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UMB Financial Corporation Reports First Quarter 2013 Earnings of $34.9 million, or $0.88 per Share

  UMB Financial Corporation Reports First Quarter 2013 Earnings of $34.9
  million, or $0.88 per Share

Selected first quarter financial highlights:

  *Average loans increased 15.1 percent to $5.8 billion
  *Revenue from fee-based businesses represents 60.4 percent of total revenue
  *Total company assets under management increased by 14.1 percent to $35.7
    billion
  *Non-performing loans decreased slightly from 0.50 percent to 0.46 percent
    of loans
  *Tier 1 capital ratio remains strong at 10.92 percent

Business Wire

KANSAS CITY, Mo. -- April 23, 2013

UMB Financial Corporation (Nasdaq: UMBF), a diversified financial holding
company, announced earnings for the three months ended March 31, 2013 of $34.9
million or $0.88 per share ($0.87 diluted). This is a decrease of $11.4
million, or 24.6 percent, compared to first quarter 2012 earnings of $46.4
million or $1.16 per share ($1.15 diluted).

“This year marks our 100th anniversary and while the operating environment
continues to be a challenge, I could not be more pleased that UMB has stood
the test of time as a diversified financial services company,” said Mariner
Kemper, Chairman and Chief Executive Officer. “Earnings for the first quarter
of this year declined compared to the results from the same period a year ago;
however, there were two revenue items recognized in the first quarter 2012
worth examining to fully explain the difference. We recognized $5.9 million in
gains on the sale of securities available for sale this quarter compared to
$16.5 million in the first quarter 2012. Also in the first quarter of 2012, we
recognized an $8.2 million adjustment in contingent consideration liabilities
due to adoption of new accounting guidance. With these items in mind we have
started the year with positive overall results, led by strong performance in
our fee businesses. This quarter marks the company’s fifth consecutive quarter
of growth in trust and securities processing revenue, which increased 13.9
percent compared to the same period last year to reach a record $62.3 million.
On the balance sheet, average loans grew 15.1 percent and marked our twelfth
consecutive quarter of loan growth which resulted in stable net interest
income. Compared to the industry, the more than 1,400 regulated depositories
that had announced first quarter results as of April 22 reported a median
increase in loan balances of just 1.3 percent. We achieved this growth with a
continued focus on solid credit metrics and sound underwriting practices,
which we believe sets us apart from the competition.”

Net Interest Income and Margin

Net interest income for the first quarter of 2013 increased $0.4 million, or
0.5 percent, compared to the same period in 2012. Average earning assets
increased by $1.5 billion, or 11.9 percent, compared to the first quarter of
2012. This increase was due to a $764.8 million, or 12.4 percent, increase in
average total securities, including trading securities and a $762.2 million,
or 15.1 percent, increase in average loans offset by a $70.1 million decrease
in average interest bearing due from banks. Net interest margin decreased 24
basis points to 2.51 percent for the three months ended March 31, 2013,
compared to the same quarter in 2012.

Noninterest Income and Expense

Noninterest income decreased $11.3 million, or 8.5 percent, for the three
months ended March 31, 2013, compared to the same period in 2012. Gains of
$5.9 million on securities available for sale were recognized in the first
quarter of 2013 compared to $16.5 million during the same period in 2012.
Other noninterest income decreased $9.3 million, or 70.7 percent, primarily
driven by an $8.2 million adjustment in contingent consideration liabilities
on acquisitions recognized in 2012. These adjustments were due to the adoption
of new accounting guidance in 2012 related to fair value measurements. These
decreases are offset by increased trust and securities processing income of
$7.6 million, or 13.9 percent, for the three months ended March 31, 2013,
compared to the same period in 2012. The increase in trust and securities
processing income was primarily due to a $4.8 million, or 29.8 percent,
increase in advisory fee income from the Scout Funds; a $0.8 million, or 4.0
percent, increase in fund administration and custody services; and a $2.1
million, or 11.9 percent, increase in fees related to institutional and
personal investment management services.

