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 UMB Financial Corporation Reports Fourth Quarter and Full-Year 2015 Results
   Tuesday, January 26, 2016 5:00:01 PM ET

--Loans at December 31, 2015, increased 26.3 percent to $9.4 billion with legacy UMB loans having increased 13.2 percent to $8.4 billion compared to December 31, 2014

--Total deposits at December 31, 2015, increased 10.8 percent to $15.1 billion with legacy UMB deposits having increased 5.0 percent to $14.3 billion compared to December 31, 2014

--Fourth quarter 2015 earnings were $29.6 million, or $0.60 per diluted share, an increase of $2.7 million compared to fourth quarter 2014 earnings

--Full-year 2015 earnings were $116.1 million, or $2.44 per diluted share, a decrease of $4.6 million compared to full-year 2014 earnings

--Common equity Tier 1 capital ratio remains strong at 11.70 percent

UMB Financial Corporation (UMBF ), a diversified financial holding company, announced earnings for the three months ended December 31, 2015, of $29.6 million or $0.61 per share ($0.60 diluted). This is an increase of $2.7 million, or 10.0 percent, compared to fourth quarter 2014 earnings of $26.9 million or $0.60 per share ($0.59 diluted). Earnings for the year ended December 31, 2015, were $116.1 million or $2.46 per share ($2.44 diluted) or a decrease of $4.6 million, or 3.8 percent, compared to the prior year-end earnings of $120.7 million or $2.69 per share ($2.65 diluted).



The company is introducing the non-GAAP financial measure of net operating income to facilitate the evaluation of its fundamental operating performance. Net operating income, which is reconciled to earnings (GAAP net income) later in this release, excludes (net of tax) the contingency reserve expense related to an acquisition, fair value adjustments to contingent consideration for acquisitions, expenses related to an acquisition, and non-acquisition severance expense. Net operating income for the fourth quarter 2015 was $34.2 million or $0.70 per share ($0.70 diluted). This is an increase of $6.4 million, or 23.1 percent, compared to fourth quarter 2014 net operating income of $27.8 million or $0.62 per share ($0.61 diluted). Net operating income for the year ended December 31, 2015, was $123.4 million or $2.62 per share ($2.59 diluted) or a decrease of $16.2 million, or 11.6 percent, compared to the prior year-end net operating income of $139.6 million or $3.11 per share ($3.07 diluted).

"2015 was a year of change for UMB, with an increased focus on maximizing efficiencies" said Mariner Kemper, chairman and chief executive officer. "Total loan balances increased 26.3 percent from December 31, 2014 to December 31, 2015. Loans produced by legacy UMB lenders increased 13.2 percent during that period, once again outpacing industry averages. During the year, we implemented several organizational changes, and while we have faced some headwinds, we have a lot to be excited about. We have a long-standing track record of strong loan and deposit growth, and our focus on improving metrics will push more of that momentum to the bottom line."

Net Interest Income and Margin for the Fourth Quarter 2015

Net interest income for the fourth quarter of 2015 increased $23.5 million, or 25.9 percent, compared to the same period in 2014. Net interest margin increased 24 basis points to 2.76 percent for the three months ended December 31, 2015, compared to the same period in 2014.

Average earning assets increased $2.2 billion, or 14.7 percent, compared to the fourth quarter of 2014. This increase was largely due to an increase in average loans of $1.9 billion, or 25.7 percent, and an increase in average total securities, including trading securities, of $217.6 million, or 3.0 percent. The acquisition of Marquette Financial Companies (Marquette) added earning assets with an acquired value of $1.3 billion on May 31, 2015. Acquired Marquette loans and loans originated through the legacy Marquette channels had an actual balance at December 31, 2015 of $1.0 billion.

Noninterest Income and Expense for the Fourth Quarter 2015

Noninterest income decreased $2.6 million, or 2.3 percent, for the three months ended December 31, 2015, compared to the same period in 2014. This decrease is primarily attributable to a decrease in trust and securities processing income of $6.9 million, or 10.0 percent, driven by a $7.9 million, or 41.6 percent, decrease in advisory fee income from the Scout Funds. Equity earnings on alternative investments had an unrealized loss of $5.2 million at December 31, 2015 compared to an unrealized loss of $4.5 million at December 31, 2014. This is a year-over-year change of $0.7 million, or 15.6 percent. Gains on sales of securities increased $1.9 million, and other noninterest income increased $1.5 million, compared to the same period in 2014. The increase in other noninterest income was driven by $1.8 million of income generated from bank-owned life insurance investments purchased in 2015.

Noninterest expense increased $15.7 million, or 9.4 percent, for the three months ended December 31, 2015, compared to the same period in 2014. Salaries and employee benefits expense increased $13.5 million, or 15.0 percent, compared to the same period in 2014,due to an increase in salaries and wages of $8.0 million, or 13.8 percent, an increase in bonus and commission expense of $4.0 million, or 20.6 percent, and an increase in employee benefits expense of $1.5 million, or 11.9 percent. Included in the increase of salaries and employee benefits is $9.0 million of Marquette salaries and benefits, including $0.6 million in Marquette-related severance, and $3.3 million of non-Marquette severance.

Equipment expense increased $2.1 million, or 14.4 percent, compared to the same period in 2014, due to increased computer and hardware costs related to investments for regulatory requirements, cyber security and the ongoing modernization of our core systems. Occupancy expenses increased $1.5 million, or 14.3 percent, and other noninterest expense increased $1.5 million, or 29.8 percent, compared to the same period in 2014. The increase in other noninterest expense was driven by a $1.3 million increase in fair value adjustments on contingent consideration for acquisitions. Supplies and postage decreased $1.1 million, or 20.8 percent, and bankcard expenses decreased $1.5 million, or 22.2 percent, compared to the same period in 2014.

Total acquisition expenses recognized in noninterest expense during the fourth quarter of 2015 totaled $3.4 million primarily related to $0.6 million of severance expense included in salaries and employee benefits and $2.0 million of consulting expense related to core system conversions projects. Total acquisition expenses for the same period in 2014 were $1.9 million, or a comparable quarterly period increase of $1.5 million or 76.5 percent.

Balance Sheet for the Fourth Quarter 2015

Average total assets for the three months ended December 31, 2015 were $18.8 billion compared to $16.2 billion for the same period in 2014, an increase of $2.5 billion, or 15.6 percent. Average earning assets increased $2.2 billion for the period, or 14.7 percent.

Average loan balances for the three months ended December 31, 2015, increased $1.9 billion, or 25.7 percent, to $9.2 billion compared to the same period in 2014. Actual loan balances on December 31, 2015, were $9.4 billion, an increase of $2.0 billion, or 26.3 percent, compared to December 31, 2014. The overall actual loan increase at December 31, 2015 was driven by a $796.5 million, or 42.7 percent, increase in commercial real estate loans, a $391.7 million, or 10.3 percent, increase in commercial loans, a $219.2 million, or 100.0 percent, increase in asset-based loans, a $172.4 million, or 53.9 percent, increase in residential real estate loans, a $160.6 million, or 62.7 percent, increase in construction real estate loans, and a $90.7 million, or 100.0 percent, increase in factoring loans.

