<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1994
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from __________ to __________
Commission file number 0-4887
UMB FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Missouri 43-0903811
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1010 Grand Avenue, Kansas City, MO 64106
(address of principal executive offices and Zip Code)
(816) 860-7000
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes x No
_________ _________
At March 31, 1994, UMB Financial Corporation had 17,537,919
shares of common stock outstanding. This is the only class of stock of the
Company.
<PAGE>
UMB FINANCIAL CORPORATION
FORM 10-Q
INDEX
PART I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheet
as of March 31, 1994 and 1993 and December 31, 1993........ 3
Consolidated Statement of Income for the Three Months
Ended March 31, 1994 and 1993............................. 4
Consolidated Statement of Cash Flows
for the Three Months Ended March 31, 1994 and 1993......... 5
Consolidated Statement of Shareholders' Equity
for the Three Months Ended March 31, 1994 and 1993......... 6
Notes to Consolidated Financial Statements................... 7-9
Supplemental Financial Data
Average Balances/Yields and Rates.......................... 10
Analysis of Changes in Net Interest Income and Margin...... 11
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations........................ 12-13
PART II. Other Information
Item 6. Exhibits and Reports on Form 8-K............................. 14
Signatures................................................... 15
<PAGE>
UMB FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEET
(in thousands)
<TABLE>
<CAPTION>
March 31, December 31,
1994 1993 1993
ASSETS
Loans:
<S> <C> <C> <C>
Commercial, financial and agricultural $1,097,328 $ 815,010 $1,103,306
Consumer (net of unearned interest) 578,200 421,370 588,671
Real estate 454,221 247,487 466,157
Leases 973 1,653 1,627
Allowance for loan losses (35,377) (24,757) (35,590)
_________ _________ _________
Net loans $2,095,345 $1,460,763 $2,124,171
Securities available for sale:
U.S. Treasury and agencies $2,509,943 $2,172,259 $2,615,783
Mortgage-backed securities 62,238 - 73,472
Equity securities and other 11,216 7,454 10,957
_________ _________ _________
Total securities available for sale
(market value of March, 1993
$2,216,570) $2,583,397 $2,179,713 $2,700,212
Investment securities:
State and political subdivisions $ 283,189 $ 213,390 $ 278,944
Mortgage-backed securities 86,140 - -
_________ _________ _________
Total investment securities (market
value of $369,388, $217,842
and $282,346 respectively) $ 369,329 $ 213,390 $ 278,944
Federal funds and resell agreements 311,684 220,245 339,175
Trading securities 75,944 35,619 83,746
_________ _________ _________
Total earning assets $5,435,699 $4,109,730 $5,526,248
Cash and due from banks 624,620 463,648 666,368
Bank premises and equipment, net 128,378 106,135 128,898
Accrued income 68,771 50,449 72,551
Premium on and intangibles of purchased banks 83,525 25,421 85,286
Other assets 51,711 59,768 49,475
_________ _________ _________
Total assets $6,392,704 $4,815,151 $6,528,826
========= ========= =========
LIABILITIES
___________
Deposits:
Noninterest-bearing demand $1,545,223 $ 989,056 $1,488,278
Interest-bearing demand and savings 2,343,964 1,829,430 2,364,341
Time deposits under $100,000 1,028,370 820,949 1,058,354
Time deposits of $100,000 or more 200,966 158,374 250,756
_________ _________ _________
Total deposits $5,118,523 $3,797,809 $5,161,729
Federal funds and repurchase agreements 579,782 479,111 625,082
Short-term debt 1,974 924 1,453
Long-term debt 51,529 58,531 51,529
