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UMB Financial Corp. Reports Operating Results (10-Q)

November 01, 2012 | About:
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10qk

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UMB Financial Corp. (UMBF) filed Quarterly Report for the period ended 2012-09-30.

Umb Financial Corporation has a market cap of $1.79 billion; its shares were traded at around $44.75 with a P/E ratio of 14.3 and P/S ratio of 2.4. The dividend yield of Umb Financial Corporation stocks is 1.9%. Umb Financial Corporation had an annual average earning growth of 5.9% over the past 10 years. GuruFocus rated Umb Financial Corporation the business predictability rank of 2.5-star.

Highlight of Business Operations:

For the nine months ended September 30, 2012, proceeds from the sales of securities available for sale were $991.8 million compared to $991.0 million for the same period in 2011. Securities transactions resulted in gross realized gains of $20.3 million and $16.0 million for the nine months ended September 30, 2012 and 2011. The gross realized losses for the nine months ended September 30, 2012 and 2011 were $342.0 thousand and $70.0 thousand, respectively.

The second strategy is a focus on net interest income through loan and deposit growth. This is not just a growth strategy but includes a focus on rate, volume and mix. Net interest income increased $1.3 million, or 1.6 percent, compared to the same period in 2011. Average earning assets increased by $987.9 million, or 8.9 percent, compared to the third quarter of 2011. This increase was due to an $831.4 million, or 14.5 percent, increase in average total securities, including trading securities and a $502.9 million, or 10.5 percent, increase in average loans. Average total deposits increased $917.9 million, or 9.7 percent, compared to third quarter of 2011, which positions the Company well to fund customer credit needs as the demand for loans increases.

The Company recorded consolidated net income of $26.1 million for the three-month period ended September 30, 2012, compared to $26.0 million for the same period a year earlier. This represents a 0.4 percent increase over the three-month period ended September 30, 2011. Basic earnings per share for the third quarter of 2012 were $0.65 per share ($0.64 per share fully-diluted) compared to $0.65 per share ($0.64 per share fully-diluted) for the third quarter of 2011. Return on average assets and return on average common shareholders equity for the three-month period ended September 30, 2012 were 0.79 and 8.12 percent, respectively, compared to 0.85 and 8.81 percent for the three-month period ended September 30, 2011.

The Company recorded consolidated net income of $101.7 million for the nine-month period ended September 30, 2012, compared to $83.2 million for the same period a year earlier. This represents a 22.2 percent increase over the nine-month period ended September 30, 2011. Basic earnings per share for the nine-month period ended September 30, 2012 were $2.54 per share ($2.51 per share fully-diluted) compared to $2.08 per share ($2.06 per share fully-diluted) for the period in 2011. Return on average assets and return on average common shareholders equity for the nine-month period ended September 30, 2012 were 1.03 and 10.90 percent, respectively, compared to 0.90 and 9.89 percent for the same period in 2011.

Net interest income for the three and nine-month periods ended September 30, 2012 increased $1.3 million, or 1.6 percent, and $2.4 million, or 1.0 percent, respectively, compared to the same period in 2011. These increases are primarily due to the reduced level of interest expense on deposits, which outpaced the reduced level of interest income. For the three-month period ended September 30, 2012, average earning assets increased by $987.9 million, or 8.9 percent, and for the nine-month period ended September 30, 2012, they increased by $834.8 million, or 7.4 percent, compared to the same periods in 2011. Net interest margin, on a tax-equivalent basis, decreased to 2.80 percent and 2.79 percent for the three and nine-months periods ended September 30, 2012, compared to 2.98 percent and 2.95 percent for the same periods in 2011. These changes are discussed in greater detail below under Net Interest Income.

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