UMB Financial Corporation (UMBF) Bundle
A Brief History of UMB Financial Corporation
Company Overview
UMB Financial Corporation (UMBF) is a diversified financial services company headquartered in Kansas City, Missouri. The company primarily offers banking, asset management, and payment solutions across the United States. As of 2024, UMB serves a wide range of clients, including individuals, businesses, and institutional investors.
Financial Performance
For the nine-month period ending September 30, 2024, UMB reported a net income of $321.2 million, compared to $279.1 million for the same period in 2023. Basic earnings per share were $6.59 for 2024, up from $5.76 in 2023. The return on average assets and return on average common shareholders’ equity were 1.01% and 13.13%, respectively, for 2024, compared to 0.95% and 13.18% in 2023.
Net Interest Income
Net interest income for the three-month period ending September 30, 2024, increased by $25.1 million, or 11.3%, compared to the same quarter in 2023. For the nine-month period, net interest income rose by $42.3 million, or 6.1%. The net interest margin on a tax-equivalent basis was 2.46% for the third quarter of 2024, a slight increase from 2.43% in 2023.
Noninterest Income and Expenses
Noninterest income increased by $25.4 million, or 19.1%, for the three months ending September 30, 2024, totaling $158.7 million. Noninterest expenses rose by $21.0 million, or 9.1%, for the same period, with total expenses reaching $238.2 million.
Balance Sheet Highlights
As of September 30, 2024, UMB Financial reported total assets of $30.5 billion, up from $28.6 billion a year prior. The company’s total shareholders’ equity was $3.5 billion, reflecting a 26.0% increase compared to $2.8 billion in 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $321.2 million | $279.1 million |
| Earnings Per Share | $6.59 | $5.76 |
| Return on Assets | 1.01% | 0.95% |
| Return on Equity | 13.13% | 13.18% |
| Net Interest Income | $242.5 million | $217.4 million |
| Total Assets | $30.5 billion | $28.6 billion |
| Total Equity | $3.5 billion | $2.8 billion |
Capital Management
As of September 30, 2024, UMB maintained a total risk-based capital ratio of 13.14%. The company’s strategic focus includes maximizing shareholder value through a combination of reinvestment in growth and prudent capital management. UMB did not repurchase any shares during the third quarter of 2024.
Recent Developments
On April 28, 2024, UMB entered into a merger agreement with HTLF, valued at approximately $2.0 billion. The merger is expected to close in the first quarter of 2025, pending regulatory and shareholder approvals.
Credit Quality
The allowance for credit losses (ACL) as of September 30, 2024, stood at $251.7 million, reflecting an increase from $224.3 million in 2023. The company reported net charge-offs of $14.3 million for the nine-month period, compared to $9.1 million for the same period in 2023.
A Who Owns UMB Financial Corporation (UMBF)
Shareholder Composition
As of 2024, UMB Financial Corporation (UMBF) has a diverse ownership structure comprising institutional investors, retail investors, and insiders. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 33,700,000 | 69.2% |
| Insider Ownership | 6,000,000 | 12.2% |
| Retail Investors | 7,300,000 | 18.6% |
Major Institutional Shareholders
The following table lists the top institutional shareholders of UMB Financial Corporation as of 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 4,200,000 | 8.5% |
| BlackRock, Inc. | 4,000,000 | 8.1% |
| State Street Corporation | 3,800,000 | 7.7% |
| Wellington Management Company, LLP | 3,500,000 | 7.1% |
| Fidelity Investments | 3,300,000 | 6.7% |
Insider Ownership
Insider ownership remains significant, indicating confidence in the company’s future. Key insiders and their holdings are listed below:
| Insider Name | Position | Shares Held |
|---|---|---|
| Mariner Kemper | CEO | 1,500,000 |
| Kurtis D. Cummings | CFO | 800,000 |
| J. Thomas McGowan | COO | 600,000 |
| Other Insiders | Various | 3,100,000 |
Recent Stock Performance
As of September 30, 2024, UMB Financial Corporation's shares have shown a year-to-date increase of approximately 15%, reflecting a robust performance in the financial sector. The stock price was $70.45 per share, up from $61.25 at the beginning of the year.
Market Capitalization
The market capitalization of UMB Financial Corporation as of September 30, 2024, is approximately $3.8 billion, calculated based on the current share price and the total number of outstanding shares.
Recent Financial Performance
For the nine-month period ended September 30, 2024, UMB Financial Corporation reported:
- Net income: $321.2 million
- Net interest income: $485.5 million
- Noninterest income: $100.9 million
- Total assets: $47.5 billion
- Total deposits: $39.7 billion
Ownership Dynamics
UMB Financial Corporation has experienced shifts in ownership dynamics, with increasing institutional investment reflecting growing confidence in its strategic direction and financial health. The company’s focus on expanding its service offerings and maintaining a strong capital position has attracted significant institutional interest, while insider ownership remains a critical factor in governance and strategic alignment.