Accrued expenses and taxes 42,033 35,005 56,754
Other liabilities 25,070 31,384 45,636
_________ _________ _________
Total liabilities $5,818,911 $4,402,764 $5,942,183
_________ _________ _________
SHAREHOLDERS' EQUITY
____________________
Common stock, $12.50 par. Authorized 23,000,000
shares; 18,926,307, 14,954,070 and
18,926,307 shares issued respectively $ 236,579 $ 186,926 $ 236,579
Capital surplus 167,331 67,397 167,368
Retained earnings 218,397 187,202 208,557
Net unrealized gain/(loss) on securities
available for sale (5,069) - 14,333
Treasury stock, 1,388,388, 1,014,194 and
1,300,346 shares, at cost, respectively (43,445) (29,138) (40,194)
_________ _________ _________
Total shareholders' equity $ 573,793 $ 412,387 $ 586,643
_________ _________ _________
Total liabilities and
shareholders' equity $6,392,704 $4,815,151 $6,528,826
========= ========= =========
<FN>
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(unaudited in thousands)
<TABLE>
<CAPTION>
Three Months
Ended March 31,
INTEREST INCOME 1994 1993
<S> <C> <C>
Loans $38,676 $ 28,629
Securities:
Taxable interest $30,455 $ 25,559
Tax-exempt interest 2,938 2,454
______ ______
Total securities income $33,393 $ 28,013
Federal funds and resell agreements 3,171 2,606
Trading securities and other 879 569
______ _______
Total interest income $76,119 $ 59,817
______ ______
INTEREST EXPENSE
________________
Deposits $25,522 $ 21,309
Federal funds and repurchase agreements 4,338 4,031
Short-term debt 8 7
Long-term debt 1,018 909
______ _______
Total interest expense $30,886 $ 26,256
______ ______
Net interest income $45,233 $ 33,561
Provision for loan losses 382 738
______ _______
Net interest income after provision $44,851 $ 32,823
______ _______
NONINTEREST INCOME
__________________
Trust income $ 8,460 $ 7,028
Securities processing 3,122 3,178
Trading and investment banking 2,990 4,189
Service charges on deposits 8,194 6,464
Other service charges and fees 3,662 3,210
Bankcard fees 5,314 4,093
Net investment security gains(losses) 3,027 (7)
Other 1,353 760
______ _______
Total noninterest income $36,122 $ 28,915
______ ______
NONINTEREST EXPENSE
___________________
Salaries and employee benefits $29,829 $ 22,852
Occupancy, net 3,802 3,145
Equipment 5,099 4,045
Supplies and services 4,638 3,832
Bankcard processing 4,535 3,408
Marketing and business development 3,562 2,887
FDIC and regulatory fees 2,995 2,320
Other 7,429 5,274
______ _______
Total noninterest expense $61,889 $ 47,763
______ _______
Income before income taxes $19,084 $ 13,975
Income tax provision 5,737 4,521
______ _______
NET INCOME $13,347 $ 9,454
====== =======
PER SHARE DATA
______________
Net income $0.76 $0.69
Dividends $0.20 $0.20
<FN>
Weighted average shares outstanding 17,573,247 13,781,814
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited in thousands)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1994 1993
Operating Activities
<S> <C> <C>
Net Income $ 13,347 $ 9,454
Adjustments to reconcile net income to
net cash provided by operating activities:
Provision for loan losses 382 738
Depreciation and amortization 5,505 3,460
Deferred income taxes and investment tax credits (693) 535
Net (increase) decrease in trading securities 7,802 3,402
Investment security gains (3,073) (1)
Investment security losses 46 8
Amortization of securities premium,
net of discount accretion 11,199 6,948
Decrease in interest receivable 3,780 4,207
Decrease in interest payable (1,246) (1,281)
Other, net (23,747) (8,359)
_________ _________
Net cash provided by operating activities $ 13,302 $ 19,111
_________ _________
Investing Activities
____________________
Proceeds from sales of investment securities $ - $ -
Proceeds from maturities of investment securities 32,079 25,428
