deposits

 

$

31,373,950

 

 

$

29,797,450

 

 

$

31,636,571

 

 

$

1,576,500

 

 

$

(262,621

)

Noninterest bearing deposits as % of total

 

 

39.7

%

 

 

41.6

%

 

 

41.5

%

 

 

 

 

 

 

  • Average deposits increased 5.3% on a linked-quarter basis and decreased 0.8% compared to the fourth quarter of 2021.

Capital

Capital information

 

UMB Financial Corporation

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

September 30, 2022

 

 

December 31, 2021

 

Total equity

 

$

2,667,093

 

 

$

2,523,545

 

 

$

3,145,424

 

Book value per common share

 

 

55.20

 

 

 

52.24

 

 

 

64.95

 

Tangible book value per common share (Non-GAAP)

 

 

49.28

 

 

 

48.19

 

 

 

61.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory capital:

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital

 

$

3,129,030

 

 

$

3,132,209

 

 

$

2,885,576

 

Tier 1 capital

 

 

3,129,030

 

 

 

3,132,209

 

 

 

2,885,576

 

Total capital

 

 

3,682,619

 

 

 

3,679,116

 

 

 

3,324,284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio

 

 

10.62

%

 

 

11.18

%

 

 

12.05

%

Tier 1 risk-based capital ratio

 

 

10.62

 

 

 

11.18

 

 

 

12.05

 

Total risk-based capital ratio

 

 

12.50

 

 

 

13.13

 

 

 

13.88

 

Tier 1 leverage ratio

 

 

8.43

 

 

 

8.66

 

 

 

7.61

 

  • At December 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

 

Q4

 

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

Net charge-offs - total loans

 

$

2,189

 

 

$

1,173

 

 

$

28,128

 

 

$

8,378

 

 

$

8,061

 

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

 

 

0.04

%

 

 

0.02

%

 

 

0.62

%

 

 

0.20

%

 

 

0.19

%

Loans over 90 days past due

 

$

1,617

 

 

$

2,513

 

 

$

3,446

 

 

$

3,600

 

 

$

2,633

 

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

 

 

0.01

%

 

 

0.01

%

 

 

0.02

%

 

 

0.02

%

 

 

0.02

%

Nonaccrual and restructured loans

 

$

19,269

 

 

$

19,817

 

 

$

18,117

 

 

$

110,356

 

 

$

92,300

 

Nonaccrual and restructured loans as a % of total loans

 

 

0.09

%

 

 

0.10

%

 

 

0.10

%

 

 

0.62

%

 

 

0.54

%

Provision for credit losses

 

$

9,000

 

 

$

22,000

 

 

$

13,400

 

 

$

(6,500

)

 

$

8,500

 

  • Provision for credit losses for the fourth quarter decreased $13.0 million from the linked quarter and increased $0.5 million from the fourth quarter of 2021. These changes are driven by loan growth, portfolio credit metric changes, and changes in macro-economic metrics in the current period as compared to the prior periods.
  • Net charge-offs for the fourth quarter totaled $2.2 million, or 0.04%, of average loans, compared to $1.2 million, or 0.02%, of average loans in the linked quarter, and $8.1 million, or 0.19%, of average loans for the fourth quarter of 2021. On a year-to-date basis, net charge-offs totaled $39.9 million, or 0.21%, of average loans, compared to $44.9 million, or 0.27%, of average loans, for the same period in 2021.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors declared a $0.38 per share quarterly cash dividend, payable on April 3, 2023, to shareholders of record at the close of business on March 10, 2023.

Conference Call

The company plans to host a conference call to discuss its fourth quarter 2022 earnings results on Wednesday, January 25, 2023, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 844-200-6205 or (international) 646-904-5544 and requesting to join the UMB Financial call with access code 216125. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 4Q 2022 Conference Call

A replay of the conference call may be heard through February 8, 2023 by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 239596. The call replay may also be accessed at investorrelations.umb.com.

Non-GAAP Financial Information

In this release, we may provide information about net operating income, operating earnings per share – diluted (operating EPS), operating return on average equity (operating ROE), operating return on average assets (operating ROA), operating noninterest expense, operating efficiency ratio, operating pre-tax, pre-provision income (operating PTPP), operating pre-tax, pre-provision earnings per share – diluted (operating PTPP EPS), operating pre-tax, pre-provision income on a fully tax equivalent basis (operating PTPP-FTE), operating pre-tax, pre-provision FTE earnings per share – diluted (operating PTPP-FTE EPS), tangible shareholders’ equity, 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, operating PTPP, operating PTPP EPS, operating PTPP-FTE, operating 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).

