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.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

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.

UMB Financial’s Profitability Ratios

Return on average assets at the quarter’s end was 1.06%, which increased from the year-ago quarter’s 0.69%.

The operating return on average equity was 13.82%, down from 15.04% in the year-ago quarter.

Our Take on UMBF

UMB Financial benefits from revenue strength, aided by rising loan and deposit balances, along with diversified fee income. However, deteriorating asset quality is concerning. 

UMB Financial Corporation Price, Consensus and EPS Surprise

UMBF currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Banks

Hancock Whitney Corp.’s HWC fourth-quarter 2024 earnings per share of $1.40 easily beat the Zacks Consensus Estimate of $1.28. The bottom line compared favorably with $1.26 reported in the year-ago quarter.

The results benefited from the increase in non-interest income and NII. Lower expenses and provisions were other positives. However, the decline in total loans was a headwind for HWC.

Bank OZK’s OZK fourth-quarter 2024 earnings per share of $1.56 handily surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflects a rise of 4% from the prior-year quarter’s actual.

OZK’s results benefited from a rise in NII, driven by improvement in loans and deposit balances. Lower non-interest expenses and provisions were also positives. However, lower non-interest income and rising funding costs were the undermining factors.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

UMB Financial Corporation (UMBF) : Free Stock Analysis Report

Hancock Whitney Corporation (HWC) : Free Stock Analysis Report

Bank OZK (OZK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research