Proceeds from sales of securities available for sale 115,294 100
Proceeds from maturities of securities available
for sale 244,633 61,282
Purchases of investment securities (36,891) (32,961)
Purchases of securities available for sale (368,099) (126,785)
Net decrease in loans 28,444 16,295
Net decrease in federal funds and resell agreements 27,491 147,532
Purchases of bank premises and equipment (3,222) (3,678)
Proceeds from sales of bank premises and equipment 1 -
Purchases of financial organizations,
net of cash received - (1,560)
_________ _________
Net cash provided by investing activities $ 39,730 $ 85,653
_________ _________
Financing Activities
____________________
Net increase (decrease) in demand and savings deposits $ 36,568 $ (60,318)
Net decrease in time deposits (79,774) (32,988)
Net decrease in federal funds and repurchase agreements (45,300) (181,726)
Net increase (decrease) in short term borrowings 521 (659)
Proceeds from issuance of long-term debt - 25,000
Cash dividends (3,507) (2,754)
Proceeds from exercise of stock options 82 35
Purchases of treasury stock (3,370) (535)
_________ __________
Net cash used by financing activities $ (94,780) $ (253,945)
_________ _________
Decrease in cash and due from banks $ (41,748) $ (149,181)
Cash and due from banks at beginning of year 666,368 612,829
_________ _________
Cash and due from banks at end of period $ 624,620 $ 463,648
========= =========
<FN>
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
(in thousands)
<TABLE>
<CAPTION>
Net Unrealized
Common Capital Retained Holding Treasury
Stock Surplus Earnings Gain (Loss) Stock
<S> <C> <C> <C> <C> <C>
Balance - December 31, 1992 $184,815 $ 63,046 $180,502 $ - $(28,684)
Net income - - 9,454 - -
Cash dividends - - (2,754) - -
Issuance of common stock
for acquisitions 2,111 4,397 - - -
Purchase of treasury stock - - - - (535)
Exercise of stock options - (46) - - 81
_______ _______ _______ ________ ________
Balance - March 31, 1993 $186,926 $ 67,397 $187,202 - $(29,138)
======= ======= ======= ======== ========
Balance - December 31, 1993 $236,579 $167,368 $208,557 $ 14,333 $(40,194)
Net income - - 13,347 - -
Cash dividends - - (3,507) - -
Purchase of treasury stock - - - - (3,370)
Exercise of stock options - (37) - - 119
Net unrealized loss on securities
available for sale - - - (19,402) -
_______ _______ _______ _________ ________
Balance - March 31, 1994 $236,579 $167,331 $218,397 $ (5,069) $(43,445)
======= ======= ======= ========= ========
<FN>
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1994
1. Change of Company Name:
On April 21, 1994, the Company's shareholders approved changing the
Company's name from United Missouri Bancshares, Inc. to UMB Financial
Corporation, Inc. The name change was made in order to have a corporate
identity which was not geographically restrictive and which was consistent
with the broad range of financial services and products provided by the
Company.
2. Financial Statement Presentation:
The consolidated financial statements include the accounts of the Company
and its subsidiaries after elimination of all material intercompany
transactions. In the opinion of management of the Company, all
adjustments, which were of a normal recurring nature, necessary for a fair
presentation of the financial position and results of operations have been
made. The financial statements should be read in conjunction with the
Management's Discussion and Analysis of Financial Condition and Results of
Operations and with reference to the 1993 Annual Report to Shareholders.
3. Earnings Per Share:
Earnings per share are based on the weighted average number of shares of
common stock outstanding during the interim periods.