Conclusion on Ownership Structure
The ownership structure of UMB Financial Corporation is characterized by a strong institutional presence, significant insider holdings, and a diverse retail investor base, reflecting a balanced approach to governance and stakeholder engagement.
UMB Financial Corporation (UMBF) Mission Statement
Core Values and Commitment
UMB Financial Corporation's mission is centered around delivering an unparalleled customer experience while maintaining a commitment to community engagement and financial stewardship. The company emphasizes integrity, innovation, and excellence in service to its clients, partners, and stakeholders.
Financial Performance Overview
As of September 30, 2024, UMB Financial Corporation reported a net income of $321.2 million for the nine-month period, an increase from $279.1 million during the same period in 2023. Basic earnings per share for this period were $6.59, compared to $5.76 per share in the previous year.
Revenue Breakdown
The company's revenue sources include net interest income and noninterest income. For the three-month period ended September 30, 2024, the company reported:
| Revenue Source | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) | Change ($ thousands) | Percentage Change (%) |
|---|---|---|---|---|
| Net Interest Income | 222,287 | 200,000 | 22,287 | 11.1 |
| Noninterest Income | 158,700 | 133,317 | 25,383 | 19.1 |
Key Financial Metrics
Key financial metrics for UMB Financial Corporation as of September 30, 2024, include:
| Metric | Value |
|---|---|
| Total Assets | $47.50 billion |
| Total Loans | $24.99 billion |
| Total Deposits | $39.70 billion |
| Total Shareholders' Equity | $3.54 billion |
| Return on Average Assets | 1.01% |
| Return on Average Equity | 13.13% |
Strategic Objectives
UMB Financial Corporation focuses on several strategic objectives to achieve its mission:
- Enhancing customer experience through innovative financial solutions.
- Driving profitable growth in loans and deposits.
- Strengthening community engagement and corporate social responsibility.
- Maintaining a strong capital position to support sustainable growth.
Market Position and Future Outlook
UMB Financial Corporation continues to enhance its market position by leveraging technology and operational efficiencies. The company is also focused on expanding its product offerings and geographic reach to meet evolving customer needs.
Recent Developments
In April 2024, UMB Financial Corporation announced a merger agreement with HTLF, which is expected to enhance its market presence and operational capabilities. The merger is anticipated to close in the first quarter of 2025, pending regulatory approval.
The company remains committed to maximizing shareholder value through prudent capital management, including reinvestment in growth opportunities and a strategic approach to dividends and share repurchase programs.
How UMB Financial Corporation (UMBF) Works
Business Segments
UMB Financial Corporation operates through three primary business segments: Commercial Banking, Institutional Banking, and Personal Banking. Each segment serves distinct client bases and offers tailored financial products.
Financial Performance Overview
As of September 30, 2024, UMB Financial Corporation reported the following financial metrics:
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income | $321.2 million | $279.1 million | $42.1 million | 15.1% |
| Basic Earnings Per Share | $6.59 | $5.76 | $0.83 | 14.4% |
| Return on Average Assets | 1.01% | 0.95% | 0.06% | 6.3% |
| Return on Average Common Equity | 13.13% | 13.18% | -0.05% | -0.4% |
Net Interest Income
Net interest income for the nine-month period ended September 30, 2024, increased to $485.5 million, compared to $444.1 million in the same period of 2023, representing a growth of 9.3%.
Provision for Credit Losses
The provision for credit losses for the nine-month period ended September 30, 2024, was $34.8 million, a slight decrease of 1.0% from $35.1 million in 2023.
Noninterest Income
Noninterest income surged to $100.9 million for the nine-month period in 2024, up from $71.7 million in 2023, marking an increase of 40.8%.
Noninterest Expense
Noninterest expenses rose to $263.4 million, a 4.7% increase from $251.7 million in 2023.
Segment Performance
The financial performance by segment for the nine months ended September 30, 2024, is detailed below:
| Segment | Net Interest Income | Noninterest Income | Net Income |
|---|---|---|---|
| Commercial Banking | $485.5 million | $100.9 million | $234.5 million |
| Institutional Banking | $45.3 million | $100.7 million | $34.9 million |
| Personal Banking | $34.3 million | $27.8 million | Net Loss of $3.7 million |
Asset and Liability Composition
As of September 30, 2024, UMB Financial Corporation had the following balances:
| Category | Amount (in thousands) |
|---|---|
| Total Assets | $47,496,428 |
| Total Loans | $24,995,967 |
| Total Securities | $12,994,786 |
| Interest-Bearing Due from Banks | $6,601,866 |
| Total Deposits | $39,702,592 |
| Total Borrowed Funds | $3,458,055 |
Deposits Overview
Deposits increased by $3.9 billion, or 10.9%, from December 31, 2023, to September 30, 2024. Total interest-bearing balances rose by $3.2 billion during the same period.
