<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, 1997
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 (I.R.S. Employer
of 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, 1997, UMB Financial Corporation had 19,471,983 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, 1997 and 1996 and December 31, 1996 3
Consolidated Statements of Income for the Three Months
Ended March 31, 1997 and 1996 4
Consolidated Statements of Cash Flows for the Three Months
Ended March 31, 1997 and 1996 5
Consolidated Statements of Shareholders' Equity for the Three
Months Ended March 31, 1997 and 1996 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
(unaudited in thousands)
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1997 1996 1996
Loans:
<S> <C> <C> <C>
Commercial, financial and agricultural $ 1,269,149 $ 1,178,548 $ 1,236,092
Consumer (net of unearned interest) 944,125 780,938 914,914
Real estate 380,857 441,218 404,039
Leases 3,161 2,003 2,596
Allowance for loan losses (33,631) (35,403) (33,414)
________ ________ ________
Net Loans $ 2,563,661 $ 2,367,304 $ 2,524,227
Securities available for sale:
U.S. Treasury and agencies $ 2,143,040 $ 2,261,721 $ 2,257,217
State and political subdivisions 5,405 - 2,464
Commercial paper and other 47,076 22,872 127,641
________ ________ ________
Total securities available for sale $ 2,195,521 $ 2,284,593 $ 2,387,322
Securities held to maturity:
State and political subdivisions 335,678 316,986 319,227
Total securities held to maturity (market value ________ ________ ________
of $335,444, $317,074 & $313,173, respectively) $ 335,678 $ 316,986 $ 319,227
Federal funds and resell agreements 143,907 37,463 58,960
Trading securities and other earning assets 78,077 126,240 79,814
________ ________ ________
Total earning assets $ 5,316,844 $ 5,132,586 $ 5,369,550
Cash and due from banks 762,171 639,816 772,631
Bank premises and equipment, net 155,868 149,465 152,909
Accrued income 73,190 82,283 72,717
Premium on and intangibles of purchased banks 65,664 72,967 67,474
Other Assets 69,425 45,156 76,705
________ ________ ________
Total assets $ 6,443,162 $ 6,122,273 $ 6,511,986
========= ========= =========
LIABILITIES
Deposits:
Noninterest-bearing demand $ 1,684,727 $ 1,470,063 $ 1,724,486
Interest-bearing demand and savings 2,296,648 2,023,717 2,171,938
Time deposits under $100,000 906,436 965,901 917,983
Time deposits of $100,000 or more 269,545 283,054 376,127
________ ________ ________
Total deposits $ 5,157,356 $ 4,742,735 $ 5,190,534
Federal funds and repurchase agreements 584,308 686,367 614,395
Short-term debt 1,506 1,044 911
Long-term debt 50,725 57,427 51,350
Accrued expenses and taxes 51,165 55,934 46,887
Other liabilities 19,977 15,044 25,432
________ ________ ________
Total liabilities $ 5,865,037 $ 5,558,551 $ 5,929,509
________ ________ ________
SHAREHOLDERS' EQUITY
Common stock, $1.00 par value; authorized 33,000,000
shares; issued 23,503,084; 22,547,521; & 23,503,084 $ 23,503 $ 22,548 $ 23,503
shares respectively
Capital surplus 558,053 522,919 558,073
Retained earnings 154,017 151,066 142,947
Net unrealized loss on securities available for sale (7,802) (6,338) (1,755)
Unearned ESOP shares (14,368) (16,799) (15,003)
Treasury stock, 3,684,049, 3,050,857 and
3,424,176 shares, at cost, respectively (135,278) (109,674) (125,288)
________ ________ ________
Total shareholders' equity $ 578,125 $ 563,722 $ 582,477
________ ________ ________
Total liabilities and shareholders' equity $ 6,443,162 $ 6,122,273 $ 6,511,986
========= ========= =========
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(unaudited in thousands)
<TABLE>
<CAPTION>
Three Months
Ended March 31,
INTEREST INCOME 1997 1996
<S> <C> <C>
Loans $ 55,383 $ 54,929
Securities:
Taxable interest $ 33,261 $ 31,732
Tax-exempt interest 3,708 3,575
________ ________
Total securities income $ 36,969 $ 35,307
Federal funds and resell agreements 1,902 2,224
Trading securities and other 1,071 959
________ ________
Total interest income $ 95,325 $ 93,419
________ ________
INTEREST EXPENSE
Deposits $ 31,446 $ 31,966
Federal funds and repurchase
agreements 9,366 8,655
Short-term debt 11 11
Long-term debt 916 1,054
________ ________
Total interest expense $ 41,739 $ 41,686
________ ________
Net interest income $ 53,586 $ 51,733
Provision for loan losses 1,925 4,827
________ ________
Net interest income after provision $ 51,661 $ 46,906
________ ________
NONINTEREST INCOME
Trust income $ 10,716 $ 10,217
Securities processing 2,673 2,282
Trading and investment banking 3,547 3,564
Service charges on deposits 8,734 8,467
Other service charges and fees 4,756 3,291
Bankcard fees 1,620 1,338
Net investment security gains 103 1
Other 1,404 10,826
________ ________
Total noninterest income $ 33,553 $ 39,986
________ ________
NONINTEREST EXPENSE