4. Allowance for Loan Losses:
The following is a summary of the Allowance for Loan Losses for the three
months ended March 31, 1994 and 1993 (in thousands):
Three Months Ended March 31,
1994 1993
____ ____
Balance January 1 $35,590 $24,456
Additions:
Provision for loan losses 382 738
Allowance of purchased banks - 243
______ ______
$35,972 $25,437
Deductions:
Charge-offs $(1,303) $(1,049)
Less recoveries on loans
previously charged-off 708 369
______ ______
Net loan losses $ (595) $ (680)
______ ______
Balance, March 31 $35,377 $24,757
====== ======
<PAGE>
UMB FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1994
5. Acquisitions
As of June 25, 1993, the Company had consummated the acquisitions of eight
Kansas bank holding companies. The eight companies, their subsidiary
banks and the ownership percentage, and consideration paid are presented
below:
<TABLE>
<CAPTION>
Number of
Assets as of Company Cash
Acquisition Company/ Acquisition Shares (in
Date Subsidiary Banks (% owned) (in millions) Issued (net) thousands)
<S> <S> <C> <C> <C>
03/26/93 Farmers Banshares, Inc. $ 55 168,898 $ 2,329
Farmers National Bank
Abilene (100%)
04/30/93 NBA Bankshares, Inc. $ 123 276,497 $ 4,986
The National Bank of America
at Salina (100%)
05/14/93 M L Bancshares, Inc. $ 156 308,578 $ 6,620
Russell State Bank
Russell/Luray (99.8%)
Security State Bank
Great Bend/Hudson (100%)
05/17/93 Highland Bancshares, Inc. $ 101 265,754 $ 2,299
Highland Park Bank & Trust
Topeka (99.9%)
05/17/93 North Plaza Bancshares, Inc. $ 42 - $ 7,433
North Plaza State Bank
Topeka (100%)
05/28/93 BellCorp, Inc. $ 108 373,951 $ 2,894
Citizens Bank & Trust Co.
Manhattan (100%)
06/14/93 Overland Park Bancshares, Inc. $ 184 1,021,580 $ -
Overland Park State Bank
& Trust Co. (100%)
Overland Park/Olathe
06/25/93 CNB Financial Corporation $ 500 1,526,770 $ -
Commercial National Bank (100%)
Kansas City/Overland Park
City National Bank
Atchison (100%)
First Bank & Trust, N.A.
Concordia/Glasco (100%)
Security State Bank
Fort Scott (100%)
_____ _________ ______
Total $1,269 3,942,028 $26,561
===== ========= ======
</TABLE>
The cash portion of the purchase prices was obtained through the issuance
of debt by the Company. On February 24, 1993, the Company issued
$10,000,000 in medium-term notes due 2000 at 6.81% and $15,000,000 in
medium-term notes due 2003 at 7.30%.
The acquisitions of the Kansas banks have been accounted for by the Company
under the purchase method of accounting in accordance with Accounting
Principles Board Opinion No. 16, "Business Combinations", as amended. Under
this method of accounting, the purchase prices have been allocated to assets
acquired and liabilities assumed based on their estimated fair values,
including applicable income tax effects, at the effective dates of the
acquisitions. Income of the combined company will not include income of the
acquired companies prior to the effective dates of the acquisitions.
<PAGE>
UMB FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1994
5. Acquisitions (continued):
The following table presents supplementary information regarding the
acquisitions of the Kansas banks (dollars in thousands):
Fair values of assets acquired:
Securities $ 529,111
Net loans 522,111
Federal funds sold and resell agreements 85,207
Core deposit intangible 12,756
Other 140,108
_________
Total $1,289,293
_________
Fair values of liabilities assumed:
Deposits $1,062,992
Federal funds purchased and repurchase agreements 74,984
Borrowed funds 6,103
Other 19,190
_________
Total $1,163,269
_________
Fair value of net assets acquired $ 126,024
_________
Purchase prices of acquisitions:
Issuance of common stock (net of treasury stock acquired) $ 148,928
Cash paid 26,561
Direct costs of acquisitions 963
Previous investments in institutions acquired 1,506
_________
Total $ 177,958
_________
Goodwill (excess of purchase prices over
fair value of net assets acquired): $ 51,934
=========
The following proforma consolidated financial information gives effect to
the Kansas banks as if they were all acquired on January 1, 1993. These
pro forma results have been prepared for comparative purposes only and do
not purport to be indicative of the results of operations which actually
would have resulted had the combinations been in effect on the dates
indicated, or which may result in the future.