Noninterest expense increased $8.5 million, or 6.0 percent, for the three
months ended March 31, 2013, compared to the same period in 2012. This
increase is driven by higher salary and benefits expense of $3.8 million, or
4.7 percent. This increase is due to increases in salaries and wages of $2.0
million, or 4.3 percent, a $0.7 million, or 4.6 percent, increase in
commissions and bonuses, and a $1.0 million, or 6.3 percent, increase in
employee benefits expense. Other expense increased $2.6 million, or 43.9
percent, primarily due to fair value adjustments to the contingent
consideration liabilities on acquisitions. In the first quarter of 2013, these
adjustments totaled $3.3 million compared to $1.2 million for the same period
in 2012.

“Strong fee business performance continued this quarter, and noninterest
income now accounts for 60.4 percent of our total revenue,” said Peter
deSilva, President and Chief Operating Officer. “Scout Investments experienced
record net flows of $1.6 billion for an overall flow rate of 6.1 percent for
the quarter, bringing total Scout assets under management to $25.7 billion. In
our Payment Solutions segment, total debit and credit card purchase volume
increased by 13.2 percent to $1.8 billion. Healthcare Services surpassed $600
million in Health Savings Account balances, a 47 percent increase over the
first quarter of 2012, while spending on healthcare debit cards increased by
nearly 30 percent to $881 million. Fund Services closed the quarter with
$165.4 billion in assets under administration. We are pleased that these
businesses have performed so well. They are an important part of our strategy
to offset margin compression and differentiate us from our peers and the
competition.”

Balance Sheet

Average total assets for the three months ended March 31, 2013 were $14.8
billion compared to $13.3 billion for the same period in 2012, an increase of
$1.5 billion, or 11.2 percent. Average earning assets increased by $1.5
billion for the period, or 11.9 percent.

Average loan balances for the three months ended March 31, 2013 increased
$762.2 million, or 15.1 percent, to $5.8 billion compared to the same period
in 2012. Actual loan balances on March 31, 2013 were $6.0 billion, an increase
of $865.9 million, or 16.8 percent, compared to March 31, 2012. This increase
was primarily driven by an increase in commercial loans of $710.6 million, or
28.7 percent.

Nonperforming loans increased to $27.6 million on March 31, 2013 from $25.7
million on March 31, 2012. As a percentage of loans, nonperforming loans
decreased to 0.46 percent as of March 31, 2013, compared to 0.50 percent on
March 31, 2012. Nonperforming loans are defined as nonaccrual loans and
restructured loans. The company’s allowance for loan losses totaled $69.9
million, or 1.16 percent of loans, as of March 31, 2013, compared to $73.5
million, or 1.43 percent of loans, as of March 31, 2012.

For the three months ended March 31, 2013, average securities, including
trading securities, totaled $6.9 billion. This is an increase of $764.8
million, or 12.4 percent, from the same period in 2012.

Average total deposits increased $1.3 billion, or 13.0 percent, to $11.6
billion for the three months ended March 31, 2013, compared to the same period
in 2012. Average noninterest-bearing demand deposits increased $641.5 million,
or 16.1 percent, compared to 2012. Average interest-bearing deposits increased
by $701.3 million, or 11.1 percent, in 2013 as compared to 2012. Total
deposits as of March 31, 2013 were $12.6 billion, compared to $10.7 billion as
of March 31, 2012, a 16.9 percent increase. Also, as of March 31, 2013,
noninterest-bearing demand deposits were 44.6 percent of total deposits.

“We are very pleased to maintain flat net interest income at a time when low
rates persist and margin compression plagues the industry. During the quarter,
we experienced an 11.9 percent increase in average earning assets due to
nearly equal growth in our investment and loan portfolios,” said Mike
Hagedorn, Chief Financial Officer. “While volume helps offset the reduction in
net interest income, we’re not content with earning asset growth alone. We’re
focused on shifting the earning  asset mix to further alleviate the effect of
margin compression. Since we expect the challenging low interest rate
environment to continue, we remain focused on two important objectives: a
balanced approach to optimize current net interest income and a nimble
position to improve overall earning asset yield when interest rates rise.”