A significant driver in the increase in loans was the acquisition of Marquette and its loan portfolio. These acquired Marquette loans and loans originated through the legacy Marquette channels had an actual balance at December 31, 2015 of $1.0 billion. This total includes $325.2 million in commercial real estate loans, $219.2 million in asset-based loans, $111.8 million in construction real estate loans, $90.7 million in factoring loans, $99.6 million in commercial loans, and $99.4 million in residential real estate loans. The remaining increase in loans of $1.0 billion compared to December 31, 2014 is comprised of loans originated through the legacy UMB channels. This increase was primarily driven by an increase in commercial real estate loans of $471.3 million and an increase in commercial loans of $292.1 million.

Nonperforming loans increased to $61.2 million on December 31, 2015, from $27.4 million on December 31, 2014. Nonperforming loans are defined as nonaccrual loans and restructured loans. As a percentage of loans, nonperforming loans increased to 0.65 percent at December 31, 2015, compared to 0.37 percent on December 31, 2014. The company’s allowance for loan losses totaled $81.1 million, or 0.86 percent of loans, at December 31, 2015, compared to $76.1 million, or 1.02 percent of loans, at December 31, 2014.

For the three months ended December 31, 2015, average securities, including trading securities, totaled $7.4 billion. This is an increase of $217.6 million, or 3.0 percent, from the same period in 2014.

Average total deposits increased $2.4 billion, or 18.8 percent, to $15.3 billion for the three months ended December 31, 2015, compared to the same period in 2014. Deposit balances from the legacy Marquette channels totaled $798.6 million at December 31, 2015.

Average noninterest-bearing demand deposits increased $1.3 billion, or 24.6 percent, compared to the same period in 2014. Average interest-bearing deposits increased $1.1 billion, or 14.5 percent, compared to the same period in 2014. Total actual deposits as of December 31, 2015, were $15.1 billion, compared to $13.6 billion as of December 31, 2014, a 10.8 percent increase. Additionally, for the three months ended December 31, 2015, average noninterest-bearing demand deposits were 44.1 percent of average total deposits.

As of December 31, 2015, UMB had total shareholders’ equity of $1.9 billion, an increase of 15.2 percent compared to December 31, 2014. This increase is primarily attributable to the common stock issuance associated with the acquisition of Marquette of $179.7 million at May 31, 2015.

Year Ended December 31, 2015

Earnings for the year ended December 31, 2015, were $116.1 million or $2.46 per share ($2.44 diluted). This is a decrease of $4.6 million, or 3.8 percent, compared to the prior year-end earnings of $120.7 million or $2.69 per share ($2.65 diluted).

Net interest income for the year ended December 31, 2015, increased $62.0 million, or 17.7 percent, compared to the same period in 2014. Average earning assets increased $1.6 billion, or 10.6 percent, compared to the same period in 2014. This increase was due primarily to a $1.4 billion, or 20.8 percent, increase in average loans. Net interest margin increased 15 basis points to 2.64 percent, compared to the same period in 2014.

Noninterest income decreased $32.2 million, or 6.5 percent, to $466.5 million for the year ended December 31, 2015, compared to the same period in 2014. The decrease in noninterest income was primarily driven by decreased trust and securities processing income of $26.0 million, or 9.0 percent. The decrease in trust and securities processing income was primarily due to a $35.6 million, or 38.9 percent, decrease in advisory fee income from the Scout Funds, partially offset by a $5.3 million, or 5.5 percent, increase in fees related to institutional and personal investment management services, and a $2.9 million, or 3.3 percent, increase in fund administration and custody services. Equity earnings on alternative investments had an unrealized loss of $12.2 million at December 31, 2015 compared to an unrealized gain of $4.0 million at December 31, 2014, resulting in a year-over-year decrease of $16.2 million. These decreases in noninterest income were partially offset by an increase in gains on sales of securities of $6.3 million for the year ended December 31, 2015 compared to December 31, 2014.

Noninterest expense increased $38.1 million, or 5.7 percent, for the year ended December 31, 2015, compared to the same period in 2014. This increase was driven by an increase in salaries and employee benefits expense of $47.9 million, or 13.4 percent, an increase in equipment expense of $9.9 million, or 18.5 percent, and an increase in legal and consulting expense of $6.0 million, or 29.3 percent. These increases were partially offset by a $20.3 million contingency reserve recorded for the year ended December 31, 2014. Marquette salaries and employee benefits expense, including $2.4 million of Marquette-related severance, totaled $23.2 million and non-Marquette severance totaled $4.6 million for the year ended December 31, 2015.

Total acquisition expenses recognized in noninterest expense were $9.8 million during the year-ended December 31, 2015, compared to $1.9 million during the year-ended December 31, 2014.

Efficiency Initiatives

In 2015, the company announced efficiency initiatives with cost savings expected to be recognized as follows: $6.8 million in 2015, $22.6 million in 2016, and annualized savings of $32.9 million in 2017 and beyond. As an update, we recognized $9.5 million of these cost savings in 2015 and now expect to recognize $21.1 million in 2016 and annualized savings of $32.9 million beginning in 2017.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors declared a $0.245 per share quarterly cash dividend, payable on April 1, 2016, to shareholders of record at the close of business on March 10, 2016.

Conference Call

The company plans to host a conference call to discuss its 2015 fourth quarter and full-year 2015 earnings results on January 27, 2016 at 8:30 a.m. (CT). Interested parties may access the call by dialing (toll-free) 877-267-8760 or (U.S.) 412-542-4148 and requesting to join the UMB Financial call. The live call can also be accessed by visiting the investor relations area of umbfinancial.com or by using the following the link:

UMB Financial 4Q 2015 Conference Call

A replay of the conference call may be heard through February 10, 2016, by calling (toll-free) 877-344-7529 or (U.S.) 412-317-0088. The replay pass code required for playback is 10078224. The call replay may also be accessed via the company’s website umbfinancial.com by visiting the investor relations area.

Non-GAAP Financial Information

In this release, we provide information using net operating income, operating earnings per share (operating EPS), operating return on average equity (operating ROE), operating return on average assets (operating ROA) ,operating noninterest expense, and operating efficiency ratio, all of which are non-GAAP financial measures. This information supplements the results that are reported according to generally accepted accounting principles (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 and operating efficiency ratio--and the comparable GAAP financial measures are reconciled later in this release. The company believes that these non-GAAP financial measures and the reconciliations may be useful to investors because they adjust for acquisition- and severance-related items that management does not believe reflect the company’s fundamental operating performance.

