UMB Financial Corporation (NASDAQ:UMBF) Q2 2022 Earnings Conference Call July 27, 2022 10:30 AM ET

Company Participants

Kay Gregory - Director of IR and Senior VP

Mariner Kemper - President and CEO

Ram Shankar - CFO

Jim Rine - CEO of UMB Bank

Tom Terry - Chief Credit Officer

Conference Call Participants

Timur Braziler - Wells Fargo

Nathan Race - Piper Sandler

Nick Moutafakis - KBW

John Rodis - Janney

Operator

Good morning, and thank you for attending today's UMB Financial Second Quarter 2022 Conference Call. My name is Daniel and I will be your moderator for today's call. [Operator Instructions].

I would now like to pass the conference over to our host, Kay Gregory, UMB Investor Relations. You may now proceed.

Kay Gregory

Good morning and welcome to our second quarter call. Mariner Kemper, President and CEO; and Ram Shankar, CFO will share a few comments about our results. Jim Rine, CEO of UMB Bank and Tom Terry, Chief Credit Officer will also be available for the question-and-answer session.

Before we begin, let me remind you that today's presentation contains forward-looking statements, which are subject to assumptions, risks and uncertainties. These risks are included in our SEC filings and are summarized on Slide 43 of our presentation. Actual results may differ from those set forth in forward-looking statements, which speak only as of today. We undertake no obligation to update them, except to the extent required by securities laws. All earnings per share metrics discussed on this call are on a diluted share basis. Our presentation materials and press release are available online at investorrelations.umb.com.

Now, I'll turn the call over to Mariner Kemper.

Mariner Kemper

Thank you, Kay, and thanks everyone for joining us today. Our second quarter results included a 23% linked quarter annualized increase in average loans, solid net interest margin expansion, and continued momentum in our fee businesses. Income from bond trading activities and 12b-1 fees were strong while we saw some market-related pressure in trust and securities processing and in the valuation of our equity positions. Additional drivers are included in our slides and Ram will share more detail shortly.

Net income for the quarter was $137.6 million or $2.83 per share. Operating pre-tax pre-provision income was $187.1 million or $3.84 per share. Financials for the second quarter included a pre-tax gain of $66.2 million from the sale of our Visa Class B ownership, included in fee income. In conjunction with the gain, we made a onetime contribution of $5 million to our charitable foundation, included in other expenses.