Operating PTPP income for the relevant period is defined as GAAP net interest income plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions, severance expense, and COVID-19 related expense.

Operating PTPP-FTE for the relevant period is defined as GAAP net interest income on a fully tax equivalent basis plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions, severance expense and COVID-19 related 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; sustained levels of high inflation and the potential for an economic recession on the heels of aggressive quantitative tightening by the Federal Reserve, and impacts related to or resulting from Russia’s military action in Ukraine, such as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except to the extent required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K, or other applicable document that is filed or furnished with the SEC.

About UMB:

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

Consolidated Balance Sheets

 

UMB Financial Corporation

(dollars in thousands)

 

 

 

 

 

 

 

 

December 31,

 

 

2022

 

2021

 

 

(unaudited)

 

(audited)

ASSETS

 

 

 

 

 

 

Loans

 

$

21,031,189

 

 

$

17,170,871

 

Allowance for credit losses on loans

 

 

(191,836

)

 

 

(194,771

)

Net loans

 

 

20,839,353

 

 

 

16,976,100

 

Loans held for sale

 

 

1,978

 

 

 

1,277

 

Securities:

 

 

 

 

 

 

Available for sale

 

 

7,006,347

 

 

 

11,976,514

 

Held to maturity, net of allowance for credit losses

 

 

5,859,192

 

 

 

1,478,476

 

Trading securities

 

 

17,980

 

 

 

31,875

 

Other securities

 

 

349,758

 

 

 

327,098

 

Total securities

 

 

13,233,277

 

 

 

13,813,963

 

Federal funds sold and resell agreements

 

 

958,597

 

 

 

1,216,357

 

Interest-bearing due from banks

 

 

1,179,105

 

 

 

8,841,906

 

Cash and due from banks

 

 

500,682

 

 

 

413,821

 

Premises and equipment, net

 

 

263,649

 

 

 

270,933

 

Accrued income

 

 

189,231

 

 

 

131,102

 

Goodwill

 

 

207,385

 

 

 

174,518

 

Other intangibles, net

 

 

78,724

 

 

 

14,416

 

Other assets

 

 

1,060,480

 

 

 

839,091

 

Total assets

 

$

38,512,461

 

 

$

42,693,484

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Noninterest-bearing demand

 

$

13,260,363

 

 

$

16,342,642

 

Interest-bearing demand and savings

 

 

18,461,632

 

 

 

18,405,644

 

Time deposits under $250,000

 

 

379,087

 

 

 

403,660

 

Time deposits of $250,000 or more

 

 

538,051

 

 

 

447,981

 

Total deposits

 

 

32,639,133

 

 

 

35,599,927

 

Federal funds purchased and repurchase agreements

 

 

2,222,167

 

 

 

3,238,435

 

Long-term debt

 

 

381,311

 

 

 

271,544

 

Accrued expenses and taxes

 

 

239,624

 

 

 

249,492

 

Other liabilities

 

 

363,133

 

 

 

188,662

 

Total liabilities

 

 

35,845,368

 

 

 

39,548,060

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Common stock

 

 

55,057

 

 

 

55,057

 

Capital surplus

 

 

1,125,949

 

 

 

1,110,520

 

Retained earnings

 

 

2,536,086

 

 

 

2,176,998

 

Accumulated other comprehensive (loss) income, net

 

 

(702,735

)

 

 

126,314

 

Treasury stock

 

 

(347,264

)

 

 

(323,465

)

Total shareholders' equity

 

 

2,667,093

 

 

 

3,145,424

 

Total liabilities and shareholders' equity

 

$

38,512,461

 

 

$

42,693,484

 

Consolidated Statements of Income

 

UMB Financial Corporation

(dollars in thousands except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2022

 

2021

 

2022

 

2021

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

273,648

 

 

$

155,324

 

$

810,007

 

$

619,273

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable interest

 

 

51,441

 

 

 

37,376

 

 

 

192,121

 

 

 

127,625

 

Tax-exempt interest

 

 

25,105

 

 

 

24,140

 

 

 

97,190

 

 

 

98,305

 

Total securities income

 

 

76,546

 

 

 

61,516

 

 

 

289,311

 

 

 

225,930

 

Federal funds and resell agreements

 

 

7,106

 

 

 

2,286

 

 

 

19,109

 

 

 

10,048

 

Interest-bearing due from banks

 

 

9,373

 

 

 

2,182

 

 

 

18,582

 

 

 

5,417

 

Trading securities

 

 