Salaries and employee benefits $ 33,837 $ 31,825
Occupancy, net 4,635 4,395
Equipment 6,233 5,427
Supplies and services 4,969 4,895
Bankcard processing 1,268 1,677
Marketing and business development 4,248 3,306
FDIC and regulatory fees 399 329
Other 7,472 7,363
________ ________
Total noninterest expense $ 63,061 $ 59,217
________ ________
Income before income taxes $ 22,153 $ 27,675
Income tax provision 7,192 9,679
________ ________
NET INCOME $ 14,961 $ 17,996
======= =======
PER SHARE DATA
Net income $ 0.77 $ 0.89
Dividends $ 0.20 $ 0.19
Weighted average shares outstanding 19,518,961 20,372,410
<FN>
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited in thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1997 1996
Operating Activities
<S> <C> <C>
Net Income $ 14,961 $ 17,996
Adjustments to reconcile net income to
net cash provided by (used in) operating activities:
Provision for loan losses 1,925 4,827
Depreciation and amortizaton 5,976 5,837
Deferred income taxes (523) (2,614)
Net (increase) decrease in trading securities 1,737 (40,229)
Gains on sales of securities available for sale (103) (2)
Losses on sales of securities available for sale - 1
Amortization of securities premiums,
net of discount accretion 2,908 6,471
Earned ESOP shares 623 535
Changes in:
Accrued income (473) (3,134)
Accrued expenses and taxes 4,961 (1,522)
Other, net 5,252 (6,577)
________ ________
Net cash provided by (used in) operating activities $ 37,244 $ (18,411)
________ ________
Investing Activities
Proceeds from maturities of investment securities $ 14,728 $ 24,719
Proceeds from sales of investment securities - 552
Proceeds from sales of securities available for sale 7,610 -
Proceeds from maturities of securities available for sale 801,323 770,170
Purchases of investment securities (31,628) (30,512)
Purchases of securities available for sale (629,119) (724,232)
Net (increase) decrease in loans (41,359) 31,248
Net (increase) decrease in federal funds and resell agreemen (84,947) 51,702
Purchases of bank premises and equipment (7,131) (6,041)
Proceeds from sales of bank premises and equipment 3 200
________ ________
Net cash provided by investing activities $ 29,480 $ 117,806
________ ________
Financing Activities
Net increase (decrease) in demand and savings deposits $ 84,951 $ (18,199)
Net decrease in time deposits (118,129) (52,749)
Net decrease in federal funds and repurchase agreements (30,087) (34,973)
Net increase in short term borrowings 595 543
Repayment of long term debt (625) (590)
Cash dividends (3,891) (3,873)
Proceeds from exercise of stock options 20 58
Purchases of treasury stock (10,018) (46,203)
________ ________
Net cash used in financing activities $ (77,184) $ (155,986)
________ ________
Decrease in cash and due from banks $ (10,460) $ (56,591)
Cash and due from banks at beginning of year 772,631 696,407
________ ________
Cash and due from banks at end of period $ 762,171 $ 639,816
======= =======
<FN>
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(unaudited in thousands)
<TABLE>
<CAPTION>
Net
Unrealized Purchase
Common Capital Retained Holding Treasury Commitment/
Stock Surplus Earnings Gain (Loss) Stock Unearned ESOP
<S> <C> <C> <C> <C> <C> <C>
Balance - December 31, 1995 $ 22,548 $ 522,892 $ 136,943 $ 3,612 $ (63,555) $ (46,481)
Net income - - 17,996 - - -
Cash Dividends - - (3,873) - - -
Shares purchased by ESOP - - - - - 16,530
Guaranteed ESOP obligation - - - - - (17,281)
Earned ESOP shares - 53 - - - 482
Purchase of treasury stock - - - - (46,203) 29,951
Exercise of stock options - (26) - - 84 -
Net unrealized loss on securities available for sale - - - (9,950) - -
________ ________ ________ ________ ________ ________
Balance - March 31, 1996 $ 22,548 $ 522,919 $ 151,066 $ (6,338) $ (109,674) $ (16,799)
======= ======= ======= ======= ======= =======
Balance - December 31, 1996 $ 23,503 $ 558,073 $ 142,947 $ (1,755) $ (125,288) $ (15,003)
Net income - - 14,961 - - -
Cash dividends - - (3,891) - - -
Earned ESOP shares - (12) - - - 635
Purchase of treasury stock - - - - (10,018) -
Exercise of stock options - (8) - - 28 -
Net unrealized loss on securities available for sale - - - (6,047) - -
________ ________ ________ ________ ________ _______
Balance - March 31 $ 23,503 $ 558,053 $ 154,017 $ (7,802) $ (135,278) $ (14,368)
======= ======= ======= ======= ======== =======
<FN>
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1997
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 1996 Annual Report to
Shareholders.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make
estimates that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities
at the date of the financial statements. These estimates and
assumptions also impact reported amounts of revenues and expenses
during the reporting period. Actual results could differ from these
estimates.