As of March 31, 2013, UMB had total shareholders’ equity of $1.3 billion, an
increase of 6.0 percent as compared to the same period in 2012.

Universal Shelf Registration

On April 23, 2013, UMB filed a shelf registration statement on Form S-3 with
the Securities and Exchange Commission (SEC). This registration statement,
when declared effective by the SEC, will allow the company to issue common
stock, preferred stock, depository shares, warrants or debt securities.
Although we currently have no specific plans to offer additional securities,
the shelf registration continues to provide capital flexibility in the event
an opportunity should arise. Proceeds from any sale of securities will be used
for general business purposes.

Conference Call

The company plans to host a conference call to discuss its 2013 first quarter
earnings results on April 24, 2013, at 8:30 a.m. (CDT). Interested parties may
access the call by dialing (toll-free) 877-941-9205 or (U.S.) 480-629-9771.
The live call can also be accessed by visiting the investor relations area of
umb.com or by using the following the link:

http://event.on24.com/r.htm?e=605890&s=1&k=3B0116AFD6DF9C5AC6E9F40BCC159D71

A replay of the conference call may be heard until May 8, 2013 by calling
(toll-free) 800-406-7325 or (U.S.) 303-590-3030. The replay pass code required
for playback is conference identification number 4612395. The call replay may
also be accessed via the company's website, umb.com, by visiting the investor
relations area.

Investor Day

The company will host its 2013 Investor Day for invited analysts and
shareholders on April 25, 2013, at the Nasdaq MarketSite in New York. The
company will also preside over the Nasdaq Stock Market opening bell prior to
the event. Mariner Kemper, Chairman and CEO, and members of the company’s
senior leadership team will make presentations beginning at 10:30 a.m. EDT.

Forward-Looking Statements:

This release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act
of 1934, and within the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements rely on a number of assumptions
concerning future events and are subject to risks and uncertainties, which
could cause actual results to differ materially from those contemplated by the
forward-looking statements in this Current Report on Form 8-K, any exhibits to
this Current Report and other public statements the company may make. While
management of UMB believes their assumptions are reasonable, UMB cautions that
changes in interest rates, changes in general economic conditions, changes in
the securities markets, legislative or regulatory changes, changes in
operations, changes in competition, technology changes, the ability of
customers to repay loans, changes in loan demand, increases in employee costs,
its ability to integrate acquisitions and other risks and uncertainties
detailed in UMB’s filings with the Securities and Exchange Commission, may
cause actual results to differ materially from those discussed in this
release. UMB has no duty to update such statements, and undertakes no
obligation to update or supplement forward-looking statements that become
untrue because of new information, future events or otherwise.

About UMB:

UMB Financial Corporation (Nasdaq: UMBF) is a financial services holding
company headquartered in Kansas City, Mo., offering complete banking, payment
solutions, asset servicing and institutional investment management to
customers. UMB operates banking and wealth management centers throughout
Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and Arizona. It also
has a loan production office in Texas. Subsidiaries of the holding company
include mutual fund and alternative investment services groups, single-purpose
companies that deal with brokerage services and insurance, and a registered
investment advisor that manages the company's proprietary mutual funds and
investment advisory accounts for institutional customers. For more
information, visit umb.com or follow us on Twitter at @UMBBank, Facebook at
facebook.com/UMBBank and LinkedIn at linkedin.com/company/umb-bank.

                                          
CONSOLIDATED BALANCE SHEETS                 UMB Financial Corporation
(unaudited, dollars in thousands)                            
                                               March 31,
Assets                                        2013            2012       
                                                                  
Loans                                        $ 6,010,681        $ 5,144,766
Allowance for loan losses                     (69,881    )    (73,486    )
Net loans                                     5,940,800      5,071,280  
Loans held for sale                            6,305              10,162
Investment securities:
Available for sale                             6,841,584          6,200,456
Held to maturity                               129,498            96,882
Trading securities                             72,588             68,696
Federal Reserve Bank Stock and other          26,127         21,882     
Total investment securities                   7,069,797      6,387,916  
Federal funds and resell agreements            19,046             9,663
Interest-bearing due from banks                1,631,163          1,058,284
Cash and due from banks                        319,535            403,575
Bank premises and equipment, net               244,678            227,910
Accrued income                                 70,510             73,943
Goodwill                                       209,758            211,114
Other intangibles                              65,348             80,337
Other assets                                  128,530        106,973    
Total assets                                 $ 15,705,470    $ 13,641,157 
                                                                  
