UMB Financial Corporation Reports First Quarter 2020 Results

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[{"type":"text","content":" KANSAS CITY, Mo.--(BUSINESS WIRE)--\nUMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced results for the first quarter of 2020. \"On a GAAP basis, we reported a net loss of $3.4 million, driven by the adoption of a new accounting standard on January 1, 2020, which resulted in significantly higher provision expense based on the possibility of future credit losses under the current environment created by the COVID-19 crisis,” said Mariner Kemper, chairman, president and chief executive officer. “Excluding this impact, business and financial results remained strong as demonstrated by a 5.6 percent increase in pre-tax pre-provision income, to $83.7 million, from the linked quarter. As many industry participants have noted, the ill-timed adoption of this new accounting standard has resulted in adding more undue volatility in this critical environment and rendered comparability of financial results across the banking industry extremely difficult.”\n\n\n2020 First Quarter Highlights\n\n\n\nAverage loan balances increased $385 million, or 11.6 percent, on a linked-quarter annualized basis.\n\n\nAverage deposits grew $439 million to $20.8 billion compared to the fourth quarter of 2019.\n\n\nGAAP book value per share of $55.33, a 15.5 percent increase, and tangible book value per share of $51.04, a 16.1 percent increase compared to a year ago.\n\n\nEfficiency ratio improved to 68.93 percent compared to 70.00 percent a year ago.\n\n\nCredit quality remained strong, with net charge-offs of just 0.23 percent of average loans, consistent with the company’s historical performance.\n\n\n\n“As we, as a nation, navigate our way through this unprecedented and challenging time, I have never been prouder of how the banking industry and UMB associates have rallied in response to the COVID-19 crisis,” said Kemper. “Our deepest gratitude goes to all those at the frontline combating this crisis. We are humbled to be in a position to offer critical financial support and services to our clients as we all adapt to these global impacts. As we’ve worked through the CARES Act legislation and helped our customers navigate the Paycheck Protection Program during the past few weeks, I have been inspired by the enduring sense of service, duty and patriotic responsibility demonstrated by UMB associates. To date, we have processed more...

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