Three Months Ended
(dollars in thousands except per share data) March 31, 1993
______________
Net interest income $ 43,139
Noninterest income 32,719
Noninterest expense 59,746
Net income 10,421
Net income per share 0.59
6. Commitments and Contingencies:
In the normal course of business, the Company and its subsidiaries are
named defendants in various lawsuits and counterclaims. In the opinion of
management after consultation with legal counsel, none of these suits will
have a materially adverse effect on the financial position or results of
operations of the Company.
<PAGE>
UMB FINANCIAL CORPORATION
AVERAGE BALANCES/YIELDS AND RATES (Tax-Equivalent Basis)
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1994 1993
Average Average Average Average
Balance Yield/Rate Balance Yield/Rate
ASSETS
<S> <C> <C> <C> <C>
Loans, net of unearned interest $2,109,499 7.50% $1,438,296 8.15%
Securities:
Taxable $2,703,522 4.57 $2,149,103 4.82
Tax-exempt 272,266 6.39 207,124 6.91
_________ _________
Total securities $2,975,788 4.73 $2,356,227 5.01
Federal funds and resell agreements 403,587 3.19 338,922 3.12
Other earning assets 73,253 4.99 42,609 5.82
_________ _________
Total earning assets $5,562,127 5.67 $4,176,054 5.94
Allowance for loan losses (35,506) (24,568)
Other assets 1,036,439 803,158
_________ _________
Total assets $6,563,060 $4,954,644
========= =========
LIABILITIES & SHAREHOLDERS' EQUITY
Interest-bearing deposits $3,692,318 2.80% $2,777,618 3.11%
Federal funds and repurchase agreements 611,840 2.88 585,094 2.79
Borrowed funds 52,808 7.88 44,615 8.32
_________ _________
Total interest-bearing liabilities $4,356,966 2.87 $3,407,327 3.13
Noninterest-bearing demand deposits 1,541,301 1,080,107
Other liabilities 76,288 60,778
Shareholders' equity 588,505 406,432
_________ _________
Total liabilities and
shareholders' equity $6,563,060 $4,954,644
========= =========
Net interest spread 2.80% 2.81%
Net interest margin 3.42 3.39
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
ANALYSIS OF CHANGES IN NET INTEREST INCOME AND MARGIN
(tax-equivalent basis)
(in thousands)
<TABLE>
<CAPTION>
ANALYSIS OF CHANGES IN NET INTEREST INCOME
Three Months Ended
March 31, 1994 vs. 1993
Volume Rate Total
Change in interest earned on:
<S> <C> <C> <C>
Loans $12,567 $ (2,449) $ 10,118
Securities:
Taxable 6,304 (1,408) 4,896
Tax-exempt 1,043 (286) 757
Federal funds sold 507 58 565
Other 387 (97) 290
______ ________ _______
Interest income $20,808 $ (4,182) $ 16,626
______ ________ _______
Change in interest paid on:
Interest-bearing
deposits $ 6,483 $ (2,270) $ 4,213
Federal funds
purchased 188 119 307
Borrowed funds 161 (51) 110
_____ ________ _______
Interest expense $ 6,832 $ (2,202) $ 4,630
______ ________ _______
Net interest income $13,976 $ (1,980) $ 11,996
====== ======== =======
</TABLE>
<TABLE>
<CAPTION>
ANALYSIS OF NET INTEREST MARGIN
Three Months Ended
March 31,
1994 1993 Change
<S> <C> <C> <C>
Average earning
assets $5,562,127 $4,176,054 $1,386,073
Interest-bearing
liabilities 4,356,966 3,407,327 949,639
_________ _________ _________
Interest free
funds $1,205,161 $ 768,727 $ 436,434
========= ========= =========
<S> <C> <C> <C>
Free funds ratio
(free funds to
earning assets) 21.67% 18.41% 3.26%
Tax-equivalent yield
on earning assets 5.67% 5.94% (0.27)%
Cost of interest-
bearing liabilities 2.87 3.13 (0.26)
_____ _____ ______
Net interest spread 2.80% 2.81% (0.01)%
Benefit of interest
free funds 0.62 0.58 0.04
_____ _____ _____
Net interest margin 3.42% 3.39% 0.03 %
===== ===== =====
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS FOR THE
THREE MONTHS ENDED MARCH 31, 1994
SUMMARY
_______
UMB Financial Corporation, Inc. (UMB or the Company) recorded net income of
$13,347,000 for the three months ended March 31, 1994 compared to $9,454,000
for the same period in 1993. On a per share basis earnings were $0.76 for the
first quarter of 1994 compared to $0.69 in 1993.