                                                                  
Liabilities
Deposits:
Noninterest-bearing demand                   $ 5,597,601        $ 4,305,742
Interest-bearing demand and savings            5,895,219          5,168,454
Time deposits under $100,000                   525,174            590,214
Time deposits of $100,000 or more             541,464        683,583    
Total deposits                                12,559,458     10,747,993 
Federal funds and repurchase agreements        1,659,343          1,502,705
Short-term debt                                415                10,000
Long-term debt                                 4,393              5,423
Accrued expenses and taxes                     152,114            148,199
Other liabilities                             44,189         14,166     
Total liabilities                             14,419,912     12,428,486 
                                                                  
Shareholders' Equity
Common stock                                   55,057             55,057
Capital surplus                                732,209            722,977
Retained earnings                              813,245            735,978
Accumulated other comprehensive income         63,572             63,868
Treasury stock                                (378,525   )    (365,209   )
Total shareholders' equity                    1,285,558      1,212,671  
Total liabilities and shareholders'          $ 15,705,470    $ 13,641,157 
equity
                                                                             

                                              
Consolidated Statements of Income               UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
                                                   Three Months Ended
                                                   March 31,
Interest Income                                   2013          2012
Loans                                            $ 54,720       $ 54,055
Securities:
Taxable interest                                   18,465           20,129
Tax-exempt interest                               9,760         9,375
Total securities income                            28,225           29,504
Federal funds and resell agreements                24               16
Interest-bearing due from banks                    669              835
Trading securities                                264           323
Total interest income                             83,902        84,733
                                                                    
Interest Expense
Deposits                                           3,792            4,988
Federal funds and repurchase agreements            567              439
Other                                             60            217
Total interest expense                            4,419         5,644
Net interest income                                79,483           79,089
Provision for loan losses                         2,000         4,500
Net interest income after provision for loan      77,483        74,589
losses
                                                                    
Noninterest Income
Trust and securities processing                    62,312           54,710
Trading and investment banking                     7,109            9,678
Service charges on deposits                        21,523           20,011
Insurance fees and commissions                     961              1,009
Brokerage fees                                     2,946            2,514
Bankcard fees                                      16,439           14,735
Gains on sale of available for sale                5,893            16,541
securities, net
Other                                             3,833         13,103
Total noninterest income                          121,016       132,301
                                                                    
Noninterest Expense
Salaries and employee benefits                     83,702           79,914
Occupancy, net                                     9,887            9,278
Equipment                                          11,934           10,665
Supplies and services                              4,487            5,043
Marketing and business development                 4,272            4,260
Processing fees                                    14,090           12,816
Legal and consulting                               3,600            3,515
Bankcard                                           4,547            4,242
Amortization of intangible assets                  3,456            3,852
Regulatory fees                                    1,911            2,419
Other                                             8,492         5,900
Total noninterest expense                          150,378          141,904
                                                                    
Income before income taxes                         48,121           64,986
Income tax provision                              13,180        18,619
Net income                                       $ 34,941       $ 46,367
                                                                    
Per Share Data
Net income - basic                               $ 0.88           $ 1.16
Net income – diluted                               0.87             1.15
Dividends                                          0.215            0.205
Weighted average shares outstanding                39,881,505       40,025,456
                                                                    

                                                
Statements of Consolidated Comprehensive         UMB Financial Corporation
Income
(unaudited, dollars in thousands, except per
share data)
                                                   Three Months Ended