Net operating income for the relevant period is defined as GAAP net income, adjusted to reflect the after-tax impact of excluding the following: (i) the contingency reserve expense related to the acquisition of Prairie Capital Management, LLC, (ii) fair value adjustments to contingent consideration for the acquisitions of Prairie Capital Management, LLC and Reams Asset Management Company, (iii) expenses related to the acquisition of Marquette Financial Companies, and (iv) non-acquisition severance expense. Operating EPS (basic and diluted) is calculated as net operating income, divided by the company’s average number of shares outstanding (basic and diluted) 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 in clauses i-iv above. Operating efficiency ratio is calculated as the company’s operating noninterest expense, less amortization of other intangibles, divided by the company’s tax equivalent net interest income plus noninterest income less gains on sales of securities available for sale.

Forward-Looking Statements:

This release contains, and our other communications may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts--such as our statements about expected cost savings and other results of efficiency initiatives and our statements about asset sensitivity. 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, 2014, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the SEC. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K, or other applicable document that is filed or furnished with the SEC.

About UMB:

UMB Financial Corporation (UMBF ) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors. For more information, visit umb.com, umbfinancial.com, blog.umb.com or follow us on Twitter at @UMBBank, Facebook at facebook.com/UMBBank and LinkedIn at linkedin.com/company/umb-bank.

                                                                                                                              
Non-GAAP Financial Measures                                                                                                                                                                                                                                                                                                             UMB Financial Corporation
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Net operating income non-GAAP reconciliation:
(unaudited, dollars in thousands, except per share data)
                                                                                                                                                               
                                                                                                                                                      Three Months Ended                                                                                                                                       Year Ended
                                                                                                                                                         December 31,                                                                                                                                         December 31,
                                                                                                       2015          2014          2015                2014
                                                                                                  -------------------- ------------------------------ -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
Net income (GAAP)                                                                                                    $    29,643                                                              $ 26,940                                                              $ 116,073                                                              $              120,655
Adjustments (net of tax):
Contingency reserve expense (i)                                                                                                -                                                                     -                                                                      -                                                                              12,974
Fair value adjustments on contingent consideration (ii)                                                                      300                                                                 (543)                                                                (1,925)                                                                               4,264
Acquisition expenses (iii)                                                                                                 2,193                                                                 1,243                                                                  6,293                                                                               1,243
Non-acquisition severance expense (iv)                                                                  2,098          181         2,919                        465
                                                                                                  -------------------- ------------------------------ -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
Total Non-GAAP adjustments (net of tax)                                                                 4,591          881         7,287                     18,946
                                                                                                  -------------------- ------------------------------ -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
Net operating income (Non-GAAP)                                                                                      $    34,234                        $ 27,821                        $ 123,360                        $              139,601
                                                                                                  ==================== ============================== ==================== ==================== ====== ==================== ==================== ==================== ======= ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                              
GAAP
-------------------------------------------------------
Earnings per share - Basic                                                                                           $      0.61                                                              $   0.60                                                              $    2.46                                                              $                 2.69
Earnings per share - Diluted                                                                                                0.60                                                                  0.59                                                                   2.44                                                                                2.65
Return on average assets                                                                                                   0.63%                                                                 0.66%                                                                  0.65%                                                                               0.75%
Return on average equity                                                                                                   6.15%                                                                 6.47%                                                                  6.43%                                                                               7.54%
                                                                                                                                                                                                                                                                                                                                              
Non-GAAP
-------------------------------------------------------
Operating earnings per share - Basic                                                                                 $      0.70                                                              $   0.62                                                              $    2.62                                                              $                 3.11
Operating earnings per share - Diluted                                                                                      0.70                                                                  0.61                                                                   2.59                                                                                3.07
Operating return on average assets                                                                                         0.72%                                                                 0.68%                                                                  0.69%                                                                               0.87%
Operating return on average equity                                                                                         7.10%                                                                 6.68%                                                                  6.83%                                                                               8.73%
                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                        
Operating noninterest expense and operating efficiency ratio
non-GAAP reconciliation:
(unaudited, dollars in thousands)                                                                          
                                                                 
                                                                                                                               Three Months Ended                                                                                                            Year Ended
                                                                                            December 31,                                                 December 31,                                             December 31,           December 31,
                                                                                                2015                   2014               2015                   2014
                                                                                     -------------------- --------------------  -------------------- -------------------- -------------------- ------------ -------------------- -------------------- -------------------- ------------ -------------------- -------------------- -------------------- --------------------
Noninterest expense (GAAP)                                                                              $               182,080                        $      166,397                                                              $      703,736                                                              $              665,680
Adjustments (pre-tax):
     Contingency reserve expense (i)                                                                                          -                                                                           -                                                                           -                                                                              20,272
     Fair value adjustments on contingent consideration (ii)                                                                469                                                                       (848)                                                                     (3,008)                                                                               6,662
     Acquisition expenses (iii)                                                                                           3,427                                                                       1,942                                                                       9,833                                                                               1,942
     Non-acquisition severance expense (iv)                                                            3,278                282              4,561                        726
                                                                                     -------------------- ------------------------------------------ -------------------- -------------------- ------------ -------------------- -------------------- -------------------- ------------ -------------------- -------------------- -------------------- --------------------
     Total Non-GAAP adjustments (pre-tax)                                                              7,174              1,376             11,386                     29,602
                                                                                     -------------------- ------------------------------------------ -------------------- -------------------- ------------ -------------------- -------------------- -------------------- ------------ -------------------- -------------------- -------------------- --------------------
Operating noninterest expense                                                                        174,906            165,021            692,350                    636,078
                                                                                     ==================== ========================================== ==================== ==================== ============ ==================== ==================== ==================== ============ ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                        
Noninterest expense                                                                                                     182,080                                                                     166,397                                                                     703,736                                                                             665,680
     Less: Amortization of other intangibles                                                           3,283              2,974             12,090                     12,193
                                                                                     -------------------- ------------------------------------------ -------------------- -------------------- ------------ -------------------- -------------------- -------------------- ------------ -------------------- -------------------- -------------------- --------------------
Noninterest expense, net of amortization of other intangibles                                        178,797            163,423            691,646                    653,487
(numerator A)
                                                                                     ==================== ====================  ==================== ==================== ==================== ============ ==================== ==================== ==================== ============ ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                        
Operating noninterest expense (Non-GAAP)                                                                                174,906                                                                     165,021                                                                     692,350                                                                             636,078
     Less: Amortization of other intangibles                                                           3,283              2,974             12,090                     12,193
                                                                                     -------------------- ------------------------------------------ -------------------- -------------------- ------------ -------------------- -------------------- -------------------- ------------ -------------------- -------------------- -------------------- --------------------
Operating expense, net of amortization of other intangibles                                          171,623            162,047            680,260                    623,885
(numerator B)
                                                                                     ==================== ====================  ==================== ==================== ==================== ============ ==================== ==================== ==================== ============ ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                        
Net interest income (tax equivalent) (v)                                                                                120,966                                                                      96,200                                                                     435,852                                                                             371,289
Noninterest income                                                                                                      112,599                                                                     115,248                                                                     466,454                                                                             498,688
     Less: Gains on sales of securities available for sale, net                                        1,998                 62             10,402                      4,127
                                                                                     -------------------- ------------------------------------------ -------------------- -------------------- ------------ -------------------- -------------------- -------------------- ------------ -------------------- -------------------- -------------------- --------------------
Total (denominator A)                                                                                231,567            211,386            891,904                    865,850
                                                                                     ==================== ========================================== ==================== ==================== ============ ==================== ==================== ==================== ============ ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                        
Efficiency ratio (numerator A/denominator A)                                                                             77.21%                                                                      77.31%                                                                      77.55%                                                                              75.47%
Operating efficiency ratio (numerator B/denominator A)                                                                   74.11%                                                                      76.66%                                                                      76.27%                                                                              72.05%
(i) Represents the company’s 2014 contingency reserve for the
settlement of disputes related to the acquisition of Prairie Capital
Management, LLC (PCM).
(ii) Represents fair value adjustments to contingent consideration
for the acquisitions of PCM and Reams Asset Management Company.
(iii) Represents expenses related to the acquisition of Marquette
Financial Companies (MFC).
(iv) Represents non-acquisition severance expense related to
UMB-legacy employees. Severance expense for MFC-legacy employees is
included in item (iii).
(v) Tax-exempt interest income has been adjusted to a tax equivalent
basis. The amount of such adjustment was an addition to net interest
income of $6.5 million and $5.3 million for the three months ended
December 31, 2015 and 2014, respectively, and an addition to net
interest income of $23.8 million and $21.2 million for the
year-ended December 31, 2015 and 2014, respectively.
 