139

 

 

 

275

 

 

 

511

 

 

 

854

 

Total interest income

 

 

366,812

 

 

 

221,583

 

 

 

1,137,520

 

 

 

861,522

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

97,484

 

 

 

6,299

 

 

 

167,553

 

 

 

26,412

 

Federal funds and repurchase agreements

 

 

18,848

 

 

 

1,673

 

 

 

40,703

 

 

 

6,934

 

Other

 

 

5,314

 

 

 

3,041

 

 

 

15,467

 

 

 

12,655

 

Total interest expense

 

 

121,646

 

 

 

11,013

 

 

 

223,723

 

 

 

46,001

 

Net interest income

 

 

245,166

 

 

 

210,570

 

 

 

913,797

 

 

 

815,521

 

Provision for credit losses

 

 

9,000

 

 

 

8,500

 

 

 

37,900

 

 

 

20,000

 

Net interest income after provision for credit losses

 

 

236,166

 

 

 

202,070

 

 

 

875,897

 

 

 

795,521

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

Trust and securities processing

 

 

59,207

 

 

 

58,515

 

 

 

237,207

 

 

 

224,126

 

Trading and investment banking

 

 

5,251

 

 

 

6,977

 

 

 

23,201

 

 

 

30,939

 

Service charges on deposit accounts

 

 

19,758

 

 

 

21,607

 

 

 

85,167

 

 

 

86,056

 

Insurance fees and commissions

 

 

459

 

 

 

359

 

 

 

1,338

 

 

 

1,309

 

Brokerage fees

 

 

13,332

 

 

 

3,346

 

 

 

43,019

 

 

 

12,171

 

Bankcard fees

 

 

19,597

 

 

 

16,642

 

 

 

73,451

 

 

 

64,576

 

Investment securities (losses) gains, net

 

 

(409

)

 

 

1,448

 

 

 

58,444

 

 

 

5,057

 

Other

 

 

8,302

 

 

 

9,888

 

 

 

32,406

 

 

 

42,941

 

Total noninterest income

 

 

125,497

 

 

 

118,782

 

 

 

554,233

 

 

 

467,175

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

135,940

 

 

 

131,360

 

 

 

524,431

 

 

 

504,442

 

Occupancy, net

 

 

12,409

 

 

 

10,907

 

 

 

48,848

 

 

 

47,345

 

Equipment

 

 

18,969

 

 

 

19,886

 

 

 

74,259

 

 

 

78,398

 

Supplies and services

 

 

3,697

 

 

 

4,646

 

 

 

13,590

 

 

 

14,986

 

Marketing and business development

 

 

8,788

 

 

 

6,528

 

 

 

25,699

 

 

 

18,533

 

Processing fees

 

 

23,545

 

 

 

19,083

 

 

 

82,227

 

 

 

67,563

 

Legal and consulting

 

 

10,664

 

 

 

10,858

 

 

 

39,095

 

 

 

32,406

 

Bankcard

 

 

7,369

 

 

 

4,865

 

 

 

26,367

 

 

 

19,145

 

Amortization of other intangible assets

 

 

1,649

 

 

 

1,110

 

 

 

5,037

 

 

 

4,757

 

Regulatory fees

 

 

4,232

 

 

 

3,393

 

 

 

15,378

 

 

 

11,894

 

Other

 

 

10,556

 

 

 

9,847

 

 

 

43,188

 

 

 

34,167

 

Total noninterest expense

 

 

237,818

 

 

 

222,483

 

 

 

898,119

 

 

 

833,636

 

Income before income taxes

 

 

123,845

 

 

 

98,369

 

 

 

532,011

 

 

 

429,060

 

Income tax expense

 

 

23,672

 

 

 

19,873

 

 

 

100,329

 

 

 

76,042

 

NET INCOME

 

$

100,173

 

 

$

78,496

 

 

$

431,682

 

 

$

353,018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

Net income – basic

 

$

2.07

 

 

$

1.62

 

 

$

8.93

 

 

$

7.31

 

Net income – diluted

 

 

2.06

 

 

 

1.61

 

 

 

8.86

 

 

 

7.24

 

Dividends

 

 

0.38

 

 

 

0.37

 

 

 

1.49

 

 

 

1.38

 

Weighted average shares outstanding – basic

 

 

48,310,993

 

 

 

48,371,296

 

 

 

48,340,922

 

 

 

48,271,462

 

Weighted average shares outstanding – diluted

48,735,088

 

48,854,383

 

48,747,399

 

48,738,292

 

Consolidated Statements of Comprehensive Income

 

