Unlock stock picks and a broker-level newsfeed that powers Wall Street.

UMB Financial Corp (UMBF) Q4 2024 Earnings Call Highlights: Record Operating Income and ...

In This Article:

  • Annual Operating Income: $461.7 million for 2024.

  • Net Interest Income: Surpassed $1 billion for 2024; $269 million for Q4, an 8.7% increase from Q3.

  • Fee Income: $628.1 million for 2024.

  • GAAP Earnings: $120 million for Q4, or $2.44 per share.

  • Operating Earnings: $2.49 per share for Q4.

  • Net Interest Margin: Increased by 11 basis points to 2.57% in Q4.

  • Average Loan Balances: Increased by 14.8% on a linked quarter annualized basis.

  • Net Charge-Offs: 14 basis points for Q4; 10 basis points for the full year.

  • Nonperforming Loan Ratio: 8 basis points for Q4.

  • Average Total Deposits: Grew by $2.7 billion or nearly 31% on a linked quarter annualized basis.

  • Average DDA Balances: Increased by 48% linked quarter annualized to $10.6 billion.

  • Private Wealth Net New Assets: $1.3 billion in 2024, a 75% increase over 2023.

  • Institutional Assets Under Administration: Up 18% year-over-year to $526 million.

  • Corporate Trust Assets: $42.4 billion, with a CAGR of 14% over the past 10 years.

  • HSA Accounts: Grew to more than 1.6 million accounts by the end of 2024, with a CAGR of 11% since 2014.

  • CET1 Ratio: 11.9% at the end of Q4, an increase of 7 basis points from Q3.

Release Date: January 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • UMB Financial Corp (NASDAQ:UMBF) reported a record-setting annual operating income of $461.7 million for 2024.

  • The company achieved a significant increase in net interest income, surpassing $1 billion, and fee income of $628.1 million.

  • UMB Financial Corp (NASDAQ:UMBF) experienced strong balance sheet growth, with a 14.8% linked quarter annualized increase in average loan balances.

  • The acquisition of HTLF is expected to enhance UMB Financial Corp (NASDAQ:UMBF)'s strategic, financial, and cultural fit, with anticipated benefits in 2025 and beyond.

  • The company's capital levels continue to build, with a CET1 ratio of 11.9%, reflecting a strong capital position.

Negative Points

  • Heartland's fourth-quarter results showed lower loan balances and higher levels of net charge-offs, impacting the overall financial performance.

  • There is an expectation of slowing loan growth from Heartland in 2025 due to customer wait times for conversion.

  • UMB Financial Corp (NASDAQ:UMBF) anticipates some elevated expenses in the first quarter of 2025 due to seasonal resets and integration costs.

  • The integration of Heartland may result in some noise in charge-offs as the company aligns its credit processes.

  • The company faces challenges in maintaining its loan growth momentum amidst the integration of Heartland and potential market uncertainties.