                                                   March 31,
                                                   2013          2012
Net Income                                         $ 34,941      $ 46,367
Other comprehensive income, net of tax:
Unrealized gains on securities:
Change in unrealized holding gains, net              (27,048 )       (10,616 )
Less: Reclassifications adjustment for gains        (5,893  )    (16,541 )
included in net income
Change in unrealized gains on securities           $ (32,941 )     $ (27,157 )
during the period
Income tax benefit                                  10,925      9,926   
Other comprehensive loss                           $ (22,016 )   $ (17,231 )
Comprehensive income                               $ 12,925     $ 29,136  
                                                                     


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     Income           Stock         Total
Balance -
January 1,        $ 55,057     $ 723,299       $ 697,923       $ 81,099            $ (366,246 )     $ 1,191,132
2012
Total
Comprehensive                                    46,367          (17,231    )                         29,136
income
Cash
dividends           -            -               (8,312  )       -                   -                (8,312    )
($0.205 per
share)
Purchase of
treasury            -            -               -               -                   (2,666   )       (2,666    )
stock
Issuance of         -            (2,737  )       -               -                   2,982            245
equity awards
Recognition
of equity           -            1,712           -               -                   -                1,712
based
compensation
Net tax
benefit
related to          -            84              -               -                   -                84
equity
compensation
plans
Sale of
treasury            -            105             -               -                   102              207
stock
Exercise of        -         514         -           -               619          1,133     
stock options
Balance –
March 31,         $ 55,057   $ 722,977    $ 735,978    $ 63,868         $ (365,209 )   $ 1,212,671 
2012
                                                                                                      
Balance -
January 1,        $ 55,057     $ 732,069       $ 787,015       $ 85,588            $ (380,384 )     $ 1,279,345
2013
Total
Comprehensive                                    34,941          (22,016    )                         12,925
income
Cash
dividends           -            -               (8,711  )       -                   -                (8,711    )
($0.215 per
share)
Purchase of
treasury            -            -               -               -                   (1,656   )       (1,656    )
stock
Issuance of         -            (2,592  )       -               -                   3,041            449
equity awards
Recognition
of equity           -            1,913           -               -                   -                1,913
based
compensation
Net tax
benefit
related to          -            332             -               -                   -                332
equity
compensation
plans
Sale of
treasury            -            42              -               -                   24               66
stock
Exercise of        -         445         -           -               450          895       
stock options
Balance –
March 31,         $ 55,057   $ 732,209    $ 813,245    $ 63,572         $ (378,525 )   $ 1,285,558 
2013
                                                                                                      

                                   
Average Balances /                          UMB Financial Corporation
Yields and Rates
(tax - equivalent                                                  
basis)
(unaudited, dollars       Three Months Ended March 31,
in thousands)
                         2013                         2012
                          Average      Average            Average      Average
Assets                   Balance     Yield/Rate     Balance     Yield/Rate 
Loans, net of           $ 5,814,855    3.82       %     $ 5,052,663    4.31       %
unearned interest
Securities:
Taxable                   4,871,926    1.54               4,342,151    1.86
Tax-exempt                1,994,620   3.07               1,764,958   3.25
Total securities          6,866,546    1.98               6,107,109    2.26
Federal funds and         19,140       0.51               19,532       0.33
resell agreements
Interest-bearing          972,962      0.28               1,043,014    0.32
due from banks
Trading securities        57,565      2.09               52,193      2.64
Total earning             13,731,068   2.64               12,274,511   2.94
assets
Allowance for loan        (71,504)                        (72,395)
losses
Other assets             1,123,453                      1,095,799
Total assets            $ 14,783,017                    $ 13,297,915
                                                                                  
                                                                                  
Liabilities and
Shareholders'
Equity
Interest-bearing        $ 7,018,471    0.22       %     $ 6,317,146    0.32       %
deposits
Federal funds and
repurchase                1,673,062    0.14               1,572,427    0.11
agreements
Borrowed funds            5,392       4.51               16,934      5.15
Total
interest-bearing          8,696,925    0.21               7,906,507    0.29
liabilities
Noninterest-bearing       4,626,556                       3,985,085
demand deposits
Other liabilities         177,139                         192,769
Shareholders'            1,282,397                      1,213,554
equity
Total liabilities
and shareholders'       $ 14,783,017                    $ 13,297,915
equity
Net interest spread                    2.43       %                    2.65       %
Net interest margin                    2.51                            2.75
                                                                                  