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 5% stock dividend paid on January 2, 1997.
3. Allowance for Loan Losses:
The following is a summary of the Allowance for Loan Losses for the
three months ended March 31, 1997 and 1996 (in thousands):
Three Months Ended March 31,
1997 1996
Balance, January 1 $ 33,414 $ 32,685
Additions:
Provision for loan losses $ 1,925 $ 4,827
________ ________
$ 35,339 $ 37,512
Deductions: ________ ________
Charge-offs $ (2,500) $ (2,612)
Less recoveries on loans
previously charged-off 792 503
________ ________
Net charge-offs $ (1,708) $ (2,109)
________ ________
Balance, March 31 $ 33,631 $ 35,403
======= =======
<PAGE>
UMB FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
See Notes to Consolidated Financial Statements.
3. Allowance for Loan Losses: (Continued)
At March 31, 1997 the amount of loans that are considered to be
impaired under SFAS No. 114 was $16,062,000, compared to $9,325,000
at December 31, 1996. At March 31, 1997 all ofthese loans are on a
nonaccrual or restructures basis. Included in the impaired loans
is $13,261,000 of loans for which the related allowance for loan losses
is $2,998,000. The remaining $2,801,000 of impaired loans do not have
an allowance for loan losses as a result of write-downs and supporting
collateral value. The average recorded investment in impaired loans
during the period ended March 31, 1997 was approximately $12,694,000.
4. 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 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,
1997 1996
Average Average Average Average
Assets Balance Yield/Rate Balance Yield/Rate
<S> <C> <C> <C> <C>
Loans, net of unearned interest $ 2,546,214 8.86% $ 2,348,569 9.45%
Securities:
Taxable $ 2,316,925 5.82 $ 2,332,242 5.47
Tax-exempt 326,723 6.65 310,536 6.90
________ ________ ________ ________
Total securities $ 2,643,648 5.92 $ 2,642,778 5.64
Federal funds and resell agreements 147,350 5.23 168,493 5.31
Other earning assets 72,392 6.24 69,971 5.79
________ ________ ________ ________
Total earning assets $ 5,409,604 7.29 $ 5,229,811 7.34
Allowance for loan losses (33,427) (32,724)
Other assets 1,095,671 972,100
________ ________
Total assets $ 6,471,848 $ 6,169,187
======= =======
Liabilities and Shareholders' Equity
Interest-bearing deposits $3,388,841 3.76% $ 3,369,812 3.82%
Federal funds and repurchase agreements 793,357 4.79 699,824 4.97
Borrowed funds 52,124 7.21 58,578 7.31
________ ________ ________ ________
Total interest-bearing liabilities 4,234,322 4.00 4,128,214 4.06
Noninterest-bearing demand deposits 1,508,558 1,390,673
Other liabilities 146,077 69,449
Shareholders' equity 582,891 580,851
--------- ---------
Total liabilities and shareholders' equity $6,471,848 $ 6,169,187
========= =========
Net interest spread 3.29% 3.28%
Net interest margin 4.16 4.14
</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, 1997 vs. 1996
Volume Rate Total
Change in interest earned on:
<S> <C> <C> <C>
Loans $ 4,177 $ (3,748) $ 429
Securities:
Taxable (233) 1,762 1,529
Tax-exempt 243 (213) 30
Federal funds sold (290) (32) (322)
Other 33 74 107
________ ________ ________
Interest income $ 3,930 $ (2,157) $ 1,773
________ ________ ________
Change in interest paid on:
Interest-bearing deposits $ 101 $ (621) $ (520)
Federal funds purchased 1,058 (347) 711
Borrowed funds (123) (15) (138)
________ ________ ________
Interest expense $ 1,036 $ (983) $ 53
________ ________ ________
Net interest income $ 2,894 $ (1,174) $ 1,720
======= ======= =======
ANALYSIS OF NET INTEREST MARGIN
Three Months Ended
March 31,
1997 1996 Change
Average earning assets $ 5,409,604 $ 5,229,811 $ 179,793
Interest-bearing liabilities 4,234,322 4,128,214 106,108
________ ________ ________
Interest free funds $ 1,175,282 $ 1,101,597 $ 73,685
======= ======= =======
Free funds ratio 21.73% 21.06% 0.66%
(free funds to earning assets)
Tax-equivalent yield on earning assets 7.29% 7.34% (0.05)%
Cost of interest-bearing liabilities 4.00 4.06 (0.06)
________ ________ ________
Net interest spread 3.29% 3.28% 0.01 %
Benefit of interest free funds 0.87 0.86 0.01
