<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, 1996
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, Missouri 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, 1996, UMB Financial Corporation had 19,108,656 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 Sheets
as of March 31, 1996 and 1995 and December 31, 1995 3
Consolidated Statements of Income for the Three Months
Ended March 31, 1996 and 1995 4
Consolidated Statements of Cash Flows for the Three Months
Ended March 31, 1996 and 1995 5
Consolidated Statements of Shareholders' Equity for the Three Months
Ended March 31, 1996 and 1995 6
Notes to Consolidated Financial Statements 7-8
Supplemental Financial Data
Average Balances/ Yields and Rates 9
Analysis of Changes in Net Interest Income and Margin 10
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 11-13
PART II. Other Information
Item 6. Exhibits and Reports on Form 8-K 14
Signatures 15
<PAGE>
UMB FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1996 1995 1995
Loans:
<S> <C> <C> <C>
Commercial, financial and agricultural $1,195,010 $1,178,549 $1,198,808
Consumer (net of unearned interest) 780,938 684,278 784,091
Real estate 441,218 436,806 467,570
Leases 2,003 1,958 2,057
Allowance for loan losses (35,403) (32,285) (32,685)
------- ------- -------
Net Loans $2,383,766 $2,269,306 $2,419,841
Securities available for sale:
U.S. Treasury and agencies $2,261,721 $2,063,685 $2,330,164
Equity securities and other 6,410 8,015 6,410
------- ------- -------
Total securities available for sale $2,268,131 $2,071,700 $2,336,574
Securities held to maturity:
State and political subdivisions $316,986 $307,221 $311,757
U.S. Agencies 0 86,158 0
------- ------- -------
Total securities held to maturity (market value
of $317,074, $386,973 & $313,173, respectively) $316,986 $393,379 $311,757
Federal funds and resell agreements 37,463 216,123 89,165
Trading securities and other earning assets 126,240 54,410 86,011
------- ------- -------
Total earning assets $5,132,586 $5,004,918 $5,243,348
Cash and due from banks 639,816 574,062 696,407
Bank premises and equipment, net 149,465 133,992 147,576
Accrued income 82,283 73,329 79,149
Premium on and intangibles of purchased banks 72,967 76,314 74,739
Other Assets 45,156 65,914 40,109
------- ------- -------
Total assets $6,122,273 $5,928,529 $6,281,328
======= ======= =======
LIABILITIES
Deposits:
Noninterest-bearing demand $1,469,009 $1,410,912 $1,634,960
Interest-bearing demand and savings 2,024,771 2,205,499 1,877,019
Time deposits under $100,000 965,901 942,949 977,666
Time deposits of $100,000 or more 283,054 173,963 324,038
------- ------- -------
Total deposits $4,742,735 $4,733,323 $4,813,683
Federal funds and repurchase agreements 686,367 480,809 721,340
Short-term debt 1,044 459 501
Long-term debt 57,427 46,249 40,736
Accrued expenses and taxes 51,981 43,435 63,135
Other liabilities 18,997 40,042 19,493
------- ------- -------
Total liabilities $5,558,551 $5,344,317 $5,658,888
Common stock repurchase commitment $0 $0 $46,481
SHAREHOLDERS' EQUITY
Common stock, $1.00 par value; authorized 23,000,000
shares; 22,547,521 issued $22,548 $20,678 $22,548
Capital surplus 522,919 442,594 522,892
Retained earnings 151,066 191,222 136,943
Net unrealized gain (loss) on securities available for sale (6,338) (16,138) 3,612
Unearned ESOP shares (16,799) 0 0
Treasury stock, 3,050,857, 1,715,685 and
1,972,239 shares, at cost, respectively (109,674) (54,144) (63,555)
Common stock repurchase commitment, 1,068,533
shares at December 31, 1995 0 0 (46,481)
------- ------- -------
Total shareholders' equity $563,722 $584,212 $575,959
------- ------- -------
Total liabilities and shareholders' equity $6,122,273 $5,928,529 $6,281,328
======= ======= =======
<FN>
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(unaudited in thousands)
<TABLE>
<CAPTION>
Three Months
INTEREST INCOME 1996 1995
<S> <C> <C>
Loans $55,433 $50,398
Securities:
Taxable interest $31,228 $29,036
Tax-exempt interest 3,575 3,488
------- -------
Total securities income $34,803 $32,524
Federal funds and resell agreements 2,224 4,680
Trading securities and other 959 972
------- -------
Total interest income $93,419 $88,574
------- -------
INTEREST EXPENSE
Deposits $31,966 $31,652
Federal funds and repurchase
agreements 8,655 7,845
Short-term debt 11 12
Long-term debt 1,054 917
------- -------
Total interest expense $41,686 $40,426
------- -------
Net interest income 51,733 48,148
Provision for loan losses 4,827 926
------- -------
Net interest income after provision $46,906 $47,222
------- -------
NONINTEREST INCOME
Trust income $10,217 $8,411
Securities processing 2,282 2,610