UMB Financial Corporation

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2022

 

2021

 

2022

 

2021

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

Net income

 

$

100,173

 

 

$

78,496

 

 

$

431,682

 

 

$

353,018

 

Other comprehensive income (loss), before tax:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized holding gains and losses, net

 

 

64,924

 

 

 

(46,275

)

 

 

(1,137,417

)

 

 

(244,695

)

Less: Reclassification adjustment for gains included in net income

 

 

 

 

 

(2,739

)

 

 

 

 

 

(7,817

)

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

 

 

11,186

 

 

 

 

 

 

36,894

 

 

 

 

Change in unrealized gains and losses on debt securities

 

 

76,110

 

 

 

(49,014

)

 

 

(1,100,523

)

 

 

(252,512

)

Unrealized gains and losses on derivative hedges:

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized gains and losses on derivative hedges, net

 

 

170

 

 

 

(407

)

 

 

12,608

 

 

 

3,106

 

Less: Reclassification adjustment for gains included in net income

 

 

(1,942

)

 

 

(802

)

 

 

(5,353

)

 

 

(3,352

)

Change in unrealized gains and losses on derivative hedges

 

 

(1,772

)

 

 

(1,209

)

 

 

7,255

 

 

 

(246

)

Other comprehensive income (loss), before tax

 

 

74,338

 

 

 

(50,223

)

 

 

(1,093,268

)

 

 

(252,758

)

Income tax (expense) benefit

 

 

(17,813

)

 

 

12,230

 

 

 

264,219

 

 

 

60,732

 

Other comprehensive income (loss)

 

 

56,525

 

 

 

(37,993

)

 

 

(829,049

)

 

 

(192,026

)

Comprehensive income (loss)

 

$

156,698

 

 

$

40,503

 

 

$

(397,367

)

 

$

160,992

 

Consolidated Statements of Shareholders' Equity

UMB Financial Corporation

(dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

(audited)

 

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)

 

 

 

 

 

 

 

 

353,018

 

 

 

(192,026

)

 

 

 

 

 

160,992

 

Dividends ($1.38 per share)

 

 

 

 

 

 

 

 

(67,266

)

 

 

 

 

 

 

 

 

(67,266

)

Purchase of treasury stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,506

)

 

 

(5,506

)

Issuances of equity awards, net of forfeitures

 

 

 

 

 

(4,605

)

 

 

 

 

 

 

 

 

5,299

 

 

 

694

 

Recognition of equity-based compensation

 

 

 

 

 

20,514

 

 

 

 

 

 

 

 

 

 

 

 

20,514

 

Sale of treasury stock

 

 

 

 

 

316

 

 

 

 

 

 

 

 

 

283

 

 

 

599

 

Exercise of stock options

 

 

 

 

 

3,845

 

 

 

 

 

 

 

 

 

14,604

 

 

 

18,449

 

Balance - December 31, 2021

 

$

55,057

 

 

$

1,110,520

 

 

$

2,176,998

 

 

$

126,314

 

 

$

(323,465

)

 

$

3,145,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance - January 1, 2022

 

$

55,057

 

 

$

1,110,520

 

 

$

2,176,998

 

 

$

126,314

 

 

$

(323,465

)

 

$

3,145,424

 

Total comprehensive income (loss)

 

 

 

 

 

 

 

 

431,682

 

 

 

(829,049

)

 

 

 

 

 

(397,367

)

Dividends ($1.49 per share)

 

 

 

 

 

 

 

 

(72,594

)

 

 

 

 

 

 

 

 

(72,594

)

Purchase of treasury stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(31,997

)

 

 

(31,997

)

Issuances of equity awards, net of forfeitures

 

 

 

 

 

(6,143

)

 

 

 

 

 

 

 

 

6,822

 

 

 

679

 

Recognition of equity-based compensation

 

 

 

 

 

20,812

 

 

 

 

 

 

 

 

 

 

 

 

20,812

 

Sale of treasury stock

 

 

 

 

 

351

 

 

 

 

 

 

 

 

 

245

 

 

 

596

 

Exercise of stock options

 

 

 

 

 

409

 

 

 

 

 

 

 

 

 

1,131

 

 

 

1,540

 

Balance - December 31, 2022

 

$

55,057

 

 

$

1,125,949

 

 

$

2,536,086

 

 

$

(702,735

)

 

$

(347,264

)

 

$

2,667,093

 

Average Balances / Yields and Rates

 

UMB Financial Corporation

 

(tax - equivalent basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

 

2022

 

 

2021

 

 

 

