UMB Financial Corporation (NASDAQ:UMBF) Q1 2022 Results Conference Call April 26, 2022 9:30 AM ET

Company Participants

Kay Gregory - IR

Mariner Kemper - President and CEO

Ram Shankar - CFO

Jim Rine - CEO, UMB Bank

Tom Terry - Chief Credit Officer

Conference Call Participants

Timur Braziler - Wells Fargo

Nathan Race - Piper Sandler

Chris McGratty - KBW

David Long - Raymond James

Operator

Hello and welcome to today’s UMB Financial First Quarter 2022 Financial Results Conference Call. My name is Elliot and I will be coordinating your call today. [Operator Instructions]

I would now like to hand over to Kay Gregory, Investor Relations. Please go ahead, when you are ready.

Kay Gregory

Good morning and welcome to our first 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. 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 to everyone for joining us today.

2022 is off to a great start. Solid performance in the first quarter included 19.1% linked-quarter annualized growth in average loans. And we posted a $6.5 million provision release, reflecting the quality of our loan portfolio.

Additionally, we had strong fee income, combined with expense levels that moderated from the previous quarter. For the first quarter, net income was $106 million or $2.17 per share. Pretax pre-provision income on an FTE basis was $125.7 million or $2.57 per share. First quarter net interest income was relatively flat on a linked-quarter basis. The positive impact from asset growth and balance sheet moves we made was offset by the sale of our factoring portfolio and the continued runoff of PPP balances, along with fewer days in the quarter. Non-interest income for the quarter totaled $123.7 million, an increase of 4.1%, compared to the fourth quarter.