Trading and investment banking 3,564 2,751
Service charges on deposits 8,467 8,254
Other service charges and fees 3,291 2,803
Bankcard fees 1,338 1,644
Net investment security gains 1 417
Other 10,826 3,725
------- -------
Total noninterest income $39,986 $30,615
------- -------
NONINTEREST EXPENSE
Salaries and employee benefits $31,825 $31,041
Occupancy, net 4,395 3,803
Equipment 5,427 5,189
Supplies and services 4,895 4,597
Bankcard processing 1,677 656
Marketing and business development 3,306 3,179
FDIC and regulatory fees 329 3,027
Other 7,363 7,151
------- -------
Total noninterest expense $59,217 $58,643
------- -------
Income before income taxes 27,675 19,194
Income tax provision 9,679 6,339
------- -------
NET INCOME $17,996 $12,855
======= =======
PER SHARE DATA
Net income $0.93 $0.62
Dividends $0.20 $0.18
Weighted average shares outstanding 19,416,847 20,861,390
<FN>
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,
1996 1995
Operating Activities
<S> <C> <C>
Net Income $17,996 $12,855
Adjustments to reconcile net income to
net cash provided by (used in) operating activities:
Provision for loan losses 4,827 926
Depreciation and amortizaton 5,837 5,499
Deferred income taxes and investment tax credits (2,614) (1,702)
Net increase in trading securities (40,229) (23,428)
Gains on sales of securities available for sale (2) (424)
Losses on sales of securities available for sale 1 7
Amortization of securities premium,
net of discount accretion 6,471 10,317
Earned ESOP shares 535 -
(Increase) decrease in interest receivable (3,134) 7,890
Decrease in interest payable (1,522) (53)
Other, net (6,577) 23,272
------- -------
Net cash provided by (used in) operating activity ($18,411) $35,159
------- -------
Investing Activities
Proceeds from maturities of investment securities $24,719 $19,387
Proceeds from sales of securities available for sale 552 448
Proceeds from maturities of securities available for sale 770,170 383,416
Purchases of investment securities (30,512) (28,636)
Purchases of securities available for sale (724,232) (158,685)
Net (increase) decrease in loans 31,248 (33,142)
Net decrease in federal funds and resell agreements 51,702 317,976
Purchases of bank premises and equipment (6,041) (7,511)
Proceeds from sales of bank premises and equipment $200 $58
------- -------
Net cash provided by investing activities $117,806 $493,311
------- -------
Financing Activities
Net decrease in demand and savings deposits ($18,199) ($375,216)
Net (increase) decrease in time deposits (52,749) (24,295)
Net decrease in federal funds and repurchase agreements (34,973) (320,194)
Net increase (decrease) in short term borrowings 543 (413)
Repayment of long term debt (590) (81)
Cash dividends (3,873) (3,792)
Proceeds from exercise of stock options 58 28
Purchases of treasury stock (46,203) (1,258)
------- -------
Net cash used in financing activities ($155,986) ($725,221)
------- -------
Decrease in cash and due from banks ($56,591) ($196,751)
Cash and due from banks at beginning of year 696,407 770,813
------- -------
Cash and due from banks at end of period $639,816 $574,062
======= =======
<FN>
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(in thousands)
<TABLE>
<CAPTION>
Net
Unrealized
Common Capital Retained Holding Treasury Unearned Repurchase
Stock Surplus Earnings Gain (Loss) Stock ESOP Commitment
------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance - December 31, 1994 $20,678 $442,606 $182,159 ($35,211) ($52,926) 0 0
Net income 0 0 12,855 0 0 0 0
Cash Dividends 0 0 (3,792) 0 0 0 0
Purchase of treasury stock 0 0 0 0 (1,258) 0 0
Exercise of stock options 0 (12) 0 0 40 0 0
Net unrealized gain on securities available for sale 0 0 0 19,073 0 0 0
------- ------- ------- ------- ------- ------- -------
Balance - March 31, 1995 $20,678 $442,594 $191,222 ($16,138) ($54,144) $0 $0
======= ======= ======= ======= ======= ======= =======
Balance - December 31, 1995 $22,548 $522,892 $136,943 $3,612 ($63,555) $0$(46,481)
Net income 0 0 17,996 0 0 0 0
Cash dividends 0 0 (3,873) 0 0 0 0
Guaranteed ESOP obligation 0 0 0 0 0 (17,281) 16,530
Earned ESOP shares 0 53 0 0 0 482 0
Purchase of treasury stock 0 0 0 0 (46,203) 0 29,951
Exercise of stock options 0 (26) 0 0 84 0 0
Net unrealized loss on securities available for sale 0 0 0 (9,950) 0 0 0
------ ------- ------- ------- ------- ------- -------
Balance - March 31, 1996 $22,548 $522,919 $151,066 ($6,338) ($109,674) ($16,799) $0
======= ======= ======= ======= ======= ======= =======
<FN>
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1996
1. 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 1995 Annual Report to Shareholders.