________ ________ ________
Net interest margin 4.16% 4.14% 0.02 %
======= ======= =======
</TABLE>
<PAGE>
UMB FINANCIAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997
Summary
UMB Financial Corporation (the Company) earned net income of
$14,961,000 for the three months ended March 31, 1997, compared to
$17,996,000 for the same period a year earlier. This represents per
share earnings of $0.77 for the first quarter of 1997 compared to $0.89
for the first quarter of 1996. Included in the 1996 results was a gain on the
sale of the servicing rights of the merchant bankcard portfolio of $9.8
million. In addition the Company recorded a provision for loan losses of $2.8
million over and above the normal recurring monthly provision. The approximate
net after tax effect was $4.3 million or $0.21 per share.
The Company's net interest income increased as a result of increased
lending activity and the effect of higher interest rates on investment
securities. Provision for loan losses decreased due to increased
provision in the first quarter of 1996 for non performing loans. Non
interest income decreased primarily due to the gain recorded in the first
quarter of 1996 from the sale of the servicing rights of the merchant
bankcard portfolio. Non interest expense increased 6.49% when
comparing the first quarter of 1997 to the same period of 1996.
Results of Operations
For the three months ended March 31, 1997 the Company earned net
interest income of $53,586,000 compared to $51,733,000 for the first
quarter of 1996, an increase of 3.58% which approximates the increase
in average for the two periods. This increase occurred while the
Company's spread and margin remained relatively unchanged.
Contributing to the increase in net interest income was an increase of
average loans outstanding of 8.42%. The Company's net interest income
was also effected by an increase in rates earned on its investment
security portfolio.
The provision for loan losses was $1,925,000 and $4,827,000 for the
three months ended March 31, 1997 and 1996, respectively. The
decrease was primarily related to additional provision, during the first
quarter of 1996, due to an increase in non performing loans. Net loan
charge-offs in the first quarter of 1997 were $1,708,000 compared to
$2,109,000 for the same period last year.
Non interest income totaled $33,553,000 for the first quarter of 1997
compared to $39,986,000 for the same period of 1996. The largest
component of this change was a $9.8 million gain on the sale of the
servicing rights of the merchant bankcard portfolio, recorded in the first
quarter of 1996. Also effecting non interest income at March 31, 1997 as
compared to March 31, 1996 were increases in trust income, service
charges and other cash management fees. These increases emphasize
the importance of diverse business lines which provide on going returns
without jeopardizing the Company's high asset quality standards.
Non interest expense was $63,061,000 for the first three months of 1997
compared to $59,217,000 for the same period of 1996, an increase of
6.49%. Staffing related costs increased by 6.32% primarily due to
additional personnel at new facilities and the data processing areas.
Occupancy costs increased as a result of the opening of new branch
facilities. Equipment expense also increased due to the new facilities and
as a result of ongoing upgrades to the operating systems.
<PAGE>
UMB FINANCIAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997
Financial Condition
Total assets at March 31, 1996 were $6.443 billion compared to $6.122
billion at March 31, 1996 and $6.512 billion at December 31, 1996.
Loans, net of unearned interest increased to $2.597 billion as of March
31, 1997 compared to $2.403 billion at March 31, 1996. This 8.10%
increase in loans reflects management's goal to increase loans in a very
competitive market. Investment securities decreased to $2.531 billion at
March 31, 1997, from $2.602 billion at March 31, 1996. Total deposits
increased to $5.157 billion at March 31, 1997 compared to $4.743 billion
at March 31, 1996.
