UMB Financial Corp (UMBF) Q2 2024 Earnings: EPS of $2.07, Revenue of $390.03 Million Beats Estimates

Strong Loan and Deposit Growth Amidst Challenging Environment

Summary
  • GAAP Net Income: $101.3 million, or $2.07 per diluted share, compared to $90.1 million, or $1.85 per diluted share, in Q2 2023.
  • Revenue: $390.03 million, surpassing analyst estimates of $384.94 million.
  • Average Loans: Increased 7.3% year-over-year to $23.8 billion.
  • Net Interest Margin: Improved to 2.51%, up three basis points from the previous quarter.
  • Credit Quality: Net charge-offs remained low at 0.05% of average loans.
  • Average Deposits: Increased 9.1% year-over-year to $34.3 billion.
  • Noninterest Income: Increased 5.0% year-over-year to $144.9 million.
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On July 30, 2024, UMB Financial Corp (UMBF, Financial) released its 8-K filing detailing its financial performance for the second quarter of 2024. UMB Financial Corp, or UMBF, is a financial services holding company offering a suite of banking, asset management, and health spending solutions. Its customer base includes commercial, institutional, and personal customers across the United States. The company's banking subsidiaries own and operate banking and wealth-management centers mostly throughout the Midwest and Southwest regions of the U.S.

Performance Overview

UMB Financial Corp (UMBF, Financial) reported a GAAP net income of $101.3 million, or $2.07 per diluted share, for Q2 2024. This compares to $110.3 million, or $2.25 per diluted share, in the previous quarter and $90.1 million, or $1.85 per diluted share, in Q2 2023. The net operating income, a non-GAAP measure, was $105.9 million, or $2.16 per diluted share, compared to $120.7 million, or $2.47 per diluted share, in the previous quarter and $93.8 million, or $1.93 per diluted share, in Q2 2023.

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Key Financial Metrics

Metric Q2 2024 Q1 2024 Q2 2023
Net Income (GAAP) $101.3 million $110.3 million $90.1 million
Earnings per Share (GAAP) $2.07 $2.25 $1.85
Net Operating Income (Non-GAAP) $105.9 million $120.7 million $93.8 million
Operating Earnings per Share (Non-GAAP) $2.16 $2.47 $1.93
Net Interest Margin 2.51% 2.48% 2.44%

Loan and Deposit Growth

Average loans increased by 7.7% on a linked-quarter, annualized basis, reaching $23.8 billion. This represents a 7.3% increase compared to the same quarter last year. Average deposits also saw a significant rise, increasing by 9.7% on a linked-quarter, annualized basis, to $34.3 billion. The net interest margin improved slightly to 2.51%, up three basis points from the previous quarter.

Credit Quality and Noninterest Income

Credit quality remained robust, with net charge-offs at just 0.05% of average loans for both the second quarter and the first half of 2024. Noninterest income for Q2 2024 was $144.9 million, a decrease of $14.3 million from the previous quarter but an increase of $6.8 million compared to Q2 2023. The decrease from the previous quarter was primarily due to lower investment securities gains and a reduction in other miscellaneous income.

Noninterest Expense

GAAP noninterest expense for Q2 2024 was $249.1 million, a decrease of $5.7 million from the previous quarter but an increase of $8.4 million compared to Q2 2023. The decrease from the previous quarter was driven by a reduction in regulatory fees, partially offset by increases in legal and consulting expenses related to the announced acquisition of Heartland Financial USA, Inc.

Commentary

“We are pleased with our second quarter financial results, including continued net interest income growth driven by balance sheet growth and net interest margin expansion, and solid credit metrics,” said Mariner Kemper, UMB Financial Corporation chairman and chief executive officer.

Conclusion

UMB Financial Corp (UMBF, Financial) has demonstrated strong financial performance in Q2 2024, with significant growth in loans and deposits, improved net interest margin, and robust credit quality. Despite some challenges in noninterest income and expenses, the company continues to show resilience and strategic growth, positioning itself well for future opportunities.

Explore the complete 8-K earnings release (here) from UMB Financial Corp for further details.