Average

 

 

Average

 

 

Average

 

 

Average

 

 

 

Balance

 

 

Yield/Rate

 

 

Balance

 

 

Yield/Rate

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned interest

 

$

20,294,661

 

 

 

5.35

%

 

$

16,692,648

 

 

 

3.69

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

9,382,837

 

 

 

2.18

 

 

 

8,607,960

 

 

 

1.72

 

Tax-exempt

 

 

3,803,737

 

 

 

3.31

 

 

 

4,158,306

 

 

 

2.92

 

Total securities

 

 

13,186,574

 

 

 

2.50

 

 

 

12,766,266

 

 

 

2.11

 

Federal funds and resell agreements

 

 

656,092

 

 

 

4.30

 

 

 

1,099,090

 

 

 

0.83

 

Interest bearing due from banks

 

 

1,135,356

 

 

 

3.28

 

 

 

5,712,993

 

 

 

0.15

 

Trading securities

 

 

11,799

 

 

 

5.31

 

 

 

29,426

 

 

 

4.41

 

Total earning assets

 

 

35,284,482

 

 

 

4.20

 

 

 

36,300,423

 

 

 

2.49

 

Allowance for credit losses

 

 

(188,299

)

 

 

 

 

 

 

(196,891

)

 

 

 

 

Other assets

 

 

2,243,437

 

 

 

 

 

 

 

1,974,579

 

 

 

 

 

Total assets

 

$

37,339,620

 

 

 

 

 

 

$

38,078,111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

18,919,537

 

 

 

2.04

%

 

$

18,511,653

 

 

 

0.13

%

Federal funds and repurchase agreements

 

 

2,424,171

 

 

 

3.08

 

 

 

2,611,151

 

 

 

0.25

 

Borrowed funds

 

 

396,874

 

 

 

5.31

 

 

 

271,296

 

 

 

4.45

 

Total interest-bearing liabilities

 

 

21,740,582

 

 

 

2.22

 

 

 

21,394,100

 

 

 

0.20

 

Noninterest-bearing demand deposits

 

 

12,454,413

 

 

 

 

 

 

 

13,124,918

 

 

 

 

 

Other liabilities

 

 

522,932

 

 

 

 

 

 

 

417,015

 

 

 

 

 

Shareholders' equity

 

 

2,621,693

 

 

 

 

 

 

 

3,142,078

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

37,339,620

 

 

 

 

 

 

$

38,078,111

 

 

 

 

 

Net interest spread

 

 

 

 

 

 

1.98

%

 

 

 

 

 

 

2.29

%

Net interest margin

 

 

 

 

 

 

2.83

 

 

 

 

 

 

 

2.37

 

 

Average Balances / Yields and Rates

 

UMB Financial Corporation

 

(tax - equivalent basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

 

Average

 

 

Average

 

 

Average

 

 

Average

 

 

 

Balance

 

 

Yield/Rate

 

 

Balance

 

 

Yield/Rate

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned interest

 

$

18,823,810

 

 

 

4.30

%

 

$

16,629,867

 

 

 

3.72

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

9,616,691

 

 

 

2.00

 

 

 

7,422,432

 

 

 

1.72

 

Tax-exempt

 

 

3,885,153

 

 

 

3.16

 

 

 

4,246,943

 

 

 

2.93

 

Total securities

 

 

13,501,844

 

 

 

2.33

 

 

 

11,669,375

 

 

 

2.16

 

Federal funds and resell agreements

 

 

965,911

 

 

 

1.98

 

 

 

1,234,533

 

 

 

0.81

 

Interest bearing due from banks

 

 

2,408,468

 

 

 

0.77

 

 

 

4,063,089

 

 

 

0.13

 

Trading securities

 

 

12,076

 

 

 

4.96

 

 

 

23,480

 

 

 

4.33

 

Total earning assets

 

 

35,712,109

 

 

 

3.26

 

 

 

33,620,344

 

 

 

2.64

 

Allowance for credit losses

 

 

(184,072

)

 

 

 

 

 

 

(204,705

)

 

 

 

 

Other assets

 

 

2,050,976

 

 

 

 

 

 

 

1,912,911

 

 

 

 

 

Total assets

 

$

37,579,013

 

 

 

 

 

 

$

35,328,550

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

18,063,498

 

 

 

0.93

%

 

$

17,678,122

 

 

 

0.15

%

Federal funds and repurchase agreements

 

 

2,777,089

 

 

 

1.47

 

 

 

2,618,034

 

 

 

0.26

 

Borrowed funds

 

 

309,204

 