                                                      
Consolidated Balance Sheets                                                                                                   UMB Financial Corporation
-------------------------------------------------- -------------------- -------------------- -------------------- -----------------------------------------------------------------------------------------------
(unaudited, dollars in thousands)                                                                                               
                                                                                                                                                           December 31,
Assets                                                                                            2015                  2014
--------------------------------------------------                                           -------------------- ---------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                             
Loans                                                                                                           $  9,430,761                                                              $            7,465,794
    Allowance for loan losses                                                                    (81,143)                   (76,140)
                                                                                             -------------------- ---------- -------------------- -------------------- -------------------- --------------------
        Net loans                                                                               9,349,618                  7,389,654
                                                                                             -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Loans held for sale                                                                                                      589                                                                                 624
Investment securities:
    Available for sale                                                                                             6,806,949                                                                           6,911,936
    Held to maturity                                                                                                 667,106                                                                             278,054
    Trading securities                                                                                                29,617                                                                              27,203
    Other securities                                                                               65,198                     68,474
                                                                                             -------------------- ---------- -------------------- -------------------- -------------------- --------------------
        Total investment securities                                                             7,568,870                  7,285,667
                                                                                             -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Federal funds and resell agreements                                                                                  173,627                                                                             118,105
Interest-bearing due from banks                                                                                      522,877                                                                           1,539,386
Cash and due from banks                                                                                              458,217                                                                             444,299
Bank premises and equipment, net                                                                                     281,471                                                                             257,835
Accrued income                                                                                                        90,127                                                                              79,297
Goodwill                                                                                                             228,346                                                                             209,758
Other intangibles                                                                                                     46,782                                                                              43,991
Other assets                                                                                      373,721                    132,344
                                                                                             -------------------- ---------- -------------------- -------------------- -------------------- --------------------
        Total assets                                                                                            $ 19,094,245                        $           17,500,960
                                                                                             ==================== ========== ==================== ==================== ==================== ====================
                                                                                                                                                                                             
                                                                                                                                                                                             
Liabilities
--------------------------------------------------
Deposits:
    Noninterest-bearing demand                                                                                  $  6,306,895                                                              $            5,643,989
    Interest-bearing demand and savings                                                                            7,529,972                                                                           6,709,281
    Time deposits under $250,000                                                                                     771,973                                                                             636,507
    Time deposits of $250,000 or more                                                             483,912                    627,082
                                                                                             -------------------- ---------- -------------------- -------------------- -------------------- --------------------
        Total deposits                                                                         15,092,752                 13,616,859
                                                                                             -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Federal funds and repurchase agreements                                                                            1,818,062                                                                           2,025,132
Short-term debt                                                                                                        5,009                                                                                   -
Long-term debt                                                                                                        86,070                                                                               8,810
Accrued expenses and taxes                                                                                           161,245                                                                             180,074
Other liabilities                                                                                  37,413                     26,327
                                                                                             -------------------- ---------- -------------------- -------------------- -------------------- --------------------
        Total liabilities                                                                      17,200,551                 15,857,202
                                                                                             -------------------- ---------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                             
Shareholders’ Equity
--------------------------------------------------
Common stock                                                                                                          55,057                                                                              55,057
Capital surplus                                                                                                    1,019,889                                                                             894,602
Retained earnings                                                                                                  1,033,990                                                                             963,911
Accumulated other comprehensive (loss) income                                                                        (3,718)                                                                              11,006
Treasury stock                                                                                  (211,524)                  (280,818)
                                                                                             -------------------- ---------- -------------------- -------------------- -------------------- --------------------
        Total shareholders’ equity                                                              1,893,694                  1,643,758
                                                                                             -------------------- ---------- -------------------- -------------------- -------------------- --------------------
        Total liabilities and shareholders’ equity                                                              $ 19,094,245                        $           17,500,960
                                                                                             ==================== ========== ==================== ==================== ==================== ====================
                                                                                                                                                                                             