Non accrual and restructured loans totaled $17,193,000, 0.66% of loans
at March 31, 1997 compared to $11,476,000, 0.45% of loans at December
31, 1996. Loans past due 90 days or more were $5,786,000, 0.22% of
loans at March 31, 1997, compared to $6,704,000, 0.26% of loans at
December 31, 1996. The Company's loan quality remains strong by
industry standards. The increase in non-accrual loans was the result of
one commercial loan and adequate reserves are in place to cover any
potential losses. The total non performing loans and loans past due 90
days or more were less than 1.0% of total loans. At March 31, 1997 the
Company's allowance for loan losses was $33,631,000 or 1.29% of
outstanding loans. The Company has a well-diversified loan portfolio with
no foreign loans and no significant credit exposure to commercial real
estate. Delinquency rates in the Company's bankcard loan portfolio are
well below industry averages.
<PAGE>
UMB FINANCIAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997
Liquidity and Capital Resources
The Company's liquidity position continues to be strong. At March 31,
1997, the Company's average loan to deposit ratio was 52.0% compared
to 49.3% at March 31, 1996. At March 31, 1997, the average life of the
securities portfolio was 24 months and 27% 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 $578 million at March 31, 1997 compared to
$564 million at March 31, 1996 and $582 million at year end 1996.
During the twelve months ended March 31, 1997 the Company increased
its treasury stock holdings by $26 million. Management will continue to
consider treasury stock purchases depending on price, availability and
alternative use of funds. At March 31, 1997, the net unrealized loss on
securities available for sale was $7.8 million, compared to unrealized
losses of $6.3 million at March 31, 1996 and $1.8 million at December 31,
1996.
Included in this report are limited forward looking statements concerning
the Company's future financial condition and results of operations. These
statements are the result of management's current expectations based
on information presently available. Actual results would differ from these
expectations as a result of many factors including changes in economic
conditions impacting customers ability to repay loans, interest rates and
loan demand. Changes in technology, regulatory requirements and
competition will also impact future results.
The Company's capital position is summarized in the table below and far
exceeds regulatory requirements.
Three Months Ended
March 31,
RATIOS 1997 1996
Return on average assets .94% 1.17%
Return on average equity 10.41 12.46
Average equity to assets 9.01 9.42
Tier 1 risk-based capital ratio 15.10 16.47
Total risk-based capital ratio 16.08 17.65
Leverage ratio 8.16 8.22
Per Share Data
Earnings $ .77 $ 0.89
Cash Dividends $ .20 $ 0.19
Dividend payout ratio 25.97% 21.35%
Book value $ 29.69 $ 28.10
<PAGE>
UMB FINANCIAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS FOR THE
THREE MONTHS ENDED MARCH 31, 1997
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, 1997 Form 10-Q.
b) Reports on Form 8-K:
The Company filed no reports on Form 8-K during the quarter
ended March 31, 1997.
<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: May 14, 1997
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 762,171
<INT-BEARING-DEPOSITS> 3,472,629
<FED-FUNDS-SOLD> 143,907
<TRADING-ASSETS> 78,077
<INVESTMENTS-HELD-FOR-SALE> 2,195,521
<INVESTMENTS-CARRYING> 335,678
<INVESTMENTS-MARKET> 335,444
<LOANS> 2,597,292
<ALLOWANCE> 33,631
<TOTAL-ASSETS> 6,443,162
<DEPOSITS> 5,157,356
<SHORT-TERM> 1,506
<LIABILITIES-OTHER> 71,142
<LONG-TERM> 50,725
23,503
0
<COMMON> 0
<OTHER-SE> 554,622
<TOTAL-LIABILITIES-AND-EQUITY> 6,443,162
<INTEREST-LOAN> 55,383
<INTEREST-INVEST> 38,040
<INTEREST-OTHER> 1,902
<INTEREST-TOTAL> 95,325
<INTEREST-DEPOSIT> 31,446
<INTEREST-EXPENSE> 41,739
<INTEREST-INCOME-NET> 53,586
<LOAN-LOSSES> 1,925
<SECURITIES-GAINS> 103
<EXPENSE-OTHER> 63,061
<INCOME-PRETAX> 22,153
<INCOME-PRE-EXTRAORDINARY> 22,153
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 14,961
<EPS-PRIMARY> 0.77
<EPS-DILUTED> 0.77
<YIELD-ACTUAL> 4.16
<LOANS-NON> 15,358
<LOANS-PAST> 5,786
<LOANS-TROUBLED> 1,835
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 33,414
<CHARGE-OFFS> 2,500
<RECOVERIES> 792
<ALLOWANCE-CLOSE> 33,631
<ALLOWANCE-DOMESTIC> 33,631
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