During 1993 the Company acquired 12 banks in the State of Kansas (the Kansas
Banks). Only one of these acquisitions was closed in March 1993 and the
remainder in the second quarter. For 1994 the Kansas Banks contributed
$1,727,000 to the Company's consolidated net income. First quarter 1994
results also benefited from gains on the sale of securities of $3,027,000
compared to a minimal net loss on security sales in first quarter 1993. The
Company's net interest income increased as a result of a slight repositioning
of the investment security portfolio, which improved its overall yield.
RESULTS OF OPERATIONS
_____________________
Net interest income for the three months ended March 31, 1994 was $45,233,000
compared to $33,561,000 for the same period in 1993. Over $9 million of this
increase was the result of including the Kansas Banks in 1994 results of
operations. The remaining increase was primarily the results increased income
on higher loan volume and a continued decrease in the rates paid on deposits.
Excluding the effect of the Kansas Banks, loans on March 31, 1994 increased
13% over total loans at March 31, 1993. The increase is the result of renewed
marketing efforts aimed at increasing the Company's market share.
The Company's provision for loan losses was $382,000 for the quarter ended
March 31, 1994 compared to $738,000 for the same period last year. The
decreased quarterly provision represents management's estimate of the expense
required to maintain the adequacy of the Company's loan loss reserve. This
estimate includes consideration of the Company's conservative loan practices,
including loss recognition, the addition of the Kansas Banks and other
economic factors including the quality of the Company's loan portfolio and
estimated changes therein. For the quarter ended March 31, 1994 net charge
offs decreased to $595,000 from $680,000 for the first quarter of 1993. This
represents a 12.5% decrease compared to 43% increase in gross loans.
Non interest income increased from $28,915,000 for the first three months of
1993 to $36,122,000 for the first three months of 1994. Approximately one
half of this increase is attributable to the inclusion of the Kansas Banks in
1994 operations. The remaining increase was the result of a gain on the sale
of securities available for sale, increased investment and trading income and
higher bankcard processing fees.
Non interest expense increased to $61,889,000 for the first quarter of 1994
from $47,763,000 for the same period in 1993. Approximately $10,000,000 of
this increase represents the operating expenses of the Kansas Banks. Included
in the operating expenses of the Kansas Banks is goodwill amortization of
$1,200,000. Without the inclusion of the Kansas Banks, non interest expense
would have increased by 8.5%. Over one half of this increase was the result
of higher salary and benefit costs, primarily affected by increased medical
and retirement plan costs. Also contributing to the change in non interest
expense was an increase in bankcard processing fees resulting from higher
transaction volumes.
FINANCIAL CONDITION
___________________
At March 31, 1994 total assets were $6.393 billion compared to $6.529 billion
at December 31, 1993 and $4.815 billion at March 31, 1993. The increases over
the first quarter 1993 totals are the result of the Kansas Bank acquisitions.
<PAGE>
UMB FINANCIAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS FOR THE
THREE MONTHS ENDED MARCH 31, 1994
Loans at March 31, 1994 decreased slightly from the total at December 31, 1993
and increased 43% from a year earlier. At March 31, 1994 the Kansas Banks
loans totaled $473 million. Without the effect of the Kansas Banks, loans at
March 31, 1994 increased $172 million from a year earlier. This increase is
the result of a sustained marketing effort to increase the Company's market
share.