                                                                                                                                                
Consolidated Statements of Income                                                                                                                                                                                                                             UMB Financial Corporation
---------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(unaudited, dollars in thousands except share and per share data)                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                Three Months Ended                                                                                                                                                Year Ended
                                                                                                                                                                   December 31,                                                                                                                                                  December 31,
Interest Income                                                                                                2015                  2014             2015                  2014
----------------------------------------------------------                                           -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Loans                                                                                                                   $               88,011                                                              $     64,433                                                              $    308,325                                                              $              245,278
Securities:
 Taxable interest                                                                                                                       18,858                                                                    19,338                                                                    75,327                                                                              76,204
 Tax-exempt interest                                                                                                                    11,756            9,759           43,598                     39,209
                                                                                                                          -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
   Total securities income                                                                                                              30,614                                                                    29,097                                                                   118,925                                                                             115,413
Federal funds and resell agreements                                                                                                        320                                                                        93                                                                       697                                                                                 259
Interest-bearing due from banks                                                                                                            595                                                                       510                                                                     2,356                                                                               2,525
Trading securities                                                                                                                          75               85              378                        396
                                                                                                                          -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
    Total interest income                                                                                                              119,615           94,218          430,681                    363,871
                                                                                                                          -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                   
Interest Expense
----------------------------------------------------------
Deposits                                                                                                                                 3,836                                                                     3,076                                                                    14,269                                                                              12,242
Federal funds and repurchase agreements                                                                                                    396                                                                       323                                                                     1,785                                                                               1,616
Other                                                                                                                                      929             (95)            2,560                       (42)
                                                                                                                          -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
   Total interest expense                                                                                                                5,161            3,304           18,614                     13,816
                                                                                                                          -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Net interest income                                                                                                                    114,454                                                                    90,914                                                                   412,067                                                                             350,055
Provision for loan losses                                                                                                                5,000            3,000           15,500                     17,000
                                                                                                                          -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
       Net interest income after provision for loan losses                                                                             109,454           87,914          396,567                    333,055
                                                                                                                          -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                   
Noninterest Income
----------------------------------------------------------
Trust and securities processing                                                                                                         62,194                                                                    69,072                                                                   262,056                                                                             288,054
Trading and investment banking                                                                                                           5,559                                                                     4,840                                                                    20,218                                                                              19,398
Service charges on deposits                                                                                                             21,631                                                                    21,480                                                                    86,460                                                                              85,299
Insurance fees and commissions                                                                                                             894                                                                       765                                                                     2,530                                                                               3,011
Brokerage fees                                                                                                                           3,005                                                                     2,595                                                                    11,753                                                                              10,761
Bankcard fees                                                                                                                           17,369                                                                    17,321                                                                    69,211                                                                              67,250
Gains on sale of securities available for sale, net                                                                                      1,998                                                                        62                                                                    10,402                                                                               4,127
Equity (loss) earnings on alternative investments                                                                                      (5,189)                                                                   (4,487)                                                                  (12,188)                                                                               3,975
Other                                                                                                                                    5,138            3,600           16,012                     16,813
                                                                                                                          -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
   Total noninterest income                                                                                                            112,599          115,248          466,454                    498,688
                                                                                                                          -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                   
Noninterest Expense
----------------------------------------------------------
Salaries and employee benefits                                                                                                         103,617                                                                    90,115                                                                   406,472                                                                             358,569
Occupancy, net                                                                                                                          11,791                                                                    10,312                                                                    43,861                                                                              40,197
Equipment                                                                                                                               16,723                                                                    14,618                                                                    63,533                                                                              53,609
Supplies, postage and telephone                                                                                                          4,280                                                                     5,403                                                                    18,579                                                                              20,411
Marketing and business development                                                                                                       6,816                                                                     7,182                                                                    23,730                                                                              24,148
Processing fees                                                                                                                         13,096                                                                    13,496                                                                    51,328                                                                              56,049
Legal and consulting                                                                                                                     7,447                                                                     7,907                                                                    26,390                                                                              20,407
Bankcard                                                                                                                                 5,301                                                                     6,812                                                                    20,288                                                                              19,594
Amortization of other intangibles                                                                                                        3,283                                                                     2,974                                                                    12,090                                                                              12,193
Regulatory fees                                                                                                                          3,320                                                                     2,643                                                                    12,125                                                                              10,445
Contingency reserve                                                                                                                          -                                                                         -                                                                         -                                                                              20,272
Other                                                                                                                                    6,406            4,935           25,340                     29,786
                                                                                                                          -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
   Total noninterest expense                                                                                                           182,080                                                                   166,397                                                                   703,736                                                                             665,680
                                                                                                                                                                                                                                                                                                                                                                   
Income before income taxes                                                                                                              39,973                                                                    36,765                                                                   159,285                                                                             166,063
Income tax provision                                                                                                                    10,330            9,825           43,212                     45,408
                                                                                                                          -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Net income                                                                                                              $               29,643                        $     26,940                        $    116,073                        $              120,655
                                                                                                                          ==================== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                   
Per Share Data
----------------------------------------------------------
Net income - basic                                                                                                      $                 0.61                                                              $       0.60                                                              $       2.46                                                              $                 2.69
Net income - diluted                                                                                                         0.60                                                                      0.59                                                                      2.44                                                                                2.65
Dividends                                                                                                                                0.245                                                                     0.235                                                                     0.950                                                                               0.910
Weighted average shares outstanding - basic                                                                                         48,630,195                                                                44,920,106                                                                47,126,252                                                                          44,844,578
Weighted average shares outstanding - diluted                                                                                       49,066,566                                                                45,465,760                                                                47,579,334                                                                          45,445,283
                                                                                                                                                                                                                                                                                                                                                                   
Consolidated Statements of Comprehensive (Loss) Income                                                                                                                                                                                                                                                          UMB Financial Corporation
---------------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(unaudited, dollars in thousands)                                                                                                                                                                                                          
                                                                                                                    Three Months Ended                                                                                                                                         Year Ended
                                                                                                                                                             December 31,                                                                                                                                           December 31,
                                                                                                                              2015                             2014                               2015                                      2014
                                                                                                                 -------------------------------------------------- -------------------- ------------------------------------------------- -------------------- ----------------------------------------------------- -------------------- ------------------------------------------
Net Income                                                                                                                          $   29,643                        $  26,940                                                              $     116,073                                                              $              120,655
Other comprehensive (loss) income, net of tax:
 Unrealized (losses) gains on securities:
   Change in unrealized holding (losses) gains, net                                                                                   (46,682)                                                                 14,991                                                                   (13,393)                                                                              74,147
   Less: Reclassifications adjustment for gains included in net income                                              (1,998)          (62)          (10,402)                    (4,127)
                                                                                                                 -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------------------- -------------------- -------------------- --------------------
     Net unrealized holding (losses) gains                                                                                            (48,680)                                                                 14,929                                                                   (23,795)                                                                              70,020
   Change in unrealized losses on derivatives                                                                          (10)             -              (10)                          -
                                                                                                                 -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------------------- -------------------- -------------------- --------------------
Income tax benefit (expense)                                                                                         18,442       (5,750)             9,081                   (26,374)
                                                                                                                 -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------------------- -------------------- -------------------- --------------------
Other comprehensive (loss) income                                                                                  (30,248)         9,179          (14,724)                     43,646
                                                                                                                 -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------------------- -------------------- -------------------- --------------------
Comprehensive (loss) income                                                                                                         $    (605)                        $  36,119                        $     101,349                        $              164,301
                                                                                                                 ==================== ======== ==================== ==================== ==================== ======= ==================== ==================== ==================== ================================ ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                
 