                                                      
FIRST QUARTER 2013
FINANCIAL HIGHLIGHTS                    UMB Financial Corporation
(unaudited, dollars in thousands, except share and per share data)
                                                                       
Three Months Ended March 31               2013          2012       
Net interest income                      $ 79,483         $ 79,089
Provision for loan losses                  2,000            4,500
Noninterest income                         121,016          132,301
Noninterest expense                        150,378          141,904
Income before income taxes                 48,121           64,986
Net income                                 34,941           46,367
Net income per share - Basic               0.88             1.16
Net income per share - Diluted             0.87             1.15
Return on average assets                   0.96       %     1.40       %
Return on average equity                   11.05      %     15.37      %
                                                                       
At March 31
Assets                                   $ 15,705,470     $ 13,641,157
Loans, net of unearned interest            6,010,681        5,144,766
Securities                                 7,069,797        6,387,916
Deposits                                   12,559,458       10,747,993
Shareholders' equity                       1,285,558        1,212,671
Book value per share                       31.73            29.90
Market price per share                     49.07            44.74
Equity to assets                           8.19       %     8.89       %
Allowance for loan losses                $ 69,881         $ 73,486
As a % of loans                            1.16       %     1.43       %
Nonaccrual and restructured loans        $ 27,580         $ 25,722
As a % of loans                            0.46       %     0.50       %
Loans over 90 days past due              $ 5,756          $ 4,926
As a % of loans                            0.10       %     0.10       %
Other real estate owned                  $ 3,565          $ 5,646
Net loan charge-offs quarter-to-date     $ 3,545          $ 3,031
As a % of average loans                    0.25       %     0.24       %
                                                                       
Common shares outstanding                  40,520,464       40,563,322
                                                                       
Average Balances
Three Months Ended March 31
Assets                                   $ 14,783,017     $ 13,297,916
Loans, net of unearned interest            5,814,855        5,052,663
Securities                                 6,924,111        6,159,302
Deposits                                   11,645,027       10,302,231
Shareholders' equity                       1,282,397        1,213,554
                                                                       

                                         
Business Segment Information             UMB Financial Corporation
(unaudited, dollars in thousands)                                               
              Three Months Ended March 31, 2013
                                 Payment         Institutional     Asset
                Bank           Solutions     Investment      Servicing      Total
                                                 Management
Net
interest        $ 67,260       $ 11,548      $    -          $ 675           $ 79,483
income
Provision
for loan          257              1,743              -              -               2,000
losses
Noninterest       52,748           19,437             28,553         20,278          121,016
income
Noninterest      91,437        20,051          18,958      19,932       150,378
expense
Income
before            28,314           9,191              9,595          1,021           48,121
taxes
Income tax       7,181         2,786           2,635       578          13,180
expense
Net income      $ 21,133       $ 6,405       $    6,960      $ 443         $ 34,941
                                                                                     
Average         $ 11,733,000     $ 1,264,000     $    78,000       $ 1,708,000     $ 14,783,000
assets
                                                                                     
                                                                                     
                Three Months Ended March 31, 2012
                                 Payment         Institutional     Asset
                Bank           Solutions     Investment      Servicing      Total
                                                 Management
Net
interest        $ 67,970         $ 10,724        $    3            $ 392           $ 79,089
income
Provision
for loan          1,835            2,665              -              -               4,500
losses
Noninterest       69,928           16,098             26,126         20,149          132,301
income
Noninterest      93,119        14,809          17,183      16,793       141,904
expense
Income
before            42,944           9,348              8,946          3,748           64,986
taxes
Income tax       11,605        2,916           2,572       1,526        18,619
expense
Net income      $ 31,339       $ 6,432       $    6,374      $ 2,222       $ 46,367
                                                                                     
Average         $ 11,341,000     $ 846,000       $    83,000       $ 1,028,000     $ 13,298,000
assets

Contact:

UMB Financial Corporation
Media Contact:
Kelli Christman: 816-860-5088
or
Investor Relations Contact:
Kay McMillan, 816-860-7106