 

 

5.00

 

 

 

270,498

 

 

 

4.68

 

Total interest-bearing liabilities

 

 

21,149,791

 

 

 

1.06

 

 

 

20,566,654

 

 

 

0.22

 

Noninterest-bearing demand deposits

 

 

13,264,146

 

 

 

 

 

 

 

11,254,761

 

 

 

 

 

Other liabilities

 

 

438,772

 

 

 

 

 

 

 

418,021

 

 

 

 

 

Shareholders' equity

 

 

2,726,304

 

 

 

 

 

 

 

3,089,114

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

37,579,013

 

 

 

 

 

 

$

35,328,550

 

 

 

 

 

Net interest spread

 

 

 

 

 

 

2.20

%

 

 

 

 

 

 

2.42

%

Net interest margin

 

 

 

 

 

 

2.63

 

 

 

 

 

 

 

2.50

 

 

Business Segment Information

 

UMB Financial Corporation

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2022

 

 

Commercial

Banking

 

Institutional

Banking

 

Personal

Banking

 

Total

Net interest income

 

$

151,856

 

$

55,063

 

$

38,247

 

 

$

245,166

Provision for credit losses

 

 

7,668

 

 

 

93

 

 

 

1,239

 

 

 

9,000

 

Noninterest income

 

 

22,233

 

 

 

80,055

 

 

 

23,209

 

 

 

125,497

 

Noninterest expense

 

 

86,682

 

 

 

86,791

 

 

 

64,345

 

 

 

237,818

 

Income (loss) before taxes

 

 

79,739

 

 

 

48,234

 

 

 

(4,128

)

 

 

123,845

 

Income tax expense (benefit)

 

 

15,242

 

 

 

9,219

 

 

 

(789

)

 

 

23,672

 

Net income (loss)

 

$

64,497

 

 

$

39,015

 

 

$

(3,339

)

 

$

100,173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2021

 

 

Commercial

Banking

 

Institutional

Banking

 

Personal

Banking

 

Total

Net interest income

 

$

149,834

 

 

$

23,044

 

 

 

37,692

 

 

$

210,570

 

Provision for credit losses

 

 

7,446

 

 

 

90

 

 

 

964

 

 

 

8,500

 

Noninterest income

 

 

22,110

 

 

 

70,713

 

 

 

25,959

 

 

 

118,782

 

Noninterest expense

 

 

84,541

 

 

 

74,885

 

 

 

63,057

 

 

 

222,483

 

Income (loss) before taxes

 

 

79,957

 

 

 

18,782

 

 

 

(370

)

 

 

98,369

 

Income tax expense (benefit)

 

 

16,153

 

 

 

3,794

 

 

 

(74

)

 

 

19,873

 

Net income (loss)

 

$

63,804

 

 

$

14,988

 

 

$

(296

)

 

$

78,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2022

 

 

Commercial

Banking

 

Institutional

Banking

 

Personal

Banking

 

Total

Net interest income

 

$

596,031

 

 

$

159,679

 

 

$

158,087

 

 

$

913,797

 

Provision for credit losses

 

 

32,851

 

 

 

495

 

 

 

4,554

 

 

 

37,900

 

Noninterest income

 

 

122,614

 

 

 

323,794

 

 

 

107,825

 

 

 

554,233

 

Noninterest expense

 

 

332,912

 

 

 

320,976

 

 

 

244,231

 

 

 

898,119

 

Income before taxes

 

 

352,882

 

 

 

162,002

 

 

 

17,127

 

 

 

532,011

 

Income tax expense

 

 

66,548

 

 

 

30,551

 

 

 

3,230

 

 

 

100,329

 

Net income

 

$

286,334

 

 

$

131,451

 

 

$

13,897

 

 

$

431,682

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2021

 

 

Commercial

Banking

 

Institutional

Banking

 

Personal

Banking

 

Total

Net interest income

 

$

579,992

 

 

$

87,644

 

 

$

147,885

 

 

$

815,521

 

Provision for credit losses

 

 

15,543

 

 

 

630

 

 

 

3,827

 

 

 

20,000

 

Noninterest income

 

 

84,417

 

 

 

273,483

 

 

 

109,275

 

 

 

467,175

 

Noninterest expense

 

 

306,424

 

 

 

292,142

 

 

 

235,070

 

 

 

833,636

 

Income before taxes

 

 

342,442

 

 

 

68,355

 

 

 

18,263

 

 

 

429,060

 

Income tax expense

 

 

60,691

 

 

 

12,113

 

 

 

3,238

 

 

 

76,042

 