Consolidated Statements of Shareholders’ Equity                                                                                                                                   UMB Financial Corporation
---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------------------------------------------------------------------------------------------------------------
(unaudited, dollars in thousands, except per share data)
                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                              Accumulated
                                                                                                                                                                                                                                                                                                 Other
                                                                                                      Common                                                         Capital                                                       Retained                                                  Comprehensive                                           Treasury
                                                                                    Stock                   Surplus                 Earnings            (Loss) Income       Stock              Total
                                                                          -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- --------- -------------------- -------------------- --------------------
Balance - January 1, 2014                                                                    $               55,057                                         $              882,407                                         $              884,630                                         $      (32,640)                                         $ (283,389)                                         $            1,506,065
Total comprehensive income                                                                                        -                                                              -                                                        120,655                                                  43,646                                                   -                                                        164,301
Cash dividends ($0.91 per share)                                                                                  -                                                              -                                                       (41,374)                                                       -                                                   -                                                       (41,374)
Purchase of treasury stock                                                                                        -                                                              -                                                              -                                                       -                                             (5,741)                                                        (5,741)
Issuance of equity awards                                                                                         -                                                        (2,338)                                                              -                                                       -                                               2,827                                                            489
Recognition of equity based compensation                                                                          -                                                          9,172                                                              -                                                       -                                                   -                                                          9,172
Net tax benefit related to equity compensation plans                                                              -                                                          1,880                                                              -                                                       -                                                   -                                                          1,880
Sale of treasury stock                                                                                            -                                                            596                                                              -                                                       -                                                 340                                                            936
Exercise of stock options                                                                      -                    2,885                        -                 -         5,145                    8,030
                                                                          -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- --------- -------------------- -------------------- --------------------
Balance - December 31, 2014                                                     $               55,057                      $              894,602                      $              963,911                      $        11,006                      $ (280,818)                      $            1,643,758
                                                                          ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ============= ==================== ==================== ========= ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                         
Balance - January 1, 2015                                                                    $               55,057                                         $              894,602                                         $              963,911                                         $        11,006                                         $ (280,818)                                         $            1,643,758
Total comprehensive income                                                                                        -                                                              -                                                        116,073                                                (14,724)                                                   -                                                        101,349
Cash dividends ($0.95 per share)                                                                                  -                                                              -                                                       (45,994)                                                       -                                                   -                                                       (45,994)
Purchase of treasury stock                                                                                        -                                                              -                                                              -                                                       -                                             (8,457)                                                        (8,457)
Issuance of equity awards                                                                                         -                                                        (3,278)                                                              -                                                       -                                               3,737                                                            459
Recognition of equity based compensation                                                                          -                                                         10,292                                                              -                                                       -                                                   -                                                         10,292
Net tax benefit related to equity compensation plans                                                              -                                                            944                                                              -                                                       -                                                   -                                                            944
Sale of treasury stock                                                                                            -                                                            611                                                              -                                                       -                                                 445                                                          1,056
Exercise of stock options                                                                                         -                                                          4,083                                                              -                                                       -                                               6,467                                                         10,550
Common stock issuance for                                                                      -                  112,635                        -                 -        67,102                  179,737
Acquisition
                                                                          -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- --------- -------------------- -------------------- --------------------
Balance - December 31, 2015                                                     $               55,057                      $            1,019,889                      $            1,033,990                      $       (3,718)                      $ (211,524)                      $            1,893,694
                                                                          ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ============= ==================== ==================== ========= ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                
Average Balances / Yields and Rates                          UMB Financial Corporation                                                                                                                            
---------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(tax - equivalent basis)                                                                                                                                                                                                                                      
(unaudited, dollars in thousands)                                                                                                                                                                                            Three Months Ended December 31,
                                                                                                                                             2015                                                                                                 2014
                                                                                         -------------------- ----------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------------------------------------------------------------------------
                                                                                                                     Average                                                        Average                                                                                             Average                                              Average
Assets                                                                                            Balance                Yield/Rate                Balance      Yield/Rate  
----------------------------------------------                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
Loans, net of unearned interest                                                                             $            9,199,961                                                           3.80 %                                                                                 $  7,320,930                                                 3.49 %
Securities:
  Taxable                                                                                                                4,704,102                                                           1.59                                                                                      5,006,800                                                 1.53
  Tax-exempt                                                                                                             2,670,130                     2.71                                                                                      2,148,256           2.77
                                                                                                              -------------------- -------------------- -------------------- --------------------                                                                                     ---------- -------------------- -------------------- ----------
    Total securities                                                                                                     7,374,232                                                           2.00                                                                                      7,155,056                                                 1.91
Federal funds and resell agreements                                                                                        117,005                                                           1.09                                                                                         73,821                                                 0.50
Interest-bearing due from banks                                                                                            662,036                                                           0.36                                                                                        571,921                                                 0.35
Trading securities                                                                                                          27,439                     1.29                                                                                         29,019           1.46
                                                                                                              -------------------- -------------------- -------------------- --------------------                                                                                     ---------- -------------------- -------------------- ----------
    Total earning assets                                                                                                17,380,673                                                           2.88                                                                                     15,150,747                                                 2.61
Allowance for loan losses                                                                                                 (78,906)                                                                                                                                                      (77,527)
Other assets                                                                                          1,453,790                                                                                                                                  1,158,402
                                                                                         -------------------- --------------------                                                                                                                               -------------------- ----------
    Total assets                                                                                            $           18,755,557                                                                                                                                                  $ 16,231,622
                                                                                         -------------------- --------------------                                                                                                                               -------------------- ----------
                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                       
Liabilities and Shareholders’ Equity
----------------------------------------------
Interest-bearing deposits                                                                                   $            8,528,207                                                           0.18 %                                                                                 $  7,446,164                                                 0.16 %
Federal funds and repurchase agreements                                                                                  1,305,939                                                           0.12                                                                                      1,535,253                                                 0.08
Borrowed funds                                                                                                              88,862                                                           4.15                                                                                          7,021                                               (5.37)
                                                                                                              --------------------                                           --------------------                                                                                     ----------                                           ----------
    Total interest-bearing liabilities                                                                                   9,923,008                                                           0.21                                                                                      8,988,438                                                 0.15
Noninterest-bearing demand deposits                                                                                      6,734,309                                                                                                                                                     5,403,856
Other liabilities                                                                                                          185,586                                                                                                                                                       187,359
Shareholders’ equity                                                                                  1,912,654                                                                                                                                  1,651,969
                                                                                         -------------------- --------------------                                                                                                                               -------------------- ----------
    Total liabilities and shareholders’ equity                                                              $           18,755,557                                                                                                                                                  $ 16,231,622
                                                                                         -------------------- --------------------                                                                                                                               -------------------- ----------
Net interest spread                                                                                                                                                                          2.67 %                                                                                                                                              2.46 %
Net interest margin                                                                                                                                                                          2.76                                                                                                                                                2.52
                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                 Year Ended December 31,
                                                                                                                                             2015                                                                                                 2014
                                                                                         -------------------- ----------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------------------------------------------------------------------------
                                                                                                                     Average                                                        Average                                                                                             Average                                              Average
Assets                                                                                            Balance                Yield/Rate                Balance      Yield/Rate  
----------------------------------------------                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
Loans, net of unearned interest                                                                             $            8,425,107                                                           3.66 %                                                                                 $  6,975,338                                                 3.52 %
Securities:
  Taxable                                                                                                                4,823,710                                                           1.56                                                                                      4,898,826                                                 1.56
  Tax-exempt                                                                                                             2,473,811                     2.72                                                                                      2,122,822           2.84
                                                                                                              -------------------- -------------------- -------------------- --------------------                                                                                     ---------- -------------------- -------------------- ----------
    Total securities                                                                                                     7,297,521                                                           1.95                                                                                      7,021,648                                                 1.94
Federal funds and resell agreements                                                                                         76,108                                                           0.92                                                                                         48,869                                                 0.53
Interest-bearing due from banks                                                                                            664,752                                                           0.35                                                                                        843,134                                                 0.30
Trading securities                                                                                                          32,725                     1.46                                                                                         32,189           1.46
                                                                                                              -------------------- -------------------- -------------------- --------------------                                                                                     ---------- -------------------- -------------------- ----------
    Total earning assets                                                                                                16,496,213                                                           2.75                                                                                     14,921,178                                                 2.58
Allowance for loan losses                                                                                                 (77,899)                                                                                                                                                      (76,459)
Other assets                                                                                          1,368,128                                                                                                                                  1,154,174
                                                                                         -------------------- --------------------                                                                                                                               -------------------- ----------
    Total assets                                                                                            $           17,786,442                                                                                                                                                  $ 15,998,893
                                                                                         -------------------- --------------------                                                                                                                               -------------------- ----------
                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                       
Liabilities and Shareholders’ Equity
----------------------------------------------
Interest-bearing deposits                                                                                   $            8,150,588                                                           0.18 %                                                                                 $  7,494,744                                                 0.16 %
Federal funds and repurchase agreements                                                                                  1,590,776                                                           0.11                                                                                      1,535,038                                                 0.11
Borrowed funds                                                                                                              59,174                     4.33                                                                                          6,059         (0.69)
                                                                                                              -------------------- -------------------- -------------------- --------------------                                                                                     ---------- -------------------- -------------------- ----------
    Total interest-bearing liabilities                                                                                   9,800,538                                                           0.19                                                                                      9,035,841                                                 0.15
Noninterest-bearing demand deposits                                                                                      5,927,702                                                                                                                                                     5,196,529
Other liabilities                                                                                                          252,346                                                                                                                                                       166,758
Shareholders’ equity                                                                                  1,805,856                                                                                                                                  1,599,765
                                                                                         -------------------- --------------------                                                                                                                               -------------------- ----------
    Total liabilities and shareholders’ equity                                                              $           17,786,442                                                                                                                                                  $ 15,998,893
                                                                                         -------------------- --------------------                                                                                                                               -------------------- ----------
Net interest spread                                                                                                                                                                          2.56 %                                                                                                                                              2.43 %
Net interest margin                                                                                                                                                                          2.64                                                                                                                                                2.49
                                                                                                                                                                                                                                                                                                                                                       
