UMB Financial Corp (UMBF) Q2 2024 Earnings Call Highlights: Strong Net Interest Income and ...

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GAAP Earnings: $101.3 million or $2.07 per share. Operating Earnings: $105.9 million or $2.16 per share. Net Interest Income: $245.1 million, an increase of $5.7 million or 2.4%. Net Interest Margin: ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUMB Financial Corp (UMBF) Q2 2024 Earnings Call Highlights: Strong Net Interest Income and ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-10 03:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/umb-financial-corp-umbf-q2-193326225.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>GAAP Earnings: $101.3 million or $2.07 per share.\nOperating Earnings: $105.9 million or $2.16 per share.\nNet Interest Income: $245.1 million, an increase of $5.7 million or 2.4%.\nNet Interest Margin: ...</p>\n\n<a href=\"https://finance.yahoo.com/news/umb-financial-corp-umbf-q2-193326225.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"UMBF","symbol_name":"UMB金融","start_time":0,"source_url":"https://finance.yahoo.com/news/umb-financial-corp-umbf-q2-193326225.html","article_id":"2474320621","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/IykaJdwg4TO2HGxZKI3hVA--~B/aD0xODA7dz0xODA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/259e69142c23fd7a3c48ae1c15c21215"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2474320621","pubTimestamp":1728502406,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"GAAP Earnings: $101.3 million or $2.07 per share.Net Interest Income: $245.1 million, an increase of $5.7 million or 2.4%.Net Interest Margin: Increased 3 basis points to 2.51%.Average Loan Balances Growth: 7.7% linked-quarter annualized increase.Top Line Loan Production: $926 million for the quarter.Net Charge-Offs: 5 basis points of average loans.Non-Performing Loans: 6 basis points of total loans.Coverage Ratio: Increased 3 basis points to 0.99% of total loans.Average Total Deposits Growth: $815 million or 9.7% linked-quarter annualized increase.Noninterest Income: $144.9 million, a linked-quarter reduction of 9%.Noninterest Expense: $249.1 million, including $9.6 million in acquisition expenses.GuruFocus has detected 5 Warning Sign with UMBF.For the complete transcript of the earnings call, please refer to the full earnings call transcript.UMB Financial Corp  reported strong net interest income growth driven by a growing balance sheet and net interest margin expansion.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"UMBF":"UMB金融"},"translate_title":"UMB Financial Corp(UMBF)2024年第二季度收益看涨期权亮点：强劲的净利息收入和……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"UMBF":1},"content_text":"GAAP Earnings: $101.3 million or $2.07 per share.\nOperating Earnings: $105.9 million or $2.16 per share.\nNet Interest Income: $245.1 million, an increase of $5.7 million or 2.4%.\nNet Interest Margin: Increased 3 basis points to 2.51%.\nAverage Loan Balances Growth: 7.7% linked-quarter annualized increase.\nAverage Card Balances Growth: Increased 26.1%.\nTop Line Loan Production: $926 million for the quarter.\nNet Charge-Offs: 5 basis points of average loans.\nNon-Performing Loans: 6 basis points of total loans.\nProvisions: $14.1 million.\nCoverage Ratio: Increased 3 basis points to 0.99% of total loans.\nAverage Total Deposits Growth: $815 million or 9.7% linked-quarter annualized increase.\nNoninterest Income: $144.9 million, a linked-quarter reduction of 9%.\nNoninterest Expense: $249.1 million, including $9.6 million in acquisition expenses.\nEffective Tax Rate: 20.1% for the quarter.\n\n\nWarning! GuruFocus has detected 5 Warning Sign with UMBF.\n\nRelease Date: July 31, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nUMB Financial Corp (NASDAQ:UMBF) reported strong net interest income growth driven by a growing balance sheet and net interest margin expansion.\nThe company achieved GAAP earnings of $101.3 million or $2.07 per share, with operating earnings at $105.9 million or $2.16 per share.\nCredit quality remains excellent with net charge-offs at just 5 basis points of average loans and non-performing loans at 6 basis points of total loans.\nAverage total deposits grew by $815 million or 9.7% on a linked-quarter annualized basis, showcasing a strong diversified funding profile.\nThe pending acquisition of Heartland Financial is expected to accelerate UMB's growth strategy, further diversifying and derisking the business model.\n\n Negative Points \n\nNoninterest income saw a linked-quarter reduction of 9% due to non-recurring items in the prior quarter.\nThe company faced a provision of $14.1 million reflecting continued loan growth and model recalibration impacts.\nNoninterest expense increased by $2 million linked quarter, driven by higher processing fees and increased bank card expenses.\nThe effective tax rate increased to 20.1% for the quarter compared to 18.1% in the second quarter of 2023.\nThe integration of Heartland Financial involves complexities, including managing multiple smaller institutions, which could pose near-term risks.\n\n Q & A Highlights \nQ: Regarding the pending acquisition of Heartland Financial, are there any anticipated changes in brokered deposits or securities restructuring as we approach closing? A: Ram Shankar, CFO, stated that they do not expect any asset-side restructuring on their investment portfolio. They will evaluate brokered CDs and FHLB advances as they come up for renewal, likely letting them run off based on their loan-to-deposit ratio and liquidity levels.\nQ: Can you provide insights into the trajectory of DDA balances for the rest of the year? A: J. Mariner Kemper, CEO, mentioned that they feel they are at the bottom of the rotation cycle, with most of the rotation having taken place early in the cycle. Ram Shankar added that end-of-period DDA balances can be volatile and should not be heavily relied upon for predictions.\nQ: What happened with criticized and classified loans this quarter, and what drove the CECL model change? A: Thomas Terry, Chief Credit Officer, noted that criticized and classified loans were flat quarter-over-quarter. Ram Shankar explained that the CECL model change was due to a recalibration of macroeconomic variables, not underlying portfolio trends, resulting in a higher provision.\nQ: How do you view the potential impact of the Heartland acquisition on your net interest margin (NIM)? A: Ram Shankar indicated that it is difficult to predict the pro forma margin due to purchase accounting adjustments. However, J. Mariner Kemper highlighted that Heartland's higher margin, due to a smaller business book of loans and a more granular deposit base, is a strategic reason for the acquisition.\nQ: What are the expectations for loan growth in the upcoming quarters? A: J. Mariner Kemper stated that they expect a strong third quarter with growth across all segments, driven by existing commitments in commercial real estate and new business in multifamily and industrial sectors.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2474320621"}