The level of the Company's non performing loans (nonaccrual and restructured
loans) and other real estate owned was $16,277,000 at March 31, 1994 compared
to $14,379,000 at December 31, 1993. This increase was primarily the result
of one loan at the Company's main bank which was placed on nonaccrual during
the first quarter of 1994. The Company does not expect to incur a significant
loss on this credit. The allowance for loan losses was $35,377,000 at March
31, 1994 or 1.66% of total loans, compared to $35,590,000, 1.65% of total
loans, at December 31, 1993.
Securities available for sale were $2.583 billion at March 31, 1994 compared
to $2.700 billion at December 31, 1993. This decrease resulted from a
repositioning of the portfolio in order to improve the rate of return. At
March 31, 1994, the average life of the entire investment portfolio was 20
months, unchanged from December 31, 1993. Proceeds from above sale of
securities were primarily invested in high quality mortgage backed securities
that the Company intends to hold until maturity. The average expected
maturities of these mortgage backed instruments is approximately 33 months.
The Company's deposit totals at March 31, 1994 were comparable to those at
December 31, 1993. Ignoring the effect of the Kansas Banks, deposits at March
31, 1994 increased by nearly 11% over total deposits at March 31, 1993.
LIQUIDITY AND CAPITAL RESOURCES
_______________________________
The Company continues to maintain a high level of liquidity. At March 31,
1994 the Company's loan to deposit ratio was 41.6%. The average maturity of
the investment portfolio was 20 months and 35% of the portfolio matures
within twelve months. In addition, the Company has access to various
borrowing markets should the need arise, however such a need is not expected.
At March 31, 1994, shareholders' equity totaled $573,793,000 compared to
$586,643,000 at December 31, 1993 and $412,387,000 at March 31, 1993. The
increase from a year earlier was primarily the result of the acquisition of
the Kansas Banks. The decrease in equity from year end 1993 was the result of
a $19,402,000 change in the market value of securities available for sale.
The Company adopted statement of Financial Accounting Standards No. 115
"Accounting for Certain Investments in Debt and Equity Securities," during the
fourth quarter of 1993. A general increase in interest rates during the first
quarter of 1994 resulted in a decrease in the market value of the Company's
securities available for sale. The Company's capital ratios are included in
the table below and for exceed regulatory requirements.
Three Months Ended
March 31,
_____________________
1994 1993
____ ____
RATIOS
______
Return on average assets 0.82% 0.77%
Return on average equity 9.20 9.43
Average equity to assets 8.97 8.20
Tier 1 risk-based capital ratio 16.58 19.51
Total risk-based capital ratio 17.92 21.30
Leverage ratio 7.85 8.08
PER SHARE DATA
______________
Earnings $0.76 $0.69
Cash dividends 0.20 0.20
Dividend payout ratio 26.32% 28.99%
Book value $32.72 $29.58
<PAGE>
UMB FINANCIAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS FOR THE
THREE MONTHS ENDED MARCH 31, 1994
PART II. Other information
Item 6. Exhibits and Reports on Form 8-K
(a) There are no exhibits filed with this report.
(b) Reports on Form 8-K:
(i) Form 8-K/A, Amendment No. 1 to the Form 8-K dated June 25, 1993,
was filed on September 8, 1993. Form 8-K/A included the pro
forma financial information regarding the Kansas bank
acquisitions as well as audited 1992 financial statements and
interim financial information for two of the acquirees.
(ii) Form 8-K dated April 19, 1994. Item 5. Other events, change in
executive management of the Company, change in par value of the
Company's common stock and name change of Company to UMB
Financial Corporation.
<PAGE>
UMB FINANCIAL CORPORATION
FORM 10-Q
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
UMB FINANCIAL CORPORATION
/s/ R. Crosby Kemper
R. Crosby Kemper
Chairman
/s/ Timothy M. Connealy
Senior Vice President
Date: May 12, 1994