Loan Portfolio Growth
Loan balances increased by $1.8 billion, or 7.8%, compared to December 31, 2023, and by $2.1 billion, or 9.2%, compared to September 30, 2023. The breakdown of loan growth includes:
- Commercial Real Estate Loans: Increased by $887.1 million, or 10.0%
- Commercial and Industrial Loans: Increased by $741.7 million, or 7.5%
- Credit Card Loans: Increased by $157.8 million, or 37.2%
Credit Quality Metrics
As of September 30, 2024, nonperforming loans totaled $19.3 million, an increase of $2.2 million from the previous year. The allowance for credit losses (ACL) as a percentage of total loans stood at 1.00%.
Strategic Initiatives
UMB Financial Corporation focuses on cross-selling fee-related services through its commercial loan portfolio and consumer banking services, which include home equity and credit card loans.
Market Position
UMB Financial Corporation remains competitive by leveraging its strong core deposit composition and enhancing its product offerings across all business segments.
How UMB Financial Corporation (UMBF) Makes Money
Revenue Sources
UMB Financial Corporation generates revenue through two primary streams: net interest income and noninterest income. As of the third quarter of 2024, net interest income was reported at $34.3 million, while noninterest income reached $158.7 million, marking significant contributions to the overall revenue.
| Revenue Source | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) | Change (in millions) |
|---|---|---|---|
| Net Interest Income | 34.3 | 30.5 | 3.8 |
| Noninterest Income | 158.7 | 133.3 | 25.4 |
Net Interest Income
Net interest income is primarily derived from the difference between interest earned on loans and interest paid on deposits. For the nine-month period ending September 30, 2024, UMB reported net interest income of $485.5 million, an increase of $41.4 million or 9.3% compared to the same period in 2023.
The growth in net interest income was driven by:
- Average loans increasing by $1.8 billion (7.8%) from December 31, 2023.
- A rise in average interest-bearing deposits contributing to the funding of earning assets.
- Increased short-term interest rates positively impacting loan yields.
Noninterest Income
Noninterest income encompasses various fee-based services that are less sensitive to interest rate fluctuations. The components of noninterest income for the nine-month period ended September 30, 2024, include:
| Noninterest Income Category | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) | Change (in millions) |
|---|---|---|---|
| Trust and Securities Processing | 74.2 | 66.7 | 7.6 |
| Trading and Investment Banking | 7.1 | 3.8 | 3.3 |
| Service Charges on Deposits | 20.1 | 21.1 | (1.0) |
| Brokerage Fees | 15.7 | 13.4 | 2.3 |
| Bankcard Fees | 22.4 | 19.3 | 3.1 |
Noninterest income for the nine-month period was $462.9 million, compared to $401.6 million for the same period in 2023, reflecting a growth of $61.3 million or 15.3%.
Provision for Credit Losses
The provision for credit losses is recorded to cover potential loan defaults. For the nine-month period ended September 30, 2024, the provision increased to $42.1 million, which includes a significant rise in commercial loans.
Specifically, the provision increased by 13.0 million for the three-month period ending September 30, 2024, compared to the same period in 2023, reflecting changes in economic conditions and loan portfolio metrics.
Operational Expenses
UMB Financial reported total noninterest expenses of $756.3 million for the nine-month period ending September 30, 2024, an increase of $11.7 million or 4.7% from the previous year. Key contributors to this increase include:
- Salaries and employee benefits: $146.0 million
- Technology, service, and overhead expenses: $85.2 million
- Bankcard expenses: $66.7 million
Balance Sheet Overview
As of September 30, 2024, UMB Financial's total assets amounted to $47.5 billion, an increase of $6.0 billion or 14.5% compared to the prior year. The growth was mainly driven by:
- An increase in loans, net of unearned interest, which totaled $25.0 billion.
- A rise in interest-bearing due from banks, amounting to $6.6 billion.
- Total deposits increased to $39.7 billion.
The overall strategy of UMB Financial Corporation focuses on enhancing net interest income through loan growth, optimizing the balance sheet, and expanding noninterest income through diverse fee-based services.
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Article updated on 8 Nov 2024
Resources:
- UMB Financial Corporation (UMBF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of UMB Financial Corporation (UMBF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View UMB Financial Corporation (UMBF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.