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Earnings explained: 4th Quarter 2017

Today, we released our earnings information for the fourth quarter of 2017 and for the entire year. I’m pleased to share a few highlights from the Q4 UMB earnings release announcement.

Overall, 2017 was a very positive year for UMB. From a financial perspective, we had another year of record earnings, and produced more than $200 million in net income for the bottom line, which is up 22 percent from the prior year.

We also had a strong close to the fourth quarter, earning a net income of $47.4 million, which is a 9.1 percent increase from one year ago.


In looking at the balance sheet, our total assets are approximately $20.7 billion as of Dec. 31, 2017. Total loans were at $11.1 billion, up 7.1 percent from a year-over-year basis, and net interest margin increased to 3.21 percent from 3.0 percent.

The below chart provides a historical perspective on our total loan growth. We’ve grown from $6.5 billion in the fourth quarter of 2013, to $11.1 billion in the most recent quarter. On a five-year basis, this is a compounded annual growth rate (CAGR) of almost 15 percent – more than five times GDP growth during the same time.

You can also see our loan yields over this time have steadily increased from 3.62 percent in fourth quarter 2013 to 4.4 percent in fourth quarter 2017.


In looking at some of our key metrics over the last five-quarter period, one thing to note is the consistency of our performance and the improvement across the board. For example, if you look at the operating efficiency ratio, it has improved to 68.8 percent in the fourth quarter from 69.2 percent in Q4 2016.


Deposit growth is a key driver for UMB. Every industry has raw materials. For banking, the raw materials are deposits. Deposits allow us the flexibility to make loans, and it’s a significant competitive edge for UMB. The following chart shows the trajectory of our deposit growth over the last four-year period. Looking ahead, deposit growth will remain the main challenge for the industry as interest rates rise.

It has been an impressive year, with the company showing significant loan growth, expanding net interest margin and improving overall performance metrics. We look forward to continuing the hard work in 2018.graphic line breakStay informed on industry trends and noteworthy company news by visiting the UMB In The News section on, which is updated weekly for timely viewing.

Based on this article, we think you might also be interested in reading the following:

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*UMB Investment Management Outlook by the Numbers: March 2018

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