2. Earnings Per Share:
Earnings per share are based on the weighted average number of shares of
common stock outstanding during the interim periods. All share and per share
data has been adjusted to reflect a 10% stock dividend paid on January 2, 1996.
3. Acquisitions:
On December 13, 1995, the Company acquired First Sooner Bancshares, the one-bank
holding company of The Oklahoma Bank (now UMB Oklahoma Bank), for $12.7 million.
The acquisition of this $139 million bank was recorded as a purchase,
with $3.3 million recorded as premium on purchased bank. This acquisition
is not deemed to be material in relation to the consolidated results of the
Company.
4. Allowance for Loan Losses:
The following is a summary of the Allowance for Loan Losses for the three
months endedMarch 31, 1996 and 1995 (in thousands):
1996 1995
Balance January 1 $32,685 $32,527
Additions:
Provision for loan losses 4,827 926
------- -------
37,512 33,453
Deductions: ------- -------
Charge-offs (2,612) (1,653)
Less recoveries on loans
previously charged-off 503 485
------- -------
Net charge-offs (2,109) (1,168)
------- -------
Balance, March 31 $35,403 $32,285
======= =======
<PAGE>
UMB FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1996
4. Allowance for Loan Losses: (Continued)
At March 31, 1996 the amount of loans that are considered to be impaired under
SFAS No. 114 was $5,663,000. All of these loans are currently on a
nonaccrual basis. Included in the impaired loans is $4,889,000 of loans for
which the related allowance for loan losses is $1,269,000. The remaining
$774,000 of impaired loans do not have an allowance for loan loss as a result
of write-downs and supporting collateral value. The average recorded
investment in impaired loans during the period ended March 31, 1996
was approximately $3,366,000.
5. 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 the suits will have a materially
adverse effect on the financialposition or results of operations of the Company.
6. Other Events:
During the first quarter of 1996, the Company recorded a gain of
$9.8 million on the sale of its merchant bankcard portfolio. Merchant
bankcard processing income and related processing expenses previously
were reported seperately in the Company's consolidated statements of income.
Merchant processing income has been reclassified against processing expense
in order to allow a more meaningful comparison of current and prior period
results.
On April 17, the Board of Directors authorized the repurchase of one million
shares of the Company's common stock. The authorization allows for the
purchase of approximately 5 percent of the Company's common stock during the
next 12 months.
<PAGE>
UMB FINANCIAL CORPORATION
AVERAGE BALANCES/YIELDS AND RATES
(tax-equivalent basis) (in thousands)
<TABLE>
<CAPTION>
1996 1995
Average Average Average Average
Assets Balance Yield/Rate Balance Yield/Rate
<S> <C> <C> <C> <C>
Loans, net of unearned interest $2,404,446 9.31 $2,300,477 8.93
Securities:
Taxable 2,276,365 5.52 2,265,748 5.20
Tax-exempt 310,536 6.90 304,602 6.60
------- ------- ------- -------
Total securities 2,586,901 5.68 2,570,350 5.36
Federal funds and resell agreements 168,493 5.31 325,549 5.83
Other earning assets 69,971 5.78 64,091 6.39
------- ------- ------- -------
Total earning assets 5,229,811 7.34 5,260,467 6.96
Allowance for loan losses (32,724) (32,545)
Other assets 972,100 970,503
------- -------
Total assets $6,169,187 $6,198,425
======= =======
Liabilities and Shareholders' Equity
Interest-bearing deposits $3,369,812 3.82 $3,525,470 3.64
Federal funds and repurchase agreements 699,824 4.97 607,371 5.24
Borrowed funds 58,578 7.31 47,350 7.96
------- ------- ------- -------
Total interest-bearing liabilities 4,128,214 4.06 4,180,191 3.92
Noninterest-bearing demand deposits 1,390,673 1,381,474
Other liabilities 69,449 63,173
Shareholders' equity 580,851 573,587
------- -------
Total liabilities and shareholders' equity $6,169,187 $6,198,425
======= =======
Net interest spread 3.28 3.04
Net interest margin 4.14 3.85
</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, 1996 vs. 1995
Volume Rate Total
Change in interest earned on: ------- ------- -------
<S> <C> <C> <C>
Loans $2,577 $2,442 $5,019
Securities:
Taxable 155 2,037 2,192
Tax-exempt 111 259 370
Federal funds sold (2,072) (384) (2,456)
Other 93 (97) (4)
------- ------- -------
Interest income $864 $4,257 $5,121
