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UMB Financial Corp. UMBF reported fourth-quarter 2024 operating earnings per share of $2.49, which beat the Zacks Consensus Estimate of $2.30. Also, the bottom line compared favorably with the $2.29 earned in the year-ago quarter.
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Results benefited from higher net interest income (NII) and non-interest income. Rising loan and deposit balances were other positives. However, worsening credit quality acted as a spoilsport.
Net income (GAAP basis) for UMBF was $119.9 million for the fourth quarter, up 69.2% year over year.
In 2024, operating earnings of $12.75 per share topped the consensus estimate of $9.23. However, the metric rose from $10.76 in 2023. Net income was $441.2 million in 2024, up 26% from the prior year.
UMB Financial’s Revenues & Expenses
Quarterly revenues were $440.5 million, up 16.7% year over year. Also, the top line beat the Zacks Consensus Estimate by 6.4%.
For 2024, revenue was $1.65 billion, which topped the Zacks Consensus Estimate of $1.62 billion. Also, the top line rose 10.7% year over year.
Fourth quarter NII on an FTE basis was $275.3 million, which increased 16.1% from the prior-year quarter. On an FTE basis, the net interest margin (NIM) was 2.57%, up from 2.46% in the prior-year quarter.
Non-interest income was $165.2 million, up 17.8% year over year. The rise was primarily driven by an increase in almost all components of fee income, except for service charges on deposit accounts.
Non-interest expenses were $270.4 million, down 6.8% year over year. The decline was due to a decrease of $53.9 million in regulatory fees expenses and a drop of $2.4 million in operational losses, recorded in other expenses. Operating non-interest expenses (adjusted basis) were $267.3 million, up 13.3% year over year.
The efficiency ratio was 61.83%, down from the prior-year quarter’s 77.65%. A decline in the efficiency ratio indicates an increase in profitability.
UMBF’s Loans & Deposit Balances
As of Dec. 31, 2024, average loans and leases were $25.3 billion, up 3.7% sequentially. Also, average deposits increased 7.7% to $38.1 billion.
UMB Financial’s Credit Quality
The ratio of net charge-offs to average loans was 0.14% in the reported quarter, up from 0.02% in the prior-year quarter.
Total non-accrual and restructured loans were $19.3 million, up 45.9% year over year.
The provision for credit losses was $19 million for the fourth quarter of 2024. No provision for credit losses was reported in the year-ago quarter.
UMBF’s Capital Ratios
As of Dec. 31, 2024, the Tier 1 risk-based capital ratio was 11.29%, which rose from 10.94% as of Dec. 31, 2023. The Tier 1 leverage ratio was 8.50%, which increased from 8.49% as of Dec. 31, 2023. The total risk-based capital ratio was 13.21%, which grew from 12.85% in the year-ago quarter.