                                                                                                    
FOURTH QUARTER 2015
FINANCIAL HIGHLIGHTS                                                                                                                               UMB Financial Corporation
------------------------------------ -------------------- -------------------- -------------------- ----------------------------------------------------------------------------------------------------------------------------------
(unaudited, dollars in thousands, except share and per share data)
                                                                                                                                                                                                                  
Year Ended December 31                                                                2015                2014     
------------------------------------                                           -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
Net interest income                                                                               $       412,067                                                                                   $    350,055
Provision for loan losses                                                                                  15,500                                                                                         17,000
Noninterest income                                                                                        466,454                                                                                        498,688
Noninterest expense                                                                                       703,736                                                                                        665,680
Income before income taxes                                                                                159,285                                                                                        166,063
Net income                                                                                                116,073                                                                                        120,655
Net income per share - Basic                                                                                 2.46                                                                                           2.69
Net income per share - Diluted                                                                               2.44                                                                                           2.65
Return on average assets                                                                                     0.65 %                                                                                         0.75                    %
Return on average equity                                                                                     6.43 %                                                                                         7.54                    %
                                                                                                                                                                                                                  
Three Months Ended December 31
------------------------------------
Net interest income                                                                               $       114,454                                                                                   $     90,914
Provision for loan losses                                                                                   5,000                                                                                          3,000
Noninterest income                                                                                        112,599                                                                                        115,248
Noninterest expense                                                                                       182,080                                                                                        166,397
Income before income taxes                                                                                 39,973                                                                                         36,765
Net income                                                                                                 29,643                                                                                         26,940
Net income per share - Basic                                                                                 0.61                                                                                           0.60
Net income per share - Diluted                                                                               0.60                                                                                           0.59
Return on average assets                                                                                     0.63                    %                                                                      0.66                    %
Return on average equity                                                                                     6.15                    %                                                                      6.47                    %
                                                                                                                                                                                                                  
At December 31
------------------------------------
Assets                                                                                            $    19,094,245                                                                                   $ 17,500,960
Loans, net of unearned interest                                                                         9,430,761                                                                                      7,465,794
Securities                                                                                              7,568,870                                                                                      7,285,667
Deposits                                                                                               15,092,752                                                                                     13,616,859
Shareholders’ equity                                                                                    1,893,694                                                                                      1,643,758
Book value per share                                                                                        38.34                                                                                          36.10
Market price per share                                                                                      46.55                                                                                          56.89
Equity to assets                                                                                             9.92                    %                                                                      9.39                    %
Allowance for loan losses                                                                         $        81,143                                                                                   $     76,140
    As a % of loans                                                                                          0.86                    %                                                                      1.02                    %
Nonaccrual and restructured loans                                                                 $        61,152                                                                                   $     27,382
    As a % of loans                                                                                          0.65                    %                                                                      0.37                    %
Loans over 90 days past due                                                                       $         7,324                                                                                   $      3,830
    As a % of loans                                                                                          0.08                    %                                                                      0.05                    %
Other real estate owned                                                                           $         3,307                                                                                   $        394
Net loan charge-offs quarter-to-date                                                              $         1,886                                                                                   $      4,176
    As a % of average loans                                                                                  0.08                    %                                                                      0.23                    %
Net loan charge-offs year-to-date                                                                 $        10,497                                                                                   $     15,610
    As a % of average loans                                                                                  0.12                    %                                                                      0.22                    %
                                                                                                                                                                                                                  
Common shares outstanding                                                                              49,396,366                                                                                     45,532,188
                                                                                                                                                                                                                  
Average Balances
Year Ended December 31
------------------------------------
Assets                                                                                            $    17,786,442                                                                                   $ 15,998,893
Loans, net of unearned interest                                                                         8,425,107                                                                                      6,975,338
Securities                                                                                              7,330,246                                                                                      7,053,837
Deposits                                                                                               14,078,290                                                                                     12,691,273
Shareholders’ equity                                                                                    1,805,856                                                                                      1,599,765
                                                                                                                                                                                                                  
