UMB Financial Corporation Confirms Conference Call to Discuss Fourth Quarter and Year-end Earnings

Business Wire, Jan 22, 2008

Actual loan balances on December 31, 2007 were $3.9 billion, compared to $3.8 billion on December 31, 2006. These balances were as follows:

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Nonperforming loans were flat at December 31, 2007 and 2006 totaling $6.6 million. As a percentage of total loans, nonperforming loans were 0.17 percent of loans as of December 31, 2007 and 2006. Nonperforming loans are defined as nonaccrual loans and restructured loans. The company's allowance for loan losses totaled $46.0 million, or 1.17 percent of total loans as of December 31, 2007 compared to $44.9 million, or 1.20 percent of total loans as of December 31, 2006.

For the three months ended December 31, 2007, average securities, including trading securities and other, totaled $3.0 billion. This is an increase of $149.1 million, or 5.3 percent from the same period in 2006. Average federal funds sold and resell agreements for the fourth quarter decreased $21.7 million, or 7.6 percent over the same period in 2006 to $264.2 million.

Average total deposits increased $338.5 million, or 6.1 percent, to $5.9 billion for the three months ended December 31, 2007, compared to the same period in 2006. The increase in deposits came primarily from our public funds, mutual fund processing and treasury management businesses. Average time deposit accounts increased by $112.0 million, or 9.0 percent, for the three months ended December 31, 2007 as compared to 2006. Average money market accounts increased by $199.3 million, or 20.0 percent, in 2007 as compared to 2006. Total deposits as of December 31, 2007 were $6.6 billion, compared to $6.3 billion at December 31, 2006, a 3.8 percent increase.

As of December 31, 2007, UMB had total shareholders' equity of $890.6 million, a 4.9 percent increase from the prior year. For the three months ended December 31, 2007, the company repurchased 448,707 shares at an average price of $40.31 per share, for a total cost of $18.1 million. For the year, shares repurchased totaled 1.1 million, which at an average price of $39.37 per share, resulted in a total cost of $43.3 million.

The company declared its regular quarterly cash dividend of $0.15 per share to be paid on April 1, 2008, to shareholders of record at of the close of business on March 11, 2008.

Year-to-Date

Earnings for the year ended December 31, 2007 were $74.2 million or $1.78 per share ($1.77 diluted). This is an increase of $14.4 million, or 24.2 percent, compared to the prior year earnings of $59.8 million or $1.40 per share ($1.40 diluted). Excluding a $7.2 million pre-tax net gain on the sale of the securities transfer product as well as the $4.6 million liability recorded for the company's proportional share of Visa's covered litigation provision, adjusted net income would have totaled $72.6 million or a 21.4 percent increase over 2006. A table reconciling GAAP net income for these items for the quarter and year-to-date is included with this release.

Net interest income for the year ended December 31, 2007 increased $15.5 million, or 7.1 percent, compared to the same period in 2006 due primarily to higher average earning assets and rates. Net interest margin increased to 3.44 percent for year ended December 31, 2007 as compared to 3.38 percent for the same period in 2006.