------- ------- -------
Change in interest paid on:
Interest-bearing deposits ($1,314) $1,628 $314
Federal funds purchased 1,208 (398) 810
Borrowed funds 215 (79) 136
------- ------- -------
Interest expense 109 1,151 1,260
------- ------- -------
Net interest income $755 $3,106 $3,861
======= ======= =======
ANALYSIS OF NET INTEREST MARGIN
Three Months Ended
March 31, 1996
1996 1995 Change
------- ------- -------
Average earning assets $5,229,811 $5,260,467 ($30,656)
Interest-bearing liabilities 4,128,214 4,180,191 (51,977)
------- ------- -------
Interest free funds $1,101,597 $1,080,276 $21,321
======= ======= =======
Free funds ratio 21.06 20.54 0.52
(free funds to earning assets)
Tax-equivalent yield on earning assets 7.34 6.96 0.38
Cost of interest-bearing liabilities 4.06 3.92 0.14
------- ------- -------
Net interest spread 3.28 3.04 0.24
Benefit of interest free funds 0.86 0.81 0.05
------- ------- -------
Net interest margin 4.14 3.85 0.29
======= ======= =======
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996
Summary
UMB Financial Corporation (the Company) recorded net income of
$17,996,000 for the three months ended March 31, 1996, compared to
$12,855,000 for the same period last year, an increase of 39.99%. On a
per share basis, income for the first quarter of 1996 was $0.93, compared
to $0.62 for the same period in 1995, an increase of 50.00%. Return on
assets was 1.17% and return on equity was 12.46% for the three months
ended March 31, 1996.
The Company's improved performance has been primarily driven by an
increase in non interest income. This increase includes a gain on the
sale of the servicing rights to its merchant bankcard portfolio. Net
interest income increased as a result of higher interest rates, an increase
in lending activity and a change in balance sheet mix. The Company
increased its provision for loan losses during the first quarter of 1996 as a
result of a general increase in leading activity and increased losses
associated with bankcard loans. Non interest expense increased slightly
when comparing the first quarter of 1996 to the same period of 1995.
Results of Operations
For the three months ended March 31, 1996, the Company earned net
interest income of $51,733,000 compared to $48,148,000 for the first
quarter of 1995, an increase of 7.45%. This increase was the result of an
improvement in the Company's net interest spread from 3.04% for the
first quarter of 1995 to 3.28% for the first quarter of 1996. This increase
has resulted from higher interest rates and change in the mix of the
Company's assets. These changes also resulted in an increase in the
Company's net interest margin which was 4.14% for the first quarter of
1996 compared to 3.85% for the first three months of 1995. During this
period average earning assets have decreased slightly while average
loans have increased by 4.5%. The Company's loan growth has been
the result of continued emphasis on middle market commercial lending
and targeted campaigns for consumer loans.
The provision for loan losses was $4,827,000 and $926,000 for the three
months ended March 31, 1996, and 1995, respectively. The increase in
provision was the result of increased net loan charge-offs primarily
related to bankcard loans. Net loan charge-offs in the first quarter of
1996 were $2,109,000, compared to $1,168,000 for the same period last
year. The increase in loan loss provision was also warranted due to an
increase in non performing loans. This increase was primarily related to
the bankruptcy of one commercial loan customer.
Non interest income totaled $39,986,000 for the first quarter of 1996
compared to $30,615,000 for the same period of 1995. The largest
component of this change was a $9.8 million gain on the sale of the
servicing rights of the merchant bankcard portfolio, in the first quarter of
1996. Included in other income for the first quarter of 1995 was a gain of
approximately $2.6 million from the sale of the Company's minority
ownership position in an ATM switching station. Also, effecting non
interest income at March 31, 1996 as compared to March 31, 1995, were
increases in trust income and fees related to securities sales. These
increases in fee income resulted primarily from changes in transaction
volumes. These increases were partially offset by a decrease in
securities processing income resulting from the loss of a large mutual
fund processing customer in 1995.