Business Segment Information                                                                                                                                                                                                                                                                      UMB Financial Corporation
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(unaudited, dollars in thousands)                                                                                                                                                                                                                             
                                                                                                                                        Three Months Ended December 31, 2015
                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  Bank                            Payment                      Institutional                      Asset                         Total
                                                                                                                                    Solutions                                         Investment                                         Servicing
                                                                                                                                                                                      Management
                                                                    ------------------------------  -------------------- ----------------------------   -------------------- --------------------------  -------------------- -----------------------------  -------------------- -------------------- --------------------
Net interest income                                                                    $     96,658                      $    16,028                      $      -                      $     1,768                                         $              114,454
Provision for loan losses                                                                     2,997                                               2,003                                                -                                                   -                                                          5,000
Noninterest income                                                                           46,400                                              22,802                                           20,880                                              22,517                                                        112,599
Noninterest expense                                                      116,710        27,887     18,636        18,847                  182,080
                                                                    -------------------- ---------- -------------------- -------------------- ------------------------------ -------------------- ------ -------------------- -------------------- --------- -------------------- -------------------- --------------------
Income before taxes                                                                          23,351                                               8,940                                            2,244                                               5,438                                                         39,973
Income tax expense                                                         6,016         2,325        583         1,406                   10,330
                                                                    -------------------- ---------- -------------------- -------------------- ------------------------------ -------------------- ------ -------------------- -------------------- --------- -------------------- -------------------- --------------------
Net income                                                                             $     17,335                      $     6,615                      $  1,661                      $     4,032                      $               29,643
                                                                    ==================== ========== ==================== ==================== ============================== ==================== ====== ==================== ==================== ========= ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                        
Average assets                                                                         $ 14,494,000                                         $ 3,183,000                                         $ 64,000                                         $ 1,015,000                                         $           18,756,000
                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                              Three Months Ended December 31, 2014
                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  Bank                            Payment                      Institutional                      Asset                         Total
                                                                                                                                    Solutions                                         Investment                                         Servicing
                                                                                                                                                                                      Management
                                                                    ------------------------------  -------------------- ----------------------------   -------------------- --------------------------  -------------------- -----------------------------  -------------------- -------------------- --------------------
Net interest income                                                                    $     75,861                                         $    14,003                                         $      1                                         $     1,049                                         $               90,914
Provision for loan losses                                                                     1,617                                               1,383                                                -                                                   -                                                          3,000
Noninterest income                                                                           42,380                                              21,479                                           29,212                                              22,177                                                        115,248
Noninterest expense                                                       96,803        26,473     23,183        19,938                  166,397
                                                                    -------------------- ---------- -------------------- -------------------- ------------------------------ -------------------- ------ -------------------- -------------------- --------- -------------------- -------------------- --------------------
Income before taxes                                                                          19,821                                               7,626                                            6,030                                               3,288                                                         36,765
Income tax expense                                                         5,427         1,967      1,559           872                    9,825
                                                                    -------------------- ---------- -------------------- -------------------- --------  -------------------- -------------------- ------ -------------------- -------------------- --------- -------------------- -------------------- --------------------
Net income                                                                             $     14,394                      $     5,659                      $  4,471                      $     2,416                      $               26,940
                                                                    ==================== ========== ==================== ==================== ============================== ==================== ====== ==================== ==================== ========= ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                        
Average assets                                                                         $ 12,323,000                                         $ 2,949,000                                         $ 72,000                                         $   888,000                                         $           16,232,000
                                                                                                                                                                                                                                                                                                        
                                                                                                                                            Year Ended December 31, 2015
                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  Bank                            Payment                      Institutional                       Asset                         Total
                                                                                                                                    Solutions                                         Investment                                          Servicing
                                                                                                                                                                                      Management
                                                                    ------------------------------  -------------------- -----------------------------  -------------------- ---------------------------  -------------------- -----------------------------  -------------------- -------------------- --------------------
Net interest income                                                                    $    348,701                      $    58,288                      $       2                      $     5,076                      $              412,067
Provision for loan losses                                                                     8,541                                               6,959                                                 -                                                   -                                                         15,500
Noninterest income                                                                          188,444                                              91,326                                            95,097                                              91,587                                                        466,454
Noninterest expense                                                      446,656       106,016      71,413        79,651                  703,736
                                                                    -------------------- ---------- -------------------- -------------------- --------- -------------------- -------------------- ------- -------------------- -------------------- --------- -------------------- -------------------- --------------------
Income before taxes                                                                          81,948                                              36,639                                            23,686                                              17,012                                                        159,285
Income tax expense                                                        22,127        10,043       6,490         4,552                   43,212
                                                                    -------------------- ---------- -------------------- -------------------- --------- -------------------- -------------------- ------- -------------------- -------------------- --------- -------------------- -------------------- --------------------
Net income                                                                             $     59,821                      $    26,596                      $  17,196                      $    12,460                      $              116,073
                                                                    ==================== ========== ==================== ==================== ========= ==================== ==================== ======= ==================== ==================== ========= ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                         
Average assets                                                                         $ 13,706,000                                         $ 3,044,000                                         $  68,000                                         $   968,000                                         $           17,786,000
                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                  Year Ended December 31, 2014
                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  Bank                            Payment                      Institutional                       Asset                         Total
                                                                                                                                    Solutions                                         Investment                                          Servicing
                                                                                                                                                                                      Management
                                                                    ------------------------------  -------------------- -----------------------------  -------------------- ---------------------------  -------------------- -----------------------------  -------------------- -------------------- --------------------
Net interest income                                                                    $    292,356                                         $    52,251                                         $     (3)                                         $     5,451                                         $              350,055
Provision for loan losses                                                                     9,175                                               7,825                                                 -                                                   -                                                         17,000
Noninterest income                                                                          194,223                                              84,478                                           131,225                                              88,762                                                        498,688
Noninterest expense                                                      404,203        93,915      92,048        75,514                  665,680
                                                                    -------------------- ---------- -------------------- -------------------- --------- -------------------- -------------------- ------- -------------------- -------------------- --------- -------------------- -------------------- --------------------
Income before taxes                                                                          73,201                                              34,989                                            39,174                                              18,699                                                        166,063
Income tax expense                                                        24,095         7,791      10,093         3,429                   45,408
                                                                    -------------------- ---------- -------------------- -------------------- --------- -------------------- -------------------- ------- -------------------- -------------------- --------- -------------------- -------------------- --------------------
Net income                                                                             $     49,106                      $    27,198                      $  29,081                      $    15,270                      $              120,655
                                                                    ==================== ========== ==================== ==================== ========= ==================== ==================== ======= ==================== ==================== ========= ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                         
Average assets                                                                         $ 12,099,000                                         $ 2,456,000                                         $  72,000                                         $ 1,372,000                                         $           15,999,000
                                                                                                                                                                                                                                                                                                         

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160126006680r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160126006680/en/

SOURCE: UMB Financial Corporation

UMB Financial Corporation 
Kelli Christman, 816-916-3240


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