Net income

 

$

281,751

 

 

$

56,242

 

 

$

15,025

 

 

$

353,018

 

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 December 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

December 31,

 

Year Ended

December 31,

 

 

2022

 

2021

 

2022

 

2021

Net income (GAAP)

 

$

100,173

 

 

$

78,496

 

 

$

431,682

 

 

$

353,018

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition expense

 

 

851

 

 

 

18

 

 

 

922

 

 

 

18

 

Severance expense

 

 

358

 

 

 

359

 

 

 

838

 

 

 

1,122

 

COVID-19 related expense

 

 

 

 

 

169

 

 

 

 

 

 

696

 

Tax-impact of adjustments (i)

 

 

(290

)

 

 

(121

)

 

 

(422

)

 

 

(408

)

Total Non-GAAP adjustments (net of tax)

 

 

919

 

 

 

425

 

 

 

1,338

 

 

 

1,428

 

Net operating income (Non-GAAP)

 

$

101,092

 

 

$

78,921

 

 

$

433,020

 

 

$

354,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted (GAAP)

 

$

2.06

 

 

$

1.61

 

 

$

8.86

 

 

$

7.24

 

Acquisition expense

 

 

0.02

 

 

 

 

 

 

0.02

 

 

 

 

Severance expense

 

 

0.01

 

 

 

0.01

 

 

 

0.02

 

 

 

0.02

 

COVID-19 related expense

 

 

 

 

 

 

 

 

 

 

 

0.02

 

Tax-impact of adjustments (i)

 

 

(0.02

)

 

 

 

 

 

(0.02

)

 

 

(0.01

)

Operating earnings per share - diluted (Non-GAAP)

 

$

2.07

 

 

$

1.62

 

 

$

8.88

 

 

$

7.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.06

%

 

 

0.82

%

 

 

1.15

%

 

 

1.00

%

Return on average equity

 

 

15.16

 

 

 

9.91

 

 

 

15.83

 

 

 

11.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets

 

 

1.07

%

 

 

0.82

%

 

 

1.15

%

 

 

1.00

%

Operating return on average equity

 

 

15.30

 

 

 

9.97

 

 

 

15.88

 

 

 

11.47

 

(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

December 31,

 

 

Year Ended

December 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Noninterest expense

 

$

237,818

 

 

$

222,483

 

 

$

898,119

 

 

$

833,636

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition expense

 

 

851

 

 

 

18

 

 

 

922

 

 

 

18

 

Severance expense

 

 

358

 

 

 

359

 

 

 

838

 

 

 

1,122

 

COVID-19 related expense

 

 

 

 

 

169

 

 

 

 

 

 

696

 

Total Non-GAAP adjustments (pre-tax)

 

 

1,209

 

 

 

546

 

 

 

1,760

 

 

 

1,836

 

Operating noninterest expense (Non-GAAP)

 

$

236,609

 

 

$

221,937

 

 

$

896,359

 

 

$

831,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

$

237,818

 

 

$

222,483

 

 

$

898,119

 

 

$

833,636

 

Less: Amortization of other intangibles

 

 

1,649

 

 

 

1,110

 

 

 

5,037

 

 

 

4,757

 

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

 

$

236,169

 

 

$

221,373

 

 

$

893,082

 

 

$

828,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating noninterest expense

 

$

236,609

 

 

$

221,937

 

 

$

896,359

 

 

$

831,800

 

Less: Amortization of other intangibles

 

 

1,649

 

 

 

1,110

 

 

 

5,037

 

 

 

4,757

 

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

 

$

234,960

 

 

$

220,827

 

 

$

891,322

 

 

$

827,043

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

245,166

 

 

$

210,570

 

 

$

913,797

 

 

$

815,521

 

Noninterest income

 

 

125,497

 

 

 

118,782

 

 

 

554,233

 

 

 

467,175

 

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

 

 

 

 

 

2,739

 

 

 

 

 

 

7,817

 

Total Non-GAAP Revenue (denominator A)

 

$

370,663

 

 

$

326,613

 

 

$

1,468,030

 

 

$

1,274,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (numerator A/denominator A)

 

 

63.72

%

 

 

67.78

%

 

 

60.84

%

 

 

65.02

%

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

 

 

63.39

 

 

 

67.61

 

 

 

60.72

 

 

 

64.87

 

 

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

UMB Financial Corporation

 

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

 

Year Ended

December 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net interest income (GAAP)

 

$

245,166

 

 

$

210,570

 

 

$

913,797

 

 

$

815,521

 

Noninterest income (GAAP)