<PAGE>
UMB FINANCIAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996
Non interest expense was $59,217,000 for the first three months of 1996
compared to $58,643,000 for the same period of 1995 an increase of
0.98%. Excluding the effect of the acquisition of UMB Oklahoma Bank in
December 1995, non interest expense decreased approximately 1%. In
comparing the first quarter of 1996 to the same period of 1995, the
Company incurred marginal increases in occupancy cost and bankcard
processing fees which were offset by a reduction in premiums for deposit
insurance. Occupancy cost increases were the result of new facilities,
loan production offices and the outsourcing of building maintenance
previously performed by in-house personnel. The Company has and will
continue to aggressively take measures to control all overhead related
items.
Financial Condition
Total assets were $6.122 billion at March 31, 1996, compared to $5.929
billion at March 31, 1995. The increase in assets during the twelve
month period ended March 31, 1996, was primarily the result of the
acquisition of UMB Oklahoma Bank. Loans, net of unearned interest
increased to $2.419 billion as of March 31, 1996, from $2.302 billion at
March 31, 1995. Besides the increases due to the acquisition, loans
increased due to a targeted loan campaign for consumer installment
loans. Investment securities were $2.585 billion at March 31, 1996,
compared to $2.465 billion at March 31, 1995. Increases in securities
and loans were funded by a decrease in federal fund and resell
transactions. Total deposits of $4.743 billion at March 31, 1996 were
basically unchanged from $4.733 billion at March 31, 1995. Increases in
deposits due to the UMB Oklahoma Bank acquisition were offset by a
loss of deposits associated with the loss of a mutual fund processing
customer in 1995.
Non accrual and restructured loans totaled $8,878,000, 0.37% of loans,
and loans past due 90 days or more were $6,624,000, 0.27% of loans, at
March 31, 1996. The Company's loan quality remains strong by industry
standards. The total of nonperforming loans and loans past due 90 days
or more were less than 1.0% of total loans. At March 31, 1996, the
Company's allowance for loan losses was $35,403,000 or 1.46% of
outstanding loans, compared to 1.40% one year earlier. The Company
has a well-diversified loan portfolio with no foreign loans and no
significant credit exposure to commercial real estate.
<PAGE>
UMB FINANCIAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996
Liquidity and Capital Resources
The Company's liquidity position continues to be strong. At March 31,
1996, the Company's loan to deposit ratio was 49.5% compared to 48.6%
at March 31, 1995. At March 31, 1996, the average life of the securities
portfolio was 23 months and 34% of the portfolio matures during the next
twelve months. The Company has access to various borrowing markets
should there be a need for additional funding.
Shareholders' equity totaled $564 million at March 31, 1996 compared to
$584 million at March 31, 1995 and $576 million at year end 1995.
During the twelve months ended March 31, 1996, the Company
increased its treasury stock holdings by $56 million. Management will
continue to consider treasury stock purchases depending on price,
availability and alternative uses of funds. At March 31, 1996, the net
unrealized loss on securities available for sale was $6.3 million,
compared to an unrealized loss of $16.1 million at March 31, 1995, and
an unrealized gain of $9.8 million at December 31, 1995. In December
1995, the Company and its Employee Stock Ownership Plan (ESOP)
entered into a commitment to purchase 1,581,133 shares of common
stock of the Company. During the first quarter of 1996, the Company
acquired 944,833 of such shares for treasury stock using existing working
capital. Also, in the first quarter the ESOP purchased 380,000 shares by
means of a seven-year loan guaranteed by the Company. During the
second quarter of 1996, the Company intends to purchase the remaining
256,300 shares of this commitment.
The Company's capital position is summarized in the table below and far
exceeds regulatory requirements.
Three Months Ended
March 31,
1996 1995
RATIOS
Return on average assets 1.17% 0.84%
Return on average equity 12.46 9.09
Average equity to assets 9.42 9.25
Tier 1 risk-based capital ratio 16.47 17.46
Total risk-based capital ratio 17.65 18.57
Leverage ratio 8.22 8.95
PER SHARE DATA
Earnings $0.93 $0.62
Cash dividends 0.20 0.18
Dividend payout 21.51% 29.03%
Book value $29.50 $28.01
<PAGE>
UMB FINANCIAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS FOR THE
FOR THE THREE MONTHS ENDED MARCH 31, 1996
PART II. Other Information
Item 6. Exhibits and Reports on Form 8-K
a) The following exhibit is filed herewith:
27-Article 9 of Regulation S-X Financial Data Schedule for
March 31, 1996 Form 10-Q.
b) Reports on Form 8-K:
The Company filed no reports on Form 8-K during the quarter ended
March 31, 1996.
<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
Timothy M. Connealy
Chief Financial Officer
Date: April 15, 1996
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0
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