 

 

125,497

 

 

 

118,782

 

 

 

554,233

 

 

 

467,175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

 

237,818

 

 

 

222,483

 

 

 

898,119

 

 

 

833,636

 

Adjustments to arrive at operating noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition expense

 

 

851

 

 

 

18

 

 

 

922

 

 

 

18

 

Severance expense

 

 

358

 

 

 

359

 

 

 

838

 

 

 

1,122

 

COVID-19 related expense

 

 

 

 

 

169

 

 

 

 

 

 

696

 

Total Non-GAAP adjustments

 

 

1,209

 

 

 

546

 

 

 

1,760

 

 

 

1,836

 

Operating noninterest expense (Non-GAAP)

 

 

236,609

 

 

 

221,937

 

 

 

896,359

 

 

 

831,800

 

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

 

$

134,054

 

 

$

107,415

 

 

$

571,671

 

 

$

450,896

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income earnings per share - diluted (GAAP)

 

$

5.03

 

 

$

4.31

 

 

$

18.75

 

 

$

16.73

 

Noninterest income (GAAP)

 

 

2.57

 

 

 

2.43

 

 

 

11.37

 

 

 

9.59

 

Noninterest expense (GAAP)

 

 

4.88

 

 

 

4.55

 

 

 

18.43

 

 

 

17.10

 

Acquisition expense

 

 

0.02

 

 

 

 

 

 

0.02

 

 

 

 

Severance expense

 

 

0.01

 

 

 

0.01

 

 

 

0.02

 

 

 

0.02

 

COVID-19 related expense

 

 

 

 

 

 

 

 

 

 

 

0.02

 

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

 

$

2.75

 

 

$

2.20

 

 

$

11.73

 

 

$

9.26

 

 

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

UMB Financial Corporation

 

(unaudited, dollars in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

 

Year Ended

December 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net interest income (GAAP)

 

$

245,166

 

 

$

210,570

 

 

$

913,797

 

 

$

815,521

 

Adjustments to arrive at net interest income - FTE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent interest

 

 

6,663

 

 

 

6,483

 

 

 

25,794

 

 

 

26,334

 

Net interest income - FTE (Non-GAAP)

 

 

251,829

 

 

 

217,053

 

 

 

939,591

 

 

 

841,855

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

 

 

125,497

 

 

 

118,782

 

 

 

554,233

 

 

 

467,175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

 

237,818

 

 

 

222,483

 

 

 

898,119

 

 

 

833,636

 

Adjustments to arrive at operating noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition expense

 

 

851

 

 

 

18

 

 

 

922

 

 

 

18

 

Severance expense

 

 

358

 

 

 

359

 

 

 

838

 

 

 

1,122

 

COVID-19 related expense

 

 

 

 

 

169

 

 

 

 

 

 

696

 

Total Non-GAAP adjustments

 

 

1,209

 

 

 

546

 

 

 

1,760

 

 

 

1,836

 

Operating noninterest expense (Non-GAAP)

 

 

236,609

 

 

 

221,937

 

 

 

896,359

 

 

 

831,800

 

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

 

$

140,717

 

 

$

113,898

 

 

$

597,465

 

 

$

477,230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income earnings per share - diluted (GAAP)

 

$

5.03

 

 

$

4.31

 

 

$

18.75

 

 

$

16.73

 

Tax equivalent interest

 

 

0.14

 

 

 

0.13

 

 

 

0.53

 

 

 

0.53

 

Net interest income - FTE (Non-GAAP)

 

 

5.17

 

 

 

4.44

 

 

 

19.28

 

 

 

17.26

 

Noninterest income (GAAP)

 

 

2.57

 

 

 

2.43

 

 

 

11.37

 

 

 

9.59

 

Noninterest expense (GAAP)

 

 

4.88

 

 

 

4.55

 

 

 

18.43

 

 

 

17.10

 

Acquisition expense

 

 

0.02

 

 

 

 

 

 

0.02

 

 

 

 

Severance expense

 

 

0.01

 

 

 

0.01

 

 

 

0.02

 

 

 

0.02

 

COVID-19 related expense

 

 

 

 

 

 

 

 

 

 

 

0.02

 

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

 

$

2.89

 

 

$

2.33

 

 

$

12.26

 

 

$

9.79

 

 

Tangible book value non-GAAP reconciliations:

UMB Financial Corporation

 

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

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Total shareholders' equity (GAAP)

 

$

2,667,093

 

 

$

3,145,424

 

Less: Intangible assets

 

 

 

 

 

 

 

 

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